2000:112
MASTER'S THESIS
The Use and Integration
of Marketing Communication Tools
in Business-to-Business Firms:
Case studies of three Swedish firms
Catarina Olander, Christer Sehlin
Ekonomprogrammet D-nivå
Institutionen för Industriell ekonomi och samhällsvetenskap
Avdelningen för Industriell marknadsföring
2000:112 • ISSN: 1404-5508 • ISRN: LTU-SHU-EX--00/112--SE
Abstract
Marketing communication is a systematic relationship between a business and its
market. There are twelve different communication tools available to the marketer:
personal selling, advertising, sales promotion, direct marketing, public relations,
sponsorship, exhibitions, packaging, point-of-sale and merchandising, the Internet, word
of mouth and corporate identity. These communication tools constitute the marketing
communication mix. For several years, the Internet and the Web has dramatically
altered the traditional view of advertising and communication media. The Web provides
an efficient channel for advertising, marketing, and even direct distribution of certain
goods and information services. Each element of the communication mix should
integrate with other tools of the communication mix so that a unified message is
consistently reinforced. This new direction for marketing is called integrated marketing
communication (IMC). The purpose of this thesis is to investigate how business-tobusiness firms use and integrate the different marketing communication tool in the
communication mix, from both a traditional and Internet marketing communication
perspective. The findings showed that personal communication tools by which the
companies can interact face-to-face with the customers such as personal selling and
exhibitions were the most important tools. Regarding the Web as a communication tool
it was mainly used to inform the market, to demonstrate products, and to provide online
material to the customers. In terms of integrated marketing the companies seems to have
little knowledge about it and how it can be used. In spite of that they try to send out a
consistent message to the customers.
Table of contents
1 INTRODUCTION ....................................................................................................... 1
1.1 Background ............................................................................................................. 1
1.2 Research Problem ................................................................................................... 3
1.3 Purpose.................................................................................................................... 6
1.4 Research Questions................................................................................................. 6
1.5 Demarcations .......................................................................................................... 7
1.6 Outline..................................................................................................................... 7
2 REVIEW OF LITERATURE..................................................................................... 8
2.1 Traditional Marketing Communication Tools ........................................................ 8
2.1.1 Personal Selling.............................................................................................. 8
2.1.2 Advertising ..................................................................................................... 9
2.1.3 Sales Promotion............................................................................................ 10
2.1.4 Direct Marketing .......................................................................................... 12
2.1.5 Public Relations............................................................................................ 12
2.1.6 Sponsorship .................................................................................................. 13
2.1.7 Exhibitions.................................................................................................... 14
2.1.8 Packaging ..................................................................................................... 14
2.1.9 Point-of-Sale and Merchandising................................................................. 15
2.1.10 Word of Mouth........................................................................................... 15
2.1.11 Corporate Identity....................................................................................... 16
2.1.12 Studies on Communication Tools Used by Sellers .................................... 17
2.2 The Web as a Marketing Communication Tool.................................................... 18
2.2.1 The Role of the Web Site in the Marketing Communication Mix ............... 19
2.2.2 The Web Site as a Communication Tool...................................................... 20
2.2.3 Benefits and Potential Drawbacks of the Web as a Communication Tool... 20
2.2.4 Promoting Web Sites with Other Media ...................................................... 22
2.2.5 The Web Site and the Buying Process ......................................................... 22
2.3 Integrated Marketing Communications ................................................................ 23
2.3.1 Benefits and Barriers to Integrated Marketing Communication .................. 24
2.3.2 Ten Golden Rules in Integrated Marketing Communication ....................... 26
2.3.3 Studies on Integrated Marketing Communication........................................ 27
3 CONCEPTUALISATION AND EMERGED FRAME OF REFERENCE ......... 30
3.1 Conceptualisation.................................................................................................. 30
3.1.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described? ............................... 30
3.1.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described? .............................. 31
3.1.3 Research Question Three, How Does a Business-to-Business Firm Integrate
the Marketing Communication Tools?.................................................................. 32
3.2 Emerged Frame of Reference ............................................................................... 33
4 METHODOLOGY .................................................................................................... 34
4.1 Purpose of Research.............................................................................................. 34
4.2 Research Approach ............................................................................................... 35
4.3 Research Strategy.................................................................................................. 35
4.4 Data Collection Method........................................................................................ 37
4.5 Sample Selection................................................................................................... 39
4.6 Data Analysis ........................................................................................................ 40
4.7 Validity and Reliability......................................................................................... 41
Table of contents
5 DATA PRESENTATION.......................................................................................... 43
5.1 Plannja AB ............................................................................................................ 43
5.1.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described? ............................... 43
5.1.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described? .............................. 46
5.1.3 Research Question Three, How Does a Business-to-Business Firm Integrate
the Marketing Communication Tools?.................................................................. 47
5.2 Liko AB ................................................................................................................ 48
5.2.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described? ............................... 48
5.2.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described? .............................. 50
5.2.3 Research Question Three, How Does a Business-to-Business Firm Integrate
the Marketing Communication Tools?.................................................................. 51
5.3 Svalson AB ........................................................................................................... 52
5.3.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described? ............................... 52
5.3.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described? .............................. 55
5.3.3 Research Question Three, How Does a Business-to-Business Firm Integrate
the Marketing Communication Tools?.................................................................. 56
6 ANALYSIS ................................................................................................................. 58
6.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described? .................................... 58
6.1.1 Within-Case Analysis................................................................................... 58
6.1.2 Cross-Case Analysis..................................................................................... 65
6.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described?.................................... 67
6.2.1 Within-Case Analysis................................................................................... 68
6.2.2 Cross-Case Analysis..................................................................................... 70
6.3 Research Question Three, How Does a Business-to-Business Firm Integrate the
Marketing Communication Tools? ............................................................................. 72
6.3.1 Within-Case Analysis................................................................................... 72
6.3.2 Cross-Case Analysis..................................................................................... 73
7 CONCLUSIONS ........................................................................................................ 76
7.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described? .................................... 76
7.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described?.................................... 77
7.3 Research Question Three, How Does a Business-to-Business Firm Integrate the
Marketing Communication Tools? ............................................................................. 78
7.4 Implications........................................................................................................... 78
7.4.1 Implications for Management....................................................................... 78
7.4.2 Implications for Theory................................................................................ 79
7.4.3 Implications for Further Research ................................................................ 79
REFERENCES.............................................................................................................. 80
APPENDICES
Table of contents
List of Figures
Figure 1.1
Figure 1.2
Figure 1.3
Figure 1.4
Figure 2.1
Figure 3.1
Figure 4.1
A Linear Model of Communication.......................................................................................1
The One-to-Many Communication Process...........................................................................3
A Many-to-Many Communications Model for Hypermedia CMEs ......................................5
The Outline of this Thesis......................................................................................................7
The Web Site as Part of the Marketing Communication Mix..............................................23
The Frame of Reference of this Study .................................................................................33
A Graphical Overview of the Methodological Issues for this Study....................................34
List of Tables
Table 2.1
Table 2.2
Table 2.3
Table 2.4
Table 4.1
Table 4.2
Table 6.1
Table 6.2
Table 6.3
Importance of Information Sources – Industrial Sellers .....................................................17
Allocation of Money Spent on Marketing in Industrial Firms............................................18
Time and Attention Devoted to Selected Advertising and Marketing Subjects .................28
Marketing Communications Alternatives: Percent Considered “Always” or “Frequently”
in Campaign Planning ........................................................................................................29
Relevant Situations for Different Research Strategies........................................................36
Sources of Evidence ...........................................................................................................37
Data Display Research Question One, Traditional Communication Tools ........................65
Data Display Research Question Two, the Use of the Website as a Marketing
Communication Tool..........................................................................................................70
Data Display Research Question Three, Integrated Marketing Communication................74
Chapter 1 Introduction
1 INTRODUCTION
I
n this chapter the background, the research problem, the purpose, the research
questions, the demarcations and the outline of the thesis will be presented.
1.1 Background
Marketing communications are about the promotion of both the organisation and its
offerings. It recognises the increasing role the organisation plays in the marketing
process and the impact that organisational factors can have on the minds of consumers.
(Fill, 1995) Marketing communication is a systematic relationship between a business
and its market in which the marketer assembles a wide variety of ideas, designs,
messages, media, shapes, forms and colours, both to communicate ideas to and to
stimulate a particulate perception of products and services by, individual people who
have been aggregated into a target market (Smith, Berry & Pulford, 1998).
According to Webster (1984, p. 248) industrial marketing communication is “a mix of
personal and impersonal communications aimed at the industrial buyer”. It should be
pointed out that in the Swedish language there is a slight difference between the terms
industrial and business-to-business, and when referring to industrial the implication is
business-to-business. However, promotion as a means by which a seller can
communicate with the buyers, and for buyers to be able to communicate back to the
seller is only a part of a much larger system known as the marketing communication
process. Fill (1995) presents a linear model of communications (based on Schramm,
1955 and Shannon and Weaver, 1962). Further the author states that this model is now
accepted as the basic model of mass communications. The model is presented in figure
1.1 below.
Sender or
Source
Realm of
Understanding
Encoding
Noise
Signal or
Message
Realm of
Understanding
Decoding
Feedback
Destination
or Receiver
Figure 1.1 A Linear Model of Communication
Source: Fill (1995), p. 24
1
Chapter 1 Introduction
The model begins with a source that is sent by an individual or an organisation.
Encoding means that the sender must transfer the intended message into a symbolic
style that can be transmitted. The signal represents the transmission of the message
using particular sets of media. Decoding refers to understanding the symbolic style of
the message in order to understand it. The receiver is the individual or the organisation
that is receiving the message. Feedback is the receiver’s communication back to the
source, on receipt of the message. Noise is a distortion of the communication process
making it difficult for the receiver to interpret the message as intended by the source.
“Realm of understanding” is an important element in the communication process, it
recognises that successful communications are more likely to be achieved if the source
and the receiver understand each other. This understanding concerns attitudes,
perceptions, behaviour and experience; the values of both parties to the communication
process. Therefore, effective communication is more likely when there is some common
ground, a realm of understanding between the source and receiver. (Fill, 1995)
According to Smith (1998) and Smith et al. (1998) there are 12 different communication
tools available to a marketer: personal selling, advertising, sales promotion, direct
marketing, public relations, sponsorship, exhibitions, packaging, point-of-sale and
merchandising, the Internet, word of mouth and corporate identity. When combining
these into a communication mix, the marketer needs to take account of their particular
appropriateness for the target market, the rate at which each tool will generate sales or
awareness, and the rate of sales response when the tools are combined into the mix. The
importance of each communication tool will vary according to the type of customer and
the general pattern of communication in a market. It is important to bear in mind that
there is a wide range of communication tools which are not generally included in the
marketing communication mix as they are controlled by other functional and line
managers. (Smith et al., 1998)
Industrial promotion consist of a set of personal and impersonal communications
directed toward various audiences, including direct customers, indirect users further
down the channel, industrial middlemen, and the general public. Promotion serves a
number of functions, but its ultimate purpose is to stimulate and maintain demand for
the company’s products, product lines, and services. The major components of
industrial promotion are personal selling, advertising, sales promotion and public
relations. These combine to form the communication mix. (Morris, 1992) It should be
noted that the term communication mix will be used throughout this thesis to simplify
what also by the authors been referred to as promotion mix. This mix includes every
communication tool, which is available to the organisation as mentioned before (Smith,
1998).
A communication mix that works effectively with industrial products and services is
likely to be quite different from the appropriate mix for most consumer goods. This is
due to the technical nature of industrial products, the smaller relative number of
potential buyers, the geographical dispersion of customers, and the complex nature and
length of the organisational buying process. (Morris, 1992) In business-to-business
marketing, for example, advertising, sales promotion, and public relations are used
primarily to help presell or generate leads for the personal sales force. Because most
industrial sales are made as a direct result of a presentation by a salesperson, the other
elements are used to assist or support these personal selling situations. (Schultz, 1991)
2
Chapter 1 Introduction
1.2 Research Problem
The environment in which marketers now operate in is substantially different from 20
years ago. There is now an enormous variety of marketing communication tools
available – press, radio, TV (terrestrial, satellite, cable, and interactive video, text),
telephone, mail, e-mail, and the Internet. The data available to the marketer for market
analysis and for targeting customers directly is vast and increasing almost daily. (Smith
et al., 1998)
Firms communicate with their customers through various media. Traditional media
include both mass media (e.g., television, radio, newspaper, magazines, direct mail),
and personal communications (e.g., word of mouth). Traditionally, these media follow a
passive one-to-many communication model, whereby a firm reaches many current and
potential customers, segmented or not, through marketing efforts that allow only limited
forms of feedback from the customer. Hoffman and Novak (1996, p 52) presents this
simplified one-to-many communication model that underlies many models of mass
communication shown in figure 1.2. The primary feature of the model is a one-to-many
communication process, whereby the firm (F) transmits content through a medium to
customers (C). Depending on the medium (i.e., broadcast, print, and billboards), either
static (i.e., text, image, and graphics) and/or dynamic (i.e., audio, full-motion video, and
animation) content can be incorporated. No interaction between consumers and firms is
present in this model. Virtually all contemporary models of mass media effects are
based on this traditional model of the communication process.
C
C
F
Content
Medium
C
C
C
Figure 1.2 The One-to-Many Communication Process
Source: Hoffman & Novak (1996), p. 52
For several years, a revolution has been developing that is dramatically altering this
traditional view of advertising and communication media. This revolution is the
Internet, which as a new marketing medium has the potential to radically change the
way firms do business with their customers. (Hoffman & Novak, 1996) It should be
noted that some authors refer to the World Wide Web (the Web) when talking about the
Internet. Though there is a big difference between the terms and it should be pointed out
that the Internet is the network of interconnected packed switched computer networks
around the world and the Web is the Internet’s graphical interface, which is what is seen
when entering a Website. (Hoffman & Novak, 1996 and Lynch & Horton, 1999) The
Internet offers the opportunity to link with simple and powerful computers theoretically
with anyone on a global basis with the use of a modem. The open software enables
access to information concerning companies, individuals, marketing data, brochures,
pictures, science, specific discussion groups, sports politics and a host of other sources.
3
Chapter 1 Introduction
(Ranchhod, 1998) The Internet removes many barriers to communication, obstacles
such as time zones, geography and location (ibid). It also offers a computer-mediated
environment (CME) on a global basis and provides an efficient channel for advertising,
marketing and even direct distribution of certain goods and services (Hoffman &
Novak, 1996). The main growth is expected to be in the “business-to-business area”
(Ranchhod, 1998).
The Internet is an important focus for business-to-business marketers for several
reasons. Customers and firms are conducting a substantial and rapidly increasing
amount of business on the Internet. The market prefers the decentralised, many-to-many
Web for electronic commerce to the centralised, close-access environments provided by
the online services. The Web represents the broader context within which other
hypermedia CME’s exists. Further the Web provides an efficient channel for
advertising, marketing, and even direct distribution of certain goods and information
services. (Hoffman & Novak, 1996)
Serious marketing practitioners and academics are aware that more systematic research
is required to reveal the true nature of commerce on the Web, particularly from the
perspective of the Web in marketing communication. Especially true from an industrial
marketing perspective, since most of the attention thus far has been devoted to
spectacular Web achievements in customer markets. The objective with presence on the
Web could be to create corporate and product awareness, and to inform the market. Web
sites might typically be viewed as complementary to the direct selling activity by
industrial marketers and as supplementary to advertising. (Berthon, Lane, Pitt &
Watson, 1998)
The central dilemma confronting the Web marketer is how to turn surfers (those who
browse the Web) into interactors (attracting the surfers to the extent that they become
interested, ultimately purchasers, and staying interactive, repeat purchasers). The Web
warrants the industrial marketer’s serious attention. Business to business marketers will
need to set objectives for their use of the medium as corporate communication tool, and
measure their progress towards the attainment of these. No communication medium or
electronic technology, not even fax or personal computers, has even grown as quickly.
(ibid)
New media encompass interactive media, such as videotex, interactive CD-ROM, online services, and hypermedia CMEs, as well as emerging so called interactive
multimedia, such as pay-per-view, video-on-demand, and interactive television. The
media typologies referenced in figure 1.2 reveal that media differs along many different
dimensions, for example channel characteristics and uses and gratifications. Figure 1.3
on the next page, present a many-to-many communication model for hypermedia
CMEs. Hoffman and Novak (1996) define hypermedia CME as a dynamic distributed
network, potentially global in scope, together with associated hardware and software for
accessing the network, which enables consumers and firms to provide and interactively
access hypermedia content and communicate through the medium.
The content in the figure is hypermedia, and the medium is a distributed computer
network. Figure 1.3 differs from figure 1.2 in that interactivity can also be with the
medium (i.e., machine interactivity) in addition to through the medium (i.e., person
interactivity). The customers can interact with the medium (e.g., surf the Web using
browsing software) as can firms (e.g., business-to-business marketing in Commercenet).
4
Chapter 1 Introduction
In addition firms can provide content to the medium by establishing a corporate Web
server. Maybe the most radical departure from traditional marketing environments is
that the customers can put product related content in the medium. (Hoffman & Novak,
1996).
F
F
F
Content
Content
C
Medium
Content
F
Content
C
C
C
Figure 1.3 A Many-to-Many Communications Model for Hypermedia CMEs
Source: Hoffman & Novak (1996), p. 53
There is now, in moving into the twenty-first century, a need for marketing
communications to be co-ordinated and budgeted around the needs and perceptions of
the customer. As technology develops, in both manufacturing and marketing, that
customer becomes more and more accessible as an individual rather than as just one
person in an aggregated mass market. This new direction for marketing is called
integrated marketing communications (IMC). (Smith et al., 1998)
The definition of IMC used by the American Association of Advertising Agencies is a:
“concept of marketing communications planning that recognises the added value if a
comprehensive plan that evaluates the strategic roles of a variety of communications
disciplines, e.g., general advertising, direct response, sales promotion and public
relations – and combines these disciplines to provide clarity, consistency and maximum
communications impact”.
(Duncan & Everett, 1993)
Each element of the communication mix should integrate with other tools of the
communication mix so that a unified message is consistently reinforced. Some major
advertising campaigns are supported by PR activity, and many advertisements have
press launches not for the product but for the advertisement itself. Thus publicity and
advertising work together to create a bigger impact in a cost-effective way. (Smith,
1998)
5
Chapter 1 Introduction
The pressure to integrate marketing communications is a result of numerous factors.
Key among these are communications agency mergers and acquisitions, increasing
sophistication of clients and retailers, increasing cost of traditional advertising media,
increasing global competition, increasing pressure on organisations’ bottom lines,
decreasing effectiveness of traditional media, the decreasing cost of database usage, and
other trends such as zapping, media fragmentation, and loss of message credibility.
(Duncan & Everett, 1993)
Although marketing communications has been used for several years as an umbrella to
refer to the various communications functions used by marketing, the strategic
integration of these functional areas is what makes IMC a new approach to reaching
customers and other stakeholders. The theory of an IMC program is that it has one basic
communications strategy for each major target audience. This one strategy is then used
as the basis for executing each communications function (advertising, PR, sales
promotion, et cetera.) throughout a variety of communication channels. (Duncan &
Everett, 1993) According to Duncan and Everett (1993, p. 30) “IMC is one of the
easiest ways an organisation can maximise its return on investment”.
In today’s cluttered and confusing marketplace, the need for integrated marketing
communications has never been greater. There are simply too many products, too many
brands, and too many marketers for the customer to keep straight or to understand,
unless the image and benefits of the promoted product or service are clear and concise.
The key is to have one clear marketing program and one clear, concise promotion
program in which all elements are co-ordinated and communicate the same message to
the customer, the retailer, and the wholesaler. (Schultz, 1991)
According to Duncan and Everett (1993), the body of literature of IMC is thin and what
is available mostly deals with superficial case histories and anecdotes. Furthermore
McArthur and Griffin (1997) state that there is a need of further investigation of the
manner in which integrated marketing communication programs are constructed, coordinated, sourced, and implemented among various types of businesses.
1.3 Purpose
The purpose with this thesis is to investigate how business-to-business firms use and
integrate the different marketing communication tools in their communication mix,
from both a traditional and Internet marketing communication perspective.
1.4 Research Questions
1. How can a business-to-business firm’s use of the traditional marketing
communication tools be described?
2. How can a business-to-business firm’s use of the Website as a marketing
communication tool be described?
3. How does a business-to-business firm integrate the marketing communication tools?
6
Chapter 1 Introduction
1.5 Demarcations
The thesis is written from a seller’s perspective and is not going to be looked up on
from the buyer’s perspective. Further we have limited ourselves to investigate Swedish
companies, due to the lack of time.
1.6 Outline
The thesis is divided into seven chapters as shown in figure 1.4. In the first chapter a
background to the selected area is presented followed by a research problem, a stated
purpose, the research questions of our study, the demarcations and finally the outline of
the thesis. In the second chapter literature to the selected topic will be reviewed. The
third chapter presents a conceptualisation of the reviewed literature followed by the
frame of reference of this thesis. Chapter four presents the methodology used in this
thesis. In chapter five the empirical data received during the data collection is
presented. Chapter six contains a within case analysis and a cross-case analysis of the
empirical data presented in chapter five. Finally, in chapter seven the conclusions and
implications are presented.
Chapter 5
Data
Presentation
Chapter 1
Introduction
Chapter 2
Review of
Literature
Chapter 4
Methodology
Chapter 3
Conceptualisation
and Emerged
Frame of
Reference
Chapter 6
Analysis
Chapter 7
Conclusions and
Implications
Figure 1.4 The Outline of this Thesis
Source: Olander & Sehlin (2000)
7
Chapter 2 Review of Literature
2 REVIEW OF LITERATURE
T
his chapter contains literature based on our research questions. This will
include studies on marketing communication tools used by industrial sellers,
then studies on the Web as a marketing communication tool and finally studies
made on integrated marketing. In order to describe the various communication
tools as comprehensively as possible we have included some theory that can be applied
by both business marketers and consumer marketers.
2.1 Traditional Marketing Communication Tools
According to Smith, (1998) and Smith et al. (1998) there are twelve different
communication tools available to a marketer: personal selling, advertising, sales
promotion, direct marketing, public relations, sponsorship, exhibitions, packaging,
point-of-sale and merchandising, the Internet, word of mouth and corporate identity.
These communication tools are examined more extensively below.
2.1.1 Personal Selling
Personal selling is promotion via a sales pitch by a sales representative to a prospect, or
by a retail assistant to a customer, guaranteeing exposure to self-selected members of a
target market. (Baker, 1994) Personal selling includes according to Foster (1998, p. 78)
face-to-face sales calls/meetings, telephone sales calls, videoconferencing, tradeshows/
exhibitions, conferences/seminars, and word of mouth.
Toady selling has moved away from the short-term, quick sale scenario. Combative
salesmen are being transformed into “customer servants”. Selling today is more about
partnering and relationship building – You don’t sell to people, you partner with them.
This is particularly true with KAM (key account management), which requires a more
strategic approach to selling. Today selling is about building durable relationships that
are depending on satisfying the customer constantly. Many companies are now
measuring success not just by units sold but also by the far more rigorous yardstick of
customer satisfaction. And selling has moved beyond the marketing and sales
departments as companies realise that in today’s heated competitive markets the whole
company must sell. (Smith, 1998)
Some markets, particularly industrial markets, depend on personal selling more than
others – winning an order for, say, a heavy industrial machine cannot be done by
advertising, direct mail or telesales (telephone selling). This kind of selling requires a
top-level sales professional. (ibid)
An organisation’s own sales force, or a distributor’s or agent’s sales force, all have to be
kept abreast of any new advertising or sales promotion campaigns. Their product
knowledge has to be kept up to scratch. Some advertisements are wasted when they
succeed in pulling customers into stores only for the customers to find out that the sales
staff behind the counter is not familiar with either the advertisement or the particular
offer being made. Equally, may spend considerable time ensuring that wholesaler and
retailer point-of-sale materials are professionally co-ordinated with a national
8
Chapter 2 Review of Literature
advertising campaign. This suggests that selling needs to be integrated with other
communication activities such as advertising, direct mail, telesales et cetera. (ibid)
Personal selling offers several advantages to the industrial marketer. These include
direct access to customers on a planned basis, control over presentations and
approaches, and an increase in the number of employees that, if the situation warrants,
can be rotated into other assignments. There is also a degree of accountability of the
funds that are spent on this activity. Salespeople can report directly back on the success
or failure of their efforts. There are several disadvantages to personal selling, however.
These include a lengthy process to recruit and train individuals, and a possibility of loss
of control of some aspects of the marketing mix. This includes managing price and
presenting product benefits, which can deviate from the firm’s policies. Another major
disadvantage is that if there is a need to lower the marketing effort, reducing the sales
force is a painful process that normally requires terminating employees and changing
territories and assignments. These personnel changes can be expensive and trying on the
manager and salespeople involved. (Powers, 1989)
2.1.2 Advertising
Advertising is promotion via a recognisable advertisement placed in a definable
advertising medium, guaranteeing exposure to a target audience in return for a
published rate for the space or time used. (Baker, 1994) Advertising is thought by some
to help buyers to learn and remember brands and their benefits by repeating the message
and building associations between brands, logos, images, and benefits – a form of
classical conditioning. (Smith, 1998)
The role of advertising in the communication mix is an important one. Advertising,
whether it is on a national, local, or direct basis, is important as it can inform, remind or
persuade established or potential customers of the existence of a product, service or
organisation. Advertising can reach huge audiences with simple messages that allow
receivers to understand what a product is, what its primary function is and how it relates
to all the others similar products. This is the main function of advertising, to
communicate with specific audiences. These audiences may be customer- or
organisation-based, but wherever they are located, the prime objective is to build
awareness of a product/service or an organisation. (Fill, 1995)
Advertising, when used in industrial markets, relies very little on mass media vehicles
such as television and radio. Mass media is not only expensive, it does not permit the
marketer much opportunity to specifically target efforts towards different types of
industrials customers. In addition, use of the mass media results in extensive wasted
exposure, since many of the individuals reached are not part of the firm’s target market.
This waste drives up the coast per contact. As a result, the primary vehicle used in
industrial advertising is print media, with trade journals, general business publications,
direct mail, industrials directories, and technical literature the most heavily used
advertising outlets. The advertising message will tend to emphasise factual information
and functional product or service benefits. (Morris, 1992)
According to Powers (1989) advertising has some advantages and disadvantages. The
advantages are that it can be quickly implemented have widespread market coverage,
have control of message content, and that it easily can be terminated. The disadvantages
9
Chapter 2 Review of Literature
are that it cannot target individual customers, that it is difficult to change message thrust
quickly, and that it also is difficult to determine cost effectiveness.
2.1.3 Sales Promotion
Sales promotion (SP) is promotion via a considerable array of related but distinct
promotions (such as contests, premium offers, free goods and services, et cetera). All
intended to achieve exposure for the promoted product and some, furthermore, offering
the target audience an incentive to respond actively. (Baker, 1994)
The International Chamber of Commerce (ICC) defines sales promotion as:
“marketing devices and techniques which are used to make goods and services more
attractive by providing some additional benefit, whether in cash or in kind, or the
expectation of such a benefit”.
(Boddewyn & Leardi, 1989, p. 365)
According to Smith (1998) there are three main categories of sales promotion:
ΠCustomer promotions (premiums, gifts, prizes and competitions, e.g. on the back of
breakfast cereal boxes)
ΠTrade promotions (special terms, point-of-sale materials and free pens, diaries,
competition prizes, et cetera)
ΠSales force promotions (incentive and motivation schemes)
Promotions are action oriented, particularly as they often tempt the buyer to buy or at
lest try a product or service. These kinds of promotions often provide the final shove
that moves a customer towards buying a particular product or service. Some promotions
can enhance or add value to the image of the product or service. This means that the gift
is in some way related to the brand, its image or its properties. Effective sales promotion
can creatively build the brand franchise while achieving many other objectives such as
increasing sales, cementing loyalty, building databases, generating publicity and more.
(Smith, 1998)
The characteristics of sales promotion can be defined as following (Boddewyn &
Leardi, 1989, p. 365): Techniques and devices commonly used on a temporary basis, to
make goods and services more attractive to distributors or final customers by providing
them with some additional benefit or inducement (incentive) or the expectations of such
a benefit, whether in cash, in kind (nature) and/or services, whether immediately or at a
later time, whether freely or conditionally.
Boddewyn & Leardi, (1989, p. 365), list the following promotional items: premium
offers of all kind, reduced prices and free offers, the distribution of trading stamps,
vouchers and samples, charity-linked promotions, and prize promotions of all types,
including incentive programmes.
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A premium is an additional benefit which is conditioned upon (depending upon) the
purchase of a product or a service. Premiums may be offered free at or price lower
than their usual price value. Premiums may be in or on the package, near the
package (a tear off coupon placed on the shelf or near the product being promoted,
free-in-the-mail et cetera)
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A gift is a product or service that is given freely and is not conditional on the
purchase of a product or service. Free samples are gifts.
A competition is a prize in the form of a premium offered or a gift given only to
some distributors or customers (not all can win), following some contest or game
based on skill, chance or some combination of the two. What distinguishes a contest
from a game of chance is the action the customer is required to perform. A contest is
characterised by three factors; skill (ability, sagacity, et cetera.), prize and a
consideration (for instance, some proof or purchase). Contests may involve
submitting photographs, writing essays, answering difficult questions, which are to
be judged by a jury. A game of chance (e.g., a sweepstake) is characterised by
chance, a price and no consideration – that is, participation must be free. An
example of a sweepstake is sending in a freely available certificate, which entitles
the customer to the chance of winning a prize in cash, goods or services (e.g., a
television set or a vacation).
A coupon is a certificate given to customers, which entitles them to an immediate
price reduction when they purchase the stated item. Coupons may be distributed
through the mail, in public places, door-to-door, in or on packages, through store
demonstrations, et cetera.
Free sampling refers to small quantities of the product provided for free to
demonstrate its features and benefits. Samples may be distributed through the mail,
in public places, door-to-door, in or on packages, through store demonstrations, et
cetera.
Price reductions offer the customer an immediate amount off the usual price, or
offer a larger pack at no increase in the retail price. Examples of price reductions are
“cents-off” label-price packs (e.g., special 99c price instead of $1,29), bonus packs
(e.g., four for the price of three), and larger units offered at the price of the regularsized unit (e.g., a 1,5 litre bottle for the price of 1,0 litre).
Refund offers allow the customer to recover a certain amount from the disbursed
price – either in cash or in coupon value – when proof of purchase of a designated
product is presented. There are single-brand and multi-brand refund offers. Multibrand offers require the customer to collect proofs of purchase from several related
brands (e.g., cereals or detergents) before the refund can be obtained.
Continuity offers – unlike the above sales-promotion techniques, are designed for
long-term action by encouraging customers to purchase the product at more frequent
intervals. They include stamp plans (collecting a certain number of stamps that may
later be traded for cash, merchandise or a combination of the two) and in/on pack
continuity premiums encouraging the customer to complete a set of merchandise
(e.g., a set of towels or dishes) by purchasing the promoted brand repeatedly in
order to acquire additional/complementary units of the product offered as a
premium.
Tie-in or group promotions (combined offers) involve two or more brands
simultaneously; the customer is offered an incentive to purchase all of the
participating brands. This technique is usually linked to a common theme, and often
uses other forms of sales promotion (e.g., refunds, coupons, and contests). An
example of a group promotion would be to offer two different household products
(e.g., soap and toothpaste) tied together as a refund promotion, which entitles the
customer to receive rebate if he or she bought the two products.
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2.1.4 Direct Marketing
Direct marketing is promotion via a mail shot (delivered in the post), a mail drop
(delivered to the door), telemarketing (unsolicited phone calls) or a fax message (also
unsolicited), guaranteeing exposure to individual members of a target audience. (Baker,
1994) Direct marketing brings the market directly into the home or office of an
individual buyer instead of the buyer having to go to the market. There are occasions
when an immediate sale is not appropriate, so direct marketing techniques can be used
here to move buyers through various stages of the buying process, e.g. to get buyers to
visit an exhibition, call into a showroom for a test drive, establish contact, et cetera.
Direct marketing should not be used solely as a tactic, e.g. a one-off mail short designed
to win an initial sale. It can and should be used on a more strategic basis by integrating
it with other marketing communication tools and in the longer term by developing a
database. (Smith, 1998)
Direct marketing includes direct mail, telemarketing, door-to-door selling, direct
response advertising (TV, radio, cinema, web and press advertisements that solicit an
immediate response, e.g. “phone now” or “fill in the coupon”), computerised home
shopping (link home computer with a store so that one can browse around the aisles,
pick up merchandise, inspect it by turning it around on screen, et cetera.), home
shopping networks, and miscellaneous (stuffers, inserts, leaflet drops/ house to house
distribution). (ibid)
2.1.5 Public Relations
Publicity is promotion via a release to definable news media in the hope of secondary
exposure via an editorial mention earned by the newsworthiness of the subject matter.
(Baker, 1994) Positive publicity is dependent primarily on good relationships with the
media (media relations). This is only one of the responsibilities of public relations.
Public relations integrate with most aspects of an organisation’s activities. Public
relations are regularly, and sometimes worryingly, referred to as “PR”, which is often
confused with “press releases” or “press relations”. These are only a part of real public
relations. (Smith, 1998)
A simple definition of public relations is: “the development of and maintenance of good
relationship with different publics”. The publics are the range of different groups on
which an organisation is dependent. These include employees, investors, suppliers,
customers, distributors, legislators/regulators/governments, pressure groups, the
community, the media, and even competition. Most of these groups have different
(often conflicting) interests in any particular organisation. The UK’s institute of Public
Relations (PR) uses the following public relations definition: “the planned and sustained
effort to establish and maintain goodwill and mutual understanding between an
organisation and its publics”. While marketing transitionally focuses on markets or just
three of the publics, i.e. customers, distributors, and competition, public relations is
concerned with many more publics. (ibid)
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The basic components of public relations, according to Wilcox, Ault and Agee (1997),
include the following:
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Counselling – Providing advice to management concerning policies, relationship,
and communications.
Research – Determining attitudes and behaviours of publics in order to plan public
relations strategies. Such research can be used to (1) generate mutual understanding
or (2) influence and persuade publics.
Media relations – Working with mass media in seeking publicity or responding to
their interests in the organisation.
Publicity – Disseminating planned messages through selected media to further the
organisation’s interests.
Employee/Member Relations – Responding to concerns, informing, and motivating
an organisation’s employees or members.
Community Relations – Planned activity with a community to maintain an
environment that benefits both the organisation and the community.
Public Affairs – Developing effective involvement in public policy, and helping an
organisation adapt to public expectations. The term also is used by government
agencies to describe their public relations activities and by many corporations as an
umbrella term to describe multiple public relations activities.
Government Affairs – Relating directly with legislatures and regulatory agencies on
behalf of the organisation. Lobbying can be part of a government affairs program.
Issue Management –Identifying and addressing issues of public concern that affect
the organisation.
Financial Relations – Creating and maintaining investor confidence and building
good relationship with the financial community. Also known as Investor Relations
or Shareholder Relations.
Industry Relations – Relating with other firms in the industry of an organisation and
with trade associations.
Development/Fund-Raising – Demonstrating the need for and encouraging the
public to support an organisation, primarily through financial contributions.
Multicultural Relations/Workplace Diversity – Relating with individuals and groups
in various cultural groups.
Special Events – Stimulating an interest in a person, product, or organisation by
means of a focused “happening”; also, activities designed to interact with publics
and listen to them.
Marketing Communications – Combination of activities designed to sell a product,
service, or idea, including advertising, collateral materials, publicity, promotion,
direct mail, trade shows, and special events.
2.1.6 Sponsorship
Sponsorship is promotion via association of a product or service with an entity, event or
activity (such as sports teams, music concerts or cultural programmes) in the
expectation of secondary exposure via attribution to the sponsor during associated
media coverage. (Baker, 1994) Sponsorship is more than patronage, altruism or
benefaction. It can indeed help others while simultaneously achieving specifically
defined communications objectives. Some sponsors see sponsorship as a form of
enlightened self-interest, where a worthy activity is supported with cash and/or
consideration in return for satisfying specific marketing or corporate objectives. As
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sponsorship matures, it’s divers rage of programmes, objectives, advantages and
disadvantages require a relatively sophisticated level of management understanding.
(Smith, 1998)
Target audience must be researched in detail, crystal-clear qualitative and quantitative
objectives must be set, appropriate types of sponsorship vehicles must be agreed,
considered and selected. A programme of integrated communications has to be planned
with precision and sufficient budgets have to be allocated to allow for leveraging,
stretching or maximising the overall sponsorship impact. (ibid)
All sectors of society can be targeted and reached through sponsorship. Just about
anyone or anything can be sponsored. You can even sponsor the possibility of an event.
The range of sponsorship opportunities is only limited by one’s imagination. The
obvious areas are sport, arts, education, community and broadcast. (ibid)
2.1.7 Exhibitions
Exhibitions are unique in that they are the only medium that brings the whole market
together – buyers, sellers and competitors – all under one roof for a few days. Products
and services can be seen, demonstrated or tested, and face-to-face contact can be made
with a large number of relevant decision-makers in a short period of time. Relationships
can be strengthened and opportunities seized if planned carefully. (Smith, 1998)
Exhibitions offer an array of opportunities, problems and challenges to the keen
marketing manager. They can be leveraged to the maximum effect by integrating them
with other communication tools and developing a longer-term perspective incorporating
an overall exhibition strategy. (ibid) According to Smith (1998) exhibition planning
skills require the manager to:
1. Prioritise exhibition objectives.
2. Develop an exhibition strategy.
3. Select the right shows.
4. Agree a design strategy.
5. Determine pre-show promotional tactics.
6. Train exhibition staff.
7. Finalise exhibition operational (daily action) plan.
8. Ensure follow-up.
9. Evaluate – post-show.
Exhibitions are a powerful marketing communication tool but they require detailed
planning and co-ordination of resources. Much research and analysis has to be
conducted, and many decisions have to be made. (ibid)
2.1.8 Packaging
Packaging is promotion via display, guaranteeing exposure to customers at the point of
sales, but not to a wider target audience. (Baker, 1994) Since many sales assistants have
been replaced by self-service systems, packaging today often has to act as a silent
salesman, helping customers by bringing a particular brand to their attention,
highlighting USPs (unique selling propositions/ unique benefits), giving friendly tips on
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usage and, ultimately, helping them to break through the misery of choice created by the
increasingly vast range of seemingly similar brands. (Smith, 1998)
The design of the pack can create competitive advantage by adding value, improving the
product (e.g. improving the freshness or making it easier to pour, et cetera), developing
stronger shelf presence, positioning a brand in a particular way, and creating or
strengthening the brands relationship with the buyer. Packaging can also be an
extraordinarily effective advertising medium, particularly in terms of cost and
penetration, and reach or cover of a target audience. On the self and in the home it
continues to work day in, day out, for 52 weeks of the year. (ibid)
No single element of the communication mix comes under as much environmental
scrutiny as packaging. In a sense, we will see less and less packaging as oversized
cartons and unnecessary layers of packaging are stripped away by environmental
pressures. Good pack design also pleases the distributor/retailer by helping to make
distribution, warehousing and use of shelf space more efficient. (ibid)
2.1.9 Point-of-Sale and Merchandising
There was a time when below the line point-of-sale (POS) materials were considered
relevant only to cosmetics, perfumery, confectionery or other impulse purchases. Today
merchandising techniques apply to a broader spectrum of marketers, from customer to
industrial. Although vast budgets can be spent above the line of advertising to gain the
customer’s attention or change an attitude, fewer resources are sometimes allocated to
the crucial moment in the buying process – the point in the buying cycle where the
customer is physically in front of the product or service and is about to make decision
whether to buy or pass by – the point of sale. (Smith, 1998)
The merchandising opportunity lies relatively untapped in industrial wholesale outlets
such as electrical wholesalers or builders’ suppliers, where a lot of merchandising tends
to look dusty, dirty and uninteresting. There is room here for creative, intelligent and
effective merchandising. It does require a delicate balance, since a hard-working
electrician in search of some 2-core 3mm cable might assume a distributor to be too
expensive if it looked too glitzy and comfortable. On the other hand, merchandising
here can provide customers with useful information, e.g. reminding the buyer about
other relevant products and any special offers. (ibid)
2.1.10 Word of Mouth
People talk about organisations, their products, their services and their staff. Whether it
is a complaint, admiration or an endorsement, products and services are often a source
of conversation. Today it is not just the products themselves but their marketing
communications, including advertising campaigns, editorial stories, publicity stunts and
special offers, which are discussed. (Smith, 1998)
Of all the elements of the communication mix, word of mouth (WOM) is by far the
most potent on a one-to-one basis. No amount of advertising or expert selling could
compete with a colleague or friend recommending or criticising a particular product or
service. Similarly, it is unlikely that a teaser advertisement could motivate a viewer
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actively to watch out for the next advertisement in a campaign in the way that WOM
could. For example, a previous discussion about a particular advertisement among
friends can arouse interest in and increase observation of subsequent television
advertisement. (ibid)
Communication tools themselves can be used to generate WOM. Publicity stunts, clever
mailings, creative promotions and challenging advertising campaigns stimulate
conversation among buyers and potential buyers, either because of their shock, humour
and entertainment, or because of their abstract ideas. There are other devices and
techniques that encourage and accelerate the WOM process such as postcards, digital
postcards, T-shirts, photographs, awards and certificates (issued to visitors, customers
and enquirers). The Internet can also accelerate word of mouth with its networks of
news groups, chat-rooms, discussion forums, and email chain letters. (ibid)
The personal WOM medium can be budgeted for, planned and integrated into the
marketing communications mix. This requires an understanding of opinion leaders and
opinion formers and the overall audience/target market. (ibid)
2.1.11 Corporate Identity
Corporate identity is what is says – a visual means of identifying a corporation,
company or organisation. Logos and names are only a part, albeit a very obvious part,
of an organisations identity. Corporate identity is a strategic asset that helps to achieve
the longer-term communication goals. It cannot therefore be used as a short-term
tactical tool like advertising or PR, which can change from day to day (if required). As
with any fixed asset, the corporate identity asset needs to be checked and maintained to
keep it in good working order. If allowed to fall into disarray or disrepair it can, like
other assets, eventually become a liability by projecting a inappropriate image. (Smith,
1998)
Corporate identity is a symbolic uniform that acts as a flag expressing everything about
the organisation. It is a visual system, which uses all the point of public contact. This
includes the “permanent media” or buildings (exterior and interior), signage, vehicles,
uniforms, business forms (invoices, cheques, letterhead, et cetera), literature (product
brochures, annual reports), exhibitions, et cetera. (ibid)
Wally Olins of the Wolf Olins corporate identity design consultancy suggest that
corporate identity makes the corporate strategy visible through design and that it can
specifically project three things: who you are, what you do and how you do it. (ibid)
According to Smith (1998) there are a number of stages in the management of corporate
identity:
1. Gain board-level support.
2. Assess current situation and determine ideal image.
3. Brief and select a designer.
4. Develop design concepts.
5. Select research, and test concepts.
6. Explain internally.
7. Implement launch and maintain.
8. Review and update.
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2.1.12 Studies on Communication Tools Used by Sellers
Patti (1977) conducted a study of sellers’ information sources in the capital equipment
industry. The study attempted to determine industrial sellers ranking of five important
pre-selected channels of communication. The author further ranks different information
sources ability in keeping customers and prospects informed as shown in table 2.1
below.
Table 2.1
Importance of Information Sources – Industrial Sellers
Rank Information Source
1 Salespeople
2 Company Catalogues
Advertising in Industrial and Trade
3
Magazines
4 Trade Shows
5 Direct Mail
Source: Adapted from Patti (1977), p. 262
The respondents selected “salespeople” as the most important way of providing
information to customers and prospects. Second came “company catalogues”.
“Advertising in industrial and trade magazines” was ranked third and “trade shows”
fourth. Finally “direct mail” was ranked “least important” among industrial sellers. As
stated earlier, the major components in the industrial communication mix are according
to Morris (1992) personal selling, advertising, sales promotion, and public relations.
Personal selling is usually the cornerstone in the communication effort, while
advertising, sales promotion and public relation generally fill supporting roles in the
industrial communication mix. Further Morris lists what he refers to as, “key industrial
communication tools” (pp 409-410). These are presented and explained below;
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General business publications – Large circulation magazines are aimed at a wide
variety of markets and buying influences.
Trade publications (vertical and horizontal) – Vertical publications are directed
toward a specific industry and its members. Horizontal publications are directed
towards a specific task, function, or area of concentration across multiple industries.
Industrial directories – A compiled list of known suppliers within a large variety of
product areas intended for use as a reference group for industrial buyers. There are
general directories covering most industries, directories for individual states, and
private directories.
Trade shows – A formal exhibition at which a supplier rents space to introduce and
display its products and make sales. Competitors’ products are also demonstrated at
these exhibitions. Personal contacts with a large number of prospective and present
customers in the industry can be established in a short period of time and in one
location.
Catalogues – Printed material containing information describing a supplier’s
products, their applications, and other product specifications (e.g., price) distributed
among organisational buying influences for use as a reference and buying guide.
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Catalogues often contain enough information so the buyer can purchase products
direct from them.
Direct mail – Letters or brochures sent to selected buying influences to provide
information on a supplier and its products or services. This types of media enables a
marketer to relay personalised messages to these influences.
Videos – A film illustrating the use and benefits of a company’s products or
services. These are given to customer organisations for viewing in-house on a VCR.
Technical reports – Written, detailed description of product design specifications
and performance capabilities. Results of product testing are summarised, including
data on quality and reliability.
Samples – Products given to certain customers on a trail basis for the purpose of
promoting and demonstrating a supplier’s product.
Publicity – A presentation of company and product information for which the
marketer does not pay and does not control. These presentations appear in media
forms (e.g., newspapers, trade journals) that can increase public awareness and can
develop a favourable image for an organisation.
Novelties – Free gifts such as calendars, pens, and paperweights that are imprinted
with a company’s name and possibly an advertising message. These small useful
items are given to customers as a reminder of a supplier and its products or services.
Telemarketing – Using the telephone to find out about a prospect’s interest in the
company’s products, to create an awareness or understanding of those products, and
even to make a sales presentation or take an order.
Examples of key industrial communication tools are described above, while Jacobson
(1990) depicts how marketing dollars are being allocated to these tools in Table 2.2.
Table 2.2
Rank
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5
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Allocation of Money Spent on Marketing in Industrial Firms
Industrial Communication Tools
Specialised Business Publications Advertising
Trade Shows, Exhibits, Displays
Catalogues, Technical Bulletins
Direct Mail
All Other Advertising, TV and Radio, Newspapers
Dealer Distributor Materials
General Magazine Advertising
Publicity and Public Relations
Directories, Yellow Pages
Source: Adapted from Jacobsson (1990), p. 31
The study showed that most money was spent on “advertising in specialised business
publications”, after that came “trade show, exhibits, displays” and on third place came
“catalogues, technical bulletins”.
2.2 The Web as a Marketing Communication Tool
There has been an explosive growth in the number of business using the Internet in
recent years. (Ranchhod, 1998) The Internet is an electronic medium based on
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broadcasting and publishing which facilitates two-way communication. (Berthon, Pitt &
Watson, 1996) It enables prospective customers to enter into a direct communication
with the firm’s information workers and make a case regarding their needs and their
unique problems. (Samli, Willis & Herbig, 1997) These exchanges are not physically
face-to-face, nor time bound. Essentially the communication is through computers on
networks, so that individuals and organisations can communicate directly with one
another regardless of where they are or when they wish to communicate. (Berthon et al.,
1998) The Internet enables the seller to provide information, and even selling
opportunities, through an extremely inexpensive medium. (Boyle & Alwitt, 1999)
The Internet can be used to conduct marketing research, reach new markets, serve
customers better, distribute products faster, solve customer problems, and communicate
more efficiently with business partners. It is also a useful tool for gathering intelligence
on customers, competitors, and potential markets. (Honeycutt, Flaherty & Benassi,
1998)
Many firms are bringing a global edge to provincial businesses by adopting the WWW.
Incorporating the WWW into a firm’s business strategy eliminates a number of national
and global market entry barriers, such as marketing costs, distribution, and shelf-space
acquisition. (ibid) The Web offers marketers the ability to make available full-colour
virtual catalogues, provide on-screen order forms, offer on-line customer support,
announce and even distribute certain products easily, and to elicit customer feedback. It
has introduced a much broader audience to the net, and also allows any one
(organisation or individual) to have a 24-hour-a-day presence on the Internet. (Berthon
et al., 1998)
From an industrial marketing perspective, the Web has a lot in common with a trade
show, for it can be thought of as a very large international exhibition hall where
potential buyers can enter at will and visit exhibitors and prospective sellers. (ibid)
Berthon et al. (1998) state that the Web is a new medium characterised by many factors.
They list ease of entry, relatively low set-up costs, globalness, time independence, and
interactivity.
2.2.1 The Role of the Web Site in the Marketing Communication Mix
The Web site is something of a mix between direct selling (it can engage the visitor in a
dialogue) and advertising (it can be designed to generate awareness, explain/
demonstrate the product, and provide information –without interactive involvement). It
can play a cost-effective role in the communication mix, in the early stages of the
buying process – need recognition, development of product specifications and supplier
search, but can also be useful as the buying process progresses toward evaluation and
selection, particularly as there are no middle parties to disrupt the communication
process involved in the final transaction. The Web site is also cost-effective in
providing feedback on product/service performance and might typically be viewed as
complementary to the direct selling activity by industrial marketers, and as
supplementary to advertising. (Berthon et al., 1998)
Different organisations may have different marketing objectives for establishing and
maintaining a Web presence. One organisation might wish to use the Web as a means of
introducing itself and its new products to a potentially wide, international audience. The
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objectives should be to create corporate and product awareness, and inform the market.
In this sense the Web provides businesses with the opportunity to expand the potential
customer base at the global level, at minimal expense. (ibid)
The Web site can be used to move customers and prospects through successive phases
of the buying process. They do this by first attracting net surfers, making contact with
interested surfers (among those attracted), qualifying/converting a portion of the
interested contacts into interactive customers, and keeping these interactive customers
interactive. Different tactical variables, both directly related to the Web site, as well as
to other elements of this conversion process: for example, hot links (electronic links that
link a particular site to and from other relevant and related sites) may be critical in
attracting surfers. Once attracted, it may be the level of interactivity on the site that will
be critical to making these surfers interactive. (ibid)
2.2.2 The Web Site as a Communication Tool
Experts advise that Web marketing differ from traditional marketing. This medium
requires a paradigm shift because marketing over the Internet is similar to traditional
person-to-person networking where the quality of the information provided and the
credibility of the organisation doing the offering are everything. (Honeycutt et al., 1998)
Industry experts suggest that a Web site must have clear and consistent information that
is constantly revised and updated. The firm must differentiate the Web site so it differs
from others. Like all other marketing media, customers compare the value of the firm’s
information and its helpfulness in aiding them in decision making. The cost of
establishing a Web site varies greatly, depending upon the firm’s initial goals and inhouse expertise. The type of Internet connection is also an important initial cost factor
to consider. (ibid)
The Internet provides enhanced communicative effencies among producers and buyers.
(Boyle & Alwitt, 1999) The Internet provides various tools for improving or supporting
communications with the different actors in the firm’s international network including
e-mail, Usenet and listserv groups, Internet relay chat, video conferencing et cetera.
(Hamill & Gregory, 1997)
Firms are setting up their homepages as a means of disseminating useful company and
specific product in formation to potential customers and encouraging customer feedback
and interaction. A good Web site can be used for advertising, corporate visibility, brand
name, recognition, public relations, press releases, corporate sponsorship, direct sales,
customer support and technical assistance. (ibid)
2.2.3 Benefits and Potential Drawbacks of the Web as a Communication Tool
Benefits
The two-way direct communication between customer and information workers offered
by the Internet is more effective than the traditional method of talking to the seller’s
information workers via its salespeople. The Web offers some major benefits according
to Samli et al. (1997) such as:
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No middle parties (intermediaries) that may disrupt the communication or provide
interference or noise in the communication process are involved in the transaction.
Visual communication in writing has long-lasting duration. The parties can work on
it and get back together at their discretion.
No physical intimidation exists to be triggered by personalities, their respective
performances, or their knowledge basis.
Flexible time and immediate response are extremely beneficial in an involved, timeconsuming, and complicated negotiation process. The Internet never sleeps and log
in all calls, allows one to work when one wishes and, vice versa, to not work when
one wishes. A message can be transmitted to literally hundreds if not thousands of
people at the touch of a keystroke.
Cost advantages exist in that all calls no matter to whom or where, are though a
local access telephone number. In essence, using the Internet has changed
communication costs from an uncertain variable cost to a forecastable fixed cost. Email via the Internet is much cheaper and faster than even fax.
The ability to carry on a detailed two-way communication may have a special
impact on the creativity of all of the parties involved. In fact, some ideas may never
surface unless such a communication setting is in place and used properly.
Potential Drawbacks
It is naive to presume that the Internet is perfect and presents no operational problems.
Some of the potential problems that already have been identified for the Internet include
according to Samli et al. (1997):
ΠResponse time Рmore than 99,9% of properly addressed first-class mail makes it to
its destination and the response time is long.
Œ User unfriendliness – the Internet may be the world’s most incredible library but it
is a library without a card catalogue or a librarian in sight. No maps, no signs, no
lane lines. The surface can be skimmed or dived as deep into as wanted, but without
proper equipment and training it can lead to that a visitor drown in the information
available.
ΠJunk mail Рe-mail has become so popular that managers now have to worry about
sorting through hundreds of messages a day to find the few nuggets of wisdom.
ΠFraud or criminal access Рthe fraudulent use of telephone credit cards and car
phones/portable phones shows how easy it is to gain access to codes and to enter the
telecommunications system at someone else’s expense. The Internet is no different.
ΠGovernment regulation and censorship Рas part of the larger telecommunications
reform bill, legislation that would outlaw harassment and indecent or pornographic
material that is transmitted through all telecommunications devices has been
introduced. The form and severity of inevitable governmental regulation and
interference will influence the final design and usability of the Internet.
ΠLimited access Рto make efficient use of the technology, both parties must have
access to the Internet.
ΠFace-to-face РSince almost 90% of all information is received non-verbally (that is
from facial or body language cues or how it is said, not what is said), the purely
verbal content of Internet messages can not convey all the information that actually
exists.
21
Chapter 2 Review of Literature
2.2.4 Promoting Web Sites with Other Media
The cross-fertilisation between the Web site and other traditional marketing media is
very important to the success of the Web site. The URL and the e-mail address should
be placed somewhere in every print-media advertisement that is made such as
magazines, newspaper, and newsletter. The Internet provides an exciting and enjoyable
experience for most users – those that might ignore the information in the traditional
print ads may be intrigued with seeing your Web site. The presence of Internet
addresses on printed materials projects a modern, up-to-date image for a company, even
to those who do not use the Internet. Other media that can be used to promote a Web
site are; the business card – putting the URL on all office stationery and on business
cards can stimulate interests and conversation, radio spots, and TV commercials –
television advertising is starting to show URLs and e-mail addresses and should be
displayed long enough for the viewer to write them down correctly. (Ellsworth &
Ellsworth, 1997) Web site activities must be integrated with the rest of the company’s
marketing program. The site must be continually promoted not just when it is first
launched. (Evans & King, 1999)
2.2.5 The Web Site and the Buying Process
Berthon et al. (1998, p. 693) augments the knowledge concerning trade shows as
promotional tools in the business environment. Further the authors’ presents the
possible role of the Web site as an industrial marketing promotional tool compared to
traditional tools during the stages of the buying process, shown in figure 2.1 on the next
page.
The industrial buying process can be thought of as a series of stages (left hand of figure
2.1) the buyer’s information needs differ at each stage, and therefore, so do the
communication tasks of the industrial marketer. These tasks can be mapped against
these stages, through a series of communication objectives. The relative effectiveness
(low, medium, and high) of a particular marketing communication tool is shown on the
right hand side of figure 2.1. So for example, generating awareness of a new industrial
product might be most effectively achieved through advertising in trade journals, whilst
closing a sale would best be achieved face-to-face, in a selling transaction. Industrial
marketers employ a mix of communication tools to achieve various objectives in the
marketing communication process, judiciously combining advertising and personal
selling, although leaning most heavily towards the latter in the majority of cases.
(Berthon et al., 1998)
22
Chapter 2 Review of Literature
Effectiveness of Marketing
Communication Tool
Buy - Stage
Low
1. Anticipation of recognition of a problem and
general solution.
Medium
Personal
Selling
High
Advertising
2. Determination of characteristics and quantity
of needed item.
3. Description of characteristics and quantity of
needed item
4. Search for and qualification of potential
sources
5. Acquisition and analysis of proposals.
6. Evaluation of proposal and selection of
suppliers
7. Selection of an order routine
8. Performance feedback and evaluation
Web Site
Figure 2.1 The Web Site as Part of the Marketing Communication Mix
Source: Berthon et al. (1998), p. 694
Berthon et al. (1998, p. 694) posit that the profile of a trade show on figure 2.1 would be
somewhere “down the middle” – that is, less effective than broadcast advertising and
achieving awareness, but more effective that personal selling; less proficient at closing
sales than personal selling, but much more so than broadcast advertising. Further
Berthon et al. (1998) states that a Web site would play a role of complementing both
advertising and personal selling efforts for the industrial marketer.
It is probable that many industrial marketers are on the Web simply because it is
relatively quick and easy, and because they fear that the consequences of not having a
presence will outweigh whatever might be the outcomes of a hastily ill-conceived
presence. This lack of clear and quantified objectives, understanding, and the absence of
a unified framework for evaluating performance, may have compelled decision makers
to rely on intuition, imitation, and experience when conceptualising, developing,
designing and implementing Web site. (ibid)
2.3 Integrated Marketing Communications
Although integrated marketing communications has become increasingly well known in
the 1990s on an international scale, there is not yet a common understanding of its full
scope nor of its exact definition. This is in spite of the individual words “integrated”,
“marketing” and “communication” being relatively clear. (Smith et al., 1998) illustrate
some important elements of a range of definitions, presented on the next page.
23
Chapter 2 Review of Literature
Definition 1:
“The management and control of all market communications.”
Definition 2:
“Ensuring that the brand positioning, personality and message are delivered
synergistically across every element of communication and are delivered from a
single consistent strategy.”
Definition 3:
“The strategic analysis, choice, implementation and control of all elements of
marketing communications which efficiently, economically and effectively influence
transactions between an organisation and its existing and potential customers and
clients.”
Although definition 3 is the most comprehensive there are common elements to all three
definitions. The main elements are a reference to all marketing communications; the
description of a strategic management process; the reference to an economic, efficient
and effective process; it is clear also that the process can be applied to any type of
organisation. (Smith et al., 1998)
IMC is both a concept and a process and the degree of integration within each
dimension can greatly vary. An organisation that has an IMC philosophy may or may
not physically integrate into one department the people responsible for the various
marketing communications functions, although the trend is to do so. (Duncan & Everett,
1993) The basic concept of IMC is synergism, meaning the individual efforts are
mutually reinforcing with the resulting effect being greater that if each functional area
had selected its own targets, chosen its own message strategy, and set it own media
schedule and timing. (ibid)
Percy (1997) strongly believes that the key to IMC is planning, and the ability to deliver
a consistent message. He further states that it is a good idea to think about all of the
marketing communications needs in an integrated way, ensuring what has become
known as the “one-voice, one-look approach” to how a brand, company, or service is
presented. Unintegrated communications activities can result in different messages
being sent out through different media. This in turn dilutes the message impact, splinters
the image and sometimes generates plain of confusion in the buyer’s mind. A strategic
decision to integrate the communication tools increases the communications’
effectiveness. Similarly, a longer-term strategic decision to build a database for direct
marketing purposes can also create competitive advantage. (Smith, 1998)
2.3.1 Benefits and Barriers to Integrated Marketing Communication
Benefits
Although IMC requires a lot of effort it delivers many benefits. It can create competitive
advantage, and boost sales and profits, while saving time, money and stress. (Smith,
1998)
Œ
IMC can wrap communications around customers and help them move through the
various stages of the buying process. The organisation simultaneously consolidates
24
Chapter 2 Review of Literature
its image, develops a dialogue and nurtures its relationship with customers. This
“relationship marketing” cements a bond of loyalty with customers that can protect
them from the inevitable onslaught of competition. The ability to keep a customer
for life is a powerful competitive advantage. (ibid)
Œ
IMC also increases profits through increased effectiveness. At its most basic level, a
unified message has more impact than a disjointed myriad of messages. In a busy
world a consistent, consolidated and crystal-clear message that bombard customers
each and every day. At another level, initial research suggest that images shared in
advertising and direct mail boost both advertising awareness and mail shot
responses. So IMC can boost sales by stretching messages across several
communication tools to create more avenues for customer to become aware, aroused
and, ultimately, make a purchase. (ibid)
Œ
Carefully linked messages also help buyers by giving them reminders, updated
information and special offer which, when presented in a planned sequence, help
them move comfortably through the stages of the buying process – and this reduces
their “misery of choice” generated by the wide range of competitive offerings. (ibid)
Œ
IMC also makes messages more consistent and therefore more credible. This
reduces risk in the mind of the buyer which, in turn, shortens the search process and
helps to dictate the outcome of brand comparisons. (ibid)
Œ
Unintegrated messages send disjointed messages that dilute the impact of the
message. This may also confuse, frustrate and arouse anxiety in customers.
Integrated communications present a reassuring sense of order. Consistent images
and relevant, useful messages help nurture long-term relationships with customers.
Here, customer databases can identify precisely which customers need what
information when and throughout their whole buying life. IMC saves money, as it
eliminates duplication in areas such as graphics and photography since they can be
shared and used in, advertising, exhibitions and sales literature. (ibid)
Œ
By using a single agency for all communications agency fees are reduced. And even
if there are several agencies times is saved when meeting bring all the agencies
together – for briefings, creative sessions, tactical or strategic planning. This reduces
workload and subsequent stress levels. (ibid)
Barriers
Despite its many benefits IMC has many barriers. In addition to the usual resistance to
change and the special problems of communicating with a wide variety of target
audiences, there are many other obstacles, which restrict IMC. These include: functional
silos; stifled creativity; time scale conflicts and a lack of management know how.
(Smith, 1998)
Œ
Rigid organisational structures are ingested with managers who protect both their
budgets and their power base. “Why should they share their budgets and allow
someone else to make decisions which previously were theirs? “ (ibid)
25
Chapter 2 Review of Literature
Œ
Sadly, some organisational structures isolate communications, data, and even
managers from each other; for example the PR department often doesn’t report to
marketing, the sale force rarely meet the advertising or sale promotion people, and
so on. Imagine what can happen when sales reps are not told about a new
promotional offer! And all of this can be aggravated by turf wars or internal power
battles where specific managers resist having some of their decisions (and budgets)
determined or even influenced by someone from another department. (ibid)
Œ
Here are two difficult questions – What should a truly integrated marketing
department look like? And how will it affect creativity? It shouldn’t matter whose
creative idea it is, but often it does. An advertising agency may not be so
enthusiastic about developing a creative idea generated by, say, a PR or a direct
marketing consultant. IMC can restrict creativity. No more wild and wacky sales
promotions unless they fit into the overall marketing communication strategy. The
joy of rampant creativity may be stifled, but the creative challenge may be greater
and ultimately more satisfying within a tighter, integrated, creative brief. (ibid)
Œ
Add different time scales into a creative brief and you’ll see time horizons provide
one more barrier to IMC. For example, imagine advertising, designed to nature the
brand over the longer term, may conflict with shorter-term advertising or sales
promotions designed to boost quarterly sales. The two objectives can be
accommodated within an overall IMC if carefully planed, but this kind of planning
is not common. A survey in the mid-1990s revealed that most American mangers
lack expertise in IMC. But it’s not just managers, it’s also agencies and there is a
proliferation of single discipline agencies. There appear to be very few people who
have real experience of all the marketing communications disciplines. This lack of
know-how is then compound by a lack of commitment. (ibid)
2.3.2 Ten Golden Rules in Integrated Marketing Communication
Smith (1998) lists ten golden rules within integrated marketing communication. These
are:
1. Get senior management support - Get senior management support for the initiative
by ensuring firstly that they understand the benefits of integration, and secondly that
they support its implementation.
2. Practise vertical and horizontal integration - Put integration on the agenda for
meetings of different levels of management and different types of meetings –
whether creative sessions or annual reviews. Ensure that it is implemented
horizontally, that all managers, not just marketing managers, understand the
importance of a consistent message, whether on delivery trucks or through product
quality. Ensure also that advertising, PR, sales promotion and other communications
means meet and work together and really integrate their message.
3. Use design manual and brand book - Ensure design manual is used to maintain
common visual standards for the use of logos, typefaces, colours and the brand book
is used to maintain a consistent brand personality across all communications.
26
Chapter 2 Review of Literature
4. Focus on a clear marketing communications strategy - Have crystal-clear
communications objectives and positioning statements and link core brand values
into every communication. Ensure that all communications reinforce, reiterate and
add value to (instead of deleting) the brand. Exploit areas of competitive strength
and advantage.
5. Start with a zero budget - Build a budget and the communications plan around what
you need to do to achieve your objectives. Then practise what simply has to be
done.
6. Think customers first - Identify the stages a customer goes through before, during
and after a purchase. Develop a sequence of communication activities, which will
help the customer more favourably through each stage. Design communication
around the customer’s buying process.
7. Build relationships and brand values - All communications should help to develop
stronger relations’ whit customers. Ask how each communication tool helps to do
this. Customers’ retention is sometimes given more importance than customer
acquisition. Ensue that each communication strengthens the brand value.
8. Develop a good marketing information system (MkIS) - The MkIS should define
who needs what information when integrated marketing communications
encourages the development of a system which defines, collects and shares vital
information. A customer database, for example, can help direct mail, telesales and
the salesforce to help each other.
9. Share artwork and other media - Consider how artwork for one communication
tool (e.g. advertising) can be used in mailshots, exhibitions, point of sale, packaging,
new releases, newsletters, Christmas cards and even the Internet.
10. Learn from experience - Be prepared to change it all. Constantly search for the
optimum integrated communications mix. Test and improve each year.
2.3.3 Studies on Integrated Marketing Communication
McArthur and Griffin (1997) conducted a study on U.S. firms were advertising and
marketing executives were given a list of 13 advertising and marketing subjects,
including IMC, and asked to rank each on a 5-point scale in terms of receiving their
time and attention during the past year. In Table 2.3, the mean score for business firms
are plotted on a scale of 5 (“receiving a lot of attention”) to 1 (“receiving very little
attention”) for the 13 subjects.
The findings of the study showed that IMC was a subject that received major attention
for business firms. The subject that was giving the lowest attention was national/local
advertising ratio.
27
Chapter 2 Review of Literature
Table 2.3
Time and Attention Devoted to Selected Advertising and Marketing
Subjects
Time and Attention Devoted to Selected
Advertising and Marketing Subjects
Mean Scores
Ranked 1-5
Integrated Marketing Communications
3,7
Ad Effect on sales
2,7
Division of AD $ among Media Alternatives
2,8
Mass Media Efficiency
2,65
Changes in Customer Activities,
Interests, Lifestyles
3,15
Ad $ / Market Share Ratio
2,6
Relationship Marketing
2,8
Special Events
3,3
Allocate Promo $
3,15
Comparative Advertising
2,5
Interactive Media/Marketing
2,5
Social Influences of Advertisements
2,4
Source: Adapted from McArthur and Griffin (1997), p. 21
In a related study McArthur and Griffin (1997) conducted a study in which they gave
the respondents the opportunity to relate which of 13 specific communication
alternatives were considered and to what extent when a campaign was being planned.
Against each alternative they had the opportunity to check one of four possibilities:
“always”, “frequently”, “seldom”, or “never”. The findings are set forth in Table 2.4 on
the next page.
28
Chapter 2 Review of Literature
Table 2.4
Marketing Communications Alternatives: Percent
“Always” or “Frequently” in Campaign Planning
Alternatives for Marketing
Communications
Considered
Percent
Considered
"Always" or "Frequently"
Public Relations
92
Product Publicity
92
Trade Publications
90
Exhibitions/ Shows
90
Direct response
71
Collateral Material
61
Trade Promotion
60
P-o-S Material
60
End-User Programs
54
Personal Selling
53
Mass Media
52
Special Events
49
Telecommunications
40
Source: Adapted from McArthur and Griffin (1997), p. 22
The study showed that there is a substantial variance among the various alternatives.
Most frequently considered in campaign planning were “public relations”, “product
publicity”, “trade publications”, and “exhibits/shows”. (McArthur & Griffin, 1997)
29
Chapter 3 Conceptualisation and Emerged Frame of Reference
3 CONCEPTUALISATION
REFERENCE
T
AND
EMERGED
FRAME
OF
his chapter includes the conceptualisation and the emerged frame of reference
of this study. The conceptualisation allows us to answer this study’s research
questions. The frame of reference, which results from this conceptualisation,
will guide the data collection in this study.
3.1 Conceptualisation
Miles and Huberman (1994), state that a conceptual framework (i.e. frame of reference),
“explains, either graphically or in narrative form, the main things to be studied” (p. 18).
The authors also point out that it is often easier to generate a conceptual framework
after you have made a list of research questions, which we have done in this study.
The first question focuses on how a business-to-business firm’s use of the traditional
marketing communication tools can be described. The second question deals with how a
business-to-business firm’s use of the Website as a marketing communication tool can
be described. The final research question involves how a business-to-business firm
integrates the marketing communication tools.
Based on our research questions we have conceptualised the theory, which we will rely
on in the investigation, into a conceptualisation that will serve as foundation to the data
collection.
3.1.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described?
Regarding the first research question we are going to use the below listed authors
previous studies in order to be able to collect data based on our research questions. We
are going to use below listed authors and combine their previous studies into an eclectic
list (i.e. composed of elements drawn from various sources), which we are going to use
to collect the data for chapter five. The eclectic list is based on Smith (1998) and then
filled in with the rest of the authors Boddewyn and Leardi (1989), Foster (1998), Smith
et al., (1998), Baker (1994), Wilcox et al., (1997) previous studies in order to receive a
more detailed list. We decided to use Smith (1998) since his list was the most extensive
one. Further personal selling, advertising, sales promotion, and public relations, the
major components of the industrial marketing communication mix are going to be
investigated more deeply than the rest of the communication tools. The reason for this
selection is because these are the most commonly used communication tools and are
widely recognised and used by scholars, as stated by Morris (1992).
ΠPersonal selling
Personal selling could include face-to-face sales calls/meetings, telephone sales calls,
videoconferencing, and conferences/seminars.
ΠAdvertising
Advertising could include newspapers, direct mail, catalogues, technical reports, videos,
branch magazines (trade journals, business magazines).
30
Chapter 3 Conceptualisation and Emerged Frame of Reference
ΠSales promotion
Sales promotion could include premiums, price, gifts/free sampling, competitions, and
sales force promotion.
ΠPublic relations
The basic components of public relations include; media relations/publicity,
employee/member relations, community relations, financial relations /investor relations
/shareholder relations, industry relations, and special events.
ΠSponsorship
Different kind of sponsorship could include sports teams, cultural programmes, arts,
education, community, and broadcast.
ΠExhibitions
Exhibition planning skills require the manager to select the right shows, train exhibition
staff, and ensure follow-up.
ΠPackaging
Packaging could include specific design and improvement of packaging.
ΠWord of mouth
Of all the elements of the communications mix, word of mouth (WOM) is by far the
most potent on a one-to-one basis. No amount of advertising or expert selling could
compete with a colleague or friend recommending or criticising a particular product or
service.
ΠCorporate identity
Corporate identity could include logotype/name on “permanent media”, buildings,
vehicles, uniforms, business forms, and literature.
3.1.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described?
To be able to collect data to the second research question we will use Hamill and
Gregory (1997), Berthon et al., (1998), and Ellsworth and Ellsworth (1997) previous
studies on the Website as a communication tool. These studies will then be turned into
an eclectic list that we will use during the data collection. The reason for the selection of
these authors is that these authors’ studies are the most recent and comprehensive ones.
ΠThe use of the Website
The Website could be used to inform the market, hot links, provide full-colour virtual
catalogues, on-screen order forms, online customer support/feedback, demonstrate
products, corporate visibility/brand name, and technical assistance.
ΠThe function of the Website
It can function as a complementary or as a supplementary to the other communication
tools.
31
Chapter 3 Conceptualisation and Emerged Frame of Reference
ΠReasons for being on the Web
The reasons for being on the web could be that it is quick and easy or of fear of the
consequences of not having a presence.
ΠMedia used to promote the Website
Media that can be used to promote the Website are every print-media such as
magazines, newspapers, newsletters, and the business card.
3.1.3 Research Question Three, How Does a Business-to-Business Firm Integrate
the Marketing Communication Tools?
Concerning the third research question, below presented authors’ studies on integrated
marketing communication will be used in order to be able to collect data based on our
research questions. The authors we will use are Smith (1998) and McArthur and Griffin
(1997). The reason for this selection is that these studies are the most comprehensive
and recent ones.
Smith (1998) presents ten golden rules in integrated marketing communication. These
are;
ΠGet senior management support
ΠPractise vertical and horizontal integration
ΠUse design manual and brand book
ΠFocus on a clear marketing communications strategy
ΠStart with a zero budget
ΠThink customers first
ΠBuild relationships and brand values
ΠDevelop a good marketing information system (MkIS).
ΠShare artwork and other media
ΠLearn from experience
McArthur and Griffin (1997) conducted two studies on integrated marketing. The first
study’s findings showed the importance of integrated marketing. The second study
showed that the most commonly used communication tools when planning a campaign
were public relations/publicity, trade publications (what we refer to as advertising), and
exhibitions/shows.
32
Chapter 3 Conceptualisation and Emerged Frame of Reference
3.2 Emerged Frame of Reference
As pointed out earlier in this chapter, the conceptualisation above is what will allow us
to answer this study's research questions. Based on the research questions and the
purpose of this thesis stated in chapter one, we have created a frame of reference. This
frame of reference which also results from this conceptualisation, is what will guide this
study's data collection. The frame of reference is presented in figure 3.1 below.
RQ 1
Traditional
Marketing
Communication
Tools
RQ 2
The Web Site as a
Marketing
Communication
Tool
RQ 3
Integration
Figure 3.1 The Frame of Reference of this Study
Source: Olander & Sehlin (2000)
The emerged frame of reference shows the connection between the research questions.
The industrial marketer can choose to use a variety of different traditional
communication tools in the way she/he communicates with the market. The marketer
can also choose to use the Website as a marketing communication tool in the market
communication. The arrow between the two squares symbolises that the Website could
complement the other traditional communication tools and that the traditional
communication tools can promote the Website. The marketer can also choose to
integrate the communication tools in the communication mix in order to create a bigger
impact of the message that is sent out to the customers.
33
Chapter 4 Methodology
4 METHODOLOGY
T
his chapter covers the research methodology that will be used for collecting the
data necessary to obtain answers to the research questions. In order to do this a
series of steps will be followed. These methodological issues are presented
below in figure 4.1, which show a graphical overview of the methodology
issues used in this study.
Validity and Reliability
Research
Purpose
Research
Approach
Research
Strategy
Data
Collection
Sample
Selection
Data
Analysis
Figure 4.1 A Graphical Overview of the Methodological Issues for this Study
Source: Adapted from Foster (1998), p. 81
4.1 Purpose of Research
A research can be classified into three basic purposes exploratory, descriptive and
explanatory. (Yin, 1994)
Œ
An exploratory stage is a research that is designed to allow an investigator to just
“look around” with respect to some phenomenon, with the aim being to develop
suggestive ideas. The research should be as flexible as possible and conducted in
such a way as to provide guidance for procedures to be employed during the next
stage.
Œ
The objective of a descriptive stage is to develop careful descriptions of patterns
that were suspected in the exploratory research. The purpose may be to develop
intersubjective descriptions (i.e. empirical generalisations). Once such
generalisations begin to emerge, they are thus worth, explaining, which of course
leads to theory development in the long run.
Œ
The purpose of an explanatory stage is to develop explicit theory that can be used to
explain the empirical generalisations that evolved from the second stage. (Reynolds,
1971) This provides a cycle then of: (1) theory construction; (2) theory testing
(attempt to falsify with empirical research); and (3) theory reformulation (back to
step one). (Reynolds, 1971) Explanatory research is a casual research that is used to
explain a certain set of events and to indicate how the investigation may apply to
other investigations. (Yin, 1994)
Based on the purpose and the research questions involved the overall purpose of this
study will be to explore, describe and to a certain degree begin to explain. We are
exploring what our purpose brings up, describing what is brought up with the research
questions and are beginning to explain since we are drawing conclusions (i.e. answer
34
Chapter 4 Methodology
the research questions). This study is more exploratory and descriptive than
explanatory.
4.2 Research Approach
Qualitative and Quantitative Methods
In the social sciences there are two different methodological approaches, qualitative and
quantitative (Holme & Solvang, 1997). Both approaches have their strengths and
weaknesses and neither one of the approaches can be held better than the other can. The
best research method to use for a study depends on that studies research problem and
the accompanying research questions. (Yin, 1994) According to Holme and Solvang
(1997), the general picture that qualitative methods can give, makes it possible to get an
additional understanding of social processes and relations. One typical characteristic of
qualitative studies is that they to a large extent are founded on description, that is, on the
involved person’s own description, emotions and reactions (Yin, 1994). A quantitative
research is generally considered to be the only approach that gives an objective truth,
because it converts information into numbers. The method is generally used when the
researcher conducts a wide investigation that contains many units. The researcher must
have a distance to the investigated object to reach a satisfying degree of objectivity.
(Holme & Solvang, 1997)
We have used a qualitative method when conducting our empirical study because it was
the alternative that best suited our research questions. We found that looking deeper and
more in detail at a few companies way of using and integrate the different
communication tools in their communication mix will help us answer our research
questions better than doing a superficial investigation, as can be achieved when
conducting a quantitative approach.
4.3 Research Strategy
According to Yin (1994) there are five primary research strategies in the social sciences.
These include experiments, surveys, archival analysis, histories, and case studies.
Which one of these five strategies that are most suited for a study, depends on the type
of research question, the degree of control the researcher has over the study, and
whether the study has its focus on contemporary events. Figure 4.1 on the next page
shows relevant situations for the different research strategies.
An experiment is not appropriate in this study because we have no intention to
investigate cause/effect relations, which an experiment often is used for. Another reason
for not selecting experiment is that it demands control over behavioural event, which is
not possible in a study like this. Archival analysis is based on secondary data. We did
not collect any secondary data concerning companies use and integrating of the
communication tools in their communication mix, therefore was archival analysis as a
research strategy not appropriate in this study. Histories is neither suitable as method of
data collection since it lacks focus on contemporary events, which this thesis is focused
on.
35
Chapter 4 Methodology
A survey was not suitable since it would have limited the investigation because we
would not be able to study the selected area in detail. Further is the character of this
thesis to study a large number of variables on a few numbers of units (companies),
which a survey would not have enabled us to do. Finally another reason for not
selecting survey as research strategy is because we do not have time to conduct surveys
on larger samples.
Table 4.1
Relevant Situations for Different Research Strategies
Strategy
Form
of Research
Question
Requires Control
over Behavioural
Events
Focuses on
Contemporary
Events
Experiment
How, Why?
YES
YES
Survey
Who, What, Where,
How Many, How Much?
NO
YES
Who, What, Where,
How Many, How Much?
NO
YES/NO
History
How, Why?
NO
NO
Case Study
How, Why?
NO
YES
Archival Analysis
Source: Adapted from Yin (1994), p. 6
According to Yin (1994), a case study approach should be used when how or why
questions are being posed about a contemporary set of events over which the researcher
has little if any control. This study is based on research questions of how character and
focuses on contemporary sets of events, therefore we thought that a case study was the
most suitable research strategy for this study.
Yin, (1994) states that a study may contains more than a single case. When this occurs
the study has to use a multiple-case design. Multiple-case designs have distinct
advantages and disadvantages in comparison with single-case designs. The evidence
from multiple cases is often considered more compelling, and the overall study is
therefore regarded as being more robust. In this study we have choose to use multiple
cases in order to be able to generalise and to draw more specific conclusions.
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Chapter 4 Methodology
4.4 Data Collection Method
According to Yin, (1994) data for case studies can be collected from six sources:
documents, archival records, interviews, direct observation, participant-observation, and
physical artifacts. The use of these six sources of evidence calls for slightly different
skills and methodological procedures. In the figure 4.2 on the next page an overview of
the six major sources of evidence is presented together with their comparative strengths
and weaknesses.
Table 4.2
Sources of Evidence
Source of Evidence
STRENGTHS
•
Documentation
•
•
•
•
Archival Records
•
•
Interviews
•
•
Direct
Observations
•
Stable: can be reviewed
repeatedly
Unobtrusive: not created as a
result of the case
Exact: contains exact names,
references, and details of an
event
Broad Coverage: long span of
time, many events, and many
settings
(Same as above for
documentation)
Precise and quantitative
WEAKNESSES
•
•
•
•
•
•
Targeted: focuses directly on •
case study topic
Insightful: provides perceived •
causal inferences
•
•
Reality: covers events in real •
time
•
Contextual: covers context of
event
•
•
•
Participant
Observation
•
•
Physical Artifacts
•
(Same as for direct
observations)
Insightful into interpersonal
behaviour and motives
•
Insightful into cultural
features
Insightful into technical
operations
•
•
•
Retrievability: can be low
Biased selectivity: if collection
is incomplete
Reporting bias: reflects
(unknown) bias of author
Access: may be deliberately
blocked
(Same as above for
documentation)
Accessibility due to privacy
reasons
Bias due to poorly constructed
questionnaires
Response bias
Inaccuracies due to poor recall
Reflexivity: interviewee gives
what interviewer wants to hear
Time consuming
Selectivity: unless broad
coverage
Reflexivity: event may proceed
differently because it is being
observed
Cost: hours needed to human
observers
(Same as for direct
observations)
Bias due to investigator’s
manipulation of events
Selectivity
Availability
Source: Yin (1994), p. 80
Documentation can take many forms and should be the object of explicit data collection
plans. There are a variety of documents such as letters, agendas, administrative
37
Chapter 4 Methodology
documents et cetera. For case studies, the most important use of document is to
corroborate and augment evidence from other sources. Because of their overall value,
documents play an explicit role in any data collection in doing case studies. Systematic
searches for relevant documents are important in any data collection plan. (Yin, 1994)
In this study we have used documentation in the form of information such as brochures
and other information material, that were handled to us by the interviewed respondents.
Therefore documentation is used as data collection method in this study.
Yin, (1994) states that for many case studies, archival records – often in computerised
form may also be relevant. These can be service records, organisational records, maps
and charts, lists of names, survey data, and personal records. These and other archival
records can be used in conjunction with other sources of information in producing a
case study. Unlike documentary evidence, the usefulness of these archival records will
vary from case study to case study. This study has character of being a qualitative study,
therefore is the use of archival records not appropriate because it has the strength of
being precise and quantitative.
One of the most important sources of case study information is according to Yin, (1994)
the interview. The interview may take several forms. Most commonly, case study
interviews are of an open-ended nature in which you can ask key respondents for the
facts of a matter as well as for the respondents’ opinions about events. The more that a
respondent assists in this latter manner, the more that the role may be considered one of
an “informant” rather than a respondent. Key informants are often critical to the success
of a case study. The second type of interview is a focused interview, in which a
respondent is interviewed for a short period of time – an hour, for example. In such
cases, the interview may still remain open-ended and assume a conversational manner,
but you are more likely to be following a certain set of questions, derived from the case
study protocol. Finally the third type of interview, the structured interview, involve
more of what can be found in survey research, where the interview is guided by a set of
pre-designed questions.
Overall, interviews are an essential source of case study evidence because most case
studies are about human affairs. These human affairs should be reported and interpreted
through the eyes of specific interviewees, and well-informed respondents can provide
important insights into a situation. They also can provide shortcuts to the prior history
of the situation, helping you to identify other relevant sources of evidence. The
interviews should always be considered verbal reports only, since they are subject to the
common problems of bias, poor recall, and poor or inaccurate articulation. (ibid) In this
study we have decided to rely on interviews to collect the data. We found that it was the
most suitable method to collect data in order to fulfil the purpose of this study and to be
able to answer the research questions. The interview can be classified as a focused
open-ended interview since the interviews are conducted by a set of questions derived
from a case study protocol (i.e. interview guide) from which the respondents is allowed
to open and freely discuss his or her opinions and insights.
Direct observations might be made throughout a field visit, including those occasions
during which other evidence, such as that from interviews, is being collected.
Observational evidence is often useful in providing additional information about the
topic being studied. Participant observation is a special mode of observation in which
you are not merely a passive observer. Instead you may assume a variety of roles within
a case study situation and may actually participate in the events being studied. (ibid)
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Chapter 4 Methodology
Direct observation and participant observation was not of interest because of the lack of
time and costs. Another reason for not using direct observation and participant
observation is because the character of this thesis is not to focus on events in real time
but instead to focus on the respondents views of the use of marketing communication
tools in the communication mix.
Physical artifacts are a technological device, a tool or instrument, a work of art, or some
other physical evidence. Such artifacts have less potential relevance in the most typical
kind of case study. However, when relevant, the artifacts can be an important
component in the overall case. This form of source of evidence is neither used
considering the fact that this study does not involve the need to obtain evidence of
“cultural features”.
Yin (1994) states, “a major strength of case study data collection is the opportunity to
use many different sources of evidence” (p. 91). Yin calls this use of multiple sources of
evidence “triangulation”, which means that the researcher has the opportunity to obtain
multiple measures of the same phenomenon, which in turn adds to the validity of any
scientific study. The use of multiple sources of evidence in case studies allows an
investigator to address a broader range of historical, attitudinal, and behavioural issues.
The most important advantage presented by using multiple sources of evidence is the
development of converging lines of inquiry that is a process of triangulation. With
triangulation, the potential problems of construct validity also can be addressed, because
the multiple sources of evidence essentially provide multiple measures of the same
phenomenon. (ibid) In this study data will be collected from multiple sources in the
form of documentation (i.e. the material that were handled to us by the respondents) and
interviews.
4.5 Sample Selection
This sections purpose is to present the way in which companies, as well as the
individuals within those companies will be selected for this study. In this study selling
firms within the manufacturing industry will be focused upon, since previous studies
show that the major growth of the use of the Web is expected to be in the business-tobusiness area. The criteria for the selection of the sample companies were; (1) that the
firm is a business-to-business firm, (2) that is located in Norrbotten, in the northern of
Sweden, and (3) that the firm has got a well developed Website, on which the company
present extent product information about the product range.
When deciding which companies to choose we contacted Norrbottens chamber of
commerce, who provided us with a few company names that matched the above stated
criteria. From these companies we choose three companies Plannja AB, Liko AB, and
Svalson AB. The reason for the selection was that these companies were the ones that
presented their products in the best way on the Website and that the companies were
one of the leading companies within its industry.
Two face-to-face interviews were performed at each company with respondents at
different positions within the company, the CEO and the marketing manager in two of
the cases and the information manager and the marketing manager in the third case. The
reason for this selection of respondents was that we, as well as the companies’, believed
that these persons were the most suitable respondents and had the greatest knowledge
within the selected area.
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Chapter 4 Methodology
4.6 Data Analysis
Yin, (1994) states that every case study should start with a general analytical strategy.
These general analytical strategies with regards to case studies provide the researcher
with a system by which she/he can set priorities for what it is they need to analyse and
why. As Herriott and Firestone (1983) state in Yin, “The evidence from multiple cases
is often considered more compelling, and the overall study is therefore regarded as
being more robust” (p. 45). The way in which the data will be analysed is very
important for any research study. For this study it will involve the analysis of the
interviews conducted, as well as the review of any documentation that the firms handed
over. These multiple sources of evidence (i.e. triangulation) are what add to a study’s
validity (Yin, 1994).
Further Yin states, that before data actually can be analysed, a researcher using case
studies can choose from two general analytical strategies: relying on theoretical
propositions and developing a case description. In this study we will rely on theoretical
propositions, which is the most common strategy according to Yin (pp. 103-104). The
result of this is the collection of data based on research questions taken from previous
studies that will be analysed with the empirical findings collected from the interviews.
Specific techniques can be used to analyse the data collected from the interviews. Yin
(1994) presents two forms of analysis for the data collected in a case study; within-case
analysis and cross-case analysis. When conducting a within-case analysis the researcher
compares the data against the theory used (the frame of reference). A cross-case
analysis is made by comparing the findings in each case from the within-case analysis
with each other. In our study we will conduct both a within-case analysis and a crosscase analysis. First a within case analysis within each case and then a cross-case
analysis where the different cases will be compared.
In writing about qualitative data analysis, Miles and Huberman (1994) define data
analysis, “as consisting of three concurrent flows of activity: data reduction, data
display, and conclusion drawing/verification” (p. 10) Upon first obtaining data during a
“data collection period”, Miles and Huberman (1994) explain the three stages of
qualitative data analysis as follows:
Data reduction should not be considered to be separate from analysis, but as part of it.
This reduction of the data is analysis that helps to sharpen, sort, focus, discard, and
organise the data in a way that allows for “final” conclusions to be drawn and verified.
They add that data can be reduced and transformed through such means as selection,
summary, paraphrasing, or through being subsumed in a larger pattern. As data
reduction we will conduct a within-case analysis where we will compare the collected
data in each case with the theory in order to see if the data either verifies of falsifies
previous research.
Data display is the second major activity, which the researcher should go through, and
this means taking the reduced data and displaying it in an organised, compressed way so
that conclusions can be more easily drawn. These authors explain that, “humans are not
powerful processors or large amounts of information”, and that “extended text can
overload humans’ information-processing capabilities” (op. Cit., p. 11, with reference to
Faust, 1982). It is further explained that good displays are, “a major avenue to valid
qualitative analysis” (op. Cit., p. 11). In conclusion, they state that, as with data
40
Chapter 4 Methodology
reduction, the creation and use of displays is not separate from analysis, but is a part of
it. As data display we will accomplish a cross-case analysis in which we will make
matrices of various data sets and then compare one case to the others. The cross-case
analysis helps us to further reduce data in order to be able to draw conclusions.
Conclusion drawing and verification is the final analytical activity for the qualitative
researcher. It is here the researcher begins to decide what things mean. They do this by
nothing regularities, patterns, explanations, possible configurations, casual flows, and
propositions. However Miles and Huberman (1994) also add that the competent
researcher should hold such conclusions lightly, while maintaining both openness and a
degree of scepticism. First we reduced the collected data by conducting a within-case
analysis, then we displayed the data, which is done in a cross-case analysis. From such
ordered displays, commenting on the pattern that was discovered in the analysis can
more easily state conclusions.
4.7 Validity and Reliability
Validity can shortly be defined as the ability, of the measuring instrument, to measure
what you really intend to measure. (Carlsson, 1991) There are two kinds of validity,
internal and external validity. First, internal validity is a concern only for causal (or
explanatory) case studies, in which an investigator is trying to determine whether an
event led to another. Second, the concern over internal validity, for case study research,
may be extended to the broader problem of making inferences.
A case study basically involves an inference every time an event cannot be directly
observed. External validity deals with the problem of knowing whether a study’s
findings are generalisable beyond the immediate case study. The external validity
problem has been a major barrier in doing case studies. Critics typically state that single
cases offer a poor basis for generalising. Such critics are contrasting the situation to
survey research, in which a “sample” readily generalises to a larger universe. (Yin,
1994)
According to Yin (1994) a good guideline for doing case studies is to conduct the
research so that an auditor could repeat the procedures and arrive at the same results.
The goal of reliability is to minimise the errors and biases in a study. It means that if a
later investigator followed exactly the same procedures as described by an earlier
investigator and conducted the same case study all over again, the later investigator
should arrive at the same findings and conclusions. (Yin, 1994)
To minimise the errors in this study the interview guide was carefully read through and
tested on some students before it was sent to the respondents, in order to let the
respondents prepare themselves for the interviews. Resulting-questions were asked
during the interview to be sure that the respondents surely had understood the questions.
The interviews were conducted by one of the researchers in order to make the
interviews as similar as possible. The other researcher took notes during the interviews
in order to avoid any mistakes and to be sure that nothing was forgotten. Further the
interviews was recorded on tape and were listened through carefully by the researchers
before the compiling of the interviews were conducted. The random errors were
minimised since the same interview guide was used in all the interviews. When
selecting the respondents, consideration was taken to the respondents’ hierarchical
41
Chapter 4 Methodology
position in the company, in order to see if they have got the same comprehension
concerning the use and integration of the communication tools.
In order to improve the external validity we decided to conduct three case studies
(multiple case studies) in which we interviewed two respondents at different positions
within the companies. During the data collection multiple sources of evidence in the
form of documentation and interviews, were used which also adds validity to this study.
42
Chapter 5 Data Presentation
5 DATA PRESENTATION
T
his chapter contains the data collected from the three case studies. Each case
will be introduced with a minor introduction about the company, which is
followed by a presentation of the data collected from the interviews and the
documentation.
5.1 Plannja AB
Plannja AB operates in the building contractor business. It is situated in Luleå, in the
northern of Sweden. Plannja AB manufactures tin roofs and is one of the leading
companies within the building contractor business in Sweden. The company operates
not only in Sweden where it has got about 400 employees, but also in the Nordic
countries and in some of the member countries within the European Union. Last year’s
sales reached a billion. At Plannja AB the executive chief, Mikael Nyquist (MN), and
the marketing manager, Roland Marklund (RM) were interviewed.
5.1.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described?
Personal Selling
According to (MN) personal selling is a very effective communication tool in Plannja
AB’s line of business. The company has got about 30 employees that work with sales
support in Sweden. According to both respondents the tools used within personal selling
are face-to-face sales calls/meetings, telephone sales calls and conferences/seminars
since it is a major advantage to be able to create personal relations to the customers. The
company does not use videoconferences since it is not appropriate in their ways of
communicating with the market. Besides by us listed tools (RM) mentioned kick-offs as
another tool used by the company when presenting new products for the retailers. The
respondents also said that personal selling is an expensive but effective communication
tool, and that nothing is as valuable as a personal contact. (RM) added that the “Plannja
circle” is another way of personal selling. It means that the retailers invest money in the
company, and in return Plannja AB supports them wholehearted.
Advertising
(MN) considers advertising as a way of strengthening the brand and as a support to
personal selling. Further (MN) stated that they advertise in both newspapers and in
branch magazines (trade journals and business magazines), both alone and together with
the retailers that sell their products. He also mentioned that the advertising is performed
nation-wide and when advertising globally, Plannja AB uses specific branch magazines.
There are video-information cassettes, which are used to demonstrate how to lay a roof
and can be obtained from the retailers. Direct mail is considered as a big part of Plannja
AB’s advertising mix by both respondents and is commonly used. Examples can be
catalogues that are sent out to the customers that are in the customer record.
Miscellaneous is used in the form of leaflet drops, such as brochures and other sellmaterial for the retailers, and as advertisement supplement/folders. Further both
43
Chapter 5 Data Presentation
respondents stated that technical reports or articles are presented in branch magazines at
special occasions. Besides by us brought up advertising tools (MN) mentioned that
Plannja AB also sends out information CD-ROM’s to the customers in the customer
record. (BM) considered that advertising is an effective communication tool that can
reach many customers and could be quickly implemented. Further he claimed that if one
does not use advertising, nothing would be sold. (MN) thought that it can be hard to
determine how much money to spend on advertising and that it is hard to measure the
effects of it. Advertising is also an expensive item in the communication mix said (MN)
and (RM).
Sales Promotion
Regarding sales promotion (MN) said that is was a small part of the communication
mix. According to both respondents Plannja AB uses premiums, price reductions,
gifts/free sampling, and sales force promotion as sales promotion items. Premiums are
used in campaigns. For example if you by a product from Plannja AB you get a drill for
free. Price reductions such as quantity rebates are offered to big customers. (MN)
brought up that they offer volume related bonus agreement to special customers. Gifts
occurred in a little extension in the form of pens, calculators and wallets. (RM) stated
that free sampling is used in the form of for example colour samples, which is sent to
the customers. As sales force promotion, competitions for the sellers are provided in
order to motivate the sellers. According to (MN) Plannja AB also offers competitions
for the retailers’ i.e. those retailers who sale the most wins. These competitions are
mostly used during specific campaign. Concerning advantages for sales promotion
(RM) brought up that sales promotion is a way of getting activity from the customers.
Public Relations
Regarding media relations/publicity both respondents stated that Plannja AB sends
press releases about new products and other news to newspapers and other branch
magazines. (RM) said that with regard to employee/member relations Plannja AB has
got an internal Website (Intranet) created for internal communication, where for
example information for the employees is presented. They do also provide the
employees with information about what is going to happen in the future. The company
also arranges kick-offs for the employees when new products are to be introduced. Both
respondents considered that the relation to the employees was a highly important issue.
According to (RM) the sponsorship of Plannja basket is a big part of their relation to the
community. Both respondents stated that all financial relations are handled by the parent
company, SSAB. Regarding industry relations Plannja AB has relations to other
industrial companies. For example they have a close co-operation with SSAB their
parent company and some other trade associations and companies such as the institute
of steel and constructing (Stål och bygg Institutet) and Gullfiber AB. (RM) thought that
Plannja AB could improve the way they are handling public relations. (MN) brought up
that special events are performed in co-operation with the retailers for special occasions
i.e. a dinner or a conference were Plannja AB besides the social part also wants to bring
a specific message across to the retailers.
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Chapter 5 Data Presentation
Sponsoring
Both respondents agreed that sponsorship is a very big part of Plannja AB’s
communication mix. They are the main sponsors of Plannja basket, which is a
successful basketball team in Sweden. According to (MN) the sponsoring of Plannja
basket is an old collaboration. Besides the sponsoring of Plannja basket they are very
sparse with other sponsoring. The reason for this is because the sponsoring of Plannja
basket is so successful. And that the company has chosen the policy to only sponsor one
object and concentrate on that. (RM) also brought up that basketball has a positive
image in the publics’ eyes.
Exhibitions
According to both respondents Plannja AB participates in several exhibitions that are of
interest for the company and especially those that are highly important for the branch,
often the bigger ones. According to (RM) it is the local retailers that handle the smaller
exhibitions. He further pointed out that each exhibition has its own theme and that it is
important to plan the exhibition and advertise in order to get visitors. Both respondents
stated that they do not train the personnel that participate in the exhibitions since they
are already familiar with the product and the organisation. (MN) said that those who
participate in the exhibitions are personnel that do it regularly and are therefore familiar
with how to handle it. Plannja AB follows up the exhibitions on a regular basis. (MN)
also brought up that the company conducts several investigations among customers
about how effective the exhibitions are. (MN) further stated that the objective of
exhibitions was not to sell but to support their products and to allure new customers.
Packaging
According to both respondents the company has got a special design of the packaging
that should be recognised by customers and that should be easy to store in warehouses.
The logo is placed on the packages and the products (punched on the tin roofs) for
recognition. (RM) further mentioned that Plannja AB tries both to be cost effective and
aware of the environment aspect.
Word of Mouth
(RM) stated that word of mouth is an important issue for Plannja AB in order to obtain
information for buyers. (MN) said that they work hard to mediate their brand so that
everybody recognise it and talks about it. Both respondents expect that the customers
talk to each other about their products. If a customer is dissatisfied they try to solve it in
order to have a good reputation. (RM) also brought up a study that showed that a large
percent of the customers selected Plannja AB because their neighbour recommended
them.
45
Chapter 5 Data Presentation
Corporate Identity
According to both respondents the logotype is exposed at the company’s and the
retailers buildings as big signs, on the veichles, the sellers clothes, and at all business
forms and literature. (MN) pointed out that the logotype should be visible on everything
that comes out of the company. Further (RM) mentioned that Plannja AB has a policy
that the logotype/name always should have the same layout.
5.1.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described?
The Use of the Website
(MN) stated that the use of the Website was to obtain information for the customers and
to show and demonstrate the products. On the other hand (RM) thought that the use of
the Website was about the same as with the other communication tools, which means
that it should be used with the same purpose, to generate sales. Both respondents agreed
that the Website was a way of getting away from the old routines, such as product
folders that are sent out to the retailers. (MN) stated that the Website could support
existing customers, reach new customers, and to provide online catalogues and
customer service. On the other hand (RM) considered that the Website could be used to
inform the customers about products and to provide links to the retailers. He further said
that the Website provided technical assistance for the customers’ i.e. how to lay a roof,
but that the customers could not purchase products on-line.
The Function of the Website
(RM) considered the Website as a complement to the other communication tools. Non
of the respondents thought that the Website would replace any of the existing
communication tools.
Reasons for Being on the Web
(MN) stated that the reason for Plannja AB to be on the Web was in order to reach as
many customers as possible. Further more (RM) announced that if a company wants to
be the market leader they have to have presence on the Web. Both respondents stated
that an advantage with the Web was that it is an easy and quick way of reaching many
customers. Further (RM) thought that the Web is a cost-effective communication tool
that enables the company to easily make changes on the Website, for example when
new products are to be introduced. Neither of the respondents believed that the reason
for being on the Web was of fear of not having a presence on it.
Media Used to Promote the Website
According to (RM) Plannja AB promotes their Website with all their printed
advertisements, printed matters, with the sales personnel’s vehicles and in the
catalogues.
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Chapter 5 Data Presentation
Regarding the question if the respondents had anything to add both (MN) and (RM)
added that the Internet will have a big impact on how business are going to be made in
the future. (RM) thought that the online catalogues would replace the regular
catalogues. Both respondent brought up that Electronic Data Interchange, EDI, (a
computerised network between companies), are about to be introduced at the company
in the near future. (RM) added that even Artificial Intelligence, AI, (an automated sales
agent that answers questions from interested consumers, makes product or service
suggestions based on customer information and manages the overwhelming volume of
electronic messages), was an interesting issue that might be introduced at Plannja AB’s
Website in the future.
5.1.3 Research Question Three, How Does a Business-to-Business Firm Integrate
the Marketing Communication Tools?
Integration of the Communication tools
(MN) stated that all communication tools used to create a message are integrated.
Further (RM) said that if not all communication tools were integrated the
communication would be ineffective. Both respondents meant that the different media
that is used to create a message must be consistent and should permeate the way the
advertising looks like. (RM) brought up that by integrating the communication tools
Plannja AB sends out a consistent message to the customers. This leads to a greater
impact of the message, and makes it more credible. As (MN) put it: “You have to play
on all strings on the guitar”. None of the respondents found any great disadvantages
combined with integration of the communication tools. Though an important issue that
was brought up by (MN) was that it is hard to determine how to divide the amount of
money spent on the different communication tools in the communication mix.
Rules/Models Used when Integrating the Communication Tools
The company does not use any specific rules when integrating the communication tools
according to (RM). But he mentioned that they use some steps that have been effective
in their line of business. These steps are (1) get support within the company, (2) get
support from the retailers, (3) communicate message and create attention, and (4)
feedback/learn from experience. (MN) further stated that Plannja AB always uses the
logotype and brand name in the same layout in every communication tool to make it
more unified and to create a larger impact. The company’s communication tools are
integrated with the help of advertising agencies. Plannja AB uses three different
advertising agencies depending on which segment they direct towards and which kind
of service they require according to (MN).
The Communication Tools that are Commonly Used when Planning a Campaign
(MN) listed advertising, personal selling, sales promotion and the Website as the most
commonly used communication tools in marketing campaigns. Further (RM) added
public relations and sponsoring as important issues when creating marketing campaigns.
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Chapter 5 Data Presentation
5.2 Liko AB
Liko AB operates in the manufacturing business. They develop, manufacture, and
market patient lifts. Liko AB’s lifts are backed up by the market's widest assortment of
accessories. The head office is in Luleå, in the north of Sweden. Liko AB was founded
in 1977. The company operates not only in Sweden where it has got about 45-50
employees, but also in Europe, Japan and in North America. Barbro Liljedahl, (BL) who
is the marketing manager at Liko AB and Magnus Ahlqvist, (MA) who is responsible
for information issues at the company were interviewed. It should be noticed that the
first research question was not answered by Magnus Ahlqvist, who responded to the
second and third research questions. The reason for this is that the area handled in
research question one is not within his area of responsibility.
5.2.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described?
Personal Selling
According to (BL) personal selling is used to a large extent. Both face to face and
telephone sales calls are used depending on what kind of business that is conducted. The
main goal with personal selling is not just to sell the product; it is to create a satisfying
solution for the customer. Further (BL) stated that the personal contact with the
customers was a huge advantage together with the opportunity to create long term
relationships with the customers. (BL) also pointed out that conferences are used as well
as seminars in order to educate the customers. The education of the customers at the
seminars was sometimes performed together with other non-competitive companies.
When it comes to videoconferences Liko AB does not use them because they find no
need in doing that. A disadvantage that was brought up by (BL) was that personal
selling has a limited ability to reach the customers since it is a very expensive
communication tool.
Advertising
Regarding advertising (BL) stated that Liko AB advertises in branch magazines with the
purpose to profile the company or to introduce a new product. Further (BL) said that
advertising in newspapers was not used since it was not appropriate in their line of
business, because they do not perform their advertising directly to the end customer.
According to (BL) direct mail was used in the form of product folders (catalogues) that
were sent out to the customers. (BL) believed that the product folders were a way of
conducting “invisible advertising” since the customers do not consider the folders as
advertising. Further (BL) brought up that Liko AB sends out customer brochures called
Likobladet to their customers. Information videos were not used at the time, because
they had to be upgraded, but had been used in the past. (BL) also said that technical
reports were not used since it did not fit their products. When it comes to advantages
with advertising (BL) brought up that it is a cost-effective communication tool for Liko
AB.
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Chapter 5 Data Presentation
Sales Promotion
As for sales promotion, (BL) said that gifts, competitions, price reductions, and sale
force promotions was used. Gifts were not used in a big extent only as give-aways in the
form of pens, mugs, and measuring tapes. Premiums had been used in the past but are
not used any more. Competitions were only used at exhibitions. Free samples are
neither used since it is too expensive to give away lifts to the customers but they do lend
out lifts if a customer wants to try one. Price reductions were used in the form of
quantity rebates and when the customers trade their old lift for a newer one. Liko AB
uses sales competitions as sales force promotions for the sellers. According to (BL)
sales promotions have got the advantage that it can increase the sales and tie the
customers more tightly to the company. Further (BL) brought up jealousy, as a
disadvantage of sales promotion since one customer can be jealous of another if for
example price reductions not were offered to all customers.
Public Relations
Regarding media relations and public relations (BL) stated that Liko AB could improve
the way they are handling it since they are not performing that well in that area. At the
time press releases are used when a new product is to be introduced or when they want
to announce special news. Relations to employees and members are mainly used in the
form of information at personal meetings and through e-mail according to (BL). To
motivate the employees Liko AB sometimes uses gifts i.e. coats, for special occasions
such at anniversaries. Concerning community relations (BL) stated that they had
lectures on product and corporate development at the Luleå University of Technology
and days when the public can visit the company. Liko AB is a family owned company
so the relations to investors are handled internal, but regarding financial relations (BL)
said that Liko AB has a good relation to the bank that they use. Relations within the
industry are accomplished through seminars in order to educate the customers about
complementary products. At some seminars they co-operate with other companies that
sell complementary products to Liko AB’s products. When it comes to special events
(BL) stated that they only are used during exhibitions i.e. dinner with VIP customers.
When talking about advantages with public relation (BL) mentioned that if performed
well, public relations will ease different relations especially if you have got a good
reputation, since as (BL) put it “Everyone wants to be with a winner”. A disadvantage
with public relations is that the customers can get the wrong experience from the
company if it is not handled properly. Therefore (BL) pointed out that it is important to
think about how the message are expressed.
Sponsoring
Sponsoring is not used at the time. According to (BL) Liko AB does not sponsor any
activity for the moment but has in the past sponsored some local sport teams and within
the field of handicapped since they are in that line of business. (BL) explained the
reason for not using sponsoring is that Liko AB feels that they do not get enough out of
it.
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Chapter 5 Data Presentation
Exhibitions
According to (BL) participates Liko AB in exhibitions in order to make the company
visible, establish connections, and to maintain existing connections. (BL) explained that
they take part in a big exhibition every year and a few smaller locally situated ones.
Liko AB does not train the personnel that participate in the exhibitions since the ones
that participate in the exhibitions are the company’s sales force and are therefore
familiar with the products. During the exhibitions the personnel are wearing the same
kind of clothes, in that way can they intermediate a consistent message to the customers.
According to (BL) the company follows up the exhibitions by contacting the customers
that were interested in the company’s products. Another thing that (BL) brought up was
that they always try to show a new product at every new big exhibition.
Packaging
According to (BL) packaging is not a big issue to Liko AB since most of the lifts are
delivered unpacked. But they constantly improve the packaging in co-operation with
packaging companies in order to achieve the most durable ones. Further (BL) said that
they have to use durable packages since some of the lifts are exported and are therefore
exposed to hard handling during the transportation. (BL) also mentioned that they have
got an environmental award for their packages since they are not using polluting
packages.
Word of Mouth
(BL)’s opinion regarding word of mouth was that Liko AB has got a good reputation
among their customers, which is vital for the company. They do not have a specific way
of handling word of mouth since they trust their good reputation. But on the other hand
they have evaluation groups that investigate how the customers perceive the company.
(BL) further stated that it is very important with word of mouth for the company since
the are selling to frequent customers not to non-recurrent customers.
Corporate Identity
(BL) said that the logotype is shown on the company’s building, the vehicles, on the
sellers green shirts, on the employees anniversary coats, business forms, and literature.
Moreover (BL) mentioned that Liko AB has got a specific design programme that
intermediates how the logotype is going to be used. They try to send out a well thought
message in order to strengthen their brand.
5.2.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described?
The Use of the Website
The Website could according to (BL) be used to strengthen the company’s products and
brand both nationally and internationally. On the other hand (MA) brought up following
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Chapter 5 Data Presentation
issues regarding the use of the Website: to communicate with the customer, strengthen
the brand, to direct and to inform the customers (so that the employees can explain for a
customer over the phone where to find specific information about products et cetera), to
create company and product awareness, and to inform the market and to intermediate to
the customers what Liko AB stands for. (BL) believed that the Website should agree
with the products and the other activities within the company i.e. to intermediate a
consistence in the messages sent out. She also mentioned that they have related links on
the Website and that you can look and get information on all the products on-line. (MA)
stated that Liko AB has technical assistance on the Website but that you cannot order
products on-line. Though this was the case now (MA) pointed out that the Website was
under continuous development. Furthermore (MA) brought up following advantages
with the Website: low costs, can reach many people, is a visual communication, and that
the customers can interact with the computer. (MA) did not find any disadvantages with
the Website, but (BL) brought up that a major disadvantage with the Website was that
the customers with no access to the Web not could be reached.
The Function of the Website
(BL) considered that the Website was a complement to other communication tools and
that it cannot replace any of the existing communication tools in the communication
mix. (MA) stated that the Website could be supplementary in a certain degree but that it
could not replace all of the communication tools. In the future (MA) believes that the
Web will have an increased significance in the way businesses will be handled and that
more businesses will be made over the Web
Reasons for Being on the Web
(BL) stated that Liko AB has got a presence on the Web simply because there is a
pressure that companies should have a presence there. (MA) brought up following
issues regarding reasons for being on the Web: easy to use and to frequently update, to
communicate with the customer, strengthen the brand, to direct and to inform the
customers, and to intermediate to the customers what Liko AB stands for.
Media Used to Promote the Website
Both respondents stated that the media used to promote the Website were all printed
media that is sent out to the customers such as business forms, literature, business cards,
and newsletters. They also promote the Website through advertisement in business
magazines.
5.2.3 Research Question Three, How Does a Business-to-Business Firm Integrate
the Marketing Communication Tools?
Integration of the Communication tools
Liko AB integrates the communication tools that are used. Though (BL) said that they
could perform better within that area. (MA) stated that they profile themselves in the
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Chapter 5 Data Presentation
same way in all the communication tools that they use. Further (MA) declared that the
Website was a good example of how they integrate the communication tools since they
use the same colours, design and layout on all communication tools. (BL)’s opinion
regarding advantages with integration of the communication tools was that a greater
effect of the message can be achieved by integrating the communication tools. (MA)
believed that by integrating the communication tools there could be consistence in the
way the message is sent out, so the message could be recognised in more media. As a
disadvantage (MA) brought up that the integration of the communication tools could
strangle the creativity since there has to be a consistence in the way the company
profiles itself. Another disadvantage that (MA) brought up was that it can be hard to
create something that looks good if you have to use the same profile on every media.
Rules/Models Used when Integrating the Communication Tools
(BL) meant that Liko AB does not use any specific models or rules when integrating the
communication tools. On the other hand (MA) brought up that Liko AB uses a 15-stage
process when introducing a new product. The process deals with everything from
registration and photography of the product to introducing the new product to the
market. (MA) also said that they use specific routines for every product.
The Communication Tools that are Commonly Used when Planning a Campaign
(BL) said that the communication tools that were used the most when planning a
campaign were exhibitions, personal selling, and advertising in the form of direct mail.
(MA) stated that personal selling, advertising (direct mail and in branch magazines), and
exhibitions were the most commonly used.
5.3 Svalson AB
Svalson AB manufactures electric sliding windows for receptionists, cashiers et cetera.
The company is situated in Öjebyn, in Piteå that lies in the north of Sweden. The
company has got about 24 employees. This year’s sales are budgeted to reach 17
million. Svalson AB exports their products to most European countries and also to some
countries elsewhere in the world. At the company Bill Svensson (BS), who is the CEO
and Göran Karlsson (GK), who is the marketing manager of Svalson AB were
interviewed.
5.3.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described?
Personal Selling
According to both respondents personal selling is used in a minor extent in the form of
face-to-face sales calls/meetings, telephone sales calls and conferences/seminars. The
reason for this is the company’s geographical situation (90 % of their customers are
situated in the south part of Sweden) which does not make it profitable with personal
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Chapter 5 Data Presentation
selling. Another reason is that most of the sales people work as incoming orders clerk
due to the company’s fast development. Even though Svalson AB does not use personal
selling in a large extent, (GK) pointed out that the company tries to have a certain
degree of care of the customers. He believed that for large projects when they tailormake a total solution for the customer personal selling is vital. (BS) stated that they do
not use videoconferencing since they do not find that relevant to their business. An
advantage with personal selling is according to (GK) that it helps the company to find
out what the customers think about the company and which weaknesses they could
improve within the company. (GK) also brought up that by using personal selling the
salesperson can make the customer aware about what he/she wants, which is especially
important when dealing with tailor-made products. When it comes to disadvantages
with personal selling both respondents agreed that personal selling is an expensive
communication tool.
Advertising
Svalson AB does not advertise in newspapers according to both respondents since
newspapers is not directed to their customers and has to wide covering. Instead they
advertise in branch magazines stated (GK). He further explained that Svalson AB uses
about 30 advertisements a year directed to 3 large groups (security people, constructing
people, and architects). Regarding video information cassettes both respondents stated
that they had been using it a few years ago on exhibitions to show product advantages
but did not have any recent video information cassette at the moment. According to both
(GK) and (BS) Svalson AB uses direct mail and miscellaneous. The direct mail is in the
form of folders and catalogues and the miscellaneous is in the form of dispatches. (GK)
said that 20 percent of the direct mail sends to the end customer and the remaining 80
percent are distributed via the retailers. When it comes to technical reports (GK) said
that it was used in a minor extent but was about to used more when their electric sliding
windows were classified fireproof. (GK) also brought up incentive travels as another
form of advertising that Svalson AB is using. (BS) mentioned that it is hard to
determine whether it is profitable or not with advertising and that it is a manner of cost
in which extent they should use advertising as a communication tool. (GK) on the other
hand stated that advertising was a decent cheap communication tool, which can reach
many customers and help the company to create their profile. A disadvantage that (GK)
mentioned was that advertising is a broad way of reaching many customers but it is not
deep enough, the message does not exist for a long time. Finally (BS) said that if not
using advertising, no one would know that the company exists.
Sales Promotion
Regarding sales promotion both respondents stated that it is used in a minor extent. The
company does not use premiums or sales force promotions since premiums are not
relevant in their line of business and fixed salary is used instead of sales force
promotions according to (BS). Regarding sales force promotion Svalson AB does not
have a motivation or stimulating programme for the sales force but they are eventually
going to introduce one for specific campaigns said (GK). Further (GK) mentioned that
Svalson AB uses gifts in the form of Christmas gifts, playing cards, clasps knifes, and
golf balls. Competitions are used at the homepage for the public and as amusement for
the customers. (GK) declared that they do not have a structured system for how to offer
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Chapter 5 Data Presentation
price reductions but they offer their customers’ quantity rebates if they buy many
sliding doors at a time. They also have a standing bonus system for some of their
customers according to (BS). When it comes to advantages with sales promotion (GK)
said that it causes the customers to make an effort. Regarding disadvantages (GK)
brought up the costs for the material that is given away. As (GK) put it “sales promotion
is both a carrot and a whip”.
Public Relations
Both respondents stated that public relation was not a specific big issue for the company
but that it still was important. Regarding media relations/publicity (BS) believed that
most of the significant people knew about them and therefore the company did not need
that much media relation. (GK) on the other hand mentioned that Svalson AB just had
started with press releases, which they used to create awareness for a new product or
project. Relations to employees are manly handled through personnel meetings on a
monthly basis according to both respondents. On the meetings the personnel are
informed about the company’s goals and how the company is doing. (BS) also brought
up that Svalson AB uses profit sharing for their employees to motivate them.
Concerning community relations (GK) stated that Svalson AB are members of
Norrbottens chamber of commerce and the Swedish Trade Council. They are also a
member of Piteå Trade Council where 10 companies meet and discuss difficulties with
export in order to help each other. (BS) further explained that they strive to be a wellmanaged company and that Svalson AB has a policy to never get a reminder of payment
in order to have a good reputation in the community. Finical relations are handled
internally according to both respondents since Svalson AB is a family owned company.
Relations within the industry are accomplished through co-operation with different local
companies (GK) explained. Regarding special events (BS) mentioned that the company
sometimes has dinner meetings with the retailers to inform what is happening in the
company. Furthermore (GK) said that an advantage with public relations is that it makes
the message more believable and cheaper if it is successful.
Sponsoring
Svalson AB has chosen not to use sponsoring in the communication mix according to
both respondents. The reason for this is that they consider sponsoring to be thrown away
money since most of their customers are not locally situated.
Exhibitions
Both respondents stated that the company participates in exhibitions. One reason for
using exhibitions was to establish connections with key persons in the business
explained (GK). According to (BS) Svalson AB participates in the exhibitions that they
think are the most profitable. (GK) further said that (1) they get information about the
exhibitions from the organisers, then (2) they choose which exhibitions to participate in
depending on the exhibitions geographic position and the size of the exhibition. (GK)
also brought up that they do not train their exhibition staff, but the personnel that
participate in the exhibitions have a specific product education and should have a good
knowledge about the products technical information. Finally the staff should also be
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Chapter 5 Data Presentation
able to speak the language required on the exhibition depending on which country the
exhibition is held in. Both respondents stated that they follow up the exhibitions. The
course of action for the follow up is according to (BS) a dividing of the interested
applicants into 3 different groups, according to interest. After that the company treats
the most interesting first. Furthermore (GK) brought up 6 steps that are used as a model
when working with exhibitions. These steps are (1) to have nicely exhibition material
(2) select exhibition (3) communicate to people about the exhibition (4) build exhibition
case (5) carrying through (6) follow up.
Packaging
Regarding packaging both respondents stated that they use tailor-made packages for
their products. (GK) stated that they do not improve the packages by replacing
unnecessary details since glass is a difficult product to transport and they have to use the
material that works the best. Furthermore (BS) stated that they do not place their
logotype or brand name at the package but they sometimes use tape with the brand
name on.
Word of Mouth
Both respondents stressed the importance of having satisfied customers. It is their policy
to make the customers satisfied with the product they have bought and after that they
count on their good reputation to “spread as rings on the water” as (BS) put it.
Therefore they always help the dissatisfied customers by making them satisfied, (GK)
said, and then hope that the these customers will spread the information and say that
Svalson AB is a company that you can trust. (GK) further stated that they always follow
up their orders seven days after the delivery in order to handle dissatisfied customers
and to solve problems.
Corporate Identity
(BS) pointed out that the logotype and brand name is exposed on the company’s
building and on all printed material. (GK) continued to say that the logotype is shown
on the company’s trucks, on the mechanics uniforms and on all other material such as
letterheads, invoices et cetera.
5.3.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described?
The Use of the Website
The Website was manly used according to (BS) as a way for the company to be found
by the customers and inform the market, for the architects to be able to print out
drawings, and for the customers to get access to the brochures. (GK) stated that the
Website was manly used to help architects to prescribe Svalson AB’s products, to
decrease the costs for the brochures, and to introduce new products. (GK) continued to
say that the Website also could be used to provide links to the retailers and bulletins
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Chapter 5 Data Presentation
boards for the customers. (BS) further stated that the Website could be used to provide
virtual colour catalogues, and online customer support and to introduce new products
easier. Regarding ordering products on-line (GK) explained that the customers could
not do that at the moment but that it might be possible in the future. As advantages (BS)
mentioned that the Web is a quick media that is cheap to use. (GK) stated that the Web
provides several advantages such as (1) it decreases the costs for brochures, (2) it
provides better information for the customer, (3) that it is fresher, (4) easier for the
customers to print out drawings, and (5) that it is easy to provide price information.
Regarding disadvantages (GK) brought up that the Web is a huge medium that makes it
easy for the customer to draw in all the information exposed there. Further (GK)
believes that the Web will have an increased use in the coming two years.
The Function of the Website
(BS) considered the Website as a complement to the other communication tools. (GK)
on the other hand thinks that the Website is going to replace some of the existing
communication tools, but that they still need some of the existing communication tools
in order to promote the Website.
Reasons for Being on the Web
(GK) stated that the reason for the company having a Website is because it feels natural
to be on the Web since they always have been far ahead in the computer world. (GK)
pointed out that they have now had their Website for four years. On the other hand (BS)
considered that the reason for being on the Web was that it is a quick media. None of
the respondents considered that the reason for being on the Web was of fear of
consequences of not having a presence.
Media Used to Promote the Website
Both respondents stated that they try to provide the Website address on all material that
is exposed to the public. This could include direct mail (to bombard the customers with
direct mail in order to make them use the Website instead of regular communication
tools), catalogues, advertisements, and exhibitions (show how the Website works and
the ease of it). Furthermore (GK) mentioned that they are going to do a separate
marketing campaign for their Website in the future.
5.3.3 Research Question Three, How Does a Business-to-Business Firm Integrate
the Marketing Communication Tools?
Integration of the Communication Tools
(BS) stated that they do not integrate the communication tools and therefore do not have
a pronounced integration policy. They just use the ones they feel is appropriate at the
time. On the other hand (GK) took the advertisement of an exhibition as an example of
integration the communication tools. He said that first they announce on the Website
that they are going to participate in a special exhibition. Then they advertises in
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Chapter 5 Data Presentation
magazines in order to make the customers aware that they are going to participate in a
special exhibition and finally they send out direct mail to the retailers that run their
businesses in the local area of where the exhibition is going to take place. Further (GK)
stated that they try to send out the same message in all the communication tools that
they are using. (GK) also meant that the integration was necessary in order to get people
to the exhibitions. One disadvantage with integrating the communication tools was
according to (GK) that the company was restricted to a few campaigns during a year.
Rules/Models Used when Integrating the Communication Tools
Both respondents stated that Svalson AB does not use any rules or models for
integrating the communication tools. It is instead the customers who direct what kind of
communication tools they are using according to (BS).
The Communication Tools that are Commonly Used when Planning a Campaign
(BS) stated that the communication tools that were used the most were advertising
(direct mail), exhibitions, and word of mouth. (GK) pointed out exhibitions, advertising
(in the form of direct mail), and the Website as the most commonly used
communication tools when planning a campaign.
Regarding the question if the respondents had anything to add (GK) stated that
marketing communication was not just the use of theories but rather a matter of
common sense.
57
Chapter 6 Analysis
6 ANALYSIS
T
his chapter contains the analysis of the collected data in order to be able to
draw conclusions in the next chapter. As presented in chapter four, Miles and
Huberman (1994) state that analysis of qualitative data can be organised into
three stages. The first stage is to reduce the collected data by conducting a within-case
analysis, then the second stage is to display the data, which is done in a cross-case
analysis, and finally the third stage is to draw conclusions. These steps allow us to
discover patterns and commenting on these patterns, to draw conclusions. The
conclusions are presented in the following chapter.
First we will conduct a within-case analysis where we will go within the case and
compare the collected data with existing theory in order to see if it fits (or does not fit)
with existing theory. This allows us to organise and to reduce the data. Then a crosscase analysis will be conducted where we will display the data, which means to further
reduce the data and to display it in an organised and compressed way so that
conclusions easily can be drawn. Then we will compare the displayed data from the
three cases with each other in order to be able to seek similarities and patterns between
the cases. The chapter is divided into three sections, one for each research question.
Within every section both a within-case and a cross-case analysis will be conducted
regarding the research question.
6.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described?
In this section we will analyse the data from each of the three cases with regard to how
the traditional communication tools are used. In our frame of reference, regarding the
first research question, we provided an eclectic list that is compiled from Smith (1998),
Boddewyn and Leardi (1989), Foster (1998), Smith et al. (1998), Baker (1994), Wilcox
et al. (1997) previous studies, which will be used in the within-case analysis.
6.1.1 Within-Case Analysis
Personal Selling
Foster (1998) lists that personal selling could include face-to-face sales calls/meetings,
telephone sales calls, videoconferencing, and conferences/seminars.
Personal selling is a very effective communication tool in Plannja AB’s line of business
and is used in a large extent. The tools used within personal selling are face-to-face
sales calls/meetings, telephone sales calls and conferences/seminars since it is a major
advantage to be able to create personal relations to the customers. The company does
not use videoconferences since it is not appropriate in their ways of communicating
with the market. In describing the use of personal selling as a communication tool we
found that Plannja AB uses three out of four personal selling items that is listed by
Foster (1998).
Liko AB uses personal selling in a large extent. Both face to face and telephone sales
calls are used depending on what kind of business that is conducted. Conferences and
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Chapter 6 Analysis
seminars are used in order to educate the customers. They do not use videoconferences
because they find no need in doing that. Out of the four items listed by Foster (1998)
Liko AB are using three.
Svalson AB uses personal selling in a minor extent in the form of face-to-face sales
calls/meetings, telephone sales calls and conferences/seminars. The reason for this is the
company’s geographical situation. They do not use videoconferencing since they do not
find that relevant to their business. The company are using three out of four items listed
by Foster (1998).
Advertising
According to Morris (1992) advertising could include newspapers, direct mail,
catalogues, technical reports, videos, and branch magazines (trade journals, business
magazines).
Plannja AB advertises in both newspapers and in branch magazines (trade journals and
business magazines), both alone and together with the retailers that sell their products.
The advertising is performed nation-wide and when advertising globally Plannja AB
uses specific branch magazines. There are video-information cassettes, which are used
to demonstrate how to lay a roof and can be obtained from the retailers. Direct mail is a
big part of Plannja AB’s advertising mix. Catalogues are used to present the products
and are sent out to the customers. Technical reports or articles are presented in branch
magazines at special occasions. Plannja AB uses all advertising items listed by Morris
(1992).
Liko AB advertises in branch magazines (trade journals and business magazines) with
the purpose to profile the company or to introduce new products. Advertising in
newspapers was not used since it was not appropriate in their line of business, because
they do not perform the advertising directly to the end customer. Direct mail was used
in the form of product folders (catalogues) that were sent out to the customers.
Information videos were not used at the time, but had been used in the past, the reason
for this is that they had to be upgraded. Technical reports were not used since it did not
fit their products. The way Liko AB uses advertising as a communication tool agrees
with three of the six items listed by Morris (1992).
Svalson AB does not advertise in newspapers since it is not directed to their customers
and has to wide covering. Instead they advertise in branch magazines. Regarding video
information cassettes they stated that they had been using it a few years ago on
exhibitions to show product advantages but did not have any recent video information
cassette at the moment. Direct mail is in the form of folders and catalogues and
miscellaneous is in the form of dispatches. Incentive travels are another form of
advertising that Svalson AB is using. When it comes to technical reports it is used in a
minor extent. In the terms of advertising Svalson AB is using four of the six items listed
by Morris (1992).
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Chapter 6 Analysis
Sales Promotion
Boddewyn and Leardi (1989) and Smith (1998) states that sales promotion could
include premiums, price reductions, gifts/free sampling, competitions, and sales force
promotion.
Sales promotion is a small part of Plannja AB’s communication mix. Premiums are
used in campaigns for example if you by a product from Plannja AB you get a drill for
free. Price reductions such as quantity rebates are offered to big customers. Gifts
occurred in a little extension in the form of pens, and calculators. Free sampling is used
in the form of for example colour samples, which is sent to the customers. As sales
force promotion, competitions for the sellers are provided in order to motivate the
sellers. Plannja AB also offers competitions for the retailers’. Previous research found
that sales promotion consists of premiums, price reductions, gifts/free sampling,
competitions and sales force promotions. This seems to be the case with this firm as
well as it uses all sales promotion items listed by the authors Boddewyn and Leardy
(1989) and Smith (1998).
Liko AB uses sales promotion in the form of gifts, competitions, price reductions, and
sale force promotions. Gifts were not used in a large extent only as give-aways in the
form of pens, mugs, and measuring tapes. Free samples, which is not used in a large
extent since it is too costly to give away lifts to the customers. Premiums had been used
in the past but is not used at the time. Price reductions are used in the form of quantity
rebates and when the customers trade their old lift for a newer one. Competitions were
only used at exhibitions. Liko AB uses sales competitions as sales force promotions for
the sellers. In terms of sales promotion Liko AB uses four out of the five, by Boddewyn
and Leardy (1989) and Smith (1998), listed items.
Regarding sales promotion Svalson AB uses it in a minor extent. The company does not
use premiums or sales force promotions since premiums are not relevant in their line of
business and fixed salary is used instead of sales force promotions. Gifts is used in the
form of Christmas gifts, playing cards, clasps knifes, and golf balls. Competitions are
used at the homepage for the public and as amusement for the customers. Price
reductions are used in the form of quantity rebates if the customers buy many sliding
doors at a time. Svalson AB used three of the five items listed by Boddewyn and Leardi
(1989) and Smith (1998).
Public Relations
Wilcox et al. (1997) lists a few basic components of public relations. These are media
relations/publicity, employee/member relations, community relations, financial/investor
relations, industry relations, and special events.
As for the use of press releases Plannja AB uses these in order to gain publicity when
introducing new products. The sponsoring of Plannja basket is one of the company’s
relations to the community. Employee relations are also an important issue to both
respondents and are handled by kick-offs, Intranet and other information. Plannja AB
has got relations to other companies in the industry for example trade associations. As
special events the respondents brought up special conferences and dinners. In terms of
the use of public relations, five of the six investigated items that was listed by Wilcox et
60
Chapter 6 Analysis
al. (1997) within public relations was used by Plannja AB. The financial relations were
handled by the parent company SSAB.
Regarding Liko AB’s use of media relations/publicity, press releases are used when new
products are to be introduced or when they want to announce special news. Relations to
employees are mainly used in the form of information at personal meetings and through
e-mail. Concerning community relations Liko AB has got lectures on product and
corporate development at the Luleå University of Technology and days when the public
can visit the company. Liko AB is a family owned company so the relations to investors
are handled internal, but regarding financial relations Liko AB has a good relation to the
bank that they use. Relations within the industry are accomplished through seminars in
which they sometimes co-operate with companies that sell complementary products to
Liko AB’s lifts. Special events are only used during exhibitions (i.e. dinner with VIP
customers). Liko AB’s use five of the six components of public relations listed by
Wilcox et al. (1997). Investor relations are handled internally because the company is a
family company.
Public relation is not a big issue for Svalson AB. Regarding media relations/publicity
most of the significant people knew about them and therefore the company did not need
that much media relations. Svalson AB just had started with press releases, which they
used to create awareness for a new product or project. Relations to employees are manly
handled through personnel meetings on a monthly basis. They also use profit sharing for
their employees to motivate them. Concerning community relations Svalson AB are
members of the Norrbottens chamber of commerce and the Swedish Trade Council.
They are also a member of Piteå Trade Council were 10 companies meet and discuss
difficulties with export in order to help each other. Finical relations are handled
internally according to both respondents since Svalson AB is a family owned company.
Relations within the industry are accomplished through co-operation with different local
companies. Regarding special events the company sometimes has dinner meetings with
the retailers to inform what is happening in the company. All items within public
relations that is stated by Wilcox et al. (1997) are used by Svalson AB.
Sponsoring
Baker (1994) and Smith (1998) lists sports teams, cultural programmes, arts, education,
community, and broadcast as sponsorship items.
Sponsoring is a very big part of Plannja AB’s communication mix. Besides the
sponsoring of Plannja basket they do not sponsor any other kind of events such as
cultural programmes, arts, education, community, or broadcast. The reason for this is
because the sponsoring of Plannja basket is so successful. And that the company has
chosen the policy to only sponsor one object and concentrate on that. Even if sponsoring
is a big part of Plannja AB’s communication mix, they do not use all items listed by
Baker (1994) and Smith (1998).
Liko Ab does not use sponsoring at the moment, but they have sponsored some local
sport teams in the past within the field of handicapped since they are in that line of
business. With regard to sponsoring Liko AB does not use the items listed by Baker
(1994) and Smith (1998).
61
Chapter 6 Analysis
Svalson AB does not use sponsoring. The reason for this is that they consider
sponsoring to be thrown away money since most of their customers are not locally
situated. In terms of sponsoring Svalson AB does not use the items listed by Baker
(1994) and Smith (1998).
Exhibitions
Smith (1998) states that exhibitions are a powerful marketing communication tool that
require detailed planning and co-ordination of resources for instance to select the right
shows, train exhibition staff, and to ensure follow-up.
Plannja AB participates in several exhibitions, which they choose depending on the
importance of the exhibition. They do not train the personnel that participate in the
exhibitions since the same personnel are used at the exhibitions, which are familiar with
how to handle them. Follow up is handled on a regular basis. The firm plans and
ensures follow up in the line as Smith (1998) stated, but they do not train the exhibition
staff that the author recommended.
Liko AB participates in exhibitions in order to make the company visible, establish
connections, and to maintain existing connections. They take part in a big exhibition
every year and a few smaller locally situated exhibitions, since those are the ones of
most interest. Liko AB does not train the personnel that participate in the exhibitions
since the ones that participates in the exhibitions are the company’s sales force and are
therefore familiar with the products. They follow up the exhibitions by contacting the
customers that were interested in the company’s products. In terms of the use of
exhibitions Liko AB does not train the personnel that participates in the exhibitions. But
they plan and ensure follow up in the line with what Smith (1998) stated.
Svalson AB participates in exhibitions. One reason for using exhibitions was to
establish connections with key persons in the business. They choose which exhibitions
to participate in depending on the exhibitions geographic position and the size of the
exhibition. Svalson AB participates in the exhibitions that they think is the most
profitable ones. They do not train their exhibition staff, but the personnel that participate
in the exhibitions have a specific product education and should have a good knowledge
about the products technical information and should also be able to speak the language
required on the exhibition depending on which country the exhibition is held in. They
also follow up the exhibitions. Svalson AB does not train the personnel that participate
in the exhibitions. But they plan and ensure follow up in the line with what Smith
(1998) stated.
Packaging
Smith (1998) claim that packaging could include specific design (to easier the
distribution and a more efficient use of shelf space in warehouses) and improvement of
the packages.
Plannja AB has got a special design of the packaging that should be recognised by
customers and that should be easy to store in warehouses. They do not improve the
packaging since they do not think that there is a need of that. The logo is placed on the
62
Chapter 6 Analysis
packages and the products (punched on the tin roofs) for recognition. This is in the line
with Smith (1998) stated about packaging except from that Plannja AB does not
improve the packages.
Packaging is not a big issue to Liko AB since most of the lifts are delivered unpacked.
But they constantly improve the packaging in co-operation with packaging companies
in order to achieve the most durable ones. They have to use durable packages since
some of the lifts are exported and are therefore exposed to hard handling during the
transportation. Liko AB’s use of packaging as a communication tool agrees fully with
Smith’s (1998) statement about packaging.
Svalson AB uses tailor-made packages for their products, which not are improved since
glass is a difficult product to transport and they have to use the material that works the
best. The logotype is not placed at the package but they sometimes use tape with the
brand name on. The way as Svalson AB uses packaging as a communication tool agrees
with one of the items stated by Smith (1998).
Word of Mouth
Smith (1998) states that of all the elements of the communications mix, word of mouth
(WOM) is by far the most potent on a one-to-one basis. No amount of advertising or
expert selling could compete with a colleague or friend recommending or criticising a
particular product or service.
Word of mouth is an important issue for Plannja AB in order to obtain information for
buyers. They work hard to mediate their brand so that everybody recognise it and talks
about it. Plannja AB expects that the customers talk to each other about their products.
This agrees with what Smith (1998) stated about word of mouth.
Liko AB has got a good reputation among their customers, which is vital for the
company. They do not have a specific way of handling word of mouth since they trust
their good reputation. It is very important with word of mouth for the company since the
are selling to frequent customers not to non-recurrent customers. This fits with what
Smith (1998) stated about word of mouth.
Both respondents at Svalson AB stressed the importance of having satisfied customers.
It is their policy to make the customers satisfied with the product they have bought.
Therefore they always help the dissatisfied customers by making them satisfied. They
always follow up their orders seven days after the delivery in order to handle
dissatisfied customers and to solve problems. This is in the line with what Smith (1998)
stated about word of mouth.
Corporate Identity
According to Smith (1998) corporate identity could include logotype/name on
“permanent media”, buildings, vehicles, uniforms, business forms, and literature.
Plannja AB’s logotype is exposed at the company’s and the retailers’ buildings as big
signs, on the vehicles, the sellers clothes, and at all business forms and literature. A
63
Chapter 6 Analysis
specific policy is developed which says that the logotype/name always should have the
same layout. In terms of the use of corporate identity Plannja AB seems to use it in the
way as Smith (1998) recommend.
The logotype is shown on Liko AB’s building, the vehicles, on the sellers green shirts,
on the employees anniversary coats, business forms, and literature. More (BL)
mentioned that Liko AB has got a specific design programme that intermediates how
the logotype is going to be used. Liko AB’s use of corporate identity agrees with
Smith’s (1998) statement about corporate identity. A thing that also was brought up was
that they use a specific design programme for the logotype, which explains how they
should use the logotype.
Svalson AB’s logotype and brand name is exposed on the company’s building and on
all printed material as well at the company’s trucks, on the mechanics uniforms and on
all other material such as letterheads, invoices et cetera. The way as Svalson AB uses
corporate identity agrees with what Smith (1998) stated.
64
Chapter 6 Analysis
6.1.2 Cross-Case Analysis
Here we will display the data concerning the first research question showed in table 6.1
on the next page.
Table 6.1
Data Display Research Question One, Traditional Communication
Tools
Investigated
item
Plannja AB
Svalson AB
used in a large extent •
used in the form of;
face-to-face sales,
•
calls/meetings,
telephone sales calls,
conferences/seminars
video conferences are
not used
•
used in a very large
•
extent
used in the form of;
•
face-to-face sales
calls/meetings,
telephone sales calls,
conferences/ seminars
video conferences are
not used
•
used in a minor
extent
used in the form of;
face-to-face sales
calls/meetings,
telephone sales calls,
conferences/
seminars
videoconferences are
not used
Advertising •
used in a large extent •
used in the form of;
•
newspapers, branch
magazines, direct
mail, catalogues,
technical reports, and •
videos
used in a large extent •
used in the form of;
•
branch magazines,
direct mail as product
catalogues,
videos, technical
reports, and
•
newspapers are not
used
used in a large extent
used in the form of;,
branch magazines,
direct mail,
catalogues, and
technical reports
videos and
newspapers are not
used
•
used in a minor extent •
•
used in the form of;
premiums, price
reductions, gifts/free
sampling, sales force •
promotion and
competitions for the
retailers
used in a minor extent •
used in the form of;
gifts, competitions,
•
price reductions and
sales force promotion
premiums are not used
•
used in a minor
extent
used in the form of;
price reductions,
gifts/free sampling,
and competitions
premiums and sales
force promotions are
not used
Personal
Selling
•
•
Liko AB
•
•
Sales
Promotion
•
65
Chapter 6 Analysis
used in a large extent •
used in the form of;
•
media relations/
publicity, community
relations, employee
relations, industry
relations, special
events
financial/investor
relations are handled •
by the parent company
used in a minor extent •
used in the form of;
media relations/
•
publicity, employee
relations, community
relations, industry
relations, and financial
relations, and special
events
investor relations are •
handled internally
used in a very large
•
extent
only used in the form
of sport sponsoring
are not used
•
are not used
used in a large extent •
plans and ensures
•
follow up
do not train exhibition •
staff
used in a large extent
plans and ensures
follow up
do not train the
exhibition staff
•
used in a very large
extent
plans and ensures
follow up
do not train the
exhibition staff
•
•
•
used in a minor extent •
use specific design
•
do not improve the
packaging
used in a minor extent •
use specific design
and improves the
•
packaging
•
used in a minor
extent
use specific design
do not improve the
packaging
Word of
Mouth
•
•
used in a minor extent •
considered as an
•
important issue
used in a minor extent •
considered as an
•
important issue
used in a large extent
considered as an
important issue
Corporate
Identity
•
•
used in minor extent
exposed at buildings,
vehicles, sellers
clothes, business
forms, and literature
•
•
used in a minor extent •
exposed at buildings,
vehicles, on the
•
sellers’ shirts, business
forms, and literature
used in a minor
extent
exposed at buildings,
vehicles, mechanics
uniforms, business
forms, and literature
Public
Relations
•
•
•
Sponsoring •
•
Exhibitions •
•
•
Packaging
Source: Olander & Sehlin (2000)
66
•
•
used in a minor
extent
used in the form of;
media relations/
publicity, employee
relations, community
relations, industry
relations, and special
events
financial/investor
relations are handled
internally
Chapter 6 Analysis
Plannja AB and Liko AB use personal selling in a large extent. Svalson AB uses
personal selling in a minor extent. All of the investigated companies were using face-toface sales calls/meetings, telephone sales calls and conferences/seminars. Neither of the
companies used videoconferences.
All three companies in a large extent use advertising in the form branch magazines,
direct mail, and catalogues. Liko AB and Svalson AB reported that they did not use
video information cassettes. Plannja AB and Svalson AB used technical reports.
Svalson AB and Liko AB do not advertise in newspapers. Nor does Liko AB use
technical reports.
The sample companies use sales promotion in a minor extent. The items that were used
by all companies were price reductions, gifts/free sampling and competitions. Liko AB
and Svalson AB did not use premiums. Sales force promotions was not used by Svalson
AB.
Liko AB and Svalson AB use public relations in a minor extent and Plannja AB uses it
in a large extent. All companies use media relations/publicity, employee relations,
community relations, and industry relations. Plannja AB and Svalson AB do not use
financial/investor relations. Liko AB does not have internal relations but has got good
financial relations.
Sponsoring of sport is used in a very large extent by Plannja AB and is not used by Liko
AB and Svalson AB. Regarding exhibitions, all three companies use them in a large
extent. All sample companies plan and ensure follow up but do not train the exhibition
staff.
In terms of the use of packaging as a communication tool all three companies use it in a
minor extent. Plannja AB and Svalson AB do not improve the packages, which Liko
AB does. It was reported that all three companies had a specific design of the packages.
When it comes to word of mouth all three companies agreed that it was an important
issue. Svalson AB uses it in a large extent, while Plannja and Liko AB use it in a minor
extent.
Corporate identity is used in a minor extent. The logotype is exposed on the company
building, the vehicles, the sellers and mechanics clothes, the business forms and on the
literature.
6.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described?
In this section we will analyse the data from each of the three cases with regard to how
the companies are using the Website as a marketing communication tool. In our frame
of reference, regarding the second research question, we provided an eclectic list that is
compiled from Hamill and Gregory, (1997), Berthon et al., (1998), and Ellsworth and
Ellsworth, (1997) previous studies, which will be used in the witin-case analysis.
67
Chapter 6 Analysis
6.2.1 Within-Case Analysis
The Use of the Website
Berthon et al. (1998) and Hamill and Gregory (1997) state that the Website could be
used to inform the market, to provide hot links, full-colour virtual catalogues, on-screen
order forms, online customer support/feedback, demonstrate products, corporate
visibility/brand name, and technical assistance.
Plannja AB uses the Website to obtain information for the customers, to be seen by the
customers and to show and demonstrate the products. It could support existing
customers, reach new customers, and to provide online catalogues and customer service
as well as to inform the customers about products and to provide links to the retailers.
Technical assistance that explains how to lay a roof is provided at the Website. Onscreen order forms are not used since they do not sell their products over the Web. In
terms of the use of the Website it seems like the firm use all the items listed by Berthon
et al. (1998) except from onscreen order forms since they do not sell their products over
the Web.
Liko AB use the Website to communicate with the customer, strengthen the products
and the brand, to direct and to inform the customers, to create company and product
awareness, and to inform the market and to intermediate to the customers what Liko AB
stands for. Related links are provided at the Website so the customers can look and get
information on all the products on-line. Liko AB provides technical assistance on the
Website but the customers can not order products on-line. Most products are shown on
the Website. Liko AB uses all the items listed by Berthon et al. (1998) except from
onscreen order forms since they do not provide the service to buy products over the
Internet.
Svalson AB uses the Website as technical assistance, corporate visibility, provide links
to the retailers and bulletins boards for the customers, to inform the market, to provide
virtual colour catalogues, as online customer support, and to introduce new product
easier. It is not possible to order products on-line, but it might be in the future. Svalson
AB used seven out of the eight items listed by Berthon et al. (1998) regarding the use of
the Website.
The Function of the Website
The Website can function as a complementary or as a supplementary to other
communication tools. Berthon et al. (1998)
Plannja AB considered the Website as a complement to the other communication tools
by the respondents. Neither of the respondents thought that the Website would replace
any of the existing communication tools. This is in the line with what Berthon et al.
(1998) stated about the function of the Website.
At Liko AB one of the respondents considered that the Website was a complement to
other communication tools and that it cannot replace any of the existing communication
tools in the communication mix. The other respondent believed that the Website could
function as a complementary to the communication tools but also as supplementary in a
68
Chapter 6 Analysis
certain degree, but it could not replace all of the communication tools. The respondent
further believes that the Web will have an increased significance in the way businesses
will be handled, and that more businesses will be made over the Web in the future. Bot
respondent agreed that the Website could function as a complementary to other
communication tools. This is in the line with what Berthon et al. (1998) stated about the
function of the Website. In terms of the function of the Website as a supplementary to
the communication tools the respondents’ opinions differ.
Svalson AB considers the Website as a complement to the other communication tools.
One of the respondents believed that the Website is going to replace some of the
existing communication tools, but that they still need some of the existing
communication tools in order to promote the Website. This agrees what Berthon et al.
(1998) stated about the function of the Website.
Reasons for Being on the Web
According to Berhton et al. (1998) the reasons for being on the web could be that it is
quick and easy or of fear of the consequences of not having a presence.
The reason for Plannja AB’s Web appearance is that it is quick and easy and offers the
possibility to reach as many customers as possible. If a company want to be the market
leader they have to have presence on the Web. Neither of the respondents believed that
the reason for being on the Web was of fear of not having a presence on it. This agrees
in a certain degree with what Berthon et al. (1998) stated about the reasons for being on
the Web.
One of the respondents stated that Liko AB has got a presence on the Web simply
because there is a pressure that companies should have a presence there. The other
respondent brought up following issues regarding reasons for being on the Web; easy to
use and to frequently update, to communicate with the customer, strengthen the brand,
to direct and to inform the customers, and to intermediate to the customers what Liko
AB stands for. Here differ the respondents’ opinions. Though it agrees with what
Berthon et al. (1998) stated about reasons for being on the Web.
The reason for Svalson AB’s Web appearance is because it feels natural to be on the
Web. Another reason for Svalson AB’s Web appearance is because it is a quick and
easy media. None of the respondents considered that the reason for being on the Web
was of fear of consequences of not having a presence. In terms of the reasons for being
on the Web Svalson AB’s reasons agrees with what Berhton et al. (1998) stated.
The Media Used to Promote the Website
Media that can be used to promote the Website are magazines, newspapers, newsletters,
and the business card as stated by Ellsworth and Ellsworth (1997).
Plannja AB promotes their Website with all their printed advertisements, printed
matters, with the sales personnel’s vehicles and in the catalogues. This fits with the
recommendations of Ellsworth and Ellsworth (1997).
69
Chapter 6 Analysis
The media used by Liko AB to promote the Website are all printed media that is sent
out to the customers such as business forms, literature, business cards, and newsletters.
They also promote the Website through advertisement in business magazines. The way
Liko AB promotes their Website agrees with the recommendations of Ellworth and
Ellsworth (1997).
Svalson AB’s Website address is placed on all material that is exposed to the public.
This could include direct mail, catalogues, advertisements, and exhibitions. Furthermore
one of the respondents stated that Svalson AB is going to do a separate marketing
campaign for their Website in the future. This is in the line with what Ellsworth and
Ellsworth (1997) stated.
6.2.2 Cross-Case Analysis
Here we will display the data concerning the second research question. In table 6.2
below a comparison between the cases will be conducted.
Table 6.2
Data Display Research Question Two, the Use of the Website as a
Marketing Communication Tool
Investigated
Item
Plannja AB
The Use of the •
Website
•
•
The Function •
of the Website
•
Liko AB
Svalson AB
used to inform the
•
market, provide hot
links, online
catalogues, customer
support, demonstrates
products, exposes the
company name, and
technical assistance
do not offer on-screen •
order forms
can also be used to
•
reach new customers
used to inform the
•
market, provide hot
links, online
catalogues, customer
support, demonstrates
products, exposes the
company name, and
technical assistance
do not offer on-screen
order forms
•
the Website
intermediates what
Liko AB stands for
used to inform the
market, as technical
assistance, corporate
visibility, to provide
links to the retailers,
online customer
support, to provide
online catalogues, to
introduce new
products
do not offer onscreen order forms
complementary to the •
other communication
tools
did not believe that it •
would replace the
existing
communication tools
complementary to
•
other communication
tools
regarding the Website •
as a supplementary to
other communication
tools the respondents
had different opinions
believed that the Web
will have an increased
significance in the
way business are to be
handled in the future
complementary to
other communication
tools
the Website will
replace some of the
existing
communication tools
•
70
Chapter 6 Analysis
Reasons for •
Being on the •
Web
quick and easy
offers the possibility
to reach many
customers
•
•
Media Used to •
Promote the
Website
•
all printed
advertisements and
printed matters
vehicles, catalogues
•
different opinions
•
between the
•
respondents, quick and
easy and of fear of
consequences of not
having a presence
easy to use and to
update, to
communicate with the
customer, strengthen
the brand, direct and
inform the customers,
and to intermediate
what Liko AB stands
for
all printed media that
is sent out to the
customers and in
advertisements
•
•
quick and easy
feels natural
all printed material
that is exposed to the
public
exhibitions,
catalogues
Source: Olander & Sehlin (2000)
All three companies use the Website to inform the market, to provide hotlinks, online
catalogues, customer support, demonstrate the products, expose the company’s name
and for technical assistance. Neither of the companies offers on-screen order forms.
Plannja AB brought up that the Website could be used in order to reach new customers.
Liko AB mentioned that the Website intermediates what Liko AB stands for.
In terms of the function of the Website the investigated companies looked upon the
Website as a complementary to the other communication tools. Plannja AB did not
consider that the Website would replace any of the existing communication tools, which
one of the respondents at Liko AB also believed. The other respondent at Liko AB
considered the Website to be a supplementary to the other communication tools in a
certain degree and that the Web will have an increased significance in the way business
are to be handled in the future. At Svalson AB one of the respondents considered that
the Website would replace some of the existing communication tools in the future.
At Liko AB the opinions differed between the respondents regarding reasons for being
on the Web. One of them believed that they had a presence on the Web simply because
of fear of consequences of not having a presence, and the other believed that the reason
was because the Web is quick and easy. Both Plannja AB and Svalson AB agree with
the second respondents at Liko AB that stated that the reason for being on the Web was
since it is quick and easy. Plannja AB added that one of the reasons for being on the
Web was because it offers the possibility to reach many customers. The second
respondent at Liko AB added that other reasons for their Web presence were that the
Web is easy to use and to update, that it strengthens the brand, that it direct and inform
the customers, that it intermediates what Liko AB stands for and that the company can
use the Web to communicate with the customers. Svalson AB added that another reason
for being on the Web was because it felt natural.
71
Chapter 6 Analysis
All three companies agree that the Website should be promoted with all printed
advertisements and printed media that are sent out to the customers. Plannja AB added
that they also promote their Website with their vehicles and catalogues. Svalson AB
added that they use exhibitions and catalogues in order to promote the Website.
6.3 Research Question Three, How Does a Business-to-Business Firm Integrate the
Marketing Communication Tools?
In this section we will analyse the data from each of the three cases with regard to how
the companies are integrating the communication tools. In our frame of reference,
regarding the third research question, we provided previous studies conducted by Smith,
(1998) and McArthur and Griffin, (1997), which will be used in the within-case
analysis.
6.3.1 Within-Case Analysis
Integration of the Communication Tools
McArthur and Griffin (1997) conducted a study that stresses the importance of
integrated marketing.
Plannja AB considers integration of the communication tools as an important issue.
Since it is important to send out a consistent message to the customers. This is in the
line with what McArthur and Griffin (1997) stresses.
Liko AB integrates the communication tools that are used. One respondent believed that
they could perform better in this area. They believe that integrating marketing
communication is an important issue since a greater effect of the message can be
achieved by integrating the communication tools. This is in the line with what
McArthur and Griffin (1997) recommended.
One of the respondents stated that Svalson AB does not integrate the communication
tools and therefore does not have a pronounced integration policy. On the other hand the
other respondent stated that they integrate the communication tools. Both respondents
agreed that it was important to integrate the communication tools. This agrees with the
recommendations of McArthur and Griffin (1997).
Rules/Models Used when Integrating the Communication Tools
Smith (1998) presents ten golden rules in integrated marketing communication.
Plannja AB does not use any specific models when integrating the communication tools.
But they do consider a few steps when integrating the communication tools. The steps
that were brought up was learn from experience, get support from management, and
practise vertical and horizontal integration, which means that Plannja AB listed three of
the ten rules that was stated by Smith (1998)
72
Chapter 6 Analysis
One of the respondents brought up that Liko AB does not use any specific models or
rules when integrating the communication tools. On the other hand did the other
respondent state that Liko AB uses a 15-stage process when introducing a new product.
The first respondent’s statement about not using any specific models when integrating
the communication tools does not agree with what Smith (1998) stated. On the other
hand does the second respondent’s statement that Liko AB uses a specific model when
integrating the communication tools agrees with Smith (1998). Though we did not find
out which steps the model consisted of since the respondent did not want to inform us
about it because the respondent believed that is was classified.
Svalson AB does not use any rules or models for integrating the communication tools. It
is instead the customers who direct what kind of communication tools they are using.
This is not in the line with what Smith (1998) recommend.
The Communication Tools that are Commonly Used when Planning a Campaign
The second study conducted by McArthur and Griffin (1997) showed that the most
commonly used communication tools when planning a campaign were public
relations/publicity, trade publications (what we refer to as advertising), and
exhibitions/shows.
Plannja AB listed advertising, public relations, personal selling, sales promotion, the
Website, and sponsoring as the most commonly used communication tools in marketing
campaigns. Of the by McArthur and Griffin (1997) three listed items Plannja AB
brought up advertising and public relations as the most commonly used communication
tools used in campaign planning.
Liko AB listed exhibitions, personal selling, and advertising in the form of direct mail
as the most commonly used communication tools in marketing campaigns. The
respondents brought up two of the three by McArthur and Griffin (1997) listed items,
advertising and exhibitions.
Svalson AB listed advertising, exhibitions, and word of mouth, and the Website as the
most commonly used communication tools in marketing campaigns. Two of the three
by McArthur and Griffin (1997) listed items were brought up, advertising and
exhibitions.
6.3.2 Cross-Case Analysis
Here we will display the data concerning the third research question. In table 6.3 on the
next page a comparison between the cases will be conducted.
73
Chapter 6 Analysis
Table 6.3
Data Display Research Question Three, Integrated Marketing
Communication
Investigated
Item
Plannja AB
Liko AB
Svalson AB
Integration of •
the
Communication
Tools
important issue
•
•
important issue
•
can perform better in •
this area
important issue
different opinions
about the
integration of the
communication
tools
Rules/Models •
Used when
•
Integrating the
Communication
Tools
no specific
•
rules/models are used
they listed following
steps; learn from
experience, get
•
support from
management, practise
vertical and horizontal
integration
different opinions
•
from the respondents
regarding the use of
rules/models
•
could not take part
of the model they
were using since it
was classified
no specific
rules/models are
used
the customers
direct the kind of
communication
tools that are to be
used
Communication •
Tools that are
•
Commonly Used
When Planning a
Campaign
advertising and public •
relations were used
added personal selling,
sales promotion, the •
Website, and
sponsoring
advertising and
exhibitions were
used
added personal
selling,
•
•
advertising and
exhibitions were
used
added word of
mouth, and the
Website
Source: Olander & Sehlin (2000)
Regarding integration of the communication tools Svalson AB’s respondents opinions
differed. One respondent stated that they did not integrate the communication tools and
the other stressed the importance of integrating the communication tools. Both Liko AB
and Plannja AB agree that it is important to integrate the communication tools. Liko AB
also brought up that they could perform better within that area.
Both Plannja AB and Svalson AB do not use any specific models when integrating the
communication tools. Though Plannja AB brought up a few steps that they use when
integrating the communication tools. The steps are; to learn from experience, to get
support from management, and to practise vertical and horizontal integration. Svalson
AB stated that the customers direct the kind of communication tools that are to be used.
Regarding Liko AB’s use of rules/models is hard to determine since the respondents’
opinions differ. One of the respondents stated that they did not use any rules/models
when integrating the communication tools and the other respondent brought up that they
used a model, which we could not take part of since he believed that it was classified.
74
Chapter 6 Analysis
In terms of campaign planning both Liko AB and Svalson AB listed advertising and
exhibitions as the most used communication tools in campaign planning. Plannja AB
listed advertising and public relations as the most used communication tools when
planning a campaign. Further Plannja AB added personal selling, sales promotion, the
Website, and sponsoring as other communication tools that was commonly used when
planning a campaign. Liko AB added personal selling and Svalson AB added word of
mouth and the Website as the mostly used communication tools in campaign planning.
75
Chapter 7 Conclusions
7 CONCLUSIONS
T
his chapter contain the conclusions and the implications regarding the findings
of this study. These conclusions will then lead to some implications for
management, for the future development of theory in this area, as well as
implications for further research that will be provided in the end of this chapter.
7.1 Research Question One, How Can a Business-to-Business Firm’s Use of the
Traditional Marketing Communication Tools be Described?
Regarding the use of traditional communication tools it was shown that the use of the
communication tools differ between the firms in terms of the degree that they are used.
In terms of the extent in which the companies are using the communication tools
depends on the type of industry the company operates in, where the company is situated
geographically, as well as the products the company is selling. I also seem like past
experiences determines which communication tools that are appropriate for each
company.
Several authors have reviewed that personal selling, public relations, sales promotion
and advertising were the four major communication tools that are widely used within
market communication. With regard to our study it can be noticed that the
communication tools that were mostly used by the sample companies were exhibitions,
personal selling, and advertising. Public relations were only used in a large extent by
one of the companies and sales promotion was not considered important to none of the
companies. The reason for this might be that different communication tools are
appropriate in various types of industries.
It can be noticed that the companies direct their marketing towards branch people in
order to make them prescribe their products to the customers. This can be profitable
especially in the line of businesses’ that the investigated companies are operating in,
especially since they are developing product solutions for the customers, which often is
prescribed by branch people.
The choice of communication tools do not always depend on its effectiveness more it
seems like the costs in a certain degree restrain the use of some communication tools
that demand high expenditures. The firms considered word of mouth as an important
issue. Though two of the companies did not have any specific plans about how to
manage word of mouth. It seems like they trust their good reputation and leave it to that.
The third company always contacts their customers a week after delivery in order to be
sure that the customers are satisfied.
Personal communication tools by which the companies could interact face-to-face with
the customers such as personal selling and exhibitions were more important to the
companies than other communication tools. This depends on that the firms’ products are
tailor made and therefore requires more personal contact.
In terms of sponsoring it was noticed that a company either sponsored one object in a
very large extent or was not using the communication tool at all.
76
Chapter 7 Conclusions
The Main Conclusions Regarding Research Question One are:
Œ
Œ
Œ
Œ
Œ
Œ
The extent in which the communication tools are used depends on the type of
industry the company operates in, where the company is situated geographically, the
products the company is selling, and past experiences.
The communication tools that are mostly used by business-to-business firms are
exhibitions, personal selling, and advertising.
Business-to-business firms direct their marketing towards branch people in order to
make them prescribe their products to the customers.
The costs determine in which extent the communication tools are used.
Personal communication tools are important to business-to-business firms.
Business-to-business firms either sponsors one object in a large extent or not at all.
7.2 Research Question Two, How Can a Business-to-Business Firm’s Use of the
Website as a Marketing Communication Tool be Described?
The investigated firms used the Website to inform the market, provide hotlinks, online
catalogues, customer support, demonstrate products, corporate visibility, and for
technical assistance. The study showed that the firms considered the Website as a
complement to the other communication tools. Though there were some disagreement
between the respondents in one of the companies whether the Website functions as a
supplement to the other communication tools or not.
The Website’s is promoted with several of the communication tools as well as other
printed media such as business cards and brochures et cetera. The study showed that the
opinion about the role of the Website depends to a large extent on the respondent’s
position within the company. We found that if the respondent works with the Website
and has got a big knowledge about it, it is more likely that she/he is more positive to the
opportunities that the Website enables than a person with less knowledge.
The respondents brought up several reasons for being on the Web besides that it is quick
and easy. For example they brought up that the Web offers the possibility to reach many
customer, it feels natural, it is easy to use and to update, easier the communication with
the customers, strengthens the brand, it direct and inform the customers and that it
intermediates what the company stands for. The reason for this might be that the Web
has come to have an increased importance in the way businesses are being made over
the Web and that it will come to have an even greater significance in the future.
The Main Conclusions Regarding Research Question Two are:
Œ
Œ
Œ
The Website is mainly used to inform the market, provide hotlinks, online
catalogues, customer support, demonstrate products, corporate visibility, and for
technical assistance.
In general the Website were considered as a complement to other communication
tools.
The Website is promoted with all printed media and several communications tools.
77
Chapter 7 Conclusions
7.3 Research Question Three, How Does a Business-to-Business Firm Integrate the
Marketing Communication Tools?
In terms of integrated marketing communication the companies seems to have little
knowledge about it and how it is used. In spite of that they try to send out a consistent
message that will have a greater impact on the customers. This shows that they
understand the importance of integrated marketing communications, but their lack of
knowledge within the area makes it hard for them to perform it in a well-structured
manner. The firms use no specific rules/models when integrating the marketing
communication tools. Although the firms declare that they use some own steps that is
developed from previous experiences that fit a products introduction and the line of
business in which the firms operates. This shows that some rules/models are followed to
a certain degree but not a specific one that is followed step by step every time they
integrate the communication tools. The companies use and integrate different
communication tools when planning a marketing campaign. Though it can be noticed
that advertising and exhibitions are the most important issues when planning marketing
campaigns.
The Main Conclusions Regarding Research Question Three are:
Œ
Œ
Œ
Business-to-business firms seem to have a lack of knowledge regarding integrated
marketing communication.
No specific rules/models are followed when integrating the communication tools.
Advertising and exhibitions are the mostly used and the most important
communication tools for business-to-business firms when planning marketing
campaigns.
7.4 Implications
This section will cover the implications this study could have for managers, as possible
contribution for theory as well as for further research.
7.4.1 Implications for Management
Managers in industrial companies should attempt to increase the communication within
the companies in order to create a unified organisation. Further managers should
consider the fact of measuring the effectiveness of their communication tools in a better
way so they can perform better when using them.
As the Internet grows it becomes more and more important to use the Website in the
business-to-business world, therefore the companies should continue to regard the
Website as an important issue in order to stay ahead.
They should also strongly consider to learn more about integrated marketing
communication since it is a highly important issue that is of vital significance for the
companies competitiveness in the future.
78
Chapter 7 Conclusions
7.4.2 Implications for Theory
This study contributes to theory, in the fact that it provides the observation of
phenomena within the manufacturing industry and within a geographic setting. In other
words, we have used previous research in the area in order to arrive at a series of
research questions. These research questions allowed us to explore and describe (and in
a little sense to explain) the use and integration of marketing communication tools used
by industrial sellers. This thesis covers partly a new area of research because of the
investigation of the use of the Website in industrial selling firms.
Previous research about marketing communication has provided us with literature from
which we have formed our research questions, which have served as a foundation when
describing selling firms use and integration of the marketing communication tools.
7.4.3 Implications for Further Research
Œ
To investigate the importance of word of mouth in industrial companies.
Œ
To investigate the future of online shopping in industrial companies.
Œ
To investigate the effectiveness of integrated marketing communications.
Œ
To investigate if the way companies are using the different communication tools
differ in-between service companies and industrial companies.
Œ
To investigate the importance of the Website in the communication mix.
79
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References
Interviews
Plannja AB
Mikael Nyquist, CEO, 1999-12-13, 60 minutes.
Roland Marklund, Marketing Manager, 1999-12-13, 90 minutes.
Liko AB
Barbro Liljedahl, Marketing Manager, 1999-12-13, 90 minutes.
Magnus Ahlqvist, Information Manager/Webmaster, 1999-12-13, 30 minutes.
Svalson AB
Bill Svensson, CEO, 1999-12-16, 60 minutes.
Göran Karlsson, Marketing Manager, 1999-12-16, 90 minutes.
Interview Guide
Facts about the Organisation:
-
Size of firm:
-
Year the company was formed:
-
Turnover:
-
Geographic area of activity:
-
Industry the company operates in:
Facts about the Respondent:
-
Department the respondent works in:
-
The respondents position in the firm:
-
How can a business-to-business firm’s use of the traditional marketing
communication tools be described?
•
Personal Selling: (face-to-face sales calls/meetings, telephone sales calls, video
conferencing, and conferences seminars)
•
Advertising: (newspapers, direct mail, catalogues, technical reports, videos, and
branch magazines)
•
Sales Promotion: (premiums, price reductions, gifts/free sampling, competitions,
and sales force promotions)
•
Public Relations: (media relations/publicity, employee/member relations,
community relations, financial/investor/shareholder relations, industry relations and
special events)
•
Sponsoring: (sport teams, cultural programmes, arts, education, community, and
broadcast)
•
Exhibitions: (select the right shows, train exhibition staff, and follow up)
•
Packaging: (specific design and improvement of packaging)
•
Word of Mouth: (important, how is it handled?)
•
Corporate Identity: (logotype/name on permanent media; buildings, vehicles,
uniforms, business forms, and literature)
-
How can a business-to-business firm’s use of the Web as a marketing
communication tool be described?
•
The use of the Website: (inform the market, hot links, provide full-colour virtual
catalogues, on-screen order forms, online customer support/feedback, demonstrate
products, corporate visibility/brand name, and technical assistance)
•
The function of the Website: (complementary of supplementary to other
communication tools)
•
Reasons for being on the Web: (quick and easy or of fear of consequences of not
having a presence)
•
Media used to promote the Website: (magazines, newspapers, newsletters, and the
business card)
-
How does a business-to-business firm integrate the marketing
communication tools?
•
Integration of the communication tools: (do you integrate the communication
tols? how?)
•
Rules/models used when integrating the communication tools: (follow any
specific model? which steps are taken?)
•
The communication tools that are most commonly used when planning a
marketing campaign: (mostly used?, rank them)
Anything to Add: