what a geologist needs to know about marketing industrial ...what a geologist needs to know about...
TRANSCRIPT
![Page 1: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/1.jpg)
What a Geologist Needs to Know About Marketing Industrial Minerals
Spring 2012
![Page 2: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/2.jpg)
FACTOR METAL IM Market type Undifferentiated Differentiated
Total value Lower ~33% Higher ~67%
Specifications Few Many
Buyer loyalty Low (price) High (perform)
Branding Uncommon Common
Marketing Low High
![Page 3: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/3.jpg)
MARKETING versus SALES
Strategic TacticalLong Range versus FocusedCustomer (Long Term) Customer (Daily)
|← Overlap →|
![Page 4: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/4.jpg)
Marketing is theexploration phase for
industrial minerals and rocks
![Page 5: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/5.jpg)
IMSEGMENTS
PERCEIVEDIMPORTANCE
PRACTICALIMPORTANCE
Marketing 5 1Transport 4 2Processing 3 3Mining 2 4Exploration 1 5
![Page 6: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/6.jpg)
IMSEGMENTS
PERCEIVEDIMPORTANCE
PRACTICALIMPORTANCE
Marketing 5 1Transport 4 2Processing 3 4Mining 2 5Exploration 1 3
![Page 7: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/7.jpg)
Geology dictates deposit existence
Markets dictate deposit development
Transportation
![Page 8: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/8.jpg)
IM MARKET TYPES
Commodity = Product driven
Specialty = Market driven
![Page 9: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/9.jpg)
GENERAL IM TYPECOMMODITY SPECIALTY
MARKETINGNEEDED ↓ ↑
TECHNICALSUPPPORT ↓ ↑
RESEARCH &DEVELOPMENT ↓ ↑
![Page 10: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/10.jpg)
COMMODITY vs SPECIALTY EMPHASIS
Specialty Alone high value high risk
Commodity Alone low value mod. risk
Commodity + Specialty moderate value least risk
![Page 11: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/11.jpg)
MARKET CHARACTERISTICS
COMMODITY MINERALS
SPECIALTY MINERALS
Place Value High (transport sensitive)
Low (transport insensitive)
Volume Large Small
Unit Price Low High
Substitution Easy Hard
Differentiation Less More
![Page 12: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/12.jpg)
MARKETCHARACTERISTICS
COMMODITYMINERALS
SPECIALTYMINERALS
Specifications Standard Customized
Sample evaluation Short Long
Properties,uniformity
General Controlled
Testing Standard Customized
![Page 13: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/13.jpg)
MARKETCHARACTERISTICS
COMMODITYMINERALS
SPECIALTYMINERALS
Market &Management style
Business Technical
Main sales basis Price(undifferentiated)
Performance(differentiated)
Time to first sale Short Medium toLong
Market change Slow to moderate Rapid tomoderate
Lab & R&D need Low High
![Page 14: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/14.jpg)
MARKETINGMarket Study = What?
Market Development = Where? How?
![Page 15: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/15.jpg)
MARKET STUDY
Commodity Survey — basic data, easy, past & present
Market Evaluation— forecasting, hard, future
![Page 16: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/16.jpg)
MARKETING STUDY
Asking the right questions of the right people!
![Page 17: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/17.jpg)
MARKET STUDY
• Exploration green field, grass roots
• External inactive; active (generally well known)
• Internal inactive; active (new or existing product)
![Page 18: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/18.jpg)
Commodity Survey
• Existing Data–Financial–Production–Geological–Legal–Environmental
• Very minor forecasting
![Page 19: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/19.jpg)
MARKET EVALUATION
• Forecasting (volume, price)
• Economic/Financial Analysis
• Specific Products
• Timing
• Location
![Page 20: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/20.jpg)
APPROACHIndustrial (Short time)
Consumer (Long time)
![Page 21: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/21.jpg)
MARKETINGORGANIZATION
TYPES
In-houseDistributors
AgentsMerchants
Traders
![Page 22: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/22.jpg)
MARKET POSITIONING STRATEGIES
• Low cost
• Differentiation
• Focus
• Segmentation
![Page 23: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/23.jpg)
SUMMARYMetals and IM’s require markedly different approaches
Marketing dominates industrial minerals
IM marketing style = industrial, not consumer
Marketing (strategic) and sales (tactical) differ
IM marketing evaluation = Ask the right questions
IM markets = commodity (product) or specialty (market)
![Page 24: What a Geologist Needs to Know About Marketing Industrial ...What a Geologist Needs to Know About Marketing Industrial Minerals Spring 2012. FACTOR METAL IM Market type Undifferentiated](https://reader033.vdocument.in/reader033/viewer/2022041808/5e5646b7314f24389e2333d7/html5/thumbnails/24.jpg)
IM Marketing Summary Table
Market Characteristics Commodity Minerals Specialty Minerals Place value High (transport sensitive) Low (transport insensitive) Volume Large Small Unit price Low High Substitution Easy Hard Differentiation Less More Specifications Industry standard End-user customized Sample evaluation Short Long Properties & uniformity General Highly controlled Testing Standard Specific or customized Marketing & management style Business Technical Main sales basis Price (undifferentiated) Performance (differentiated) Time to first sale Short Medium to long Rate of market change Slow to moderate Rapid to moderate Need for laboratories and R&D Low High