McCormick Case
1. The marketing mix is made up of the 4Pâs, product, place (distribution), promotion, and price. For which of the 4Pâs did McCormick NOT develop innovative tactics and practices?
None. Cyrus McCormick innovated each of the 4Ps. With âproductâ, he continued the work his father started and continuously improved the reaper. He took feedback from the field (such as when farmers unknowingly left the equipment outside only to find it had rusted) and improved the product through better, standardized & interchangeable parts, clear assembly & operating instructions, and design improvements that increased the equipmentâs reliability to the point he could offered an absolute guaranty. With âplace (distribution)â he innovated by finding the best transportation locations to set up his factories, picking areas with access to both railroad and river transportation systems. Understanding his markets and suppliers (in this case the railroads) he capitalized on the empty rail cars caused by bringing cattle to market. He also created good distribution channels & setting up local agents. He also innovated âpromotionâ & âpricingâ techniques that ensured brand loyalty &d future sales.
2. Was it product innovation or innovation in the diffusion (the marketing) of the product innovation that was a t the root of McCormickâs success?
It was the diffusion of the innovations that provided for the success of McCormickâs equipment. McCormick realized that while others were attempting to copy and infringe on his patent, true success would be in the widespread use of his equipment. In short, that the market would determine the winner of the innovation and to do that the product had to be diffused throughout the country. He was one of the first to send out print ads of the product, as well as use magazines with testimonial of his products. Later on, he created his own magazine, Farmers Advanced. McCormick studied his market and therefore, created shows and demonstrations which