Marketing Myopia by Theodore Levitt (1960) — Decoded for Modern Readers

Why You Should Read This Paper

Have you ever wondered why even big, successful companies sometimes collapse?
Theodore Levitt’s Marketing Myopia provides a timeless answer:

👉 They fall in love with their products instead of staying obsessed with customer needs.

This paper will transform how you think about business growth, innovation, and survival in changing markets.

By reading this, you’ll learn how to:

• Keep your business relevant over time.

• Focus on solving customer problems — not just selling products.

• Avoid the silent traps that kill companies.

Whether you're an entrepreneur, marketer, manager, or student — this lesson is essential.

Introduction

Marketing Myopia is a famous article written by Theodore Levitt in 1960, published in the Harvard Business Review.
It highlights a dangerous mistake companies make: focusing too much on selling products instead of understanding what customers truly need.

Levitt argues that companies should not define themselves by what they produce, but by the customer needs they fulfill.

In simple words:

It's not about the product you sell — it's about the problem you solve.

Summary of the Original Paper

In Marketing Myopia, Levitt criticizes businesses for having a narrow view of their markets.
He points out that companies often assume they will keep growing simply because their industry is booming. But, real growth depends on deeply understanding and adapting to customer needs.

Levitt uses examples to drive the point home:

• Railroads: Failed because they believed they were in the “railroad” business, not in the “transportation” business.

• Hollywood: Lost market share to television because it thought it was in the "movie" business, not the broader "entertainment" business.

He warns that technological innovations alone won’t save a company if it doesn't align with what customers truly want.

The article urges leaders to view their industries from the customer’s perspective, innovate continuously, and focus on providing true value beyond the product.

Famous Quotes from the Paper

Here are two iconic quotes from Marketing Myopia:

“People don’t buy a quarter-inch drill, they buy a quarter-inch hole.”
(— Theodore Levitt)

👉 This captures the essence of customer-centered thinking: customers buy outcomes, not products.

“An industry begins with the customer and his needs, not with a patent, a raw material, or a selling skill.”
(— Theodore Levitt)

👉 It reminds us that customers' needs, not company capabilities, define the future of a business.

Why it matters

Levitt’s message is even more urgent today:

• Markets evolve faster than ever.

• New technologies disrupt industries overnight.

• Customer expectations are continuously rising.

If companies stay stuck thinking about their existing products, they risk becoming irrelevant — no matter how big they are today.

In today’s world, customer-obsession is survival.

Key concepts explained simply

• Marketing Myopia:
  Short-sightedness — focusing only on your current product instead of understanding broader customer needs.

• Customer Orientation:
  Building products and services based on what customers truly want — not what companies think is best.

• Industry Definition:
  Defining your business by the customer problem you solve (like transportation, not railroads).

• Growth Trap:
  False belief that growing industries will automatically bring company growth without innovation.

• Creative Destruction:
  When newer innovations replace older ones, forcing companies to adapt or disappear.

Real-world applications/examples

Real modern examples that show Levitt's ideas in action:

• Kodak:

  • Focused on film photography even as the world moved to digital.

  • Result: Bankruptcy.

• Netflix:

  • Started with DVD rentals, but pivoted to online streaming when customer habits changed.

  • Now a global entertainment giant.

• Uber:

  • Didn't aim to create "better taxis."

  • They solved transportation convenience — rides on demand through an app.

• Apple:

  • Doesn't just sell phones or laptops.

  • Sells a seamless experience of creativity, communication, and entertainment.

Quick Modern Update

Today’s startups and tech companies must stay hyper-focused on evolving customer problems.
It’s not enough to build a cool app or product — you must continuously solve meaningful customer needs.
In the AI and tech age, speed of adaptation matters more than size or legacy.

5 Quick Reflection Questions

Ask yourself (or your company/team):

1. Are we defining ourselves by what we sell or what customer problem we solve?

2. When was the last time we re-evaluated customer needs directly from real customers?

3. Are we overconfident because our industry is growing right now?

4. Could a new technology make our current offering irrelevant overnight?

5. How would we describe our business if we couldn't mention any product names?

Key takeaways or action points

• ✅ Define your business by the customer need, not by the product.

• ✅ Always ask: What problem are we solving today?

• ✅ Growth is not guaranteed — you must innovate constantly.

• ✅ Stay obsessed with customer outcomes, not product features.

• ✅ Be ready to adapt fast as technologies and customer expectations change.

Small Thought

What struck me most about "Marketing Myopia" is its timeless relevance. Even decades later, it feels like a guide for today's entrepreneurs facing tech disruptions and changing consumer habits. If anything, it made me realize that staying customer-obsessed is harder than it sounds — but absolutely vital. Levitt’s examples might be from older industries, but the lessons are universal.

Where to read the full paper

You can read the full original article here:
👉 Marketing Myopia – Harvard Business Review
(Note: You might need to log in or purchase the article.)

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