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MASTER'S THESIS
Ekonomprogrammet D-niv
Institutionen fr Industriell ekonomi och samhllsvetenskap
Avdelningen fr Industriell marknadsfring
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 Firms Use of the
Traditional Marketing Communication Tools be Described? ............................... 30
3.1.2 Research Question Two, How Can a Business-to-Business Firms 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 Firms Use of the
Traditional Marketing Communication Tools be Described? ............................... 43
5.1.2 Research Question Two, How Can a Business-to-Business Firms 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 Firms Use of the
Traditional Marketing Communication Tools be Described? ............................... 48
5.2.2 Research Question Two, How Can a Business-to-Business Firms 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 Firms Use of the
Traditional Marketing Communication Tools be Described? ............................... 52
5.3.2 Research Question Two, How Can a Business-to-Business Firms 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 Firms 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 Firms 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 Firms Use of the
Traditional Marketing Communication Tools be Described? .................................... 76
7.2 Research Question Two, How Can a Business-to-Business Firms 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
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
Chapter 1 Introduction
1 INTRODUCTION
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
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 receivers 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 companys 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)
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
Content
Medium
C
C
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 Internets 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 CMEs 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 marketers 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
Medium
Content
Content
C
C
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)
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 todays 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.
Chapter 1 Introduction
1.5 Demarcations
The thesis is written from a sellers perspective and is not going to be looked up on
from the buyers 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
2 REVIEW OF LITERATURE
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.
10
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.
11
12
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
13
Table 2.1
17
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 companys 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 suppliers 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 companys 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 prospects interest in the
companys 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
1
2
3
4
5
6
7
8
9
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.
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):
Response time more than 99,9% of properly addressed first-class mail makes it to
its destination and the response time is long.
User unfriendliness the Internet may be the worlds 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.
Junk mail e-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.
Fraud or criminal access the 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 elses expense. The Internet is no different.
Government regulation and censorship as 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.
Limited access to make efficient use of the technology, both parties must have
access to the Internet.
Face-to-face Since 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
22
Buy - Stage
Low
1. Anticipation of recognition of a problem and
general solution.
Medium
Personal
Selling
High
Advertising
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)
IMC can wrap communications around customers and help them move through the
various stages of the buying process. The organisation simultaneously consolidates
24
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)
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)
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)
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)
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)
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
Here are two difficult questions What should a truly integrated marketing
department look like? And how will it affect creativity? It shouldnt 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)
Add different time scales into a creative brief and youll 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 its not just managers, its 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)
26
27
Table 2.3
Mean Scores
Ranked 1-5
3,7
Ad Effect on sales
2,7
2,8
2,65
3,15
2,6
Relationship Marketing
2,8
Special Events
3,3
Allocate Promo $
3,15
Comparative Advertising
2,5
Interactive Media/Marketing
2,5
2,4
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
Table 2.4
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
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
3 CONCEPTUALISATION
REFERENCE
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 studys 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 firms use of the traditional
marketing communication tools can be described. The second question deals with how a
business-to-business firms 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 Firms 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).
Personal selling
Personal selling could include face-to-face sales calls/meetings, telephone sales calls,
videoconferencing, and conferences/seminars.
Advertising
Advertising could include newspapers, direct mail, catalogues, technical reports, videos,
branch magazines (trade journals, business magazines).
30
31
32
RQ 2
The Web Site as a
Marketing
Communication
Tool
RQ 3
Integration
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
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.
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
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.
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
Strategy
Form
of Research
Question
Requires Control
over Behavioural
Events
Focuses on
Contemporary
Events
Experiment
How, Why?
YES
YES
Survey
NO
YES
NO
YES/NO
History
How, Why?
NO
NO
Case Study
How, Why?
NO
YES
Archival Analysis
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.
36
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
WEAKNESSES
Participant
Observation
Physical Artifacts
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)
38
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.
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 studys
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.
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
5 DATA PRESENTATION
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 Lule, 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 years
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 Firms Use of the
Traditional Marketing Communication Tools be Described?
Personal Selling
According to (MN) personal selling is a very effective communication tool in Plannja
ABs 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
ABs 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
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 (Stl 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.
44
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
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.
47
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.
48
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 Lule 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 ABs 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.
49
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 companys 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 Firms 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 companys products and
brand both nationally and internationally. On the other hand (MA) brought up following
50
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 jebyn, in Pite that lies in the north of Sweden. The
company has got about 24 employees. This years 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 Gran Karlsson (GK), who is the marketing manager of Svalson AB were
interviewed.
5.3.1 Research Question One, How Can a Business-to-Business Firms 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 companys geographical situation (90 % of their customers are
situated in the south part of Sweden) which does not make it profitable with personal
52
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
53
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 companys 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 Pite 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
54
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 companys
building and on all printed material. (GK) continued to say that the logotype is shown
on the companys 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 Firms 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 ABs 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
55
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
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 Firms 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 ABs 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
58
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
companys 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 ABs 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).
59
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 ABs 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 companys
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 ABs 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 Lule 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 ABs lifts. Special events are only used during exhibitions (i.e. dinner with VIP
customers). Liko ABs 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 Pite 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 ABs 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 ABs 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 companys sales force and are
therefore familiar with the products. They follow up the exhibitions by contacting the
customers that were interested in the companys 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 ABs use of packaging as a communication tool agrees fully with
Smiths (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 ABs logotype is exposed at the companys 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 ABs 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 ABs use of corporate identity agrees with
Smiths (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 ABs logotype and brand name is exposed on the companys building and on
all printed material as well at the companys 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
Investigated
item
Plannja AB
Svalson AB
calls/meetings,
telephone sales calls,
conferences/seminars
video conferences are
not used
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
newspapers, branch
magazines, direct
mail, catalogues,
technical reports, and
videos
branch magazines,
direct mail as product
catalogues,
videos, technical
reports, and
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
media relations/
publicity, community
relations, employee
relations, industry
relations, special
events
financial/investor
relations are handled
by the parent company
publicity, employee
relations, community
relations, industry
relations, and financial
relations, and special
events
investor relations are
handled internally
extent
only used in the form
of sport sponsoring
follow up
do not train exhibition
staff
packaging
used in a minor
extent
use specific design
do not improve the
packaging
Word of
Mouth
important issue
important issue
Corporate
Identity
used in a minor
extent
exposed at buildings,
vehicles, mechanics
uniforms, business
forms, and literature
Public
Relations
Sponsoring
Exhibitions
Packaging
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 Firms 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.
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.
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 ABs 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
Investigated
Item
Plannja AB
The Function
of the Website
Liko AB
Svalson AB
the Website
intermediates what
Liko AB stands for
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
Media Used to
Promote the
Website
all printed
advertisements and
printed matters
vehicles, catalogues
different opinions
between the
All three companies use the Website to inform the market, to provide hotlinks, online
catalogues, customer support, demonstrate the products, expose the companys 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).
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 respondents 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 respondents 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
Investigated
Item
Plannja AB
Liko AB
Svalson AB
Integration of
the
Communication
Tools
important issue
important issue
important issue
different opinions
about the
integration of the
communication
tools
Rules/Models
Used when
Integrating the
Communication
Tools
no specific
support from
management, practise
vertical and horizontal
integration
different opinions
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
exhibitions were
used
added personal
selling,
advertising and
exhibitions were
used
added word of
mouth, and the
Website
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
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 Firms 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:
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 Firms 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 Websites 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 respondents
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 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.
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
To investigate if the way companies are using the different communication tools
differ in-between service companies and industrial companies.
79
References
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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.
Gran Karlsson, Marketing Manager, 1999-12-16, 90 minutes.
Interview Guide
Facts about the Organisation:
-
Size of firm:
Turnover:
Exhibitions: (select the right shows, train exhibition staff, and follow up)
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)
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)
The communication tools that are most commonly used when planning a
marketing campaign: (mostly used?, rank them)
Anything to Add: