The Challenge in Marketing for Domestic Sales in Plastics

9 The Challenge in Marketing for Domestic Sales

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in Plastics B. W. C O L A I A N N I Chevron Chemical Co., Union, N . J.

The plastics industry is growing at the rate of 13 to 15% per year, compared industry.

with a rate of 4 to 5% for all other

This rate of growth for plastic industry is adding

more volume and new products to meet this demand.

Per

haps 50% of the products to be sold in the late 70's are unknown

today, or are unavailable

Such a dynamic industry—which domestic

economy—will

in large

quantities.

is a major factor in our

demand

a

sales

organization

equally dynamic and innovated in its approach.

It must

be more adaptable, more flexible and be able to specialize its efforts in a manner not fully applied today.

The new

plastics sales organization of the 70's will move larger vol umes of products, will sell more on a contract basis, and will direct its sales efforts based on centralized bulk termi nals or off-plant manufacturing

sites. Also, the more com

mon use of distributors will come into play, the

computer

will help reduce costs and increase efficiency, and possibly it may even sell on a catalog type approach.

Τ ooking from the vantage point of the late 60% the so-called "Golden -

L /

Decade," it is not difficult to foresee an even more incredible growth

for the plastics industry—The Golden Decade will spill over its dynamic surge into the "Soaring 70's." A n industry whose growth rate of 13 to 15% per year will continue into the 70's, (compared with all other indus try of 4-5% a year), presents a formidable challenge to the plastics sales organization.

It will demand flexibility in sales policies and procedures

and it will, of necessity, require a specialization that we have talked about but hesitated to do much about. I agree with the statement made by Paul Mayfield ten years ago at this Symposium that the marketing challenge in the 60's was to put the 68

Bateman; Chemical Marketing: The Challenges of the Seventies Advances in Chemistry; American Chemical Society: Washington, DC, 1971.

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Domestic Sales in Plastics

right team, with the right products, selling at the right price ( and I might add-at a right profit), in the right market.

I also agree with Jim Williams

who ten years ago stated that you reached this market—this customer— through a properly organized, well-trained sales organization. But looking into the Soaring 70s, this right team, with its proper direction, needs in addition the added characteristic of change.

W e can-

not cling to the stereotyped sales organization with its fixed areas, covered Downloaded by UNIV OF CALIFORNIA SANTA BARBARA on March 19, 2018 | https://pubs.acs.org Publication Date: June 1, 1971 | doi: 10.1021/ba-1968-0083.ch009

on routine basis, if we are to sustain this tremendous growth and add new products to be sold at a reasonable and fair profit. The change to meet the challenge of the 70's will add a new dimension to the plastics sales organization; it shall couple foresight with action.

The Salesman I do not propose to write a job description here for the plastic salesman of the 70's.

There are enough training manuals and books written

on the subject by far more knowledgeable people than I that cover this subject adequately.

Neither do I propose to type a person as a plastic

salesman nor advise as to how you go about selecting him—or her.

I

throw a "her" in here—for this could be one of the changes in the 70's, and it could be an effective way to go. For the plastic salesman of the 70's, we must assume that we have an intelligent, well-selected, well-trained individual, who in my estimation must have two basic characteristics—i.e., initiative and imagination. he is married, he must—yes must—have a salesman's wife.

If

I will only

interject one point here about recruiting—meet the prospect's wife.

One

lunch, one dinner, and a few leading questions will reveal much and possibly save you from many headaches later on.

Many men feel that they

are married to a traveling man's girl—that is, until they are confronted with his nights away, a relocation, or the time to entertain a bore of a customer.

Training can be rather basic—policies, procedures, services,

and products—especially for the more mature fellow, for I have found the person with strong drive, enthusiasm, and imagination can train himself in the plastics field—on the job.

Most of all, this plastics salesman

of the 70's will find himself in a changed organization requiring more flexibility. H e must be ready to adapt to different situations.

H e will find

too that he has more responsibility.

The Sales Organization The greatest challenge, I feel, will be for the sales organization itself.

It will be customer oriented—but oriented in a special way—so

that the larger volumes of plastics raw materials and products of the 70's can be sold profitably.

I strongly feel that properly organized, the plas-


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tic sales group of the 70's can move these volumes at proportionally and substantially reduced marketing-sales costs, which will help offset the increasing cost spiral continuously developing from other directions. The customer of the 70's for the basic plastics producer will be buying larger volumes, probably on a contract basis, and will be in fields ranging from films to fibers, packaging to construction, and transportation to medical products.

The real sales challenge will be to keep these vol-


umes moving profitably and thus the domestic plastics sales organization must adapt its approach to volume.

This means that the plastic sales-

man of the 70s will have larger account responsibility and his sales effort will truly result in an in-depth penetration of an account.

Disregarding

geographic boundaries in some cases, his knowledge of the customer will be complete from research to production and purchasing to marketing. H e will assist in reducing the transportation and handling costs of his customer, service his product through engineering and production, and even find new outlets for his customers products, (where applicable), as well as his own.

For fear that it might be said that this will be the ubiq-

uitous plastic salesman of the 70's, let it be said that his effort will be only as strong as the support he receives from other equally functional elements of his organization.

His whole marketing organization must be

involved from management to staff, technical service to research, and accounting to advertising.

These organizational elements are all part of

the sales team, and they should constantly be aware of the fact.

For

profitable sales are their future too and that is the name of the game —profit. Distributors Where to draw the line between the high volume type business we have been describing and the next level, offers a further challenge to the plastics sales organization.

Being interested in larger volume solicita-

tion, at reduced marketing costs is fine, but what about the customers?

other

Here, too, change and adaptation will come into play.

I

envision a network of bulk terminals and distributors handling the plastic needs (both resins and converted products) of the medium to small account.

A well-trained, industrious distributor organization guided by

the hands of a creative salesman who is assisted by the complete sales organization, lines.

can

do much to

increase

sales

and broaden

customer

Such a system will not only reduce direct sales costs, but still en-

able the large basic producer to maintain its integrity of quality of products, quality of service, and the overall customer support required by larger volume accounts. The sales organization is the one group which can best guide management as to the most strategic location for bulk storage and processing


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of products, as well as the distribution channels for these products.

Some

sales from such bulk terminals may be sold direct—as blending and formulating are done on location so to speak—to meet the product needs of the medium size customer.

Others will require the speed and flexibility

indicative of a sound jobber or distributor.

This will be another chal-

lenge in the 70's for the plastics sales organization.

T o deteirnine the

most economical channels of distribution based on the volume and area Downloaded by UNIV OF CALIFORNIA SANTA BARBARA on March 19, 2018 | https://pubs.acs.org Publication Date: June 1, 1971 | doi: 10.1021/ba-1968-0083.ch009

requirements of the 70's, the sales organization must rely on the use of a new tool now coming into great popularity as marked by its increasing usage, namely, the computer. Computer I believe the computer and computerized techniques will come into prominence as a sales aid in the 70's—with its proper application being, for example, to advise when to and when not to sell direct and which areas to emphasize.

Utilization of computer-generated data by competi-

tion will prove a strong challenge to the domestic plastics sales organization in the 70's.

Skilled programming of computers can provide in short

time periods your complete costs of solicitation in one area vs. another, which are the most profitable areas, which are the least profitable, and what variable can influence each of these. Among an unlimited host of advantages offered through computerized operations is the speed with which business decisions may be resolved thereby freeing the plastics sales or marketing manager from routine drudgery to becoming once again customer oriented.

Far too many of

these managers today are so bogged down with the details of decision making that regretfully, not enough time is available to measure changing customer needs, wants, attitudes, and buying habits—as well as his own organization's performance, reliability, quality, price, and customer service.

If this additional time made available to him through proper

computer use is spent in re-orienting himself to the customer and the marketplace, the plastics sales manager will quickly recognize opportunities again for improving existing products and services as well as the development of new ones.

Consequently, emphasis may be directed again

to the profitable movement of large volumes of materials.

Yes, the plas-

tics sales and marketing manager must develop a real understanding of the computer and its role in the decision making process. I feel that a computer memory or storage bank will help improve customer service and reduce costs by having available to customers certain routine information on product specifications, applications, and test methods, which formerly would have to be hand carried, mailed, or otherwise require the time of sales or staff people to answer.

Customers could


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have access to this information through a time-sharing system available broadly or on a selective basis as is required. Harnessing this power of the computer to his sales vehicle will enable the plastics sales executive to grasp the concept of his business as a completely integrated system—one which encompasses the contributions of all; the individual salesman, the organization, his services, his staff func-


tions, and the customer—toward the common goals of each—fair and reasonable profits. Putting the computer to use effectively offers not only a challenge but a great opportunity for all of chemical marketing in the future.

This

will certainly be one of the real challenges of the 70's for plastics sales.

Sales Wisdom One word should be said about a constant challenge to all who direct plastics marketing activities—one which has been with us since the early days of plastics and one which will be with us, I am sure in the 70's.

This problem is one of maintaining statesmanship and integrity in

all of our marketing efforts.

Too often has the plastics sales organization

found itself in the dilemma of moving product at poor returns in relation to its investments, or at no profit at all.

Over capacity or slow develop-

ing markets have further complicated the situation.

However, some of

the fault must lie at the desk of the plastic sales manager.

C a l l it hitting

the panic button or excessive topside pressures, he has at times allowed his product to be sold at unrealistic prices based on incomplete competitive data or hearsay alone.

Proper documentation of competitive situa-

tions and market conditions are a must before any sales or marketing manager can make a decision; and going back to an earlier statement I made, the plastics marketing man must remain customer and market oriented and know the strengths and weaknesses of his own organization at all times.

Having accomplished this, sound and intelligent pricing deci-

sions can be made judiciously. Historically, the price trends of all plastics have been downward—a tribute

to

advances.

the

industry's

technological

and

market

development

However, the plastics industry cannot long survive if it can-

not sell its products at a fair price for a reasonable profit.

If it is to

continue its advancement in the 70's at the 13-15% growth rate and offer new and improved products to its customers (it is estimated that in the late 70's, perhaps 50% of the products to be sold are unknown today or not available in large quantities ), a proper return on investment must be maintained. Customers also should be aware that unreasonable returns will result in small expansion, with tighter markets prevailing and, of course, at increased costs to him.

Newer and lower cost products are being devel-


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oped each day and compared with the non-plastic materials they are replacing, the cost of plastic raw materials bargain.

and products are

a real

Maintaining sound principles in marketing and pricing shall

continue to be a challenge in the 70's. Conclusion


What then are the challenges of the Soaring 70s for domestic sales of plastics?

As I see it, it is the challenge to accept change and adapting

that change to a more flexible and progressive sales organization.

The

challenges are ( 1 ) to move larger volumes at lower costs and increased profits; (2) to utilize sales manpower to move these increased volumes; (3) to adjust salesmen to accounts not geography; (4)

to use strategic

bulk processing terminals and industrious distributors to better service medium and small accounts; -(5)

to properly use all the new tools of

change, especially the electronic genius, the computer; (6) to locate markets, provide for marketing and profit emphasis and relieve the sales and marketing managers of details so that they can go about their business of selling and finally ( 7 ) to maintain continued statesmanship i n sales pricing and policies so that fair and reasonable returns will stimulate future growth for the plastics industry. As illustrated in a recent Modern

Plastics presentation ( I ) , plastics

are becoming a vital part of everyone's business and by 1980 plastics will be the most important world-wide material. Being an integral part of our lives—which are under constant change —why cannot plastics sales of the 70's accept this challenge of change for the better—better products, better satisfaction, and better profits. Literature Cited (1)

"Plastics: A 15 Year Outlook," a Modern Plastics Presentation, Spring, 1968. (See Modern Plastics 45 (11), 79 (July 1968).

RECEIVED

July 15, 1968.


The Challenge in Marketing for Domestic Sales in Plastics

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