LTU-SHU-EX-00112-SE (1)

Catarina Olander, Christer Sehlin

The Use and Integration of Marketing Communication Tools in Business-to-Business Firms: Case studies of three Swedish firms

2000:112

MASTER'S THESIS

Ekonomprogrammet D-nivå

Institutionen för Industriell ekonomi och samhällsvetenskapAvdelningen för Industriell marknadsföring

2000:112 • ISSN: 1404-5508 • ISRN: LTU-SHU-EX--00/112--SE

Abstract

Marketing communication is a systematic relationship between a business and itsmarket. There are twelve different communication tools available to the marketer:personal selling, advertising, sales promotion, direct marketing, public relations,sponsorship, exhibitions, packaging, point-of-sale and merchandising, the Internet, wordof mouth and corporate identity. These communication tools constitute the marketingcommunication mix. For several years, the Internet and the Web has dramaticallyaltered the traditional view of advertising and communication media. The Web providesan efficient channel for advertising, marketing, and even direct distribution of certaingoods and information services. Each element of the communication mix shouldintegrate with other tools of the communication mix so that a unified message isconsistently reinforced. This new direction for marketing is called integrated marketingcommunication (IMC). The purpose of this thesis is to investigate how business-to-business firms use and integrate the different marketing communication tool in thecommunication mix, from both a traditional and Internet marketing communicationperspective. The findings showed that personal communication tools by which thecompanies can interact face-to-face with the customers such as personal selling andexhibitions were the most important tools. Regarding the Web as a communication toolit was mainly used to inform the market, to demonstrate products, and to provide onlinematerial to the customers. In terms of integrated marketing the companies seems to havelittle knowledge about it and how it can be used. In spite of that they try to send out aconsistent message to the customers.

Table of contents

1 INTRODUCTION ....................................................................................................... 1

1.1 Background ............................................................................................................. 11.2 Research Problem ................................................................................................... 31.3 Purpose.................................................................................................................... 61.4 Research Questions................................................................................................. 61.5 Demarcations .......................................................................................................... 71.6 Outline..................................................................................................................... 7

2 REVIEW OF LITERATURE..................................................................................... 8

2.1 Traditional Marketing Communication Tools ........................................................ 82.1.1 Personal Selling.............................................................................................. 82.1.2 Advertising ..................................................................................................... 92.1.3 Sales Promotion............................................................................................ 102.1.4 Direct Marketing .......................................................................................... 122.1.5 Public Relations............................................................................................ 122.1.6 Sponsorship .................................................................................................. 132.1.7 Exhibitions.................................................................................................... 142.1.8 Packaging ..................................................................................................... 142.1.9 Point-of-Sale and Merchandising................................................................. 152.1.10 Word of Mouth........................................................................................... 152.1.11 Corporate Identity....................................................................................... 162.1.12 Studies on Communication Tools Used by Sellers .................................... 17

2.2 The Web as a Marketing Communication Tool.................................................... 182.2.1 The Role of the Web Site in the Marketing Communication Mix ............... 192.2.2 The Web Site as a Communication Tool...................................................... 202.2.3 Benefits and Potential Drawbacks of the Web as a Communication Tool... 202.2.4 Promoting Web Sites with Other Media ...................................................... 222.2.5 The Web Site and the Buying Process ......................................................... 22

2.3 Integrated Marketing Communications ................................................................ 232.3.1 Benefits and Barriers to Integrated Marketing Communication .................. 242.3.2 Ten Golden Rules in Integrated Marketing Communication ....................... 262.3.3 Studies on Integrated Marketing Communication........................................ 27

3 CONCEPTUALISATION AND EMERGED FRAME OF REFERENCE ......... 30

3.1 Conceptualisation.................................................................................................. 303.1.1 Research Question One, How Can a Business-to-Business Firm’s Use of theTraditional Marketing Communication Tools be Described?............................... 303.1.2 Research Question Two, How Can a Business-to-Business Firm’s Use of theWebsite as a Marketing Communication Tool be Described? .............................. 313.1.3 Research Question Three, How Does a Business-to-Business Firm Integratethe Marketing Communication Tools?.................................................................. 32

3.2 Emerged Frame of Reference ............................................................................... 33

4 METHODOLOGY .................................................................................................... 34

4.1 Purpose of Research.............................................................................................. 344.2 Research Approach ............................................................................................... 354.3 Research Strategy.................................................................................................. 354.4 Data Collection Method........................................................................................ 374.5 Sample Selection................................................................................................... 394.6 Data Analysis ........................................................................................................ 404.7 Validity and Reliability......................................................................................... 41

Table of contents

5 DATA PRESENTATION.......................................................................................... 43

5.1 Plannja AB............................................................................................................ 435.1.1 Research Question One, How Can a Business-to-Business Firm’s Use of theTraditional Marketing Communication Tools be Described?............................... 435.1.2 Research Question Two, How Can a Business-to-Business Firm’s Use of theWebsite as a Marketing Communication Tool be Described? .............................. 465.1.3 Research Question Three, How Does a Business-to-Business Firm Integratethe Marketing Communication Tools?.................................................................. 47

5.2 Liko AB ................................................................................................................ 485.2.1 Research Question One, How Can a Business-to-Business Firm’s Use of theTraditional Marketing Communication Tools be Described?............................... 485.2.2 Research Question Two, How Can a Business-to-Business Firm’s Use of theWebsite as a Marketing Communication Tool be Described? .............................. 505.2.3 Research Question Three, How Does a Business-to-Business Firm Integratethe Marketing Communication Tools?.................................................................. 51

5.3 Svalson AB ........................................................................................................... 525.3.1 Research Question One, How Can a Business-to-Business Firm’s Use of theTraditional Marketing Communication Tools be Described?............................... 525.3.2 Research Question Two, How Can a Business-to-Business Firm’s Use of theWebsite as a Marketing Communication Tool be Described? .............................. 555.3.3 Research Question Three, How Does a Business-to-Business Firm Integratethe Marketing Communication Tools?.................................................................. 56

6 ANALYSIS ................................................................................................................. 58

6.1 Research Question One, How Can a Business-to-Business Firm’s Use of theTraditional Marketing Communication Tools be Described? .................................... 58

6.1.1 Within-Case Analysis................................................................................... 586.1.2 Cross-Case Analysis..................................................................................... 65

6.2 Research Question Two, How Can a Business-to-Business Firm’s Use of theWebsite as a Marketing Communication Tool be Described?.................................... 67


6.3 Research Question Three, How Does a Business-to-Business Firm Integrate theMarketing Communication Tools? ............................................................................. 72


7 CONCLUSIONS ........................................................................................................ 76

7.1 Research Question One, How Can a Business-to-Business Firm’s Use of theTraditional Marketing Communication Tools be Described? .................................... 767.2 Research Question Two, How Can a Business-to-Business Firm’s Use of theWebsite as a Marketing Communication Tool be Described?.................................... 777.3 Research Question Three, How Does a Business-to-Business Firm Integrate theMarketing Communication Tools? ............................................................................. 787.4 Implications........................................................................................................... 78

7.4.1 Implications for Management....................................................................... 787.4.2 Implications for Theory................................................................................ 797.4.3 Implications for Further Research ................................................................ 79

REFERENCES.............................................................................................................. 80

APPENDICES

Table of contents

List of Figures

Figure 1.1 A Linear Model of Communication .......................................................................................1Figure 1.2 The One-to-Many Communication Process...........................................................................3Figure 1.3 A Many-to-Many Communications Model for Hypermedia CMEs ......................................5Figure 1.4 The Outline of this Thesis......................................................................................................7Figure 2.1 The Web Site as Part of the Marketing Communication Mix ..............................................23Figure 3.1 The Frame of Reference of this Study .................................................................................33Figure 4.1 A Graphical Overview of the Methodological Issues for this Study....................................34

List of Tables

Table 2.1 Importance of Information Sources – Industrial Sellers.....................................................17Table 2.2 Allocation of Money Spent on Marketing in Industrial Firms............................................18Table 2.3 Time and Attention Devoted to Selected Advertising and Marketing Subjects.................28Table 2.4 Marketing Communications Alternatives: Percent Considered “Always” or “Frequently”

in Campaign Planning........................................................................................................29Table 4.1 Relevant Situations for Different Research Strategies........................................................36Table 4.2 Sources of Evidence...........................................................................................................37Table 6.1 Data Display Research Question One, Traditional Communication Tools........................65Table 6.2 Data Display Research Question Two, the Use of the Website as a Marketing

Communication Tool..........................................................................................................70Table 6.3 Data Display Research Question Three, Integrated Marketing Communication................74

Chapter 1 Introduction

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1 INTRODUCTION

n this chapter the background, the research problem, the purpose, the researchquestions, the demarcations and the outline of the thesis will be presented.

1.1 Background

Marketing communications are about the promotion of both the organisation and itsofferings. It recognises the increasing role the organisation plays in the marketingprocess and the impact that organisational factors can have on the minds of consumers.(Fill, 1995) Marketing communication is a systematic relationship between a businessand its market in which the marketer assembles a wide variety of ideas, designs,messages, media, shapes, forms and colours, both to communicate ideas to and tostimulate a particulate perception of products and services by, individual people whohave been aggregated into a target market (Smith, Berry & Pulford, 1998).

According to Webster (1984, p. 248) industrial marketing communication is “a mix ofpersonal and impersonal communications aimed at the industrial buyer”. It should bepointed out that in the Swedish language there is a slight difference between the termsindustrial and business-to-business, and when referring to industrial the implication isbusiness-to-business. However, promotion as a means by which a seller cancommunicate with the buyers, and for buyers to be able to communicate back to theseller is only a part of a much larger system known as the marketing communicationprocess. Fill (1995) presents a linear model of communications (based on Schramm,1955 and Shannon and Weaver, 1962). Further the author states that this model is nowaccepted as the basic model of mass communications. The model is presented in figure1.1 below.

Figure 1.1 A Linear Model of CommunicationSource: Fill (1995), p. 24

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Signal orMessage

Sender orSource

Decoding

Encoding

Destinationor Receiver

Feedback

NoiseRealm of

Understanding

Realm ofUnderstanding


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The model begins with a source that is sent by an individual or an organisation.Encoding means that the sender must transfer the intended message into a symbolicstyle that can be transmitted. The signal represents the transmission of the messageusing particular sets of media. Decoding refers to understanding the symbolic style ofthe message in order to understand it. The receiver is the individual or the organisationthat is receiving the message. Feedback is the receiver’s communication back to thesource, on receipt of the message. Noise is a distortion of the communication processmaking it difficult for the receiver to interpret the message as intended by the source.“Realm of understanding” is an important element in the communication process, itrecognises that successful communications are more likely to be achieved if the sourceand the receiver understand each other. This understanding concerns attitudes,perceptions, behaviour and experience; the values of both parties to the communicationprocess. Therefore, effective communication is more likely when there is some commonground, a realm of understanding between the source and receiver. (Fill, 1995)

According to Smith (1998) and Smith et al. (1998) there are 12 different communicationtools available to a marketer: personal selling, advertising, sales promotion, directmarketing, public relations, sponsorship, exhibitions, packaging, point-of-sale andmerchandising, the Internet, word of mouth and corporate identity. When combiningthese into a communication mix, the marketer needs to take account of their particularappropriateness for the target market, the rate at which each tool will generate sales orawareness, and the rate of sales response when the tools are combined into the mix. Theimportance of each communication tool will vary according to the type of customer andthe general pattern of communication in a market. It is important to bear in mind thatthere is a wide range of communication tools which are not generally included in themarketing communication mix as they are controlled by other functional and linemanagers. (Smith et al., 1998)

Industrial promotion consist of a set of personal and impersonal communicationsdirected toward various audiences, including direct customers, indirect users furtherdown the channel, industrial middlemen, and the general public. Promotion serves anumber of functions, but its ultimate purpose is to stimulate and maintain demand forthe company’s products, product lines, and services. The major components ofindustrial promotion are personal selling, advertising, sales promotion and publicrelations. These combine to form the communication mix. (Morris, 1992) It should benoted that the term communication mix will be used throughout this thesis to simplifywhat also by the authors been referred to as promotion mix. This mix includes everycommunication tool, which is available to the organisation as mentioned before (Smith,1998).

A communication mix that works effectively with industrial products and services islikely to be quite different from the appropriate mix for most consumer goods. This isdue to the technical nature of industrial products, the smaller relative number ofpotential buyers, the geographical dispersion of customers, and the complex nature andlength of the organisational buying process. (Morris, 1992) In business-to-businessmarketing, for example, advertising, sales promotion, and public relations are usedprimarily to help presell or generate leads for the personal sales force. Because mostindustrial sales are made as a direct result of a presentation by a salesperson, the otherelements are used to assist or support these personal selling situations. (Schultz, 1991)


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1.2 Research Problem

The environment in which marketers now operate in is substantially different from 20years ago. There is now an enormous variety of marketing communication toolsavailable – press, radio, TV (terrestrial, satellite, cable, and interactive video, text),telephone, mail, e-mail, and the Internet. The data available to the marketer for marketanalysis and for targeting customers directly is vast and increasing almost daily. (Smithet al., 1998)

Firms communicate with their customers through various media. Traditional mediainclude both mass media (e.g., television, radio, newspaper, magazines, direct mail),and personal communications (e.g., word of mouth). Traditionally, these media follow apassive one-to-many communication model, whereby a firm reaches many current andpotential customers, segmented or not, through marketing efforts that allow only limitedforms of feedback from the customer. Hoffman and Novak (1996, p 52) presents thissimplified one-to-many communication model that underlies many models of masscommunication shown in figure 1.2. The primary feature of the model is a one-to-manycommunication process, whereby the firm (F) transmits content through a medium tocustomers (C). Depending on the medium (i.e., broadcast, print, and billboards), eitherstatic (i.e., text, image, and graphics) and/or dynamic (i.e., audio, full-motion video, andanimation) content can be incorporated. No interaction between consumers and firms ispresent in this model. Virtually all contemporary models of mass media effects arebased on this traditional model of the communication process.

Figure 1.2 The One-to-Many Communication ProcessSource: Hoffman & Novak (1996), p. 52

For several years, a revolution has been developing that is dramatically altering thistraditional view of advertising and communication media. This revolution is theInternet, which as a new marketing medium has the potential to radically change theway firms do business with their customers. (Hoffman & Novak, 1996) It should benoted that some authors refer to the World Wide Web (the Web) when talking about theInternet. Though there is a big difference between the terms and it should be pointed outthat the Internet is the network of interconnected packed switched computer networksaround the world and the Web is the Internet’s graphical interface, which is what is seenwhen entering a Website. (Hoffman & Novak, 1996 and Lynch & Horton, 1999) TheInternet offers the opportunity to link with simple and powerful computers theoreticallywith anyone on a global basis with the use of a modem. The open software enablesaccess to information concerning companies, individuals, marketing data, brochures,pictures, science, specific discussion groups, sports politics and a host of other sources.

Content MediumF

C

C

C

C

C


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(Ranchhod, 1998) The Internet removes many barriers to communication, obstaclessuch as time zones, geography and location (ibid). It also offers a computer-mediatedenvironment (CME) on a global basis and provides an efficient channel for advertising,marketing and even direct distribution of certain goods and services (Hoffman &Novak, 1996). The main growth is expected to be in the “business-to-business area”(Ranchhod, 1998).

The Internet is an important focus for business-to-business marketers for severalreasons. Customers and firms are conducting a substantial and rapidly increasingamount of business on the Internet. The market prefers the decentralised, many-to-manyWeb for electronic commerce to the centralised, close-access environments provided bythe online services. The Web represents the broader context within which otherhypermedia CME’s exists. Further the Web provides an efficient channel foradvertising, marketing, and even direct distribution of certain goods and informationservices. (Hoffman & Novak, 1996)

Serious marketing practitioners and academics are aware that more systematic researchis required to reveal the true nature of commerce on the Web, particularly from theperspective of the Web in marketing communication. Especially true from an industrialmarketing perspective, since most of the attention thus far has been devoted tospectacular Web achievements in customer markets. The objective with presence on theWeb could be to create corporate and product awareness, and to inform the market. Websites might typically be viewed as complementary to the direct selling activity byindustrial marketers and as supplementary to advertising. (Berthon, Lane, Pitt &Watson, 1998)

The central dilemma confronting the Web marketer is how to turn surfers (those whobrowse the Web) into interactors (attracting the surfers to the extent that they becomeinterested, ultimately purchasers, and staying interactive, repeat purchasers). The Webwarrants the industrial marketer’s serious attention. Business to business marketers willneed to set objectives for their use of the medium as corporate communication tool, andmeasure their progress towards the attainment of these. No communication medium orelectronic technology, not even fax or personal computers, has even grown as quickly.(ibid)

New media encompass interactive media, such as videotex, interactive CD-ROM, on-line services, and hypermedia CMEs, as well as emerging so called interactivemultimedia, such as pay-per-view, video-on-demand, and interactive television. Themedia typologies referenced in figure 1.2 reveal that media differs along many differentdimensions, for example channel characteristics and uses and gratifications. Figure 1.3on the next page, present a many-to-many communication model for hypermediaCMEs. Hoffman and Novak (1996) define hypermedia CME as a dynamic distributednetwork, potentially global in scope, together with associated hardware and software foraccessing the network, which enables consumers and firms to provide and interactivelyaccess hypermedia content and communicate through the medium.

The content in the figure is hypermedia, and the medium is a distributed computernetwork. Figure 1.3 differs from figure 1.2 in that interactivity can also be with themedium (i.e., machine interactivity) in addition to through the medium (i.e., personinteractivity). The customers can interact with the medium (e.g., surf the Web usingbrowsing software) as can firms (e.g., business-to-business marketing in Commercenet).


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Content Medium Content

Content

Content

F

CC

C

C

F

F

F

In addition firms can provide content to the medium by establishing a corporate Webserver. Maybe the most radical departure from traditional marketing environments isthat the customers can put product related content in the medium. (Hoffman & Novak,1996).

Figure 1.3 A Many-to-Many Communications Model for Hypermedia CMEsSource: Hoffman & Novak (1996), p. 53

There is now, in moving into the twenty-first century, a need for marketingcommunications to be co-ordinated and budgeted around the needs and perceptions ofthe customer. As technology develops, in both manufacturing and marketing, thatcustomer becomes more and more accessible as an individual rather than as just oneperson in an aggregated mass market. This new direction for marketing is calledintegrated marketing communications (IMC). (Smith et al., 1998)

The definition of IMC used by the American Association of Advertising Agencies is a:

“concept of marketing communications planning that recognises the added value if acomprehensive plan that evaluates the strategic roles of a variety of communicationsdisciplines, e.g., general advertising, direct response, sales promotion and publicrelations – and combines these disciplines to provide clarity, consistency and maximumcommunications impact”.

(Duncan & Everett, 1993)

Each element of the communication mix should integrate with other tools of thecommunication mix so that a unified message is consistently reinforced. Some majoradvertising campaigns are supported by PR activity, and many advertisements havepress launches not for the product but for the advertisement itself. Thus publicity andadvertising work together to create a bigger impact in a cost-effective way. (Smith,1998)


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The pressure to integrate marketing communications is a result of numerous factors.Key among these are communications agency mergers and acquisitions, increasingsophistication of clients and retailers, increasing cost of traditional advertising media,increasing global competition, increasing pressure on organisations’ bottom lines,decreasing effectiveness of traditional media, the decreasing cost of database usage, andother trends such as zapping, media fragmentation, and loss of message credibility.(Duncan & Everett, 1993)

Although marketing communications has been used for several years as an umbrella torefer to the various communications functions used by marketing, the strategicintegration of these functional areas is what makes IMC a new approach to reachingcustomers and other stakeholders. The theory of an IMC program is that it has one basiccommunications strategy for each major target audience. This one strategy is then usedas the basis for executing each communications function (advertising, PR, salespromotion, et cetera.) throughout a variety of communication channels. (Duncan &Everett, 1993) According to Duncan and Everett (1993, p. 30) “IMC is one of theeasiest ways an organisation can maximise its return on investment”.

In today’s cluttered and confusing marketplace, the need for integrated marketingcommunications has never been greater. There are simply too many products, too manybrands, and too many marketers for the customer to keep straight or to understand,unless the image and benefits of the promoted product or service are clear and concise.The key is to have one clear marketing program and one clear, concise promotionprogram in which all elements are co-ordinated and communicate the same message tothe customer, the retailer, and the wholesaler. (Schultz, 1991)

According to Duncan and Everett (1993), the body of literature of IMC is thin and whatis available mostly deals with superficial case histories and anecdotes. FurthermoreMcArthur and Griffin (1997) state that there is a need of further investigation of themanner in which integrated marketing communication programs are constructed, co-ordinated, sourced, and implemented among various types of businesses.

1.3 Purpose

The purpose with this thesis is to investigate how business-to-business firms use andintegrate the different marketing communication tools in their communication mix,from both a traditional and Internet marketing communication perspective.

1.4 Research Questions

1. How can a business-to-business firm’s use of the traditional marketingcommunication tools be described?

2. How can a business-to-business firm’s use of the Website as a marketingcommunication tool be described?

3. How does a business-to-business firm integrate the marketing communication tools?


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1.5 Demarcations

The thesis is written from a seller’s perspective and is not going to be looked up onfrom the buyer’s perspective. Further we have limited ourselves to investigate Swedishcompanies, due to the lack of time.

1.6 Outline

The thesis is divided into seven chapters as shown in figure 1.4. In the first chapter abackground to the selected area is presented followed by a research problem, a statedpurpose, the research questions of our study, the demarcations and finally the outline ofthe thesis. In the second chapter literature to the selected topic will be reviewed. Thethird chapter presents a conceptualisation of the reviewed literature followed by theframe of reference of this thesis. Chapter four presents the methodology used in thisthesis. In chapter five the empirical data received during the data collection ispresented. Chapter six contains a within case analysis and a cross-case analysis of theempirical data presented in chapter five. Finally, in chapter seven the conclusions andimplications are presented.

Figure 1.4 The Outline of this ThesisSource: Olander & Sehlin (2000)

Chapter 1Introduction

Chapter 2Review ofLiterature

Chapter 7Conclusions and

Implications

Chapter 6Analysis

Chapter 5Data

Presentation

Chapter 4Methodology

Chapter 3Conceptualisation

and EmergedFrame ofReference

Chapter 2 Review of Literature

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2 REVIEW OF LITERATURE

his chapter contains literature based on our research questions. This willinclude studies on marketing communication tools used by industrial sellers,then studies on the Web as a marketing communication tool and finally studiesmade on integrated marketing. In order to describe the various communication

tools as comprehensively as possible we have included some theory that can be appliedby both business marketers and consumer marketers.

2.1 Traditional Marketing Communication Tools

According to Smith, (1998) and Smith et al. (1998) there are twelve differentcommunication tools available to a marketer: personal selling, advertising, salespromotion, direct marketing, public relations, sponsorship, exhibitions, packaging,point-of-sale and merchandising, the Internet, word of mouth and corporate identity.These communication tools are examined more extensively below.

2.1.1 Personal Selling

Personal selling is promotion via a sales pitch by a sales representative to a prospect, orby a retail assistant to a customer, guaranteeing exposure to self-selected members of atarget market. (Baker, 1994) Personal selling includes according to Foster (1998, p. 78)face-to-face sales calls/meetings, telephone sales calls, videoconferencing, tradeshows/exhibitions, conferences/seminars, and word of mouth.

Toady selling has moved away from the short-term, quick sale scenario. Combativesalesmen are being transformed into “customer servants”. Selling today is more aboutpartnering and relationship building – You don’t sell to people, you partner with them.This is particularly true with KAM (key account management), which requires a morestrategic approach to selling. Today selling is about building durable relationships thatare depending on satisfying the customer constantly. Many companies are nowmeasuring success not just by units sold but also by the far more rigorous yardstick ofcustomer satisfaction. And selling has moved beyond the marketing and salesdepartments as companies realise that in today’s heated competitive markets the wholecompany must sell. (Smith, 1998)

Some markets, particularly industrial markets, depend on personal selling more thanothers – winning an order for, say, a heavy industrial machine cannot be done byadvertising, direct mail or telesales (telephone selling). This kind of selling requires atop-level sales professional. (ibid)

An organisation’s own sales force, or a distributor’s or agent’s sales force, all have to bekept abreast of any new advertising or sales promotion campaigns. Their productknowledge has to be kept up to scratch. Some advertisements are wasted when theysucceed in pulling customers into stores only for the customers to find out that the salesstaff behind the counter is not familiar with either the advertisement or the particularoffer being made. Equally, may spend considerable time ensuring that wholesaler andretailer point-of-sale materials are professionally co-ordinated with a national

T


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advertising campaign. This suggests that selling needs to be integrated with othercommunication activities such as advertising, direct mail, telesales et cetera. (ibid)

Personal selling offers several advantages to the industrial marketer. These includedirect access to customers on a planned basis, control over presentations andapproaches, and an increase in the number of employees that, if the situation warrants,can be rotated into other assignments. There is also a degree of accountability of thefunds that are spent on this activity. Salespeople can report directly back on the successor failure of their efforts. There are several disadvantages to personal selling, however.These include a lengthy process to recruit and train individuals, and a possibility of lossof control of some aspects of the marketing mix. This includes managing price andpresenting product benefits, which can deviate from the firm’s policies. Another majordisadvantage is that if there is a need to lower the marketing effort, reducing the salesforce is a painful process that normally requires terminating employees and changingterritories and assignments. These personnel changes can be expensive and trying on themanager and salespeople involved. (Powers, 1989)

2.1.2 Advertising

Advertising is promotion via a recognisable advertisement placed in a definableadvertising medium, guaranteeing exposure to a target audience in return for apublished rate for the space or time used. (Baker, 1994) Advertising is thought by someto help buyers to learn and remember brands and their benefits by repeating the messageand building associations between brands, logos, images, and benefits – a form ofclassical conditioning. (Smith, 1998)

The role of advertising in the communication mix is an important one. Advertising,whether it is on a national, local, or direct basis, is important as it can inform, remind orpersuade established or potential customers of the existence of a product, service ororganisation. Advertising can reach huge audiences with simple messages that allowreceivers to understand what a product is, what its primary function is and how it relatesto all the others similar products. This is the main function of advertising, tocommunicate with specific audiences. These audiences may be customer- ororganisation-based, but wherever they are located, the prime objective is to buildawareness of a product/service or an organisation. (Fill, 1995)

Advertising, when used in industrial markets, relies very little on mass media vehiclessuch as television and radio. Mass media is not only expensive, it does not permit themarketer much opportunity to specifically target efforts towards different types ofindustrials customers. In addition, use of the mass media results in extensive wastedexposure, since many of the individuals reached are not part of the firm’s target market.This waste drives up the coast per contact. As a result, the primary vehicle used inindustrial advertising is print media, with trade journals, general business publications,direct mail, industrials directories, and technical literature the most heavily usedadvertising outlets. The advertising message will tend to emphasise factual informationand functional product or service benefits. (Morris, 1992)

According to Powers (1989) advertising has some advantages and disadvantages. Theadvantages are that it can be quickly implemented have widespread market coverage,have control of message content, and that it easily can be terminated. The disadvantages


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are that it cannot target individual customers, that it is difficult to change message thrustquickly, and that it also is difficult to determine cost effectiveness.

2.1.3 Sales Promotion

Sales promotion (SP) is promotion via a considerable array of related but distinctpromotions (such as contests, premium offers, free goods and services, et cetera). Allintended to achieve exposure for the promoted product and some, furthermore, offeringthe target audience an incentive to respond actively. (Baker, 1994)

The International Chamber of Commerce (ICC) defines sales promotion as:“marketing devices and techniques which are used to make goods and services moreattractive by providing some additional benefit, whether in cash or in kind, or theexpectation of such a benefit”.

(Boddewyn & Leardi, 1989, p. 365)

According to Smith (1998) there are three main categories of sales promotion:� Customer promotions (premiums, gifts, prizes and competitions, e.g. on the back of

breakfast cereal boxes)� Trade promotions (special terms, point-of-sale materials and free pens, diaries,

competition prizes, et cetera)� Sales force promotions (incentive and motivation schemes)

Promotions are action oriented, particularly as they often tempt the buyer to buy or atlest try a product or service. These kinds of promotions often provide the final shovethat moves a customer towards buying a particular product or service. Some promotionscan enhance or add value to the image of the product or service. This means that the giftis in some way related to the brand, its image or its properties. Effective sales promotioncan creatively build the brand franchise while achieving many other objectives such asincreasing sales, cementing loyalty, building databases, generating publicity and more.(Smith, 1998)

The characteristics of sales promotion can be defined as following (Boddewyn &Leardi, 1989, p. 365): Techniques and devices commonly used on a temporary basis, tomake goods and services more attractive to distributors or final customers by providingthem with some additional benefit or inducement (incentive) or the expectations of sucha benefit, whether in cash, in kind (nature) and/or services, whether immediately or at alater time, whether freely or conditionally.

Boddewyn & Leardi, (1989, p. 365), list the following promotional items: premiumoffers of all kind, reduced prices and free offers, the distribution of trading stamps,vouchers and samples, charity-linked promotions, and prize promotions of all types,including incentive programmes.

� A premium is an additional benefit which is conditioned upon (depending upon) thepurchase of a product or a service. Premiums may be offered free at or price lowerthan their usual price value. Premiums may be in or on the package, near thepackage (a tear off coupon placed on the shelf or near the product being promoted,free-in-the-mail et cetera)


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� A gift is a product or service that is given freely and is not conditional on thepurchase of a product or service. Free samples are gifts.

� A competition is a prize in the form of a premium offered or a gift given only tosome distributors or customers (not all can win), following some contest or gamebased on skill, chance or some combination of the two. What distinguishes a contestfrom a game of chance is the action the customer is required to perform. A contest ischaracterised by three factors; skill (ability, sagacity, et cetera.), prize and aconsideration (for instance, some proof or purchase). Contests may involvesubmitting photographs, writing essays, answering difficult questions, which are tobe judged by a jury. A game of chance (e.g., a sweepstake) is characterised bychance, a price and no consideration – that is, participation must be free. Anexample of a sweepstake is sending in a freely available certificate, which entitlesthe customer to the chance of winning a prize in cash, goods or services (e.g., atelevision set or a vacation).

� A coupon is a certificate given to customers, which entitles them to an immediateprice reduction when they purchase the stated item. Coupons may be distributedthrough the mail, in public places, door-to-door, in or on packages, through storedemonstrations, et cetera.

� Free sampling refers to small quantities of the product provided for free todemonstrate its features and benefits. Samples may be distributed through the mail,in public places, door-to-door, in or on packages, through store demonstrations, etcetera.

� Price reductions offer the customer an immediate amount off the usual price, oroffer a larger pack at no increase in the retail price. Examples of price reductions are“cents-off” label-price packs (e.g., special 99c price instead of $1,29), bonus packs(e.g., four for the price of three), and larger units offered at the price of the regular-sized unit (e.g., a 1,5 litre bottle for the price of 1,0 litre).

� Refund offers allow the customer to recover a certain amount from the disbursedprice – either in cash or in coupon value – when proof of purchase of a designatedproduct is presented. There are single-brand and multi-brand refund offers. Multi-brand offers require the customer to collect proofs of purchase from several relatedbrands (e.g., cereals or detergents) before the refund can be obtained.

� Continuity offers – unlike the above sales-promotion techniques, are designed forlong-term action by encouraging customers to purchase the product at more frequentintervals. They include stamp plans (collecting a certain number of stamps that maylater be traded for cash, merchandise or a combination of the two) and in/on packcontinuity premiums encouraging the customer to complete a set of merchandise(e.g., a set of towels or dishes) by purchasing the promoted brand repeatedly inorder to acquire additional/complementary units of the product offered as apremium.

� Tie-in or group promotions (combined offers) involve two or more brandssimultaneously; the customer is offered an incentive to purchase all of theparticipating brands. This technique is usually linked to a common theme, and oftenuses other forms of sales promotion (e.g., refunds, coupons, and contests). Anexample of a group promotion would be to offer two different household products(e.g., soap and toothpaste) tied together as a refund promotion, which entitles thecustomer to receive rebate if he or she bought the two products.


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2.1.4 Direct Marketing

Direct marketing is promotion via a mail shot (delivered in the post), a mail drop(delivered to the door), telemarketing (unsolicited phone calls) or a fax message (alsounsolicited), guaranteeing exposure to individual members of a target audience. (Baker,1994) Direct marketing brings the market directly into the home or office of anindividual buyer instead of the buyer having to go to the market. There are occasionswhen an immediate sale is not appropriate, so direct marketing techniques can be usedhere to move buyers through various stages of the buying process, e.g. to get buyers tovisit an exhibition, call into a showroom for a test drive, establish contact, et cetera.Direct marketing should not be used solely as a tactic, e.g. a one-off mail short designedto win an initial sale. It can and should be used on a more strategic basis by integratingit with other marketing communication tools and in the longer term by developing adatabase. (Smith, 1998)

Direct marketing includes direct mail, telemarketing, door-to-door selling, directresponse advertising (TV, radio, cinema, web and press advertisements that solicit animmediate response, e.g. “phone now” or “fill in the coupon”), computerised homeshopping (link home computer with a store so that one can browse around the aisles,pick up merchandise, inspect it by turning it around on screen, et cetera.), homeshopping networks, and miscellaneous (stuffers, inserts, leaflet drops/ house to housedistribution). (ibid)

2.1.5 Public Relations

Publicity is promotion via a release to definable news media in the hope of secondaryexposure via an editorial mention earned by the newsworthiness of the subject matter.(Baker, 1994) Positive publicity is dependent primarily on good relationships with themedia (media relations). This is only one of the responsibilities of public relations.Public relations integrate with most aspects of an organisation’s activities. Publicrelations are regularly, and sometimes worryingly, referred to as “PR”, which is oftenconfused with “press releases” or “press relations”. These are only a part of real publicrelations. (Smith, 1998)

A simple definition of public relations is: “the development of and maintenance of goodrelationship with different publics”. The publics are the range of different groups onwhich an organisation is dependent. These include employees, investors, suppliers,customers, distributors, legislators/regulators/governments, pressure groups, thecommunity, the media, and even competition. Most of these groups have different(often conflicting) interests in any particular organisation. The UK’s institute of PublicRelations (PR) uses the following public relations definition: “the planned and sustainedeffort to establish and maintain goodwill and mutual understanding between anorganisation and its publics”. While marketing transitionally focuses on markets or justthree of the publics, i.e. customers, distributors, and competition, public relations isconcerned with many more publics. (ibid)


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The basic components of public relations, according to Wilcox, Ault and Agee (1997),include the following:

� Counselling – Providing advice to management concerning policies, relationship,and communications.

� Research – Determining attitudes and behaviours of publics in order to plan publicrelations strategies. Such research can be used to (1) generate mutual understandingor (2) influence and persuade publics.

� Media relations – Working with mass media in seeking publicity or responding totheir interests in the organisation.

� Publicity – Disseminating planned messages through selected media to further theorganisation’s interests.

� Employee/Member Relations – Responding to concerns, informing, and motivatingan organisation’s employees or members.

� Community Relations – Planned activity with a community to maintain anenvironment that benefits both the organisation and the community.

� Public Affairs – Developing effective involvement in public policy, and helping anorganisation adapt to public expectations. The term also is used by governmentagencies to describe their public relations activities and by many corporations as anumbrella term to describe multiple public relations activities.

� Government Affairs – Relating directly with legislatures and regulatory agencies onbehalf of the organisation. Lobbying can be part of a government affairs program.

� Issue Management –Identifying and addressing issues of public concern that affectthe organisation.

� Financial Relations – Creating and maintaining investor confidence and buildinggood relationship with the financial community. Also known as Investor Relationsor Shareholder Relations.

� Industry Relations – Relating with other firms in the industry of an organisation andwith trade associations.

� Development/Fund-Raising – Demonstrating the need for and encouraging thepublic to support an organisation, primarily through financial contributions.

� Multicultural Relations/Workplace Diversity – Relating with individuals and groupsin various cultural groups.

� Special Events – Stimulating an interest in a person, product, or organisation bymeans of a focused “happening”; also, activities designed to interact with publicsand listen to them.

� Marketing Communications – Combination of activities designed to sell a product,service, or idea, including advertising, collateral materials, publicity, promotion,direct mail, trade shows, and special events.

2.1.6 Sponsorship

Sponsorship is promotion via association of a product or service with an entity, event oractivity (such as sports teams, music concerts or cultural programmes) in theexpectation of secondary exposure via attribution to the sponsor during associatedmedia coverage. (Baker, 1994) Sponsorship is more than patronage, altruism orbenefaction. It can indeed help others while simultaneously achieving specificallydefined communications objectives. Some sponsors see sponsorship as a form ofenlightened self-interest, where a worthy activity is supported with cash and/orconsideration in return for satisfying specific marketing or corporate objectives. As


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sponsorship matures, it’s divers rage of programmes, objectives, advantages anddisadvantages require a relatively sophisticated level of management understanding.(Smith, 1998)

Target audience must be researched in detail, crystal-clear qualitative and quantitativeobjectives must be set, appropriate types of sponsorship vehicles must be agreed,considered and selected. A programme of integrated communications has to be plannedwith precision and sufficient budgets have to be allocated to allow for leveraging,stretching or maximising the overall sponsorship impact. (ibid)

All sectors of society can be targeted and reached through sponsorship. Just aboutanyone or anything can be sponsored. You can even sponsor the possibility of an event.The range of sponsorship opportunities is only limited by one’s imagination. Theobvious areas are sport, arts, education, community and broadcast. (ibid)

2.1.7 Exhibitions

Exhibitions are unique in that they are the only medium that brings the whole markettogether – buyers, sellers and competitors – all under one roof for a few days. Productsand services can be seen, demonstrated or tested, and face-to-face contact can be madewith a large number of relevant decision-makers in a short period of time. Relationshipscan be strengthened and opportunities seized if planned carefully. (Smith, 1998)

Exhibitions offer an array of opportunities, problems and challenges to the keenmarketing manager. They can be leveraged to the maximum effect by integrating themwith other communication tools and developing a longer-term perspective incorporatingan overall exhibition strategy. (ibid) According to Smith (1998) exhibition planningskills require the manager to:1. Prioritise exhibition objectives.2. Develop an exhibition strategy.3. Select the right shows.4. Agree a design strategy.5. Determine pre-show promotional tactics.6. Train exhibition staff.7. Finalise exhibition operational (daily action) plan.8. Ensure follow-up.9. Evaluate – post-show.

Exhibitions are a powerful marketing communication tool but they require detailedplanning and co-ordination of resources. Much research and analysis has to beconducted, and many decisions have to be made. (ibid)

2.1.8 Packaging

Packaging is promotion via display, guaranteeing exposure to customers at the point ofsales, but not to a wider target audience. (Baker, 1994) Since many sales assistants havebeen replaced by self-service systems, packaging today often has to act as a silentsalesman, helping customers by bringing a particular brand to their attention,highlighting USPs (unique selling propositions/ unique benefits), giving friendly tips on


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usage and, ultimately, helping them to break through the misery of choice created by theincreasingly vast range of seemingly similar brands. (Smith, 1998)

The design of the pack can create competitive advantage by adding value, improving theproduct (e.g. improving the freshness or making it easier to pour, et cetera), developingstronger shelf presence, positioning a brand in a particular way, and creating orstrengthening the brands relationship with the buyer. Packaging can also be anextraordinarily effective advertising medium, particularly in terms of cost andpenetration, and reach or cover of a target audience. On the self and in the home itcontinues to work day in, day out, for 52 weeks of the year. (ibid)

No single element of the communication mix comes under as much environmentalscrutiny as packaging. In a sense, we will see less and less packaging as oversizedcartons and unnecessary layers of packaging are stripped away by environmentalpressures. Good pack design also pleases the distributor/retailer by helping to makedistribution, warehousing and use of shelf space more efficient. (ibid)

2.1.9 Point-of-Sale and Merchandising

There was a time when below the line point-of-sale (POS) materials were consideredrelevant only to cosmetics, perfumery, confectionery or other impulse purchases. Todaymerchandising techniques apply to a broader spectrum of marketers, from customer toindustrial. Although vast budgets can be spent above the line of advertising to gain thecustomer’s attention or change an attitude, fewer resources are sometimes allocated tothe crucial moment in the buying process – the point in the buying cycle where thecustomer is physically in front of the product or service and is about to make decisionwhether to buy or pass by – the point of sale. (Smith, 1998)

The merchandising opportunity lies relatively untapped in industrial wholesale outletssuch as electrical wholesalers or builders’ suppliers, where a lot of merchandising tendsto look dusty, dirty and uninteresting. There is room here for creative, intelligent andeffective merchandising. It does require a delicate balance, since a hard-workingelectrician in search of some 2-core 3mm cable might assume a distributor to be tooexpensive if it looked too glitzy and comfortable. On the other hand, merchandisinghere can provide customers with useful information, e.g. reminding the buyer aboutother relevant products and any special offers. (ibid)

2.1.10 Word of Mouth

People talk about organisations, their products, their services and their staff. Whether itis a complaint, admiration or an endorsement, products and services are often a sourceof conversation. Today it is not just the products themselves but their marketingcommunications, including advertising campaigns, editorial stories, publicity stunts andspecial offers, which are discussed. (Smith, 1998)

Of all the elements of the communication mix, word of mouth (WOM) is by far themost potent on a one-to-one basis. No amount of advertising or expert selling couldcompete with a colleague or friend recommending or criticising a particular product orservice. Similarly, it is unlikely that a teaser advertisement could motivate a viewer


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actively to watch out for the next advertisement in a campaign in the way that WOMcould. For example, a previous discussion about a particular advertisement amongfriends can arouse interest in and increase observation of subsequent televisionadvertisement. (ibid)

Communication tools themselves can be used to generate WOM. Publicity stunts, clevermailings, creative promotions and challenging advertising campaigns stimulateconversation among buyers and potential buyers, either because of their shock, humourand entertainment, or because of their abstract ideas. There are other devices andtechniques that encourage and accelerate the WOM process such as postcards, digitalpostcards, T-shirts, photographs, awards and certificates (issued to visitors, customersand enquirers). The Internet can also accelerate word of mouth with its networks ofnews groups, chat-rooms, discussion forums, and email chain letters. (ibid)

The personal WOM medium can be budgeted for, planned and integrated into themarketing communications mix. This requires an understanding of opinion leaders andopinion formers and the overall audience/target market. (ibid)

2.1.11 Corporate Identity

Corporate identity is what is says – a visual means of identifying a corporation,company or organisation. Logos and names are only a part, albeit a very obvious part,of an organisations identity. Corporate identity is a strategic asset that helps to achievethe longer-term communication goals. It cannot therefore be used as a short-termtactical tool like advertising or PR, which can change from day to day (if required). Aswith any fixed asset, the corporate identity asset needs to be checked and maintained tokeep it in good working order. If allowed to fall into disarray or disrepair it can, likeother assets, eventually become a liability by projecting a inappropriate image. (Smith,1998)

Corporate identity is a symbolic uniform that acts as a flag expressing everything aboutthe organisation. It is a visual system, which uses all the point of public contact. Thisincludes the “permanent media” or buildings (exterior and interior), signage, vehicles,uniforms, business forms (invoices, cheques, letterhead, et cetera), literature (productbrochures, annual reports), exhibitions, et cetera. (ibid)

Wally Olins of the Wolf Olins corporate identity design consultancy suggest thatcorporate identity makes the corporate strategy visible through design and that it canspecifically project three things: who you are, what you do and how you do it. (ibid)

According to Smith (1998) there are a number of stages in the management of corporateidentity:1. Gain board-level support.2. Assess current situation and determine ideal image.3. Brief and select a designer.4. Develop design concepts.5. Select research, and test concepts.6. Explain internally.7. Implement launch and maintain.8. Review and update.


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2.1.12 Studies on Communication Tools Used by Sellers

Patti (1977) conducted a study of sellers’ information sources in the capital equipmentindustry. The study attempted to determine industrial sellers ranking of five importantpre-selected channels of communication. The author further ranks different informationsources ability in keeping customers and prospects informed as shown in table 2.1below.

Table 2.1 Importance of Information Sources – Industrial Sellers

The respondents selected “salespeople” as the most important way of providinginformation to customers and prospects. Second came “company catalogues”.“Advertising in industrial and trade magazines” was ranked third and “trade shows”fourth. Finally “direct mail” was ranked “least important” among industrial sellers. Asstated earlier, the major components in the industrial communication mix are accordingto Morris (1992) personal selling, advertising, sales promotion, and public relations.Personal selling is usually the cornerstone in the communication effort, whileadvertising, sales promotion and public relation generally fill supporting roles in theindustrial communication mix. Further Morris lists what he refers to as, “key industrialcommunication tools” (pp 409-410). These are presented and explained below;

� General business publications – Large circulation magazines are aimed at a widevariety of markets and buying influences.

� Trade publications (vertical and horizontal) – Vertical publications are directedtoward a specific industry and its members. Horizontal publications are directedtowards a specific task, function, or area of concentration across multiple industries.

� Industrial directories – A compiled list of known suppliers within a large variety ofproduct areas intended for use as a reference group for industrial buyers. There aregeneral directories covering most industries, directories for individual states, andprivate directories.

� Trade shows – A formal exhibition at which a supplier rents space to introduce anddisplay its products and make sales. Competitors’ products are also demonstrated atthese exhibitions. Personal contacts with a large number of prospective and presentcustomers in the industry can be established in a short period of time and in onelocation.

� Catalogues – Printed material containing information describing a supplier’sproducts, their applications, and other product specifications (e.g., price) distributedamong organisational buying influences for use as a reference and buying guide.

Source: Adapted from Patti (1977), p. 262

Rank Information Source1 Salespeople2 Company Catalogues

3Advertising in Industrial and TradeMagazines

4 Trade Shows5 Direct Mail


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Catalogues often contain enough information so the buyer can purchase productsdirect from them.

� Direct mail – Letters or brochures sent to selected buying influences to provideinformation on a supplier and its products or services. This types of media enables amarketer to relay personalised messages to these influences.

� Videos – A film illustrating the use and benefits of a company’s products orservices. These are given to customer organisations for viewing in-house on a VCR.

� Technical reports – Written, detailed description of product design specificationsand performance capabilities. Results of product testing are summarised, includingdata on quality and reliability.

� Samples – Products given to certain customers on a trail basis for the purpose ofpromoting and demonstrating a supplier’s product.

� Publicity – A presentation of company and product information for which themarketer does not pay and does not control. These presentations appear in mediaforms (e.g., newspapers, trade journals) that can increase public awareness and candevelop a favourable image for an organisation.

� Novelties – Free gifts such as calendars, pens, and paperweights that are imprintedwith a company’s name and possibly an advertising message. These small usefulitems are given to customers as a reminder of a supplier and its products or services.

� Telemarketing – Using the telephone to find out about a prospect’s interest in thecompany’s products, to create an awareness or understanding of those products, andeven to make a sales presentation or take an order.

Examples of key industrial communication tools are described above, while Jacobson(1990) depicts how marketing dollars are being allocated to these tools in Table 2.2.

Table 2.2 Allocation of Money Spent on Marketing in Industrial Firms

The study showed that most money was spent on “advertising in specialised businesspublications”, after that came “trade show, exhibits, displays” and on third place came“catalogues, technical bulletins”.

2.2 The Web as a Marketing Communication Tool

There has been an explosive growth in the number of business using the Internet inrecent years. (Ranchhod, 1998) The Internet is an electronic medium based on

Rank Industrial Communication Tools1 Specialised Business Publications Advertising2 Trade Shows, Exhibits, Displays3 Catalogues, Technical Bulletins4 Direct Mail5 All Other Advertising, TV and Radio, Newspapers6 Dealer Distributor Materials7 General Magazine Advertising8 Publicity and Public Relations9 Directories, Yellow Pages

Source: Adapted from Jacobsson (1990), p. 31


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broadcasting and publishing which facilitates two-way communication. (Berthon, Pitt &Watson, 1996) It enables prospective customers to enter into a direct communicationwith the firm’s information workers and make a case regarding their needs and theirunique problems. (Samli, Willis & Herbig, 1997) These exchanges are not physicallyface-to-face, nor time bound. Essentially the communication is through computers onnetworks, so that individuals and organisations can communicate directly with oneanother regardless of where they are or when they wish to communicate. (Berthon et al.,1998) The Internet enables the seller to provide information, and even sellingopportunities, through an extremely inexpensive medium. (Boyle & Alwitt, 1999)

The Internet can be used to conduct marketing research, reach new markets, servecustomers better, distribute products faster, solve customer problems, and communicatemore efficiently with business partners. It is also a useful tool for gathering intelligenceon customers, competitors, and potential markets. (Honeycutt, Flaherty & Benassi,1998)

Many firms are bringing a global edge to provincial businesses by adopting the WWW.Incorporating the WWW into a firm’s business strategy eliminates a number of nationaland global market entry barriers, such as marketing costs, distribution, and shelf-spaceacquisition. (ibid) The Web offers marketers the ability to make available full-colourvirtual catalogues, provide on-screen order forms, offer on-line customer support,announce and even distribute certain products easily, and to elicit customer feedback. Ithas introduced a much broader audience to the net, and also allows any one(organisation or individual) to have a 24-hour-a-day presence on the Internet. (Berthonet al., 1998)

From an industrial marketing perspective, the Web has a lot in common with a tradeshow, for it can be thought of as a very large international exhibition hall wherepotential buyers can enter at will and visit exhibitors and prospective sellers. (ibid)Berthon et al. (1998) state that the Web is a new medium characterised by many factors.They list ease of entry, relatively low set-up costs, globalness, time independence, andinteractivity.

2.2.1 The Role of the Web Site in the Marketing Communication Mix

The Web site is something of a mix between direct selling (it can engage the visitor in adialogue) and advertising (it can be designed to generate awareness, explain/demonstrate the product, and provide information –without interactive involvement). Itcan play a cost-effective role in the communication mix, in the early stages of thebuying process – need recognition, development of product specifications and suppliersearch, but can also be useful as the buying process progresses toward evaluation andselection, particularly as there are no middle parties to disrupt the communicationprocess involved in the final transaction. The Web site is also cost-effective inproviding feedback on product/service performance and might typically be viewed ascomplementary to the direct selling activity by industrial marketers, and assupplementary to advertising. (Berthon et al., 1998)

Different organisations may have different marketing objectives for establishing andmaintaining a Web presence. One organisation might wish to use the Web as a means ofintroducing itself and its new products to a potentially wide, international audience. The


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objectives should be to create corporate and product awareness, and inform the market.In this sense the Web provides businesses with the opportunity to expand the potentialcustomer base at the global level, at minimal expense. (ibid)

The Web site can be used to move customers and prospects through successive phasesof the buying process. They do this by first attracting net surfers, making contact withinterested surfers (among those attracted), qualifying/converting a portion of theinterested contacts into interactive customers, and keeping these interactive customersinteractive. Different tactical variables, both directly related to the Web site, as well asto other elements of this conversion process: for example, hot links (electronic links thatlink a particular site to and from other relevant and related sites) may be critical inattracting surfers. Once attracted, it may be the level of interactivity on the site that willbe critical to making these surfers interactive. (ibid)

2.2.2 The Web Site as a Communication Tool

Experts advise that Web marketing differ from traditional marketing. This mediumrequires a paradigm shift because marketing over the Internet is similar to traditionalperson-to-person networking where the quality of the information provided and thecredibility of the organisation doing the offering are everything. (Honeycutt et al., 1998)

Industry experts suggest that a Web site must have clear and consistent information thatis constantly revised and updated. The firm must differentiate the Web site so it differsfrom others. Like all other marketing media, customers compare the value of the firm’sinformation and its helpfulness in aiding them in decision making. The cost ofestablishing a Web site varies greatly, depending upon the firm’s initial goals and in-house expertise. The type of Internet connection is also an important initial cost factorto consider. (ibid)

The Internet provides enhanced communicative effencies among producers and buyers.(Boyle & Alwitt, 1999) The Internet provides various tools for improving or supportingcommunications with the different actors in the firm’s international network includinge-mail, Usenet and listserv groups, Internet relay chat, video conferencing et cetera.(Hamill & Gregory, 1997)

Firms are setting up their homepages as a means of disseminating useful company andspecific product in formation to potential customers and encouraging customer feedbackand interaction. A good Web site can be used for advertising, corporate visibility, brandname, recognition, public relations, press releases, corporate sponsorship, direct sales,customer support and technical assistance. (ibid)

2.2.3 Benefits and Potential Drawbacks of the Web as a Communication Tool

Benefits

The two-way direct communication between customer and information workers offeredby the Internet is more effective than the traditional method of talking to the seller’sinformation workers via its salespeople. The Web offers some major benefits accordingto Samli et al. (1997) such as:


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� No middle parties (intermediaries) that may disrupt the communication or provideinterference or noise in the communication process are involved in the transaction.

� Visual communication in writing has long-lasting duration. The parties can work onit and get back together at their discretion.

� No physical intimidation exists to be triggered by personalities, their respectiveperformances, or their knowledge basis.

� Flexible time and immediate response are extremely beneficial in an involved, time-consuming, and complicated negotiation process. The Internet never sleeps and login all calls, allows one to work when one wishes and, vice versa, to not work whenone wishes. A message can be transmitted to literally hundreds if not thousands ofpeople at the touch of a keystroke.

� Cost advantages exist in that all calls no matter to whom or where, are though alocal access telephone number. In essence, using the Internet has changedcommunication costs from an uncertain variable cost to a forecastable fixed cost. E-mail via the Internet is much cheaper and faster than even fax.

� The ability to carry on a detailed two-way communication may have a specialimpact on the creativity of all of the parties involved. In fact, some ideas may neversurface unless such a communication setting is in place and used properly.

Potential Drawbacks

It is naive to presume that the Internet is perfect and presents no operational problems.Some of the potential problems that already have been identified for the Internet includeaccording to Samli et al. (1997):� Response time – more than 99,9% of properly addressed first-class mail makes it to

its destination and the response time is long.� User unfriendliness – the Internet may be the world’s most incredible library but it

is a library without a card catalogue or a librarian in sight. No maps, no signs, nolane lines. The surface can be skimmed or dived as deep into as wanted, but withoutproper equipment and training it can lead to that a visitor drown in the informationavailable.

� Junk mail – e-mail has become so popular that managers now have to worry aboutsorting through hundreds of messages a day to find the few nuggets of wisdom.

� Fraud or criminal access – the fraudulent use of telephone credit cards and carphones/portable phones shows how easy it is to gain access to codes and to enter thetelecommunications system at someone else’s expense. The Internet is no different.

� Government regulation and censorship – as part of the larger telecommunicationsreform bill, legislation that would outlaw harassment and indecent or pornographicmaterial that is transmitted through all telecommunications devices has beenintroduced. The form and severity of inevitable governmental regulation andinterference will influence the final design and usability of the Internet.

� Limited access – to make efficient use of the technology, both parties must haveaccess to the Internet.

� Face-to-face – Since almost 90% of all information is received non-verbally (that isfrom facial or body language cues or how it is said, not what is said), the purelyverbal content of Internet messages can not convey all the information that actuallyexists.


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2.2.4 Promoting Web Sites with Other Media

The cross-fertilisation between the Web site and other traditional marketing media isvery important to the success of the Web site. The URL and the e-mail address shouldbe placed somewhere in every print-media advertisement that is made such asmagazines, newspaper, and newsletter. The Internet provides an exciting and enjoyableexperience for most users – those that might ignore the information in the traditionalprint ads may be intrigued with seeing your Web site. The presence of Internetaddresses on printed materials projects a modern, up-to-date image for a company, evento those who do not use the Internet. Other media that can be used to promote a Website are; the business card – putting the URL on all office stationery and on businesscards can stimulate interests and conversation, radio spots, and TV commercials –television advertising is starting to show URLs and e-mail addresses and should bedisplayed long enough for the viewer to write them down correctly. (Ellsworth &Ellsworth, 1997) Web site activities must be integrated with the rest of the company’smarketing program. The site must be continually promoted not just when it is firstlaunched. (Evans & King, 1999)

2.2.5 The Web Site and the Buying Process

Berthon et al. (1998, p. 693) augments the knowledge concerning trade shows aspromotional tools in the business environment. Further the authors’ presents thepossible role of the Web site as an industrial marketing promotional tool compared totraditional tools during the stages of the buying process, shown in figure 2.1 on the nextpage.

The industrial buying process can be thought of as a series of stages (left hand of figure2.1) the buyer’s information needs differ at each stage, and therefore, so do thecommunication tasks of the industrial marketer. These tasks can be mapped againstthese stages, through a series of communication objectives. The relative effectiveness(low, medium, and high) of a particular marketing communication tool is shown on theright hand side of figure 2.1. So for example, generating awareness of a new industrialproduct might be most effectively achieved through advertising in trade journals, whilstclosing a sale would best be achieved face-to-face, in a selling transaction. Industrialmarketers employ a mix of communication tools to achieve various objectives in themarketing communication process, judiciously combining advertising and personalselling, although leaning most heavily towards the latter in the majority of cases.(Berthon et al., 1998)


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Figure 2.1 The Web Site as Part of the Marketing Communication MixSource: Berthon et al. (1998), p. 694

Berthon et al. (1998, p. 694) posit that the profile of a trade show on figure 2.1 would besomewhere “down the middle” – that is, less effective than broadcast advertising andachieving awareness, but more effective that personal selling; less proficient at closingsales than personal selling, but much more so than broadcast advertising. FurtherBerthon et al. (1998) states that a Web site would play a role of complementing bothadvertising and personal selling efforts for the industrial marketer.

It is probable that many industrial marketers are on the Web simply because it isrelatively quick and easy, and because they fear that the consequences of not having apresence will outweigh whatever might be the outcomes of a hastily ill-conceivedpresence. This lack of clear and quantified objectives, understanding, and the absence ofa unified framework for evaluating performance, may have compelled decision makersto rely on intuition, imitation, and experience when conceptualising, developing,designing and implementing Web site. (ibid)

2.3 Integrated Marketing Communications

Although integrated marketing communications has become increasingly well known inthe 1990s on an international scale, there is not yet a common understanding of its fullscope nor of its exact definition. This is in spite of the individual words “integrated”,“marketing” and “communication” being relatively clear. (Smith et al., 1998) illustratesome important elements of a range of definitions, presented on the next page.

PersonalSelling

Advertising1. Anticipation of recognition of a problem andgeneral solution.

Web Site

2. Determination of characteristics and quantityof needed item.

3. Description of characteristics and quantity ofneeded item

5. Acquisition and analysis of proposals.

6. Evaluation of proposal and selection ofsuppliers

7. Selection of an order routine

8. Performance feedback and evaluation

Buy - StageEffectiveness of Marketing

Communication Tool

Low HighMedium

4. Search for and qualification of potentialsources


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Definition 1:“The management and control of all market communications.”

Definition 2:“Ensuring that the brand positioning, personality and message are deliveredsynergistically across every element of communication and are delivered from asingle consistent strategy.”

Definition 3:“The strategic analysis, choice, implementation and control of all elements ofmarketing communications which efficiently, economically and effectively influencetransactions between an organisation and its existing and potential customers andclients.”

Although definition 3 is the most comprehensive there are common elements to all threedefinitions. The main elements are a reference to all marketing communications; thedescription of a strategic management process; the reference to an economic, efficientand effective process; it is clear also that the process can be applied to any type oforganisation. (Smith et al., 1998)

IMC is both a concept and a process and the degree of integration within eachdimension can greatly vary. An organisation that has an IMC philosophy may or maynot physically integrate into one department the people responsible for the variousmarketing communications functions, although the trend is to do so. (Duncan & Everett,1993) The basic concept of IMC is synergism, meaning the individual efforts aremutually reinforcing with the resulting effect being greater that if each functional areahad selected its own targets, chosen its own message strategy, and set it own mediaschedule and timing. (ibid)

Percy (1997) strongly believes that the key to IMC is planning, and the ability to delivera consistent message. He further states that it is a good idea to think about all of themarketing communications needs in an integrated way, ensuring what has becomeknown as the “one-voice, one-look approach” to how a brand, company, or service ispresented. Unintegrated communications activities can result in different messagesbeing sent out through different media. This in turn dilutes the message impact, splintersthe image and sometimes generates plain of confusion in the buyer’s mind. A strategicdecision to integrate the communication tools increases the communications’effectiveness. Similarly, a longer-term strategic decision to build a database for directmarketing purposes can also create competitive advantage. (Smith, 1998)

2.3.1 Benefits and Barriers to Integrated Marketing Communication

Benefits

Although IMC requires a lot of effort it delivers many benefits. It can create competitiveadvantage, and boost sales and profits, while saving time, money and stress. (Smith,1998)

� IMC can wrap communications around customers and help them move through thevarious stages of the buying process. The organisation simultaneously consolidates


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its image, develops a dialogue and nurtures its relationship with customers. This“relationship marketing” cements a bond of loyalty with customers that can protectthem from the inevitable onslaught of competition. The ability to keep a customerfor life is a powerful competitive advantage. (ibid)

� IMC also increases profits through increased effectiveness. At its most basic level, aunified message has more impact than a disjointed myriad of messages. In a busyworld a consistent, consolidated and crystal-clear message that bombard customerseach and every day. At another level, initial research suggest that images shared inadvertising and direct mail boost both advertising awareness and mail shotresponses. So IMC can boost sales by stretching messages across severalcommunication tools to create more avenues for customer to become aware, arousedand, ultimately, make a purchase. (ibid)

� Carefully linked messages also help buyers by giving them reminders, updatedinformation and special offer which, when presented in a planned sequence, helpthem move comfortably through the stages of the buying process – and this reducestheir “misery of choice” generated by the wide range of competitive offerings. (ibid)

� IMC also makes messages more consistent and therefore more credible. Thisreduces risk in the mind of the buyer which, in turn, shortens the search process andhelps to dictate the outcome of brand comparisons. (ibid)

� Unintegrated messages send disjointed messages that dilute the impact of themessage. This may also confuse, frustrate and arouse anxiety in customers.Integrated communications present a reassuring sense of order. Consistent imagesand relevant, useful messages help nurture long-term relationships with customers.Here, customer databases can identify precisely which customers need whatinformation when and throughout their whole buying life. IMC saves money, as iteliminates duplication in areas such as graphics and photography since they can beshared and used in, advertising, exhibitions and sales literature. (ibid)

� By using a single agency for all communications agency fees are reduced. And evenif there are several agencies times is saved when meeting bring all the agenciestogether – for briefings, creative sessions, tactical or strategic planning. This reducesworkload and subsequent stress levels. (ibid)

Barriers

Despite its many benefits IMC has many barriers. In addition to the usual resistance tochange and the special problems of communicating with a wide variety of targetaudiences, there are many other obstacles, which restrict IMC. These include: functionalsilos; stifled creativity; time scale conflicts and a lack of management know how.(Smith, 1998)

� Rigid organisational structures are ingested with managers who protect both theirbudgets and their power base. “Why should they share their budgets and allowsomeone else to make decisions which previously were theirs? “ (ibid)


26

� Sadly, some organisational structures isolate communications, data, and evenmanagers from each other; for example the PR department often doesn’t report tomarketing, the sale force rarely meet the advertising or sale promotion people, andso on. Imagine what can happen when sales reps are not told about a newpromotional offer! And all of this can be aggravated by turf wars or internal powerbattles where specific managers resist having some of their decisions (and budgets)determined or even influenced by someone from another department. (ibid)

� Here are two difficult questions – What should a truly integrated marketingdepartment look like? And how will it affect creativity? It shouldn’t matter whosecreative idea it is, but often it does. An advertising agency may not be soenthusiastic about developing a creative idea generated by, say, a PR or a directmarketing consultant. IMC can restrict creativity. No more wild and wacky salespromotions unless they fit into the overall marketing communication strategy. Thejoy of rampant creativity may be stifled, but the creative challenge may be greaterand ultimately more satisfying within a tighter, integrated, creative brief. (ibid)

� Add different time scales into a creative brief and you’ll see time horizons provideone more barrier to IMC. For example, imagine advertising, designed to nature thebrand over the longer term, may conflict with shorter-term advertising or salespromotions designed to boost quarterly sales. The two objectives can beaccommodated within an overall IMC if carefully planed, but this kind of planningis not common. A survey in the mid-1990s revealed that most American mangerslack expertise in IMC. But it’s not just managers, it’s also agencies and there is aproliferation of single discipline agencies. There appear to be very few people whohave real experience of all the marketing communications disciplines. This lack ofknow-how is then compound by a lack of commitment. (ibid)

2.3.2 Ten Golden Rules in Integrated Marketing Communication

Smith (1998) lists ten golden rules within integrated marketing communication. Theseare:1. Get senior management support - Get senior management support for the initiative

by ensuring firstly that they understand the benefits of integration, and secondly thatthey support its implementation.

2. Practise vertical and horizontal integration - Put integration on the agenda formeetings of different levels of management and different types of meetings –whether creative sessions or annual reviews. Ensure that it is implementedhorizontally, that all managers, not just marketing managers, understand theimportance of a consistent message, whether on delivery trucks or through productquality. Ensure also that advertising, PR, sales promotion and other communicationsmeans meet and work together and really integrate their message.

3. Use design manual and brand book - Ensure design manual is used to maintaincommon visual standards for the use of logos, typefaces, colours and the brand bookis used to maintain a consistent brand personality across all communications.


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4. Focus on a clear marketing communications strategy - Have crystal-clearcommunications objectives and positioning statements and link core brand valuesinto every communication. Ensure that all communications reinforce, reiterate andadd value to (instead of deleting) the brand. Exploit areas of competitive strengthand advantage.

5. Start with a zero budget - Build a budget and the communications plan around whatyou need to do to achieve your objectives. Then practise what simply has to bedone.

6. Think customers first - Identify the stages a customer goes through before, duringand after a purchase. Develop a sequence of communication activities, which willhelp the customer more favourably through each stage. Design communicationaround the customer’s buying process.

7. Build relationships and brand values - All communications should help to developstronger relations’ whit customers. Ask how each communication tool helps to dothis. Customers’ retention is sometimes given more importance than customeracquisition. Ensue that each communication strengthens the brand value.

8. Develop a good marketing information system (MkIS) - The MkIS should definewho needs what information when integrated marketing communicationsencourages the development of a system which defines, collects and shares vitalinformation. A customer database, for example, can help direct mail, telesales andthe salesforce to help each other.

9. Share artwork and other media - Consider how artwork for one communicationtool (e.g. advertising) can be used in mailshots, exhibitions, point of sale, packaging,new releases, newsletters, Christmas cards and even the Internet.

10. Learn from experience - Be prepared to change it all. Constantly search for theoptimum integrated communications mix. Test and improve each year.

2.3.3 Studies on Integrated Marketing Communication

McArthur and Griffin (1997) conducted a study on U.S. firms were advertising andmarketing executives were given a list of 13 advertising and marketing subjects,including IMC, and asked to rank each on a 5-point scale in terms of receiving theirtime and attention during the past year. In Table 2.3, the mean score for business firmsare plotted on a scale of 5 (“receiving a lot of attention”) to 1 (“receiving very littleattention”) for the 13 subjects.

The findings of the study showed that IMC was a subject that received major attentionfor business firms. The subject that was giving the lowest attention was national/localadvertising ratio.


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Table 2.3 Time and Attention Devoted to Selected Advertising and MarketingSubjects

In a related study McArthur and Griffin (1997) conducted a study in which they gavethe respondents the opportunity to relate which of 13 specific communicationalternatives were considered and to what extent when a campaign was being planned.Against each alternative they had the opportunity to check one of four possibilities:“always”, “frequently”, “seldom”, or “never”. The findings are set forth in Table 2.4 onthe next page.

Time and Attention Devoted to SelectedAdvertising and Marketing Subjects

Mean ScoresRanked 1-5

Integrated Marketing Communications 3,7

Ad Effect on sales 2,7

Division of AD $ among Media Alternatives 2,8

Mass Media Efficiency 2,65

Changes in Customer Activities,Interests, Lifestyles

3,15

Ad $ / Market Share Ratio 2,6

Relationship Marketing 2,8

Special Events 3,3

Allocate Promo $ 3,15

Comparative Advertising 2,5

Interactive Media/Marketing 2,5

Social Influences of Advertisements 2,4

Source: Adapted from McArthur and Griffin (1997), p. 21


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Table 2.4 Marketing Communications Alternatives: Percent Considered“Always” or “Frequently” in Campaign Planning

The study showed that there is a substantial variance among the various alternatives.Most frequently considered in campaign planning were “public relations”, “productpublicity”, “trade publications”, and “exhibits/shows”. (McArthur & Griffin, 1997)

Alternatives for MarketingCommunications

PercentConsidered

"Always" or "Frequently"

Public Relations 92

Product Publicity 92

Trade Publications 90

Exhibitions/ Shows 90

Direct response 71

Collateral Material 61

Trade Promotion 60

P-o-S Material 60

End-User Programs 54

Personal Selling 53

Mass Media 52

Special Events 49

Telecommunications 40

Source: Adapted from McArthur and Griffin (1997), p. 22

Chapter 3 Conceptualisation and Emerged Frame of Reference

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3 CONCEPTUALISATION AND EMERGED FRAME OFREFERENCE

his chapter includes the conceptualisation and the emerged frame of referenceof this study. The conceptualisation allows us to answer this study’s researchquestions. The frame of reference, which results from this conceptualisation,will guide the data collection in this study.

3.1 Conceptualisation

Miles and Huberman (1994), state that a conceptual framework (i.e. frame of reference),“explains, either graphically or in narrative form, the main things to be studied” (p. 18).The authors also point out that it is often easier to generate a conceptual frameworkafter you have made a list of research questions, which we have done in this study.

The first question focuses on how a business-to-business firm’s use of the traditionalmarketing communication tools can be described. The second question deals with how abusiness-to-business firm’s use of the Website as a marketing communication tool canbe described. The final research question involves how a business-to-business firmintegrates the marketing communication tools.

Based on our research questions we have conceptualised the theory, which we will relyon in the investigation, into a conceptualisation that will serve as foundation to the datacollection.

3.1.1 Research Question One, How Can a Business-to-Business Firm’s Use of theTraditional Marketing Communication Tools be Described?

Regarding the first research question we are going to use the below listed authorsprevious studies in order to be able to collect data based on our research questions. Weare going to use below listed authors and combine their previous studies into an eclecticlist (i.e. composed of elements drawn from various sources), which we are going to useto collect the data for chapter five. The eclectic list is based on Smith (1998) and thenfilled in with the rest of the authors Boddewyn and Leardi (1989), Foster (1998), Smithet al., (1998), Baker (1994), Wilcox et al., (1997) previous studies in order to receive amore detailed list. We decided to use Smith (1998) since his list was the most extensiveone. Further personal selling, advertising, sales promotion, and public relations, themajor components of the industrial marketing communication mix are going to beinvestigated more deeply than the rest of the communication tools. The reason for thisselection is because these are the most commonly used communication tools and arewidely recognised and used by scholars, as stated by Morris (1992).

� Personal sellingPersonal selling could include face-to-face sales calls/meetings, telephone sales calls,videoconferencing, and conferences/seminars.

� AdvertisingAdvertising could include newspapers, direct mail, catalogues, technical reports, videos,branch magazines (trade journals, business magazines).

T


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� Sales promotionSales promotion could include premiums, price, gifts/free sampling, competitions, andsales force promotion.

� Public relationsThe basic components of public relations include; media relations/publicity,employee/member relations, community relations, financial relations /investor relations/shareholder relations, industry relations, and special events.

� SponsorshipDifferent kind of sponsorship could include sports teams, cultural programmes, arts,education, community, and broadcast.

� ExhibitionsExhibition planning skills require the manager to select the right shows, train exhibitionstaff, and ensure follow-up.

� PackagingPackaging could include specific design and improvement of packaging.

� Word of mouthOf all the elements of the communications mix, word of mouth (WOM) is by far themost potent on a one-to-one basis. No amount of advertising or expert selling couldcompete with a colleague or friend recommending or criticising a particular product orservice.

� Corporate identityCorporate identity could include logotype/name on “permanent media”, buildings,vehicles, uniforms, business forms, and literature.

3.1.2 Research Question Two, How Can a Business-to-Business Firm’s Use of theWebsite as a Marketing Communication Tool be Described?

To be able to collect data to the second research question we will use Hamill andGregory (1997), Berthon et al., (1998), and Ellsworth and Ellsworth (1997) previousstudies on the Website as a communication tool. These studies will then be turned intoan eclectic list that we will use during the data collection. The reason for the selection ofthese authors is that these authors’ studies are the most recent and comprehensive ones.

� The use of the WebsiteThe Website could be used to inform the market, hot links, provide full-colour virtualcatalogues, on-screen order forms, online customer support/feedback, demonstrateproducts, corporate visibility/brand name, and technical assistance.

� The function of the WebsiteIt can function as a complementary or as a supplementary to the other communicationtools.


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� Reasons for being on the WebThe reasons for being on the web could be that it is quick and easy or of fear of theconsequences of not having a presence.

� Media used to promote the WebsiteMedia that can be used to promote the Website are every print-media such asmagazines, newspapers, newsletters, and the business card.

3.1.3 Research Question Three, How Does a Business-to-Business Firm Integratethe Marketing Communication Tools?

Concerning the third research question, below presented authors’ studies on integratedmarketing communication will be used in order to be able to collect data based on ourresearch questions. The authors we will use are Smith (1998) and McArthur and Griffin(1997). The reason for this selection is that these studies are the most comprehensiveand recent ones.

Smith (1998) presents ten golden rules in integrated marketing communication. Theseare;� Get senior management support� Practise vertical and horizontal integration� Use design manual and brand book� Focus on a clear marketing communications strategy� Start with a zero budget� Think customers first� Build relationships and brand values� Develop a good marketing information system (MkIS).� Share artwork and other media� Learn from experience

McArthur and Griffin (1997) conducted two studies on integrated marketing. The firststudy’s findings showed the importance of integrated marketing. The second studyshowed that the most commonly used communication tools when planning a campaignwere public relations/publicity, trade publications (what we refer to as advertising), andexhibitions/shows.


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3.2 Emerged Frame of Reference

As pointed out earlier in this chapter, the conceptualisation above is what will allow usto answer this study's research questions. Based on the research questions and thepurpose of this thesis stated in chapter one, we have created a frame of reference. Thisframe of reference which also results from this conceptualisation, is what will guide thisstudy's data collection. The frame of reference is presented in figure 3.1 below.

Figure 3.1 The Frame of Reference of this StudySource: Olander & Sehlin (2000)

The emerged frame of reference shows the connection between the research questions.The industrial marketer can choose to use a variety of different traditionalcommunication tools in the way she/he communicates with the market. The marketercan also choose to use the Website as a marketing communication tool in the marketcommunication. The arrow between the two squares symbolises that the Website couldcomplement the other traditional communication tools and that the traditionalcommunication tools can promote the Website. The marketer can also choose tointegrate the communication tools in the communication mix in order to create a biggerimpact of the message that is sent out to the customers.

RQ 1TraditionalMarketing

CommunicationTools

RQ 2The Web Site as a

MarketingCommunication

Tool

RQ 3Integration

Chapter 4 Methodology

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4 METHODOLOGY

his chapter covers the research methodology that will be used for collecting thedata necessary to obtain answers to the research questions. In order to do this aseries of steps will be followed. These methodological issues are presentedbelow in figure 4.1, which show a graphical overview of the methodologyissues used in this study.

Figure 4.1 A Graphical Overview of the Methodological Issues for this StudySource: Adapted from Foster (1998), p. 81

4.1 Purpose of Research

A research can be classified into three basic purposes exploratory, descriptive andexplanatory. (Yin, 1994)

� An exploratory stage is a research that is designed to allow an investigator to just“look around” with respect to some phenomenon, with the aim being to developsuggestive ideas. The research should be as flexible as possible and conducted insuch a way as to provide guidance for procedures to be employed during the nextstage.

� The objective of a descriptive stage is to develop careful descriptions of patternsthat were suspected in the exploratory research. The purpose may be to developintersubjective descriptions (i.e. empirical generalisations). Once suchgeneralisations begin to emerge, they are thus worth, explaining, which of courseleads to theory development in the long run.

� The purpose of an explanatory stage is to develop explicit theory that can be used toexplain the empirical generalisations that evolved from the second stage. (Reynolds,1971) This provides a cycle then of: (1) theory construction; (2) theory testing(attempt to falsify with empirical research); and (3) theory reformulation (back tostep one). (Reynolds, 1971) Explanatory research is a casual research that is used toexplain a certain set of events and to indicate how the investigation may apply toother investigations. (Yin, 1994)

Based on the purpose and the research questions involved the overall purpose of thisstudy will be to explore, describe and to a certain degree begin to explain. We areexploring what our purpose brings up, describing what is brought up with the researchquestions and are beginning to explain since we are drawing conclusions (i.e. answer

TValidity and Reliability

ResearchPurpose

ResearchApproach

ResearchStrategy

DataCollection

SampleSelection

DataAnalysis


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the research questions). This study is more exploratory and descriptive thanexplanatory.

4.2 Research Approach

Qualitative and Quantitative Methods

In the social sciences there are two different methodological approaches, qualitative andquantitative (Holme & Solvang, 1997). Both approaches have their strengths andweaknesses and neither one of the approaches can be held better than the other can. Thebest research method to use for a study depends on that studies research problem andthe accompanying research questions. (Yin, 1994) According to Holme and Solvang(1997), the general picture that qualitative methods can give, makes it possible to get anadditional understanding of social processes and relations. One typical characteristic ofqualitative studies is that they to a large extent are founded on description, that is, on theinvolved person’s own description, emotions and reactions (Yin, 1994). A quantitativeresearch is generally considered to be the only approach that gives an objective truth,because it converts information into numbers. The method is generally used when theresearcher conducts a wide investigation that contains many units. The researcher musthave a distance to the investigated object to reach a satisfying degree of objectivity.(Holme & Solvang, 1997)

We have used a qualitative method when conducting our empirical study because it wasthe alternative that best suited our research questions. We found that looking deeper andmore in detail at a few companies way of using and integrate the differentcommunication tools in their communication mix will help us answer our researchquestions better than doing a superficial investigation, as can be achieved whenconducting a quantitative approach.

4.3 Research Strategy

According to Yin (1994) there are five primary research strategies in the social sciences.These include experiments, surveys, archival analysis, histories, and case studies.Which one of these five strategies that are most suited for a study, depends on the typeof research question, the degree of control the researcher has over the study, andwhether the study has its focus on contemporary events. Figure 4.1 on the next pageshows relevant situations for the different research strategies.

An experiment is not appropriate in this study because we have no intention toinvestigate cause/effect relations, which an experiment often is used for. Another reasonfor not selecting experiment is that it demands control over behavioural event, which isnot possible in a study like this. Archival analysis is based on secondary data. We didnot collect any secondary data concerning companies use and integrating of thecommunication tools in their communication mix, therefore was archival analysis as aresearch strategy not appropriate in this study. Histories is neither suitable as method ofdata collection since it lacks focus on contemporary events, which this thesis is focusedon.


36

A survey was not suitable since it would have limited the investigation because wewould not be able to study the selected area in detail. Further is the character of thisthesis to study a large number of variables on a few numbers of units (companies),which a survey would not have enabled us to do. Finally another reason for notselecting survey as research strategy is because we do not have time to conduct surveyson larger samples.

Table 4.1 Relevant Situations for Different Research Strategies

According to Yin (1994), a case study approach should be used when how or whyquestions are being posed about a contemporary set of events over which the researcherhas little if any control. This study is based on research questions of how character andfocuses on contemporary sets of events, therefore we thought that a case study was themost suitable research strategy for this study.

Yin, (1994) states that a study may contains more than a single case. When this occursthe study has to use a multiple-case design. Multiple-case designs have distinctadvantages and disadvantages in comparison with single-case designs. The evidencefrom multiple cases is often considered more compelling, and the overall study istherefore regarded as being more robust. In this study we have choose to use multiplecases in order to be able to generalise and to draw more specific conclusions.

StrategyForm

of ResearchQuestion

Requires Controlover Behavioural

Events

Focuses onContemporary

Events

Experiment How, Why? YES YES

SurveyWho, What, Where,

How Many, How Much? NO YES

Archival Analysis Who, What, Where,How Many, How Much? NO YES/NO

History How, Why? NO NO

Case Study How, Why? NO YES

Source: Adapted from Yin (1994), p. 6


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4.4 Data Collection Method

According to Yin, (1994) data for case studies can be collected from six sources:documents, archival records, interviews, direct observation, participant-observation, andphysical artifacts. The use of these six sources of evidence calls for slightly differentskills and methodological procedures. In the figure 4.2 on the next page an overview ofthe six major sources of evidence is presented together with their comparative strengthsand weaknesses.

Table 4.2 Sources of Evidence

Documentation can take many forms and should be the object of explicit data collectionplans. There are a variety of documents such as letters, agendas, administrative

Source of Evidence STRENGTHS WEAKNESSES

Documentation• Stable: can be reviewed

repeatedly• Unobtrusive: not created as a

result of the case• Exact: contains exact names,

references, and details of anevent

• Broad Coverage: long span oftime, many events, and manysettings

• Retrievability: can be low• Biased selectivity: if collection

is incomplete• Reporting bias: reflects

(unknown) bias of author• Access: may be deliberately

blocked

Archival Records• (Same as above for

documentation)• Precise and quantitative

• (Same as above fordocumentation)

• Accessibility due to privacyreasons

Interviews

• Targeted: focuses directly oncase study topic

• Insightful: provides perceivedcausal inferences

• Bias due to poorly constructedquestionnaires

• Response bias• Inaccuracies due to poor recall• Reflexivity: interviewee gives

what interviewer wants to hear

DirectObservations

• Reality: covers events in realtime

• Contextual: covers context ofevent

• Time consuming• Selectivity: unless broad

coverage• Reflexivity: event may proceed

differently because it is beingobserved

• Cost: hours needed to humanobservers

ParticipantObservation

• (Same as for directobservations)

• Insightful into interpersonalbehaviour and motives

• (Same as for directobservations)

• Bias due to investigator’smanipulation of events

Physical Artifacts• Insightful into cultural

features• Insightful into technical

operations

• Selectivity• Availability

Source: Yin (1994), p. 80


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documents et cetera. For case studies, the most important use of document is tocorroborate and augment evidence from other sources. Because of their overall value,documents play an explicit role in any data collection in doing case studies. Systematicsearches for relevant documents are important in any data collection plan. (Yin, 1994)In this study we have used documentation in the form of information such as brochuresand other information material, that were handled to us by the interviewed respondents.Therefore documentation is used as data collection method in this study.

Yin, (1994) states that for many case studies, archival records – often in computerisedform may also be relevant. These can be service records, organisational records, mapsand charts, lists of names, survey data, and personal records. These and other archivalrecords can be used in conjunction with other sources of information in producing acase study. Unlike documentary evidence, the usefulness of these archival records willvary from case study to case study. This study has character of being a qualitative study,therefore is the use of archival records not appropriate because it has the strength ofbeing precise and quantitative.

One of the most important sources of case study information is according to Yin, (1994)the interview. The interview may take several forms. Most commonly, case studyinterviews are of an open-ended nature in which you can ask key respondents for thefacts of a matter as well as for the respondents’ opinions about events. The more that arespondent assists in this latter manner, the more that the role may be considered one ofan “informant” rather than a respondent. Key informants are often critical to the successof a case study. The second type of interview is a focused interview, in which arespondent is interviewed for a short period of time – an hour, for example. In suchcases, the interview may still remain open-ended and assume a conversational manner,but you are more likely to be following a certain set of questions, derived from the casestudy protocol. Finally the third type of interview, the structured interview, involvemore of what can be found in survey research, where the interview is guided by a set ofpre-designed questions.

Overall, interviews are an essential source of case study evidence because most casestudies are about human affairs. These human affairs should be reported and interpretedthrough the eyes of specific interviewees, and well-informed respondents can provideimportant insights into a situation. They also can provide shortcuts to the prior historyof the situation, helping you to identify other relevant sources of evidence. Theinterviews should always be considered verbal reports only, since they are subject to thecommon problems of bias, poor recall, and poor or inaccurate articulation. (ibid) In thisstudy we have decided to rely on interviews to collect the data. We found that it was themost suitable method to collect data in order to fulfil the purpose of this study and to beable to answer the research questions. The interview can be classified as a focusedopen-ended interview since the interviews are conducted by a set of questions derivedfrom a case study protocol (i.e. interview guide) from which the respondents is allowedto open and freely discuss his or her opinions and insights.

Direct observations might be made throughout a field visit, including those occasionsduring which other evidence, such as that from interviews, is being collected.Observational evidence is often useful in providing additional information about thetopic being studied. Participant observation is a special mode of observation in whichyou are not merely a passive observer. Instead you may assume a variety of roles withina case study situation and may actually participate in the events being studied. (ibid)


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Direct observation and participant observation was not of interest because of the lack oftime and costs. Another reason for not using direct observation and participantobservation is because the character of this thesis is not to focus on events in real timebut instead to focus on the respondents views of the use of marketing communicationtools in the communication mix.Physical artifacts are a technological device, a tool or instrument, a work of art, or someother physical evidence. Such artifacts have less potential relevance in the most typicalkind of case study. However, when relevant, the artifacts can be an importantcomponent in the overall case. This form of source of evidence is neither usedconsidering the fact that this study does not involve the need to obtain evidence of“cultural features”.

Yin (1994) states, “a major strength of case study data collection is the opportunity touse many different sources of evidence” (p. 91). Yin calls this use of multiple sources ofevidence “triangulation”, which means that the researcher has the opportunity to obtainmultiple measures of the same phenomenon, which in turn adds to the validity of anyscientific study. The use of multiple sources of evidence in case studies allows aninvestigator to address a broader range of historical, attitudinal, and behavioural issues.The most important advantage presented by using multiple sources of evidence is thedevelopment of converging lines of inquiry that is a process of triangulation. Withtriangulation, the potential problems of construct validity also can be addressed, becausethe multiple sources of evidence essentially provide multiple measures of the samephenomenon. (ibid) In this study data will be collected from multiple sources in theform of documentation (i.e. the material that were handled to us by the respondents) andinterviews.

4.5 Sample Selection

This sections purpose is to present the way in which companies, as well as theindividuals within those companies will be selected for this study. In this study sellingfirms within the manufacturing industry will be focused upon, since previous studiesshow that the major growth of the use of the Web is expected to be in the business-to-business area. The criteria for the selection of the sample companies were; (1) that thefirm is a business-to-business firm, (2) that is located in Norrbotten, in the northern ofSweden, and (3) that the firm has got a well developed Website, on which the companypresent extent product information about the product range.

When deciding which companies to choose we contacted Norrbottens chamber ofcommerce, who provided us with a few company names that matched the above statedcriteria. From these companies we choose three companies Plannja AB, Liko AB, andSvalson AB. The reason for the selection was that these companies were the ones thatpresented their products in the best way on the Website and that the companies wereone of the leading companies within its industry.

Two face-to-face interviews were performed at each company with respondents atdifferent positions within the company, the CEO and the marketing manager in two ofthe cases and the information manager and the marketing manager in the third case. Thereason for this selection of respondents was that we, as well as the companies’, believedthat these persons were the most suitable respondents and had the greatest knowledgewithin the selected area.


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4.6 Data Analysis

Yin, (1994) states that every case study should start with a general analytical strategy.These general analytical strategies with regards to case studies provide the researcherwith a system by which she/he can set priorities for what it is they need to analyse andwhy. As Herriott and Firestone (1983) state in Yin, “The evidence from multiple casesis often considered more compelling, and the overall study is therefore regarded asbeing more robust” (p. 45). The way in which the data will be analysed is veryimportant for any research study. For this study it will involve the analysis of theinterviews conducted, as well as the review of any documentation that the firms handedover. These multiple sources of evidence (i.e. triangulation) are what add to a study’svalidity (Yin, 1994).

Further Yin states, that before data actually can be analysed, a researcher using casestudies can choose from two general analytical strategies: relying on theoreticalpropositions and developing a case description. In this study we will rely on theoreticalpropositions, which is the most common strategy according to Yin (pp. 103-104). Theresult of this is the collection of data based on research questions taken from previousstudies that will be analysed with the empirical findings collected from the interviews.

Specific techniques can be used to analyse the data collected from the interviews. Yin(1994) presents two forms of analysis for the data collected in a case study; within-caseanalysis and cross-case analysis. When conducting a within-case analysis the researchercompares the data against the theory used (the frame of reference). A cross-caseanalysis is made by comparing the findings in each case from the within-case analysiswith each other. In our study we will conduct both a within-case analysis and a cross-case analysis. First a within case analysis within each case and then a cross-caseanalysis where the different cases will be compared.

In writing about qualitative data analysis, Miles and Huberman (1994) define dataanalysis, “as consisting of three concurrent flows of activity: data reduction, datadisplay, and conclusion drawing/verification” (p. 10) Upon first obtaining data during a“data collection period”, Miles and Huberman (1994) explain the three stages ofqualitative data analysis as follows:

Data reduction should not be considered to be separate from analysis, but as part of it.This reduction of the data is analysis that helps to sharpen, sort, focus, discard, andorganise the data in a way that allows for “final” conclusions to be drawn and verified.They add that data can be reduced and transformed through such means as selection,summary, paraphrasing, or through being subsumed in a larger pattern. As datareduction we will conduct a within-case analysis where we will compare the collecteddata in each case with the theory in order to see if the data either verifies of falsifiesprevious research.

Data display is the second major activity, which the researcher should go through, andthis means taking the reduced data and displaying it in an organised, compressed way sothat conclusions can be more easily drawn. These authors explain that, “humans are notpowerful processors or large amounts of information”, and that “extended text canoverload humans’ information-processing capabilities” (op. Cit., p. 11, with reference toFaust, 1982). It is further explained that good displays are, “a major avenue to validqualitative analysis” (op. Cit., p. 11). In conclusion, they state that, as with data


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reduction, the creation and use of displays is not separate from analysis, but is a part ofit. As data display we will accomplish a cross-case analysis in which we will makematrices of various data sets and then compare one case to the others. The cross-caseanalysis helps us to further reduce data in order to be able to draw conclusions.

Conclusion drawing and verification is the final analytical activity for the qualitativeresearcher. It is here the researcher begins to decide what things mean. They do this bynothing regularities, patterns, explanations, possible configurations, casual flows, andpropositions. However Miles and Huberman (1994) also add that the competentresearcher should hold such conclusions lightly, while maintaining both openness and adegree of scepticism. First we reduced the collected data by conducting a within-caseanalysis, then we displayed the data, which is done in a cross-case analysis. From suchordered displays, commenting on the pattern that was discovered in the analysis canmore easily state conclusions.

4.7 Validity and Reliability

Validity can shortly be defined as the ability, of the measuring instrument, to measurewhat you really intend to measure. (Carlsson, 1991) There are two kinds of validity,internal and external validity. First, internal validity is a concern only for causal (orexplanatory) case studies, in which an investigator is trying to determine whether anevent led to another. Second, the concern over internal validity, for case study research,may be extended to the broader problem of making inferences.

A case study basically involves an inference every time an event cannot be directlyobserved. External validity deals with the problem of knowing whether a study’sfindings are generalisable beyond the immediate case study. The external validityproblem has been a major barrier in doing case studies. Critics typically state that singlecases offer a poor basis for generalising. Such critics are contrasting the situation tosurvey research, in which a “sample” readily generalises to a larger universe. (Yin,1994)

According to Yin (1994) a good guideline for doing case studies is to conduct theresearch so that an auditor could repeat the procedures and arrive at the same results.The goal of reliability is to minimise the errors and biases in a study. It means that if alater investigator followed exactly the same procedures as described by an earlierinvestigator and conducted the same case study all over again, the later investigatorshould arrive at the same findings and conclusions. (Yin, 1994)

To minimise the errors in this study the interview guide was carefully read through andtested on some students before it was sent to the respondents, in order to let therespondents prepare themselves for the interviews. Resulting-questions were askedduring the interview to be sure that the respondents surely had understood the questions.The interviews were conducted by one of the researchers in order to make theinterviews as similar as possible. The other researcher took notes during the interviewsin order to avoid any mistakes and to be sure that nothing was forgotten. Further theinterviews was recorded on tape and were listened through carefully by the researchersbefore the compiling of the interviews were conducted. The random errors wereminimised since the same interview guide was used in all the interviews. Whenselecting the respondents, consideration was taken to the respondents’ hierarchical


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position in the company, in order to see if they have got the same comprehensionconcerning the use and integration of the communication tools.

In order to improve the external validity we decided to conduct three case studies(multiple case studies) in which we interviewed two respondents at different positionswithin the companies. During the data collection multiple sources of evidence in theform of documentation and interviews, were used which also adds validity to this study.

Chapter 5 Data Presentation

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5 DATA PRESENTATION

his chapter contains the data collected from the three case studies. Each casewill be introduced with a minor introduction about the company, which isfollowed by a presentation of the data collected from the interviews and thedocumentation.

5.1 Plannja AB

Plannja AB operates in the building contractor business. It is situated in Luleå, in thenorthern of Sweden. Plannja AB manufactures tin roofs and is one of the leadingcompanies within the building contractor business in Sweden. The company operatesnot only in Sweden where it has got about 400 employees, but also in the Nordiccountries and in some of the member countries within the European Union. Last year’ssales reached a billion. At Plannja AB the executive chief, Mikael Nyquist (MN), andthe marketing manager, Roland Marklund (RM) were interviewed.


Personal Selling

According to (MN) personal selling is a very effective communication tool in PlannjaAB’s line of business. The company has got about 30 employees that work with salessupport in Sweden. According to both respondents the tools used within personal sellingare face-to-face sales calls/meetings, telephone sales calls and conferences/seminarssince it is a major advantage to be able to create personal relations to the customers. Thecompany does not use videoconferences since it is not appropriate in their ways ofcommunicating with the market. Besides by us listed tools (RM) mentioned kick-offs asanother tool used by the company when presenting new products for the retailers. Therespondents also said that personal selling is an expensive but effective communicationtool, and that nothing is as valuable as a personal contact. (RM) added that the “Plannjacircle” is another way of personal selling. It means that the retailers invest money in thecompany, and in return Plannja AB supports them wholehearted.

Advertising

(MN) considers advertising as a way of strengthening the brand and as a support topersonal selling. Further (MN) stated that they advertise in both newspapers and inbranch magazines (trade journals and business magazines), both alone and together withthe retailers that sell their products. He also mentioned that the advertising is performednation-wide and when advertising globally, Plannja AB uses specific branch magazines.There are video-information cassettes, which are used to demonstrate how to lay a roofand can be obtained from the retailers. Direct mail is considered as a big part of PlannjaAB’s advertising mix by both respondents and is commonly used. Examples can becatalogues that are sent out to the customers that are in the customer record.Miscellaneous is used in the form of leaflet drops, such as brochures and other sell-material for the retailers, and as advertisement supplement/folders. Further both

T


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respondents stated that technical reports or articles are presented in branch magazines atspecial occasions. Besides by us brought up advertising tools (MN) mentioned thatPlannja AB also sends out information CD-ROM’s to the customers in the customerrecord. (BM) considered that advertising is an effective communication tool that canreach many customers and could be quickly implemented. Further he claimed that if onedoes not use advertising, nothing would be sold. (MN) thought that it can be hard todetermine how much money to spend on advertising and that it is hard to measure theeffects of it. Advertising is also an expensive item in the communication mix said (MN)and (RM).

Sales Promotion

Regarding sales promotion (MN) said that is was a small part of the communicationmix. According to both respondents Plannja AB uses premiums, price reductions,gifts/free sampling, and sales force promotion as sales promotion items. Premiums areused in campaigns. For example if you by a product from Plannja AB you get a drill forfree. Price reductions such as quantity rebates are offered to big customers. (MN)brought up that they offer volume related bonus agreement to special customers. Giftsoccurred in a little extension in the form of pens, calculators and wallets. (RM) statedthat free sampling is used in the form of for example colour samples, which is sent tothe customers. As sales force promotion, competitions for the sellers are provided inorder to motivate the sellers. According to (MN) Plannja AB also offers competitionsfor the retailers’ i.e. those retailers who sale the most wins. These competitions aremostly used during specific campaign. Concerning advantages for sales promotion(RM) brought up that sales promotion is a way of getting activity from the customers.

Public Relations

Regarding media relations/publicity both respondents stated that Plannja AB sendspress releases about new products and other news to newspapers and other branchmagazines. (RM) said that with regard to employee/member relations Plannja AB hasgot an internal Website (Intranet) created for internal communication, where forexample information for the employees is presented. They do also provide theemployees with information about what is going to happen in the future. The companyalso arranges kick-offs for the employees when new products are to be introduced. Bothrespondents considered that the relation to the employees was a highly important issue.According to (RM) the sponsorship of Plannja basket is a big part of their relation to thecommunity. Both respondents stated that all financial relations are handled by the parentcompany, SSAB. Regarding industry relations Plannja AB has relations to otherindustrial companies. For example they have a close co-operation with SSAB theirparent company and some other trade associations and companies such as the instituteof steel and constructing (Stål och bygg Institutet) and Gullfiber AB. (RM) thought thatPlannja AB could improve the way they are handling public relations. (MN) brought upthat special events are performed in co-operation with the retailers for special occasionsi.e. a dinner or a conference were Plannja AB besides the social part also wants to bringa specific message across to the retailers.


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Sponsoring

Both respondents agreed that sponsorship is a very big part of Plannja AB’scommunication mix. They are the main sponsors of Plannja basket, which is asuccessful basketball team in Sweden. According to (MN) the sponsoring of Plannjabasket is an old collaboration. Besides the sponsoring of Plannja basket they are verysparse with other sponsoring. The reason for this is because the sponsoring of Plannjabasket is so successful. And that the company has chosen the policy to only sponsor oneobject and concentrate on that. (RM) also brought up that basketball has a positiveimage in the publics’ eyes.

Exhibitions

According to both respondents Plannja AB participates in several exhibitions that are ofinterest for the company and especially those that are highly important for the branch,often the bigger ones. According to (RM) it is the local retailers that handle the smallerexhibitions. He further pointed out that each exhibition has its own theme and that it isimportant to plan the exhibition and advertise in order to get visitors. Both respondentsstated that they do not train the personnel that participate in the exhibitions since theyare already familiar with the product and the organisation. (MN) said that those whoparticipate in the exhibitions are personnel that do it regularly and are therefore familiarwith how to handle it. Plannja AB follows up the exhibitions on a regular basis. (MN)also brought up that the company conducts several investigations among customersabout how effective the exhibitions are. (MN) further stated that the objective ofexhibitions was not to sell but to support their products and to allure new customers.

Packaging

According to both respondents the company has got a special design of the packagingthat should be recognised by customers and that should be easy to store in warehouses.The logo is placed on the packages and the products (punched on the tin roofs) forrecognition. (RM) further mentioned that Plannja AB tries both to be cost effective andaware of the environment aspect.

Word of Mouth

(RM) stated that word of mouth is an important issue for Plannja AB in order to obtaininformation for buyers. (MN) said that they work hard to mediate their brand so thateverybody recognise it and talks about it. Both respondents expect that the customerstalk to each other about their products. If a customer is dissatisfied they try to solve it inorder to have a good reputation. (RM) also brought up a study that showed that a largepercent of the customers selected Plannja AB because their neighbour recommendedthem.


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Corporate Identity

According to both respondents the logotype is exposed at the company’s and theretailers buildings as big signs, on the veichles, the sellers clothes, and at all businessforms and literature. (MN) pointed out that the logotype should be visible on everythingthat comes out of the company. Further (RM) mentioned that Plannja AB has a policythat the logotype/name always should have the same layout.


The Use of the Website

(MN) stated that the use of the Website was to obtain information for the customers andto show and demonstrate the products. On the other hand (RM) thought that the use ofthe Website was about the same as with the other communication tools, which meansthat it should be used with the same purpose, to generate sales. Both respondents agreedthat the Website was a way of getting away from the old routines, such as productfolders that are sent out to the retailers. (MN) stated that the Website could supportexisting customers, reach new customers, and to provide online catalogues andcustomer service. On the other hand (RM) considered that the Website could be used toinform the customers about products and to provide links to the retailers. He further saidthat the Website provided technical assistance for the customers’ i.e. how to lay a roof,but that the customers could not purchase products on-line.

The Function of the Website

(RM) considered the Website as a complement to the other communication tools. Nonof the respondents thought that the Website would replace any of the existingcommunication tools.

Reasons for Being on the Web

(MN) stated that the reason for Plannja AB to be on the Web was in order to reach asmany customers as possible. Further more (RM) announced that if a company wants tobe the market leader they have to have presence on the Web. Both respondents statedthat an advantage with the Web was that it is an easy and quick way of reaching manycustomers. Further (RM) thought that the Web is a cost-effective communication toolthat enables the company to easily make changes on the Website, for example whennew products are to be introduced. Neither of the respondents believed that the reasonfor being on the Web was of fear of not having a presence on it.

Media Used to Promote the Website

According to (RM) Plannja AB promotes their Website with all their printedadvertisements, printed matters, with the sales personnel’s vehicles and in thecatalogues.


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Regarding the question if the respondents had anything to add both (MN) and (RM)added that the Internet will have a big impact on how business are going to be made inthe future. (RM) thought that the online catalogues would replace the regularcatalogues. Both respondent brought up that Electronic Data Interchange, EDI, (acomputerised network between companies), are about to be introduced at the companyin the near future. (RM) added that even Artificial Intelligence, AI, (an automated salesagent that answers questions from interested consumers, makes product or servicesuggestions based on customer information and manages the overwhelming volume ofelectronic messages), was an interesting issue that might be introduced at Plannja AB’sWebsite in the future.


Integration of the Communication tools

(MN) stated that all communication tools used to create a message are integrated.Further (RM) said that if not all communication tools were integrated thecommunication would be ineffective. Both respondents meant that the different mediathat is used to create a message must be consistent and should permeate the way theadvertising looks like. (RM) brought up that by integrating the communication toolsPlannja AB sends out a consistent message to the customers. This leads to a greaterimpact of the message, and makes it more credible. As (MN) put it: “You have to playon all strings on the guitar”. None of the respondents found any great disadvantagescombined with integration of the communication tools. Though an important issue thatwas brought up by (MN) was that it is hard to determine how to divide the amount ofmoney spent on the different communication tools in the communication mix.

Rules/Models Used when Integrating the Communication Tools

The company does not use any specific rules when integrating the communication toolsaccording to (RM). But he mentioned that they use some steps that have been effectivein their line of business. These steps are (1) get support within the company, (2) getsupport from the retailers, (3) communicate message and create attention, and (4)feedback/learn from experience. (MN) further stated that Plannja AB always uses thelogotype and brand name in the same layout in every communication tool to make itmore unified and to create a larger impact. The company’s communication tools areintegrated with the help of advertising agencies. Plannja AB uses three differentadvertising agencies depending on which segment they direct towards and which kindof service they require according to (MN).

The Communication Tools that are Commonly Used when Planning a Campaign

(MN) listed advertising, personal selling, sales promotion and the Website as the mostcommonly used communication tools in marketing campaigns. Further (RM) addedpublic relations and sponsoring as important issues when creating marketing campaigns.


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5.2 Liko AB

Liko AB operates in the manufacturing business. They develop, manufacture, andmarket patient lifts. Liko AB’s lifts are backed up by the market's widest assortment ofaccessories. The head office is in Luleå, in the north of Sweden. Liko AB was foundedin 1977. The company operates not only in Sweden where it has got about 45-50employees, but also in Europe, Japan and in North America. Barbro Liljedahl, (BL) whois the marketing manager at Liko AB and Magnus Ahlqvist, (MA) who is responsiblefor information issues at the company were interviewed. It should be noticed that thefirst research question was not answered by Magnus Ahlqvist, who responded to thesecond and third research questions. The reason for this is that the area handled inresearch question one is not within his area of responsibility.


Personal Selling

According to (BL) personal selling is used to a large extent. Both face to face andtelephone sales calls are used depending on what kind of business that is conducted. Themain goal with personal selling is not just to sell the product; it is to create a satisfyingsolution for the customer. Further (BL) stated that the personal contact with thecustomers was a huge advantage together with the opportunity to create long termrelationships with the customers. (BL) also pointed out that conferences are used as wellas seminars in order to educate the customers. The education of the customers at theseminars was sometimes performed together with other non-competitive companies.When it comes to videoconferences Liko AB does not use them because they find noneed in doing that. A disadvantage that was brought up by (BL) was that personalselling has a limited ability to reach the customers since it is a very expensivecommunication tool.

Advertising

Regarding advertising (BL) stated that Liko AB advertises in branch magazines with thepurpose to profile the company or to introduce a new product. Further (BL) said thatadvertising in newspapers was not used since it was not appropriate in their line ofbusiness, because they do not perform their advertising directly to the end customer.According to (BL) direct mail was used in the form of product folders (catalogues) thatwere sent out to the customers. (BL) believed that the product folders were a way ofconducting “invisible advertising” since the customers do not consider the folders asadvertising. Further (BL) brought up that Liko AB sends out customer brochures calledLikobladet to their customers. Information videos were not used at the time, becausethey had to be upgraded, but had been used in the past. (BL) also said that technicalreports were not used since it did not fit their products. When it comes to advantageswith advertising (BL) brought up that it is a cost-effective communication tool for LikoAB.


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Sales Promotion

As for sales promotion, (BL) said that gifts, competitions, price reductions, and saleforce promotions was used. Gifts were not used in a big extent only as give-aways in theform of pens, mugs, and measuring tapes. Premiums had been used in the past but arenot used any more. Competitions were only used at exhibitions. Free samples areneither used since it is too expensive to give away lifts to the customers but they do lendout lifts if a customer wants to try one. Price reductions were used in the form ofquantity rebates and when the customers trade their old lift for a newer one. Liko ABuses sales competitions as sales force promotions for the sellers. According to (BL)sales promotions have got the advantage that it can increase the sales and tie thecustomers more tightly to the company. Further (BL) brought up jealousy, as adisadvantage of sales promotion since one customer can be jealous of another if forexample price reductions not were offered to all customers.

Public Relations

Regarding media relations and public relations (BL) stated that Liko AB could improvethe way they are handling it since they are not performing that well in that area. At thetime press releases are used when a new product is to be introduced or when they wantto announce special news. Relations to employees and members are mainly used in theform of information at personal meetings and through e-mail according to (BL). Tomotivate the employees Liko AB sometimes uses gifts i.e. coats, for special occasionssuch at anniversaries. Concerning community relations (BL) stated that they hadlectures on product and corporate development at the Luleå University of Technologyand days when the public can visit the company. Liko AB is a family owned companyso the relations to investors are handled internal, but regarding financial relations (BL)said that Liko AB has a good relation to the bank that they use. Relations within theindustry are accomplished through seminars in order to educate the customers aboutcomplementary products. At some seminars they co-operate with other companies thatsell complementary products to Liko AB’s products. When it comes to special events(BL) stated that they only are used during exhibitions i.e. dinner with VIP customers.When talking about advantages with public relation (BL) mentioned that if performedwell, public relations will ease different relations especially if you have got a goodreputation, since as (BL) put it “Everyone wants to be with a winner”. A disadvantagewith public relations is that the customers can get the wrong experience from thecompany if it is not handled properly. Therefore (BL) pointed out that it is important tothink about how the message are expressed.

Sponsoring

Sponsoring is not used at the time. According to (BL) Liko AB does not sponsor anyactivity for the moment but has in the past sponsored some local sport teams and withinthe field of handicapped since they are in that line of business. (BL) explained thereason for not using sponsoring is that Liko AB feels that they do not get enough out ofit.


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Exhibitions

According to (BL) participates Liko AB in exhibitions in order to make the companyvisible, establish connections, and to maintain existing connections. (BL) explained thatthey take part in a big exhibition every year and a few smaller locally situated ones.Liko AB does not train the personnel that participate in the exhibitions since the onesthat participate in the exhibitions are the company’s sales force and are thereforefamiliar with the products. During the exhibitions the personnel are wearing the samekind of clothes, in that way can they intermediate a consistent message to the customers.According to (BL) the company follows up the exhibitions by contacting the customersthat were interested in the company’s products. Another thing that (BL) brought up wasthat they always try to show a new product at every new big exhibition.

Packaging

According to (BL) packaging is not a big issue to Liko AB since most of the lifts aredelivered unpacked. But they constantly improve the packaging in co-operation withpackaging companies in order to achieve the most durable ones. Further (BL) said thatthey have to use durable packages since some of the lifts are exported and are thereforeexposed to hard handling during the transportation. (BL) also mentioned that they havegot an environmental award for their packages since they are not using pollutingpackages.

Word of Mouth

(BL)’s opinion regarding word of mouth was that Liko AB has got a good reputationamong their customers, which is vital for the company. They do not have a specific wayof handling word of mouth since they trust their good reputation. But on the other handthey have evaluation groups that investigate how the customers perceive the company.(BL) further stated that it is very important with word of mouth for the company sincethe are selling to frequent customers not to non-recurrent customers.

Corporate Identity

(BL) said that the logotype is shown on the company’s building, the vehicles, on thesellers green shirts, on the employees anniversary coats, business forms, and literature.Moreover (BL) mentioned that Liko AB has got a specific design programme thatintermediates how the logotype is going to be used. They try to send out a well thoughtmessage in order to strengthen their brand.



The Website could according to (BL) be used to strengthen the company’s products andbrand both nationally and internationally. On the other hand (MA) brought up following


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issues regarding the use of the Website: to communicate with the customer, strengthenthe brand, to direct and to inform the customers (so that the employees can explain for acustomer over the phone where to find specific information about products et cetera), tocreate company and product awareness, and to inform the market and to intermediate tothe customers what Liko AB stands for. (BL) believed that the Website should agreewith the products and the other activities within the company i.e. to intermediate aconsistence in the messages sent out. She also mentioned that they have related links onthe Website and that you can look and get information on all the products on-line. (MA)stated that Liko AB has technical assistance on the Website but that you cannot orderproducts on-line. Though this was the case now (MA) pointed out that the Website wasunder continuous development. Furthermore (MA) brought up following advantageswith the Website: low costs, can reach many people, is a visual communication, and thatthe customers can interact with the computer. (MA) did not find any disadvantages withthe Website, but (BL) brought up that a major disadvantage with the Website was thatthe customers with no access to the Web not could be reached.


(BL) considered that the Website was a complement to other communication tools andthat it cannot replace any of the existing communication tools in the communicationmix. (MA) stated that the Website could be supplementary in a certain degree but that itcould not replace all of the communication tools. In the future (MA) believes that theWeb will have an increased significance in the way businesses will be handled and thatmore businesses will be made over the Web


(BL) stated that Liko AB has got a presence on the Web simply because there is apressure that companies should have a presence there. (MA) brought up followingissues regarding reasons for being on the Web: easy to use and to frequently update, tocommunicate with the customer, strengthen the brand, to direct and to inform thecustomers, and to intermediate to the customers what Liko AB stands for.


Both respondents stated that the media used to promote the Website were all printedmedia that is sent out to the customers such as business forms, literature, business cards,and newsletters. They also promote the Website through advertisement in businessmagazines.


Integration of the Communication tools

Liko AB integrates the communication tools that are used. Though (BL) said that theycould perform better within that area. (MA) stated that they profile themselves in the


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same way in all the communication tools that they use. Further (MA) declared that theWebsite was a good example of how they integrate the communication tools since theyuse the same colours, design and layout on all communication tools. (BL)’s opinionregarding advantages with integration of the communication tools was that a greatereffect of the message can be achieved by integrating the communication tools. (MA)believed that by integrating the communication tools there could be consistence in theway the message is sent out, so the message could be recognised in more media. As adisadvantage (MA) brought up that the integration of the communication tools couldstrangle the creativity since there has to be a consistence in the way the companyprofiles itself. Another disadvantage that (MA) brought up was that it can be hard tocreate something that looks good if you have to use the same profile on every media.


(BL) meant that Liko AB does not use any specific models or rules when integrating thecommunication tools. On the other hand (MA) brought up that Liko AB uses a 15-stageprocess when introducing a new product. The process deals with everything fromregistration and photography of the product to introducing the new product to themarket. (MA) also said that they use specific routines for every product.


(BL) said that the communication tools that were used the most when planning acampaign were exhibitions, personal selling, and advertising in the form of direct mail.(MA) stated that personal selling, advertising (direct mail and in branch magazines), andexhibitions were the most commonly used.

5.3 Svalson AB

Svalson AB manufactures electric sliding windows for receptionists, cashiers et cetera.The company is situated in Öjebyn, in Piteå that lies in the north of Sweden. Thecompany has got about 24 employees. This year’s sales are budgeted to reach 17million. Svalson AB exports their products to most European countries and also to somecountries elsewhere in the world. At the company Bill Svensson (BS), who is the CEOand Göran Karlsson (GK), who is the marketing manager of Svalson AB wereinterviewed.


Personal Selling

According to both respondents personal selling is used in a minor extent in the form offace-to-face sales calls/meetings, telephone sales calls and conferences/seminars. Thereason for this is the company’s geographical situation (90 % of their customers aresituated in the south part of Sweden) which does not make it profitable with personal


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selling. Another reason is that most of the sales people work as incoming orders clerkdue to the company’s fast development. Even though Svalson AB does not use personalselling in a large extent, (GK) pointed out that the company tries to have a certaindegree of care of the customers. He believed that for large projects when they tailor-make a total solution for the customer personal selling is vital. (BS) stated that they donot use videoconferencing since they do not find that relevant to their business. Anadvantage with personal selling is according to (GK) that it helps the company to findout what the customers think about the company and which weaknesses they couldimprove within the company. (GK) also brought up that by using personal selling thesalesperson can make the customer aware about what he/she wants, which is especiallyimportant when dealing with tailor-made products. When it comes to disadvantageswith personal selling both respondents agreed that personal selling is an expensivecommunication tool.

Advertising

Svalson AB does not advertise in newspapers according to both respondents sincenewspapers is not directed to their customers and has to wide covering. Instead theyadvertise in branch magazines stated (GK). He further explained that Svalson AB usesabout 30 advertisements a year directed to 3 large groups (security people, constructingpeople, and architects). Regarding video information cassettes both respondents statedthat they had been using it a few years ago on exhibitions to show product advantagesbut did not have any recent video information cassette at the moment. According to both(GK) and (BS) Svalson AB uses direct mail and miscellaneous. The direct mail is in theform of folders and catalogues and the miscellaneous is in the form of dispatches. (GK)said that 20 percent of the direct mail sends to the end customer and the remaining 80percent are distributed via the retailers. When it comes to technical reports (GK) saidthat it was used in a minor extent but was about to used more when their electric slidingwindows were classified fireproof. (GK) also brought up incentive travels as anotherform of advertising that Svalson AB is using. (BS) mentioned that it is hard todetermine whether it is profitable or not with advertising and that it is a manner of costin which extent they should use advertising as a communication tool. (GK) on the otherhand stated that advertising was a decent cheap communication tool, which can reachmany customers and help the company to create their profile. A disadvantage that (GK)mentioned was that advertising is a broad way of reaching many customers but it is notdeep enough, the message does not exist for a long time. Finally (BS) said that if notusing advertising, no one would know that the company exists.

Sales Promotion

Regarding sales promotion both respondents stated that it is used in a minor extent. Thecompany does not use premiums or sales force promotions since premiums are notrelevant in their line of business and fixed salary is used instead of sales forcepromotions according to (BS). Regarding sales force promotion Svalson AB does nothave a motivation or stimulating programme for the sales force but they are eventuallygoing to introduce one for specific campaigns said (GK). Further (GK) mentioned thatSvalson AB uses gifts in the form of Christmas gifts, playing cards, clasps knifes, andgolf balls. Competitions are used at the homepage for the public and as amusement forthe customers. (GK) declared that they do not have a structured system for how to offer


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price reductions but they offer their customers’ quantity rebates if they buy manysliding doors at a time. They also have a standing bonus system for some of theircustomers according to (BS). When it comes to advantages with sales promotion (GK)said that it causes the customers to make an effort. Regarding disadvantages (GK)brought up the costs for the material that is given away. As (GK) put it “sales promotionis both a carrot and a whip”.

Public Relations

Both respondents stated that public relation was not a specific big issue for the companybut that it still was important. Regarding media relations/publicity (BS) believed thatmost of the significant people knew about them and therefore the company did not needthat much media relation. (GK) on the other hand mentioned that Svalson AB just hadstarted with press releases, which they used to create awareness for a new product orproject. Relations to employees are manly handled through personnel meetings on amonthly basis according to both respondents. On the meetings the personnel areinformed about the company’s goals and how the company is doing. (BS) also broughtup that Svalson AB uses profit sharing for their employees to motivate them.Concerning community relations (GK) stated that Svalson AB are members ofNorrbottens chamber of commerce and the Swedish Trade Council. They are also amember of Piteå Trade Council where 10 companies meet and discuss difficulties withexport in order to help each other. (BS) further explained that they strive to be a well-managed company and that Svalson AB has a policy to never get a reminder of paymentin order to have a good reputation in the community. Finical relations are handledinternally according to both respondents since Svalson AB is a family owned company.Relations within the industry are accomplished through co-operation with different localcompanies (GK) explained. Regarding special events (BS) mentioned that the companysometimes has dinner meetings with the retailers to inform what is happening in thecompany. Furthermore (GK) said that an advantage with public relations is that it makesthe message more believable and cheaper if it is successful.

Sponsoring

Svalson AB has chosen not to use sponsoring in the communication mix according toboth respondents. The reason for this is that they consider sponsoring to be thrown awaymoney since most of their customers are not locally situated.

Exhibitions

Both respondents stated that the company participates in exhibitions. One reason forusing exhibitions was to establish connections with key persons in the businessexplained (GK). According to (BS) Svalson AB participates in the exhibitions that theythink are the most profitable. (GK) further said that (1) they get information about theexhibitions from the organisers, then (2) they choose which exhibitions to participate independing on the exhibitions geographic position and the size of the exhibition. (GK)also brought up that they do not train their exhibition staff, but the personnel thatparticipate in the exhibitions have a specific product education and should have a goodknowledge about the products technical information. Finally the staff should also be


55

able to speak the language required on the exhibition depending on which country theexhibition is held in. Both respondents stated that they follow up the exhibitions. Thecourse of action for the follow up is according to (BS) a dividing of the interestedapplicants into 3 different groups, according to interest. After that the company treatsthe most interesting first. Furthermore (GK) brought up 6 steps that are used as a modelwhen working with exhibitions. These steps are (1) to have nicely exhibition material(2) select exhibition (3) communicate to people about the exhibition (4) build exhibitioncase (5) carrying through (6) follow up.

Packaging

Regarding packaging both respondents stated that they use tailor-made packages fortheir products. (GK) stated that they do not improve the packages by replacingunnecessary details since glass is a difficult product to transport and they have to use thematerial that works the best. Furthermore (BS) stated that they do not place theirlogotype or brand name at the package but they sometimes use tape with the brandname on.

Word of Mouth

Both respondents stressed the importance of having satisfied customers. It is their policyto make the customers satisfied with the product they have bought and after that theycount on their good reputation to “spread as rings on the water” as (BS) put it.Therefore they always help the dissatisfied customers by making them satisfied, (GK)said, and then hope that the these customers will spread the information and say thatSvalson AB is a company that you can trust. (GK) further stated that they always followup their orders seven days after the delivery in order to handle dissatisfied customersand to solve problems.

Corporate Identity

(BS) pointed out that the logotype and brand name is exposed on the company’sbuilding and on all printed material. (GK) continued to say that the logotype is shownon the company’s trucks, on the mechanics uniforms and on all other material such asletterheads, invoices et cetera.



The Website was manly used according to (BS) as a way for the company to be foundby the customers and inform the market, for the architects to be able to print outdrawings, and for the customers to get access to the brochures. (GK) stated that theWebsite was manly used to help architects to prescribe Svalson AB’s products, todecrease the costs for the brochures, and to introduce new products. (GK) continued tosay that the Website also could be used to provide links to the retailers and bulletins


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boards for the customers. (BS) further stated that the Website could be used to providevirtual colour catalogues, and online customer support and to introduce new productseasier. Regarding ordering products on-line (GK) explained that the customers couldnot do that at the moment but that it might be possible in the future. As advantages (BS)mentioned that the Web is a quick media that is cheap to use. (GK) stated that the Webprovides several advantages such as (1) it decreases the costs for brochures, (2) itprovides better information for the customer, (3) that it is fresher, (4) easier for thecustomers to print out drawings, and (5) that it is easy to provide price information.Regarding disadvantages (GK) brought up that the Web is a huge medium that makes iteasy for the customer to draw in all the information exposed there. Further (GK)believes that the Web will have an increased use in the coming two years.


(BS) considered the Website as a complement to the other communication tools. (GK)on the other hand thinks that the Website is going to replace some of the existingcommunication tools, but that they still need some of the existing communication toolsin order to promote the Website.


(GK) stated that the reason for the company having a Website is because it feels naturalto be on the Web since they always have been far ahead in the computer world. (GK)pointed out that they have now had their Website for four years. On the other hand (BS)considered that the reason for being on the Web was that it is a quick media. None ofthe respondents considered that the reason for being on the Web was of fear ofconsequences of not having a presence.


Both respondents stated that they try to provide the Website address on all material thatis exposed to the public. This could include direct mail (to bombard the customers withdirect mail in order to make them use the Website instead of regular communicationtools), catalogues, advertisements, and exhibitions (show how the Website works andthe ease of it). Furthermore (GK) mentioned that they are going to do a separatemarketing campaign for their Website in the future.


Integration of the Communication Tools

(BS) stated that they do not integrate the communication tools and therefore do not havea pronounced integration policy. They just use the ones they feel is appropriate at thetime. On the other hand (GK) took the advertisement of an exhibition as an example ofintegration the communication tools. He said that first they announce on the Websitethat they are going to participate in a special exhibition. Then they advertises in


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magazines in order to make the customers aware that they are going to participate in aspecial exhibition and finally they send out direct mail to the retailers that run theirbusinesses in the local area of where the exhibition is going to take place. Further (GK)stated that they try to send out the same message in all the communication tools thatthey are using. (GK) also meant that the integration was necessary in order to get peopleto the exhibitions. One disadvantage with integrating the communication tools wasaccording to (GK) that the company was restricted to a few campaigns during a year.


Both respondents stated that Svalson AB does not use any rules or models forintegrating the communication tools. It is instead the customers who direct what kind ofcommunication tools they are using according to (BS).


(BS) stated that the communication tools that were used the most were advertising(direct mail), exhibitions, and word of mouth. (GK) pointed out exhibitions, advertising(in the form of direct mail), and the Website as the most commonly usedcommunication tools when planning a campaign.

Regarding the question if the respondents had anything to add (GK) stated thatmarketing communication was not just the use of theories but rather a matter ofcommon sense.

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6 ANALYSIS

his chapter contains the analysis of the collected data in order to be able todraw conclusions in the next chapter. As presented in chapter four, Miles andHuberman (1994) state that analysis of qualitative data can be organised into

three stages. The first stage is to reduce the collected data by conducting a within-caseanalysis, then the second stage is to display the data, which is done in a cross-caseanalysis, and finally the third stage is to draw conclusions. These steps allow us todiscover patterns and commenting on these patterns, to draw conclusions. Theconclusions are presented in the following chapter.

First we will conduct a within-case analysis where we will go within the case andcompare the collected data with existing theory in order to see if it fits (or does not fit)with existing theory. This allows us to organise and to reduce the data. Then a cross-case analysis will be conducted where we will display the data, which means to furtherreduce the data and to display it in an organised and compressed way so thatconclusions easily can be drawn. Then we will compare the displayed data from thethree cases with each other in order to be able to seek similarities and patterns betweenthe cases. The chapter is divided into three sections, one for each research question.Within every section both a within-case and a cross-case analysis will be conductedregarding the research question.

6.1 Research Question One, How Can a Business-to-Business Firm’s Use of theTraditional Marketing Communication Tools be Described?

In this section we will analyse the data from each of the three cases with regard to howthe traditional communication tools are used. In our frame of reference, regarding thefirst research question, we provided an eclectic list that is compiled from Smith (1998),Boddewyn and Leardi (1989), Foster (1998), Smith et al. (1998), Baker (1994), Wilcoxet al. (1997) previous studies, which will be used in the within-case analysis.

6.1.1 Within-Case Analysis

Personal Selling

Foster (1998) lists that personal selling could include face-to-face sales calls/meetings,telephone sales calls, videoconferencing, and conferences/seminars.

Personal selling is a very effective communication tool in Plannja AB’s line of businessand is used in a large extent. The tools used within personal selling are face-to-facesales calls/meetings, telephone sales calls and conferences/seminars since it is a majoradvantage to be able to create personal relations to the customers. The company doesnot use videoconferences since it is not appropriate in their ways of communicatingwith the market. In describing the use of personal selling as a communication tool wefound that Plannja AB uses three out of four personal selling items that is listed byFoster (1998).

Liko AB uses personal selling in a large extent. Both face to face and telephone salescalls are used depending on what kind of business that is conducted. Conferences and

T

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seminars are used in order to educate the customers. They do not use videoconferencesbecause they find no need in doing that. Out of the four items listed by Foster (1998)Liko AB are using three.

Svalson AB uses personal selling in a minor extent in the form of face-to-face salescalls/meetings, telephone sales calls and conferences/seminars. The reason for this is thecompany’s geographical situation. They do not use videoconferencing since they do notfind that relevant to their business. The company are using three out of four items listedby Foster (1998).

Advertising

According to Morris (1992) advertising could include newspapers, direct mail,catalogues, technical reports, videos, and branch magazines (trade journals, businessmagazines).

Plannja AB advertises in both newspapers and in branch magazines (trade journals andbusiness magazines), both alone and together with the retailers that sell their products.The advertising is performed nation-wide and when advertising globally Plannja ABuses specific branch magazines. There are video-information cassettes, which are usedto demonstrate how to lay a roof and can be obtained from the retailers. Direct mail is abig part of Plannja AB’s advertising mix. Catalogues are used to present the productsand are sent out to the customers. Technical reports or articles are presented in branchmagazines at special occasions. Plannja AB uses all advertising items listed by Morris(1992).

Liko AB advertises in branch magazines (trade journals and business magazines) withthe purpose to profile the company or to introduce new products. Advertising innewspapers was not used since it was not appropriate in their line of business, becausethey do not perform the advertising directly to the end customer. Direct mail was usedin the form of product folders (catalogues) that were sent out to the customers.Information videos were not used at the time, but had been used in the past, the reasonfor this is that they had to be upgraded. Technical reports were not used since it did notfit their products. The way Liko AB uses advertising as a communication tool agreeswith three of the six items listed by Morris (1992).

Svalson AB does not advertise in newspapers since it is not directed to their customersand has to wide covering. Instead they advertise in branch magazines. Regarding videoinformation cassettes they stated that they had been using it a few years ago onexhibitions to show product advantages but did not have any recent video informationcassette at the moment. Direct mail is in the form of folders and catalogues andmiscellaneous is in the form of dispatches. Incentive travels are another form ofadvertising that Svalson AB is using. When it comes to technical reports it is used in aminor extent. In the terms of advertising Svalson AB is using four of the six items listedby Morris (1992).

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Sales Promotion

Boddewyn and Leardi (1989) and Smith (1998) states that sales promotion couldinclude premiums, price reductions, gifts/free sampling, competitions, and sales forcepromotion.

Sales promotion is a small part of Plannja AB’s communication mix. Premiums areused in campaigns for example if you by a product from Plannja AB you get a drill forfree. Price reductions such as quantity rebates are offered to big customers. Giftsoccurred in a little extension in the form of pens, and calculators. Free sampling is usedin the form of for example colour samples, which is sent to the customers. As salesforce promotion, competitions for the sellers are provided in order to motivate thesellers. Plannja AB also offers competitions for the retailers’. Previous research foundthat sales promotion consists of premiums, price reductions, gifts/free sampling,competitions and sales force promotions. This seems to be the case with this firm aswell as it uses all sales promotion items listed by the authors Boddewyn and Leardy(1989) and Smith (1998).

Liko AB uses sales promotion in the form of gifts, competitions, price reductions, andsale force promotions. Gifts were not used in a large extent only as give-aways in theform of pens, mugs, and measuring tapes. Free samples, which is not used in a largeextent since it is too costly to give away lifts to the customers. Premiums had been usedin the past but is not used at the time. Price reductions are used in the form of quantityrebates and when the customers trade their old lift for a newer one. Competitions wereonly used at exhibitions. Liko AB uses sales competitions as sales force promotions forthe sellers. In terms of sales promotion Liko AB uses four out of the five, by Boddewynand Leardy (1989) and Smith (1998), listed items.

Regarding sales promotion Svalson AB uses it in a minor extent. The company does notuse premiums or sales force promotions since premiums are not relevant in their line ofbusiness and fixed salary is used instead of sales force promotions. Gifts is used in theform of Christmas gifts, playing cards, clasps knifes, and golf balls. Competitions areused at the homepage for the public and as amusement for the customers. Pricereductions are used in the form of quantity rebates if the customers buy many slidingdoors at a time. Svalson AB used three of the five items listed by Boddewyn and Leardi(1989) and Smith (1998).

Public Relations

Wilcox et al. (1997) lists a few basic components of public relations. These are mediarelations/publicity, employee/member relations, community relations, financial/investorrelations, industry relations, and special events.

As for the use of press releases Plannja AB uses these in order to gain publicity whenintroducing new products. The sponsoring of Plannja basket is one of the company’srelations to the community. Employee relations are also an important issue to bothrespondents and are handled by kick-offs, Intranet and other information. Plannja ABhas got relations to other companies in the industry for example trade associations. Asspecial events the respondents brought up special conferences and dinners. In terms ofthe use of public relations, five of the six investigated items that was listed by Wilcox et

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al. (1997) within public relations was used by Plannja AB. The financial relations werehandled by the parent company SSAB.

Regarding Liko AB’s use of media relations/publicity, press releases are used when newproducts are to be introduced or when they want to announce special news. Relations toemployees are mainly used in the form of information at personal meetings and throughe-mail. Concerning community relations Liko AB has got lectures on product andcorporate development at the Luleå University of Technology and days when the publiccan visit the company. Liko AB is a family owned company so the relations to investorsare handled internal, but regarding financial relations Liko AB has a good relation to thebank that they use. Relations within the industry are accomplished through seminars inwhich they sometimes co-operate with companies that sell complementary products toLiko AB’s lifts. Special events are only used during exhibitions (i.e. dinner with VIPcustomers). Liko AB’s use five of the six components of public relations listed byWilcox et al. (1997). Investor relations are handled internally because the company is afamily company.

Public relation is not a big issue for Svalson AB. Regarding media relations/publicitymost of the significant people knew about them and therefore the company did not needthat much media relations. Svalson AB just had started with press releases, which theyused to create awareness for a new product or project. Relations to employees are manlyhandled through personnel meetings on a monthly basis. They also use profit sharing fortheir employees to motivate them. Concerning community relations Svalson AB aremembers of the Norrbottens chamber of commerce and the Swedish Trade Council.They are also a member of Piteå Trade Council were 10 companies meet and discussdifficulties with export in order to help each other. Finical relations are handledinternally according to both respondents since Svalson AB is a family owned company.Relations within the industry are accomplished through co-operation with different localcompanies. Regarding special events the company sometimes has dinner meetings withthe retailers to inform what is happening in the company. All items within publicrelations that is stated by Wilcox et al. (1997) are used by Svalson AB.

Sponsoring

Baker (1994) and Smith (1998) lists sports teams, cultural programmes, arts, education,community, and broadcast as sponsorship items.

Sponsoring is a very big part of Plannja AB’s communication mix. Besides thesponsoring of Plannja basket they do not sponsor any other kind of events such ascultural programmes, arts, education, community, or broadcast. The reason for this isbecause the sponsoring of Plannja basket is so successful. And that the company haschosen the policy to only sponsor one object and concentrate on that. Even if sponsoringis a big part of Plannja AB’s communication mix, they do not use all items listed byBaker (1994) and Smith (1998).

Liko Ab does not use sponsoring at the moment, but they have sponsored some localsport teams in the past within the field of handicapped since they are in that line ofbusiness. With regard to sponsoring Liko AB does not use the items listed by Baker(1994) and Smith (1998).

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Svalson AB does not use sponsoring. The reason for this is that they considersponsoring to be thrown away money since most of their customers are not locallysituated. In terms of sponsoring Svalson AB does not use the items listed by Baker(1994) and Smith (1998).

Exhibitions

Smith (1998) states that exhibitions are a powerful marketing communication tool thatrequire detailed planning and co-ordination of resources for instance to select the rightshows, train exhibition staff, and to ensure follow-up.

Plannja AB participates in several exhibitions, which they choose depending on theimportance of the exhibition. They do not train the personnel that participate in theexhibitions since the same personnel are used at the exhibitions, which are familiar withhow to handle them. Follow up is handled on a regular basis. The firm plans andensures follow up in the line as Smith (1998) stated, but they do not train the exhibitionstaff that the author recommended.

Liko AB participates in exhibitions in order to make the company visible, establishconnections, and to maintain existing connections. They take part in a big exhibitionevery year and a few smaller locally situated exhibitions, since those are the ones ofmost interest. Liko AB does not train the personnel that participate in the exhibitionssince the ones that participates in the exhibitions are the company’s sales force and aretherefore familiar with the products. They follow up the exhibitions by contacting thecustomers that were interested in the company’s products. In terms of the use ofexhibitions Liko AB does not train the personnel that participates in the exhibitions. Butthey plan and ensure follow up in the line with what Smith (1998) stated.

Svalson AB participates in exhibitions. One reason for using exhibitions was toestablish connections with key persons in the business. They choose which exhibitionsto participate in depending on the exhibitions geographic position and the size of theexhibition. Svalson AB participates in the exhibitions that they think is the mostprofitable ones. They do not train their exhibition staff, but the personnel that participatein the exhibitions have a specific product education and should have a good knowledgeabout the products technical information and should also be able to speak the languagerequired on the exhibition depending on which country the exhibition is held in. Theyalso follow up the exhibitions. Svalson AB does not train the personnel that participatein the exhibitions. But they plan and ensure follow up in the line with what Smith(1998) stated.

Packaging

Smith (1998) claim that packaging could include specific design (to easier thedistribution and a more efficient use of shelf space in warehouses) and improvement ofthe packages.

Plannja AB has got a special design of the packaging that should be recognised bycustomers and that should be easy to store in warehouses. They do not improve thepackaging since they do not think that there is a need of that. The logo is placed on the

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packages and the products (punched on the tin roofs) for recognition. This is in the linewith Smith (1998) stated about packaging except from that Plannja AB does notimprove the packages.

Packaging is not a big issue to Liko AB since most of the lifts are delivered unpacked.But they constantly improve the packaging in co-operation with packaging companiesin order to achieve the most durable ones. They have to use durable packages sincesome of the lifts are exported and are therefore exposed to hard handling during thetransportation. Liko AB’s use of packaging as a communication tool agrees fully withSmith’s (1998) statement about packaging.

Svalson AB uses tailor-made packages for their products, which not are improved sinceglass is a difficult product to transport and they have to use the material that works thebest. The logotype is not placed at the package but they sometimes use tape with thebrand name on. The way as Svalson AB uses packaging as a communication tool agreeswith one of the items stated by Smith (1998).

Word of Mouth

Smith (1998) states that of all the elements of the communications mix, word of mouth(WOM) is by far the most potent on a one-to-one basis. No amount of advertising orexpert selling could compete with a colleague or friend recommending or criticising aparticular product or service.

Word of mouth is an important issue for Plannja AB in order to obtain information forbuyers. They work hard to mediate their brand so that everybody recognise it and talksabout it. Plannja AB expects that the customers talk to each other about their products.This agrees with what Smith (1998) stated about word of mouth.

Liko AB has got a good reputation among their customers, which is vital for thecompany. They do not have a specific way of handling word of mouth since they trusttheir good reputation. It is very important with word of mouth for the company since theare selling to frequent customers not to non-recurrent customers. This fits with whatSmith (1998) stated about word of mouth.

Both respondents at Svalson AB stressed the importance of having satisfied customers.It is their policy to make the customers satisfied with the product they have bought.Therefore they always help the dissatisfied customers by making them satisfied. Theyalways follow up their orders seven days after the delivery in order to handledissatisfied customers and to solve problems. This is in the line with what Smith (1998)stated about word of mouth.

Corporate Identity

According to Smith (1998) corporate identity could include logotype/name on“permanent media”, buildings, vehicles, uniforms, business forms, and literature.

Plannja AB’s logotype is exposed at the company’s and the retailers’ buildings as bigsigns, on the vehicles, the sellers clothes, and at all business forms and literature. A

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specific policy is developed which says that the logotype/name always should have thesame layout. In terms of the use of corporate identity Plannja AB seems to use it in theway as Smith (1998) recommend.

The logotype is shown on Liko AB’s building, the vehicles, on the sellers green shirts,on the employees anniversary coats, business forms, and literature. More (BL)mentioned that Liko AB has got a specific design programme that intermediates howthe logotype is going to be used. Liko AB’s use of corporate identity agrees withSmith’s (1998) statement about corporate identity. A thing that also was brought up wasthat they use a specific design programme for the logotype, which explains how theyshould use the logotype.

Svalson AB’s logotype and brand name is exposed on the company’s building and onall printed material as well at the company’s trucks, on the mechanics uniforms and onall other material such as letterheads, invoices et cetera. The way as Svalson AB usescorporate identity agrees with what Smith (1998) stated.

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6.1.2 Cross-Case Analysis

Here we will display the data concerning the first research question showed in table 6.1on the next page.

Table 6.1 Data Display Research Question One, Traditional CommunicationTools

Investigateditem

Plannja AB Liko AB Svalson AB

PersonalSelling

• used in a large extent• used in the form of;

face-to-face sales,calls/meetings,telephone sales calls,conferences/seminars

• video conferences arenot used

• used in a very largeextent

• used in the form of;face-to-face salescalls/meetings,telephone sales calls,conferences/ seminars

• video conferences arenot used

• used in a minorextent

• used in the form of;face-to-face salescalls/meetings,telephone sales calls,conferences/seminars

• videoconferences arenot used

Advertising • used in a large extent• used in the form of;

newspapers, branchmagazines, directmail, catalogues,technical reports, andvideos


branch magazines,direct mail as productcatalogues,

• videos, technicalreports, andnewspapers are notused

• used in a large extent• used in the form of;,

branch magazines,direct mail,catalogues, andtechnical reports

• videos andnewspapers are notused

SalesPromotion

• used in a minor extent

• used in the form of;premiums, pricereductions, gifts/freesampling, sales forcepromotion andcompetitions for theretailers

• used in a minor extent• used in the form of;

gifts, competitions,price reductions andsales force promotion

• premiums are not used


• used in the form of;price reductions,gifts/free sampling,and competitions

• premiums and salesforce promotions arenot used

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PublicRelations


media relations/publicity, communityrelations, employeerelations, industryrelations, specialevents

• financial/investorrelations are handledby the parent company

• used in a minor extent• used in the form of;

media relations/publicity, employeerelations, communityrelations, industryrelations, and financialrelations, and specialevents

• investor relations arehandled internally


• used in the form of;media relations/publicity, employeerelations, communityrelations, industryrelations, and specialevents

• financial/investorrelations are handledinternally

Sponsoring • used in a very largeextent

• only used in the formof sport sponsoring

• are not used • are not used

Exhibitions • used in a large extent• plans and ensures

follow up• do not train exhibition

staff

• used in a large extent• plans and ensures

follow up• do not train the

exhibition staff

• used in a very largeextent

• plans and ensuresfollow up

• do not train theexhibition staff

Packaging • used in a minor extent• use specific design• do not improve the

packaging

• used in a minor extent• use specific design

and improves thepackaging


• use specific design• do not improve the

packaging

Word ofMouth

• used in a minor extent• considered as an

important issue

• used in a minor extent• considered as an

important issue

• used in a large extent• considered as an

important issue

CorporateIdentity

• used in minor extent• exposed at buildings,

vehicles, sellersclothes, businessforms, and literature

• used in a minor extent• exposed at buildings,

vehicles, on thesellers’ shirts, businessforms, and literature


• exposed at buildings,vehicles, mechanicsuniforms, businessforms, and literature

Source: Olander & Sehlin (2000)

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Plannja AB and Liko AB use personal selling in a large extent. Svalson AB usespersonal selling in a minor extent. All of the investigated companies were using face-to-face sales calls/meetings, telephone sales calls and conferences/seminars. Neither of thecompanies used videoconferences.

All three companies in a large extent use advertising in the form branch magazines,direct mail, and catalogues. Liko AB and Svalson AB reported that they did not usevideo information cassettes. Plannja AB and Svalson AB used technical reports.Svalson AB and Liko AB do not advertise in newspapers. Nor does Liko AB usetechnical reports.

The sample companies use sales promotion in a minor extent. The items that were usedby all companies were price reductions, gifts/free sampling and competitions. Liko ABand Svalson AB did not use premiums. Sales force promotions was not used by SvalsonAB.

Liko AB and Svalson AB use public relations in a minor extent and Plannja AB uses itin a large extent. All companies use media relations/publicity, employee relations,community relations, and industry relations. Plannja AB and Svalson AB do not usefinancial/investor relations. Liko AB does not have internal relations but has got goodfinancial relations.

Sponsoring of sport is used in a very large extent by Plannja AB and is not used by LikoAB and Svalson AB. Regarding exhibitions, all three companies use them in a largeextent. All sample companies plan and ensure follow up but do not train the exhibitionstaff.

In terms of the use of packaging as a communication tool all three companies use it in aminor extent. Plannja AB and Svalson AB do not improve the packages, which LikoAB does. It was reported that all three companies had a specific design of the packages.

When it comes to word of mouth all three companies agreed that it was an importantissue. Svalson AB uses it in a large extent, while Plannja and Liko AB use it in a minorextent.

Corporate identity is used in a minor extent. The logotype is exposed on the companybuilding, the vehicles, the sellers and mechanics clothes, the business forms and on theliterature.

6.2 Research Question Two, How Can a Business-to-Business Firm’s Use of theWebsite as a Marketing Communication Tool be Described?

In this section we will analyse the data from each of the three cases with regard to howthe companies are using the Website as a marketing communication tool. In our frameof reference, regarding the second research question, we provided an eclectic list that iscompiled from Hamill and Gregory, (1997), Berthon et al., (1998), and Ellsworth andEllsworth, (1997) previous studies, which will be used in the witin-case analysis.

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Berthon et al. (1998) and Hamill and Gregory (1997) state that the Website could beused to inform the market, to provide hot links, full-colour virtual catalogues, on-screenorder forms, online customer support/feedback, demonstrate products, corporatevisibility/brand name, and technical assistance.

Plannja AB uses the Website to obtain information for the customers, to be seen by thecustomers and to show and demonstrate the products. It could support existingcustomers, reach new customers, and to provide online catalogues and customer serviceas well as to inform the customers about products and to provide links to the retailers.Technical assistance that explains how to lay a roof is provided at the Website. On-screen order forms are not used since they do not sell their products over the Web. Interms of the use of the Website it seems like the firm use all the items listed by Berthonet al. (1998) except from onscreen order forms since they do not sell their products overthe Web.

Liko AB use the Website to communicate with the customer, strengthen the productsand the brand, to direct and to inform the customers, to create company and productawareness, and to inform the market and to intermediate to the customers what Liko ABstands for. Related links are provided at the Website so the customers can look and getinformation on all the products on-line. Liko AB provides technical assistance on theWebsite but the customers can not order products on-line. Most products are shown onthe Website. Liko AB uses all the items listed by Berthon et al. (1998) except fromonscreen order forms since they do not provide the service to buy products over theInternet.

Svalson AB uses the Website as technical assistance, corporate visibility, provide linksto the retailers and bulletins boards for the customers, to inform the market, to providevirtual colour catalogues, as online customer support, and to introduce new producteasier. It is not possible to order products on-line, but it might be in the future. SvalsonAB used seven out of the eight items listed by Berthon et al. (1998) regarding the use ofthe Website.


The Website can function as a complementary or as a supplementary to othercommunication tools. Berthon et al. (1998)

Plannja AB considered the Website as a complement to the other communication toolsby the respondents. Neither of the respondents thought that the Website would replaceany of the existing communication tools. This is in the line with what Berthon et al.(1998) stated about the function of the Website.

At Liko AB one of the respondents considered that the Website was a complement toother communication tools and that it cannot replace any of the existing communicationtools in the communication mix. The other respondent believed that the Website couldfunction as a complementary to the communication tools but also as supplementary in a

Chapter 6 Analysis

69

certain degree, but it could not replace all of the communication tools. The respondentfurther believes that the Web will have an increased significance in the way businesseswill be handled, and that more businesses will be made over the Web in the future. Botrespondent agreed that the Website could function as a complementary to othercommunication tools. This is in the line with what Berthon et al. (1998) stated about thefunction of the Website. In terms of the function of the Website as a supplementary tothe communication tools the respondents’ opinions differ.

Svalson AB considers the Website as a complement to the other communication tools.One of the respondents believed that the Website is going to replace some of theexisting communication tools, but that they still need some of the existingcommunication tools in order to promote the Website. This agrees what Berthon et al.(1998) stated about the function of the Website.


According to Berhton et al. (1998) the reasons for being on the web could be that it isquick and easy or of fear of the consequences of not having a presence.

The reason for Plannja AB’s Web appearance is that it is quick and easy and offers thepossibility to reach as many customers as possible. If a company want to be the marketleader they have to have presence on the Web. Neither of the respondents believed thatthe reason for being on the Web was of fear of not having a presence on it. This agreesin a certain degree with what Berthon et al. (1998) stated about the reasons for being onthe Web.

One of the respondents stated that Liko AB has got a presence on the Web simplybecause there is a pressure that companies should have a presence there. The otherrespondent brought up following issues regarding reasons for being on the Web; easy touse and to frequently update, to communicate with the customer, strengthen the brand,to direct and to inform the customers, and to intermediate to the customers what LikoAB stands for. Here differ the respondents’ opinions. Though it agrees with whatBerthon et al. (1998) stated about reasons for being on the Web.

The reason for Svalson AB’s Web appearance is because it feels natural to be on theWeb. Another reason for Svalson AB’s Web appearance is because it is a quick andeasy media. None of the respondents considered that the reason for being on the Webwas of fear of consequences of not having a presence. In terms of the reasons for beingon the Web Svalson AB’s reasons agrees with what Berhton et al. (1998) stated.

The Media Used to Promote the Website

Media that can be used to promote the Website are magazines, newspapers, newsletters,and the business card as stated by Ellsworth and Ellsworth (1997).

Plannja AB promotes their Website with all their printed advertisements, printedmatters, with the sales personnel’s vehicles and in the catalogues. This fits with therecommendations of Ellsworth and Ellsworth (1997).

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The media used by Liko AB to promote the Website are all printed media that is sentout to the customers such as business forms, literature, business cards, and newsletters.They also promote the Website through advertisement in business magazines. The wayLiko AB promotes their Website agrees with the recommendations of Ellworth andEllsworth (1997).

Svalson AB’s Website address is placed on all material that is exposed to the public.This could include direct mail, catalogues, advertisements, and exhibitions. Furthermoreone of the respondents stated that Svalson AB is going to do a separate marketingcampaign for their Website in the future. This is in the line with what Ellsworth andEllsworth (1997) stated.


Here we will display the data concerning the second research question. In table 6.2below a comparison between the cases will be conducted.

Table 6.2 Data Display Research Question Two, the Use of the Website as aMarketing Communication Tool

InvestigatedItem


The Use of theWebsite

• used to inform themarket, provide hotlinks, onlinecatalogues, customersupport, demonstratesproducts, exposes thecompany name, andtechnical assistance

• do not offer on-screenorder forms

• can also be used toreach new customers

• used to inform themarket, provide hotlinks, onlinecatalogues, customersupport, demonstratesproducts, exposes thecompany name, andtechnical assistance

• do not offer on-screenorder forms

• the Websiteintermediates whatLiko AB stands for

• used to inform themarket, as technicalassistance, corporatevisibility, to providelinks to the retailers,online customersupport, to provideonline catalogues, tointroduce newproducts

• do not offer on-screen order forms

The Functionof the Website

• complementary to theother communicationtools

• did not believe that itwould replace theexistingcommunication tools

• complementary toother communicationtools

• regarding the Websiteas a supplementary toother communicationtools the respondentshad different opinions

• believed that the Webwill have an increasedsignificance in theway business are to behandled in the future

• complementary toother communicationtools

• the Website willreplace some of theexistingcommunication tools

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71

All three companies use the Website to inform the market, to provide hotlinks, onlinecatalogues, customer support, demonstrate the products, expose the company’s nameand for technical assistance. Neither of the companies offers on-screen order forms.Plannja AB brought up that the Website could be used in order to reach new customers.Liko AB mentioned that the Website intermediates what Liko AB stands for.

In terms of the function of the Website the investigated companies looked upon theWebsite as a complementary to the other communication tools. Plannja AB did notconsider that the Website would replace any of the existing communication tools, whichone of the respondents at Liko AB also believed. The other respondent at Liko ABconsidered the Website to be a supplementary to the other communication tools in acertain degree and that the Web will have an increased significance in the way businessare to be handled in the future. At Svalson AB one of the respondents considered thatthe Website would replace some of the existing communication tools in the future.

At Liko AB the opinions differed between the respondents regarding reasons for beingon the Web. One of them believed that they had a presence on the Web simply becauseof fear of consequences of not having a presence, and the other believed that the reasonwas because the Web is quick and easy. Both Plannja AB and Svalson AB agree withthe second respondents at Liko AB that stated that the reason for being on the Web wassince it is quick and easy. Plannja AB added that one of the reasons for being on theWeb was because it offers the possibility to reach many customers. The secondrespondent at Liko AB added that other reasons for their Web presence were that theWeb is easy to use and to update, that it strengthens the brand, that it direct and informthe customers, that it intermediates what Liko AB stands for and that the company canuse the Web to communicate with the customers. Svalson AB added that another reasonfor being on the Web was because it felt natural.

Reasons forBeing on the

Web

• quick and easy• offers the possibility

to reach manycustomers

• different opinionsbetween therespondents, quick andeasy and of fear ofconsequences of nothaving a presence

• easy to use and toupdate, tocommunicate with thecustomer, strengthenthe brand, direct andinform the customers,and to intermediatewhat Liko AB standsfor

• quick and easy• feels natural

Media Used toPromote the

Website

• all printedadvertisements andprinted matters

• vehicles, catalogues

• all printed media thatis sent out to thecustomers and inadvertisements

• all printed materialthat is exposed to thepublic

• exhibitions,catalogues


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All three companies agree that the Website should be promoted with all printedadvertisements and printed media that are sent out to the customers. Plannja AB addedthat they also promote their Website with their vehicles and catalogues. Svalson ABadded that they use exhibitions and catalogues in order to promote the Website.

6.3 Research Question Three, How Does a Business-to-Business Firm Integrate theMarketing Communication Tools?

In this section we will analyse the data from each of the three cases with regard to howthe companies are integrating the communication tools. In our frame of reference,regarding the third research question, we provided previous studies conducted by Smith,(1998) and McArthur and Griffin, (1997), which will be used in the within-caseanalysis.


Integration of the Communication Tools

McArthur and Griffin (1997) conducted a study that stresses the importance ofintegrated marketing.

Plannja AB considers integration of the communication tools as an important issue.Since it is important to send out a consistent message to the customers. This is in theline with what McArthur and Griffin (1997) stresses.

Liko AB integrates the communication tools that are used. One respondent believed thatthey could perform better in this area. They believe that integrating marketingcommunication is an important issue since a greater effect of the message can beachieved by integrating the communication tools. This is in the line with whatMcArthur and Griffin (1997) recommended.

One of the respondents stated that Svalson AB does not integrate the communicationtools and therefore does not have a pronounced integration policy. On the other hand theother respondent stated that they integrate the communication tools. Both respondentsagreed that it was important to integrate the communication tools. This agrees with therecommendations of McArthur and Griffin (1997).


Smith (1998) presents ten golden rules in integrated marketing communication.

Plannja AB does not use any specific models when integrating the communication tools.But they do consider a few steps when integrating the communication tools. The stepsthat were brought up was learn from experience, get support from management, andpractise vertical and horizontal integration, which means that Plannja AB listed three ofthe ten rules that was stated by Smith (1998)

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One of the respondents brought up that Liko AB does not use any specific models orrules when integrating the communication tools. On the other hand did the otherrespondent state that Liko AB uses a 15-stage process when introducing a new product.The first respondent’s statement about not using any specific models when integratingthe communication tools does not agree with what Smith (1998) stated. On the otherhand does the second respondent’s statement that Liko AB uses a specific model whenintegrating the communication tools agrees with Smith (1998). Though we did not findout which steps the model consisted of since the respondent did not want to inform usabout it because the respondent believed that is was classified.

Svalson AB does not use any rules or models for integrating the communication tools. Itis instead the customers who direct what kind of communication tools they are using.This is not in the line with what Smith (1998) recommend.


The second study conducted by McArthur and Griffin (1997) showed that the mostcommonly used communication tools when planning a campaign were publicrelations/publicity, trade publications (what we refer to as advertising), andexhibitions/shows.

Plannja AB listed advertising, public relations, personal selling, sales promotion, theWebsite, and sponsoring as the most commonly used communication tools in marketingcampaigns. Of the by McArthur and Griffin (1997) three listed items Plannja ABbrought up advertising and public relations as the most commonly used communicationtools used in campaign planning.

Liko AB listed exhibitions, personal selling, and advertising in the form of direct mailas the most commonly used communication tools in marketing campaigns. Therespondents brought up two of the three by McArthur and Griffin (1997) listed items,advertising and exhibitions.

Svalson AB listed advertising, exhibitions, and word of mouth, and the Website as themost commonly used communication tools in marketing campaigns. Two of the threeby McArthur and Griffin (1997) listed items were brought up, advertising andexhibitions.


Here we will display the data concerning the third research question. In table 6.3 on thenext page a comparison between the cases will be conducted.

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Table 6.3 Data Display Research Question Three, Integrated MarketingCommunication

Regarding integration of the communication tools Svalson AB’s respondents opinionsdiffered. One respondent stated that they did not integrate the communication tools andthe other stressed the importance of integrating the communication tools. Both Liko ABand Plannja AB agree that it is important to integrate the communication tools. Liko ABalso brought up that they could perform better within that area.

Both Plannja AB and Svalson AB do not use any specific models when integrating thecommunication tools. Though Plannja AB brought up a few steps that they use whenintegrating the communication tools. The steps are; to learn from experience, to getsupport from management, and to practise vertical and horizontal integration. SvalsonAB stated that the customers direct the kind of communication tools that are to be used.Regarding Liko AB’s use of rules/models is hard to determine since the respondents’opinions differ. One of the respondents stated that they did not use any rules/modelswhen integrating the communication tools and the other respondent brought up that theyused a model, which we could not take part of since he believed that it was classified.


InvestigatedItem


Integration ofthe

CommunicationTools

• important issue • important issue• can perform better in

this area

• important issue• different opinions

about theintegration of thecommunicationtools

Rules/ModelsUsed when

Integrating theCommunication

Tools

• no specificrules/models are used

• they listed followingsteps; learn fromexperience, getsupport frommanagement, practisevertical and horizontalintegration

• different opinionsfrom the respondentsregarding the use ofrules/models

• could not take partof the model theywere using since itwas classified

• no specificrules/models areused

• the customersdirect the kind ofcommunicationtools that are to beused

CommunicationTools that are

Commonly UsedWhen Planning a

Campaign

• advertising and publicrelations were used

• added personal selling,sales promotion, theWebsite, andsponsoring

• advertising andexhibitions wereused

• added personalselling,

• advertising andexhibitions wereused

• added word ofmouth, and theWebsite

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In terms of campaign planning both Liko AB and Svalson AB listed advertising andexhibitions as the most used communication tools in campaign planning. Plannja ABlisted advertising and public relations as the most used communication tools whenplanning a campaign. Further Plannja AB added personal selling, sales promotion, theWebsite, and sponsoring as other communication tools that was commonly used whenplanning a campaign. Liko AB added personal selling and Svalson AB added word ofmouth and the Website as the mostly used communication tools in campaign planning.

Chapter 7 Conclusions

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7 CONCLUSIONS

his chapter contain the conclusions and the implications regarding the findingsof this study. These conclusions will then lead to some implications formanagement, for the future development of theory in this area, as well asimplications for further research that will be provided in the end of this chapter.

7.1 Research Question One, How Can a Business-to-Business Firm’s Use of theTraditional Marketing Communication Tools be Described?

Regarding the use of traditional communication tools it was shown that the use of thecommunication tools differ between the firms in terms of the degree that they are used.In terms of the extent in which the companies are using the communication toolsdepends on the type of industry the company operates in, where the company is situatedgeographically, as well as the products the company is selling. I also seem like pastexperiences determines which communication tools that are appropriate for eachcompany.

Several authors have reviewed that personal selling, public relations, sales promotionand advertising were the four major communication tools that are widely used withinmarket communication. With regard to our study it can be noticed that thecommunication tools that were mostly used by the sample companies were exhibitions,personal selling, and advertising. Public relations were only used in a large extent byone of the companies and sales promotion was not considered important to none of thecompanies. The reason for this might be that different communication tools areappropriate in various types of industries.

It can be noticed that the companies direct their marketing towards branch people inorder to make them prescribe their products to the customers. This can be profitableespecially in the line of businesses’ that the investigated companies are operating in,especially since they are developing product solutions for the customers, which often isprescribed by branch people.

The choice of communication tools do not always depend on its effectiveness more itseems like the costs in a certain degree restrain the use of some communication toolsthat demand high expenditures. The firms considered word of mouth as an importantissue. Though two of the companies did not have any specific plans about how tomanage word of mouth. It seems like they trust their good reputation and leave it to that.The third company always contacts their customers a week after delivery in order to besure that the customers are satisfied.

Personal communication tools by which the companies could interact face-to-face withthe customers such as personal selling and exhibitions were more important to thecompanies than other communication tools. This depends on that the firms’ products aretailor made and therefore requires more personal contact.

In terms of sponsoring it was noticed that a company either sponsored one object in avery large extent or was not using the communication tool at all.

T


77

The Main Conclusions Regarding Research Question One are:

� The extent in which the communication tools are used depends on the type ofindustry the company operates in, where the company is situated geographically, theproducts the company is selling, and past experiences.

� The communication tools that are mostly used by business-to-business firms areexhibitions, personal selling, and advertising.

� Business-to-business firms direct their marketing towards branch people in order tomake them prescribe their products to the customers.

� The costs determine in which extent the communication tools are used.� Personal communication tools are important to business-to-business firms.� Business-to-business firms either sponsors one object in a large extent or not at all.

7.2 Research Question Two, How Can a Business-to-Business Firm’s Use of theWebsite as a Marketing Communication Tool be Described?

The investigated firms used the Website to inform the market, provide hotlinks, onlinecatalogues, customer support, demonstrate products, corporate visibility, and fortechnical assistance. The study showed that the firms considered the Website as acomplement to the other communication tools. Though there were some disagreementbetween the respondents in one of the companies whether the Website functions as asupplement to the other communication tools or not.

The Website’s is promoted with several of the communication tools as well as otherprinted media such as business cards and brochures et cetera. The study showed that theopinion about the role of the Website depends to a large extent on the respondent’sposition within the company. We found that if the respondent works with the Websiteand has got a big knowledge about it, it is more likely that she/he is more positive to theopportunities that the Website enables than a person with less knowledge.

The respondents brought up several reasons for being on the Web besides that it is quickand easy. For example they brought up that the Web offers the possibility to reach manycustomer, it feels natural, it is easy to use and to update, easier the communication withthe customers, strengthens the brand, it direct and inform the customers and that itintermediates what the company stands for. The reason for this might be that the Webhas come to have an increased importance in the way businesses are being made overthe Web and that it will come to have an even greater significance in the future.

The Main Conclusions Regarding Research Question Two are:

� The Website is mainly used to inform the market, provide hotlinks, onlinecatalogues, customer support, demonstrate products, corporate visibility, and fortechnical assistance.

� In general the Website were considered as a complement to other communicationtools.

� The Website is promoted with all printed media and several communications tools.


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7.3 Research Question Three, How Does a Business-to-Business Firm Integrate theMarketing Communication Tools?

In terms of integrated marketing communication the companies seems to have littleknowledge about it and how it is used. In spite of that they try to send out a consistentmessage that will have a greater impact on the customers. This shows that theyunderstand the importance of integrated marketing communications, but their lack ofknowledge within the area makes it hard for them to perform it in a well-structuredmanner. The firms use no specific rules/models when integrating the marketingcommunication tools. Although the firms declare that they use some own steps that isdeveloped from previous experiences that fit a products introduction and the line ofbusiness in which the firms operates. This shows that some rules/models are followed toa certain degree but not a specific one that is followed step by step every time theyintegrate the communication tools. The companies use and integrate differentcommunication tools when planning a marketing campaign. Though it can be noticedthat advertising and exhibitions are the most important issues when planning marketingcampaigns.

The Main Conclusions Regarding Research Question Three are:

� Business-to-business firms seem to have a lack of knowledge regarding integratedmarketing communication.

� No specific rules/models are followed when integrating the communication tools.� Advertising and exhibitions are the mostly used and the most important

communication tools for business-to-business firms when planning marketingcampaigns.

7.4 Implications

This section will cover the implications this study could have for managers, as possiblecontribution for theory as well as for further research.

7.4.1 Implications for Management

Managers in industrial companies should attempt to increase the communication withinthe companies in order to create a unified organisation. Further managers shouldconsider the fact of measuring the effectiveness of their communication tools in a betterway so they can perform better when using them.

As the Internet grows it becomes more and more important to use the Website in thebusiness-to-business world, therefore the companies should continue to regard theWebsite as an important issue in order to stay ahead.

They should also strongly consider to learn more about integrated marketingcommunication since it is a highly important issue that is of vital significance for thecompanies competitiveness in the future.


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7.4.2 Implications for Theory

This study contributes to theory, in the fact that it provides the observation ofphenomena within the manufacturing industry and within a geographic setting. In otherwords, we have used previous research in the area in order to arrive at a series ofresearch questions. These research questions allowed us to explore and describe (and ina little sense to explain) the use and integration of marketing communication tools usedby industrial sellers. This thesis covers partly a new area of research because of theinvestigation of the use of the Website in industrial selling firms.

Previous research about marketing communication has provided us with literature fromwhich we have formed our research questions, which have served as a foundation whendescribing selling firms use and integration of the marketing communication tools.

7.4.3 Implications for Further Research

� To investigate the importance of word of mouth in industrial companies.

� To investigate the future of online shopping in industrial companies.

� To investigate the effectiveness of integrated marketing communications.

� To investigate if the way companies are using the different communication toolsdiffer in-between service companies and industrial companies.

� To investigate the importance of the Website in the communication mix.

References

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References

Interviews

Plannja ABMikael Nyquist, CEO, 1999-12-13, 60 minutes.Roland Marklund, Marketing Manager, 1999-12-13, 90 minutes.

Liko ABBarbro Liljedahl, Marketing Manager, 1999-12-13, 90 minutes.Magnus Ahlqvist, Information Manager/Webmaster, 1999-12-13, 30 minutes.

Svalson ABBill Svensson, CEO, 1999-12-16, 60 minutes.Göran Karlsson, Marketing Manager, 1999-12-16, 90 minutes.

Interview Guide

Facts about the Organisation:

- Size of firm:

- Year the company was formed:

- Turnover:

- Geographic area of activity:

- Industry the company operates in:

Facts about the Respondent:

- Department the respondent works in:

- The respondents position in the firm:

- How can a business-to-business firm’s use of the traditional marketingcommunication tools be described?

• Personal Selling: (face-to-face sales calls/meetings, telephone sales calls, videoconferencing, and conferences seminars)

• Advertising: (newspapers, direct mail, catalogues, technical reports, videos, andbranch magazines)

• Sales Promotion: (premiums, price reductions, gifts/free sampling, competitions,and sales force promotions)

• Public Relations: (media relations/publicity, employee/member relations,community relations, financial/investor/shareholder relations, industry relations andspecial events)

• Sponsoring: (sport teams, cultural programmes, arts, education, community, andbroadcast)

• Exhibitions: (select the right shows, train exhibition staff, and follow up)

• Packaging: (specific design and improvement of packaging)

• Word of Mouth: (important, how is it handled?)

• Corporate Identity: (logotype/name on permanent media; buildings, vehicles,uniforms, business forms, and literature)

- How can a business-to-business firm’s use of the Web as a marketingcommunication tool be described?

• The use of the Website: (inform the market, hot links, provide full-colour virtualcatalogues, on-screen order forms, online customer support/feedback, demonstrateproducts, corporate visibility/brand name, and technical assistance)

• The function of the Website: (complementary of supplementary to othercommunication tools)

• Reasons for being on the Web: (quick and easy or of fear of consequences of nothaving a presence)

• Media used to promote the Website: (magazines, newspapers, newsletters, and thebusiness card)

- How does a business-to-business firm integrate the marketingcommunication tools?

• Integration of the communication tools: (do you integrate the communicationtols? how?)

• Rules/models used when integrating the communication tools: (follow anyspecific model? which steps are taken?)

• The communication tools that are most commonly used when planning amarketing campaign: (mostly used?, rank them)

Anything to Add:

Documents

LTU-SHU-EX-00112-SE (1)