Cyrus Mccomick Case Marketing

Cyrus McCormick Case

1. The marketing mix is made up of the 4Ps, product, place (distribution), promotion and price. For which of the 4Ps did McCormick not develop innovative tactics and practices?

McCormick did address in my opinion all of the 4Ps however, innovation may have been lacking for his product compared to place, promotion and price. His product remained relatively the same since inception with changes/innovations only addressing quality over time. He developed tactics for “place” by moving to Chicago, setting up satellite factories and producers throughout the mid-west and east coast. He also addressed the “price” aspect by selling low in the beginning to appeal to a larger market and bring consumers in and then announcing a higher regular price. In addition, he introduced payment plans, which at that time was risky as no one had ever done it before in his industry. McCormick was a pioneer when it came to “promotion”. Testimonials, product guaranties and the focus on quality made his product a favorite among farmers.

2. Was it product innovation or innovation in the diffusion (the marketing) of product innovation that was at the root of McCormick’s success?

McCormick’s success was chiefly based on the innovation in the diffusion of the product innovation. McCormick learned from past innovators that his success would not come from patent protection, rather from mass marketing efforts, that would generate mass manufacturing, and in turn would reduce costs and would lead to lower prices, resulting in larger profit, greater sales growth and more capital to reinvest in product & market development. McCormick focused on innovation, customer focus and product quality, which were the keys to his success.

3. What technology is driving most advances in food production and marketing today?

Today the most prevalent and driving force in terms of advancements in food production is computer technology. For example, Dairy farmers in the United...