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jerryking : theodore_levitt   7

Securable Market | Strategyn
In all the traditional market definitions, the size of a market hinges on the number of buyers who might exist for a particular market offer. But we know that market offers (i.e., products) are merely point-in-time solutions that help customers get jobs done. The jobs customers are trying to get done do not change over time. They are stable.

In contrast to traditional methods based on products and price, Strategyn uses jobs, outcomes, and the opportunity algorithm to calculate the size of a market opportunity and the market share that can be captured by a new solution. Strategyn calls the resulting number the securable market to distinguish it from traditional addressable market definitions and to highlight that it is calculated with different inputs.
market_sizing  market_segmentation  Theodore_Levitt  disruption  customer_experience  differentiation  new_categories  hiring-a-product-to-do-a-specific-job  market_opportunities 
november 2014 by jerryking
Bark with bite
January 30, 2012 | FT | By John Quelch.

Academics succeed if their names are linked to one important idea that outlives them. Professor Theodore Levitt’s name is linked to many. The first was a blockbuster. “Marketing myopia” was published by Harvard Business Review (HBR) in 1960, one year after Harvard Business School plucked Prof Levitt, the son of a German immigrant cobbler, from the University of North Dakota.

The article famously asked: “What business are you in?” It critiqued railroads for “letting their customers get away from them because they assumed themselves to be in the railroad business rather than the transportation business”. They were product-orientated rather than market-orientated....the importance of tangible evidence to reassure customers choosing among suppliers of intangible services (the impressive bank building, the authoritative logo)....I gave him a wide berth until it was time for feedback on my thesis proposal after three months of hard labour. The meeting lasted five minutes, barely long enough for Prof Levitt, whose mentoring style was more tough love than hand-holding, to dismiss me with: “Throw this out, start again and come back in a week with something important!” Fortunately, I did.

Prof Levitt’s advice was always to work on important problems that are important to important people in important companies. It spurred me to get out into the field, talk to business people, write case studies and understand the messy complexity of the world, rather than work behind my desk on mathematical models based on unrealistic assumptions.
advice  discernment  feedback  hand-holding  HBR  HBS  John_Quelch  marketing  market-orientated  messiness  myopic  primary_field_research  product-orientated  reminiscing  sophisticated  Theodore_Levitt  tough_love  worthiness  worthwhile_problems 
december 2013 by jerryking
Inventing HBR
November 2012 | HBR | Julia Kirby.

Meanwhile, HBR was growing as a business itself. When the renowned HBS marketing professor Ted Levitt assumed the editorship, in 1985, he saw the magazine as an underleveraged brand that he could manage like a consumer product. He gave it a design makeover, even introducing cartoons, and encouraged a new slate of editors to push more articles to the point that they would ignite debate. He also jacked up the price, nearly doubling the subscription rate, and increased the cost of a full-page ad by more than 50%.
A Shove Toward the Magazine Side
Soon after taking over, Levitt met with HBS colleagues to explain how he saw the challenge. The Review’s content had always been supplied by experts like them, he noted, whose prose was the desiccated, reference-riddled stuff of scholars. Its customer base, meanwhile, was made up of action-oriented managers who were perpetually pressed for time. HBR, he is said to have concluded, was “a magazine written by people who can’t write for people who won’t read.”

The changes he introduced were exciting. It’s probably fair to say that he altered the course of HBR forever, by taking a publication that had sat on the fence between journal and magazine for six decades and giving it a decisive shove toward the magazine side. He essentially declared the customer king. But for a publication owned by a dignified institution of higher learning—HBR’s sole shareholder was and still is the dean of the business school—excitement can spell consternation. A couple of small crises forced the question of whether HBR’s growth as a popular magazine could be reconciled with its Harvard Business School ties.
history  HBR  anniversaries  magazines  thought_leadership  Theodore_Levitt 
july 2013 by jerryking
The New Old Thing
?? |HBR|
The desire to create the new new thing pervades business today. But while innovation is essential for our economy and our society, is it truly a commercial necessity for individual companies? In 1996, Harvard Business School professor Theodore Levitt argued compellingly in these pages that the success of most companies hinges more on imitation than innovation. Being a fast follower, he wrote, is a more dependable strategy than being a first mover. What he says about the dangers of our infatuation with innovation may open your eyes.
HBR  innovation  fast_followers  copycats  Theodore_Levitt 
june 2012 by jerryking
Marketing Myopia
July-August 2004 (Reprint from 1960) | Harvard Business Review | by Theodore Levitt.

Marketing Myopia suggests that businesses will do better in the end if they concentrate on meeting customers’ needs rather than on selling products......

Fundamental idea
The Myopic cultures, Levitt postulated, would pave the way for a business to fall, due to the short-sighted mindset and illusion that a firm is in a so-called 'growth industry'. This belief leads to complacency and a loss of sight of what customers want. It is said that these people focus more on the original product and refuse to adapt directly to the needs and wants of the consumer.

To continue growing, companies must ascertain and act on their customers’ needs and desires, not bank on the presumptive longevity of their products. In every case the reason growth is threatened, slowed or stopped is not because the market is saturated. It is because there has been a failure of management.

Some commentators have suggested that its publication marked the beginning of the modern marketing movement.[2] Its theme is that the vision of most organizations is too constricted by a narrow understanding of what business they are in. .....Organizations found that they had been missing opportunities which were plain to see once they adopted the wider view. ....There is no such a thing as a growth industry. There are only companies organized and operated to create and capitalize on growth opportunities.......There is a greater scope of opportunities as the industry changes. It trains managers to look beyond their current business activities and think "outside the box". . If a buggy whip manufacturer in 1910 defined its business as the "transportation starter business," they might have been able to make the creative leap necessary to move into the automobile business when technological change demanded it.....People who focus on marketing strategy, various predictive techniques, and the customer's lifetime value can rise above myopia to a certain extent.
HBR  marketing  management  filetype:pdf  media:document  Theodore_Levitt  myopic  out-of-the-box  short-sightedness 
february 2010 by jerryking
Creating A Killer Product
10.13.03 | Forbes Magazine | by Clayton M. Christensen & Michael E. Raynor.

Three in five new-product-development efforts are scuttled before they ever reach the market. Of the ones that do see the light of day, 40% never become profitable and simply disappear.

Most of these failures are predictable--and avoidable. Why? Because most managers trying to come up with new products don't properly consider the circumstances in which customers find themselves when making purchasing decisions. Or as marketing expert Theodore Levitt once told his M.B.A. students at Harvard: "People don't want to buy a quarter-inch drill. They want a quarter-inch hole." ...Managers need to segment their markets to mirror the way their customers experience life--and not base decisions on irrelevant data that focus on customer attributes. Managers need to realize that customers, in effect, "hire" products to do specific "jobs."...Why not put in tiny chunks of real fruit to add a dimension of unpredictability and anticipation--attacking the boredom factor. A thicker shake would last longer. A self-service shake machine that could be operated with a prepaid card would get customers in and out fast.

Improvements like this would succeed in building sales--but not by capturing milk shake sales from competing quick-service chains or by cannibalizing other products on its menu. Rather, the growth would come by taking business from products in other categories that customers sometimes employed, with limited satisfaction, to get their particular jobs done. And perhaps more important, the products would find new growth among "nonconsumers." Competing with nonconsumption often offers the biggest source of growth in a world of one-size-fits-all products. ...One option would be for RIM to believe its market is structured by product categories, as in: "We compete in handheld wireless devices." WRONG!!!!!!!!!!!!!...But what if RIM structured the segments of this market according to the jobs that people are trying to get done? Just from watching people who pull out their BlackBerrys, it seems to us that most of them are hiring it to help them be productive in small snippets of time that otherwise would be wasted, like reading e-mails while waiting in line at airports....Features that do not help customers do the job that they hire the BlackBerry for wouldn't be viewed as improvements at all. ...Brands are, at the beginning, hollow words into which marketers stuff meaning. If a brand's meaning is positioned on a job to be done, then when the job arises in a customer's life, he or she will remember the brand and hire the product. Customers pay significant premiums for brands that do a job well.
Clayton_Christensen  Michael_Raynor  Innosight  prepaid  innovation  market_segmentation  customer_experience  arms_race  branding  product_development  education  Colleges_&_Universities  Theodore_Levitt  disruption  new_products  customer_segmentation  observations  nonconsumption  hiring-a-product-to-do-a-specific-job  one-size-fits-all  BlackBerry 
september 2009 by jerryking
Up the Ladder, Step by Step - WSJ.com
Nov. 26, 2008 WSJ book review by Philip Delves Broughton of
"There's No Elevator To the Top" By Umesh Ramakrishnan.

He describes meeting the chairman of Nestle, who complains that his
rivals are no longer Mars or Pepsi but telephone companies. "Five years
ago seventy percent of the pocket money of kids was to buy chocolates,
ice cream; now eighty percent is in telecom," the Nestle boss tells Mr.
Barrault. "Can you imagine the impact for my business?"
book_reviews  career  Managing_Your_Career  discretionary_spending  leadership  CEOs  Philip_Delves_Broughton  competition  Theodore_Levitt  Nestlé  Pepsi  mobile_phones  confectionery_industry 
february 2009 by jerryking

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