Do you have a response to this article? Send an e-mail to David Kuack.

"Every major industry was once a growth industry. But some that are now riding a wave of growth enthusiasm are very much in the shadow of decline."
-- "Marketing Myopia" by Ted Levitt, September 1975, Harvard Business Review.

In horticulture, we are riding a wave of production and sales growth enthusiasm. Many people are spending more money on flowers, plants, landscaping and gardening.

Levitt further writes, "Industries that assume themselves to be riding some automatic growth escalator invariably descend into stagnation. The history of every dead and dying 'growth' industry shows a self-deceiving cycle of bountiful expansion and undetected decay."

Dying industries were myopic, or short-sighted, and lacked a long-run perspective, especially where marketing was concerned. Could Levitt's comments refer to the horticulture industry? Do we need glasses?

What Levitt calls myopic, Stephen R. Covey calls reactivity in his book "The 7 Habits of Highly Effective People." People can choose to be proactive and plan for the future, writes Covey. Human nature is to wait and react when a change occurs. Highly effective people, according to Covey, take a proactive stance and develop a farsighted approach to their businesses and their lives. They plan for good and not-so-good times.

Levitt's reference to businesses' lack of farsightedness as myopia fits well. These growth industries assumed growth would continue for many years and didn't look far enough ahead to envision potential changes that might happen. These businesses also took a very narrow perspective on what industry they worked in. It would be great if the good times would last forever. But the one thing we can be assured of is change.

4 marketing misperceptions

Levitt pointed out four misperceptions under which a business or industry operates with marketing myopia.

1. Increasing affluence. Industry growth is assured by an ever-increasing population that will continue to grow more affluent. The horticulture industry's growth has a strong correlation with affluence in the United States. In today's economic good times, people are building larger homes and spending more on gardening and landscaping.

The number of households that purchase flowers or participate in gardening activities is just keeping pace with overall population growth. The industry is not adding new gardeners to the activity in terms of real growth. The percentage of American households engaged in gardening is remaining constant. Will their household incomes continue to grow? Maybe, maybe not.

2. No substitutes. There are few or no substitutes for their products. I see this often in my horticulture marketing class when I ask students what products substitute for fresh cut flowers. The most common responses are flowering container plants, but few students look beyond the product to see some other real competitors. Dinner and a movie, jewelry, perfume or clothing are all substitutes for flowers.

What can consumers spend their money on rather than landscaping? A new kitchen (or other remodeling for an older home), a deck or bathroom addition. The Realtors of America are quick to point out the high return on investment a kitchen or bathroom renovation or addition bring, but how quick are we as horticulture professionals to point out the equally high return on investment that will grow over time and appreciate, not depreciate, as the kitchen and bath will do?

3. Mass production. An investment in mass production will reduce costs and increase units produced as the way to maximize long-run industry profitability. Mass production does create some great economies of scale.

Bedding plant operations are being acquired by other producers, resulting in very large companies that can undersell many smaller competitors (or acquire them, too). Mass production drives down costs, but it also gives a supplier few discernable ways to differentiate itself from its competitors. Can consumers distinguish between the many cultivars of red impatiens? No, and they probably don't care to.

4. Manufacturing improvement. Businesses focus on manufacturing improvement and cost reduction, sometimes at the expense of marketing. This is quite evident in the horticulture industry.

The American Floral Endowment, one of the largest funding agencies for floriculture research in the country, considers production-oriented research to be more important than market research. The board has taken a myopic perspective that may hurt the entire industry in the long run.

Research-funding agencies continue to pour thousands of dollars into producing more in a more efficient manner. But how much funding is directed to understanding markets, marketing and future opportunities? Probably less than 5 percent of their entire budgets. Our industry has many small- and medium-size growers who lack the resources to conduct their own market research. Who will fund the future of the industry if our industry leaders take such a reactive, short-sighted stance?

Buggy whips. Swiss watches. Steam locomotives. Hollywood, almost. These industries focused solely on their products, making bigger, better, more cost-effective products that are now lost due primarily to their own myopia. They couldn't see beyond their success to a time when consumers would change and other opportunities would exist. They refused to adopt a perspective that focuses on consumers and what they need.

Be proactive. Ask the industry funding agencies to whom you contribute why marketing isn't a higher priority than production. Maybe send them a pair of glasses, too.

Send this article to a friend

Enter your e-mail address:


Enter your friend's e-mail address:


Click the image below to send:

© 2000 Branch-Smith Publishing