MKT 702 Week #2:
• Being a student of marketing is looking at something and understanding what it means
and why it is being done.
• Notes from case:
o Marketing as much as anything is a way of looking at things and looking for
o Product quality, products shipped partly assembled, save freight costs, reduce
manufacturing costs, farmer attached wheels and made setting adjustments,
excellent instructions included, all parts numbered and color coded, arrows for
adjustments, performance depended on how well reaper was assembled, set and
o 1) How did providing clear instructions provide a competitive advantage? Helps
to maintain quality assurance (better instructions = better user training, better
performance = higher satisfaction, more goodwill = more WOM and all in all
o 2) Why would standardized parts be a competitive advantage? Allows for
cannibalization if brand loyal, reduces inventory at dealer, and reduces
manufacturing costs. Economies of scale!!!
o 3) Why was a railroad a competitive advantage? Railroad that carried cattle went
back empty. Therefore, the use of the now low cost empty cart helped ship
reapers out West.
o Used low cost penetration pricing. He offered terms so that it would reduce the
uncertainty in farmers that the product was not good.
o Continuous improvement of his products and quality, understood where the
market really was, understood what the market needs were, understood how to
utilize the available publicity that would help his business flourish. Multi level
1. He understood that manufacturing and marketing effort was as important as product
invention, even more important. He did buy out other patented feature improvements but he and
no-one else could buy the manufacturing and marketing operation he created.
2. He early on recognized that the huge market for the reape