What are the short and long term implications in marketing myopia?
Answers
Those who do not know myopia describes the phenomenon of distant objects appearing very blurry whereas .
At times managers face short-term incentives that lead them to engrossed in “myopic marketing management”: in order to manually inflate current-term earnings (thereby increasing current stock price)and they cut marketing expenditures.
Mizik and Jacobson discovers these questions in this point of seasoned equity offerings i.e., when a firm issues additional equity to gather additional capital.
Here amount of capital gathered by the organization depends solely on the stock price on the day of issue and managers have an incentive in earnings inflation at the time of SEO.
The short and long term implications in marketing myopia is that the strategies used by the companies are focused in resolving short term goals and they over look the long term goals of the company that defines the vision and mission of the company and they fail to monitor the market changes.