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Market Research to Provide Guidance for Marketing in the Competitive Sixties W . G . KINSINGER

Downloaded by SUFFOLK UNIV on January 20, 2018 | http://pubs.acs.org Publication Date: June 17, 1959 | doi: 10.1021/ba-1959-0024.ch011

Hercules Powder C o . , Wilmington, Del.

Only recently has chemical market research been recognized and organized as a corporate function that differs from sales, and is worthy of full-time concern of separate individuals. The tools of mar­ ket researchers—statistical information from pub­ lished literature and from field interviews—will have to be sharpened to meet the challenge of the competitive sixties. Market research people must assume the initiative in improving published sources of information. They must also improve their skills in forecasting, but perhaps most important, they must sell and interpret their results to management. Market research is considered from the standpoint of marketing three types of products: long-estab­ lished products, products new to the company but old to industry, and totally new products created by research.

Ν e a r l y a l l a u t h o r s w h o w r i t e a b o u t some aspect of c h e m i c a l m a r k e t research begin w i t h a d e f i n i t i o n of these t e r m s . U n f o r t u n a t e l y , these definitions v a r y n o t o n l y i n t h e p a r t i c u l a r words w h i c h are used, b u t t h e y are f r e q u e n t l y f o u n d on close e x a m i n a t i o n to be b a s i c a l l y different i n m e a n i n g . I t is not m y p u r ­ pose here t o a d d another set of words or to s i t i n j u d g m e n t on p r e v i o u s d e f i n i ­ t i o n s . I a m m o r e concerned t o d a y w i t h w h a t m a r k e t research c a n be i n the f u t u r e t h a n w h a t i t has been i n the past. T h e i n a b i l i t y of p r o f e s s i o n a l experts t o agree on t h e l i m i t s a n d purposes of the f u n c t i o n is to me b u t a reflection of its newness i n t h e corporate o r g a n i z a t i o n . I f b y m a r k e t research we m e a n s i m p l y a d i r e c t e d s e a r c h f o r m a r k e t s of p r o d u c t s or services, such effort is as o l d as h i s t o r y a n d E v e a n d her a p p l e represent t h e first, a n d p e r h a p s s i m p l e s t , case h i s t o r y . I n t h i s s a m e sense, c h e m i c a l m a r k e t research has been g o i n g o n as l o n g as c h e m i c a l p r o d u c t s h a v e been s o l d . C e r t a i n l y no one w o u l d d a r e t o c l a i m t h a t the e a r l y pioneers of t h e A m e r i c a n c h e m i c a l i n d u s t r y were u n c o n c e r n e d w i t h t h e m a r k e t s for t h e i r p r o d u c t s , were n o t eager i n t h e i r search for those m a r k e t s , a n d were not, therefore, d o i n g m a r k e t research i n t h i s sense. 76

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

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W h a t , t h e n , is new a b o u t c h e m i c a l m a r k e t research? T h e newness lies i n t h e f a c t t h a t i t has o n l y r e c e n t l y been recognized a n d o r g a n i z e d as a corporate f u n c t i o n different f r o m sales, a n d w o r t h y of t h e f u l l - t i m e c o n c e r n of separate i n d i v i d u a l s or even separate d e p a r t m e n t s . T h e d e t a i l e d a n d o b j e c t i v e studies o f m a r k e t s m a d e b y these groups c a n n o w m o r e t r u l y be t e r m e d m a r k e t researeh i n s t e a d of m a r k e t search. O r g a n i z e d m a r k e t research groups i n the c h e m i c a l i n d u s t r y are p r o b a b l y less t h a n 25 y e a r s o l d . I t is difficult to set a n exact date w h e n t h e first s e p a r a t e m a r k e t research d i v i s i o n w a s f o r m e d , b u t the C h e m i c a l M a r k e t R e s e a r c h A s s o c i a t i o n , p r o b a b l y the first o r g a n i z a t i o n of p r o f e s s i o n a l m a r k e t r e searchers i n the c h e m i c a l i n d u s t r y , h e l d its first m e e t i n g as r e c e n t l y as J u n e 8, 1945. T h e i n i t i a l m e m b e r s h i p w a s 78 people. F r o m t h i s , w e m a y i n f e r t h a t few people i n t h e c h e m i c a l i n d u s t r y concerned themselves e x c l u s i v e l y w i t h c h e m i c a l m a r k e t research i n the 1930's. A s s u m i n g , t h e n , a 2 5 - y e a r h i s t o r y of o r g a n i z e d c h e m i c a l m a r k e t r e s e a r c h , we m a y a s k , " W h e r e are w e n o w ? W h a t tools a n d s k i l l s h a v e w e a c q u i r e d to c a r r y i n t o the c o m p e t i t i v e 1960's? W h a t challenges exist t o i m p r o v e these s k i l l s t o assist i n g u i d i n g the m a r k e t i n g effort of t h e f u t u r e ? " Improving the Skills of Market Research T h e m a r k e t research profession, a n d i t is n o w a profession, has g r o w n r a p i d l y since W o r l d W a r I I . F o r e x a m p l e , t h e C h e m i c a l M a r k e t R e s e a r c h A s s o c i a t i o n has increased f r o m a n i n i t i a l m e m b e r s h i p of 78 people t o a c u r r e n t m e m b e r s h i p of n e a r l y 600, w h i c h come f r o m 225 A m e r i c a n a n d C a n a d i a n c o r p o r a t i o n s . T h e f o r m a t i o n of the C h e m i c a l M a r k e t i n g a n d E c o n o m i c s D i v i s i o n of t h e A m e r i c a n C h e m i c a l S o c i e t y a n d i t s g r o w t h i n m e m b e r s h i p are f u r t h e r evidence of a m o u n t i n g interest. C o u r s e s i n c h e m i c a l m a r k e t research are n o w i n c l u d e d i n t h e c u r r i c u l a of s e v e r a l m a j o r u n i v e r s i t i e s . S y m p o s i a o n some aspect of m a r k e t research are h e l d f r e q u e n t l y b y m o s t of the p r o f e s s i o n a l a n d t e c h n i c a l societies associated \frith the c h e m i c a l i n d u s t r y . A l l the m a j o r c o n s u l t i n g houses t o the c h e m i c a l i n d u s t r y offer excellent m a r k e t research services a n d t h e n u m b e r of i n d i v i d u a l c o n s u l t i n g c o m p a n i e s engaged p r i m a r i l y i n m a r k e t research a t t i m e s seems countless. D u r i n g t h e l a s t decade, the a r t of m a r k e t research has been g r e a t l y a d v a n c e d . T o d a y ' s c h e m i c a l m a r k e t researchers are h i g h l y s k i l l e d i n p a i n t i n g the m a r k e t p i c t u r e . T h e i r tools, w h i c h consist of s t a t i s t i c a l i n f o r m a t i o n f r o m p u b l i s h e d l i t e r a t u r e a n d f r o m field i n t e r v i e w s , h a v e been adequate, b u t these tools m u s t be sharpened t o meet the challenge of t h e c o m p e t i t i v e sixties. I n t h i s c o m i n g decade we s h a l l need more t h a n a p a i n t e d p i c t u r e of the m a r k e t ; we s h a l l need n o less t h a n a t h r e e - d i m e n s i o n a l p h o t o g r a p h a n d t h a t p r o b a b l y i n c o l o r ! I n a d d i t i o n , w e m u s t l e a r n t o i n t e r p r e t t h i s p i c t u r e t o those w h o assemble the w h o l e j i g s a w p l a n s of c o r p o r a t e a c t i o n . L e t us consider where i m p r o v e m e n t s m a y be m a d e . P u b l i s h e d M a r k e t I n f o r m a t i o n . C h e m i c a l m a r k e t research people m u s t assume the i n i t i a t i v e i n i m p r o v i n g o u r p u b l i s h e d sources of m a r k e t i n f o r m a tion. W e s h o u l d , for e x a m p l e , cooperate w i t h those d e p a r t m e n t s of t h e F e d e r a l G o v e r n m e n t o n whose p u b l i s h e d s t a t i s t i c s w e l e a n so h e a v i l y . T h e t a s k forces u n d e r t h e sponsorship of the A d v i s o r y C o u n c i l o n F e d e r a l R e p o r t s are n o w c o o p e r a t i n g w i t h the U . S. T a r i f f C o m m i s s i o n t o a n a l y z e a n d CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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r e c o m m e n d i m p r o v e m e n t s i n t h e T a r i f f C o m m i s s i o n reports o n o r g a n i c c h e m i cals. I n d o i n g so, t h e y d e m o n s t r a t e such c o o p e r a t i o n . T h e c h e m i c a l m a r k e t researcher i n i n d u s t r y s h o u l d begin t h i s cooperation b y t a k i n g i t u p o n h i m self t o d e t e r m i n e t h a t his o w n c o m p a n y ' s reports t o T a r i f f are p r o m p t l y a n d adequately made. H e , of a l l people i n t h e c o m p a n y , best r e a l i z e s t h e i n d u s t r i a l v a l u e of T a r i f f s t a t i s t i c s , a n d therefore, s h o u l d be c e r t a i n t h a t h i s o w n c o m p a n y ' s reports are correct. T h e s a m e , of course, a p p l i e s t o a l l reports to the g o v e r n m e n t , w h i c h e v e n t u a l l y a p p e a r i n p u b l i s h e d f o r m a n d are used b y m a r k e t research people. S t a t i s t i c a l Information. O u r t e c h n i c a l j o u r n a l s a n d t r a d e papers are p u b l i s h i n g a n i n c r e a s i n g l y large a m o u n t of s t a t i s t i c a l i n f o r m a t i o n o n c h e m i c a l m a r k e t s . I n t h i s a r e a , i t seems t o me t h a t the r e s p o n s i b i l i t y of the i n d u s t r i a l m a r k e t research m a n is t w o f o l d . F i r s t , w h e n e v e r t h e l i m i t a t i o n s of c o m p a n y p o l i c y or confidence p e r m i t , the m a r k e t researcher s h o u l d p u b l i s h t h e results of h i s s t u d i e s . H e s h o u l d do so for e x a c t l y the same reasons t h a t our t e c h n i c a l brothers p u b l i s h the results of l a b o r a t o r y s t u d i e s — t o a d d t o t h e f u n d of h u m a n k n o w l e d g e a n d to p r o v i d e a basis for l a t e r w o r k e r s i n t h e same subject. H i s second r e s p o n s i b i l i t y is to correct errors w h i c h o c c a s i o n a l l y a p p e a r i n o u r u s u a l l y a c c u r a t e c h e m i c a l press. C o o p e r a t i o n w i t h reporters a n d letters t o the e d i t o r c a n d o m u c h t o p r e v e n t or correct those errors. T h e press, i n t u r n , s h o u l d m a k e e v e r y effort t o d o c u m e n t the sources of s t a t i s t i c s w h i c h t h e y p u b l i s h o n c h e m i c a l m a r k e t s . H o w u n f o r t u n a t e i t is t h a t m a n y t i m e s these n u m b e r s , l i f t e d f r o m c o n t e x t , assume a n a u t h o r i t y f a r b e y o n d t h e i r true value. Forecasting. A n o t h e r a r e a for i m p r o v i n g t h e s k i l l s i n m a r k e t research lies i n t h e r e a l m of forecasting. O n e m a y s a f e l y s a y t h a t the m o d e r n c h e m i c a l m a r k e t researcher has become expert i n d e s c r i b i n g the m a r k e t i n the p a s t a n d a t the present, b u t his tools for p r o j e c t i n g i n t o t h e f u t u r e are w o e f u l l y w e a k . A n d y e t i t is t h e f u t u r e p i c t u r e w h i c h is m o s t needed b y those w h o use m a r k e t research results. T h e t i t l e of " c r y s t a l b a l l g a z e r " is n o t w i t h o u t significance. T h i s is a m a j o r o p p o r t u n i t y f o r research i n m a r k e t research techniques. W e m u s t w a t c h closely the forecasting methods e v e n n o w b e i n g developed b y economists, b y m a t h e m a t i c i a n s , a n d b y students of t h e h u m a n society. W e m u s t be q u i c k t o a d o p t these new methods w h e n e v e r possible. Handling Results. F i n a l l y , a n d p e r h a p s m o s t i m p o r t a n t l y , the m a r k e t researcher m u s t s t i l l sell a n d i n t e r p r e t his results t o m a n a g e m e n t . M u c h c o u l d be w r i t t e n o n t h i s , b u t I w o u l d offer o n l y t h i s one t h o u g h t w h i c h m a y be new t o some. G e n e r a l l y , the m a r k e t research m a n p r o v i d e s i n f o r m a t i o n o n m a r k e t s t o someone else i n t h e c o m p a n y w h o , i n t u r n , uses t h a t i n f o r m a t i o n t o m a k e a decision. T h e m a r k e t researcher m a y or m a y n o t be p a r t of t h e d e c i s i o n - m a k i n g group. R e g a r d l e s s of his e v e n t u a l role i n t h a t process, I believe t h a t e v e r y m a r k e t researcher has n o t o n l y the r i g h t b u t the r e s p o n s i b i l i t y of a r r i v i n g a t the decision w h i c h h i s o w n results i n d i c a t e . O n l y b y g o i n g t h r o u g h s u c h a d e c i s i o n - m a k i n g process c a n he be sure t h a t his results are a d e q u a t e , y e t n o t superfluous, t o t h e specific decision i n v o l v e d . O t h e r factors m a y cause the c o m p a n y decision t o be c o n t r a r y t o h i s , b u t he w i l l come t o accept t h a t p o s s i b i l i t y . H o w e v e r , i f the m a r k e t research m a n cannot use his o w n results t o a r r i v e a t a d e c i s i o n c o n c e r n i n g t h e m a r k e t , how t h e n c a n someone else? CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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Market Research as an A i d to Marketing A l l t h a t h a s been w r i t t e n t h u s f a r applies t o t h e challenge for i m p r o v i n g m a r k e t research as i t m a y be used i n a l l c o m p a n y d e c i s i o n s — b y m a n a g e m e n t , research, sales, o r p r o d u c t i o n . N o w w e w i l l d e a l w i t h t h e m o r e specific case of i t s a i d t o t h e m a r k e t i n g f u n c t i o n a n d w h a t i m p r o v e m e n t s m a y be needed for t h a t purpose i n t h e f u t u r e . E s t a b l i s h e d P r o d u c t s . T h e use of m a r k e t research as a t o o l f o r m o n i t o r i n g sales b y sales analyses o r b y d e t e r m i n a t i o n s of m a r k e t p o t e n t i a l or m a r k e t p e n e t r a t i o n h a s l o n g been recognized. S E T T I N G P R I C E S . I n t h e c o m p e t i t i v e s i x t i e s , m a r k e t i n g m e n w i l l depend m o r e o n m a r k e t research i n d e t e r m i n i n g p r i c i n g policies. P r i c e s are p r o p e r l y set b y sales m a n a g e m e n t , t a k i n g i n t o c o n s i d e r a t i o n p r o d u c t i o n costs a n d a n adequate r e t u r n o n s t o c k h o l d e r s ' i n v e s t m e n t . B u t t w o i m p o r t a n t features of the c h e m i c a l i n d u s t r y m a k e i t v i t a l t h a t o b j e c t i v e a n d t h o r o u g h m a r k e t r e search be e m p l o y e d i n s e t t i n g prices. T h e first is t h e w e l l - k n o w n f a c t t h a t c h e m i c a l p r o d u c t i o n costs decrease r a p i d l y w i t h increased v o l u m e . T h e second is t h a t n e a r l y e v e r y c h e m i c a l p r o d u c t has a w i d e v a r i e t y of uses o r possible uses a t t h e r i g h t p r i c e . T h o r o u g h m a r k e t studies w i l l be r e q u i r e d t o relate these t w o factors, c o s t - v o l u m e a n d p r i c e - v o l u m e , so t h a t a m a x i m u m r e t u r n on i n v e s t m e n t c a n be r e a l i z e d . M a r k e t research t o p r e p a r e a p r i c e - v o l u m e c u r v e o n a n established p r o d u c t c a l l s f o r t h e highest degree of d e t a i l e d s t u d y . N o t o n l y m u s t t h e r e l a t i o n s h i p of e n d use t o p r i c e be s t u d i e d f o r t h e p a r t i c u l a r p r o d u c t i n v o l v e d , b u t also c o n s i d e r a t i o n m u s t be g i v e n t o t h e p r o b a b l e a c t i o n of producers of c o m p e t i t i v e p r o d u c t s — b o t h those w h i c h o u r p r o d u c t m a y replace i f i t s p r i c e is l o w e r a n d those w h i c h m a y replace o u r p r o d u c t i f i t s price i s higher. P e r h a p s t h e sheer m a g n i t u d e of efforts i n v o l v e d i n a t h o r o u g h s t u d y of t h i s t y p e e x p l a i n s w h y i t i s n o t c a r r i e d o u t m o r e often. P R O D U C T P L A N N I N G . M a r k e t research c a n be a n excellent sales t o o l a n d w i l l be used more f o r t h i s purpose i n t h e 1960's. M o d e r n p u r c h a s i n g agents a n d c h e m i c a l b u y e r s base t h e i r p u r c h a s i n g p o l i c i e s , i n p a r t , o n t h e l o n g - t e r m trends of t h e p r o d u c t s t h e y b u y . M a n y p u r c h a s i n g d e p a r t m e n t s even h a v e staff m e n assigned s p e c i f i c a l l y t o t h e s t u d y of s u c h trends. A n objective a n d w e l l - p r e s e n t e d m a r k e t research r e p o r t , i n c l u d i n g u n p r e j u d i c e d forecasts, is w e l l r e c e i v e d b y s u c h b u y e r s w h o consider t h i s another service p r o v i d e d b y the seller t o t h e b u y i n g c o m p a n y . C e r t a i n l y , the c o m p a n y w h i c h t h u s d e m onstrates t h a t i t uses such o r g a n i z e d m a r k e t studies i n i t s p r o d u c t p l a n n i n g s h o u l d be considered a m o r e dependable source of f u t u r e s u p p l y t h a n one w h i c h j u m p s f r o m crisis t o crisis. CUSTOMER

MARKET

RESEARCH.

P r o d u c e r s of

basic chemicals and plastics

h a v e come t o l e a r n t h a t t h e m a r k e t i n g of t h e i r p r o d u c t s c a n be g r e a t l y helped t h r o u g h m a r k e t research o n t h e m a r k e t s f o r t h e p r o d u c t s t h e i r customers m a k e . S u c h studies r e q u i r e t h e agreement a n d c o o p e r a t i o n o f a l l t h e customers w h o sell t o t h i s m a r k e t . E s s e n t i a l l y , i t i s s a y i n g t o such a group of c u s tomers, " L e t us s t u d y w i t h y o u t h e m a r k e t s f o r t h e p r o d u c t s y o u m a k e f r o m oui* c h e m i c a l s . L e t us t h e n s i t d o w n together a n d d e t e r m i n e h o w w e m a y m u t u a l l y increase o r e x p a n d y o u r m a r k e t s — t h r o u g h p r o m o t i o n , t h r o u g h r e search, t h r o u g h i m p r o v e d methods o f m a n u f a c t u r e , o r t h r o u g h a n y other process b y w h i c h w e a l l benefit." S e v e r a l s u c h m a r k e t studies h a v e a l r e a d y been m a d e b y t h e H e r c u l e s CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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P o w d e r C o . I n e v e r y case, w e h a v e been able t o benefit H e r c u l e s customers a n d H e r c u l e s together. T h i s t y p e of m a r k e t research, o n c u s t o m e r s ' p r o d u c t s , w i l l become more a n d m o r e c o m m o n i n t h e 1960's.

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CONSUMER RESEARCH GROUPS.

A S the c h e m i c a l m a r k e t researcher

begins

t o m a k e his studies nearer a n d nearer t o t h e u l t i m a t e consumer, either t h r o u g h w o r k o n h i s customers' p r o d u c t s or t h r o u g h t h e i n t e g r a t i o n of h i s c o m p a n y t o w a r d consumer p r o d u c t s , he w i l l find t h a t he m u s t l e a r n t o u n d e r s t a n d t h e methods a n d language of consumer research groups. H e w i l l be c a l l e d u p o n to a p p r e c i a t e t h e accuracies a n d i n a c c u r a c i e s of t h e i r methods, t o t r a n s l a t e to c h e m i c a l sales m a n a g e m e n t t h e r e a l m e a n i n g of t h e i r s t a t i s t i c a l a p p r o a c h , a n d t o u n d e r s t a n d t h e p s y c h o l o g y i n m o t i v a t i o n research. H e m a y even be c a l l e d u p o n t o conduct o r d i r e c t such s u r v e y s h i m s e l f . T e c h n i c a l m e n i n t h e c h e m i c a l i n d u s t r y , a c c u s t o m e d t o i n d u s t r i a l m a r k e t s where t h e n u m b e r of c u s tomers is l i m i t e d a n d where t h e reasons f o r p r o d u c t use a r e u s u a l l y t e c h n i c a l l y l o g i c a l , h a v e difficulty i n u n d e r s t a n d i n g t h e b r o a d s t a t i s t i c a l a p p r o a c h of c o n sumer research groups a n d t h e p s y c h o l o g i c a l aspects of m o t i v a t i o n research. T h e c h e m i c a l m a r k e t researcher, m o r e t h a n a n y other i n d i v i d u a l i n h i s c o m p a n y , bears t h e r e s p o n s i b i l i t y of i n t e r p r e t i n g t o his m a r k e t i n g m a n a g e m e n t t h e significance of consumer research studies of t h e b u y i n g p u b l i c . F I N D I N G N E W U S E S . M y final challenge t o t h e c h e m i c a l m a r k e t researcher of t h e 1960's i n a s s i s t i n g t h e m a r k e t i n g of established p r o d u c t s lies i n m a r k e t studies of t o t a l l y n e w uses f o r these p r o d u c t s . M u c h h a s been w r i t t e n a b o u t the c u r r e n t o v e r c a p a c i t y of t h e c h e m i c a l i n d u s t r y a n d m a n y p r e d i c t t h i s w i l l c a r r y over i n t o t h e e a r l y 1960's. F i n d i n g n e w uses f o r t h e p r o d u c t s w e a r e a l r e a d y m a k i n g is perhaps t h e biggest single challenge t o t h e i n d u s t r y as w e enter t h e next decade A l t h o u g h t h i s h a s a l w a y s been a n o u t s t a n d i n g a b i l i t y of t h e c h e m i c a l i n d u s t r y , m a r k e t i n g m e n a n d a p p l i c a t i o n s research m e n whose p r o d u c t s a r e i n o v e r s u p p l y m u s t increase t h e i r efforts t o develop n e w uses. H e r e , c r e a t i v e m a r k e t research c a n be a t i t s best. S a l e s people f r e q u e n t l y h a v e a p e r f e c t l y n a t u r a l b u t u n f o r t u n a t e m e n t a l block concerning their products. Because their d a i l y tasks involve current customers, t h e y t e n d t o t h i n k of t h e i r p r o d u c t s s t r i c t l y i n terms of t h e i r k n o w n uses o r a t best i n v e r y closely s i m i l a r uses. A p a i n t r e s i n is t h o u g h t of s t r i c t l y i n t e r m s o f i t s use i n p a i n t o r i n l a c q u e r ; a s o l v e n t is s t r i c t l y a s o l v e n t ; a p l a s t i c i z e r i s used o n l y w i t h p l a s t i c s . W h i l e t h i s is n o t u n i v e r s a l l y t r u e a n d sales d e v e l o p m e n t people e s p e c i a l l y h a v e l e a r n e d t o o v e r c o m e s u c h b l o c k s , there is s t i l l a tendency t o explore uses analogous t o a k n o w n use. O n t h e other h a n d , t h e c h e m i c a l m a r k e t researcher i s f r e q u e n t l y , b y t h e v e r y n a t u r e of his j o b , e x p l o r i n g i n d u s t r i e s a n d technologies n e w a n d u n f a m i l i a r t o his c o m p a n y . F u r t h e r m o r e , n o t b e i n g s p e c i f i c a l l y concerned w i t h one c o m p a n y p r o d u c t o r p r o d u c t t y p e he i s m o r e a b l e t o t h i n k o f a l l c o m p a n y p r o d u c t s i n t e r m s of t h e i r u n i q u e p h y s i c a l properties a n d p e r f o r m a n c e . A s he t a l k s w i t h t e c h n i c a l people i n t h e n e w i n d u s t r y o r t e c h n o l o g y , he h a s t h e o p p o r t u n i t y of c r e a t i v e l y m a t c h i n g these p r o d u c t properties a g a i n s t t h e p r o b l e m s of t h e i n d u s t r y . S u c h p i o n e e r i n g or o p p o r t u n i t y research c a n be a m a j o r c o n t r i b u t i o n i n finding new uses f o r c h e m i c a l p r o d u c t s i n t h e 1960's. I t c a l l s f o r t h e highest c a l i b e r o f m a r k e t research m a n — o n e w h o c a n t h i n k c r e a t i v e l y o n i n d u s t r i a l p r o b l e m s , one w h o c a n q u i c k l y grasp a n e w t e c h n o l o g y , a n d finally one w h o is sufficiently i n f o r m e d o n a l l h i s c o m p a n y ' s products t h a t he c a n use t h e m as tools t o solve these needs. CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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Products New to Company, O l d to Industry. M a r k e t research o n c o m m e r c i a l c h e m i c a l s a l r e a d y e s t a b l i s h e d b y other companies b u t n e w t o y o u r c o m p a n y i s a w e l l - d e v e l o p e d a r t . T h e r a p i d 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 d u r i n g t h e l a s t 15 y e a r s , b o t h i n n e w p r o d u c t s a n d i n new p r o d u c t i o n processes, has created a great d e m a n d f o r t h i s t y p e o f " m e t o o " m a r k e t research.

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PRELIMINARY M A R K E T RESEARCH.

T h e p r e l i m i n a r y m a r k e t research o n

a

" m e t o o " p r o d u c t c a n be of great help t o m a r k e t i n g i f a n d w h e n t h e c o m p a n y decides t o m a n u f a c t u r e i t . I p e r s o n a l l y h a v e h a d t h e somewhat u n i q u e e x p e r i ence of h a v i n g been a p p o i n t e d sales m a n a g e r of a p r o d u c t f o r w h i c h I h a d p r e v i o u s l y done t h e m a r k e t research. T h i s w a s a n o p p o r t u n i t y t o l e a r n firsthand where m y o w n m a r k e t research results c o u l d h a v e been more u s e f u l as a guide to m y sales m a n a g e m e n t efforts. T h i s m a r k e t research j o b w a s b y u s u a l s t a n d a r d s e n t i r e l y adequate f o r H e r c u l e s ' decision t o enter t h i s field. S t a t i s t i c s o n p r o d u c t i o n , c a p a c i t i e s of c o m p e t i t o r s , c o n s u m p t i o n , end-use d i s t r i b u t i o n , a n d customer p o t e n t i a l s were a l l complete a n d a c c u r a t e a n d even t h e forecasts of f u t u r e c o n s u m p t i o n h a v e since p r o v e d r e l i a b l e . T h i s r e p o r t w a s of i n v a l u a b l e help i n d e l i n e a t i n g areas for c o n c e n t r a t i n g o u r sales effort a n d i n t e a c h i n g o u r salesmen h o w customers used t h i s p r o d u c t . S o m e eight y e a r s l a t e r , i t is s t i l l a h a n d b o o k t o m y successor i n t h e sales m a n a g e r j o b . B u t as sales m a n a g e r f o r t h e p r o d u c t , I f o u n d I needed m a n y d e t a i l s n o t c o n t a i n e d i n m y m a r k e t research r e p o r t . C u s t o m e r b u y i n g h a b i t s , c o n t r a c t preferences, u n l o a d i n g f a c i l i t i e s , s h i p p i n g c o n t a i n e r s , a n d m a n y more d a t a were r e q u i r e d t o set i n m o t i o n a h a r d - h i t t i n g sales p r o g r a m . A l l t h i s i n f o r m a t i o n c o u l d h a v e been o b t a i n e d d u r i n g t h e m a r k e t research i n t e r v i e w , a n d t o d a y , when m a r k e t surveys are carried out a t Hercules, we t r y to envision the problems t h a t w i l l face o u r salesmen i f w e m a k e t h e p r o d u c t . E v e r since t h e n I h a v e been h i g h l y i n f a v o r of h a v i n g e v e r y m a r k e t researcher receive some experience i n d i r e c t sales. T H E M A R K E T R E S E A R C H E R . T h e m a r k e t researcher i s , w h e t h e r he l i k e s i t or n o t , t h e pioneer s a l e s m a n f o r t h e p r o d u c t . T h e i m p r e s s i o n he m a k e s o n prospective customers c a n be good or b a d a n d c a n , t h e r e b y , m a k e l a t e r calls b y salesmen easier or m o r e difficult. A t t h e s a m e t i m e , h e has a n excellent o p p o r t u n i t y t o size u p t h e p u r c h a s i n g agent o r b u y e r a n d l a t e r t o a l e r t t h e sales force as t o w h a t a p p r o a c h t o m a k e t o t h i s p a r t i c u l a r i n d i v i d u a l . T o do a l l t h i s p r o p e r l y , he m u s t h a v e a l l t h e a t t r i b u t e s of a good c h e m i c a l s a l e s m a n i n t h e highest s e n s e — p e r s o n a l i t y , a p p e a r a n c e , a n a b i l i t y t o t h i n k i n terms of customer benefits, a n d a t h o r o u g h k n o w l e d g e of t h e p r o d u c t b o t h t e c h n i c a l l y a n d c o m mercially. W h i l e a l l these t h i n g s a r e n o t u s u a l l y considered as p a r t o f t h e m a r k e t researcher's j o b , I feel sure t h a t i n t h e h i g h l y c o m p e t i t i v e 1960's, t h i s t y p e of i n f o r m a t i o n a n d these impressions left i n field i n t e r v i e w s w i l l b e i n c r e a s i n g l y needed i f m a r k e t research is t o be of t h e greatest assistance t o sales. Completely New Products. M a r k e t research o n c o m p l e t e l y n e w p r o d u c t s is p r o p e r l y c a r r i e d o u t i n c o o r d i n a t i o n w i t h t h e progress of t h e p r o d u c t t h r o u g h t h e v a r i o u s degrees o f l a b o r a t o r y a n d a p p l i c a t i o n s research. T h e i n t e n s i t y a n d degree o f d e t a i l i n t h e m a r k e t research s t u d y s h o u l d increase w i t h t h e a p p r o a c h of t h e p r o d u c t t o c o m m e r c i a l i z a t i o n u n t i l a t h o r o u g h j o b i s c a r r i e d o u t j u s t p r i o r t o t h e request f o r c a p i t a l funds f o r a p l a n t . S u c h t h o r o u g h m a r k e t research b e fore c a p i t a l a p p r o v a l i s n o t a l w a y s done a n d m a n y a sad t a l e c o u l d be t o l d where CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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m a r k e t estimates were m a d e b y guess a n d b y h u n c h of n e c e s s a r i l y e n t h u s i a s t i c d e v e l o p m e n t m e n , r a t h e r t h a n b y experienced a n d o b j e c t i v e m a r k e t researchers. M a r k e t research on new p r o d u c t s w h i l e t h e p l a n t is b e i n g b u i l t has v e r y l i t t l e m e a n i n g as the j o b b y t h e n is one of m a r k e t a n d sales development. I n c a r r y i n g o u t m a r k e t research on a new p r o d u c t i n i t s e a r l y stages, t h e m a r k e t research m a n is g e n e r a l l y d e a l i n g more w i t h the l a b o r a t o r y chemists t h a n w i t h m a r k e t i n g m e n . H o w e v e r , as p a r t of t h e d e v e l o p m e n t t e a m , he represents t h e t h i n k i n g of the m a r k e t i n g d e p a r t m e n t s a n d i n m a n y cases is the most s a l e s - m i n d e d i n d i v i d u a l i n v o l v e d . H e m u s t c o n s t a n t l y be p o s i n g t o t h e l a b o r a t o r y people questions such as " W h e r e w i l l w e sell t h i s p r o d u c t ? At w h a t p r i c e ? I n w h a t v o l u m e ? , " a n d , a t the same t i m e , be t r y i n g t o answer these v e r y questions t h r o u g h his o w n w o r k . W h i l e i t is necessary t o be o b j e c t i v e l y c r i t i c a l t h e m a r k e t research m a n m u s t never be g u i l t y of p e s s i m i s m . H e s h o u l d be p a r t of the c r e a t i v e t e a m g i v i n g b i r t h t o t h e new p r o d u c t , suggesting uses or m a r k e t s a n d w o r k i n g w i t h the a p p l i c a t i o n s research people i n p r o v i n g i n those uses. I n a d d i t i o n , t h r o u g h q u a n t i t a t i v e a p p r a i s a l of m a r k e t p o t e n t i a l s i t is essential t h a t he a c t as a c h e c k r e i n o n u n w a r r a n t e d e n t h u s i a s m for t h e new b a b y , a n d a b o v e a l l bear i n m i n d t h a t t h e p r o d u c t c a n succeed, t h a t i t c a n r e a c h the m a r k e t i n g stage, a n d t h a t he has the o p p o r t u n i t y t h r o u g h h i s m a r k e t research of easing the i n i t i a l sales j o b a n d s h o r t e n i n g the i n t r o d u c t o r y p e r i o d after commercialization. Conclusion I hope I h a v e been able t o change t h e p i c t u r e of the m o d e r n m a r k e t r e searcher as s i m p l y a collector of s t a t i s t i c s . P e r h a p s i n m y e n t h u s i a s m for t h e role he c a n p l a y i n the f u t u r e I h a v e gone too f a r ; p e r h a p s I h a v e charged h i m w i t h responsibilities and attitudes toward his job w h i c h today we w o u l d not i n c l u d e as m a r k e t research. P e r h a p s he c a n n o t be b o t h c r e a t i v e a n d o b j e c t i v e i n his field a c t i v i t i e s , b u t i f he is t r u l y t o assist m a r k e t i n g i n the n e x t decade he m u s t d o m o r e t h a n p r o v i d e n u m b e r s , h o w e v e r a c c u r a t e those n u m b e r s m a y be. H e m u s t c o m e t o be a p a r t of the m a r k e t i n g t e a m , t o t h i n k l i k e m a r k e t i n g m e n , a n d t o appreciate t h e challenge f a c i n g t h e m i n t h e c o m p e t i t i v e sixties. H e m u s t seize o n e v e r y o p p o r t u n i t y t o i m p r o v e t h e m a r k e t i n g of c h e m i c a l p r o d u c t s w h e t h e r o r n o t i t p r o p e r l y f a l l s w i t h i n a n y d e f i n i t i o n of m a r k e t research.

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