Marketing Value-Added Minerals To Specialized Markets

We define a specialized mineral market as follows: Specialized markets occur where a low volume of a given mineral is used to convey a large benefit to a specific product. Sales of these value added minerals to small markets generally require a different marketing approach than bulk or commodity markets for traditional minerals. Specialized markets are differentiated by several characteristics as listed in Table 1. [Table 1-Characteristics of Specialized Markets 1. Long-term sample evaluation 2. Small volume markets 3. Highly controlled properties 4. Customized specifications 5. Technical selling effort] Many of the specialized markets require long term evaluations before sales can be made. This can vary greatly depending on the type of industry and ultimate end-use of the final product. In some cases, complete evaluations may take from several weeks to years. Length of sample evaluation has no relationship to size of market. That is, the total market may be quite small or fairly large (e.g. from a few hundred pounds to a few million pounds). Uniformity of value added minerals from lot to lot is an extremely important characteristic for these markets. Variations that are of no consequence to one industry (or application) cannot be tolerated in another. This has led to customized specifications and test procedures for specific markets and applications. Because of the greater uniformity and customized specifications, the need for greater technical selling effort is required. This is particularly true in the initial developmental phases and contacts as well as in maintaining the account after the initial order. A small entrepreneurial organization can be used to advantage to achieve goals of sales and profit to these types of markets. The large commodity or bulk producer's sales and marketing organizations are not ordinarily equipped to give the necessary service or technical assistance to the specialized markets. The organization usually required for this type of marketing is given in Table 2. [Table 2- Specialized Marketing Organization Requirements 1. Flexible approach to technical and marketing problems 2. Versatile background in a broad range of industries 3. Laboratory backup when necessary 4. Marketing expertise 5. Technically competent management] In developing specialized markets, a flexible approach to both technical and marketing problems is necessary in understanding the needs and requirements of the industry and the applications involved. This flexibility is also helpful in adapting existing products to new market areas. Having knowledge of a range of industries as broad as possible can be very helpful. It often happens that a product developed in one area or industry can lead to its application in a different area with excellent results. Laboratory assistance for a wide range of tests and test procedures is an important asset in any development program for specialized markets. Laboratories can also assist in competitive evaluations. Marketing expertise and a management with some degree of technical understanding are necessary in to assign proper cost/ benefit ratios to a proposed new product or application of existing products. This is important since the total market volume can be small and the time required for initial contact to first sale can often be lengthy. Also, management's technical and marketing expertise is required in evaluating all possible options that can be considered viable when an application is presented. Once an organization of this type is in place, it is then possible to determine the needs of the marketplace, including when various minerals might have to be customized to fill those needs. There are generally two methods of marketing, as noted in Table 3. [Table 3- Method of Marketing 1. Product Driven -Develop a product with certain desirable properties and try to find a market to utilize those properties. 2. Market Driven -Know market well enough that when a need arises, it is possible to identify a product that will satisfy the need.] These approaches are not mutually exclusive and can be used at the same time. Marketing a value added mineral generally requires the "market driven" approach. Hence, the importance of a knowledgeable management as outlined above. To determine where needs and opportunities exist, several approaches can be used. Table4 lists some of the methods employed.