You are on page 1of 64

TECHNICAL MARKETING

OF POLYMER PRODUCTS

May 12, 2005


 

                                                                           songsakchai@gmail.com 
Attitude about sales activities
and sales job . . .

... A practical life is full of customers


around us.

... We sell every day.

2
Sales activity is more of day-to-day in
nature.

Marketing involves series of


planning,

3
Sales activity is more of day-to-day in
nature.

Marketing involves series of


planning,
execution of the plan,

4
Sales activity is more of day-to-day in
nature.

Marketing involves series of


planning,
execution of the plan, evaluation

5
Sales activity is more of day-to-day in
nature.

Marketing involves series of


planning,
execution of the plan, evaluation
and
revision of plans

6
Sales activity is more of day-to-day in
nature.

Marketing involves series of


planning,
execution of the plan, evaluation
and
revision of plans over a broad, or
very broad time frame, to enhance
Selling
sales is a “subset” of marketing.
activity.

7
Definition of marketing by
American Marketing Association:

"The process of planning and executing


the conception, pricing, promotion, and
distribution of ideas, goods, and
services to create exchanges that
satisfy individual and organizational
objectives." (AMA 1985)

8
Marketing is . . .

Creation and retention of customers


under mutual satisfied value(s).

9
Marketing is . . .

Creation and retention of customers


under mutual satisfied value(s) at
profit.

10
Basic situation in modern
world market : needs are more
and more specific.

...niche

11
Specific needs (niche) can be
predicted.

 . . .Requires vision
& imaginati
on

12
What needs to be clear in marketing:

 1) Objective(s) of a product


2) target group(s)
3) product’s limitation(s)
4) v a l u e (s)
- tangible   
- intangible

13
Mandatory Activities of Marketing:

- steps of approaches
- collection of facts and “weave” them
in an organized manner to achieve

an objective of the presentation


- presentation

14
Sources of facts to be collected:

- first hand
-  second hand

15
Technical marketing is a marketing by
which relevant technical knowledge is
indispensable in the application.

-          processing
-          applications

16
Common situation in the marketing
of highly technical products:
- Much higher cost/price compared to the
common products of similar application.

- Requires the approach to the key decision-


maker(s).
- Long-way process of ground works prior to
becoming continuous business.

17
Two categories of products of
polymers that require technical
marketing:

A) Raw materials

B) Semi-finished and finished


products

18
Category A : raw materials

- material properties

- where the prospects lies


- material processing/application conditions
and limitation
- investment and its return

19
E.g. 1 An extra-high modulus fiber
for
structural composite
application.
- material properties
- where the prospects lies
- material processing conditions and limitation
- investment and its return for each application

Considerations specific to this product and


application:
- weaving pattern selection

20
E.g. 2 A difunctional molecule to
react
with diamine for epoxy
- material properties
modification.
- where the prospects lies
- material processing conditions and limitation
- investment and its return for each application

Considerations specific to this product and


application:
- compatibilities, dispersion, adhesion,
phase, dynamic properties

- stoichiometry and sequence of addition

21
E.g. 3 A crosslinkable processing aid
for
rubber compounding.
- material properties
- where the prospects lies
- material processing conditions and limitation
- investment and its return for each application  

Considerations specific to this product and


application:
- optimized combination of the loadings of
the processing aid & the vulcanizing agent

22
Category B : semi-finished &
finished
products
- why should it works for the application
- material properties, compound properties
- material selection, selections of sizes and
forms
- realistic application conditions

- evaluation ⇒ ⇒ ⇒ quantitative return on


investment

23
E.g. 1 FFKM parts (o-rings, gaskets,
valve-
stem packings) for severe
process
- why should it works for the application

conditions.
- material properties, compound properties

Consideration specific to this product group:

24
25
E.g. 1 FFKM parts (o-rings, gaskets,
valve-
stem packings) for severe
process
- why should it works for the application

conditions.
- material properties, compound properties
- material selection, selections of sizes and forms
- realistic application conditions  

Consideration specific to this product group:

26
27
28
E.g. 1 FFKM parts (o-rings, gaskets,
valve-
stem packings) for severe
process
- why should it works for the application

conditions.
- material properties, compound properties
- material selection, selections of sizes and forms
- realistic application conditions  

- evaluation – quantitative return on investment

Consideration specific to this product group:

29
Price & Initial Cost vs Overall
Cost

30
Price & Initial Cost vs
Overall Cost (contd.)

31
Key Components of
Down-Time Cost

 Production opportunity lost

 Power factor

 Man-hours

32
Price & Initial Cost vs
Overall Cost (contd.)

33
Price & Initial Cost vs
Overall Cost (contd.)

34
E.g. 1 FFKM parts (o-rings, gaskets,
valve-
stem packings) for severe
process
- why should it works for the application

conditions.
- material properties, compound properties
- material selection, selections of sizes and forms
- realistic application conditions  

- evaluation – quantitative return on investment

Consideration specific to this product group:


- comparison with competitive FFKM parts

35
36
E.g. 2 Gloves of Kevlar® for protection
against
- why shouldcut and
it works for theslash.
application
- material properties, compound properties
- material selection, selections of sizes and forms
- realistic application conditions
- evaluation – quantitative return on investment

Considerations specific to this product group:

37
38
E.g. 2 Gloves of Kevlar® for protection
against
- why should it cut and
works for slash.
the application
- material properties, compound properties
- material selection, selections of sizes and forms
- realistic application conditions
- evaluation – quantitative return on investment

Considerations specific to this product group:

- how to derive the actual cost from worker


injury to be agreed upon by all parties
concerned.

39
E.g. 3 Flue duct expansion joints of
Viton®
for services under acidic,
high
temperature atmosphere.

40
41
E.g. 3 Flue duct expansion joints of
Viton®
for services under acidic,
high
- why should it works for the application
temperature
- material properties, atmosphere.
compound properties

Considerations specific to this product group:

42
43
Compounds of Viton® May Include
One or more elastomers of different classes.
Fillers (reinforcing or non-reinforcing)   
– Carbon black
– Non-black
– Others for special characteristics
• Metal oxides Stabilizers
• Curatives/accelerators Extending oils
• Pigments Plasticizers

The selection, quality and quantity of each ingredient affect


seal performance and reliability!

44
   

45
46
E.g. 3 Flue duct expansion joints of
Viton®
for services under acidic,
high
- why should it works for the application
temperature
- material properties, atmosphere.
compound properties

- material selection, selections of sizes and forms


- realistic application conditions
- evaluation – quantitative return on investment

Considerations specific to this product group:

47
Six Major External Environments
to Consider
- Technological
- Economic
- Social / Cultural / Practices (Customer)
- Political / Legal
- Natural / Climatic
- Competition

48
Strategic Focus Grid

High

Follower                     Interact

Customer 
Focus

Isolate            Shaper

Low

 Low Technology Focus      High


49
In reality:
1) One raw material is required to be marketed for

various applications,
One finished product or even various
is required to beindustries.
marketed
for various industries.
2) One market may have more than one product

to serve.
⇒ Need to operate with market (segment)
leader and product leader

50
Examples of market “segments”
Raw materials:
Adhesive, automotive, coating, construction,
footwear, military, wire & cable, general plastics,
general rubber, trading.

Finished products:
Automotive, cement, ceramic, consumer products,
electrical appliance, electronic, food, glass, metal
processing, military, OEM, oil & gas exploration,
plastic, packaging, petrochemical, power
generation, rubber, etc.

Segmentation should be manageable.

51
Two Essential Industrial
Leading Staff in Marketing

- product leaders

- segment leaders

52
roduct Leader’s Role

)    pricing

- currency fluctuation

- import duty classification

- import duty situation

)    delivery

)    allocation of products as well as resources across the product lines

)    inventory planning

)    techniques (literatures, first-hand info, etc.)

- literatures

- from supplier

- academics

- consult supplier

- customer experience

- first hand info

- lab test 53
- trial with customer
egment Leader’s Role

)    communicates with customers

)    learn the product details from the product leaders

)    gathers products to be offered as a package in the assigned segment

)    applicability

- process barrier

- consumer behavior, value and practices (end user’s side)

- product evaluation, drive to commercialization

)    define commercial barrier/opportunities

- market conditions

- customer behavior; mind set (overall)

- niche search

)    work closely with product leader on delivery schedule, biz development,

market info update, pricing, allocation and inventory.

54
)    competitive situation update
How much/how deep

technical consideration is
Factors:
 - stage
required?
 - level of common sense
 - values and practices

55
Emphasis required for technical marketing:
  V a l u e
 - Focus on customer needs rather than the
product or its technologies.
 - Be able to point out the difference between
investment and cost.
 - Tangible and intangible values.
 - Base the selling price on value first; not on

the cost first.

56
Side-benefit to the organization from hard
works involved in technical marketing:

Monopoly for a considerable period of


time

57
ut each product has its life-cycle.
Answers: How to
sustain the business??
    -  services
 -  core value of the business as a whole, to effect
some kind of quality that leads to mouth-to-
mouth form of publicity:
⇒      consistency
⇒      purity, cleanliness
⇒ superior appreciation from customers

58
songsak@elastomer-polymer.com 59
Necessary Points in First-Hand
Information Findings

A) Manufacturing customer details (details related to


potential of the business, possibility of achievements,
etc.):
→ type of product produced
→ production capacity
→ customer’s market(s) and the
segmentation
→ domestic
→ export (name of the country and
approx.
percentage)
→ market situations, market factors
→ number of employees/machineries that
would use our
product(s) 60
→ etc.
B) Trading customer details
→ type(s) of products offering
→ number of sales force
→ market/area covering
→ (other details similar to those of
manufacturing
customers’)
→ financial situation (% production capacity
utilizing,
wage increase, bonus, info from other
traders, payment
promptness, downsizing, etc.)
→ competitive information* (price, quantity,
quality,
delivery, etc.) 61
C) Common Points
→ Customer name, key-contact & his/her
position, address,
phone & fax number, e-mail address.
→ Purpose(s)/objective(s) of visit
→ application details (as details as possible)
→ product satisfaction
→ current problem (in case there is any, and
explain
with as much details as possible)
→ incentives to upgrade
→ indirect incentives
→ direct incentives
→ decision mechanism
→ next action steps
62
63
64