CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES

Technical Service and Application Research in the Competitive Sixties F. J. MacRAE and N. R. PETERSON

Downloaded by EAST CAROLINA UNIV on January 3, 2018 | http://pubs.acs.org Publication Date: June 17, 1959 | doi: 10.1021/ba-1959-0024.ch014

The Dow Chemical Co., Midland, Mich.

Company efficiency in the sixties will require even more than the present organization in depth. The several billion pounds a year of plastic products of that period will feel more the effects of imports and exports, as well as advances in plastics technology. Within companies, technical service groups will be uniquely able to provide liaison on technical matters among management, research, production, marketing, and sales. Such liaison is synonymous with technical progress. Technical service to the customer must: provide technical data, hold training and educational seminars, undertake specific laboratory projects, assist in a customer's plant to find remedies for problems, and evaluate products. This will be very important. Competition will be harder, less technical information will be generally distributed free, and more service will be demanded by customers. Technical service facilities for the future need to be planned now. Costs will be higher. Technical service people will need more training and more people will be needed. Education and communication will be the key words in technical service in the competitive sixties.

In the agenda o f t h i s s y m p o s i u m , t e c h n i c a l service i s l i s t e d as one of " m a n a g e ment's tools t o d o t h e j o b . " T h e j o b , p r e s u m a b l y , i s p r o f i t a b l e existence as a p l a s t i c s producer. W e s u b m i t t h a t t e c h n i c a l service a n d a p p l i c a t i o n research are a m o n g t h e more i m p o r t a n t of m a n a g e m e n t ' s " t o o l s " i n p l a s t i c s p r o d u c i n g companies. C o m p a n y efficiency i n the sixties, even m o r e t h a n n o w , w i l l r e q u i r e o r g a n i z a t i o n i n d e p t h — f r o m research t o p r o d u c t i o n t o t e c h n i c a l service a n d p r o d u c t d e v e l o p m e n t t o sales t o m a r k e t i n g — i f the c o m p a n y is t o h a v e a h e a l t h y e x i s t ence i n t h e p l a s t i c s area. T h e p l a s t i c s i n d u s t r y i s g r o w i n g u p . T h e several b i l l i o n p o u n d a y e a r p l a s t i c p r o d u c t s w h i c h t h e e a r l y sixties w i l l see, the effect of i m p o r t s a n d exports as p l a s t i c s usage becomes s i g n i f i c a n t i n E u r o p e , A s i a , A f r i c a , a n d S o u t h A m e r i c a , a n d the a c c e l e r a t i n g increase i n p l a s t i c s t e c h n o l o g y : these t h i n g s are b r i n g i n g us t o r a p i d m a t u r i t y . T h e p l a s t i c s i n d u s t r y c o n ceived i n t h e forties a n d w h i c h experienced g r o w i n g p a i n s i n t h e fifties h a s m a t u r e d a n d i s g e t t i n g d o w n t o h i g h l y effective w o r k . 102

CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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I n t h e p a s t decade, m a n y companies were l u r e d i n t o t h e p l a s t i c area b y t h e p r o m i s e of large profits f r o m a s m a l l i n v e s t m e n t . T h e y entered t h e i r chosen segment of t h e m a r k e t b y m a t c h i n g or n e a r l y m a t c h i n g large v o l u m e p r o d u c t s of e s t a b l i s h e d producers. I f t h e y c o u l d n o t m a t c h q u a l i t y o r service, t h e y were w i l l i n g t o compensate f o r t h e i r deficiency b y r e d u c i n g prices. Some of these companies h a v e prospered. H o w e v e r , i n t h e course of d o i n g business, t h e i r customers c o n t i n u a l l y p r e s sured t h e m t o raise p r o d u c t q u a l i t y , t o develop n e w a n d better p r o d u c t s , a n d t o p r o v i d e t e c h n i c a l i n f o r m a t i o n c o n c e r n i n g t h e i r p r o d u c t s a n d e n d uses. M o s t o f these companies a r e n o w s p e n d i n g sufficient research m o n e y a n d t e c h n i c a l service m o n e y t o m a k e t h e m r e l u c t a n t t o c u t prices t o o b t a i n m o r e business. T h e i r o r g a n i z a t i o n i s b e c o m i n g m o r e a n d m o r e l i k e t h a t of t h e m a j o r p l a s t i c s producers. F r o m 1948 t h r o u g h 1951, t h e p l a s t i c s i n d u s t r y d i d n o t m e r e l y g r o w — i t exploded. A t D o w w e h a d a n t i c i p a t e d such g r o w t h a n d a c c o r d i n g l y h a d est a b l i s h e d o u r P l a s t i c s T e c h n i c a l S e r v i c e i n 1946, a n d o u r C o a t i n g s T e c h n i c a l S e r v i c e ( t h e first o f i t s k i n d i n i n d u s t r y ) i n 1947. F r o m 1948 t h r o u g h 1951 w e p l a y e d host t o a l m o s t e v e r y m a j o r p l a s t i c s p r o d u c e r — t h e y a s k e d t h e benefit of o u r experience i n s e t t i n g u p p l a s t i c s t e c h n i c a l service a n d p r o d u c t d e v e l o p m e n t o r g a n i z a t i o n s of t h e i r o w n . T e c h n i c a l service a n d p r o d u c t d e v e l o p m e n t as tools were f o u n d necessary b y general p l a s t i c s m a n a g e m e n t , i f t h e i r companies were t o experience g r o w t h i n k e e p i n g w i t h t h a t of the w h o l e i n d u s t r y . In-Company Functions T h e v e r y n a t u r e of t h e t e c h n i c a l service a n d p r o d u c t d e v e l o p m e n t group causes i t , m o r e t h a n a n y other c o m p a n y g r o u p , t o h a v e i n t i m a t e f a m i l i a r i t y w i t h p r o d u c t p r o p e r t i e s , a p p l i c a t i o n m e c h a n i c s a n d t e c h n i q u e s , a n d customer r e q u i r e m e n t s . F o r t h i s reason, i t is t h e group t h a t is u n i q u e l y able t o p r o v i d e l i a i s o n on technical matters a m o n g m a n a g e m e n t , research, p r o d u c t i o n , m a r k e t i n g , a n d sales w i t h i n t h e c o m p a n y , a n d between t h e c o m p a n y a n d i t s customers. S u c h l i a i s o n i s s y n o n y m o u s w i t h t e c h n i c a l progress i n t h e p l a s t i c s - p r o d u c i n g industry. M a i n t e n a n c e of a desirable b a l a n c e between basic research a c t i v i t y a n d the design of new p r o d u c t s assures c o n t i n u e d c o m p a n y strength i n t h e p l a s t i c s area. T e c h n i c a l s e r v i c e — l e t us c o n v e n i e n t l y d r o p t h e and product development — h e l p s r e l a t e research k n o w - h o w t o p r a c t i c a l ends. T h i s is a m a j o r role of T e c h n i c a l S e r v i c e n o w , a n d w i l l continue t o be so i n t h e sixties. P r o d u c t i o n groups need specifications f o r p l a s t i c s m a t e r i a l s w h i c h f a l l w i t h i n a l l o w a b l e p r a c t i c a l p r o p e r t y d e v i a t i o n s . T h i s saves p r o d u c t i o n t i m e a n d p r o d u c t i o n m o n e y . P r a c t i c a l p r o p e r t y ranges a r e best o b t a i n e d f r o m t e c h n i c a l service groups, because of t h e i r constant t e c h n i c a l contact w i t h end-use i n dustries. S a l e s a n d m a r k e t i n g groups h a v e sufficient r e s p o n s i b i l i t i e s of t h e i r o w n t o p r e c l u d e t h e i r b e i n g " e x p e r t " across t h e b o a r d i n p l a s t i c s t e c h n o l o g y . H o w e v e r , t h e y r e q u i r e a c o n s t a n t flow of t e c h n i c a l i n f o r m a t i o n t o help keep t h e m u p t o date. T e c h n i c a l service o r g a n i z a t i o n s c o n s t i t u t e a n u n e x c e l l e d t e c h n i c a l i n f o r m a t i o n center f o r sales, m e r c h a n d i s i n g , a n d o t h e r i n - c o m p a n y groups. I t i s m a n a g e m e n t , of course, t h a t uses t h e t e c h n i c a l service t o o l t o a c c o m CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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p l i s h these a n d other ends. T h e p a t h s of c o m m u n i c a t i o n j u s t discussed r u n b o t h w a y s , a n d t h e c h a n n e l i n g of i n f o r m a t i o n f r o m other i n - c o m p a n y groups t h r o u g h m a n a g e m e n t helps d e t e r m i n e p r e c i s e l y o n w h a t a n d w h e r e t h e t e c h n i c a l service o r g a n i z a t i o n w i l l p l a c e m a j o r e m p h a s i s .


The Organization I n T h e D o w C h e m i c a l Co.'s Plastics Department, we have a Plastics Technical Service ( P T S ) a n d a Coatings Technical Service ( C T S ) . One is concerned w i t h those p l a s t i c s w h i c h a r e r e a d i l y i d e n t i f i e d as s u c h , because t h e y are films, sheets, foams, f a b r i c a t e d p r o d u c t s , or m a t e r i a l s t o be m o l d e d o r e x t r u d e d . T h e other deals w i t h monomers a n d p o l y m e r s or c o p o l y m e r s w h i c h , i n r e s i n a n d l a t e x f o r m , o r d i n a r i l y lose t h e i r i d e n t i t y . T y p i c a l a p p l i c a t i o n s a r e i n p a i n t s , p a p e r coatings, a n d t e x t i l e coatings. C T S a n d P T S screen e x p e r i m e n t a l p r o d u c t s , test a n d e v a l u a t e t h e m f o r end-use significance, a n d c o n d u c t field d e v e l o p m e n t a n d t e c h n i c a l service f o r those p r o d u c t s w h i c h p r o m i s e success. W i t h i n t h e l a s t 10 y e a r s P T S has g r o w n f r o m 4 t o 12 sections; C T S has g r o w n f r o m 3 t o 12 sections. T h e s e d i v i s i o n s h a v e assured u s t h a t each i m p o r t a n t a r e a of end-use i n d u s t r i e s a n d each i m p o r t a n t t y p e of f a b r i c a t i o n o r a p p l i c a t i o n gets i t s necessary a t t e n t i o n . F i g u r e 1 shows a section b r e a k d o w n of P T S . F i g u r e 2 shows a section b r e a k d o w n of C T S . DEPARTHE Μ Τ MANAGER Χ FABRICATED PRODUCTS

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B y o b s e r v a t i o n of F i g u r e s 1 a n d 2 y o u p e r h a p s note t h a t there is i n t e n t i o n a l o v e r l a p p i n g between P T S a n d C T S . B o t h groups, f o r e x a m p l e , h a v e a B u i l d i n g P r o d u c t s section so t h a t e v e r y t y p e of p l a s t i c c a n be considered f o r these a p p l i c a t i o n s . C o n v e r s e l y , o n l y C T S has a P a p e r S e c t i o n , a n d o n l y P T S has a n E x p a n d e d P l a s t i c s S e c t i o n .



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T h e r e is a c o n t i n u o u s exchange of i n f o r m a t i o n a n d ideas between t h e t w o groups, w h i c h is f a c i l i t a t e d b y h a v i n g the t w o l a b o r a t o r i e s i n close p h y s i c a l p r o x i m i t y , w i t h i n the same b u i l d i n g . P r o d u c t s s u c h as p o l y e t h y l e n e a r e e v a l u a t e d a n d u t i l i z e d b y b o t h groups. P T S has p o l y e t h y l e n e m o l d i n g p o w d e r s , films, a n d foams ; C T S has p o l y e t h y l e n e c o a t i n g grade resins. H o w e v e r , l a t e x t y p e p r o d u c t s are the p a r t i c u l a r p r o v i n c e o f C T S , w h i l e S t y r o n m o l d i n g a n d e x t r u s i o n m a t e r i a l s are t h e e x c l u s i v e interest of P T S . A s new t y p e s of p r o d u c t s a n d as new end-use i n d u s t r i e s come i n t o b e i n g , t h e shape a n d f o r m of the t e c h n i c a l o r g a n i z a t i o n s w i l l change to a c c o m m o d a t e the new interests.


Development D e v e l o p m e n t w o r k for p l a s t i c p r o d u c t s i n c l u d e s w o r k i n g w i t h research a n d p r o d u c t i o n groups on t h e design of new p r o d u c t s a n d i n t h e m o d i f i c a t i o n of o l d ones. I t includes field d e v e l o p m e n t a c t i v i t y t o f o r m u l a t e or f a b r i c a t e p l a s t i c p r o d u c t s for o l d a n d for new uses, d e v e l o p m e n t w o r k done a t t h e request of customers, as w e l l as s e l f - i n i t i a t e d d e v e l o p m e n t w o r k . A t t h e present t i m e , between 60 a n d 7 0 % of the t o t a l a c t i v i t y of o u r P T S a n d C T S is spent o n d e v e l o p m e n t a l projects. W e believe t h a t other p l a s t i c s producers h a v e or s t r i v e to h a v e s i m i l a r emphasis. T h e r e are m a n y s o u n d reasons f o r s u c h e m p h a s i s on d e v e l o p m e n t . A m o n g t h e m are t h e facts t h a t c o m p a n y g r o w t h i n p l a s t i c s a n d c o n t i n u e d e x p a n s i o n of p l a s t i c s a p p l i c a t i o n s are m o r e a n d m o r e dependent o n s u p p l y i n g m a n y s p e c i a l grades of p l a s t i c s . P r o d u c t d i v e r s i f i c a t i o n is dependent on p r o d u c t d e v e l o p ment. T h e p r o d u c t s t h a t w i l l be e n j o y i n g t h e m o s t e x c i t i n g g r o w t h curves i n t h e c o m p e t i t i v e 1960's are even n o w i n the d e v e l o p m e n t stage i n the p l a s t i c s producer's l a b o r a t o r i e s . T h e d e v e l o p m e n t a c c o m p l i s h m e n t s of o u r t e c h n i c a l service groups are i n d i c a t e d i n F i g u r e 3, w h i c h shows the n u m b e r of new p r o d u c t s t u r n e d o v e r to

Figure 3.

New products released to sales from plastics technical service



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sales f r o m P T S i n the t e n y e a r s f r o m 1949 t o 1958. T o g a t h e r t h e f u l l i m p o r t of F i g u r e 3, i t m u s t be recognized t h a t few " o l d " p r o d u c t s d i e off—too f e w — a n d t h a t new p l a s t i c s p r o d u c t s are not o r d i n a r i l y c o m p l e t e l y released t o sales i n o u r c o m p a n y u n t i l t h e y h a v e h e a l t h y sales i n t h e m a n y t h o u s a n d s of d o l l a r s . N e w p r o d u c t t u r n o v e r f r o m C T S is s i m i l a r t o t h a t of P T S . T h e s a m e p a t t e r n of accelerated d e v e l o p m e n t is o b s e r v a b l e i n a l l m a j o r p l a s t i e s p r o d u c i n g c o m panies. A n d because t h e n u m b e r of d e v e l o p m e n t projects i n t h e p l a s t i c s l a b o r a t o r i e s is n o w greater t h a n ever, t h e y w i l l h a v e t r e m e n d o u s i m p a c t as sales p r o d u c t s i n t h e c o m p e t i t i v e 60's a n d i n the y e a r s t o f o l l o w . T h i s d e m a n d s planning and programming now. T h i s i m p a c t m a y w e l l be greater i n t h e sixties t h a n i t has been i n t h e p a s t , because c e r t a i n p r o d u c t s m a y be h e l d longer i n d e v e l o p m e n t a l stages. T h e p l a n n e d release o f c o m p l e m e n t a r y p r o d u e t s f o r a g i v e n end-use i n d u s t r y is a g o a l t o w a r d w h i c h a l l m a j o r p l a s t i c s producers are w o r k i n g . O b v i o u s l y , i t is n o t possible w i t h e v e r y p r o d u c t , because t h e p a c e of d e v e l o p m e n t w o r k v a r i e s w i t h each p r o d u c t . Technical Service T h e need f o r t e c h n i c a l service a c t i v i t y i n p l a s t i c s m a y be u n d e r s t o o d b y c o n s i d e r i n g the n u m b e r of p r o d u c t s w h i c h are released t o coatings a n d p l a s t i c s customers. I f y o u m u l t i p l y the c o m p l e x i t y of p r o d u c t s suggested i n F i g u r e 3 b y t h e m a n y different p l a s t i c s p r o d u c e r s , t h e r e s u l t is n e a r - a s t r o n o m i c a l . I t generates r e a l s y m p a t h y for t h e customer. H e needs t e c h n i c a l service. H e has t o h a v e i t . A n d he w i l l f a v o r t h a t c o m p a n y w h i c h does t h e m o s t adequate j o b o f p r o v i d i n g i t . B e c a u s e t h e c o m p e t i t i v e sixties w i l l see a c o n t i n u i n g s t r e a m o f p l a s t i c p r o d u c t s a p p r o a c h i n g t h e customer's d o o r , t e c h n i c a l service is a v e r y i m p o r t a n t c r i t e r i o n w h i c h he c a n use t o h e l p h i m choose between companies a n d p r o d u c t s t h a t m a y often a p p e a r t o h i m t o be i d e n t i c a l . S o m e of t h e b r o a d t e c h n i c a l services t h a t m a y be p r o v i d e d t o t h e customer include: Providing data on physical properties, handling characteristics Holding training and educational seminars i n either company or the customer's laboratories Undertaking specific laboratory projects to suit products to a customer's needs or equipment Answering customer requests for specific information Working i n a customer's plant either to assist h i m i n making best use of the plastic product or to find remedy for his problems Evaluating a customer's product to determine whether or not he has made most profitable use of the most suitable product A n d even t h i s general l i s t i n g is f a r f r o m complete. A t times plastics p r o d u c e r s find t h e m s e l v e s — i n t h e guise of t e c h n i c a l s e r v i c e — i n v o l v e d i n s u c h d e t a i l as p l a n t design a n d l a y o u t for a customer's i n s t a l l a t i o n s ; i n c o n s u l t a t i o n service to t e c h n i c a l t r a i n i n g i n s t i t u t i o n s ; a n d as c o n s u l t a n t s t o t h e m a z e of U . S. G o v e r n m e n t offices a n d agencies w h i c h need t o k n o w h o w , w h e n , a n d w h a t p l a s t i c s t o s p e c i f y . P e r h a p s a case h i s t o r y of a d e v e l o p m e n t - t e c h n i c a l service a c t i v i t y i n o u r l a b o r a t o r y w i l l give a better u n d e r s t a n d i n g of these f u n c t i o n s . T h e coatings group w a s a p p r o a c h e d b y a m a j o r glass s u p p l i e r w h o h a d designed a n i m p r o v e d t e l e v i s i o n tube a n d i m p l o s i o n p a n e l . T h e glass c o m CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.



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p a n y needed some k i n d of r e s i n l a m i n a t e w h i c h w o u l d be clear a n d colorless, w o u l d n o t interfere w i t h v i s i o n , w o u l d i m p l e m e n t p r o t e c t i o n f r o m t u b e i m p l o s i o n — a n d as some of o u r l a b o r a t o r y people p u t i t — w o u l d b e unaffected b y everything a n d would last forever! O u r development t e a m s u r v e y e d a l l t h e c o m m e r c i a l l y a v a i l a b l e m a t e r i a l s w h i c h c o u l d h a v e possible u t i l i t y — D o w w a s n o t t h e o n l y p l a s t i c p r o d u c e r a p p r o a c h e d — a n d d e t e r m i n e d t h a t none of t h e m were f u l l y s a t i s f a c t o r y . T h e next b i t of w o r k decided t h a t l i q u i d e p o x y resins showed m o s t p r o m i s e . R e s e a r c h , p r o d u c t i o n , a n d C T S w o r k e d together o n t h e design a n d m a n u facture of a u n i q u e l i q u i d e p o x y r e s i n a n d e p o x y hardener. A t t h e same t i m e , sales, m a r k e t research, a n d m e r c h a n d i s i n g were a l e r t e d a n d were a s k e d t o p r o v i d e i n f o r m a t i o n o n customer a t t i t u d e s , m a r k e t p o t e n t i a l , a n d a d v i s a b l e m a r k e t i n g procedure. W h e n a s a t i s f a c t o r y p r o d u c t w a s developed, o u r p a t e n t a n d l e g a l d e p a r t m e n t s were c a l l e d i n . A l l t h e basic w o r k w a s done w i t h t e c h n i c a l service a n d sales personnel of D o w a n d t h e several glass a n d t u b e suppliers m a i n t a i n i n g a t h r e e - w a y flow of i n f o r m a t i o n . T h e t e c h n i c a l service groups of o u r customers c o n t r i b u t e d as i m p o r t a n t facts a n d d a t a , as d i d w e . T h e cooperation of t h e several groups w a s necessary t o a c c o m p l i s h a successful development. I n a d d i t i o n t o r e s i n d e v e l o p m e n t i t w a s necessary t o b u i l d a m o c k - u p p r o d u c t i o n l i n e , t o design s p a c i n g devices, t o e v a l u a t e heaters, t o r e c o m m e n d a n a u t o m a t i c dispenser, t o purchase a n d m o d i f y t h i s e q u i p m e n t , a n d t o p u t o n l a b o r a t o r y d e m o n s t r a t i o n s e x h i b i t i n g t h e mass p r o d u c t i o n f e a s i b i l i t y of t h e resin s y s t e m . T h e n , w h e n t h e t i m e c a m e f o r i n - p l a n t t r i a l s , e q u i p m e n t setup a n d o p e r a t i o n , a n d e v a l u a t i o n of t h e e n d p r o d u c t r e q u i r e d s i m i l a r m u t u a l l y benefiting cooperation. T o d a y w e h a v e a p r o d u c t , D . E . R . 7 4 1 , a n d some of y o u r t e l e v i s i o n sets h a v e a new l o o k t h i s y e a r . T h i s c o u l d n o t h a v e h a p p e n e d if the s e v e r a l companies h a d n o t h a d m a n y t e c h n i c a l service tools t o do t h e j o b . T h e d e t a i l s o f t e c h n i c a l service such as were j u s t described are t y p i c a l . R e c e n t l y , a c u s t o m e r — a large a n d w o r t h y o n e — e v a l u a t i n g a n e w m o l d i n g p o w d e r for a s p e c i a l e n d use a s k e d P T S t o p r o v i d e h i m w i t h t h e m o l d s , i n s t a l l t h e m o n h i s m a c h i n e s , give h i m t h e r e s i n , supervise t h e test r u n s , a n d e v a l u a t e his p r o d u c t . I n t h i s instance t h e s u p p l i e r s a i d " N o " i n p a r t , a n d got a w a y w i t h i t . W e suspect t h a t i n t h e " M i d - C o m p e t i t i v e S i x t i e s , " p l a s t i c s producers m i g h t h a v e t o s a y " y e s " t o such requests. T h e expense of such a p r o j e c t w i l l be one of t h e p r i m a r y c o n s i d e r a t i o n s , because such expense cannot a l w a y s be passed o n t o t h e customer as a n i n creased charge f o r the p r o d u c t . T h e r e f o r e t h e who t e c h n i c a l service is p r o v i d e d for a n d t h e p o t e n t i a l r e t u r n are going t o be even m o r e c a r e f u l l y e v a l u a t e d i n the f u t u r e t h a n t h e y a r e now. T h e t e c h n i c a l service groups, a i d e d a n d abetted b y sales a n d m a r k e t research, w i l l m a k e such e v a l u a t i o n s . T h e p l a s t i c s p r o ducer i n t h e sixties w h o experiences t h e most equable g r o w t h m a y w e l l be t h e one w h o spends his t e c h n i c a l service d o l l a r s most w i s e l y . T o p r o t e c t themselves for t h e v a s t sums spent i n b o t h p r o d u c t d e v e l o p m e n t a n d t e c h n i c a l service, p l a s t i c s producers are going t o h a v e t o exercise more s t r i c t c o n t r o l o v e r p a t e n t s , a n d m a y w e l l h a v e t o p a y closer a t t e n t i o n t o the l i c e n s i n g of c e r t a i n a p p l i c a t i o n s . I n t i m e s of h e a v y c o m p e t i t i o n , a l l possible sources of income m u s t be i n v e s t i g a t e d . E v e n n o w , m a n y companies a r e l i c e n s i n g t h e b y - p r o d u c t s of p l a s t i c s developments. N e w i n s t r u m e n t s , new c o a t i n g a n d m o l d i n g e q u i p m e n t , a n d new techniques of h a n d l i n g a n d a p p l i c a t i o n are n o


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longer g i v e n a w a y , b u t are m a d e a v a i l a b l e for a s m a l l percentage of the sales price. O u r o w n c o m p a n y a n d i t s competitors h a v e i n t h e l a s t 10 y e a r s g i v e n a w a y a great d e a l of v a l u a b l e i n f o r m a t i o n . T h e p o l y s t y r e n e m o l d i n g t e c h n o l o g y a n d t h e l a t e x p a i n t technology developed b y D o w were m a d e freely a v a i l a b l e t o i n d u s t r y a t large. W e suggest t h a t i n the s i x t i e s , t h e m a j o r p l a s t i c s p r o d u c e r s m a y be less generous. T h i s a t t i t u d e is n o t p u n i t i v e ; i t is p r o t e c t i v e . I t is not i n t e n d e d t o r e s t r i c t customers, b u t t o ensure v a l u e r e t u r n for t h e c a p i t a l i n vested. T h e t e c h n i c a l service a n d sales groups m u s t , i n t h e u l t i m a t e sense, be responsible for r e c o m m e n d i n g t h i s or other a p p r o a c h t o m a n a g e m e n t .


Equipment T o do a comprehensive j o b of t e c h n i c a l service a n d p r o d u c t d e v e l o p m e n t requires a v a s t a m o u n t of s p e c i a l i z e d e q u i p m e n t . W e are n o t g o i n g t o d e t a i l t h e v a r i o u s t e s t i n g , e v a l u a t i o n , m o l d i n g , a n d f o r m u l a t i n g e q u i p m e n t necessary i n a n adequate l a b o r a t o r y . H o w e v e r , o n l y w h e n we c a n d u p l i c a t e i n our l a b o r a tories m o s t of the processes a n d a p p l i c a t i o n s encountered i n our customer's p l a n t s , c a n we do a t h o r o u g h j o b of service. A n d the a m o u n t of new e q u i p m e n t necessary to w o r k w i t h the p o l y m e r s a n d processes of t h e c o m p e t i t i v e sixties w i l l r e q u i r e a n i n v e s t m e n t for w h i c h astute companies are n o w p l a n n i n g . I n a d d i t i o n t o m e c h a n i c a l a n d e l e c t r i c a l e q u i p m e n t , the t e c h n i c a l service and development l a b o r a t o r y — t h e p l a n t itself—must measure up to the demands m a d e of i t . L a b o r a t o r y areas, w o r k areas, a n d office areas are needed, b u t so are conference rooms, p r o j e c t i o n rooms, l e c t u r e h a l l s a n d the l i k e . B e c a u s e i t t a k e s y e a r s to get a p l a n t f r o m the i d e a t o t h e d r a w i n g b o a r d t o t h e s i t t i n g d o w n - a c r o s s - f r o m - a - c u s t o m e r , the t e c h n i c a l service f a c i l i t i e s of the m i d 1960's are even n o w b e i n g p l a n n e d . Personnel T h e rooms, e q u i p m e n t , a n d o r g a n i z a t i o n a l p l a n s for t e c h n i c a l service a n d p r o d u c t d e v e l o p m e n t i n p l a s t i c s are c o m p l e t e l y useless w i t h o u t the people t o use t h e m a n d g i v e t h e m a purpose. T h e t e c h n i c a l service people are considered t o be the greatest single asset i n the t e c h n i c a l service o r g a n i z a t i o n . T h e y are i n the u l t i m a t e sense, the ones w h o w i l l b r i n g t h e c o m p a n y successfully or u n s u c c e s s f u l l y t o t h e c o m p e t i t i v e sixties. T h e personnel of t e c h n i c a l service o r g a n i z a t i o n s possess a c o m b i n a t i o n of t a l e n t s not u s u a l l y f o u n d elsewhere i n a c o m p a n y . A p r i m a r y r e q u i r e m e n t is a n i n t i m a t e u n d e r s t a n d i n g of the i n d u s t r i e s s e r v e d , of the e q u i p m e n t i n v o l v e d , the language s p o k e n w i t h i n each i n d u s t r y , a n d a deep a p p r e c i a t i o n of t h e w a y business is done i n each i n d u s t r y — t h e s e are v i t a l i f a good d e v e l o p m e n t or service j o b is to be done. C o u p l e d w i t h t h i s i n t i m a t e k n o w l e d g e of customer i n d u s t r i e s m u s t be a detailed f a m i l i a r i t y w i t h their own company's capabilities, personalities, a n d methods of d o i n g business. O f t e n t h e p h i l o s o p h y a n d general t e n o r of the customer i n d u s t r y are different f r o m our o w n . A m a j o r t a s k of t e c h n i c a l service is to b r i d g e t h i s difference. T w o to three y e a r s are c o m m o n l y spent i n s p e c i a l i z e d t r a i n i n g p r o g r a m s for t e c h n i c a l service a n d p r o d u c t d e v e l o p m e n t people. T h i s e d u c a t i o n , i n the l i g h t of n e v e r - e n d i n g new p r o d u c t s , new processes, a n d new end uses, o b v i o u s l y CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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never ceases. T h i s e d u c a t i o n costs the p l a s t i c s p r o d u c e r m o n e y . Figure 4 shows w h a t has h a p p e n e d a t D o w t o t e c h n i c a l service t r a i n i n g costs i n C T S a n d P T S over the l a s t 10 y e a r s . T h e a p p r o x i m a t e 1/3 increase i n t r a i n i n g cost per m a n c a n be expected t o c o n t i n u e t o rise a t a b o u t t h e same r a t e , i f n o t m o r e , over the next t e n y e a r s .

Figure 4. Cost per man of training technical personnel in plastics T h e costs per m a n are r e l a t i v e l y u n i m p o r t a n t as c o m p a r e d t o g e t t i n g t h e r i g h t m a n t o t r a i n t o do the best possible j o b . A s t h e p l a s t i c s i n d u s t r y has g r o w n , so has t h e size of t e c h n i c a l service groups. F i g u r e 5 gives some i d e a of personnel e x p a n s i o n i n the D o w C h e m i c a l C o . C o a t i n g s T e c h n i e a i S e r v i c e a n d P l a s t i c s T e c h n i c a l S e r v i c e . T h e figures are not compensated for persons l e a v i n g our c o m p a n y or t r a n s f e r r i n g to other d e p a r t m e n t s . B u t i n the 1 0 - y e a r s p a n , t h a t n u m b e r is l i t t l e more t h a n the average y e a r ' s g a i n .

Figure 5.

Number of new people added per year in plastics and coatings technical services



no


W e w o n d e r i f i t m i g h t not be difficult, i n t h e s i x t i e s , t o h i r e the k i n d of people we w a n t . M a n p o w e r needs m u s t be a n t i c i p a t e d a t least five y e a r s i n advance. A t D o w we h a v e 15 y e a r s of successful experience i n s u c h p r e p l a n n i n g , r e c r u i t m e n t , a n d t r a i n i n g . T h e r e f o r e our h i r i n g p o l i c y t o d a y is i n e x p e c t a t i o n of possible needs i n the m i d sixties. I n a d d i t i o n t o other t r a i t s , t e c h n i c a l service personnel m u s t h a v e a n u n u s u a l l y s t r i n g e n t set of p e r s o n a l a n d p r o f e s s i o n a l ethics. I t is t h r o u g h these people t h a t the p l a s t i c s p r o d u c e r gains the p r o f e s s i o n a l respect a n d p e r s o n a l f a v o r of his customers. T h e s e t e c h n i c a l service m e n , a l o n g w i t h sales people, b u i l d u p i n v a l u a b l e customer l o y a l t i e s . E s t a b l i s h m e n t of such feelings of respect a n d confidence p a y s off w h e n other t h i n g s a r e e q u a l i n a fiercely c o m petitive market. T h i s is not j u s t " b e i n g n i c e " to customers. I t is another i m p e r a t i v e c o n d i t i o n of d o i n g business i n p l a s t i c s . I f p r o d u c t s are t o be designed t o meet c u s tomer needs, t h e p l a s t i c s producer's r e p u t a t i o n m u s t be s u c h t h a t customers h a v e no fear t h a t t h e i r t r a d e secrets w i l l become k n o w n elsewhere, or be used to t h e i r d i s a d v a n t a g e . T h e r e p u t a t i o n of t h e p l a s t i c s p r o d u c e r is often s y n o n y m o u s i n the customer's o p i n i o n w i t h the r e p u t a t i o n of t h e t e c h n i c a l service m a n w i t h w h o m he is i n contact. Conclusion T h u s f a r o u r d i s c u s s i o n has been of t e c h n i c a l service a n d d e v e l o p m e n t o r g a n i z a t i o n s i n being. I n retrospect, t h i s has perhaps p r o v i d e d a p i c t u r e of too m o n o l i t h i c a s t r u c t u r e . I n p l a s t i c s p a r t i c u l a r l y , change is n e a r l y the o n l y constant factor. T h i s means t h a t t e c h n i c a l service a n d p r o d u c t d e v e l o p m e n t o r g a n i z a t i o n s — a s w e l l as the o v e r - a l l c o m p a n y o r g a n i z a t i o n — m u s t h a v e sufficient b u i l t - i n flexibility t o design themselves t o meet the challenges of new p r o d u c t s , new a p p l i c a t i o n techniques, new end uses, even new personalities. F l e x i b i l i t y i n s t r u c t u r e a n d i n a t t i t u d e is necessary t o gear the p l a s t i c s producers to the needs of t h e c o m p e t i t i v e sixties. I n the c o m p e t i t i v e s i x t i e s , the k e y w o r d s t o s u m u p the t e c h n i c a l service o r g a n i z a t i o n s i n p l a s t i c s w i l l be E d u c a t i o n a n d C o m m u n i c a t i o n . T h e y w i l l be the t e c h n i c a l k n o w l e d g e seekers w h o specialize i n p l a s t i c products a n d end uses. T h e y w i l l pass on t h a t k n o w l e d g e to m a n a g e m e n t to assist i n i n t e l l i g e n t d e c i sion-making. T h e y w i l l c o m m u n i c a t e w i t h other i n - c o m p a n y groups t o assure u n i f o r m i t y of c o m p a n y a c t i o n a n d w i t h customers t o h e l p t h e m u n d e r s t a n d a n d m a k e best use of p l a s t i c p r o d u c t s . I n the s i x t i e s , because of the role of t e c h n i c a l service o r g a n i z a t i o n s i n e d u c a t i o n a n d c o m m u n i c a t i o n , the i n t e g r a t e d c o m p a n y effectiveness i n p l a s t i c s d e v e l o p m e n t a n d sales w i l l , we t r u s t , be increased. W e feel t h a t the t e c h n i c a l service a n d p r o d u c t d e v e l o p m e n t o r g a n i z a t i o n s i n p l a s t i c s are one of m a n a g e m e n t ' s most u s e f u l tools t o do the j o b .


CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES

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