McCormick Case

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 developed his brand in all of the 4Ps, with innovation in tactics and practices. Through his marketing process he was able to build a successful product and company however, he was delayed in the speed of success due to factors out of his control. When McCormick first started, his machines were shipped by boat and barge in the canal system, from 1830-1850. It was not until after 1850 that the proper infrastructure for transportation would be in place. This twenty-year delay took a toll on his business.

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

Innovation in the diffusion of product innovation was the root of McCormick success; he understood that the marketing process was more important than the invention itself. He controlled the quality of his suppliers by terminating all licensee agreements in order to stabilize the quality of the products being rendered, he provided a guaranty that was unheard of at the time, promising performance or the customer would get their money back, and he used penetration pricing in order to establish brand loyalty.

His advertisement campaigns were new and different from the rest of the competition; he was the first to use his customers to inform others how great his products were, he understood that they would not only talk about the machine, but also, about the support team that was available to them. Because he was so successful with innovation in the diffusion of the product, he was then able to invest in product innovation.

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