Marketing Myopia, a Reflection
Classes 3-4
1/22/2014


After further analyzing Levitt’s work and writing my essay, I have developed a modern day example of Marketing Myopia.


Two companies, Blockbuster and Redbox, have been competing fiercely in the DVD, game, and rental marketplace in recent years. Their individual focuses on “customers” versus “products” complement Levitt’s theory well.
Blockbuster focused their attention on movie and game rentals. They were consumed with how to sell the best product possible, not how to please the customer. Problems such as late fees, location, and the selection process greatly hurt Blockbuster, and in turn created an opportunity for Redbox to enter the marketplace.


When Redbox entered the market in 2002, their focus was simple: “focus on new releases, don't make anyone buy a membership, and make the price as low as it'll go” (www.redbox.com/history). By aggressively cutting the price and not the cost, focusing on the consumer, and innovating a new rental experience, Redbox (with the help of Netflix as well) eventually drove Blockbuster out of business.


Redbox recognized that DVD rentals were more than a physical product to the consumer, they were convenience. Now 68% of Americans live within a five minute drive to a Redbox location.

I’m interested to see where the DVD rental business goes from here. As a consumer, my chief problem with Redbox is that I still have to physically drive to drop off my DVDs (call me a lazy millennial, but it’s the truth). Currently Redbox has the upper hand in movie selections (over Netflix, Xfinity, AT&T, etc.), so I believe they have the opportunity to invent a working website similar to Netflix where rental is done at the touch of a button and streamed onto the TV, laptop, etc.