CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES

The Challenge in Marketing for Inorganic and Heavy Chemicals F. A . GILBERT

Downloaded by CORNELL UNIV on July 19, 2016 | http://pubs.acs.org Publication Date: June 17, 1959 | doi: 10.1021/ba-1959-0024.ch003

Food Machinery & Chemicals Corp., New York, Ν. Y.

Inorganic chemicals, because they are basic building blocks for the entire chemical industry, show three important characteristics. They are for the most part mature and little subject to obsolescence. Major technological changes affecting marketing or manufacturing are unlikely. Their growth tends to follow general economic patterns. For these and other reasons, the heavy inorganics may be more than normally subject to the challenges of the sixties. Such challenges include overcapacity, and the continuing cost-price squeeze. Closely related to these challenges are changes occurring in the ex port-import picture. The industry will also face in creasing costs and other problems of distribution. And it must meet the need for new and better man power skills.

T h e phrases " i n o r g a n i c c h e m i c a l s " a n d " h e a v y c h e m i c a l s " are often used i n t e r c h a n g e a b l y . S u c h use is n o r m a l l y correct. H o w e v e r , i t m a y be w e l l t o differentiate between the t w o . G e n e r a l l y , m a n y i n o r g a n i c c h e m i c a l s are " h e a v y " ; t h e y are w e l l - e s t a b l i s h e d , l o w cost, h i g h - v o l u m e p r o d u c t s w i t h m a t u r e m a r k e t s t h a t t e n d to f o l l o w the general economic g r o w t h of the c o u n t r y . Y e t , do the newer i n o r g a n i c fluorine c h e m i c a l s , t h e silicones, t h e a c t i v e oxygen c h e m i c a l s , fit t h i s d e f i n i t i o n ? D e f i n i t e l y , t h e answer seems to be " n o . " The p r o b l e m s connected w i t h the m a r k e t i n g of these p r o d u c t s are c h a l l e n g i n g , i n t r i g u i n g , a n d m a n i f o l d , b u t t h e y t e n d t o p a r a l l e l those f o u n d i n other more g l a m o r o u s sections of the c h e m i c a l i n d u s t r y — d r u g s , organics, p l a s t i c s , etc. T h e r e f o r e , t h i s p a p e r focuses a t t e n t i o n o n the m o r e t r u l y h e a v y p a r t of the i n o r g a n i c field such areas as a l k a l i e s , m i n e r a l a c i d s , c h l o r i n e , phosphates, a n d the l i k e . T h e s e h a v e been, a n d w i l l continue t o be, basic b u i l d i n g b l o c k s of our w h o l e c h e m i c a l i n d u s t r y , perhaps even of o u r w h o l e e c o n o m y . P r a c t i c a l l y e v e r y d r u g , o r g a n i c , p l a s t i c , a n d o t h e r end p r o d u c t c h e m i c a l is p r o d u c e d , i n p a r t a t least, b y u s i n g these basic i n o r g a n i c m a t e r i a l s . N o t e t h e w o r d " b a s i c " ; i t is i m p o r t a n t as a p r i m a r y s p e c i f i c a t i o n of t h i s segment of c h e m i s t r y . B y b e i n g basic t o our whole e c o n o m y these p r o d u c t s t e n d to show the f o l l o w i n g c h a r a c t e r istics: The chemical, and often its method of manufacture, are normally mature and little subject to obsolescence. 23

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

ADVANCES IN CHEMISTRY SERIES

24

Conversely, major technological advances, resulting i n either very rapid market expansion or substantial manufacturing cost savings, are unlikely. B y being stable, these chemicals tend to parallel such natura economic patterns as population growth, gross national product, construction, etc. These relationships are much more pronounced with the heavy inorganics than with the newer chemical products. 1


F o r these a n d other reasons, the h e a v y i n o r g a n i c s m a y thus be more t h a n n o r m a l l y subject to the " C h a l l e n g e s of the C o m p e t i t i v e S i x t i e s . " T o meet these challenges successfully w i l l c a l l for alertness, clear j u d g m e n t , a n d t o p flight (often new) s k i l l s , c o u p l e d w i t h a considerable a m o u n t of c r e a t i v i t y . T h e challenges themselves m i g h t be d i v i d e d i n t o a n u m b e r of categories, even though a n y such l i s t suffers f r o m the d u a l i l l s of incompleteness a n d d u p l i c a t i o n . T h e f o l l o w i n g m i g h t be considered: Overcapacity Cost-price squeeze Impact of changes in exports and imports Increasing costs and problems of distribution Need for better or different human skills Overcapacity O v e r c a p a c i t y is n o t a new or u n u s u a l challenge, b u t i t m a y become i n c r e a s i n g l y i m p o r t a n t i n the n e x t decade. A s a larger a n d larger segment of the i n d u s t r y m o v e s a w a y f r o m the r a p i d p e r i o d of g r o w t h i n t o a n era of greater m a t u r i t y there is a t e n d e n c y , t h r o u g h sheer i n e r t i a , t o a l l o w a c o n t i n u a t i o n of the e x p a n s i o n of p r o d u c t i v e c a p a c i t y p a s t the p o i n t of need. T h a t t h i s is p r o b a b l y t r u e a t the present t i m e , a t the t h r e s h o l d of the c o m i n g decade, c a n be seen f r o m a s u r v e y of 500 of the c o u n t r y ' s largest i n d u s t r i a l concerns m a d e b y t h e N a t i o n a l I n d u s t r i a l C o n f e r e n c e B o a r d as of J u n e 1959. N I C B ' s s u r v e y showed t h a t i n d u s t r y g e n e r a l l y was p l a n n i n g to increase i t s c a p i t a l s p e n d i n g p r o g r a m for 1959 b y 3 7 % over 1958 w h i l e t h e o n l y segment t o report a d e crease w a s the c h e m i c a l i n d u s t r y , " w h i c h p l a n s to lower i t s first q u a r t e r s p e n d i n g b y 1 7 % because of p r e v i o u s o v e r e x p a n s i o n . " A d d i n g t o t h i s p r o b l e m is the g r o w i n g t e n d e n c y for newcomers t o enter the i n o r g a n i c field. E x a m p l e s c a n be f o u n d b o t h i n the a c t i v i t i e s of e x i s t i n g c h e m i c a l companies t o b r o a d e n t h e i r lines a n d i n t h e e n t r y of m a n y p r e v i o u s n o n c h e m i c a l m a n u f a c t u r e r s . T h e a p p e a l of d i v e r s i f i c a t i o n a n d the desire for i d e n t i f i c a t i o n w i t h one of the g l a m o u r i n d u s t r i e s m a y be reasons for these moves, b u t w h a t e v e r the cause, the results are the s a m e — a d d e d c a p a c i t y . S o m e c h e m i c a l c o n s u m i n g i n d u s t r i e s , too, are i n d u l g i n g i n " b a c k w a r d i n tegration" by manufacturing their own chemical raw materials. A w e l l - k n o w n e x a m p l e is the p r o d u c t i o n of caustic a n d c h l o r i n e b y p a p e r m i l l s . H e r e , a g a i n , w h i l e the specific moves m a y be w e l l j u s t i f i e d , the end result is s t i l l m o r e capacity. F o r the producers of h e a v y i n o r g a n i c s , a l l t h i s adds u p t o a considerable challenge. T h e i n d i v i d u a l c h e m i c a l c o m p a n y m u s t be p a r t i c u l a r l y astute i n forecasting not o n l y the p r o b a b l e f u t u r e g r o w t h i n n a t i o n a l d e m a n d of i t s p r o d ucts, b u t also the g r o w t h p a t t e r n for i t s specific c o n s u m i n g areas. I t m u s t r e cognize possible i n r o a d s t h a t others m a y m a k e i n w h a t i n the p a s t , m a y h a v e been considered its safe sales region a n d , p a r t i c u l a r l y , i t m u s t be a b l e t o j u d g e c o r r e c t l y the r e l a t i v e p o s i t i o n of the specific c h e m i c a l o n i t s o w n d e m a n d c u r v e . T h i s has p a r t i c u l a r significance for the h e a v y i n o r g a n i c producers because more


GILBERT—MARKETING:

25

INORGANIC AND HEAVY CHEMICALS


a n d more of these c h e m i c a l s m a y h a v e reached, or be a p p r o a c h i n g , t h e e n d of t h e i r r a p i d g r o w t h p e r i o d . C o n s i d e r a b l e experience i s needed t o judge w h a t a d d i t i o n a l c a p a c i t y others m a y be p l a n n i n g a n d h o w t h i s w i l l affect t h e r e l a t i o n s h i p between s u p p l y a n d d e m a n d . F i g u r e 1 shows a t y p i c a l d e m a n d c u r v e w i t h a c a p a c i t y curve superimposed thereon.

I

1

Figure

I.

t

TIME

1

I

Demand vs. production capacity

T h e p r o b l e m s t h a t a r e inherent i n t h i s s i t u a t i o n are s e l f - e v i d e n t . I f a company waits too long to build additional capacity a n d waits until the d e m a n d h a s become q u i t e firm, others m a y e x p a n d first a n d reap t h e h a r v e s t . C o n v e r s e l y , i n these d a y s o f e v e r - i n c r e a s i n g c a p i t a l costs a n d r e s u l t a n t h i g h b r e a k - e v e n p o i n t s , serious penalties a w a i t h i m w h o b u i l d s c a p a c i t y t o o f a r i n a d v a n c e of t h e need. Cost-Price O n e of t h e results of a c t u a l o r t h r e a t e n e d o v e r c a p a c i t y i s t h e cost-price squeeze t h a t t h e c h e m i c a l i n d u s t r y i s n o w experiencing. N o t t h a t t h i s is t h e o n l y cause o f t h i s i l l , b u t i t i s c e r t a i n l y o n e of t h e m . E v e n i n t h e face of r i s i n g costs, t h e existence of i d l e c a p a c i t y seriously deters a corresponding p r i c e increase. T h a t a cost-price squeeze exists, p a r t i c u l a r l y i n t h e h e a v y i n o r g a n i c field, is w e l l k n o w n . A c c o r d i n g t o t h e B u r e a u of L a b o r S t a t i s t i c s , finished steel prices, one of t h e bellwethers of o u r e c o n o m y a n d a good m e a s u r e m e n t of t h e cost of t h i n g s w e m u s t b u y , h a v e r i s e n 8 0 % i n t h e l a s t decade. O v e r t h e same y e a r s , i n d u s t r i a l c h e m i c a l prices h a v e gone u p a p p r o x i m a t e l y 2 3 % . F o r f u r t h e r a m p l i f i c a t i o n , F i g u r e 2 shows t h e p r i c e h i s t o r y of i n d u s t r i a l c h e m i c a l s i n r e l a t i o n t o t w o of t h e most i m p o r t a n t elements o f c h e m i c a l p r o d u c t i o n c o s t — h i g h fixed c a p i t a l r e q u i r e m e n t s a n d cost of l a b o r . U n l e s s some e x t r a o r d i n a r y change i n t h e economics of t h e h e a v y c h e m i c a l i n d u s t r y o c c u r s — a n d none i s i n v i e w — t h e r e is n o reason t o assume t h a t t h i s s i t u a t i o n w i l l correct itself i n the c o m i n g decade. CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


26


1950

1952

1954

1956

1958

Figure 2. Industrial chemical prices vs. construction material prices and weekly earnings of industrial chemical worker Index 1947-49 = 100 A Industrial chemical • Construction #> Earnings Sources. U. S. Department of Labor and Engineering News Record "Construction Cost Index"

Besides t h e pressures f r o m o v e r c a p a c i t y there are a n u m b e r of other f a c tors b e a r i n g on t h i s p r o b l e m . F o r e x a m p l e , t h e h e a v y i n o r g a n i c field, because of i t s size a n d m a t u r i t y , c a n n o t l o o k t o t h e c h e m i c a l i n d u s t r y ' s n o r m a l a n t i d o t e for r i s i n g c o s t s — n a m e l y , increased efficiency t h r o u g h m a j o r v o l u m e increases or t e c h n o l o g i c a l b r e a k t h r o u g h s . U n f o r t u n a t e l y , these a r e g e n e r a l l y t h e p r i v a t e d o m a i n o f t h e newer g r o w t h c h e m i c a l s . B r e a k - e v e n costs t h a t are h i g h , a n d i n some instances g o i n g h i g h e r , i n t e n s i f y t h i s p r o b l e m . M o r e a n d m o r e , t h e p r o f i t is c o n c e n t r a t e d i n t h e n a r r o w t o p b a n d o f sales; a n d w h a t pressures t h i s b r i n g s to sell t h e f u l l c a p a c i t y of a p l a n t ! A w h o l e host o f challenges are t o be f o u n d as a r e s u l t . I s i t better t o increase v o l u m e a t t h e r i s k o f p r i c e d e t e r i o r a t i o n ? I s i t wise t o use t r a d e r e l a t i o n s as a sales t o o l a n d , i f so, t o w h a t degree? S h o u l d s p e c i a l c r e d i t t e r m s be extended i n order to increase sales v o l u m e ? I n s e l l i n g h e a v y i n o r g a n i c s , h o w m u c h c a n one afford to spend o n t e c h n i c a l sales-service? T h e s e questions a n d m a n y m o r e m u s t be faced d u r i n g the c o m i n g y e a r s . T h e o r g a n i z a t i o n t h a t answers t h e m p r o p e r l y w i l l n o t operate p r o f i t a b l y i n the near t e r m , b u t w i l l be b u i l d i n g soundly for the future. Export-Import C l o s e l y a l l i e d w i t h t h e t w o challenges p r e v i o u s l y discussed i s t h a t w h i c h is connected w i t h t h e changes t h a t are o c c u r r i n g a n d w i l l c o n t i n u e t o o c c u r i n the c h e m i c a l e x p o r t - i m p o r t p i c t u r e . A t t h e e n d of W o r l d W a r I I t h e u s u a l l y s t r o n g c h e m i c a l i n d u s t r i e s of such countries as W e s t e r n G e r m a n y , t h e U n i t e d K i n g d o m , a n d J a p a n were i n a v e r y w e a k e n e d c o n d i t i o n . N o t o n l y were U . S.




27


c h e m i c a l f i r m s e x p e r i e n c i n g l i t t l e or no c o m p e t i t i o n i n e x p o r t sales t o other areas of t h e w o r l d , b u t these n o r m a l l y self-sufficient countries were themselves i m p o r t e r s of o u r p r o d u c t s . H o w e v e r , i n the i n t e r v e n i n g y e a r s t h e i r c h e m i c a l industries h a v e been r e b u i l t , i n some cases w i t h U . S. m o n e y a n d t e c h n o l o g y . N o w , n o t o n l y c a n t h e y s a t i s f y t h e i r o w n d e m a n d b u t also t h e y a r e s t r o n g c o m p e t i t o r s f o r w o r l d m a r k e t s . F i g u r e 3 i n d i c a t e s recent past experience i n t h i s

ο i

I

1948

I 1950

Figure 3.

1

1 1952

1

I 1954

I

I 1956

I

1 1958

U. S. industrial chemicals exports, imports

Source.

U. S. Dtpt. of Commerce

a r e a . I t c a n be expected t h a t these t r e n d s w i l l be m a r k e d l y reversed i n t h e c o m i n g decade, perhaps t o t h e extent t h a t t h e f a v o r a b l e b a l a n c e of t h e e a r l y 1950's w i l l a l l b u t d i s a p p e a r . A n o t h e r d e v e l o p m e n t of perhaps e q u a l i m p o r t a n c e is t h e f o r m a t i o n of t h e E u r o p e a n C o m m o n M a r k e t , t h e f u l l i m p a c t of w h i c h w i l l c e r t a i n l y be f e l t i n t h e sixties. T h i s n e w o r g a n i z a t i o n c a n be expected t o strengthen t h e w h o l e W e s t e r n E u r o p e a n e c o n o m y a n d t h u s increase t h e v o l u m e of goods t h a t w i l l be consumed there, i n c l u d i n g i m p o r t e d p r o d u c t s . H o w e v e r , i t is p r o b a b l e t h a t t o a n even greater degree t h e c o n c e n t r a t e d strength generated b y t h e C o m m o n M a r k e t w i l l show itself i n a n i n c r e a s i n g pressure t o sell p a r t of t h e i r c o m b i n e d o u t p u t i n t h e w o r l d m a r k e t s , i n c l u d i n g i n t h e U n i t e d States. W h i l e t h e export of h e a v y i n o r g a n i c s has never t a k e n a m a j o r p o r t i o n of the U . S. p r o d u c t i o n , a n y loss of sales i n t h i s o r a n y other area comes r i g h t off the t o p . A few p e r cent r e d u c t i o n i n sales c a n h a v e a m u c h l a r g e r effect o n profits, r e t u r n o n assets, etc. A d u a l challenge is presented here. H o w s h o u l d t h e i n d u s t r y as a w h o l e , or a n i n d i v i d u a l c o m p a n y , a c t t o m i n i m i z e t h i s loss i n v o l u m e ? S h o u l d E u r o p e a n prices be m e t i n L a t i n A m e r i c a , f o r e x a m p l e , even i f t h i s means l i t t l e o r n o p r o f i t t o the U . S. p r o d u c e r ? S h o u l d there be some t y p e of g o v e r n m e n t s u b s i d y for c h e m i c a l exports, s u c h as v e r y l o w freight rates s i m i l a r t o those e n j o y e d b y E u r o p e a n shippers? W h a t a t t i t u d e s s h o u l d be t a k e n t o w a r d s t h e possible loss of some domestic business t h r o u g h t h e i n c r e a s i n g pressure of i m p o r t s i n t o t h e U n i t e d States? I n d u s t r y a n d G o v e r n m e n t b o t h w i l l h a v e t o m a k e i n t e l l i g e n t , f a r - s i g h t e d decisions i n these areas.


28



T h e o t h e r h a l f of t h e challenge represented b y t h e loss of export m a r k e t s is the q u e s t i o n of h o w best t o c o n t i n u e t o m a k e economic use i n foreign l a n d s of U . S. c h e m i c a l technology. A n i n c r e a s i n g n u m b e r of A m e r i c a n c h e m i c a l c o m panies are e x p o r t i n g t h e i r k n o w - h o w i n p l a c e of t h e i r p r o d u c t s . Returns, t h r o u g h either r o y a l t y p a y m e n t s o r a n e q u i t y p o s i t i o n i n a foreign p r o d u c i n g o p e r a t i o n , often e q u a l , a n d sometimes exceed t h e loss i n profits r e s u l t i n g f r o m lost export m a r k e t s . W h e t h e r or n o t s u c h a p r o g r a m i s sound m u s t be decided b y each c o m p a n y w i t h i n t h e f r a m e w o r k of i t s o w n s i t u a t i o n . H o w e v e r , even w i t h t h e older h e a v y i n o r g a n i c s there a r e p r o d u c t i o n a n d sometimes end-use technologies w h i c h a r e sufficiently a d v a n c e d t o h a v e r e a l economic v a l u e i n other l a n d s . T h e f o r w a r d - t h i n k i n g c h e m i c a l c o m p a n y w i l l find some w a y of c a p i t a l i z i n g o n these assets.

Distribution A n o t h e r challenge w h i c h w i l l become p a r t i c u l a r l y i m p o r t a n t i n t h e next decade h a s t o d o w i t h t h e p h y s i c a l d i s t r i b u t i o n of h e a v y c h e m i c a l s f r o m t h e p r o d u c e r t o t h e consumer. E v e r since t h e w a r , t r a n s p o r t a t i o n a n d other d i s t r i b u t i o n costs h a v e r i s e n so s h a r p l y t h a t t h e y h a v e become a m a j o r f a c t o r i n d e t e r m i n i n g sales p o l i c y . I n t h e case of t h e h e a v y i n o r g a n i c s t h i s is p a r t i c u l a r l y t r u e , since s h i p p i n g rates have r i s e n m u c h m o r e r a p i d l y t h a n sales v a l u e a n d are t o d a y one of t h e largest single items o f the d e l i v e r e d cost o f these p r o d ucts. W h e t h e r t h i s i t e m of cost i s f o r t h e account of t h e p r o d u c e r or of t h e b u y e r is of l i t t l e consequence. I n either case, i t m u s t be c o n t r o l l e d . T h e m a j o r m e t h o d of t r a n s p o r t a t i o n of h e a v y c h e m i c a l s is t h e r a i l r o a d . H e r e , rates h a v e gone u p r a p i d l y . G e r r i t V a n S c h a i c k , G e n e r a l Traffic M a n a g e r for A m e r i c a n C y a n a m i d , s a i d a t a recent M C A T r a n s p o r t a t i o n S y m p o s i u m i n C l e v e l a n d (1), t h a t since 1947 r a i l r o a d f r e i g h t rates h a v e c l i m b e d 6 4 % a n d t h e cost of freight cars 5 2 % , w h i l e i n t h e same p e r i o d c h e m i c a l prices h a v e r i s e n less t h a n 1 0 % . I t is h a r d t o see t h a t these trends w i l l reverse themselves i n the c o m i n g decade. N e i t h e r the producers n o r the consumers of h e a v y c h e m i c a l s , w i t h t h e i r l o w prices a n d h i g h v o l u m e s , c a n l o n g afford t o absorb these r i s i n g costs. T h e challenge m u s t be m e t a n d m e t p r o m p t l y . B e c a u s e of t h e m a g n i t u d e of t h e p r o b l e m , t h e r e w a r d s t o those companies t h a t develop some of the r i g h t answers c a n be v e r y large, either i n t e r m s of cost savings t o themselves o r a d d i t i o n a l business f r o m those g r a t e f u l customers w h o g a i n t h e benefits of t h e savings. H o w t o solve t h i s p r o b l e m is difficult t o state a n d m a n y approaches c a n be t a k e n . A l t e r n a t i v e forms of t r a n s p o r t a t i o n s u c h as p i p e l i n e s f o r l i q u i d s a n d sometimes solids, w a t e r m o v e m e n t , t r u c k - r a i l ( p i g g y - b a c k ) , a n d t r u c k - w a t e r (fishy-back) combinations, are a l l possibilities. P l a n t relocations t o m i n i m i z e s h i p p i n g distances t o m a j o r customers, o r t o a l l o w d i r e c t across -the-fence m o v e m e n t s , s h o u l d be considered. T h e use of t h e newer, o r t h e y e t - t o - b e - d e v e l o p e d c o n t a i n e r s , such t h i n g s as b u l k r u b b e r " b a g s " f o r l i q u i d s , b u l k h a n d l i n g of d r y solids v i a a i r slides, etc., l i n e d fiber d r u m s f o r l i q u i d s , s h o u l d a l l b e c a r e f u l l y s t u d i e d . T h e c r e a t i o n of b u l k d i s t r i b u t i o n p o i n t s m a y i n some instances be of value. T h e s e are b u t a few of t h e p o s s i b i l i t i e s . I n a n y case, however, t h e e x i s t ence of t h i s large a n d r a p i d l y g r o w i n g p o r t i o n of t h e t o t a l costs of h e a v y i n o r ganics represents a challenge of t h e first m a g n i t u d e .




29


Personnel T h e l a s t of the challenges l i s t e d e a r l i e r i s , p e r h a p s , n o t a challenge a t a l l b u t r a t h e r a means of s o l v i n g the p r o b l e m s a n d m o v i n g f o r w a r d i n the next decade. I t is the r e c o g n i t i o n of t h e c h a n g i n g m a n p o w e r needs, the necessity t o s u p p l y new a n d often better s k i l l s t o t h e field of i n o r g a n i c c h e m i s t r y . N o longer c a n r e l i a n c e be p l a c e d solely on the more n o r m a l experiences of c h e m i c a l p e r s o n n e l — p r o d u c t i o n , sales, engineering, a n d research. T o meet the e x i s t i n g a n d f u t u r e challenges there m u s t be a d d e d a b i l i t i e s i n s u c h newer fields as logistics, operations research, p l a n n i n g , t r a n s p o r t a t i o n a n d d i s t r i b u t i o n , a n d a u t o m a t i o n . W h a t is needed is n o t m o r e m a n p o w e r b u t better t r a i n e d m a n p o w e r ; people w h o are, perhaps, more s o p h i s t i c a t e d a n d t h u s better able to j u d g e a l l of the nuances present i n the v a r i o u s challenges to be faced. I n t h e field of m a r k e t i n g the personnel w i l l h a v e t o be more h i g h l y t r a i n e d i n t e c h n i c a l s k i l l s a n d m u s t be a b l e t o develop e m p a t h y r e g a r d i n g customer's needs, a p p l i c a t i o n s , a n d uses of c h e m i c a l s . P r o b a b l y the s u p e r i o r sales people w i l l be those of a n o p t i m i s t i c f r a m e of m i n d , w e l l b a l a n c e d w i t h r e a l i s m . O u r m a r k e t i n g managers m u s t also be m o r e h i g h l y s k i l l e d i n forecasting, i n i d e n t i f y i n g needs of t h e process i n d u s t r i e s , a n d i n t e c h n i c a l - e c o n o m i c aspects of t h e d i v e r s i f i e d i n d u s t r i e s served. D e c i s i o n m a k i n g b y m a r k e t i n g executives a n d b y t h e i r t e a m w i l l c a l l for r e a l courage. T h e y must determine w h a t moves to m a k e a n d , more s p e c i f i c a l l y , t h e y m u s t j u d g e the t i m i n g of s u c h moves, such as w h e n t o enter a m a r k e t , w h e n t o d r o p a p r o d u c t , a n d w h e n to e x p a n d . A l l t h i s m u s t be done w i t h a h i g h degree of a c c u r a c y , for the stakes are large. A l l of these p r o b l e m s are r e a l , as are the m a n y others t h a t h a v e n o t been m e n t i o n e d here. H o w e v e r , t h i s does not m e a n t h a t the next decade s h o u l d be a p p r o a c h e d w i t h p e s s i m i s m . T h e s e p r o b l e m s a n d challenges s h o u l d be r e c o g n i z e d for w h a t t h e y t r u l y are, v a l u a b l e o p p o r t u n i t i e s for those a l e r t enough to i d e n t i f y a n d solve t h e m . B a r r i n g a m a j o r m i l i t a r y , p o l i t i c a l , or economic u p h e a v a l , t h e next decade s h o u l d be one of c o n t i n u e d g r o w t h for the h e a v y i n o r g a n i c c h e m i c a l field. Some i n d i v i d u a l c h e m i c a l s m a y m o v e faster t h a n others b u t , o v e r - a l l , t h i s segment of the i n d u s t r y s h o u l d a p p r o x i m a t e i t s g r o w t h of the l a s t ten y e a r s . I t is a t the l e v e l of the i n d i v i d u a l producers t h a t t h e challenges w i l l be most k e e n l y felt. T h e companies t h a t k n o w t h e i r facts (even more so t h a n at p r e s e n t ) , t h a t r e a l i s t i c a l l y a n d courageously face these facts, t h a t recognize a n d use p r o p e r l y the o p p o r t u n i t i e s t h a t w i l l be presented, a n d t h a t a b o v e a l l remember t h a t t h e y are b u t i n s t r u m e n t s t h r o u g h w h i c h the interests of m a n y are s e r v e d — o w n e r s , employees, customers, s u p p l i e r s , the c o m m u n i t i e s i n w h i c h t h e y l i v e , even society as a w h o l e — t h e s e are the companies w h i c h w i l l benefit most f r o m the " C h a l l e n g e s of the C o m p e t i t i v e S i x t i e s . " Literature Cited (1) Chem. Eng. News, 37, 27 (May 11, 1959).


CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES

Recommend Documents