Article Critique - Marketing Myopia

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“Marketing Myopia”
Leighton A. Aviles
Faculty of Business, University of New Brunswick Saint John
MBA 7510: Effective Communication
Shauna Cole
February 12, 2021

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Within the article “Marketing Myopia” written by Theodore Levitt and published by Business Harvard
Review, the author explains us how companies have been short-sighted and have paid more attention to
their product and not to their market. Levitt believes that this illness comes from the arrogance of
engineer managers, as they believe customers are “unpredictable, fickle, stupid, short-sighted, stubborn
and generally bothersome” (Levitt, 1960, p. 54), therefore they pay more efforts to reduce costs and yet
offer a product that does not meet their customers needs. For a company to succeed and endure
through time, it must understand that the market does not start with a product’s offering and ends with
the sale; it begins with a customer needing a product with certain characteristics that a company can
supply, nevertheless Levitt states that managers from this myopic companies makes research going
against the scientific method (fooling themselves), as they perform research to support a preconceived
idea. Is about customer satisfaction versus goods producing approach.
Levitt uses the phrase “growth industry” to refer to those companies that once had a strong and
appealing product with unquestionable strength, simply there was no competition for them. This
companies trusted to much on their products that forgot the only constant in business, everything is
variable. Companies need to adapt to their customers and create in them a satisfaction feeling, and this
must be done before their competitors if they want to keep in the game.
It surprises me that nearly 60 years after the original publication of the article we still hear about
companies where executives were short-sighted and paid more attention to the product or service and
not to their market. In 2010, the world was hit with the news indicating that Blockbuster was in
bankruptcy. With nearly 84,000 employees around the world, 65 million registered customers and once
valued as a 3-billion-dollar company, with a one-year earnings of 800 million dollars just in late fees
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(Insider, https://www.businessinsider.com/the-rise-and-fall-of-blockbuster-video-streaming-2020-1),
loose its market against Netflix which changed the business model with online stores, lower costs, and
offering a subscription that allowed customers to avoid late return fees.
I believe that Blockbuster’s executives trustfully relied on the idea that their market and growth was
assured, and no other company was a risk for them, complying with the two first conditions of Levitt’s
“self-deceiving cycle”. Blockbuster’s approach was to product and not to client. They misunderstood
that their business was not movie rentals but to entertain, hence they were not able to adjust and offer
their customers a product according to their needs resulting in Blockbuster’s debacle.
On the other hand, creative and customer centric companies have been changing the markets. They not
only change them offering a more customized product but innovating the distribution channels and
revolutionizing the way business are made. Uber is a clear example of this innovating companies.
According to Uber site (https://www.uber.com/en-CA/newsroom/history/), on March 2009 Uber was
created by two entrepreneurs that during the winter could not get a taxi. They change the traditional
way to ask for a taxi (by phone or just waiting outside), they also include the option to pay using your
credit card and making possible to track the rider before arrival (or schedule your pickup).
Uber understood their customers and their transportation needs. For instance, in Mexico Uber started
offering taxi rides where you were able to track your own ride. After an incident where a girl was raped
and murdered by a taxi driver from another company, users complained, and Uber responded almost
immediately adding the option to let you share your trip with someone else. Some months later they
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added a panic button into the app, and the possibility to record the conversations inside the auto. Also,
as users complained about the costs of the ride, Uber created “Uber Pool”, where users share the ride,
so the cost is lower or even you can schedule a ride.
Uber not only offers a transportation for individuals, but they have “Uber Eats” offering food delivery
(food transportation by car, motorcycle or curriers by foot), “Uber Freight” (connecting trucking
companies with shippers) a division to transport goods or Uber Copter. And as special campaigns they
have launched temporary services as Uber Santa (option to buy and receive toys), “Uber Valentine”
(send flowers or a present for a loved one) or Uber Pass as a membership to avoid delivery costs for
some services as Uber Eats). As par of their innovation hearing the market, they have launched a pilot
program to develop a self-driving car. Due their customer centre policy, they have been adapting their
offerings allowing their growth despite complains and manifestations against Uber from traditional taxi
not willing to change their business model neither improve their service.
I believe that Levitt’s premise is current and consider that every executive should read it at least once, as
a warning of what might happen if they misfocus. We have heard many times that nowadays the
market changes very fast as a reaction in customer’s preferences. What once was not a commodity, now
it can be consider as one (e.g., a phone with integrated camara). I share Levitt’s opinion; companies
should pay closer attention to customer demands and reactions so they can innovate and perdure over
time. Companies must find their way and purpose through customers eyes, as Lewis Carroll wrote “If
you don't know where you are going any road can take you there”.
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References
Levitt, T. (1960). Marketing myopia. Harvard Business Review, 38(4), 45-56.
Ash, A. (2020, August 12). The rise and fall of Blockbuster and how it's surviving with just one store left.
Business Insider. https://www.businessinsider.com/the-rise-and-fall-of-blockbuster-video-
streaming-2020-1.
The History of Uber - Uber's Timeline. Uber Newsroom. (2018, May 2). https://www.uber.com/en-
CA/newsroom/history/.
Xplore. Lewis Carroll Quotes. BrainyQuote. https://www.brainyquote.com/quotes/lewis_carroll_165865.

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1

Faculty of Business, University of New Brunswick Saint John

MBA 7510: Effective Communication

February 12, 2021

idea. Is about customer satisfaction versus goods producing approach.

offering a subscription that allowed customers to avoid late return fees.

their customers a product according to their needs resulting in Blockbuster’s debacle.

According to Uber site (https://www.uber.com/en-CA/newsroom/history/), on March 2009 Uber was

so the cost is lower or even you can schedule a ride.

Levitt, T. (1960). Marketing myopia. Harvard Business Review, 38(4), 45-56.

Xplore. Lewis Carroll Quotes. BrainyQuote. https://www.brainyquote.com/quotes/lewis_carroll_165865.

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