THE ROLE OF SOCIAL MEDIA IN CUSTOMER COMMUNICATION IN BUSINESS-TO-BUSINESS MARKETS Abstract The objective of this study is to create an understanding

what is the role of social media in customer communication in business-to-business markets. This is explored by defining the characteristics of social media that differentiates it from traditional marketing communication channels. Opportunities and challenges the social media induces for communication are explored as well. Utilization of social media in communication with current customers and with potential customers is also of interest in this study. The context of this study is Finland. The study is conducted by using qualitative research methods. The purpose of this study is to build a holistic picture of the role of social media in customer communication. The theoretical part of this study explores the changes that digital marketing and especially social media creates for traditional marketing communication. Identifying the characteristics of social media enables to understand opportunities and challenges it creates for communication. Relationship development viewpoint is taken because especially in b-to-b markets the communication occurs in customer relationships. The empirical data is collected with semi-structured interviews among Finnish companies operating in industrial markets and experts on social media. By connecting the theoretical and empirical parts of this study the results of the study develop. Characteristics of social media, participation, usergenerated content, interaction, transparency and viral marketing, increase the engagement of the company and its customers to the communication and further to the relationship. The opportunities and challenges the social media creates vary in different stages of the relationship development. At the pre-relationship stage the objective is to create awareness of the company and its products. Social media enables reaching wider audience and the potential customers more effective. At the negotiation stage it is important to start to develop the relationship. Communication and targeting markets are more effective in social media. At the development stage parties aim to create mutual value. Social media increases the engagement to communication and enable more informal and continuous communication. Companies operating in b-to-b markets should evaluate whether social media creates added value to their customer communication. TABLE OF CONTENT Abstracts Table of content Figures and tables

1 INTRODUCTION ......................................................................... .......................... 5 1.1 Introduction to the topic ..................................................................................... 7 1.2 The objective of the study and research questions ........................................... 10 1.3 Introduction to research methods ..................................................................... 12 1.4 Definitions of key concepts .............................................................................. 13 1.5 The structure of the study ................................................................................. 14 2 MARKETING COMMUNICATION................................................................. 16 2.1 Traditional marketing communication ............................................................. 16 2.2 Digital marketing communication.................................................................... 18 2.3 Marketing communication in relationship development.................................. 21 2.3.1 Pre-relationship stage................................................................................ 23 2.3.2 Negotiation stage ....................................................................................... 23 2.3.3 Relationship development stage ................................................................ 24 2.3.4 Digital communication in the relationship development process ............. 25 3 MARKETING COMMUNICATION IN SOCIAL MEDIA............................. 28 3.1 Marketing in social media................................................................................ 28 3.1.1 Characteristics of social media.................................................................. 29 3.1.2 Opportunities and challenges of social media for b-to-b companies........ 31 3.1.3 Viral marketing......................................................................................... 33 3.2 Social media tools in b-to-b communication ................................................... 35 3.2.1 Blogs ......................................................................................................... 37 3.2.2 Social networks......................................................................................... 39

3.2.3 Communities ............................................................................................. 41 3.2.4 Other social media tools ............................................................................ 44 3.3 Social media in customer communication ....................................................... 46 4 METHODOLOGY OF THE STUDY................................................................. 50 4.1 Qualitative research .......................................................................................... 50 4.2 Data collection ................................................................................................. 53 4.3 Data analysis ..................................................................................................... ....55 5 SOCIAL MEDIA IN BUSINESS-TO-BUSINESS COMMUNICATION ....... 58 5.1 Presentation of the empirical study ......................................................................58 5.2 Characteristics of social media as a communication medium ..............................59 5.3 Opportunities the social media creates for communication in b-to-b context61 5.4 Challenges the social media creates for communication in b-to-b context ..........64 5.5 Social media in relationship building .....................................................................68 5.6 Utilization of social media tools in communication ..............................................70 6 CONCLUSIONS .......................................................................... ......................... 74 6.1 Theoretical conclusions .................................................................................... 75 6.2 Managerial implications................................................................................... 80 6.3 Limitations and evaluation of the study ........................................................... 83 6.4 Suggestions for future research ........................................................................ 86 REFERENCES ............................................................................ ............................. 87 APPENDICES

Appendix 1 Interviews ....................................................................................... 96 Appendix 2 Framework for Interviews.............................................................. 97 FIGURES Figure 1. The structure of the study. .......................................................................... 15 Figure 2. Traditional one-to-many marketing communications model (Hoffman & Novak 1996). ........................................................................................................ ...... 17 Figure 3. Many-to-many model of marketing communications (adapted from Hoffman & Novak 1996). .......................................................................................... 19 Figure 4. Social media triangle (adapted from Ahlqvist et al. 2008, 14). .................. 20 Figure 5. Relationship development process (adapted from Andersen 2001; Ambrose et al. 2008). ........................................................................................................ ........ 22 Figure 6. The role of social media in customer communication. ............................... 47 Figure 7. The methodological choices of this research. ............................................. 53 Figure 8. The research process (adapted from Miles & Hubermann 1994, 10 - 12). 57 Figure 9. Themes used in NVivo data analysis. ......................................................... 59 Figure 10. The role of social media in customer communication in business-tobusiness markets. .................................................................................................... ... 79 TABLES Table 1. Changes in marketing communication. ........................................................ 21 Table 2. Characteristics of social media. ................................................................... 30 Table 3. Opportunities and challenges of social media.............................................. 33 Table 4. Social media tools and their strengths and weaknesses (adapted from Lehtimki, Salo, Hiltula & Lankinen 2009, 4; Cisco 2009). ..................................... 36

Table 5. Characteristics of social media as a communication medium. .................... 61 Table 6. Opportunities the social media creates for communication. ........................ 64 Table 7. Challenges the social media creates for communication. ............................ 67 Table 8. Communication media in different stages of relationship development process. ..................................................................................................... .................. 70 1 INTRODUCTION The evolution of media has always been about increasing peoples choices in communication. The invention and dissemination of media deal with the growth of choices. We can tailor our communication with increasing precision according to our needs but the more options we have, the more we are required to consider which the best option is. (Levinson 2006, 125 126.) The ever increasing competitive environment with fragmented and dynamic marketplaces is challenging the business to- business marketers. An organizations marketing communication must be coordinated to an integrated form so that all communication efforts have a united voice. Uniformity in the marketing communication is a requirement for a consistent image. (Garber & Dotson 2002.) Social media has increased its popularity as a communication medium between people. The social media and digital communication channels generally as a marketing communication medium have changed the roles of customers and sellers. Customers are no longer passive receivers of marketing communication but are self part of creating the communication and the content of the information. Thus customers have become active participants in the interactive communication. In consumer markets these tools have already been utilized for marketing activities but in business-to-business markets they are still not actively used. It is important to meet the customers and potential customers in mediums where they are. Thus knowledge about social media and benefits it has as a marketing medium and as a tool in customer communication is important for organizations. 1.1 Introduction to the topic Tools are artifacts of a culture as anthropologists claim. The culture will change when a new tool is added to an existing culture. Media technologies allow communication anytime and anywhere. Information technologies have changed the creation, storing and distribution of information. These new technologies have made accessing and using of information available for a wider audience. (Goodman 2000.)

The communication in new media raises important questions in organizations like who are communicating, what the content of the message is and what communication channels are being used (Hearn, Foth & Gray 2009). The web with its global reach works both as a communication media and a transaction media. The digital marketing channels are used for sharing and searching for information as well as for interaction and transaction between customers and markets. (Sheth 2007.) The virtual world of web not just helps the organizations to manage information more effectively but also to create value for customers by answering better and broader to their needs (Rayport & Sviokla 1996). The interorganizational coordination and relationship improvement among business partners are also positive effects of the use of digital medium in business-to-business markets (Subramaniam & Shaw 2002). Social media changes the roles of the seller and the customer. The main principle is to talk with customers not at them. The seller needs to engage the customers to communication either by providing such content or creating such environment that the customers want to visit the digital forums of the seller. Alternatively the seller can self participate in external digital environments. (Weber 2007, 4, 13 14.) It is important to recognize that it is customers and users of the social media applications who control the conversation and communication (Ryan & Jones 2009, 238). According to the Statistics Finland (2008) 88 % of the Finnish companies have a broadband connection and respectively 83 % of Finns uses internet regularly. In Finland there were used 34,5 million euro in advertisement on the internet at the first quartile of 2009 while the total investments in internet advertisement increased with 10 % from the year 2008 (IAB Finland 2009). Also according to Digimarketing Barometer the marketing in digital channels in Finland increases. Nearly 25 % of the total marketing budgets are expected to be used on digital marketing in 2009 and the proportion of investments in digital marketing is expected to grow further in the future. Over 40 % of the respondents to the barometer have their own marketing budget for digital marketing. (Pohto 2009.) According to a survey by the Association of Finnish Advertisers (2009) 41 % of companies are decreasing their marketing budgets in 2009. Although the total monetary investments are decreasing the investments to digital marketing are increasing which implies that the use of digital marketing channels in marketing is becoming more popular. Over 50 % of the respondents are increasing their inputs on digital marketing. Especially inputs to email, search engine marketing and web-marketing are increasing. Globally it is expected that the organizations will spend $ 4,6 billion by the year 2013 for social media technologies (Forrester Research 2009). Companies in b-to-b markets still have not fully understood the reason to utilize digital marketing in marketing and it

still seems to be a channel that is more used in b-to-c markets (Pohto 2009). However, b-to-b companies generally invest more on digital marketing than consumer-oriented companies (Jensen 2006). Possibilities that the digital marketing and especially social media create for marketing activities are an increasing challenge for organizations. Therefore the role of social media in customer communication is an interesting and useful research topic to study. European Commission (Eurostat 2008, 482) has acknowledged that information and communication technologies are critical for improving competitiveness of European industry and for meeting the demands of its society and economy. According to Singh, Veron-Jackson and Cullinane (2008) there is a gap between the available technologies to be used in customer communication and the efficiency that these technologies are used. Sheth (2007) suggests that the internet revolution should be one of the focus topics on academic studies on business-to-business marketing. The internet is both a communication and a transaction media and Sheth (2007) believes that digital marketplaces will change the traditional marketplaces in business-to business markets as they already have changed in business-to-consumer markets. Also Creese (2007) recognizes the great potential social media have in the business environment as a means of communication, collaboration and collection. The communication in social media is chosen for the study topic because communication happens in relationships between people who are inherently social. Recommendations from people one knows and trusts are powerful influencers of business decisions. (Shih 2009, 3.) Social media as a new media is a prioritized research topic in the field of marketing. Marketing Science Institute (MSI) has listed new media as one of the key research topics in marketing. MSI emphasizes that marketing managers should have the understanding how to use social media tools. (Marketing Science Institute 2008). There is some research done about social media in the consumer markets (e.g. Riegner 2007) but at the business-tobusiness markets it is a research topic which needs to be studied further. The use of social media as well as the investments made in digital marketing are increasing rapidly, thus there is a need to study the use and impacts of the social media to communication. This study aims to find out what role the social media and its different tools have on customer communication in business to- business markets. The viewpoint of this study will be the seller organization operating in business-to-business markets. Perspective of users in digital environment has been studied earlier (Ozuem, Howell & Lancaster 2008). However, there is a need to study social media from the perspective of seller organizations.

Also Hearn et al. (2009) are recalling for scientific studies of the use of new media, especially the use and impacts of the new media in corporate communication are interesting topics to study. Boyd and Ellison (2008) have summarized the research done on social networks. They identified that research on users, reasons and on what purposes social networks are used is still inadequate. This study will try to contribute to the phenomenon of social media focusing on customer communication in b-to-b context. 1.2 The objective of the study and research questions The objective of this study is to create an understanding of what is the role of social media in customer communication in business-to-business markets. Customer communication in this study is defined as the communication which occurs between the seller and potential or existing customers. The social media changes the traditional one-way communication to more interactive communication which in b to-b context occurs in a customer relationship. The study aims to recognize the role that the social media has in customer communication through identifying the characteristics of social media. Opportunities that the social media creates for the seller as well as challenges the seller has to recognize when using social media are also explored. Utilization of social media tools at different stages of customer relationship is also explored. Although the communication is studied in the relationship the focus will be on the seller company. The aim is to frame a picture of the role of social media in customer communication in business-to-business markets. The context of this study is Finland. The frame is constituted by answering to following research questions. The main research question is What is the role of social media in customer communication in business to-Business markets? Sub-questions which are contributing to main research question are What kind of characteristics the social media has as a communication medium? What kind of opportunities and challenges the social media induces for communication? How the social media can be utilized in current customer relationships and with potential customers? The research questions above are chosen in order to create an understanding of the phenomenon called social media. Exploring the general characteristics which differentiates the communication in social media from communication in traditional media helps to understand why the changing business environment requires evaluation of new communication tools. To recognize the opportunities and challenges of

social media from the viewpoint of the seller company helps in evaluating why and how to use social media as a communication medium. The relationship viewpoint gives insights about how different social media tools could benefit the seller in managing and developing companys customer relationships. Understanding the use of different tools and recognizing which tool is appropriate in a given situation is important so that the company can use them correctly with different customers and communication activities. 1.3 Introduction to research methods The methodology used in a study has implications to the research process as well as to the interpretation of the results. In marketing research the methodology refers to research process and choices the researcher does during this process. The methodology covers all the decisions made during the research process. It can be described as an analytical approach because it covers different dimensions. The taxonomy of methodologies involves five different levels which are axiology, context, communication, sample and time. Different levels have different alternatives in which the researcher chooses the best ones to the particular research. (Easton 1995, 411, 451 - 453.) According to the taxonomy of methodologies by Easton (1995, 453) research choices in this study are following: The axiology of this study is primary descriptive. The aim is to create an understanding of the studied phenomenon. The study can however be characterized also as exploratory due to the novelty of the topic. The second level, context of the methodology, is in this study in-context. The context of the studied phenomenon has an important part in the study. The in-context level leads to the third level which refers to communication. This study uses communicative methods instead of non-communicative. Qualitative research methods are used to interpret the studied phenomenon instead of finding causal explanations. The purpose of this study is to build a holistic picture of the role of social media in customer communication in business-to-business markets, so a qualitative research approach fits well for this purpose. The fourth-level, sample, is collected with interviews. The interviewees represent Finnish companies operating in business-to-business markets as well as experts of social media. Time dimension is contemporary since the temporal interest is in present time. 1.4 Definitions of key concepts Business-to-business (b-to-b) markets have features that differentiate them from business-to-consumer (b-to-c) markets. B-to-b buyers are fewer but they are larger than in b-to-c and seller-customer relationships

are close. The purchasing is professional and there are several influences that affect the buying. The buying process is complex and requires multiple sales calls. Purchasing is direct from manufacturers and there are not so many intermediaries than in b-to-c buying. The demand for business goods derives from the demand of the final good. (Kotler & Keller 2006, 210 212.) Marketing communication aims to maintain the interaction with different markets and to reinforce the awareness of the company and its products. Marketing communication that highlights the relationship aspect focuses on creating, maintaining and developing customer relationships through communication which either directly or indirectly affects the sales of the company. (Isohookana 2007, 62 63.) The marketing communication includes every kind of communication between the seller organization and the buyer about the organizations offering (Ottesen 2001, 35). Marketing communication medium is defined as anything that is capable of carrying or transmitting a marketing communications message to one or many people (Pickton & Broderick 2005, 104). Communication channels can be personal or nonpersonal. In personal communication channels the communication occurs between two or more persons and the effectiveness is derived through individualized presentations and feedback. Non-personal communication channels include the media and the communication is directed to more than one person. (Kotler & Keller 2006, 548, 551.) Social media is a combination of content, user communities and social media technologies. Content is user-created and it has different kinds of forms (text, photos, videos, tags). Communities enable the social activities and communication between people either directly or indirectly through media objects. Social media technologies and applications enable creation and sharing of content in these communities. (Ahlqvist, Bck, Halonen & Heinonen 2008, 13.) Participation and user-created content are the key principles of social media (Ahlqvist, Halonen & Heinonen 2007, 8). Social media tools are technologies and applications that enable the communication in social media. There are several categorizations of social media tools. This study uses the categories by Constantinides and Fountain (2008) who divide social media tools to blogs, podcasts, social networks, communities, content aggregators and virtual worlds. In this study the concept of social media includes the tools used for communication in social media. The social media tools which are explored more closely in this study are blogs, social networks and

communities. Also other social media tools are shortly introduced. When using the concept social media, this study refers to social media as a communication medium and by different social media tools as technologies enabling the communication. 1.5 The structure of the study The study consists of six main chapters. The introduction chapter leads to the topic of the study and represents the objective as well as the key concepts used in this study. The theoretical part of this study is represented in chapters two and three and consists of theory of marketing communication and marketing communication in social media. Methodology of the research is shortly introduced before the empirical part of the study. Conclusions as well as the evaluation of the study are drawn in last chapter. Future research topics are suggested in the end. The structure of the study is represented in the figure below (see Figure 1). 15 Figure 1. The structure of the study. 1 INTRODUCTION 4 METHODOLOGY OF THE STUDY 5 SOCIAL MEDIA IN B-TO-B COMMUNICATION 2 MARKETING COMMUNICATION 3 MARKETING COMMUNICATION IN SOCIAL MEDIA 6 CONCLUSIONS 16 2 MARKETING COMMUNICATION The theoretical framework of this study is drawn from marketing communication theories and research made on digital marketing specifying on social media. The theory focuses on social media in customer communication and utilization of different social media tools in business-to-business context. This study will explore features of the digital marketing which have an effect on communication in social media. Next this study will represent the features of marketing communication. The viewpoint is the communication in business-to-business markets and in digital

marketing communication. Different models of relationship development are used to describe the communication in business-to-business context. 2.1 Traditional marketing communication Marketing communication can be defined as the collection of the elements in organizations marketing mix which facilitates exchanges with customers. The main objectives of marketing communication are to create demand and brand awareness, enhance attitudes, influence the purchase intentions and facilitate the purchase (Shimp 1993, 8, 28 - 30). The tasks are to communicate the value of the marketing offering of the seller organization, to guide buyers to purchase the offering and to remind the buyers about the offering (Ottesen 2001, 35 36). The traditional marketing communication happens between the sender of the communicated message through the medium to the customers. This is called one-tomanymarketing communication model (see Figure 2). The communication is oneway as the organization sends the message through a medium to customers. There is no feedback from the customers included in this model. (Hoffman & Novak 1996.) 17 Figure 2. Traditional one-to-many marketing communications model (Hoffman & Novak 1996). The traditional one-way communication has changed to interactive and collaborative communication. Collaborative communication can be defined as a combination of intensive, relationship-building communication facets. These facets include frequency, directionality, medium and content. The communication frequency refers to the amount of contact between partners. The direction of communication can be either one-way or interactive. The communication medium is the medium which is used to transfer the content of communication and the formal modes of communication. The content is the message transmitted between the partners in a btob relationship. (Mohr & Nevin 1990; Mohr, Fisher & Nevin 1996.)

When planning marketing communication it is important to take an expanded approach to marketing channels. Not only the traditional tools, such as TV and print media, but also other contact points should be considered. A customercentric company takes the customers perspective in deciding which channels to use to reach the target markets. (Kliatchko 2008, 149 150.) As the technological applications develop constantly, the media choices for communication are changing simultaneously (Ambrose, Marshall, Fynes & Lynch 2008). Using of several mediums for marketing communication enhances the effect of each of used mediums as they contribute to others. The combined effect of several mediums exceeds the sum of the effects of individual mediums. This is called a cross-media synergy. This synergy across multiple media makes the medium choices of communication important for marketers. It is important to be present in several mediums Seller Content Medium Customer Customer Customer 18 simultaneously to ensure that the customers are reached in contact points where they are. (Naik & Raman 2003.) 2.2 Digital marketing communication The digital environment offers tools and services for communication. The independence of time and place, ease of entry as well as the interactivity in marketing creates opportunities for companies to communicate both with new and existing markets in an integrated way. The global availability makes it easier to keep up the continuous communication with customers in different markets at all times. Especially in business-to-business markets where the offering can be very complex and specified, the availability is important. (Avlonitis & Karayanni 2000; Berthon,

Lane, Pitt & Watson 1998.) The digital marketing communication has changed the traditional marketing communication. Information is available from many sources and the customer has to decide self which information is relevant. The marketing communication model has become more complex; from one sender through one medium to several senders with different information through the medium to customers. The customers are interacting with the medium, with companies and with other customers creating the content themselves. In this model the primary relationship is with the medium the parties interact with, not anymore between the sender and the receiver (see Figure 3). (Hoffman & Novak 1996.) The sender and the receiver both have a twoway communication with the media (Steuer 1992). The interactive communication is based on contact. By interaction the function of communication will extend and become more diverse than the traditional one-way channel from a company to customer. By listening to the markets, businesses will collect information on the aims and activities of important customers and the extent of their knowledge about the business. (Linnanen, Markkanen & Ilmola 1999, 210.) 19 Figure 3. Many-to-many model of marketing communications (adapted from Hoffman & Novak 1996). The digital communication tools can be used for information search by the customers and for relationship development by the seller. The information search in purchasing process does not require personal face-to-face contact as more negotiation later on a purchase process does. The information can be gathered easily without communication with the company, especially with highly standardized products. When the products become more complex or needs to be customized the

communication becomes more relevant. (Moen, Madsen & Aspelund 2008.) In business-to-business markets the digital marketing is used to reach new business customers, to serve current customers more effectively and to obtain buying efficiencies and better prices (Armstrong & Kotler 2009, 462). In Finland the most popular digital marketing channels are companies own web-sites, enewsletters, search engine marketing, direct marketing via e-mail and webmarketing. Communication tools which usage is increasing among business-tobusiness companies are e-newsletters and e-mail. (Pohto 2009.) Communication, collaboration and the use of available data are the focus areas of businesses today. Business operations can be done digitally so employees can communicate and collaborate anywhere at any time. (Solomon & Schrum 2007, 2, 20, 49.) Digital channels enable accessing, providing and sharing information in business networks (European Commission 2008). The communication content has become the most important element of the communication. The customer takes part in choosing the content, the channel and the timing for the communication in digital marketing. (Merisavo, Vesanen, Raulas & Virtanen 2006, 32.) The information is Seller Content Medium Customer Customer Seller Content Content Content 20 created in interaction thus the content is built out of real needs and use (Tredinnick 2006). Social media in this study is formed from three elements: content, communities and networks and tools (see Figure 4). The content is user-created and can be of different

types. Communities and networks refer to the social nature of the media: people communicate with each other either directly or via media. The third element, tools, is technologies and applications which enable people to participate in creating and sharing the content. (Ahlqvist et al. 2008, 13.) The customers are cocreators of content on the social media. It is however important to maintain the balance between professional and user-generated content. A marketer can provide information about the company and its products but also accept that the customers contribute to the content as well. (Weber 2007, 38.) Figure 4. Social media triangle (adapted from Ahlqvist et al. 2008, 14). Digital communication channels have changed the traditional marketing communication. Traditional one-way communication where the sender creates the content has become two-way interaction where the parties interact with the medium. Social media enables the customers to become co-creators of the content which is created in a dialogue with the help of different social media tools. Table 1 combines the previously presented changes in marketing communication. The differences regard the communication type and content creation that the digital marketing communication tools and applications induce for communication. Tools Communities and networks Social media Content 21 Table 1. Changes in marketing communication. Traditional MC Digital MC Social media MC Communication type One-way Two-way Collaborative Creation of the content Seller company sends the message to the customer. Seller and the

customer have twoway communication with the medium. The content is created in interaction. 2.3 Marketing communication in relationship development In business environment it is important to emphasize long-term relationships with business partners. The communication in business-to-business markets should focus on relationship development rather than on single transactions. Selling process is more expensive to new customers than existing ones, therefore longterm relationships not just increase the commitment from customers side but they also increase the profit of the seller company. Key to developing relationship with the customer is interactive communication. Marketing communication is interactive and the communication occurs in a dialogue between the seller and the customer. The role of communication in relationship development is thus essential. (Duncan & Moriarty 1998.) Therefore the stages in relationship development will be the viewpoint of communication in this study. Different models (Ford 1980; Dwyer, Schurr & Oh 1987; Andersen 2001; Subramaniam & Shaw 2002; Ambrose et al. 2008) for relationship development are used to create an understanding how communication strengthens the relationship in business-to-business context. A model created by Ford (1980) includes five stages: at the prerelationship stage the buyers are seeking sellers, at the early stage the potential sellers are in contact with buyers to negotiate or develop a specification for purchasing, the development stage occurs as deliveries of continuously purchased products increase, the long-term stage is characterized by the companies' mutual importance to each other and the final stage is marked by an extension of the institutionalization process to a point

where the conduct of business is based on industry codes of practice. According to Dwyer et al. (1987) there are five different stages in buyer-supplier relationships: awareness, exploration, expansion, commitment and dissolution. Subramaniam and 22 Shaw (2002) have identified four stages: search, processing of the order, monitoring and control as well as coordination. This model is useful especially for purchasing relationships as it highlights the possibilities created by digital marketing in procurement process. Ambrose et al. (2008) have combined the relationship development models by Dwyer et al. (1987) and Subramaniam and Shaw (2002) and developed a four-stage model that explores the behavioural and functional aspects of each stage of the relationship. Andersen (2001) uses four stages of relationship development: the pre-relationship, negotiation, relationship development and termination stages. All above mentioned models proceed the same way so this study will combine these models and use the created, three-stage model, in exploring the communication in social media (see Figure 5). Although communication is important also in the dissolution of the relationship, the termination stage of the model is not included to communication in this context. The three stages, prerelationship, negotiation and relationship development stage, are introduced next from the communication point of view. Figure 5. Relationship development process (adapted from Andersen 2001; Ambrose et al. 2008). Communication in the relationship development process is chosen as the viewpoint for this study in order to identify different communication channels and modes at Fulfil transaction Changing needs and capabilities

Initiate relationship Experience relationship Renewal / resolution Negotiate contract Pre-relationship stage Negotiation stage Relationship development stage Communication task: Communication type: Awareness Persuasion Commitment One-way Two-way interaction Two-way interaction Behavioural aspect: Relationship stage: Functional aspect: 23 different stages of the relationship development. The stages of the relationship development model have different tasks concerning the customer communication. At the pre-relationship stage the task is to create awareness, at the negotiation stage persuade the customer for transaction and at the relationship development stage to commit the customer to the relationship (Andersen 2001). 2.3.1 Pre-relationship stage The relationship building starts with the pre-relationship stage. At this stage the main task of communication is to create awareness of the company and its products and to identify potential partners to start a relationship with. The behaviour of communication at pre-relationship stage is to initiate a relationship through contract negotiation. (Dwyer et al. 1987; Andersen 2001; Subramaniam & Shaw 2002; Ambrose et al. 2008.) The communication at the pre-relationship stage usually is one-way as the seller provides information to the buyer. Although communication mainly is one-way there can also be active communication from the buyers side. The buyer may seek for

extra information from personal sources. Other suppliers and even competitors provide information that the buyer actively looks for. (Andersen 2001.) Different channels for awareness creation and information searching are useful for both parties (Subramaniam & Shaw 2002). 2.3.2 Negotiation stage The negotiation stage is characterized by exploration. Parties are interacting and exploring each other. Transactions are negotiated and specifications of orders are set. The processing of the transactions and initial transactions starts to take place. The communication becomes more interactive at the negotiation stage when the supplier tries to persuade the buyer for transaction. (Dwyer et al. 1987; Andersen 2001; Subramaniam & Shaw 2002.) 24 At the negotiation stage the functional day-to-day fulfilment of transaction leads to experiencing the relationship (Ambrose et al. 2008). Representatives from the seller and the buyer companies are in a dialogue trying to find a resolution to the needs of the customer and to try to decrease the uncertainty between the parties. The seller companys primary objective is to make the transaction happen by persuasion. (Andersen 2001.) The negotiation stage does not automatically lead to a more developed relationship. Negotiation requires interactive communication of wants and needs of the parties as well as agreements on investments and resources. The negotiation stage is needed for the parties to test the compatibility and performance of the other. (Dwyer et al. 1987.) 2.3.3 Relationship development stage The relationship development stage can be referred as the expansion stage. At this stage the commitment between parties is increasing as the relationship becomes longterm and the communication more interactive. The interdependence and risktaking

in the relationship increases and parties invest to maintain the relationship. Transactions and coordination for further supply take place as the relationship develops. (Dwyer et al. 1987; Andersen 2001; Subramaniam & Shaw 2002.) The relationships may change at this stage due to changes in customer needs or in sellers capabilities. These changes lead to re-negotiation of contract or resolution of the relationship. (Ambrose et al. 2008.) Parties become more dependent on each other and begin to benefit from the relationship as it evolves and deepens. From the communication point of view rules which help to guide the conversation in the relationship are developed. (Andersen 2001.) The communication in relationships which already are established involves persuasion, informing, listening and answering (Duncan & Moriarty 1998). At this stage the parties are primarily only communicating with each other and other potential partners are excluded (Dwyer et al. 1987). 25 2.3.4 Digital communication in the relationship development process Primary communication modes are planned communication, contact creation and connectedness. Planned communication is used at the pre-relationship stage where initial relationships are building. Planned communication includes formal communication messages and the forms to deliver the messages are traditional. The level of interactivity is low in planned communication. In contact creation, which occurs at the negotiation stage of the relationship, the seller company approaches the customer directly with more personalized messages. At this stage the goal is to create a link to the customer either personally or through digital medium. The interaction between parties is higher and includes some participation. The connectedness at the relationship development stage is characterized by high participation and dialogue

between parties. This stage can be seen as a consequence of previous stages. (Lindberg-Repo & Grnroos 2004.) The digital marketing communication channels enable the objectives set for marketing communication through relationship development: creating presence, creating relationships and creating mutual value. Creating presence refers to awareness of the organization and its offering. Creating presence is especially important at the pre-relationship stage of the relationship development process where the awareness of the organization is created. At the negotiation stage the creation of relationship occurs in transactions and communications between the customer and the organization. The organizations collect information about the customers and use this information when planning the marketing communication. At the relationship development stage mutual value is being created to both parties when working together towards common goals. (Rowley 2004.) Taking the digital aspect to business activities and communication is not about systems and technology. Optimally it is managing relationships with customers, suppliers and business partners in a complex and global competitive environment. (European Commission 2008.) Social media in synergy with traditional communication tools enables the communication with existing customer 26 relationships and social media helps to develop relationships with customers beyond the traditional media (Hearn et al. 2009). Constant customer contact is important in developing customer relationships. Company should encourage its customers to interactive, two-way communication which is a principle in communication in social media. Open channels where it is easy for customers to give feedback, participate in product development and share information with the company as well as with other customers enhance relationships. (Merisavo et al. 2006, 33.)

Different communication channels are preferred at different stages of the relationship development. At the beginning of the relationship face-to-face meetings could be used to create a foundation for a successful relationship and to take advantage of the richness of the media. Information richness refers to the ability of information to change the understanding (Daft & Lengel 1986). The use of rich information communication media appears to have advantages for the parties adding value within the relationship. With uncertain relationships e-mail could be used as a primary tool. (Ambrose et al. 2008.) The seller finds potential customers with the help of the digital medium while the customer may benefit from different search engines when searching for relevant information among all of the information provided by different companies (Subramaniam & Shaw 2002). As the relationship develops and the uncertainty decreases the communication media choice becomes less rich focusing more on digital medium depending on the needs of the parties. Especially the use of e-mail as well as telephone may increase. The digital communication channels enable the day-to-day communication between parties and make the routine activities concerning the transaction handling easier and faster. In mature relationships the digital medium is often chosen, however face-toface meetings are also preferred, especially in relationships with strong social ties. The use of face-to-face meetings in mature relationships is assumed to generate from social benefits of the relationships. Relationships with weaker social ties prefer digital communication media. The interaction between seller and buyer strengthens the relationship during different stages. It is important for the marketer to not to have too prescriptive approach for communication because it could hinder effective 27

communication. Using digital communication in all circumstances or by not making diverse communication media available may hinder the development of the complex buyer-seller relationship. (Ambrose et al. 2008.) 28 3 MARKETING COMMUNICATION IN SOCIAL MEDIA Marketing communication in social media includes the customers to the communication process. Next this study sums up the characteristics of social media and the opportunities and challenges it creates for communication in order to create an understanding of the role of social media in customer communication. Closer focus will be on business-to-business context. Different social media tools will also generally be introduced. 3.1 Marketing in social media Originally social media and social media tools are used in organizations for communication with existing customers and internal communication as well as to create brand awareness and to reach new markets. Increasingly the use of social media has become a peer-to-peer communication medium where customers create the content using the applications and services of social media. (Hearn et al. 2009.) Companies interact through communities which are used for communication and transactions. Drivers for companies to use the social media are commercial and customer orientation in which the market orientation, customer requirements and customization of the offering affect. Segmented needs of diverse customer sectors means that for segmentation it is important that all customers are being treated individually. International markets and competition refers that dynamics and physical as well as cultural aspects of international markets need to be taken account. (Ahlqvist et al. 2008, 23 27.) Social media enables rapid interaction between the marketer and customers which

helps to collect information and conduct market research fast. Also in customer-tocustomer communication the rapid interaction easies the peer recommendation in decision-making. (Dahan & Hauser 2002.) Social media tools are becoming more popular also in business-to-business marketing. Customers, distributors, resellers and other partners of the company are expecting more b-to-c-like personalized experiences. Social media plays a big role in b-to-b marketing in driving traffic, 29 building thought leadership and facilitating word of mouth referrals. (Madden 2008.) To succeed in marketing through social media requires that the marketer has something valuable content to deliver. It is not enough just to be present but the marketer should engage the audience by meaningful purpose. The marketer also has to be ready to listen and to talk; interaction is the key element, thus the marketer should not own the conversation. It is also important to realize that the social media does not work like the traditional media, thus specific marketing strategies to social media should be considered. (Lowery 2009.) 3.1.1 Characteristics of social media Features that can be used in describing the social media are communications, interconnectedness, immediacy and community (Solomon & Schrum 2007, 24). Characteristics for social media are customer-centric, user-generated, interactive and dynamic. Social media fosters community participation and builds on collective community intelligence. (Singh et al. 2008.) Features that are mutual to social media are openness, peering, sharing and global action. Openness among business partners increases transparency. Transparency is important to business relationships as it increases the trust and therefore results in lower costs and increased loyalty. Peering lowers the hierarchical levels of

companies and increases the innovativeness. Peer production is selforganized so it is more effective and is mostly used in information goods. Sharing of information and digital content is one principle of the social media. Information and content should generally be open to everyone but intellectual property rights can hinder the sharing. The globalization is due to the collaboration and ways that companies orchestrate their capabilities to be innovative and productive in order to stay globally competitive. A company, which is truly global, has no physical or regional boundaries. (Tapscott & Williams 2008, 20 - 30.) Social media tools increase the openness and transparency both internally in the organisation but also externally among customers and other stakeholders (Kangas, Toivonen & Bck 2007, 58). 30 Characteristics that emphasize the social aspects of the social media are participation, openness, conversation, community and connectedness. Social media encourages for participation through contributions and feedback from interested users. Social media services are open for comments and content from users. Conversation highlights the interactive feature of the social media compared to one-way broadcasting in a traditional media. Communities are formed easily and effectively around common interests. Connectedness refers to links of other users and sites. (Mayfield 2008, 5.) Social media emphasizes the openness and forms of participation based on usergenerated content (Constantinides & Fountain 2008). Participation includes usertouser interaction and user-to-content interaction. User-to-user interaction refers to people interacting with each other through e-mail, instant message, chat room, message boards and other digital venues. User-to-content occurs when people rate

the content, save sites to their favourites, share with others and post comments. (Shao 2009). Table 2 draws together the characteristics of social media. Table 2. Characteristics of social media. Characteristic Advantages for seller company User-generated content Co-creation of the content Interactive Feedback of customer needs and changes Participation Increases the engagement Transparency Increases the openness Peering Increases WOMmarketing and innovativeness Community Increases commitment and connectedness Revenue models in social media include giving the product or service to customer for free, charging monthly fee for using the service, sponsoring and advertising for getting incomes and sharing revenue. There are also organizations which do not try to gain profit at all: Wikipedias operation is purely based on donations. In social media it is fundamental to a company to be found easily and fast as a result of the search process. Internet has become very important channel for searching information so the findability there has a crucial role in marketing. Search engine programs can help the company to become more visible in the digital environment. (Salmenkivi & Nyman 2007, 262 - 263, 278 - 286.) 31 3.1.2 Opportunities and challenges of social media for b-to-b companies From the business point of view there can be recognized opportunities that the social media creates. According to Ahlqvist et al. (2008, 16 17) the opportunities are core, enabler, feature and built-on. On core social media applications the content and activity are user-created and the revenues relate directly to these activities. An example of a core social media application is YouTube. The enabler refers to social media practices and processes to accomplish a process or function within a business. Wikipedia is an example of an enabler. Social media is used as a feature when features from social media are being adapted to web sites. For example some news

services operate as features. The last opportunity is the built-on which refers that the social media applications would not be possible or needed without the user-generated content and interest towards them. Sub-groups of built-on opportunity are tools and services for creating social media applications (Google), tool or service built on social media content (Technorati) and social media as a delivery channel (RSS feeds). Marketers benefit from the social media in several ways. Brand building is easier to target. Vertical communities by industry or horizontal communities by function can be used to create brand awareness. When launching new products, the digital environment helps to reach greater audience and better targeted markets than traditional offline marketing. Social media tools enable consistent communication with customers and other business partners. Sharing information among the industry and collaborating with stakeholders can also enhance innovations. Customer feedback helps to develop products to be more customer-friendlier. Also the internal communication is easier in digital environment. Intranet and online forums for employees keep them updated for company news and enables the knowledge sharing among employees. (Weber 2007, 23 24.) Social media tools enable more personalized and faster interaction with customers and thus enhance corporate credibility and relationships (Kho 2008). Companies can adopt inexpensive social media applications with small investments. The tools help 32 to coordinate large and complex business networks. (Kangas et al. 2007, 58.) Communication happening digitally compared to face-to-face communication has advantages. Digital communication allows users to compensate for missing cues in

images, audio, texts and other data by using available textual cues. Users can focus more on the content by carefully reading, listening or viewing it digitally. Users can engage in more informal conversations and settings. (Shao 2009.) Collaboration with customers enhances the brand awareness, helps to gather information about customers, creates product development ideas and enhances innovativeness as well as increases the effectiveness of advertising through preferences about products and services. The amount of knowledge and ideas that a group of people have is much bigger than any individual or a company has itself. To gain customers attention and building brand awareness but also to get the customers to involve in product development and marketing is relevant. (Salmenkivi & Nyman 2007, 221 - 225.) The collaboration and peer production, sharing knowledge, capabilities and resources within broad horizontal networks of participants, can accomplish much more than one company acting alone (Tapscott & Williams 2008, 18). Reasons to involve in marketing in social media are to get deeper engagement with customers, get insights that are not available through other channels and being present in channels where companys customers are present (Ryan & Jones 2009, 155). When trying to reach new customers the social media creates opportunities in reaching large amount of potential people cost effectively. Also the viral marketing is an opportunity to gain new customers. (Merisavo et al. 2006, 138.) There are also challenges that the social media causes to companies. Identity and privacy protection are issues related to social media. Users are concerned of trust issues. The users are expected to trust other users, often strangers, in social media applications. Confidential and private information can end up in wrong hands and to be misused. Low entry barrier may affect that the value of the content may also be

low and content misleading. Stickiness of old habits concerning the traditional communication channels compared to new channels may hinder the utilization of social media applications. Also legislation and copyright problems may hinder the 33 development of these applications. A challenge is to inspire enough critical mass to contribute to the production of content. (Ahlqvist et al. 2008, 29, 33; Kangas et al. 2007, 57.) An important element of the social media is the updated information. Users expect the content to be fresh and updated at all times so the challenge is to invest enough resources in order to keep the content updated. (Creese 2007.) Challenging is also to keep a balance between the user-generated and the marketergenerated content (Weber 2007, 38). Table 3 summarizes the opportunities and challenges of social media. Table 3. Opportunities and challenges of social media. Opportunity Challenge Brand awareness / building Privacy issues Information search / sharing Trust issues Targeting / reaching market Value of the content Efficient customer communication Legislation Viral marketing Engagement to use the social media Small investments in implementing the tools Resource investments 3.1.3 Viral marketing Word of mouth (WOM) communication is a customer-dominated channel for marketing communication where the sender of the communication is independent of the market (Brown, Broderick & Lee 2007). Viral marketing is marketeroriginated word-of-mouth communication which takes place in digital environment. Viral marketing uses customers communication networks to promote and distribute products. Viral marketing can be defined to communication and distribution that uses customers to transmit digital products digitally to other potential customers in their

social group and to motivate the contacts to transmit the product even further. (Helm 2000.) In viral marketing the message is communicated from one person to another after the sender has sent out the original message. Viral marketing can be a very powerful communication form. People generally trust more on messages received from others alike than from the seller whose aim is to maximize own profit. 34 Although it is powerful in communication, viral marketing is very difficult to control so it is also a risky communication medium. (Pickton & Broderick 2005, 109.) The viral marketing uses customer-to-customer or peer-to-peer communication to share the information about the company and its offering. The viral marketing can be either intentional or unintentional. The communication is intentional when a customer promotes a company to his / her peers. Unintentional communication occurs for example through e-mail when there is an advertisement at the end of each e-mail the customer sends. The customer cannot influence to unintentional viral marketing since it happens automatically. Because the viral marketing communication happens in digital form, not in face-to-face communication, the recipient of the viral marketing communication may not be looking for the information and may not pay so much attention to it as in face-to-face meeting. (De Bruyn & Lilien 2008.) In traditional WOM-communication the similarity of characteristics of peer and strong ties in relationships play an important role. However, in digital environment the similarities of interpersonal relationships are not so crucial feature due to the individual characteristics not being visible digitally. Interests of the group and the content of the information affect more than individual characteristics. Neither the

strong ties are so important than in offline environment because in online the source of the information is the channel not an individual. (Brown et al. 2007.) The source expertise and credibility are important features in business-to-business communication. Challenging in a digital environment is the recognition of the source. Recipients may have problems with recognizing relevant sources of information because viral communication in digital channels does not happen between acquaintances but occurs between unknown people through mediated channels. Customers must thus evaluate the available information and its sources. (De Bruyn & Lilien 2008; Brown et al. 2007.) The objective of viral marketing traditionally is to reach a maximum amount of potential customers. From the relationship development viewpoint the marketer should also aim to keep customers. Viral marketing as other marketing activities requires the establishment of long-term 35 relationships with customers. (Helm 2000.) From the social media tools especially blogging can be described as a form of viral marketing. The content in blogs is usergenerated and they use social networks and interactivity in sharing the content. (Singh et al. 2008.) 3.2 Social media tools in b-to-b communication In this study the social media tools and applications are divided into categories according to Constantinides and Fountain (2008). The categories are blogs, social networks and communities. Podcasts, content aggregators and virtual worlds are presented together with other social media tools. Social media tools highlight the power of users to select, filter, publish and edit information and to participate in creation of content on social media (Tredinnick 2006). Ways that a company can actively plan its marketing activities with the help of social media is by gathering information and following discussions written in social media.

Companies should follow writings and discussions about themselves with the use of different applications. For example Technorati is a social media service that gathers data from over 1,5 million blog posts and introduces readers to blogs and social media content (Technorati Media 2009). Downloading of own advertisements to the web is a way the marketer gains wider audience and possible viral marketing as people tell about these ads to their peers. Viral marketing can also be used more advisedly. The marketer can push information through different channels to target market and hope that the message will be interesting enough for the customers to spread it forward. The company can use its customers as affiliates or include the customers in planning the marketing communication. Crowdsourcing is the most including way making the customers be a part of the company. In product development the customers can be co-innovators. This is used for example in mass customization of products. The challenge in crowdsourcing is the licence and copyright issues. (Salmenkivi & Nyman 2007, 229 - 230.) 36 Social media can be used both internally and externally in organizations. Internal applications include knowledge sharing among personnel, management and sharing of information, recognizing expertise, supporting marketing, creating innovations and developing knowledge. Externally the social media is used for communication and interaction with customers and to get the customers to participate in innovations. (Otala & Pysti 2008, 48.) Social media tools have strengths that have an effect on marketing activities but there are also weaknesses. Table 4 combines the use of different social media tools and their strengths and weaknesses. As an example of a well organized social media campaign in business-to-business markets is Ciscos

product launch of ASR 9000 Router. Cisco used different social media tools to create awareness of the product novelty. Table 4 introduces examples of this campaign. Table 4. Social media tools and their strengths and weaknesses (adapted from Lehtimki, Salo, Hiltula & Lankinen 2009, 4; Cisco 2009). Tool Use Strengths Weaknesses Example Blogs and podcasts Informing of current events and novelties Easy and cheap tool to maintain Requires time and constant updating Ciscos own blog: blogs.cisco.com Social network Content sharing, creating and maintaining relationships Easy to set up a profile, makes possible targeted advertising How to induce users to participate Facebook: Cisco Support Group Communities Maintaining customer relationships, brand building Intense two-way communication Requires lots of resources to maintain Twitter: Cisco account Content

aggregators Informing of novelties Easy to use Content needs to be interesting enough to be tagged YouTube: Cisco Launch Investigation Virtual worlds Maintaining customer relationships, brand building Engaging customers effectively Requires lots of resources to maintain, inducing users to participate Cisco Live Virtual 2009: Cisco Live San Francisco 2009 Conference 37 3.2.1 Blogs A blog, an online journal, consists of web-based, chronologically organized entry on a multitude of subjects (Singh et al. 2008). The key in blogs is the interaction between authors and readers: authors write about subjects of interest and invite readers to response to them (Marketing News Staff 2009). There are several types of blogs depending on their purpose. These are informal and personal blogs, informational blogs, corporate blogs and mobile blogs. Companies have to specify the objectives and goals they have for blogs so that they can better evaluate the impacts blogs have. (Singh et al. 2008.) This study will focus on corporate blogs.

Although corporate blogs are written by corporate representatives they should have an individual touch. Individuals trust more in blogs that are written by individual executives or employees than in official corporate blogs (Wyld 2008). According to KnowledgeStorm and Universal McCann (2006) statistics on blogging among technology companies in business-to-business markets in the United States 80 % of the respondents read blogs and 53 % of the respondents agree that content read in blogs has an impact on work-related purchasing situations and over 50 % get business information through blogs. Thus blogs are an important source of information in b-to-b markets. As mentioned earlier the focus of this study is on corporate blogs. There can be identified five different types of corporate blogs: employee, group, executive, promotion and newsletter blogs. Employee blogs are personal blogs. The content and format varies because they are maintained by individual employees. Group blog differs from employee blog in that it is operated by a group of people in the same organization. These blogs usually focus on a specific topic. Executive blog is written by executives in the company. These blogs are useful in creating relationship with stakeholders of the company. Promotional blogs are for promoting the offering of the company. However, promotional blogs are not so trustworthy among customers because the objective is the promotion instead of pure information sharing. Newsletter blogs officially inform about news in the company. Corporate blogs are a useful way to inform about news and new products without being too promotional. 38 (Lee, Hwang & Lee 2006.) Corporate blogs add value to the communication chain both internally and for customer communication. They create communication both

top-down and bottom-up and they foster communication between the marketer and the customer. (Singh et al. 2008.) Blogs can be used different ways in marketing depending on the companys marketing objectives. Singh et al. (2008) have identified different usage profiles of corporate blogs. Blogs are used as marketing communication tools when companies connect with their customers in order to communicate new product ideas and to promote the brand. Limited or passive use companies read others blogs to gather information about them. These companies recognize the value of viral marketing and use the information gathered from blogs as knowledge of customers insights. Tactical companies use blogs as a promotional tool in order to drive traffic to their site. They use corporate-sponsored blogs to increase brand awareness or to communicate about promotional events. The most interactive and integrated usage of blogs have companies which use them as strategic applications. Blogs are used for internal and external communication, customer feedback, market research, new product ideas, competitive intelligence and for promotional efforts. These companies understand that blogging provides them valuable knowledge on customers, markets and competition. A benefit organizations gain when using blogs as a marketing tool is that they get real time information on their customers and markets which help to conduct market research and thus target markets better. Blogs increase brand loyalty and can help on developing product ideas when customers and other readers can comment the ideas. Blogs are also easy to use and the cost of using them is low. Blogs targeted to a specific target market can help to create thought leadership among the industry (Weber 2007, 23). There are also challenges that have to be noticed when using

blogs. The perceived risk can be high because of the open communication. The loss of control of the content in others blogs and comments to ones blog can harm the organization. The risk of creating negative publicity among customers is a challenge of the blogs. Although blogs are easy and inexpensive marketing tool, they require an 39 on-going updating and postings. Thus the organization has to have enough resources committed to blogging. (Singh et al. 2008.) Blogs can create value to the company in six ways. First, blogs provides a new way to stay relevant to companys customers. Second, marketers can use blogs to focus on the changing media. Third, blogs help the company to reach different generations of customers. Fourth, thought leaders use blogs to share information and experiences. Fifth, the global nature of blogs helps to reach customers worldwide. And sixth, blogs being individual helps the company to see themselves from the viewpoint of customers. Blogs as being an interactive channel increases the connectedness with customers. The power of blogs is in sharing opinions, information and knowledge. (Singh et al. 2008.) 3.2.2 Social networks A social network is made of individuals or organizations and includes the ways in which individuals are connected through various social familiarities (Turban, King, McKay, Marshall, Lee & Viehland 2008, 822). Social networks belongs to the category of web-based services that allow individuals to 1) construct a public or semi-public profile within a bounded system, 2) articulate a list of other users with whom they share a connection and 3) view their list of connections and those made by others within the system. Social network sites are organized around people and their connections. Most social network sites are organized around preexisting social

relations. (Boyd & Ellison 2008.) The online social network sites are perceived as actors by users. Users feel like they are communicating with these actors rather than with individuals themselves. (Brown et al. 2007.) Social network characteristics are collaboration, negotiation, communication, interaction and creation. The values are friendship, democratic participation, harnessing collective intelligence, viral promotion, innovation in assembly, pull but not push and cooperation, collaboration, but not control. (Lai & Turban 2008.) In btob context the main goal for social networks is to create new business connections. 40 A business network consists of a group of people that have a commercial relationship. The relationship can be between sellers and buyers, buyers among themselves, buyers and suppliers or between colleagues. These business relationships can be developed and maintained in social media environment. (Turban et al. 2008, 829.) Social networks enable users to communicate with their contacts and show lists of their contacts to others. In business environment these connections can work as peer-communication when business partners can use others as references. (Boyd & Ellison 2008.) In social networks people communicate with their connections through messages, instant messages and blogs, comment each others photos and videos (Boyd & Ellison 2008). Social network sites are used in individual level. People have private profiles in these networks and communication happens on individual level. Challenge is to integrate these personal contacts and communication with business environment. Social network sites have communities inside them. Users can connect themselves and their businesses with these communities. This way they can represent

the company at the same time as they communicate in person. Useful social network sites in business-to-business environment are LinkedIn and Toolbox.com. LinkedIn is a social network site where people connect with their business contacts. Although the communication in LinkedIn, like in other social network sites, happens on a personal level, the contacts are mainly with business acquaintances and can thus be used as recommendations. (Lehtimki et al. 2009, 27.) There is also a group-function in LinkedIn where the users can share information on interesting topics. Companies can set up own groups where they can invite their customers and employees. The group can be used to share information about new products and news of the company. (Pentikinen & Meserve 2009.) Toolbox.com is a network of communities to share and access knowledge. Through Toolbox.com professionals and executives can collaborate with their peers to gain knowledge. (Toolbox.com 2009.) In social networks relationships with both weak and strong ties are maintained. Relationships with weak ties are with acquaintances and with people known in a specific context. Although the relationships may not be very strong or deeply 41 developed they can help to create ideas and innovations. These relationships may be an important source of information. Relationships with strong ties are with people with similar interests and personal relations. Stronger ties increase the reliability of the profile while weaker ties expand the scale and the scope of the network. Thus both relationship types are needed. The frequency of communication reveals whether a relationship is important to the user. (Donath 2008.) For marketing the social networks can be used for target marketing to sub-segments of customers, build brand awareness of the company, establish a forum for dialogue

with customers and to conduct market research. It is possible for a company to create applications and widgets on social networks that customers can add to their personal networking profiles, thus use the peer-to-peer recommendation. (Marketing News Staff 2009.) Other ways a marketer can utilize social networking sites is through advertising. These sites can be used to target the advertising to certain profile information of users. Presence in social networks, own profile of the company, enables to gather relevant business relationships together as well as to monitor what customers think about the company. (Ryan & Jones 2009, 163.) 3.2.3 Communities A virtual community can be defined as a group of individuals or business partners who have a shared interest in which they interact around and the interaction is at least partially supported or mediated by technology and guided by some protocols or norms (Porter 2004). The objective for a community is value creation. Value can be achieved through information content, product generation and sharing within the community and through the existence of a group. (Rowley 2004.) Members become embedded in the virtual community through participation and interaction (Rothaermel & Sugiyama 2001). The communication mainly happens through instant messaging, blogging, voting and newsletters. Reason for companies to join virtual communities is to approach their target markets through communities. Users in communities have similar interests so targeting a group with a certain interest is easy. (Lehtimki et al. 2009, 29 - 30.) What differentiates communities and social 42 networks is that communities are formed through shared interests while social networks gather around people (Boyd & Ellison 2008). There are several different categorizations of communities. Communities can be

divided into transaction-oriented, interest-oriented, fantasy-oriented and relationshiporiented community on the basis of the commerciality of the community. From business-to-business market viewpoint the transaction-oriented communities are of interest. The objective of these communities is to facilitate the purchasing and selling of the products as well as to share information needed in the exchange. (Armstrong & Hagel 1995.) Transaction-oriented communities are formed from members who have a commercial interest and who seek relationship with business partners. These communities are trustworthy commercial and social environments. Individual user needs and community knowledge is contributed by the members of the community. Communities have strong buying power that helps the sellers to extend their offering bases. (Schubert & Ginsburg 2000.) Communities with commercial interests consist of members whose needs are mainly commercial in nature and who use the communities mainly for networking and building business relationships. In transaction-oriented communities the value is created through transactions. The communities are run by the marketers themselves and they create the marketing information themselves. For a transaction-oriented virtual community to evolve successfully it should increasingly take on the role of an intermediary in exchange relationships between community members as well as in exchange relationships between community members, marketers and advertisers. (Kannan, Chang & Whinston 2007, 81, 84, 86.) Attributes of virtual communities are purpose, place, platform, population interaction structure and profit model. The purpose refers to the content of interaction, the place to the extent of technology mediation of interaction, the platform to the design of interaction, the population interaction structure to the pattern of interaction and the

profit model to the return of interaction. Communities tend to lean more to certain attributes than others. In business communication some attributes are more important than others. The purpose of organizations is to provide information about their 43 offerings and develop customer relationships through communities. Although the place does matter, also the assumption here is that the communication happens in a virtual community. The design of interaction refers to the technical solutions of interaction. It is important that the communication is easy and fast to conduct. The population refers to strength of ties between the community members. As mentioned earlier, both strong and weak ties are important in business context (Donath 2008). Communication in social media should result in deeper relationships with customers and to better profit. (Porter 2004.) Benefit for the seller for being present in virtual community is the expansion of its markets. Market expansion happens due to reduced search costs, increased propensity for customers to buy, enhanced ability to target and greater ability to tailor and add value to existing products and services. These factors characterize the virtual community business model. Other factors which affect to the market expansion are factors that are applicable to network environments. These factors are lower capital investment in bricks and mortar, broader geographic reach and disintermediation potential. Other benefits that communities create for marketers are possibility to expand demand for offering, increase viral marketing communication of offering, stimulate customer feedback, generate richer information on customers and markets, eliminate separation of advertising and transactions and allow advertising to be seen as helpful. Challenges on the other hand are that they reduce

emphasis on value of sellers brand, facilitate price comparisons, allow comments to be made on offering in public, not in confidence, increase volume of information to be analyzed and change the rules of advertising and promotion. (Hagel & Armstrong 1997, 10 12, 189.) In business-to-business communication the communities are used to get feedback from and information on customers to be able to improve companys offering and to target marketing activities better (Lehtimki et al. 2009, 30). An example of a business community is the Faceconnecter which connects the Facebook profiles into customer relationship management (CRM) program called Salesforce. The aim is to bring the power of community, trusted online identity and user data on social 44 networking sites to business. The Facebook profiles help to identify the people behind CRM accounts and make the relationship building easier. (Shih 2009, 2.) 3.2.4 Other social media tools Podcasts are digital media files (audio or video) which can be downloaded via internet (Marketing News Staff 2009). Podcasts are capable of synchronizing with a portable multimedia device, like MP3 player or iPod. For marketers podcasting is a simple way to communicate with their target customers. It is easy and fast to use so it answers to the ever-increasing lack of resources in companies. (Shim, Shropshire, Park, Harris & Campbell 2007.) In b-to-b marketing podcasts can be used for informing the customers. For example a company can publish a podcast of an interview on its web sites. (Lehtimki et al. 2009, 22.) Or podcasts can be used to inform customers about new innovations (Weber 2007, 23). According to a study by Forrester Research (2007) 20 % of business-to-business marketers and decisionmakers use podcasts for work-related activities.

Webcast differs from podcast in that webcasting is emanated from the internet and thus requires the user to be connected to the internet while viewing the webcast files (Shim et al. 2007). In marketing webcasts can be used for launching new products, supporting the distribution and informing about products. The benefits the marketer gains in using webcasts include cost savings, real time information sharing and global reach. (Isohookana 2007, 273.) RSS (Really Simple Syndication) feeds are services of different types which give users the freedom to choose and easily access information in sources they find most interesting (Ahlqvist et al. 2008, 31). RSS is a way to syndicate web content through the use of content feeds. RSS enables the users to keep track of updates posted on web. (Tredinnick 2006.) According to KnowledgeStorm and Universal McCann (2006) RSS are somewhat to very familiar to 59 % of business and IT professionals and 31 % of them subscribe RSS feeds. 45 Social bookmarking is bookmarking of favourite web resources and categorizing those using tags on social bookmarking sites. Social bookmarking enables users to access own bookmarks from anywhere and share them with other users. For a company this helps to reinforce its exposure and traffic when visitors bookmark companys web sites. Tagging increases companys perceived relevancy and authority on search engines. One favourite social bookmarking site is delicious.com. (Ryan & Jones 2009, 157 158.) Viral video is a video posted online that is passed along from person to person. Viral videos are peer-to-peer communication method where the video has to be interesting enough for people to share it among their contacts. In marketing viral videos can be used to create brand awareness, pass marketing message and to guide customers to

visit the companys web site. YouTube is the most popular video sharing web site. (Marketing News Staff 2009.) Businesses can use videos also to recruit partners, illustrate a complicated process or service, show video of a facility, demonstrate functionality of a new product or provide detailed and multi-layered information on an entire product line or service offering in order to engage partners and customers. (Madden 2008.) Virtual worlds are computer-generated physical phases which are represented graphically in three dimensions and have many features similar to the real world. The users, so-called avatars, experience the virtual simultaneously in interaction with each other. Not only interaction with other users but also interaction with products and services offered by businesses in virtual world is an important feature. (Lui, Piccoli & Ives 2007.) The users can exchange messages, objects and money virtually (Messinger, Stroulia & Lyons 2008). Virtual worlds provide companies a rich mediated environment that facilitates direct and rich interaction with customers. Virtual worlds inspire creativity and innovativeness and thus work as a playground for innovations. (Kohler, Matzler & Fller 2009.) As the virtual worlds are interactive, collaborative and commercial they have the potential as marketing channels (Barnes 2007). 46 Widget is a small application that provides live updates through a web site or desktop. They are being used to update information on an ongoing basis on interested topics. There are two types of widgets: web widgets appear on web sites, blogs or social network sites and desktop widgets exist on the computer desktop. (Marketing News Staff 2009.) Wiki is software that allows users collaboratively to create, edit, link and organize the content of a website (Deering, Cook, Jonk & Van Hall 2008). Wikis enable

collaborative authoring as the power of editing the content is on users: users can edit the web pages they browse. The challenge is to control the content created by multiple users. (Tredinnick 2006.) The key characteristics for wiki are that it enables web documents to be authored collectively and the content is not reviewed by editors (Wagner 2006). Wikis can be used for interaction and collaboration between customers and inside of the company. Customers can begin to feel ownership and connection with a company that encourages and values their contribution. This in turn may increase the loyalty of customers. Wikis can be used for collective intelligence. Using the knowledge of crowds helps to gather information and enables innovation. (Ryan & Jones 2009, 168 -169.) 3.3 Social media in customer communication The theoretical framework of this study (see Figure 6) is created by combining the theories presented in this study. The theoretical framework includes the relationship development model by Andersen (2001) which is combined to main characteristics of social media. The relationship development stages are explored from the communication viewpoint. The focus is on communication in social media where the characteristics of social media: participation, user-generated content, interaction, transparency and viral marketing, are the foundation for collaborative communication. The objectives set for communication as well as the opportunities and challenges that are associated to social media are studied on each stage of the relationship. Examples of social media tools that could be used for communication are also given. However, it is not recommended to have too prescriptive approach to 47 communication because it could hinder effective communication (Ambrose et al. 2008). Figure 6. The role of social media in customer communication.

At the pre-relationship stage the communication is one-way and planned from the seller side. At this stage the social media can be used to create awareness of the seller company. The audience that is reached through the social media is wider than with traditional communication channels and thus potential customers are reached more effectively. Information search from the potential customers side is easier when the information is available in multiple channels where the customer is also present. Promoting companys offering is as well more effective because the promotion SOCIAL MEDIA Participation User-generated content Interaction Transparency Viral marketing Seller Customers PRE-RELATIONSHIP STAGE Communication task: Create awareness Planned communication Opportunities: Creating brand awareness Reaching market Information search Promotion Challenges: Value of the content in social media Engagement of the seller Communication tools: Blog, social network, community, viral video NEGOTIATION STAGE Communication task: Develop relationship Contact creation Opportunities: Brand building Information

search/sharing Target markets Efficiency in customer communication Facilitate purchase Challenges: Engagement Value of the content Privacy and trust issues Communication tools: Blog, social network, community, podcast, RSS feed, widget, viral video RELATIONSHIP DEVELOPMENT STAGE Communication task: Create mutual value Connectedness Opportunities: Brand building Information sharing Efficiency in customer communication Challenges: Engagement Value of the content Privacy and trust issues Legislation Resources Communication tools: Blog, social network, community, podcast, RSS feed, wiki, widget, virtual world 48 reaches potential customers at medium where the interest already exists. Tools that can be used for planned communication at the pre-relationship stage include social network sites, communities, viral videos and blogs. At the negotiation stage the objective is to start the relationship between the seller and the customer. The communication is more interactive and effective which enables the negotiations of

desired transaction. Customers can easily in social media search and share information and the seller benefits from the social media in brand building. Targeting markets is more effective when the potential customers are gathered around the same interest in social media. Blogs, podcasts, widget and RSS feeds can be used for informing and promoting new products and updates. Social network sites and communities can be used for viral marketing. At the relationship development stage the objective is to create mutual value to both the seller and the customer through interactive communication towards common goals. The social media enables this when the seller can inform the customers about the new products and the customers can share information with each other. The communication is efficient although resources are to be invested to keep the communication constant. Several social media tools can be used for creating mutual value and maintain the constant communication at this stage of the relationship development. Companies can adapt the social media in different ways according to their resources and possibilities to invest. There can be identified five different roles a company can have in the social media: observation, adoption, participation, generation and construction. A company can observe its customers and their preferences by collecting information in blogs and communities. Adopting different social media tools a company can utilize the opportunities that the cross-media synergy of these tools creates (Naik & Raman 2003). By using RSS feeds updates in blogs can easily be shared to those who are interested in company news. Participation in blogs and online conversations enables the companys viewpoint becoming public. This way the company has the chance to react to possible negative feedback fast and publicly.

Content generation and constant updating requires resources, open communication and time from the company. The most challenging role in social media is the construction. A company can create its own social network or community. To be able 49 to succeed in constructing own community and to gain users, the community has to offer real added value to users. (Salmenkivi & Nyman 2007, 286 289.) Communication in social media is interactive and the customers are integrated to the communication process. The channel of the messages plays a big role because it is important to meet the customers where they are. Traditional marketing channels no longer reach customers so actively, thus the seller has to recognize channels where the organizations customers are present. The seller has to find ways to communicate with the customer in individual level but at the same time represent the organization. In order to adopt market orientation, companies must understand not only their customers, but also the environment in which they interact (Hoffman & Novak 1997). 50 4 METHODOLOGY OF THE STUDY This study is a qualitative research which was conducted with concept analysis and action-oriented approaches. The qualitative research and the used research approaches as well as the collection and analysis of data used in this study will be introduced next. 4.1 Qualitative research Burrell and Morgan (1979, 1 - 2) claim that science can be effectively characterized through four sets of assumptions related to ontology, epistemology, human nature and methodology. Ontology includes assumptions of the nature of the focal phenomena, epistemology the nature of knowledge of those phenomena, human

nature the nature of man and relationships between human beings and methodology the nature of ways studying those phenomena. All these assumptions can be associated and have implications to each other. There can be found two major paradigms in science: positivistic and hermeneutic tradition. The positivistic research tradition concentrates on description and explanation with the aim to generalize. Quantitative research methodology is often used in positivistic studies and the approach is deductive. More suitable research tradition in marketing research is the hermeneutic tradition. Hermeneutic tradition uses a personal interpretative process to understand the reality. The approach is usually inductive and can be subjective. Qualitative research methods and language have a central role in hermeneutic studies. The researcher in hermeneutic research is a part of the action. A paradigm consists of the researchers perception of what are the interesting research problems and which methodological approach should be used to solve the problem. (Gummesson 2000, 18, 177 179.) This research has hermeneutic approach as it tries to understand the reality of the studied phenomenon. The qualitative research is chosen in order to gain a holistic picture of the role of social media in customer communication. Qualitative research method was chosen for this study because qualitative research is conducted through contact with 51 everyday life of individuals and organizations. The general nature of qualitative data is that it is based on words, either through observation, interviews or documents. (Miles & Huberman 1994, 6, 9.) The everyday life of the researched topic comes relevant in empirical study where the real use of social media tools in communication in organisations operating in business-to-business markets is explored.

There are three different research designs. In exploratory research the major emphasis is on the discovery of ideas and insights. An exploratory research is appropriate research design in topics that are little researched. An exploratory research is used for studies focusing on formulating a problem for more accurate investigation, developing hypotheses in quantitative studies, establishing priorities, gathering information about the practical problems, increasing the analysts familiarity with the problem and clarifying concepts. A descriptive research is used to describe the characteristics of certain groups, to estimate the proportion of people in a specified population who behave in a certain way or to make specific predictions. Descriptive research answers to questions to who, what, when, where, why and how. Causal research studies the cause-and-effect relationships. A causal research aims to determine causal relationships through concomitant variation, time order of occurrence of variables and by eliminating other possible sources of explanation. The research problem determines which research design is the most appropriate although different designs are not mutually exclusive. (Churchill 1996, 114 115, 118, 138, 164.) This study is primary descriptive as it tries to describe the characteristics of the studied phenomenon. But it could also be characterized as an exploratory research because of the novelty of the studied phenomenon. The study tries to discover insights about the use of social media in communication which emphasizes the exploratory nature of the research. The objective of a study of marketing is to develop theories that fit certain contexts and viewpoints. A research is always bound to its context. An academic research should be theoretical which refers to that empirical data and findings are based on

previous theories. The theory concerning the research topic can be either deductive or inductive according to the order it is composed. This way the theory and the 52 empirical study are combined together. (Panula 2000, 91 94.) There are three research logics that connect theory and data: deductive, inductive and abductive logic. In deductive logic there is a logical connection between the hypotheses and a previous theoretical assumption. The deductive approach highlights the importance of the theory and suits for researchers who use the existing theory in their theory development. In inductive logic hypotheses are formed according to empirical generalizations. Pure inductive approach is used when founding a new theory. The abduction is based on the notion that there are no a priori hypotheses, no presuppositions and no theorizing in advance. (Perry 1998; Levin-Rozalis 2004.) The research process of this study begun by getting acquainted with the empirical data. Then the theoretical part of this study was framed and theoretical framework outlined. Although this happened before more accurate analysis of the empirical part, this study has an abductive approach. Thus the theory and empirical data were partly analysed simultaneously. The theoretical part of this study uses concept analysis as a research strategy in order to understand the concepts used in the research. Concept analysis is a non-empirical research method which can be used as a basis for the empirical research. Concept analysis helps to understand the meanings and features of the studied concepts. (Puusa 2008.) The empirical part of this study is conducted with actionoriented approach. The objective of an action-oriented approach is to understand the studied phenomenon. The empirical study is conducted through few objects. The findings

made are often concepts in different levels which help to analyze the phenomenon. (Neilimo & Nsi 1980, 35.) The action-oriented approach aims to achieve an understanding of the behaviour of the people in real-world organizations thus this approach is empirical (Pihlanto 1994). The empirical part of this study is practically oriented in order to help the management in business-to-business markets to develop their customer relationships through communication in social media. Furthermore the aim is to give managerial implications which help the management to understand the opportunities and challenges that relates to communication in social media. The objective of using these two research approaches is to triangulate the concept analysis made in the theoretical part with the empirical study. The methodological 53 choices made on this research are collected together (see Figure 7). The choices made among all the presented alternatives are highlighted. Figure 7. The methodological choices of this research. 4.2 Data collection The majority of researchers in business studies need to collect primary data to answer their research questions. The choice of data collection depends on an overall judgement on which type of data suits best for the particular research problem. Data is gathered in order to obtain information of importance for the research problem. The measurement procedures used in gathering of the data have an effect to the quality of the information. (Ghauri & Grnhaug 2005, 75, 108.) Communication refers to data collection by asking those who have experiences of a particular problem to explain it to the researcher. Interview is one main way to collect data through communication in interaction between the researcher and the respondent. The purpose of data collection through interviews is to obtain valid

information from the most appropriate respondents. (Ghauri & Grnhaug 2005, 123.) The primary data used in the empirical part of this study was collected with semiConcept analysis Positivistic Qualitative Quantitative Hermeneutic Action-oriented Exploratory Descriptive Causal Deductive Abductive Inductive 54 structured interviews by telephone. In semi-structured interviews the topics to be covered, people to be interviewed and the questions to be asked are predetermined (Ghauri & Grnhaug 2005, 132). The interviews were collected in several industrial companies operating in Finland as well as interviews with Finnish experts on digital marketing and social media. Together there were conducted ten interviews where six respondents represented marketing department in Finnish industrial companies and four respondents represented expertise on social media in Finland. The interviews were divided into company and expert interviews on the basis of the experience of the interviewees on digital marketing. The company interviewees work in marketing departments and generally have little or some experience on social media. The experts have been working and researching social media for a longer period of time. The interviews were recorded, transcript and relevant parts of the interviews were used in data analysis stage. The interviews as well as the framework for the interviews are appendices to the research (see Appendix 1 and 2). The respondents to the interviews were chosen on the basis of their assignments on the company. They represent the marketing departments and have some experience in digital marketing. Industrial companies operating in global markets were chosen in

order to create an understanding of the role and usage of the social media in industrial markets where the customer relationships are important due to the complexity of offerings and the amount of investments and resources invested in purchasing. The communication is important at every stage of the relationship in order to develop a relationship that adds value for both parties. Expertise interviews were conducted in order to get insights of the possibilities the social media creates for communication. The amount of interviews was determined to ten because the data collected seemed to follow the recommendation of saturation. There are similarities to be found in the company interviews concerning the understanding and usage of social media in communication. The expert interviews bring new insights to studied phenomenon and it can be criticized whether additional experts should have been interviewed in order to get more ideas. 55 As the primary data was limited to six company interviews among Finnish industrial companies and four expert interviews, there were also used secondary data in the empirical study. The secondary data was gathered from the Digimarketing Barometer (Pohto 2009) and the gallup for chief information officers (CIO) in Finnish companies (CIO 2009). The secondary data is used to triangulate the findings made from the primary data. Triangulation improves the accuracy of judgements and results by collecting different kinds of data of the same phenomenon (Ghauri & Grnhaug 2005, 221). 4.3 Data analysis The analytical procedure consists of techniques to conceptualize and analyze the data to result in theories and findings (Ghauri & Grnhaug 2005, 111). Data analysis consists of four simultaneous activities: data reduction, data display, conclusion

drawing and verification. Data reduction is the process of selecting, focusing, simplifying, abstracting and transforming the data that appear in writing up field notes or transcriptions. In the data reduction stage the researcher creates categories and identifies themes and patterns in collected data. The second analysis activity is the data display. It is an organized and compressed assembly of information that permits drawing conclusions from the data. Conclusion drawing and verification is the third analysis activity. The analysis about meanings in the data starts already from the data collection. The researcher should maintain openness and keep the conclusions lightly at first. Conclusions should be verified as the analyst proceeds. Verification means that the meanings emerging from the data have to be tested for their credibility and validity. These activities occur simultaneously and it is a continuous process. The reduction of data by coding it can lead to new ideas to data display which then requires more reduction. Preliminary conclusions can be drawn and test as the display starts to form up. (Miles & Huberman 1994, 10 12.) Coding the collected data means that the researcher systematically codes the content of the data by themes. The codes can be based on the data collected or they can be based on previous research and theory. If the researcher creates the codes from the data, the 56 data should be explored first in order to outline the content of the data. Also the theory based analysis requires an understanding of the theory. (Eriksson & Koistinen 2005, 31.) In this empirical study the data and theory based analyses were combined. The empirical study was conducted according to above mentioned activities: data reduction, data display, conclusion drawing and verification (see figure 8). The

collected data was analysed with QSR NVivo 8 -analysis program which is a useful program in analysing qualitative data. The analysis program helps to organize the data and conceptualize the research topic which is the objective in qualitative research (Luomanen & Rsnen 2008, 23). The data collected with semistructured telephone interviews was transcript and the transcript data was read through at the beginning of the research process. The reason to become acquainted with the primary data was to outline the content of the collected data and to develop a preliminary idea of the main themes. This preliminary outline of the content of the empirical data was the basis for the theoretical part which was then primary formed from the previous research made of the topic. The formed theoretical framework was used in data reduction which included reading through the transcript interviews several times to recognize themes from the data. In data display stage the content was coded and analyzed according to outlined themes. Conclusions were drawn from the empirical data and the conclusions are verified in the evaluation of the study. 57 Figure 8. The research process (adapted from Miles & Hubermann 1994, 10 - 12). Data collection: 6 company interviews, 4 expertise interviews Data reduction: Categorizing of the interviews and identifying themes Verification: Limitations, validity and reliability of the study Data display: Marketing communication Characteristics, opportunities, challenges of social media Social media in relationship development Use of social media in b-to-b Conclusions drawing: Theoretical conclusions, managerial implications 58 5 SOCIAL MEDIA IN BUSINESS-TO-BUSINESS COMMUNICATION

The empirical part of this study will be presented next. On the basis of the theory developed about the role of social media in customer communication in business-tobusiness markets the empirical data is analyzed next. The analysis concentrates on finding similarities and differences in empirical data compared to the theory. The frame (see Figure 6) formed earlier in this study is used in analysis. 5.1 Presentation of the empirical study The study is part of the Deccmac-project which is an academic research project on sales and marketing communication in Finland (Deccmac 2009). The empirical data of this study was collected with interviews. The data includes six interviews with representatives in Finnish companies operating in industrial markets. There were also conducted four interviews with Finnish experts on social media. The participating interviewees as well as the companies they represent are kept anonymous. Therefore they are only referred as companies or experts in the text. The opinions of the interviewees are referred as representation of companies operating in industrial markets in Finland. The idea is to frame a picture of the role of social media in customer communication in Finnish industrial companies. The expertise interviewees are used for recognizing the opportunities the social media creates for communication. The themes emerged both from the theory and the collected data focus on marketing communication, characteristics the social media has as communication medium, opportunities and challenges the social media has on communication, the use of the social media at different stages of relationship development and the use of different social media tools in business-to-business communication (see figure 9). Data about these themes is analyzed next. 59 Figure 9. Themes used in NVivo data analysis. 5.2 Characteristics of social media as a communication medium

The most important marketing communication channel in companies operating in business-to-business markets seems to be the personal, direct contacts with customers. It is recognized that the web is an important communication channel and its importance has increased in past years. But traditional marketing communication channels like fairs, newsletters and catalogues are still important in business-tobusiness markets. Customers needs have to be the basis of all communication in order to reach the targeted customers. Thus the communication in social media has to be emanated from customer needs. Expert interviews Company interviews Social media in relationship development Negotiation stage Pre-relationship stage Relationship development stage Use of social media in b-to-b Examples of b-to-b campaigns Planned tools Used tools Challenges of social media Characteristics of social media Opportunities of social media 60 The characteristics of social media according to interviews include transparency and openness. Transparency and company interface are increased as is the visibility of company values. The fact that the communication in social media happens on a personal, individual level and with ones own name, makes the media more

transparent. The dynamics of the communication change and the mobility increases the importance of location: time and place of the users are at all times to be recognized and the response time decreases. Different stakeholders (customers, suppliers) will have their own communities for communication. Social networks will substantially change the business operations due to increased transparency of company interfaces. The dynamics of the communication will change because time and place lose their importance. (Expert interview.) The community and interactivity are mentioned to be the key characteristics of the social media. Customers are co-creators of content and communicate with each other and with the company in different social media applications. Companies offer expertise and the customers give feedback to them. Customers can also be experts of the offerings of the company via sharing information on blogs and wikis. Interaction with customers and direct feedback changes the dynamics of the communication from one-way to two-way communication. The participation in social media is based on voluntariness and sharing of information is easier when the communication is two-way. Web as a platform, in using the web to create interaction and usergenerated content, stops being simple push and starts to be something a bit more interactive (Company interview). It can be seen from the empirical data that the expert interviewees emphasize the importance of openness and transparency the social media increases. The company interviewees focus more on the user-generated content and the interactivity of social media. Characteristics of social media found in the empirical study are drawn together in table 5. 61 Table 5. Characteristics of social media as a communication medium. Characteristics

Transparency User-generated content Openness Participation Interaction Community 5.3 Opportunities the social media creates for communication in b-to-b context The biggest opportunity the social media creates is that business operations can be handled more effectively. The communication with clients becomes more frequent and faster and the clientele becomes more controllable. Companies save time and other resources when the business relationships can be nurtured simultaneously with several customers in the same forum. Complex business relationships still need more traditional communication methods like face-to-face meetings but relationships can also be maintained more casually and continuously with social media tools. The networking is one main advantage. It is easy to connect with customers and business partners in social networks and communities. The signals we have on social networks from the consumer markets, consumers participating to product development and decision-making, the same will come to b-to-b markets and it should be easier there (Expert interview). The viral marketing is recognized as one big opportunity of the communication in social media. Content generated by other companies and ones peers increase the trust on communication content. Also recommendations from ones peers are experienced as an effective way to create brand awareness. Viral marketing can be used to get the customers to offer on the behalf of the company. Also the fact that the environment is more casual, bringing out own opinions is easy. The communication in social media happens on a personal level with own name and profile which personify the employees more and thus bring them closer to the customer. In b-to-b markets specialists in some industry could recommend products related to their work to each other (Expert interview).

62 The communication happening on social media is based on voluntary participation and happens on a dialogue between partners. Due to the interaction the content of the communication reaches the target better. The key feature of social media, openness, increases the trust on information shared as well as the corporateneutral content created by users. People trust more on information shared by their peers than information coming from the company, which is usually regarded as an advertisement. The transparency creates opportunities for the company to communicate their company values and social responsibility to the audience. Opinion leaders of the industry should contribute to blogs in order to influence on attitudes of the customers. Blogs would enable fast marketing which is interesting. In blogs people share their own opinions and it is more informal. This means that the marketing doesnt have to be so finished. (Company interview.) Implementing social media tools to communication widens the audience for company communication. Reaching the potential customers is more effective digitally through social media than using traditional methods for communication. The social media enables not only to reach the business customers but also consumer customers. Depending on the offering of the company the target market may increase immensely. Being present at all times is a requirement for constantly developing and globalizing business environment. Also tailoring the communication depending on the customer helps to target the message more effectively. Business operations will change from the viewpoint of b-to-b; the c will come to their as well. Normally you wont get there if you are at the end of a long chain. (Expert interview.) Tele-presence enables contacting and searching for information regardless of time and place. A company can use a portal where it is easy not just to find contact

information, but also see calendar to business partners as well as to communicate with instant messaging. When all these activities are gathered under the same portal, the communication will be easier and faster. This is especially useful in internal communication. Generally the findability increases when the company is present in 63 several mediums. Although the location in customer communication in business-tobusiness environment does not have such a big role than in business-to-consumer environment, location could be utilized in campaigns. It is a quite effective combination to combine information search, personal contact, availability and calendar together (Expert interview). From the technological viewpoint the benefits are the economic efficiency to implement and experiment several tools in reality. Usability of social media tools is good and the technology is easy to adopt. Also the visual aspects make the medium more attractive and interesting when there are possibilities to add audio and video to communication. The upgrading of information is made easily as well as the measurement of the contacts. Social media tools are fast and safe environment to communicate easily with targeted customer groups. The quickness comes also obvious on customer response. There are portals where the customer can send questions and feedback to company and the correct person receives the message automatically and can respond to it quickly. There is no time wasted on forwarding the message to different people. There is also a chance to react fast to customer comments and complaints if one follows different forums continuously. From the viewpoint of generating sales the opportunities are not yet recognized. The sales promotion is seen more as a short-term opportunity. One opportunity the social media could be used for more direct sales activity is to create mini web sites for

marketing campaigns. The interactivity of social media could be utilized in advertisement by linking an ad and adding an online shop which would encourage to purchasing. This way the ordering process could be integrated to marketing communication. Different tools mentioned for creating opportunities for companies were blogs, communities (LinkedIn, Facebook and Jaiku), online magazines, wikis, extranet and search engine optimization. Wikis are a great thing in that we can create content to them and that way profile ourselves as experts and bring out our know-how and create content in the channel which is not ours. When it is not at our website but in some neutral source, increases the reliability. (Company interview.) 64 It seems that the recognized opportunities from company interviews concern brand building and awareness as well as the efficiency in business operations and internal communication. Besides these the experts acknowledge the opportunities of viral marketing and using peer-to-peer communication. The possibilities of information sharing and innovativeness are also recognized by the experts. Table 6 draws together the opportunities the social media creates for communication according to interviews. Table 6. Opportunities the social media creates for communication. Opportunities Efficiency in business communication Targeting markets Viral marketing Information search, findability Wider audience Technological aspects 5.4 Challenges the social media creates for communication in bto-b context There are recognized several challenges and threats in using the social media in communication. The greatest challenge seems to be the uncontrollability of social media. It is not totally understood what the concept social media means and how it could be utilized in customer communication. There are so many alternative tools

and applications to choose among that it is difficult for companies to recognize which tools would benefit them the most. There even seems to be a belief that when the novelty value of social media fades the use of traditional media will increase on the contrary. It is difficult to find the best way to reach the decisionmakers and investors in companies through social media. Although reaching the target market is easier, a direct contact to decision-makers and investors is more difficult. Marketing communication message, especially toward the decisionmakers of investments is the most difficult thing. They dont read our customer magazine much less spam-mails because those deals are made on sauna. (Company interview.) Generally the challenges connected to social media concern the differences in business-to-business markets compared to business-to-consumer markets. The social 65 media is more utilized in consumer markets than in business markets. It is still not recognized how the social media tools could be used as effectively in business markets as they are utilized in consumer markets. For example entertaining videos in YouTube reach millions of viewers and increase the brand awareness. In more traditional b-to-b environment the entertainment aspect is some doubtful for generating actual sales. It is reasonable to wonder whether formal presentation videos fit to YouTube. Also the use of incentives in consumer markets is not directly adaptable to business customers. The industry in question affects on the choice of communication channels. Digital products and services are much easier to market in digital channels than traditional products and services. The target market is much smaller in business marketing thus finding the potential customers through social

media tools is more difficult. Also the importance of personal selling decreases the power of social media. Users of social media are committed in a personal level. There is a concern whether the communality is so high also in business communication. Benchmarking from consumer marketing can however be useful in order to adapt social media tools to business communication. In b-to-b marketing we dont know how to utilize the social media and I myself havent figured out the right ways to utilize it. The challenge is how to implement the good things from b-to-c marketing into b-to-b world. (Company interview.) Supporting findings are found in the Digimarketing Barometer. The barometer is a study among 295 Finnish marketers about their usage of digital marketing channels in 2008 and intentions to use them in 2009. According to the barometer companies operating on business-to-consumer markets use digital marketing channels more than business-to-business companies and the difference is increasing. There seems to be a belief that business-to-business companies do not quite understand how to utilize social media and they believe that the consumer markets benefits from these channels more. (Pohto 2009.) Another aspect is the Finnish business culture and structure where it is hard to be open-minded and innovative especially in public companies. The Finnish businesstobusiness culture is traditional and has a high barrier to implement social media 66 tools. The updating of information and customer communication has to be continuous so it requires resource commitment from the company. The communication happens on a personal level so ones own personal opinions are connected to a company brand. It is therefore important to control the brand and the content written about the company in different social media forums. The company type plays a bigger role: the business culture, age distribution and attitudes, the resistance for change and things like these.

The company profile has bigger implication than the industry. (Expert interview.) Also the technical aspects, mainly security issues are of concern. The technical challenges concern the resources required for constant updating and controlling. The updating of information also means that old, important information may disappear with updates. Also the security issues concerning the increased transparency in business secrets increases the barrier to use the social media. Interviewees in this study represent multinational companies thus the language issues as well as the technological development are of concern. The language in social media usually is English which widens the audience of the communication but at the same time may hinder the usage. The technological level is different globally so the use of different visual and multimedia files may not be the best way to reach customers in less technologically developed countries. The amount of spam has increased and the information is more dispersed so it is difficult to stand out from the flood of all digital information. There also seems to be doubts about the truth of statistics concerning the use and targeting of social media. Although it is recognized that measurement is easier in digital channels there are still doubts about it. Also there is a lack of evidence that the use of social media would increase sales. In b-to-b world we are in an initial stage in social media because of business structures and we are afraid of the security issues, information security and business secrets and all this so it slows the usage down of course (Expert interview). The privacy issue affects both the customers and the marketer. Customers have to give their permission to use the content that refers to them. Especially in industrial 67 markets the products could be big manufacturing devices which are tailored for customers. Using pictures or videos of those products has to be approved by

customers. Add to that the network of the company can set up some restraints for openness. Privacy of the user and the company worries also. People represent themselves in social media so there should be policies in what can be said about the company in a private forum. The open and transparent information thus brings also threats to communication. There is a fear that the company image may be harmed when both employees and customers can openly express their opinions about the company. The question is how the diffusion of negative information can be stopped. The engagement of customers in communication is important. The need to use social media should be generated from customers and the company itself instead of company feeling forced to use the social media in communication because everyone else does. The main issue the companies should focus on is how to turn the threats to opportunities. According to the company interviews it seems that the challenges of social media concern the uncontrollability of the media. It is not understood how the social media could be utilized in customer communication and how the information overload could be controlled. Resource investments due to engagement to the communication are concerning the companies as well. The information should be updated at all times and available in multiple channels which requires resources. Both company and expert interviewees recognize the challenges in business markets compared to consumer markets. The experts recognized the challenges created by the traditional Finnish business culture as well. Table 7 draws together the challenges the social media has for communication in business-to-business context according to this study. Table 7. Challenges the social media creates for communication. Challenges Understanding the role of

social media in communication Business-to-business vs. business-to-consumer context Uncontrollability Privacy issues Finnish business culture Technical challenges 68 5.5 Social media in relationship building The use of social media in customer communication depends on the objectives that are set for communication. Whether the company tries to reach new potential customers (pre-relationship stage), existing customers (negotiation stage) or to integrate the customers more to the operations (relationship development stage) determines how the social media can be utilized. It seems that the social media is used for maintaining and developing customer relationships. The link for directly generating more sales is not recognized. In customer relationship development an important feature of the social media is the value-added services. Communities and interaction add value to the customers which hopefully develops the customer relationship. User-generated content on blogs and writings about the company and its products increase the amount of information available. Sharing this information among users adds value and potentially leads to stronger customer relationships. Also the possibility to inform important customers about the new products in beforehand affects the customer relationship. In b-to-b there are value-added services, which create collectivism and add value, which may turn into sales. These services increase the customer service so customers will be customers longer. (Expert interview.) The objective of the communication at the pre-relationship stage is to create awareness of the company. It seems that the web pages of companies are an important marketing channel for potential customers. Advertising in other channels is used to guide potential customers to web pages to look for more information and to

get to know the company. The most popular tool that is used to create awareness among potential customers is videos. Especially in YouTube the peer-topeer communication works as a recommendation and a company can increase the brand awareness with videos. Search engine optimization and general presence in web guides customers to web sites. This is referred as an inbound marketing: to be available to potential customers. It is also easier to contact the potential customers when they have some preliminary information about the company. 69 The role of the web is big to potential customers who we dont know yet but who could be our customers. The inbound role: that the potential customer finds us when looking for us. (Expert interview.) At the next stage of the relationship building, the negotiation stage, the aim is to communicate with customers who already know the company and have the interest to do business with it. They are not yet existing customers but have plans to become ones. The objective in business-to-business markets is not to make direct sales through social media but to communicate through these channels is more of a prenegotiation: to get to know the business partner which hopefully will lead to sales. The communication can be more outgoing at this stage: direct e-mails could be used at this stage. The social media enables more accurate communication with customers than the traditional channels like fairs. Business partners can get to know each other better beforehand when the company information is available in digital channels. The benefit is that when we contact the customer this way, the customer already has interest in it and we can give more accurate information than through traditional advertising or during a short visit at a fair stand (Company interview). At the relationship development stage the social media makes the management of

customer and supplier interfaces easier and the communication more transparent. Company should together with its customers plan who are communicating and how they are communicating. The communication should be developed from customer needs. Communication in social media is more relaxed and more modern way to keep up the constant communication with customers. In b-to-b markets the customerships are big and complex so constant interaction is required. Traditional faceto-face meetings and telephone calls are used to maintain the relationships. We can in a more relaxed environment keep up the communication and maintain the customer relationship (Expert interview). Extranet seems to be an alternative tool to develop relationships in companies. Customers can log in and search for information in extranets. Extranet can also be used for service instructions and product catalogues. Customers can be divided into 70 groups so that the information a certain customer is looking for is easily found. Customer communities can also be used to develop the customer relationships. To safely put in extranet behind passwords service instructions, product catalogues and information which serve certain type of customers (Company interview). At the pre-relationship stage the social media is important. The image building and creating awareness among potential customers can be done with social media tools like blogs and search engines. The actual negotiation of sales in b-to-b still seems to happen on face-to-face meetings. The digital medium is used more as a prenegotiation channel: to get to know the business partner one plans to deal with. At the relationship development stage the social media makes the communication faster and more unplanned. The communication is more informal and constant which helps to maintain the relationship. Communication media used in different stages of

relationship development process is introduced in table 8. Table 8. Communication media in different stages of relationship development process. Pre-relationship stage Negotiation stage Relationship development stage web sites face-to-face face-to-face search engines direct e-mails extranet portals widgets social networks blogs communities 5.6 Utilization of social media tools in communication It seems still that the social media tools are not widely used in communication in the b-to-b environment. As mentioned earlier the problem may be that the opportunities it creates as well as the choice of tools among all of them is difficult to outline. It is recognized that the social media tools are useful in support functions and after sales functions. Especially recruitment and customer training are functions which benefit from doing them digitally. Training through video conferences or by video posted on a website is more profitable than arranging a physical training meeting for engineers from different countries. The possibility to replicate the training digitally is an opportunity. 71 Media is present in everything, with one log in all own things are accessible, more like portals where the content is brought from different channels and databases and in different forms and one can personify it(Company interview). Social media tools that already are utilized in companies include social network sites, RSS feeds and videos. From more traditional web tools extranet, intranet, search engine optimization, white papers, image bank, e-newsletters and banner advertisement were mentioned. From social network sites companies have founded own groups in Facebook, where the employees can join in. Also LinkedIn is used for networking with business partners. These social network sites are used as an informal communication medium among employees and business partners. LinkedIn is used

more for actual networking and references. Also direct industry forums are being used to get the latest information about the news in the industry. As the companies recognize that the role of digital channels in communication is increasing they have plans to implement social media tools in their communication. Some companies already have concrete plans to start a corporate blog. However, there are also doubts whether a blog really is useful. Other plans that the companies have for social media are direct feedback channels and discussion forums. Different communities could be used for recommendation and comparison between companies. There was also an interesting idea mentioned about the customer communities. The Bluetooth technology could be used in order to recognize the members of your own community in a same physical place. This could be used in fairs and company events where the potential customers could be recognized and contacted. Communities could also be used for information sharing and public relations. Also the use of widgets for orders and micro blogging services like Jaiku and Twitter were mentioned as tools which could be implemented in the future. The most popular social media tool seems to be video sharing site YouTube. It was referred to in many interviews and example videos were mentioned. For example in business-to-business market the video of Epuron was mentioned as well as Polar Electro. Companies are 72 planning on putting videos to YouTube however there are doubts about whether the humour is as appropriate in business markets as in consumer markets. Popular videos in YouTube are usually amusing and are based on humour. There was also mentioned the possibility to create video technology like YouTube on companys

own web site. Company could post presentation and training videos on their own sites where customers could find those. Another interesting idea was to create an own Wikipedia about the company. This so called companypedia would have the latest news and technologies of the industry. It would be like an encyclopaedia of the industry. The Wikipedia as a channel to share correct information about the industry and the technology was seen as an opportunity. The companies interviewed were operating in industrial markets so the technology aspect of their products is high. It seems that the companies recognize the benefits of social media in customer communication but they are more willing to implement it internally. Internal blogs and social bookmarks as well as instant messaging among employees are seen as a possibility to be more effective. Generally there seems to be a need and will to start to figure out how the social media could be utilized and how it could be measured and followed. Not only to eliminate the negative sides but also to think what is the benefits of this and where we are pursuing whit it (Expert interview). Many companies would like to find a direct channel for feedback from their customers. Customer feedback sites getsatisfaction.com and uservoice.com were mentioned to be sites where a customer and a company meet in order to make things better for both parties. There comes new generation to business constantly that is used to live in a virtual world and on the web. I believe they will utilize these tools differently and will in the future, when they enter the business world, bring those tools with them. (Company interview.) There are examples of successful use of the social media tools in business-tobusiness market. YouTube is used by Oracle for the Who caught John Blade73

video, Intel has used SecondLife for product launch, Sun the virtual world, Cisco has used wikis for open innovation and in Finland the Fonecta has utilized the crossmedia synergy in their campaigns. According to a survey by the International Association of Business Communicators among business communicators in the United States only 40 % of them use social media tools at work. Although social media tools are widely used at home the use has not been expanded to work environment. The survey also supports findings that small companies adopt the use of social media more easily than big companies. This is due to cultural elements. (Williams & Williams 2008.) A gallup (CIO 2009) made to CIOs in several Finnish companies supports the empirical data of this study. According to the gallup the social media is not yet widely used for business or marketing activities. Generally social media tools are recognized to be a useful communication and marketing medium and there is an interest in using them. Companies are mapping the opportunities to use them and there are plans to use them in marketing. However, there is not much experience in Finnish companies in using social media tools so some caution can be observed in implementation of these tools. 74 6 CONCLUSIONS The objective of this study is to explore the role of social media in customer communication in business-to-business markets. The research questions that were used to find answers to the topic included one main research question and three subquestions. The main research question was: What is the role of social media in customer communication in business-to-business markets? Sub-questions explored the characteristics, opportunities and challenges of social media. The relationship development viewpoint was taken into communication due

to the importance of relationships in business-to-business markets. The sub-questions were: What kind of characteristics the social media has as a communication medium? What kind of opportunities and challenges the social media induces for communication? How the social media can be utilized in current customer relationships and with potential customers? This chapter will present the main findings of this study and answers to the research questions. Theoretical conclusions are drawn to give insights of the role of social media in customer communication from the theoretical viewpoint. Features that have an effect as well as the relationship between these features are considered. Managerial implications are given in order for the seller organizations in business-tobusiness markets to evaluate the opportunities and challenges of social media for customer communication. The study evaluation and future research topics can be found at the end of this chapter. 75 6.1 Theoretical conclusions A complete theory should be composed of description and explanation. A theory consists of elements which answer to questions what, how and why. Relationships between relevant factors are the domain of the theory. What, describes the factors effecting to phenomenon and how, the relationships between the factors. Why, again explains the selection of factors and the relationships between them. The theoretical framework generated from previous elements can be tested by questions of who, where and when. These conditions can either support or constrict the theory. (Whetten 1989.) This research studied a topic that is still novel but popular in the field of digital marketing. Researches done on social media can be found, however the academic

research is still inadequate especially in business-to-business context. The aim of this study was to contribute to the research of social media from the customer communication viewpoint. The relationship model has been used in communication research previously (Andersen 2001, Ambrose et al. 2008) but combining the relationship model in social media communication is supposedly new. The contribution of this research was thus to explore the role of social media at different relationship development stages in order to recognize the opportunities the social media creates but at the same time to be aware of the challenges connected to the communication in social media. Social media has changed the way people communicate with each other. Traditional business communication requires time and place to keep in touch with ones business partners. Social media applications are designed for more of an ad hoc communication and with new modes of interaction. (Shih 2009, 45 46.) The communication in the social media generally happens on an individual level so the organizations have to evaluate how individual, personal level can be integrated to corporate communication in a trustworthy way. The main question in social media is how to get the people to involve in and to create value to themselves and to the company. 76 The use of social media in customer communication in business-tobusiness markets enables efficient and continuous communication that helps to maintain and develop relationships with customers. Customers become co-creators of the content in social media and they voluntarily participate in communication. The customer engagement creates opportunities compared to traditional marketing communication which often is planned one-way communication from the marketers side. The communication in

social media is more informal and continuous. The features of social media: openness, peering, sharing, global action (Tapscott & Williams 2008, 20 - 30), increase the amount of information available and the transparency, trust in available information as it is shared among peers and access to information on global markets and actors. Customers as co-producers of content in social media help the organization to gather information on customer needs and ideas for product development. The characteristics of social media increase the transparency of the parties which in turn may increase the trust in a relationship. Trust in business relationships is important because the purchases often require massive investments and resources. Viral marketing and information shared among peers also increases the trust as people trust more for information generated from peers than seller companies. Independence of time and place for communication in social media widens the potential market of the company to global. The main characteristics of the social media which come out on the empirical data analysis of this study are transparency, openness, interactive communication, community, participation and user-generated content. These characteristics were also found in the theoretical part (Singh et al. 2008; Solomon & Schrum 2007, 24; Tapscott & Williams 2008, 20). Social media tools create opportunities to reach wider audience and create new business connections. Social media sites are very attractive environment in which to conduct business in. Audience is wide and the targeting is easier when people are gathered around the same interest in different communities and groups within them. The objective in social media has become to collaborate and interact with customers. 77

Opportunities that benefit communication in social media apply to efficiency in business communication which in turn develops the customer relationships. Viral marketing is one feature which widens the audience for communication in social media and is one of the most important opportunity that social media creates (De Bruyn & Lilien 2008; Brown et al. 2007). Targeting markets is easier because users are profiled according to their interests and references. Reaching wider audience and targeting markets more effectively increases the brand awareness and helps with brand building (Weber 2007, 23 24). Tele-presence makes information search and findability of a company easier (Salmenkivi & Nyman 2007, 278 286). Technological opportunities concern effectiveness, usability and measurement of the contacts. Challenging in social media communication is that the contacts may be with people one never have met offline. Thus the credibility of the information in online has to be evaluated on other basis than with offline relationships. Understanding the possibilities and the extension of social media is the biggest challenge to the sellers. A challenge that seller companies also should recognize when communicating in social media, concerns the uncontrollability of the media. Users can openly write their comments and the marketer cannot prevent that. The differences in b-to-b markets, compared to b-to-c markets where the social media seems to be more used, are of concern. Business culture in traditional b-to-b markets in Finland combined to threats of privacy issues hinders the implementation of social media. The traditional business culture and stickiness of old habits were also recognized in theory as challenges of social media (Ahlqvist et al. 2008, 29, 33; Kangas et al. 2007, 57). There are also technical aspects which include privacy and trust issues as well as the

measurement of the effectiveness of social media. The engagement both from the seller side but also from the customer side is a challenge that is related to the social media (Creese 2007). From the relationship development viewpoint it seems that the traditional communication methods like face-to-face meetings and telephone are still important in b-to-b markets at all stages of the relationship development. However, there were 78 also found social media tools which may be helpful. At the prerelationship stage social media tools increase the brand awareness and help to reach wider audience. Web sites, different portals, search engines, viral videos and blogs were recognized as channels to share information and increase the awareness of the company. In theory there were also mentioned social network sites and communities as well as wikis which could increase the awareness of the company among potential customers. At the negotiation stage e-mail is widely used in b-to-b context but also widgets could be used for informing customers on new products. The theory suggest that social network sites and communities enable the communication in procurement process while RSS feeds and podcasts could inform about product developments. At the relationship development stage it is recognized that the social network sites and communities help to develop the relationships and maintain continuous communication with existing customers. Extranet is used to inform different customer groups. There is an interesting possibility in virtual worlds with existing customers which is not widely utilized yet. Also in more stabile customer relationships the RSS feeds and widgets help to update the customers about the news. Wikis could be used at every stage of the relationship for collaboration and gathering of information about the industry.

Characteristics that differs the communication in social media from traditional marketing communication as well as the opportunities and challenges the social media creates are combined to the relationship development model by Andersen (2001). Stages of the relationship development process are the viewpoint for the role of social media in customer communication as the relationship develops (see Figure 10). 79 Figure 10. The role of social media in customer communication in business-to-business markets. The main characteristics of social media: participation, user-generated content, interaction and transparency, increase the effectiveness of communication because the customers are self part of creating the communication. The commitment for relationship development is thus higher. Challenging is to engage both the seller and the potential customers for communication in social media. The seller may not recognize the importance of tele-presence in social media and may be afraid of the uncontrollability of different communication mediums. The customers may be SOCIAL MEDIA Participation User-generated content Interaction Transparency Viral marketing Seller Customers PRE-RELATIONSHIP STAGE Communication task: Create awareness Planned communication Opportunities: Creating brand awareness Reaching wider audience Efficiency in customer communication Information search

Promotion Tele-presence Challenges: Value of the content in social media Engagement of the seller Understanding the role of social media Uncontrollability Finnish business culture Communication tools: blog, social network, community viral video, wiki NEGOTIATION STAGE Communication task: Develop relationship Contact creation Opportunities: Brand building Information search/sharing Efficiency in customer communication Targeting markets Facilitate purchase Tele-presence Challenges: Engagement Value of the content in social media Privacy and trust issues Uncontrollability Finnish business culture Communication tools: blog, social network, community, RSS feed, widget, wiki, podcast, viral video RELATIONSHIP DEVELOPMENT STAGE Communication task: Create mutual value Connectedness

Opportunities: Brand building Information sharing Efficiency in customer communication Tele-presence Challenges: Engagement Privacy and trust issues Value of the content in social media Legislation Resources Uncontrollability Finnish business culture Communication tools: blog, social network, community, virtual world, RSS, widget, wiki, podcast 80 difficult to engage due to the Finnish business culture being still quite conservative and customers may require more traditional communication tools to engage in the relationship. One weakness of the social media is that the content of the communication in social media may not be very valuable because the content is created both by professional and customers. It may be difficult to trust all the information available in different social media channels. Also the privacy issues are of concern both from the sellers and the customers side. The role of social media in customer communication in business-tobusiness markets is to be present in mediums where the potential and existing customers are. The characteristics of social media increase the effectiveness of communication at every stage of the relationship and make the communication more informal and constant. Development and maintaining customer relationships is thus easier. The seller gets feedback from the customers continuously and can better adjust offerings to customers. Viral marketing increases the awareness of the company and its offering

among wider audience. Seller and customers can search and share information among each other through different social media tools. This way all parties are kept updated of the new information. The importance of social media differs at different stages of the relationship. At the pre-relationships stage it is important to create awareness about the company among potential customers. At the negotiation stage the negotiation of transactions is the main objective of the communication. At relationship development stage it is important to keep the customer satisfied and offer additional supplies. Creation of mutual value engages both parties to the relationship at this stage. The objective of the social media in customer communication is to create value both to the company and its customers. 6.2 Managerial implications For companies operating in business-to-business markets it is important to recognize and reach potential customers. Relationships with customers can be long and founded on mutual trust. The purchases in b-to-b markets often require big investments and include several people who build a buying group so reaching all the 81 decision-makers is important. Communication in relationship should be continuous and be based on needs of the customer. The seller has to be aware of the changing needs of existing customers as well as the needs of potential customers in order to answer to these needs. Social media enables the constant contact with customers. Different social media tools make the informing about new products and updates, communicating about customer needs and sharing of information among customers easier. It is important for a company to create an understanding what the social media means and the opportunities it has as a communication channel for that particular company.

There are many tools and applications to choose among so the company has to evaluate which tools suit best for their needs. However, marketers need to understand that social media tools do not attract all customers. Especially in the bto-b markets there are still conservative industries where face-to-face meetings and other traditional communication channels are the best ways to reach the customer. For a company to implement social media in customer communication requires the understanding of the possibilities the social media creates. The company has to engage in implementing social media as a communication media in order to really gain advantages through it. Being present, offering updated information as well as answering to customer requirements creates value not just for the company itself but also to its customers. Relationships are important in b-to-b buying because single transactions require large investments and long negotiations. An established and trustful relationship with same party creates value for both parties. Marketers should find out which social media tools their customers are using and try to contact those customers in their venues. At the pre-relationship stage the seller could find out in which channels the potential customers are present and use planned communication for creation of awareness. Creating awareness on those venues could reach potential customers to search for more information about the company. Examples of social media tools that the seller can use is blog for information sharing, social network sites and communities to contact people and using references to reach potential customers. A popular 82 information sharing tool is viral videos. Especially in b-to-c market viral videos on YouTube reaches mass audiences. There are also examples of well targeted b-to-b

viral videos. For example Cisco and Epuron have released viral videos that are wellknown in their industry. So it seems that social media tools do reach potential customers and thus should be used for communication among traditional communication channels. At the negotiation stage of the relationship development the social media can be utilized for making the actual transaction possible. The seller may seek for starting a long-term relationship with the customer through contact. Communication about the transaction and its fulfilment can be handled effectively in social network sites and communities. The seller can inform the customer about updates through RSS feeds and widgets. At the relationship development stage the most important task for communication is to create mutual value for both parties through connectedness. Social media tools which seem to fit in this stage include the earlier mentioned tools but also wikis is a good tool to gather latest information of the industry. Especially in b-to-b markets the products can be very technical and require lot of information search before purchasing. Wiki that gathers all the information concerning the industry and products help the customers to search for information. The seller can provide information about its products and employees as well as customers can create content which increases the amount of information. A company operating in business-to-business markets should thus evaluate its own offering relative to potential and existing customers in order to build an understanding what the social media means and which possibilities it creates for the company in customer communication. Whether to implement the social media as part of customer communication depends on whether the company can reach customers that way. The increasing usage of social media privately and in consumer markets will increase its use in business communication in the near future. It is thus important

for companies to find out how they could implement the social media tools for communication. The technological progress is fast and new applications are entering the digital environment. 83 6.3 Limitations and evaluation of the study Christians (2005, 144 - 145) have collected ethical issues concerning the research process. These issues include informed consent, deception, privacy and confidentiality and accuracy. Informed consent includes two conditions: the respondents must voluntarily agree to participate in the study and the agreement must be based on full and open information. The different experiments designed and conducted by researchers should be free of active deception. Privacy of respondents identity and keeping the information collected confidential are principles in research conducted ethically. Accurate data is also one main principle in scientific research. This research was conducted according to the mentioned ethical issues. The interviewees were informed about the objectives of the study and the use and the purpose of the data collected. They voluntarily participated in the study. Interviews were designed accurately and there should not be misinterpretation of the questions asked nor the answers given. Privacy of the interviewees was promised to keep and therefore no single interviews with names are provided in this study. The study refers to some expressions made by individual interviewees but it is not possible to recognize neither the company nor the respondent in question. Direct citations are only used to provide better expression of the studied phenomenon. Accuracy is followed through the research process in order to increase the validity of the study. Validity, reliability and generalization are requirements for academic research. Validity refers to the truth or accuracy of the study: how true the claims and how

accurate the interpretations being made in the study are. (Moisander & Valtonen, 2006, 23 - 24.) Validity in a qualitative research refers to a descriptive, interpretative and theoretical validity. The degree to which the actual description holds true is referring to descriptive validity. Interpretative validity refers to how correct the interpretation is. Theoretical validity measures whether the suggested theory holds true. (Ghauri & Grnhaug 2005, 216, 218.) The validity of this study is tried to increase in data collection stage by using several sources. The interviews were 84 conducted in several companies as well as among several experts. Secondary data is also used for triangulation. In the data analysis stage the validity is noticed when reading and coding the data. The truth and accuracy is tried to follow in interpretation of the data. The chosen research method also affects the validity. Conducting interviews among industrial companies and experts on social media suits well for a research topic that is novel. The validity was increased by triangulating the findings with secondary data. Reliability refers to minimizing the errors and biases in a research. Describing the methodological choices in detail in order to make the research process transparent increases the reliability of a research. (Yin 2003, 37 38.) Reliability indicates to conducting the research in a systematic and rigorous manner which include recording and transcribing the data (Moisander & Valtonen 2006, 28). Reliability of this study is increased by recording the telephone interviews and using transcript of interviews in analysis stage of the research process. The data was coded and organized which helps to recognize and analyze the themes. The research process is also tried to describe in detail which increases the reliability. The generalization of the research findings is not such a valid measure in qualitative

research as it is in quantitative. In qualitative research it rather refers to transferability of the results: to what extent the results can be transferred and applied to other contexts and situations. (Moisander & Valtonen 2006, 28 - 29.) The results of this study seem to be transferrable to other contexts because the secondary data supported the findings made in this study. The use of social media still seems to be exiguous in business-to-business markets although its importance as a communication channel is recognized. However, the empirical study only concerned six companies operating in industrial markets so the results from this study should not be generalized. The companies interviewed for this study have head quarters in Finland which has an effect to the transferability of the results to other countries. The companies have multinational operation but it can be assumed from the data that the Finnish business culture affects the communication in social media. The results are thus transferrable at the most to countries with similar business culture than in 85 Finland. The limitations of the empirical data are recognized due to the fact that the empirical data only concerned six Finnish companies operating in industrial markets. The expert interviews were collected to get data about the topic that is still quite novel. The expert interviews gave competent ideas and viewpoints to the topic. There were also used secondary data in the empirical study to triangulate the findings. The used data, both primary and secondary, was relevant in this topic and findings made in the empirical study support the findings in the theoretical part. The theoretical part of this study was mostly conducted from academic journals. However the research on social media is still inadequate and the research of the topic develops so rapidly that secondary references (web-pages and reports) as well as non-academic journals are considered due to their fresh insights to the studied topic.

When using these references as well as when referring to academic journals, criticism is taken account. The research topic is still novel so it is challenging to find relevant academic theory which focuses on the topic. There are written numerous books and manuals on how to practically integrate the social media into companies marketing activities, but there is a lack of theoretical models. It was therefore challenging to find relevant academic articles. The amount and quality of reports and articles published about the topic is increasing but especially in business-to-business context the literature is still inadequate. Therefore relevant theories from consumer context are adapted to business context in this study. There have been also used secondary references in order to create a current picture of the phenomenon. There has been used criticism and consideration in creation of the theoretical framework. The objective was to develop a holistic picture of the role of social media in customer communication in business-to-business context. The theory is comprised from parts that are relevant to phenomenon: marketing communication in general, digital marketing communication in particular, the characteristics, opportunities and challenges of social media. The marketing communication in relationship building and development is relevant because in business-to-business context relationships play an important role in decision-making. Presentation of different social media tools contributes to discover the possibilities companies have in customer communication in social media. 86 6.4 Suggestions for future research According to this study the use of social media seems to be quite insignificant among b-to-b companies. A quantitative research on the actual use of social media in b-to-b

customer communication would reveal the real use. As the advertisement in digital channels is increasing while total investments in advertising are decreasing the role of social media in an integrated marketing communication strategy could be an interesting topic to study. Future research on social media in communication could also concern the measurement. The measurement of the effectiveness of communication is easier in digital communication channels compared to traditional channels. However, more accurate and useful ways to measure the effectiveness could be developed. From the methodological viewpoint virtual communities could be used as focus groups when conducting market research. It could also be interesting to study whether there are some specific industries that use social media in communication more than others. This study focused on social media in customer communication in b-to-b markets in Finland. Comparison research among use of the social media in different countries would be interesting in order to recognize how the business culture affects the use of social media. Also benchmarking from other countries and companies would benefit when evaluating the use of social media. 87 REFERENCES Ahlqvist, T., Bck, A., Halonen, M. & Heinonen, S. (2008). Social media roadmaps. Exploring the futures triggered by social media. VTT Research Notes 2454. Espoo: VTT. Ahlqvist, T., Halonen, M. & Heinonen, S. (2007). Weak signals in social media. Report on two workshop experiments in futures monitoring. SOMED foresight report 1. Research report no VTT-R-03466-07. Espoo: VTT. Ambrose, E., Marshall, D., Fynes, B. & Lynch, D. (2008). Communication media selection in buyer-supplier relationships. International Journal of Operations & Production Management, 28(4), 360 379. Andersen, P.H. (2001). Relationship development and marketing communication: an

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2. What are the most essential channels for marketing products/company in btob context? Should messages be pushed in all possible channels or is targeting a better solution? 3. What kinds of channels and tools are used for customer procurement and management? 4. How would you define the role of the internet in b-to-b-markets? Pros and cons? User-generated content, networking, communality 1. What is the position/role of social media in the marketing mix? Should specific resources be targeted for this? 2. In what ways can social networks and communities be used as regards to marketing communications and CRM? Should they be used differently in the context of b-to-b marketing compared with b-to-c? 3. Do you know of any successful b-to-b online viral marketing campaigns? What are the benefits of e.g. posting videos on Youtube or pictures on Flickr? How can the benefits be measured? Social media tools 1. What social media tools are particularly relevant for b-to-b marketing? 2. How should these tools ideally be used? 3. What are the pros and cons compared with traditional marketing channels? 98 4. How can the pros be measured? Is there evidence that using social media tools in b-to-b markets could e.g. increase sales 5. Are there ways to eliminate the cons? 6. Should all b-to-b companies harness social media or are there particular industries where social media is irrelevant? Applications and technologies 1. Will new technologies be built on the current ones or is radical innovation more likely? 2. Compared with current technologies what benefits will new technologies bring for companies and customers? Future 1. What are the biggest challenges for b-to-b companies in the future? 2. How will (web 3.0) differ from web 2.0?

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