chemical marketing in the competitive sixties - ACS Publications

The Marketing of New Chemical Specialties J . M . ROGERS and J . W . SELDEN

Downloaded by NORTH CAROLINA STATE UNIV on December 30, 2017 | http://pubs.acs.org Publication Date: June 17, 1959 | doi: 10.1021/ba-1959-0024.ch019

Minnesota Mining & Manufacturing Co., 900 Bush Ave., Saint Paul, Minn.

The ultimate goal of marketing specialties is to take the product out of the specialty class by creating new large fields of general applications. To meet the competition of the sixties, novelty will not be enough. Companies must provide performance, service, or a better price-to-performance ratio. As more chemical specialties appear in retail products, selling will become more impersonal and depend more upon the advertising of brand names. Salesmen will be subjected to additional pressures for developing new business as well as maintaining present customers. Specialty manufacturers may find it to their advantage to become more specialized in the specialty field. In addition, they must assume an increasing responsibility to protect the public from any hazards of misuse of their products.

W e h a v e chosen to c l a s s i f y c h e m i c a l specialties as p r o d u c t s of a c h e m i c a l p r o c ess h a v i n g uniqueness i n r a w m a t e r i a l , process, o r e n d p r o d u c t , b u t modest present sales v o l u m e . S p e c i a l t i e s c a n be, b y t h i s d e f i n i t i o n , finished p r o d u c t s , i n t e r m e d i a t e s , or r a w m a t e r i a l s . T h i s discussion is confined t o i n d u s t r i a l m a terials a n d c h e m i c a l s t h a t find t h e i r w a y t o r e t a i l shelves. T h e t e r m " s p e c i a l t y c h e m i c a l s " c o u l d be a p p l i e d t o a l m o s t a n y c h e m i c a l at one t i m e i n i t s development. I n l o o k i n g a t m a n y of the large v o l u m e c h e m i c a l s i n general use t o d a y , one's m e m o r y does not h a v e to be t a x e d t o r e m e m b e r w h e n t h e y were specialties. W e c a n a l l r e m e m b e r the e a r l y d a y s of t h e r m o p l a s tics a n d s y n t h e t i c r u b b e r s , w h i c h o n l y a few short y e a r s ago were confined t o r a t h e r expensive a n d t e c h n i c a l l y d e m a n d i n g a p p l i c a t i o n s . W h i l e m a n y people m u s t h a v e foreseen the r a p i d g r o w t h of these t h i n g s , m a n y of the rest of us were s k e p t i c a l a n d d o u b t e d t h a t some of these w o u l d ever r e a c h the m u l t i m i l l i o n - p o u n d sales t h e y e n j o y t o d a y . P e r h a p s we c a n s a y t h e n t h a t the c h e m i c a l s p e c i a l t y is a p o t e n t i a l c a n d i date for a general-purpose m a t e r i a l , d e p e n d i n g on the p r o d u c t ' s c h a r a c t e r i s t i c s a n d the i m a g i n a t i o n , energy, a n d e n t h u s i a s m t h a t are p u t t o w o r k o n c h a n g i n g its status. Fluorocarbon Gases T o i l l u s t r a t e t h i s t h e o r y , we h a v e chosen as o u t s t a n d i n g examples the fluorocarbon gases. D e v e l o p e d i n the e a r l y t h i r t i e s to meet the specific r e q u i r e 136

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


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m e n t for better r e f r i g e r a n t s , t h e i r usage h a s c o n t i n u e d t o grow i n t h i s field, b u t e q u a l l y i m p o r t a n t a r e t h e i r usage a n d g r o w t h i n t h e field of aerosols. T h e first aerosol packages were i n t r o d u c e d i n t h e e a r l y 40's as " b u g b o m b s " for t h e A r m e d S e r v i c e s , b u t t h e i r c o m m e r c i a l g r o w t h w a s d e l a y e d u n t i l s h o r t l y after W o r l d W a r I I i n 1947. I n t h a t y e a r several sources i n d i c a t e d t h a t c o n sumer aerosol u n i t s n u m b e r e d about 5,000,000, a n d t h a t these u n i t s were c o n fined a l m o s t e x c l u s i v e l y t o insecticide packages. B y 1952, five y e a r s l a t e r , 96,000,000 consumer u n i t s were m a r k e t e d a n d t h e l i s t of household p r o d u c t s p a c k a g e d w i t h fluorocarbon propellante h a d e x p a n d e d t o i n c l u d e r o o m d e o d o r a n t s , m o t h s p r a y s , p r o t e c t i v e coatings, a n d p a i n t s . I n 1958 a b o u t 470,000,000 household aerosol u n i t s were p r o d u c e d , m o s t of t h e m c o n t a i n i n g fluorocarbon gas p r o p e l l a n t s . H u n d r e d s of p r o d u c t s are n o w a v a i l a b l e t o the r e t a i l b u y e r p a c k a g e d i n t h i s f o r m ; i n 1958 a t a s p e c i a l event over 100 fillers a n d m a r k e t e r s of aerosol p a c k a g e d p r o d u c t s d i s p l a y e d t h e i r wares. I n t h e m e a n t i m e p l a s t i c m a t e r i a l s h a v i n g u n u s u a l heat a n d c h e m i c a l r e sistance were developed u s i n g the fluorocarbon gases as c h e m i c a l i n t e r m e d i a t e s . M a r k e t s f o r these p l a s t i c s e x p a n d e d usage of fluorocarbon gases a n d l e d t o f u r t h e r d i v e r s i f i c a t i o n of e n d uses a n d p r o d u c t s . S u r e l y t h i s i s a n o u t s t a n d i n g e x a m p l e of a c h e m i c a l s p e c i a l t y w o r k i n g i t s w a y t o a h i g h v o l u m e , g e n e r a l purpose m a t e r i a l b y a p p l i c a t i o n n o t o n l y i n n e w end uses f o r t h e o r i g i n a l c o m p o u n d itself, b u t also as a b u i l d i n g b l o c k t o m a k e other u n u s u a l m a t e r i a l s . Glass Fibers A s another e x a m p l e of a s p e c i a l p r o d u c t m a k i n g t h e t r a n s i t i o n f r o m a s p e c i a l t y t o a general-purpose m a t e r i a l , glass fibers f o l l o w t h e general p a t t e r n . I n a l i t t l e m o r e t h a n 2 0 y e a r s o u t of t h e p i l o t p l a n t , t h i s p r o d u c t , developed o r i g i n a l l y as a n i n s u l a t i o n m a t e r i a l , has f o u n d m a r k e t s i n w o v e n textiles, m o l d e d p a r t s , a u t o m o b i l e bodies, a i r c r a f t assemblies, t r a n s m i s s i o n p i p e , boats, a n d m a n y other e n d uses. F r o m p r a c t i c a l l y n o t h i n g i n 1938 t o a s u b s t a n t i a l $200,000,000 business i s p r e t t y f a i r progress. P e r h a p s glass fiber s h o u l d n o t be classed a s a c h e m i c a l m a t e r i a l , b u t i t does i l l u s t r a t e t h e g r o w t h of a s p e c i a l t y i n t o t h e p o s i t i o n of a b a s i c m a t e r i a l . T h e r e a r e m a n y l a b o r a t o r y curiosities t o d a y , w h i c h w i l l find t h e i r w a y i n t o the s p e c i a l t y c h e m i c a l field, a n d thence t o t h e h i g h v o l u m e , general-purpose category. U n d e r t h e d e f i n i t i o n t h a t w e h a v e chosen f o r s p e c i a l t y c h e m i c a l s , w e h a v e increased t h e c o m p l e x i t y of o u r subject t r e m e n d o u s l y , f o r n o w we s h o u l d c o v e r t h e i n t r o d u c t i o n of a l l n e w c h e m i c a l m a t e r i a l s t o t h e m a r k e t . Trends in Marketing D u r i n g t h e past 20 y e a r s , t h e c h e m i c a l i n d u s t r y h a s been one of t h e f a v o r i t e g r o w t h i n d u s t r i e s of the i n v e s t i n g p u b l i c . I t has come i n t o i t s o w n as one of the most i m p o r t a n t s u p p l i e r s t o i n d u s t r y , t o t h e p u b l i c , a n d t o t h e n a t i o n a l defense e s t a b l i s h m e n t b y b r i n g i n g t o i t s customers hosts of n e w m a t e r i a l s t o i m p r o v e p e r f o r m a n c e a n d reduce costs. A s such, t h e c h e m i c a l i n d u s t r y h a s a t tracted m a n y new applicants for membership. W h i l e t h e field of c h e m i s t r y i s b y n o means exhausted as a source of n e w p r o d u c t s , each new e n t r a n t i n t o t h e field creates a measure of c o m p e t i t i o n . E v e r y o n e has h i s o w n ideas o n h o w t o d e a l w i t h h i s c o m p e t i t i o n . T h e r e are m a n y n e w companies e n t e r i n g t h e c h e m i c a l i n d u s t r y . P r o b a b l y CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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the most l o g i c a l s t a r t i n g place for a new c o m p a n y desirous of e n t e r i n g the c h e m i c a l i n d u s t r y is a single c h e m i c a l s p e c i a l t y . H e r e i t is possible t o s t a r t business o n a modest scale, concentrate sales, t e c h n i c a l , a n d p r o d u c t i o n effort on a single p r o d u c t , or a s m a l l f a m i l y of p r o d u c t s , a n d grow as the d e m a n d grows a t m i n i m u m risk. I f t h i s is the l o g i c a l s t a r t i n g p l a c e for new companies i n t h e c h e m i c a l field, a n d a p r e d o m i n a n t n u m b e r of t h e new c h e m i c a l s p r o d u c e d b y a l r e a d y e s t a b l i s h e d c h e m i c a l c o m p a n i e s s t a r t t h e i r c o m m e r c i a l life as specialties, we s h o u l d expect t h i s area of t h e c h e m i c a l business t o f u r n i s h p r e t t y l i v e l y c o m p e t i t i o n i n the 1960's. L i k e a l l other businesses, there is a l w a y s r o o m at t h e t o p for a better p r o d u c t , m e r c h a n d i s e d better, a n d used more w i d e l y . F o r t u n a t e l y , i t is v e r y s e l d o m t h a t a n e x i s t i n g p r o d u c t is c o m p l e t e l y r e p l a c e d b y a n e w p r o d u c t , a n d i n v a r i a b l y t h e t o t a l m a r k e t is e x p a n d e d b y t h i s a c t i o n . I f , however, we are a n x i o u s t o increase o u r p a r t i c i p a t i o n i n the t o t a l m a r k e t , we m u s t find w a y s to cope w i t h the i n c r e a s i n g n u m b e r of p r o d u c t s t h a t are b e i n g i n t r o d u c e d b y a n i n c r e a s i n g n u m b e r of c o m p a n i e s . W e do not l i k e t o t h i n k of ourselves as p r i c e cutters, b u t f a c e d w i t h a c o m p e t i t i v e s i t u a t i o n w e m u s t f u r n i s h our customers w i t h bigger " b a r g a i n s . " W e m u s t p r o v i d e m o r e t o our customers t h r o u g h better p r o d u c t s , m o r e i n t e c h n i c a l service, m o r e dependable d e l i v e r i e s , a better p r i c e - p e r f o r m a n c e r a t i o , or some other m e a s u r a b l e a d v a n t a g e t o enable us t o m a i n t a i n our p o s i t i o n w i t h our customers. R e c e n t l y a d i r e c t o r of purchases t o l d us t h a t h i s s u p p l i e r s h a d k e p t t e l l i n g h i m t h a t t h e i r prices i n c l u d e d a s i z a b l e s u m for new p r o d u c t research. A search of the records i n s e v e r a l cases f a i l e d to show a n y t h i n g u n u s u a l i n t h e w a y of c o n t r i b u t i o n s f r o m new p r o d u c t s . S u r e l y , a l l p u r c h a s i n g people are g o i n g t o become m o r e a l e r t t o t h i s t y p e of t h i n g , a n d we as sellers m u s t do a better j o b of k e e p i n g our customers i n f o r m e d of our a c t i v i t i e s i n t h e i r b e h a l f , so t h a t t h e " b a r g a i n s " w e are g i v i n g i n a d d e d service are recognized. I n a n i n c r e a s i n g l y c o m p e t i t i v e general m a r k e t , uniqueness t a k e s o n added significance. W h i l e t h e w o r d " n e w " is enough t o arouse c u r i o s i t y o n the p a r t of a customer, m o r e a n d m o r e new t h i n g s are c o m i n g to h i s a t t e n t i o n , so t h a t we c a n n o t depend o n newness a l o n e ; w e m u s t s t r i v e t o be u n i q u e i n o u r p r o d u c t s . P a t e n t s w i l l s u r e l y t a k e o n i n c r e a s e d i m p o r t a n c e i n the 1960's. T h e s e at least a l l o w the p a t e n t owner t o recoup the expenses he i n c u r r e d i n d e v e l o p i n g h i s p a r t i c u l a r new p r o d u c t w i t h o u t b a t t l i n g a n i d e n t i c a l c o m p e t i t o r ' s p r o d u c t . E v e n t h e n t h e p a t e n t e d p r o d u c t m u s t offer t h e a d v a n t a g e s of better p e r f o r m ance a n d economies over other p r o d u c t s a l r e a d y a v a i l a b l e . H o l d e r s of p a t e n t s h a v e often been accused of p r a c t i c e s h a r m f u l t o the general p u b l i c . W e believe t h a t these accusations are u n j u s t , for even i f the p a t e n t owner w i s h e d t o t a k e u n f a i r a d v a n t a g e of a l e g a l m o n o p o l y , the p r o d u c t covered m u s t s t i l l show a d vantages t o the consumer c o m m e n s u r a t e w i t h t h e prices c h a r g e d . T h e p r o d u c t m u s t also f a v o r a b l y c o m p a r e w i t h other c h e m i c a l p r o d u c t s w h i c h c a n be s u b s t i t u t e d r e a d i l y a n d are a v a i l a b l e f r o m a l t e r n a t e sources. C o m p e t i t i o n , even though i t be i n d i r e c t , is t h e best s e l f - p o l i c i n g s y s t e m i n t h i s s i t u a t i o n a n d w i l l ensure t h a t no one of us v i o l a t e s t h e ethics of good h e a l t h y business p r a c t i c e s . A n o t h e r t r e n d c h a l l e n g i n g the s p e c i a l t y c h e m i c a l m a n u f a c t u r e r n o w , a n d w h i c h w i l l become m o r e p r o n o u n c e d i n the 1960's, is the need for m u l t i p l e s e l l i n g — i . e . , t h e need t o sell h i s p r o d u c t not o n l y to the d i r e c t b u y e r , b u t often t i m e s t o the b u y e r ' s customer or even the b u y e r ' s customer's customer. T h i s is, of course, t r u e o n l y w h e n our c h e m i c a l becomes a recognizable or i d e n t i f i a b l e i n g r e d i e n t i n a f o r m u l a t e d or f a b r i c a t e d p r o d u c t a n d i m p a r t s some u n u s u a l CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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property h a v i n g a value. Unless this particular formulator or fabricator has the e x c l u s i v e use of o u r p r o d u c t b y agreement o r t h r o u g h use p a t e n t s , other f o r m u l a t o r s o r f a b r i c a t o r s c a n be s o l d b y c r e a t i n g a d e m a n d f o r o u r specific p r o d u c t w i t h t h e u l t i m a t e consumer, w h o w i l l , i n t u r n , d e m a n d t h e use of o u r p r o d u c t f r o m his v a r i o u s s u p p l i e r s . B y d o i n g t h i s , t h e v a l u e of a t r a d e - m a r k o r b r a n d n a m e i s enhanced, f u r t h e r f o r t i f y i n g a p o s i t i o n i n t h e m a r k e t . T h e need for m u l t i p l e s e l l i n g i s here n o w a n d i t w i l l become greater i n t h e 1960's.


Advertising and Merchandising I n m u l t i p l e s e l l i n g , a d v e r t i s i n g a n d m e r c h a n d i s i n g become i n c r e a s i n g l y i m p o r t a n t tools. O b v i o u s l y , i f w e i n t e n d t o sell o u r customers' customers, as w e l l as d i r e c t customers, we a r e going t o h a v e t o r e a c h a m u c h l a r g e r audience w i t h our sales s t o r y . A s t h e n u m b e r of p o t e n t i a l customers increases, t h e chances of r e a c h i n g e v e r y customer p e r s o n a l l y d i m i n i s h e s , a n d dependence o n mass i m p a c t is increased. I t i s i m p o r t a n t t o exercise extreme c a u t i o n i n t h e p r e p a r a t i o n of the a d v e r t i s i n g c a m p a i g n , so t h a t t h e consumer w i l l n o t be m i s l e d , e i t h e r b y inference o r b y t h e a c t u a l content of t h e c o p y , t o expect more f r o m t h e p r o d u c t t h a n i t c a n offer, even under t h e most i d e a l circumstances. E n t h u s i a s m o n t h e p a r t of t h e m a n u f a c t u r e r i s t h e d r i v i n g force b e h i n d a successful p r o d u c t , b u t t h i s e n t h u s i a s m s h o u l d be t e m p e r e d w i t h c a u t i o n . T h e m a n u f a c t u r e r ' s e n t h u s i a s m a n d c l a i m s f o r his p r o d u c t seem t o be a u g m e n t e d i n p r o p o r t i o n t o t h e n u m b e r of subsequent h a n d l e r s of h i s p r o d u c t . I f he sells to a f o r m u l a t o r w h o sells t o a j o b b e r , w h o sells t o a dealer, w h o sells t o a c u s t o m e r , each one seems t o w a n t t o a d d a l i t t l e m o r e g l a m o u r a n d , i n c i d e n t a l l y , a few more p e r f o r m a n c e c l a i m s . O f t e n t i m e s b y t h e t i m e t h e p r o d u c t reaches the consumer, t h e c l a i m s m a d e f o r t h e p r o d u c t i n d i c a t e t h a t t h e m i l l e n n i u m h a s a r r i v e d , a n d t h e u l t i m a t e m i r a c l e has been effected. A s m a n u f a c t u r e r s , w e h a v e the o b l i g a t i o n t o the p u b l i c , t o t h e i n d u s t r y , a n d to ourselves, t o use o u r best efforts t o p r e v e n t t h i s t y p e of exaggeration. I f t h i s p r a c t i c e i s a l l o w e d t o r u n r a m p a n t , t h e consumer, a p r e t t y wise f e l l o w , w i l l soon believe n o t h i n g we t e l l h i m a n d w i l l become so suspicious t h a t he w i l l resist a n y t h i n g new a n d refuse t o p a y a n y a t t e n t i o n t o a n y of o u r s t o r y , t r u e o r otherwise. W e d o n o t u n d e r e s t i m a t e t h e tremendous influence of a d v e r t i s i n g o n t h e b u y i n g p u b l i c , b u t recognize t h a t a n y t h i n g h a v i n g t h i s m u c h influence m u s t also be c o n t r o l l e d or c o n t a i n e d , so t h a t w e w i l l n o t be d e s t r o y e d b y o u r p r o m i s c u o u s abuse of i t s power. Upgrading of Selling T o d a y ' s desire f o r g r o w t h dictates t h a t t h e l i n e salesman be subjected t o a d d i t i o n a l pressures t o develop new business as w e l l as t o m a i n t a i n h i s p o s i t i o n w i t h present customers. I f s e l l i n g costs a r e t o be k e p t w i t h i n bounds, t h e salesm a n w i l l be c a l l e d o n t o shoulder more a n d more of t h e t o t a l s e l l i n g effort. H e w i l l h a v e t o be e q u i p p e d w i t h more p r o d u c t k n o w l e d g e , c o n c e r n i n g h i s o w n as w e l l as h i s c o m p e t i t o r s ' p r o d u c t s , he m u s t k n o w h i s c o m p a n y ' s policies better so he c a n i n t e r p r e t t h e m p r o m p t l y a n d a c c u r a t e l y t o his customers. B e c a u s e he is the eyes a n d ears of his c o m p a n y i n t h e field, he m u s t be able t o get p e r t i n e n t m a r k e t i n f o r m a t i o n t o h e a d q u a r t e r s , so t h a t a c t i o n c a n be t a k e n p r o m p t l y . T h e profession of s e l l i n g is b e i n g g r a d u a l l y u p g r a d e d t h r o u g h better t r a i n i n g methods, better m a t e r i a l , a n d r e c o g n i t i o n b y t e c h n i c a l personnel of t h e


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necessity for the s e l l i n g f u n c t i o n . A n y era of i n c r e a s i n g c o m p e t i t i o n brings about t h i s t r e n d . A r e a l l y good s a l e s m a n , one w h o k n o w s his p r o d u c t a n d his customers a n d how to p u t the t w o together o n a n order b l a n k , is s t i l l too scarce. T h a n k goodness there are i n c r e a s i n g n u m b e r s of t e c h n i c a l l y t r a i n e d people e n t e r i n g s e l l i n g as a profession, b r i n g i n g w i t h t h e m the necessary t e c h n i c a l b a c k g r o u n d for g i v i n g t h e i r present a n d f u t u r e customers m a x i m u m service, a n d a p p l y i n g good l o g i c a l r e a s o n i n g t o t h e i r d a y - t o - d a y w o r k . I n the 1960's, t h i s t e c h n i c a l f o u n d a t i o n w i l l become more a n d more a n essential p a r t of the c h e m i c a l s p e c i a l t y salesman's k i t of tools. I f o u r p r e m i s e of g e n e r a l l y increased c o m p e t i t i o n is t r u e , i t behooves the c h e m i c a l s p e c i a l t y m a n u f a c t u r e r t o become more selective i n his choice of horses t o r i d e . I f he has to i n v e s t more i n t e s t i n g a n d a p p l i c a t i o n w o r k , i f he is going t o s u p p l y m o r e a n d better t e c h n i c a l service, i f he is going t o have to engage i n m u l t i p l e s e l l i n g of his p r o d u c t s , a n d i f he does n o t h a v e l i m i t l e s s f u n d s , he w i l l h a v e t o concentrate his efforts on a few p r o d u c t s , r a t h e r t h a n r u s h b l i n d l y i n t o m a n y fields a t once. T h i s c o n c e n t r a t i o n w i l l r e s u l t i n his u p g r a d ing a l i m i t e d p r o d u c t l i n e i n q u a l i t y , u n i f o r m i t y , p r o d u c t i v e efficiency, a n d s e l l i n g q u a l i t y . A s k n o w l e d g e a n d experience become greater a n d greater i n a r e l a t i v e l y n a r r o w field of p r o d u c t s , his p o s i t i o n i n t h i s l i m i t e d p r o d u c t field becomes better f o r t i f i e d a n d entrenched, a n d a new e n t r a n t w i s h i n g t o a t t a c k the i d e n t i c a l p r o d u c t l i n e w i l l find the j o b difficult a n d c o s t l y . T h i s is the most effective c o u n t e r - i r r i t a n t t o c o m p e t i t i o n we k n o w . T h e c h e m i c a l m a n u f a c t u r e r interested i n specialties is g o i n g t o h a v e t o s u p p l y his customers w i t h more a n d more service. I f he is a i m i n g a t p u l l i n g h i m s e l f out of t h e s p e c i a l t y field b y his boot s t r a p s , he is g o i n g t o h a v e t o be aggressive i n h i s t e c h n i c a l , p r o d u c t i o n , a n d m a r k e t i n g efforts. T h i s seems t o i n d i c a t e t h a t his i n v e s t m e n t i n p r o d u c t a n d process development a n d i n m a r k e t research a n d d e v e l o p m e n t w i l l be increased. I t is o u r belief t h a t the p r e l i m i n a r y costs of i n t r o d u c i n g new p r o d u c t s are g o i n g t o rise, a n d t h a t the u l t i m a t e l y successful companies w i l l be those w h i c h c a n successfully a p p l y t h e i r i n g e n u i t y a n d d r i v e t o k e e p i n g these costs f r o m b e c o m i n g so h i g h as t o m a k e i t u n a t t r a c t i v e i f n o t i m p o s s i b l e t o l a u n c h new p r o d u c t s . T h e c h e m i c a l i n d u s t r y is a c c u s t o m e d t o t a k i n g r i s k s i n b u i l d i n g p r o d u c t i o n f a c i l i t i e s . T h e s e r i s k s s h o u l d n o t increase a p p r e c i a b l y , i f the p r e l i m i n a r y exp l o r a t i o n i n d e v e l o p m e n t a n d m a r k e t i n g is t h o r o u g h ; i n fact, the chances of success s h o u l d be i m p r o v e d . L e t us n o t forget, h o w e v e r , t h a t i t is a l w a y s more difficult t o j u s t i f y t o ourselves t h e e x p e n d i t u r e of m o n e y for i n t a n g i b l e t h i n g s l i k e research a n d development, i n either sales or t e c h n i c a l areas, t h a n i t is to j u s t i f y the same a m o u n t of m o n e y i n b r i c k , m o r t a r , a n d m a c h i n e r y . T h e r e w i l l be, t h e n , a n i n c r e a s i n g a m o u n t of courage r e q u i r e d on the p a r t of c h e m i c a l m a n a g e m e n t , i f f u t u r e new p r o d u c t s are to be l a u n c h e d w i t h a f a i r chance of success. Precautionary Labeling T h e r e is a change t a k i n g p l a c e i n the u l t i m a t e m a r k e t for c h e m i c a l s p e c i a l ties w h i c h we hope w i l l continue. M o r e c h e m i c a l m a t e r i a l s are b e i n g m a d e a v a i l a b l e for h o m e use on the s u p e r m a r k e t a n d d r u g store shelves. T h i s mass m a r k e t i n g of c h e m i c a l s t o the general p u b l i c is p l a c i n g another r e s p o n s i b i l i t y on the s p e c i a l t y c h e m i c a l m a n u f a c t u r e r . H e n o w m u s t u n d e r t a k e t o p r e v e n t misuse of his m a t e r i a l s w h i c h m i g h t l e a d t o p e r s o n a l i n j u r i e s or consequential



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damages t o customer's p r o p e r t y . W h i l e w e i n t h e c h e m i c a l i n d u s t r y d o n o t consider t h e h a n d l i n g of c h e m i c a l s dangerous (witness t h e excellent s a f e t y record of t h e c h e m i c a l i n d u s t r y ) , w e m u s t r e m e m b e r t h a t t h e p u b l i c does n o t have t h e b a c k g r o u n d of k n o w l e d g e , n o r t h e p h y s i c a l means t h a t w e h a v e t o protect himself. T h e r e f o r e , w e a r e o b l i g a t e d t o p r o t e c t h i m as c o m p l e t e l y as we c a n . C h e m i c a l specialties sold t o t h e p u b l i c s h o u l d be p a c k a g e d a n d labeled i n such a m a n n e r t h a t i t becomes p r a c t i c a l l y impossible t o misuse t h e m . S i m p l y w o r d e d i n s t r u c t i o n s f o r use a n d complete i n f o r m a t i o n o n h a z a r d s a n d antidotes are essential. T h e c h e m i c a l m a n u f a c t u r e r ' s r e s p o n s i b i l i t y goes b e y o n d t h e m i n i m u m r e q u i r e m e n t s o f v a r i o u s g o v e r n m e n t agencies. E v e n t h o u g h t h e basic causes of household accidents a r e often m i s t a k e n l y a t t r i b u t e d t o a c h e m i c a l i n t h e d e s c r i p t i o n of accidents, t h e news of accidents a t t r i b u t a b l e either d i r e c t l y o r i n d i r e c t l y t o t h e use of c h e m i c a l s t r a v e l s l i k e w i l d f i r e , a n d c a n q u i c k l y affect customer acceptance. T h e s e i l l effects a r e f a r - r e a c h i n g , i n t h a t t h e y m a y affect a large segment of t h e c h e m i c a l i n d u s t r y as w e l l as t h e i n d i v i d u a l m a n u f a c t u r e r . F r o m t h e s t a n d p o i n t of s e l f - p r e s e r v a t i o n o n l y , p r e c a u t i o n a r y l a b e l i n g h a s s a v e d m a n y a c o m p a n y f r o m p a y i n g e x t r e m e l y expensive a n d u n j u s t i f i e d c l a i m s m a d e b y i n d i v i d u a l s f o r p e r s o n a l i n j u r y d u e t o t h a t i n d i v i d u a l ' s carelessness. Conclusions W h a t w e h a v e s a i d here i s c e r t a i n l y n o t o r i g i n a l , n o r is i t specific. T h e variations i n products a n d markets i n the chemical specialty industry are too w i d e t o m a k e a n y general a l l - i n c l u s i v e rules o r even suggestions. T h e fact t h a t a great d e a l of t h e a l l - p r o d u c t m a r k e t i n g i n t h e c h e m i c a l i n d u s t r y is of a s p e c i a l n a t u r e m a k e s i t a n e x t r e m e l y a c t i v e field a n d one i n w h i c h i n c r e a s i n g c o m p e t i t i o n c a n be expected, b r i n g i n g w i t h i t t h e need f o r better service, better p r o d u c t s , a n d better m a r k e t i n g methods. S p e c i a l t i e s p u t t h e c h e m i c a l i n d u s t r y i n i n t i m a t e c o n t a c t w i t h a l m o s t e v e r y o t h e r b r a n c h of i n d u s t r y , f o r there are few factories, homes, o r stores where c h e m i c a l s , a n d p a r t i c u l a r l y specialties, a r e n o t used. T h i s w i d e c o n t a c t i s also p a r t i a l l y responsible f o r t h e generation of f u r t h e r n e w p r o d u c t ideas, a n d n e w uses f o r present p r o d u c t s . G e n e r a l usage carries w i t h i t definite r e s p o n s i b i l i t i e s , a n d those companies w h i c h shoulder t h e m a n d p r o v i d e good p r o d u c t s a n d service t o t h e i r customers w i l l be able t o m a k e i n t e r e s t i n g profits a n d p r o m o t e t h e g r o w t h of t h e c h e m i c a l i n d u s t r y as a w h o l e . T h e c h e m i c a l s p e c i a l t y business, t h e n , c a n be f a s c i n a t i n g a n d p r o f i t a b l e , a n d c a n m a k e a s i g n i f i c a n t c o n t r i b u t i o n t o p r o s p e r i t y a n d progress.


chemical marketing in the competitive sixties - ACS Publications

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