The Professional Side
I/EC
The Man in Chemical Market Research Chemical m a r k e t r e s e a r c h — a steppingstone t o the t o p o f chemical industry or a satisfying c a r e e r within itself f \
N E W INDUSTRIAL FIELD, chemical
market research, opened u p near the start of World W a r I I for science graduates, principally chemists and chemical engineers. It has grown rapidly and is growing still, becoming a full p a r t n e r in industrial m a n a g e ment along with production, sales, engineering, and finance. Actually, market research is an old technique practiced since the chemical industry started, though not recognized by that n a m e . Market analysis used to be performed by company heads who accomplished results largely by business experience and good j u d g m e n t . However, increased research budgets brought into being more and more chemical products and uses. T h e industry grew rapidly in size and complexity. By the early forties, company executives could not take time to perform their own chemical market research. O n e or two employees were delegated the task of obtaining information on which to base decisions, but such assignments were not called chemical market research. Market Research Development During this period of trial and error, the facts gathered were often a n end in themselves. Statistics were collected and analyzed, but the "early gatherers" did not really interpret the d a t a or influence m a n a g e m e n t decisions. Often, the greatest use of such efforts was m a d e by the company sales departments. It is a tribute to this comparatively small group of information seekers who—once placed in positions of responsibility for obtaining essential facts—recognized their problems and decided early in the g a m e to do something constructive about them. With World W a r I I bringing new problems of scarcities, allocations, and expansions to the chemical
industry, came the founding of a "chemical market research" discussion group wherein men sought to define and grow in this new profession. At first, meetings were irregular and informal, but interest grew and, by 1945, the group organized the Chemical Market Research Association. In the past 13 years, membership has increased to approximately 575. M e m b e r s today come from market research departments of the chemical a n d allied products industry; and from purchasing departments, sales and development, and economics and financial departments. Included also are top company executives who have been active members for a long time and who wish to maintain their interest and friendships in the group. Functions T h e original small group of market researchers interested new men in this field and, in time, more and more chemical companies realized the value of having accurate market data. Companies set u p within their organizations—often as a staff group—market research divisions responsible for various essential functions—i.e., sales analysis of present products m a d e periodically in order to keep m a n a g e m e n t informed of the position of products in the industries served; estimates of future growth of products or industries, surveys of the possible market goal for products still in the research or pilot-plant stage; surveys involving plant locations; and over-all economics of groups of products or industries. Users of market research include the research department, where the importance of good research has long been recognized by top management. Research activities should be organized on as efficient a basis as possible,
Richard E. Chaddock, educated as a chemical engineer at the University of Michigan, has b e e n associated with the Hercules P o w d e r Co. for the past 13 years. Prior to that time, he spent 5 years with Atlas P o w d e r Co. D u r i n g his career in the chemical industry, he has b e e n involved in pilot-plant design a n d operation, plant-design engineering, research administration, a n d chemical market research. His present position is director of development of the Virginia Cellulose Department of Hercules. He is serving this year as president of the Chemical Market Research Association. as only a few research projects develop into a commercially profitable product. Personnel and m a n agement in research should take advantage of all opportunities to obtain facts before initiating research programs and evaluating research results. Chemical market research groups help in this work by studying constantly and surveying thoroughly the needs of industry. Information on various industries and their problems is easily obtained, but it is often difficult to separate practical from theoretical problems. A market research m a n should be able to tell his company what problems arc worthy of research efforts and w h a t their effective solution could mean in terms of markets. T h e final follow-up of market studies tells m a n a g e m e n t whether or not a new product will be worth the cost of production. This type of market study is difficult and probVOL. 50, NO. 5
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MAY 1958
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ably less accurate t h a n others but is of primary importance to top m a n agement in investing a company's funds. M a r k e t studies of this n a t u r e are a n o t h e r tool for m a n a g e m e n t to use in evaluating the business risks which surround the introduction of new products. Plans for new construction proj ects or for expansion of existing plants, when presented for m a n a g e m e n t approval, should be accom panied by a careful market analysis. A market research group, working outside a n operating d e p a r t m e n t , can possibly be more objective in analyzing future markets t h a n any other group. This does not m e a n that these personnel will be m o r e accurate, but they will have a de tached viewpoint and will not be u n d e r pressure to have their findings justify a predetermined answer. These studies are of a basic n a t u r e and take into account such factors as present competitive products, new competitive research products, trends within the industry being served, and present and future selling prices. A market research group must keep m a n a g e m e n t informed, by means of objective surveys, of major industrial activity in the United States a n d more particularly of activity in the chemical industry. M a n a g e m e n t must not only be familiar and u p to date on the past, present, a n d potential future of its own company but also " i n the k n o w " on the plans of competitive com panies in chemical and related industries. This involves prepara tion of periodic reports—probably on an a n n u a l basis—dealing with growth rates of major industries, growth of various segments of the chemical industry, and a discussion of various trends taking place within different divisions of chemical in dustry. Qualifications for Chemical M a r k e t Researchers
CORPORATION MIDLAND.
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Let's look now at the type of m a n needed in chemical market research. H e must possess the required em ployee attributes of good character, honesty, a n d reliability. His edu cational background should include chemistry or chemical engineering. A m a n should not be expected to learn chemistry on the j o b while working as a chemical market re searcher. M u c h m o r e t h a n the
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I n chemical market research, the worker must be intellectually honest; he must inspire confidence in co workers, superiors, a n d people out side his company. T h e honest em ployee will not line u p his opinions with those of another, or of a group, in order to further his own ambitious plans. His conclusions should be his own after he has consulted, discussed, and weighed all the factors involved in a problem. Inquisitiveness is a real virtue in chemical market research. T h e person with a keen interest a n d desire to know the reasons a n d possessing t h e ability to think criti cally a n d clearly should do well. Good j u d g m e n t , patience, a n d cooperativeness a r e also important. Cooperativeness is essential, as this field is one where good team work results in good market research. T h e congenial, cooperative worker helps make the tedious aspects of market research less burdensome. Contacts outside his company are pleasant a n d more productive of results.
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ordinary garden variety of chemistry is required. Chemistry is an orderly science, a n d to the uninstructed, it offers m a n y pitfalls. Knowledge of or experience in subjects such as economics a n d statistics would be a decided asset. T h e r e have not been any formal college courses offered in chemical market research so far, a n d most individuals obtain their know-how on the j o b . Hence, good j u d g m e n t and discretion must be exercised in selecting employees for the market research group in a chemical com pany. T h e too eager-, too impul sive-type individual can be upsetting to a n already organized group. Training is necessarily slow as there is m u c h to learn a n d p u t to use. Therefore, patience in both trainee and trainer is a requisite.
In m a n y chemical companies, per sonnel for t h e market research group are recruited from within the organization. Conversely, produc tion a n d sales departments often obtain personnel from t h e market research department. N o one can deny the value of this experience, both to the individual's ambitions and to his employer's needs. T h e better chemical market researcher he tries to be, t h e better j o b he accomplishes. W h e n he learns to
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do the j o b well a n d with ease, he will probably be tapped for a promotion that will take him out of direct market research. However, the skills he has acquired in objectivity, open-mindedness, and good j u d g ment will be his forever. W i t h the chemical industry's innate habit of revolutionary change a n d progress, the a d a p t a b l e market researcher is in a n enviable position to advance more, rapidly t h a n m a n y . Not always, however, do market researchers use this field as a steppingstone to advancement. T h e r e is a nucleus of experienced and very able chemical market researchers who have become so adept in the field and so dedicated to this artscience that they have m a d e careers of it. T h e y are recognized within and outside their respective companies and are undoubtedly so needed where they are that they will continue their careers in this field. T h e y have set high standards of proficiency and through their continued example, speeches, papers, and other contributions are training today's neophyte. T h e y know better than most that chemical market research is a Topsy that is still growing; that chemical market research, by its very nature, must continue to grow with the industry of which it is an integral p a r t ; otherwise, too m a n y executive actions would bog down and many expensive errors would accrue to company stockholders. An individual considering chemical market research as a career can obtain a bird's-eye view of this field by reading a collection of papers by authorities on the subject available in the volume " C h e m i c a l M a r k e t Research in Practice" (Reinhold, New York). These papers were prepared and given as lectures in 1953 at the Case Institute of Technology, and at the University of Delaware in 1954; but the principles and techniques of chemical market research are unchanged basically since then. T h e lecturers, under the auspices of the Chemical M a r k e t Research Association, contributed their knowledge as a service to the industry and in the hope that more people would understand and enter the field. ; T h e scope of chemical market research is broad,· a n d it is both challenging and rewarding.
