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10 Must-Read Articles from HBR as of 2010/2/5

Title: Marketing Myopia. Theodore Levitt 2010/08

Harvard Business Review; Jul/Aug2004, Vol. 82 Issue 7/8, p138-149
McKinsey Award in 1960
From Abstract
Shadow of mismanagement: selling, not marketing
The history of every dead and dying 'growth' industry shows a self-deceiving cycle of bountiful
expansion and undetected decay due to a limited market view.
Those behind the railroads are in trouble not because the need for passenger transportation
B has declined or even because that need has been filled by cars, airplanes, and other modes of
E transport. Rather, the industry is failing because those behind it assumed they were in the
F railroad business (product oriented) rather than the transportation business (customer
O oriented). memories are short
E KeyWord :
Fateful purposes, shadow of obsolescence, self-deceiving cycle, population myth, lag in
Detroit, Product Provincialism, dangers of R&D, creative destruction, Stepchild Treatment,
Marketing Shortchanged, Visceral feel of greatness

Interesting Point
1960년 아티클을 2004년에 Best of Best로 원문 그대로 다시 게재. 1960년에 McKinsey Award 수상
Important Concept from my view or author’s
Definition of business, Obsolescence, Self-Deceiving Cycle, Production Pressure, Dangers of
A I got an idea!
F 1960년대의 concept이라고 소개(사례, 통찰력)하면 놀랄 소재들을 건졌다.
T 철도산업의 퇴락에 대한 본질적인 통찰, 고객/시장을 등진 Chevrolet의 놀라운 사례,
E 대량생산의 또 다른 폐해, 오해를 받은 헨리 포트의 경영방침(price vs. cost)
R R&D 중심 기업(중소,벤처기업)이 가질 수 있는 위험 (dangers of R&D)
Theodore Levitt (1925, Vollmerz, Main-Kinzig-Kreis, Germany – 2006, Belmont, Massachusetts) was an American economist and
professor at Harvard Business School. He was also editor of the Harvard Business Review

e Note
13 시장이 성숙되어서 성장이 멈췄다고? 시장 탓하지 마라! 핵심은 사업에 대한 정의다!
13 Railroad biz (=railroad oriented=product oriented) vs.
Transportation biz (=transportation oriented=customer oriented)
13 TV의 출현에 직면한 Hollywood case: making movies biz vs. providing entertainment biz
14 Shadow of Obsolescence case: DryCleaning, Electric Utilities, Grocery Stores
Fist genuine supermarket- 1930, Jamaica, Long Island
14 Self-deceiving cycle for dead and dying “growth” industry comes from
1 1. The belief that growth is assured by an expanding and more affluent population;
2. The belief that there is no competitive substitute for the industry’s major product;
3. Too much faith in mass production and in the advantages of rapidly declining unit costs as
output rises., Want to share knowledge and wisdom with you ^^

4. Preoccupation with a product that lends itself to carefully controlled scientific
experimentation, improvement, and manufacturing cost reduction
14 One of the greatest enemies is mass production; Production Pressures
14 The history of every dead and dying “growth” industry shows a self-deceiving cycle of
bountiful expansion and undetected decay.
14 Mass production -> pressure to move the product -> pressure for selling not marketing
14 Selling concept vs. marketing concept 잘 정리되었음.
14 Only 57 of Chevrolet’s 7,000 dealers provide night maintenance service. (놀랠 노자다!)
14 Ford를 오해한 부분!
Ford가 강조하길, 소비자가 구매할 수 있도록 가격인하가 먼저고 원가는 신경 안 쓴다.
원가를 얼마나 낮춰야 하는 지 기준은 어차피 없지 않은가? (결국 마케팅과 target costing을 강조!)
14 The historic fate of one growth industry after another has been its suicidal product
14 Dangers of R&D, too much attention to research , come from

1. 상품의 복잡성과 정교함 때문에 관리(management)가 엔지니어나 과학자들이 해야 하는 무거운 것

이 되었기에. (마케팅은 something else로 취급되어짐)
2. 통제 가능한 변수(variables)만 다루려고 하기 때문에 (급변하는 시장의 변화를 다루려 하지 않음)

14 상품의 단위당 원가가 줄어들 수 있는 상황일수록 생산을 강조하게 된다.

14 The Visceral Feel of Greatness

End of page, Want to share knowledge and wisdom with you ^^