Reaching the Plastics Customer via the Sales Organization

Reaching the Plastics Customer via the Sales Organization G . J . WILLIAMS

Downloaded by UNIV OF AUCKLAND on December 25, 2017 | http://pubs.acs.org Publication Date: June 17, 1959 | doi: 10.1021/ba-1959-0024.ch007

Plastics Department, The Dow Chemical Co., Midland, Mich.

Sales organization is defined as that part of the marketing group concerned with direct contact with customers. Its immediate objective is to place well-trained salesmen, armed with the right product, service, and information, across the desk from the influence factors in the customer's organization. The complexities of marketing plastics in the 1960's will place a great premium on intelligence, information, and skill. The number of products to be sold will be greatly expanded. Specialization in sales is likely to increase greatly. Customers will be created by providing a plastic that will do a better job than existing materials. The job will not be so much competing with other plastic materials as the creation, development, and satisfaction of entirely new markets for plastic materials. "Depth selling"—recognition that the total organization of the customer contributes to purchasing decision and needs—is the real way to reach a customer. The purchasing agent is the communicating link. Selling is really geared to the needs of research, production, or sales. These make their needs known to the purchasing agent who communicates them to the seller. For the 1960's, markets and objectives must be carefully analyzed with these points in mind.

T h e w o r d s " s a l e s o r g a n i z a t i o n " m e a n that p a r t of the marketing group p r i m a r i l y concerned w i t h t h e d i r e c t c o n t a c t of customers. N e c e s s a r i l y i n c l u d e d are sales people i n t h e h o m e office w h o d i r e c t t h e p r o g r a m s a n d a c t i v i t i e s of the s a l e s m a n . Y o u c a n n o t r e a l l y r e a c h a p l a s t i c s customer w i t h j u s t the sales o r g a n i z a t i o n . I k n o w of n o other i n d u s t r y i n w h i c h the t e a m w o r k of research, d e v e l o p m e n t , p r o d u c t i o n , a n d t h e other p a r t s of t h e m a r k e t i n g g r o u p such as m a r k e t research, t e c h n i c a l service, a d v e r t i s i n g , a n d p r o m o t i o n is so i m p o r t a n t . T h e i m m e d i a t e o b j e c t i v e of a n y sales o r g a n i z a t i o n is t o p l a c e a w e l l t r a i n e d s a l e s m a n , a r m e d w i t h t h e r i g h t p r o d u c t , service, a n d i n f o r m a t i o n , across t h e desk f r o m t h e influence f a c t o r s i n t h e customer's o r g a n i z a t i o n . T h i s i n v o l v e s t w o basic p r o b l e m s : t h e s e l e c t i n g , t r a i n i n g , a n d l o c a t i n g of t h e s a l e s m a n , a n d the s e l l i n g t o t h e customer. 4?

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

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ADVANCES IN CHEMISTRY SERIES


The Salesman Y o u cannot take just any m a n , put a price book i n his hand, and say " y o u are n o w a p l a s t i c s s a l e s m a n . " T h e m a n y o u choose m u s t be c a r e f u l l y selected, t h o r o u g h l y t r a i n e d i n the p l a s t i c s i n d u s t r y , s a l e s m a n s h i p , t h e p r o d u c t s of y o u r c o m p a n y , the services of y o u r c o m p a n y , a n d the philosophies of y o u r c o m p a n y . O n l y t h e n s h o u l d y o u p u t h i m i n a field office to face his a n d y o u r customers. W h i l e t h i s m a y seem e l e m e n t a r y , the c o m p l e x i t i e s of m a r k e t i n g p l a s t i c s i n the 1960's w i l l p l a c e such a p r e m i u m on intelligence, i n f o r m a t i o n , a n d s k i l l t h a t we c o u l d a l l do w e l l to r e v i e w our selection a n d t r a i n i n g p r o g r a m s . O n e of the m a r k e t i n g complexities t h a t we now face, a n d w i l l continue to face to a n i n c r e a s i n g degree i n the y e a r s a h e a d , is the e v e r - e x p a n d i n g group of p r o d u c t s t h a t a sales o r g a n i z a t i o n m u s t h a n d l e . T e n y e a r s ago the t y p i c a l p l a s t i c s sales group h a d one or t w o basic p r o d u c t s to sell. T o d a y t h i s l i s t has g r o w n t o s i x , eight, or t e n a n d , w i t h t h i s expansion i n the p r o d u c t l i n e , there has come a c o r r e s p o n d i n g increase i n the m a r k e t s b e i n g s o l d . A s a l e s m a n c a n l e a r n a n d a p p l y o n l y so m u c h a n d i t w o u l d seem t h a t s p e c i a l i z a t i o n , w i t h a l l its d r a w b a c k s , w i l l be a necessity i n the 60's. W e c o u l d spend hours, a n d even d a y s , d e b a t i n g the r e l a t i v e m e r i t s of m a r k e t s p e c i a l i z a t i o n vg. p r o d u c t s p e c i a l i z a t i o n vs. some other k i n d of s p e c i a l i z a t i o n . K e e p y o u r customers' p r o b l e m s i n m i n d w h e n y o u arrange y o u r sales o r g a n i z a t i o n . I d e a l l y , the customer w o u l d l i k e to deal w i t h one m a n i n a n o r g a n i z a t i o n w h o c o u l d handle a l l of his p r o b l e m s . W h i l e t h i s m a y not be possible, do not confuse a n d i r r i t a t e y o u r customer w i t h too m a n y people. T h e s a l e s m a n needs help a n d d i r e c t i o n i n the o r g a n i z a t i o n of his w o r k and account coverage. D e p e n d i n g u p o n the g e o g r a p h i c a l area a n d the i m p o r t a n c e of accounts t o be contacted, a s a l e s m a n w i l l p r o b a b l y average t w o to three c a l l s per d a y . W i t h v a c a t i o n s , sickness, sales meetings, etc., t h e average s a l e s m a n has a b o u t 180 d a y s t o spend w i t h his customers. This l i m i t e d t i m e m u s t be used effectively. I n most c h e m i c a l companies, a m a j o r i t y of the d o l l a r v o l u m e is done w i t h a m i n o r i t y of the accounts. T h i s is also g e n e r a l l y t r u e i n the p l a s t i c s i n d u s t r y . T h e m a j o r p o r t i o n of the t i m e of a sales o r g a n i z a t i o n has t o be spent w i t h i m p o r t a n t accounts, either a c t u a l o r p o t e n t i a l . B u t , a s a l e s m a n m u s t be g i v e n t i m e to w o r k w i t h new or m a r g i n a l accounts, a n d s e l l i n g i n the 1960's w i l l necessitate a n i n c r e a s i n g a m o u n t of t i m e spent o n secondary s e l l i n g . P e r h a p s a d i v i s i o n i n t o 5 0 % m a j o r accounts, 2 5 % new accounts, a n d 2 5 % secondary s e l l i n g w o u l d be a p p r o p r i a t e . E a c h of us m u s t a n a l y z e his o w n business, i n order t o m a k e the p r o p e r a l l o c a tion. Customers N o w t o t h e i m p o r t a n t business of s e l l i n g the account. G e n e r a l l y s p e a k i n g , p l a s t i c s customers f a l l i n t o one of three categories: A customer who buys the product to make it into a component used by another manufacturer. A customer who buys the product and makes it into a finished product ready for the market. A customer who does not buy from your company at a l l , but buys components made from your products. Y o u m a y q u a r r e l w i t h the i n c l u s i o n of t h e t h i r d category i n t h e d e f i n i t i o n of a customer, b u t he c a n a n d does select y o u r p r o d u c t a n d he does f u r n i s h t h e CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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m o n e y t h a t p a y s y o u r i n v o i c e . A s s u c h , he is e n t i t l e d t o be c a l l e d a customer a n d t o be t r e a t e d as one. E a c h of these c u s t o m e r categories has separate a n d d i s t i n c t p r o b l e m s , a n d i t c a n n o t be reached b y a n y one m a r k e t i n g f o r m u l a . W e s h o u l d also r e m e m b e r t h a t each customer w i t h i n a category i s a n i n d i v i d u a l h a v i n g p e c u l i a r a n d d i s t i n c t p r o b l e m s . A l l customers h a v e one t h i n g i n c o m m o n — a love of profits. T h e s u p p l i e r w h o keeps t h i s i n m i n d a n d directs h i s s e l l i n g efforts t o w a r d p r o f i t f o r his c u s t o m e r w i l l g e n e r a l l y be a v e r y successful b u s i n e s s m a n . E c o n o m i s t s m a y t h i n k of m a n y more approaches, b u t i t seems t o m e t h a t there a r e three w a y s t o increase p r o f i t s — l o w e r costs, higher prices, greater v o l u m e . E a c h a n d e v e r y one of o u r customers is interested i n one or m o r e of these p r o f i t - m a k i n g routes. H o w c a n a s a l e s m a n sell " p r o f i t " t o t h e three categories of customers w e h a v e defined? T h e customer w h o m a k e s components f o r another m a n u f a c t u r e r is p r i m a r i l y interested i n l o w e r i n g h i s costs a n d i n s e c u r i n g new business. A salesm a n w h o h a s n o t h i n g i n h i s h e a d , b u t o n l y a p r i c e b o o k i n h i s p o c k e t , has l i t t l e t o offer t h i s customer. H e c a n help l o w e r costs i f he k n o w s enough a b o u t h i s p r o d u c t s , h a n d l i n g , a n d m a t e r i a l processing to get r a w m a t e r i a l s i n t o t h e customer's p l a n t , t h r o u g h t h e m a c h i n e s , p a c k a g e d , a n d d e l i v e r e d t o the c a r r i e r a t t h e lowest possible u n i t cost. T h i s c a n a n d m a y i n v o l v e a change i n r a w m a t e r i a l s , a change i n processing techniques, o r a change i n m a t e r i a l s h a n d l i n g . T h e s a l e s m a n w i l l use other services of h i s c o m p a n y t o solve these p r o b l e m s ; b u t he m u s t k n o w h i s customer's business a n d be w e l l t r a i n e d t o recognize p r o b l e m areas a n d t o offer possible solutions. T h e a l e r t , w e l l - t r a i n e d salesman s u p p o r t e d b y a n o r g a n i z a t i o n w i t h good c o m m u n i c a t i o n s c a n d o m u c h t o secure new business for t h e c u s t o m m a n u f a c t u r e r . W e a l l h a v e contacts w i t h c o m p a n i e s t h a t need p l a s t i c p a r t s . O u r customers m a k e p l a s t i c p a r t s . I t is a n i m p o r t a n t p a r t of o u r j o b , as a sales o r g a n i z a t i o n , t o b r i n g these t w o interests together. T h e second a n d t h i r d categories of customers, those w h o m a k e or b u y a p l a s t i c p a r t f o r t h e i r o w n sale or use, h a v e m u c h t h e same interest i n lower costs a s t h e c u s t o m m o l d e r . T h e y a l s o h a v e a b r o a d e r i n t e r e s t — t h e search for new, better, different, o r more e c o n o m i c a l a r t i c l e s t o use o r s e l l . I t is t h i s broader interest t h a t creates t h e greater challenge f o r t o d a y ' s p l a s t i c sales o r g a n i z a t i o n . T h e p r o p r i e t a r y m o l d e r , m a k i n g a l i n e of housewares, is i n tensely interested i n finding new i t e m s t o a d d t o h i s line o r a change i n his c u r rent l i n e t h a t w i l l increase i t s s a l a b i l i t y . H e is c o n s t a n t l y s e a r c h i n g f o r new m a r k e t i n g concepts a n d new sales tools. T o sell t o t h i s customer, a sales o r g a n i z a t i o n m u s t p r o v i d e a t least some s p e c i a l services, besides t h e u s u a l ones of a good p r o d u c t , good s u p p l y , a n d t e c h n i c a l help. P e r h a p s t h e greatest challenge is offered b y those customers w h o are n o w u s i n g o r c a n use a p l a s t i c i n t h e m a n u f a c t u r e of a n a r t i c l e t h a t t h e y s e l l . T h i s is t h e r e a l a r e a of d e v e l o p m e n t a l s e l l i n g . T h e sales o r g a n i z a t i o n m u s t be a l e r t to the p r o b l e m s a n d needs of these i n d u s t r i e s , develop a p r o d u c t t o fill t h e need, p r o v e o u t its u t i l i t y a n d — l a s t b u t n o t l e a s t — s e l l the customer. A p p l i a n c e s used t o be e s s e n t i a l l y 1 0 0 % m e t a l a n d t h e a p p l i a n c e i n d u s t r y was faced w i t h s u c h p r o b l e m s as c o r r o s i o n , heat or e l e c t r i c a l c o n d u c t i v i t y , a n d l i m i t a t i o n of design flexibility. F o r t u n a t e l y , o u r i n d u s t r y recognized these p r o b l e m s a n d developed p l a s t i c s t h a t helped m a k e better a p p l i a n c e s a t l o w e r costs. I n m a n y i n d u s t r i e s t h e solvents used i n p r o t e c t i v e coatings created CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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p r o b l e m s of flammability or t o x i c i t y . T o d a y , m a n y of these p r o b l e m s are s o l v e d b y the use of w a t e r - b a s e p a i n t systems. The pharmaceutical and cosmetic i n d u s t r y w a s a n d is faced w i t h a serious p a c k a g i n g p r o b l e m . M e t a l rusts a n d glass b r e a k s . P l a s t i e packages, p a r t i c u l a r l y those of p o l y e t h y l e n e , h a v e s o l v e d these p r o b l e m s i n m a n y a p p l i c a t i o n s . H e r e we are not j u s t r e a c h i n g a customer. W e are a c t u a l l y c r e a t i n g a customer b y p r o v i d i n g a p l a s t i c t h a t w i l l do a j o b better t h a n a n e x i s t i n g m a t e r i a l or w i l l do a j o b t h a t j u s t c o u l d not be done before. T h i s is the w a y our i n d u s t r y has g r o w n a n d t o continue t h i s g r o w t h is the r e a l challenge of t h e 60's. O u r j o b is not so m u c h c o m p e t i n g w i t h o t h e r p l a s t i c m a t e r i a l s as i t is the c r e a t i o n , d e v e l o p m e n t , a n d s a t i s f a c t i o n of e n t i r e l y new m a r k e t s for p l a e t i c m a t e r i a l s . Downloaded by UNIV OF AUCKLAND on December 25, 2017 | http://pubs.acs.org Publication Date: June 17, 1959 | doi: 10.1021/ba-1959-0024.ch007

Selling in Depth I h a v e spent some t i m e d e f i n i n g the t y p e s of sales s i t u a t i o n s c o n f r o n t i n g o u r p l a s t i c s i n d u s t r y , because I t h i n k t h a t i t is necessary t o a n u n d e r s t a n d i n g of " d e p t h s e l l i n g , " w h i c h is the r e a l w a y t o reach a customer. W h a t do w e m e a n b y t h i s t e r m ? I t is a r e c o g n i t i o n , on the p a r t of the seller, t h a t the t o t a l o r g a n i z a t i o n of the customer c o n t r i b u t e s t o t h e needs a n d p u r c h a s i n g decisions. T h i s b e i n g t r u e , i t is necessary t h a t the sales o r g a n i z a t i o n be i n t i m a t e l y f a m i l i a r w i t h a l l phases a n d f u n c t i o n s of t h e customer's o r g a n i z a t i o n a n d business. O n l y t h r o u g h such f a m i l i a r i t y c a n we do the best j o b for o u r customer a n d for ourselves. M o s t companies c a n d i v i d e t h e i r business i n t o the f u n c t i o n s of p u r c h a s i n g , research a n d d e v e l o p m e n t , engineering, p r o d u c t i o n , m a r k e t i n g , a n d m a n a g e m e n t . I n larger companies, these m a y be separate a n d d i s t i n c t d e p a r t m e n t s w i t h m a n y employees. I n a s m a l l e r c o m p a n y , the " b o s s " m a y p e r f o r m one, t w o , or a l l o f these functions. R e g a r d l e s s of the o r g a n i z a t i o n a l p a t t e r n , each of these f u n c t i o n s m u s t be p e r f o r m e d i n the o p e r a t i o n of a n y m a n u f a c t u r i n g a n d s e l l i n g business. T h e i m p o r t a n t t h i n g for us to r e m e m b e r is t h a t e v e r y one of these f u n c t i o n s c a n influence the decision to use or b u y y o u r p l a s t i c . W h e n a customer has a p r o d u c t i n research or p r e l i m i n a r y engineering, m a n y f u n d a m e n t a l decisions are being m a d e such as t o size, shape, a n d m a t e r i a l s of c o n s t r u c t i o n . T h e sales o r g a n i z a t i o n c a n be of r e a l service t o the c u s t o m e r , t o y o u , a n d t o o u r i n d u s t r y a t t h i s stage. I f p l a s t i c s c a n be used i n the customer's p r o d u c t , now is the t i m e t o m a k e t h e d e c i s i o n . I f the a p p l i c a t i o n is c r i t i c a l a n d s p e c i a l p l a s t i c s s h o u l d be used, n o w is the t i m e t o get t h e m s p e c i fied. I t is so m u c h easier to s t a r t w i t h t h e r i g h t p l a s t i c t h a n t o correct m i s t a k e s or c o n v e r t t o p l a s t i c s after the p r o d u c t is i n p r o d u c t i o n . I f we have done the correct j o b of h e l p i n g t h e customer w i t h the design a n d selection of m a t e r i a l s , we s h o u l d n o t h a v e m a n y p r o d u c t i o n p r o b l e m s . U n f o r t u n a t e l y , we do not a l w a y s get the chance to d o t h i s a n d , even w h e n we do, we sometimes m a k e m i s t a k e s . T h e n too, o u r i n d u s t r y is c h a r a c t e r i z e d b y constant change a n d i m p r o v e m e n t . A l l of t h i s means t h a t o u r sales o r g a n i z a t i o n m u s t f o l l o w our customer's p r o d u c t i n t o p r o d u c t i o n . H e r e we c a n a g a i n assist t h e customer b y h e l p i n g h i m operate a t m a x i m u m efficiency a n d lowest costs. T h i s m a y i n v o l v e m o d i f i c a t i o n s of either the m a t e r i a l used or processi n g techniques. O n e t h i n g is s u r e — y o u r sales o r g a n i z a t i o n cannot help i f i t does n o t k n o w y o u r customer's p r o d u c t i o n processes. I n t h e d i s c u s s i o n of s e l l i n g profit to y o u r customers, increased v o l u m e was specified as one p r o f i t route. A l l p a r t s of a customer's o r g a n i z a t i o n are interested i n v o l u m e , b u t y o u m u s t a d m i t t h a t n o t h i n g is nearer a n d dearer CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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to a salesman's heart t h a n v o l u m e . A n d , more t h a n a n y other group i n a c o m p a n y , a sales o r g a n i z a t i o n is measured b y t h e v o l u m e i t c a n generate. P l a s t i c s are v e r y v e r s a t i l e m a t e r i a l s , a v a i l a b l e i n a w i d e color range a n d capable of being f o r m e d i n t o t h e most i n t r i c a t e shapes. T h e i r correct use c a n do m u c h t o increase t h e s a l a b i l i t y o f a customer's p r o d u c t . T h e use of p l a s t i c packages for screws, food, a n d c l o t h i n g ; p l a s t i c t o y s a n d housewares, p l a s t i c g a r d e n hose, l a t e x p a i n t are b u t a few examples. Y o u r customer's sales o r g a n i z a t i o n is v i t a l l y interested i n these new p r o d u c t ideas. O u r customer also has sales p r o b l e m s . W e s h o u l d k n o w these p r o b l e m s a n d use o u r sales o r g a n i z a t i o n t o help solve t h e m . O n l y i n c e r t a i n s i t u a t i o n s does m a n a g e m e n t itself d i r e c t l y m a k e a p u r c h a s i n g d e c i s i o n , b u t its presence is felt i n a l l the p a r t s of a customer's o r g a n i z a t i o n . I f we a r e t o sell i n d e p t h , we m u s t h a v e the p e r m i s s i o n a n d cooperative s u p p o r t of t h e customer's m a n a g e m e n t . T h i s c a n best be a c h i e v e d b y good p e r f o r m a n c e as a s u p p l i e r , b u t i t m a y also be necessary t o e x p l a i n a n d sell y o u r company's philosophy a n d its advantages. A t t h i s p o i n t the question a r i s e s : W h e r e does t h e p u r c h a s i n g agent fit i n t o t h i s sales p r o g r a m ? W e l l , he is t h e answer t o o u r q u e s t i o n : H o w d o w e reach t h e c u s t o m e r v i a t h e sales o r g a n i z a t i o n ? A s y o u r sales o r g a n i z a t i o n is t h e c o m m u n i c a t i n g l i n k t o a n d f r o m t h e customer, t h e p u r c h a s i n g agent is t h e c o m m u n i c a t i n g l i n k t o a n d f r o m y o u . W h e n we speak of s e l l i n g t o research, p r o d u c t i o n , or sales, we r e a l l y m e a n t h a t w e sell t o t h e i r needs. T h e i r needs a n d p r o b l e m s a r e m a d e k n o w n t o t h e i r p u r c h a s i n g agent a n d he i n t u r n c o m m u n i c a t e s w i t h us. L i k e w i s e , i t i s t o the p u r c h a s i n g agent t h a t w e t r a n s m i t s o l u t i o n s for these needs a n d p r o b l e m s . M a n y t i m e s t h e p u r c h a s i n g agent w i l l a d v i s e us t o t a l k d i r e c t l y w i t h research, p r o d u c t i o n , o r sales. S u c h d i r e c t discussions a r e v e r y b e n e f i c i a l , b u t t h i s d e c i s i o n m u s t a n d s h o u l d be m a d e b y the p u r c h a s i n g agent. A s i m p l e c h a r t shows t h i s p u r c h a s i n g a g e n t - t o t a l c o m p a n y r e l a t i o n s h i p v e r y effectively ( C h a r t I ) . N o w w h e n w e place o n t h i s c h a r t o f t h e customer's o r g a n i z a t i o n a s i m i l a r c h a r t of t h e seller's o r g a n i z a t i o n , w e h a v e t h e complete buyer-seller relationship ( C h a r t I I ) . RESEARCH

ENGINEERING

PRODUCTION

MARKETING

AAANAGEMENT

CHART II

SALES ORGANIZATION

t

PURCHASING AGENT

CHART I

RESEARCH

ENGINEERING

PRODUCTION

SALES

MANAGEMENT



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A l l p a r t s of the seller's o r g a n i z a t i o n c a n , s h o u l d , a n d do c o n t r i b u t e t o a n y successful sale. A l l p a r t s of the customer's o r g a n i z a t i o n c a n , s h o u l d , a n d do c o n t r i b u t e to a successful purchase. S e l l i n g a n d b u y i n g are t r u l y cooperative t e a m efforts a n d , as w i t h a n y t e a m , y o u m u s t h a v e a l e a d e r — t h e m a n w h o calls the signals a n d directs the t e a m effort. W i t h the b u y e r this is the p u r c h a s i n g agent a n d w i t h the seller i t is the sales o r g a n i z a t i o n .


Conclusions D i r e c t i n g the seller's t e a m effort i n the 1960's w i l l be no easy j o b . The pace w i l l be fast, w i t h change the r u l e , r a t h e r t h a n the exception. A few t h i n g s — p e r h a p s f u n d a m e n t a l s — w i l l a l w a y s be w i t h us. T h e 1960's w i l l be a t i m e of good business w i t h intense c o m p e t i t i o n . O u r r e a l j o b is to create new m a r k e t s for p l a s t i c s , not j u s t t o sell a g a i n s t each other. W e w i l l need a sales o r g a n i z a t i o n e q u i p p e d w i t h m e n w h o are w e l l trained, creative, and industrious. M a r k e t s a n d m a r k e t i n g objectives m u s t be c a r e f u l l y a n a l y z e d a n d s p e c i fied. M u c h t i m e a n d effort c a n be wasted r i d i n g the w r o n g horse. K n o w y o u r customer. A customer is a complex business o r g a n i z a t i o n h a v i n g m a n y a n d v a r i e d p r o b l e m s , needs, a n d desires. A n a l y z e , define, a n d fill these needs. W o r k t h r o u g h the p u r c h a s i n g agent. A l w a y s remember to sell p r o f i t for y o u r customer. It will make you a rich man.


Reaching the Plastics Customer via the Sales Organization

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