Cyrus McCormick: The Importance of Marketing Processes and Product Innovation

Topics: Innovation, Cyrus McCormick, Marketing Pages: 3 (877 words) Published: November 26, 2013


Case 1: Cyrus McCormick: Understanding the Importance of
Marketing Processes as Well as Product Innovation

Cyrus McCormick is accountable for one of the greatest achievements in contemporary progress – the construction and promoting of the mechanical reaper. Crops were collected by hand until the 1830’s. At the fresh age of 22, Cyrus recognized that success would come from mass marketing efforts. This would result in mass manufacturing, lessening expenses, and leading to lower prices with more revenues. These revenues would in turn be financed back into the invention and market expansion. This sequence indicates a prevailing spot in the antagonism of an innovating business. McCormick understood the significance of product, promotion, place, and price innovation tactics. Cyrus McCormick’s success in business may have subsidized an end to the southern way of life and building the foundation for modern day business. McCormick succeeded in developing innovative tactics and practices associated with product, place (distribution), promotion, and price which drove his success, and lack thereof to the replacement of the reaper. McCormick was very thoughtful about place (distribution). In fact, one of his first plants was positioned on the river and lake front, with barges and sailboats able to load on one side of the plant and a railway line on the other, making for efficient means of transporting the product to consumers. In the early 1840’s as McCormick’s reaper began to grow, McCormick increased distribution of his invention by setting up local agents and sub agents in different cities. These agents were contractually obligated to maintain a sample machine reaper and satisfy any customer concern. McCormick effectively distributed his reaper while maintaining customer focus through informed sub-agents. Cyrus McCormick created his own magazine featuring consumer testimonials and performed field demonstrations; developing...

References: Dickson, P. R. (2009). Marketing Principles & Processes. Online Electronic Edition: Backbone Press.
Foundation, I. F. (2009). FROM FARM TO FORK: WHAT THE EXPERTS SAY ABOUT MODERN FOOD PRODUCTION. International Food Information Council Foundation, 4.
Lefler, P. (2012). The innovative genius of Cyrus McCormick. Retrieved September 3, 2013, from http://www.spruancegroup.com/blog/bid/55606/the-innovative-genius-of-cyrus-mccormick
MacRae, M. (2012, June). Cyrus McCormick. Retrieved September 3, 2013, from ASME Setting The Standard: http://www.asme.org/engineering-topics/articles/manufacturing-processing/cyrus-mccormick
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