Description
In early history it might have been enough with innovative products, great engineering, or great salesmanship solely to close a business deal. However, today’s firms are facing a different situation with shorter product life cycles and the intensity of global competition, which no longer provides the luxury of “build it and they will come” thinking.
J ÖNKÖP I NG I NT E RNAT I ONAL BUS I NE S S SCHOOL
JÖNKÖPING UNIVERSITY
Mar ket i ng communi cat i on i n a B2B mar ket
- a case study of the store interior industry
Paper within Business Administration
Author: HALLIN IDA
JOHANSSON MARIA
LARSSON CAMILLA
Tutor: Anette Johansson
Elena Raviola
Jönköping December 2006
i
Bachelor Thesis within Business Administration
Title: Marketing communication in a B2B market
– a case study of the store interior industry
Author:
HALLIN IDA
JOHANSSON MARIA
LARSSON CAMILLA
Tutor:
Anette Johansson
Elena Raviola
Date: 2006-12-12
Subject terms: Marketing communication, marketing tools, B2B markets,
brand awareness.
Background: Today firms are facing increased global competition, and it results in shor-
ter product life cycles. The present situation demand firms to focus more
on marketing and how to communicate with the customers. In the mar-
keting field there has always existed a perceived dichotomy between B2B
and B2C markets. It is said that B2B markets must be handled differently
than B2C markets. Recently the perceptions have changed and it is said
that B2B and B2C markets have more similarities than previously as-
sumed, and this might affect the decision about which marketing tools to
implement. This could even change the old way of thinking, which states
that B2C marketing tools cannot be used effectively in a B2B market.
Theories show that brand awareness is of crucial importance in B2C mar-
kets. Will the change of market structure make brand awareness equally
important in a B2B market?
Purpose: The purpose of this thesis is to critically analyze the attitudes towards dif-
ferent B2B marketing tools and the possible appropriateness of using B2C
marketing tools in a B2B market in order to achieve brand awareness.
Method: A qualitative approach has been used in order answer the purpose of the
thesis. ROL AB has been used as a case study, and 13 open phone inter-
views have been conducted with existing and potential customers of ROL
AB. Furthermore, two interviews have been conducted with firms that
successfully use B2C marketing tools in B2B markets.
Conclusions: The typical characteristics of B2B markets show a tendency to blur. This
insinuates that brands are gaining importance in the B2B market. In order
to react to this change, B2B firms need to increase their brand awareness.
The traditional relational (B2B) marketing tools seems no longer to be suf-
ficient to be used alone but now need to be accompanied with transac-
tional (B2C) marketing tools.
ii
Table of Contents
1 Introduction............................................................................... 1
1.1 Background ............................................................................................1
1.2 Problem discussion ................................................................................1
1.2.1 Problem specification .............................................................................2
1.3 Purpose..................................................................................................2
1.4 Delimitation.............................................................................................3
1.5 Definitions...............................................................................................3
1.6 Disposition..............................................................................................3
2 Theoretical Framework............................................................. 5
2.1 Principal B2B market theory...................................................................5
2.1.1 B2B marketing........................................................................................6
2.1.2 Business buying behavior process .........................................................6
2.2 Branding.................................................................................................7
2.2.1 Brand equity ...........................................................................................8
2.2.2 Brand awareness....................................................................................8
2.2.3 B2B branding..........................................................................................9
2.3 Marketing communication.....................................................................10
2.3.1 Transaction marketing..........................................................................11
2.3.2 Relational marketing.............................................................................11
2.3.2.1 Database marketing......................................................................................................12
2.3.2.2 Interaction marketing ....................................................................................................13
2.3.2.3 Network marketing........................................................................................................14
2.4 Research questions..............................................................................15
3 Methodology ........................................................................... 16
3.1 Research methods ...............................................................................16
3.1.1 Conditions for choosing method...........................................................16
3.1.1.1 The course of action .....................................................................................................16
3.1.1.2 Problem statement........................................................................................................16
3.1.1.3 Prerequisites and resources.........................................................................................17
3.1.2 Quantitative vs. Qualitative...................................................................17
3.1.2.1 Method chosen .............................................................................................................17
3.2 Case study ...........................................................................................18
3.3 Interview selection................................................................................18
3.4 Data collection......................................................................................19
3.4.1 Primary data.........................................................................................19
3.4.2 Secondary data ....................................................................................20
3.5 Data Analyzing .....................................................................................20
3.5.1 Validity and reliability............................................................................20
4 Empirical Findings.................................................................. 22
4.1 Case study- ROL AB............................................................................22
4.1.1 The company........................................................................................22
4.1.2 Customers............................................................................................23
4.1.2.1 Process for customer firms...........................................................................................23
4.1.3 ROL AB’s current situation ...................................................................24
4.1.3.1 ROL AB’s current marketing strategy ...........................................................................24
4.1.3.2 Mr. Kron’s personal reflections .....................................................................................25
4.2 Interview with existing customers .........................................................26
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4.2.1 Abecita .................................................................................................26
4.2.2 Design House Stockholm.....................................................................27
4.2.3 Philip Morris..........................................................................................28
4.2.4 Posten ..................................................................................................30
4.2.5 Systembolaget......................................................................................31
4.3 Interview with potential customers........................................................32
4.3.1 Company A...........................................................................................32
4.3.2 Company B...........................................................................................33
4.3.3 Company C ..........................................................................................34
4.3.4 Duracell ................................................................................................35
4.3.5 Gina Tricot............................................................................................36
4.3.6 Hemtex AB...........................................................................................37
4.3.7 Zeta ......................................................................................................38
4.3.8 Åhléns AB.............................................................................................39
4.4 Firms operating in a B2B market using B2C tools ................................41
4.4.1 Ahlsell ...................................................................................................41
4.4.2 Ramirent...............................................................................................42
5 Analysis................................................................................... 45
5.1 Why is there a dichotomy between B2B and B2C markets? ................45
5.2 How is brand awareness affecting B2B and B2C markets? .................48
5.3 Which marketing tools are preferable in a B2B market?.......................51
5.3.1 Relational Marketing.............................................................................51
5.3.2 Transactional marketing .......................................................................54
6 Conclusion .............................................................................. 56
6.1 Suggestions for ROL AB ......................................................................56
7 Discussion............................................................................... 59
7.1 Limitations ............................................................................................59
7.2 Suggestions for further studies.............................................................59
References ................................................................................... 60
Appendices
Appendix 1 Interview guide for existing/potential customers.
Appendix 2 Interview guide for B2B firms that use B2C marketing tools.
Appendix 3 The ROL process for partners.
Appendix 4 Approval of interview with Monica Gustafsson, Philip Morris
Figures
Figure 2.1 - Theoretical Framework ....................................................................5
Figure 2.2 - The value of brand awareness (Aaker, 1991, p.63) .........................9
Figure 3.1 - Degrees of structure in interview (Jacobsen, 2002) .......................19
Figure 3.2 - Data analyzing ...............................................................................20
Figure 4.1 - ROL AB’s customer segments (ROL group, 2006d) ......................23
1
1 Introduction
This section has the purpose to give the reader an introduction to the subject in matter. Further, the first
chapter contains the background and problem discussion that will introduce previous and contemporary re-
search within the field of B2B markets and marketing. The chapter will proceed with a problem specifica-
tion resulting in the purpose of the study.
1.1 Background
In early history it might have been enough with innovative products, great engineering, or
great salesmanship solely to close a business deal. However, today’s firms are facing a dif-
ferent situation with shorter product life cycles and the intensity of global competition,
which no longer provides the luxury of “build it and they will come” thinking. Therefore, in the
present day situation firms need to focus more on marketing, and how to communicate
with the customers. (Olivia, n.d.)
Within the marketing field there has always existed a perceived dichotomy between Busi-
ness-to-Business (B2B) and Business-to-Consumer (B2C) markets. This is a general percep-
tion in the theory of marketing. The aspects that differ between B2B markets and B2C
markets according to Coviello and Brodie (2001) are the influences, buyer decision proc-
esses, and buyer-seller relationships.
It is said that B2B markets must be handled differently than B2C markets because of their
uniqueness due to a derived demand, long purchase cycles, and a market structure that is
shifting and fragmented (Lilien, 1987). A distinction is made on B2B marketing by concen-
trating on the attributes of product complexity, and buying process complexity (Webster,
1978). This is also supported by Håkansson and Snehota (1995) who adds to the assump-
tion of the dichotomy by claiming that B2B marketing is driven by relationships, which are
to be considered different from those in B2C markets. This is supposedly due to a continu-
ity, complexity, symmetry, and informality of the relationship (Coviello and Brodie, 2001).
Although, the question stands: Is there in fact a difference between B2B and B2C markets
and why do firms need to separate the marketing approaches towards the two? Are the pre-
vious recognized differences between B2C and B2B marketing practices just a historical ar-
tifact rather than a current reality? (Coviello, Brodie, Danaher and Johnston, 2002)
1.2 Problem discussion
Even though there are some differences between B2B and B2C markets, the process of
making a purchase seem to be the same in both markets. The process starts with gathering
information about alternatives, processing that information, followed by learning about
available products and determining which alternative matches the perceived needs most
closely. Finally, the process ends by the action of purchasing. (Brown and Fern, 1984)
Thus, it is said that the complexity of the decision itself makes a difference no matter what
kind of environment a purchaser is in.
Wilson (2000) asks “Why should we assume that separate theories are necessary to explain the exchange
behavior adopted by the same individual when placed in different contexts?” (p.780–781). People in a
business environment are not suddenly transformed from a human being into a robot
2
when acting in a business situation, but are in fact still humans (Pickton and Broderick,
2001). This implies that these people should be affected not only by traditional B2B mar-
keting tools such as direct marketing and personal selling, but also B2C marketing tools
such as emotional advertising (Blombäck, 2005).
Shipley and Howard (1993) conclude that the context of B2B and B2C buying behavior is
not broadly similar, but that specific elements are comparable such as the impact of brand-
ing (cited in Ede, Nairin and Naudé, 2004). Can human beings be affected by typical B2C
marketing tools when making a business decision in a B2B market environment? Conse-
quently, how does this affect a firm’s methods to generate brand awareness?
According to Keller (2003, p.2) can a brand be defined as a “name, sign, symbol, design, or a
combination of them, intended to identify the goods and services of one seller or group of sellers and to differ-
entiate them from those of competition”. It is stated that a brand in a B2C market is important for
a firm as a source for sustainable competitive advantage and to capture consumer prefer-
ences and loyalty. Therefore, firms need to build awareness and knowledge about their
brand. (Kotler and Armstrong, 2004; Aaker and Biel, 1993) A question that arouse is
whether it is becoming equally important in the B2B market?
Recently the perceptions has changed and it is said that B2B and B2C markets have more
similarities than previously assumed and this might affect the decision about which market-
ing tools to implement. This could even change the old way of thinking which states that
B2C marketing tools cannot be effectively used in a B2B market. Given that fact, it is inter-
esting to see whether B2C marketing tools could be successfully used in a B2B market in
order to achieve brand awareness.
1.2.1 Problem specification
The Swedish firm ROL AB will be used as a case study for this thesis. It is one of the lead-
ing store interior suppliers in the world delivering innovative retail solutions to its custom-
ers. Presently, ROL AB is a firm relatively unknown in its home market of Sweden. ROL
AB supplies many strong branded firms such as Disney, Chanel and Diesel. Thus, its goods
and services are seen by many, but still with no recognition of its work. ROL AB won a
marketing award five years ago. It won this award even though ROL AB was not marketing
at the time, but because it managed to sell through excellent performance. ROL AB is per-
forming similarly presently but are continuously loosing market share due to a competition
intense situation. This is evidence that it was just recently that the market of store interior
experienced a change and being visible became crucial for the survival of a firm.
ROL AB’s goal is to be the market’s most respectable supplier of store interior and to be
the absolute number one in Europe. Given the new market situation, in order to achieve
these goals, ROL AB needs to start marketing itself and its brand remarkably more than it
does today. Using the research done for this thesis, a course of action will be suggested for
ROL AB in order to lead it in the right direction.
1.3 Purpose
The purpose of this thesis is to critically analyze the attitudes towards different B2B mar-
keting tools and the possible appropriateness of using B2C marketing tools in a B2B mar-
ket in order to achieve brand awareness.
3
1.4 Delimitation
This thesis will only focus on the store interior industry, since we do not have resources to
analyze more then one market. B2B markets differ a lot and it is therefore important to
evaluate each market carefully.
ROL AB is operating in several countries, with manufacturing operations, sales force and
service partners all over the world. However, due to lack of time and resources to include
more countries, this thesis will focus only on the Swedish market.
1.5 Definitions
B2C: Business-to-Consumer.
B2B: Business-to-Business.
B2B markets: Markets where the customers are firms and not private persons, hence dif-
ferent characteristics.
B2C markets: Markets where the customers are private persons.
B2B marketing tools: Marketing tools that are commonly used in B2B markets. For ex-
ample direct marketing (mail and e-mail) and personal selling (phone calls, personal meet-
ings and trade fairs).
B2C marketing tools: Marketing tools that are mostly used in B2C markets such as mass
communication (advertising).
1.6 Disposition
The following disposition outlines the structure of the thesis:
Chapter Title Content
1
Introduction
This section has the purpose to give the reader an introduction to the
subject in matter. Further, the first chapter contains the background
and problem discussion that will introduce previous and contempo-
rary research within the field of B2B markets and marketing. The
chapter will proceed with a problem specification resulting in the
purpose of the study.
2
Theoretical
Framework
The theoretical framework first introduces the reader to the typical
characteristics of a Business-to-Business market, incorporating a
comparison to the Business-to-Consumer market. Thereafter a de-
scription of business buying decision behavior will be outlined. The
purpose is to determine whether or not people in a business buying
situation can be influenced by a firm’s corporate image, thus the im-
portance of strong brand awareness. Consequently, the relevance of a
strong brand in a B2B context will be presented and the different
marketing tools to achieve higher brand awareness. Both business
and consumer marketing tools will be examined in order to create a
foundation for our empirical study.
4
3
Methodology
This section will provide the reader with an understanding for the
course of action taken by the authors of the thesis in order to achieve
a result of relevance. First, different research methods will be pre-
sented followed by a theory and motivation of how methods were cho-
sen. Secondly, the case study of the firm ROL AB will be ex-
plained. Finally, the methods of how to collect and analyze the data
will be discussed ending with discussing the validity and reliability of
the results.
4
Empirical
findings
This chapter presents the results from the empirical findings. It starts
with a presentation of ROL AB, the firm that is used as a case
study. It continues with interviews made with ROL AB’s potential
and existing customers. It is done in order to investigate their
thoughts regarding their supplier relationships, different marketing
tools, and some personal opinions about B2B markets. The chapter
ends with two interviews with firms that today use B2C marketing
tools in B2B markets.
5
Analysis
This section has the intention to connect presented theory with em-
pirical findings. The focus is on the research questions in order to
answer the purpose of the thesis and they will work as headings to
provide a structure. First it will be determined whether the perceived
dichotomy is true or not by an analysis of B2B and B2C markets,
and continues with the importance of brand awareness in B2B mar-
kets. Lastly, an analysis with an evaluation of different marketing
tools will be conducted with the purpose to find the sufficiency of rela-
tional marketing, and the appropriateness of using transactional
marketing.
6
Conclusion
In this section we will present the final conclusions which answer the
purpose. Further, the analysis resulted in a number of suggestions
regarding marketing strategies for ROL AB which will be presented
as a course of action to achieve higher brand awareness.
7
Discussion
This chapter discusses the outcome of the thesis. It presents some
limitations of the study which are important to be aware of in order
to get the correct interpretation of the result. The chapter continues
with some criticism of the chosen method and how it could have af-
fected the result. Furthermore, some areas for further studies are pre-
sented.
5
2 Theoretical Framework
In order to provide an appropriate overview of this thesis a model has been constructed (Figure 1). Purchases
of store interior takes place in a Business-to-Business market. The theory will therefore first introduce the
reader to the typical characteristics of such a market, incorporating a comparison to the Business-to-
Consumer market. Thereafter a description of business buying decision behavior will be outlined. The inten-
tion is to determine whether or not people in a business buying situation can be influenced by a firm’s corpo-
rate image, thus the importance of strong brand awareness. Consequently, the relevance of a strong brand in
a B2B context will be presented and the different marketing tools to achieve higher brand awareness. Both
business and consumer marketing tools will be examined in order to create a foundation for our empirical
study.
Figure 2.1 - Theoretical Framework
2.1 Principal B2B market theory
In order to facilitate for the reader, a short presentation to the B2B market will be intro-
duced so also the concept of B2B marketing. To create a better understanding these two
concepts will be compared to a more known concept within Marketing Principles i.e. B2C.
The main difference between B2B and B2C markets is that firms in B2B markets are buy-
ing from other firms instead of private consumers buying from firms, which is the case in
B2C markets (Ford, Berthon, Brown, Gadde, Håkansson, Naude, Ritter, and Snehota
2002).
Anderson and Narus (2004, p.4) define business markets as “firms, institutions, or governments
that acquire goods and services either for their own use, to incorporate into the products or services that they
produce, or for resale along with other products or services to other firms, institutions, or governments.”
Further assumed differences between consumer markets and business markets is that cus-
tomers in consumer markets mainly focus on aesthetics or taste whereas customers in a
business market are focusing more on functionality or performance (Anderson and Narus,
2004). Additionally, purchasing in B2B markets are mainly performed by professional buy-
ers. The relationships between buyers and sellers are very important and never exist in iso-
lation. Each transaction can take a very long time and often requires lots of money. Involv-
ing many people in most of the business market transactions, the supply chain is often both
long and complex. (Ford et al, 2002)
The Market
Principal B2B Market Theory Business-to-Consumer Market
Branding
Marketing
Communication
Branding
Marketing
Communication
6
2.1.1 B2B marketing
As marketing has evolved in the two markets it has broken up into two main sectors, logi-
cally B2B and B2C marketing. Most attention has been paid to B2C marketing, but in re-
cent years the importance of B2B marketing has also been recognized. Although, the per-
ception of what the B2B Marketing concept really is varies. One can find many different
views by reading a range of literature. Ford et al. (2002) for example argues that the most
important aspect in a B2B world is that of relationships, while Anderson and Narus (2004)
argue for the sake of value creation.
Traditionally, marketing has had its focus on the last step in the value chain, i.e. when the
private customer buys something. However, before the customer acquires the goods, it has
been refined and resold many times. These steps that are taken place before the goods ac-
tually reach the end consumer are called Business Marketing. Business marketing is the task
of selecting, developing and managing customer relationships for the advantage of both the
supplier and the customer, with regard to their respective skills, resources, strategies, objec-
tives and technologies. (Ford et al, 2002)
Marketing in a B2C world is one-way communication to a passive buyer whereas in a B2B
context the buyer is active and interactions take place. When it comes to pricing the B2B
marketer need to prove the difference between their product and the competitor’s product
to the buyer based on hard facts. Marketers in B2C can often rely solely on the brand, ad-
vertising and consumers’ emotions and the consumers buying decisions is dominated by
the initial purchase price. (Ford et al, 2002)
B2B marketing relies deeply on direct sales and marketers and sales people need to work
closely together. A good advertisement can single-handedly create a buyer in B2C, whereas
advertisement in B2B has a different role and due to the smaller amount of customers in
B2B, word-of-mouth has a greater effect than what it has in B2C. In B2B the brand tends
to have a smaller influence on the buyers whereas in B2C, the power of brands can be a
tremendous tool for influencing the buyers. (Ford et al, 2002)
2.1.2 Business buying behavior process
According to Webster and Wind (1972) the B2B decision process is “by which formal organi-
zations establish the need for purchased products and services and identify, evaluate and choose among alter-
native brands and suppliers” (cited in Fill, 2006, p.166). This is important to comprehend so
that the firm can deliver a suitable and effective marketing communication mix. A B2C
buying process is relatively simple, usually it is a one-step process with one or two indi-
viduals involved. Buyers in B2C are often driven by feelings and emotions and they do not
always have a great understanding of the products they buy. Whereas B2B buyers are more
specific oriented and they tend to have a good understanding of the products they want.
Additionally, B2C buyers are not facing any particular risk more than the loss of money
they pay for the product or service. (Ford et al., 2002; Anderson & Narus, 2004). Other
special characteristics associated with B2B buying behavior are for example larger and more
complex orders.
A purchase is made by a number of people which see the importance of the task, since it
concerns the whole firm, in addition its own career. It is further explained that the pur-
chase decision process concerns many, not only a few representatives. This group of peo-
ple is referred to as the decision making unit (DMU) and will differ in size depending on
7
the complexity of the problem being solved. In accordance with individual consumers,
every member of the DMU is active problem solvers and processes information so that
personal and organizational goals are accomplished. (Fill, 2006) This is an indication that
purchases on impulse are fairly rare in the business market context, and that the buying
process is more time consuming than what is known in the B2C market. Additionally
Blombäck (2005) notes that business buyers are active and want to interact, build relation-
ships and be a part of business networks rather than being passive which is more common
to see in a B2C context. Different people in the centre of decision making will have differ-
ent need of information depending on their responsibilities. Moreover they say that if one
looks behind these roles, the individual will have their own perceptions, expectations and
objectives based on their personalities and backgrounds. (Ford et al, 2002)
In the end of Fill’s (2006) theory discussion about the decision making process in a B2B
context he mentions something of real interest for this thesis. He brings up Simon’s (1976,
cited in Fill, 2006) view of the environment which claims that the environment is too com-
plex and dynamic for the decision maker to comprehend and create an objective view.
Hence the member of the DMU will rather rely on knowledge and experience as a basis of
there decision. Further Brand (1972) established that “It is clear that industrial purchasing deci-
sions are not solely governed by a rational review of the problem posed if ‘rational’ is to be interpreted as a
long fully considered view of all possible alternatives in order to obtain maximum company profitability”
(cited in Blombäck, 2005, p. 49).
Due to the outlined characteristics of the market and its buyers, B2B marketing theory
consequently has focused on rational information, long-term contracts and personal rela-
tionships. In turn this has shaped assumptions of how marketing communications should
be handled and what communication tools that is realistic in a B2B market.
It is suggested by Blombäck’s (2005) research that promotion in B2B markets is focused
upon “rational and economic issues”, and similarly Anderson and Narus (2004) states that
it is focused upon “on performance and functionality”. The research further claims that
personal sales are the leading sales tool. Nevertheless, marketing communications towards
business customers does not announce any limitations for what tools that is usable. Be-
cause, for effectively communicating messages one first learn how business buyers make
decisions. Once these processes are understood, it is possible to select a suitable message,
media, and tools to reach these vital market segments. (Clow & Baack, 2002, cited in
Blombäck, 2005)
2.2 Branding
A brand is a “name, sign, symbol, design, or a combination of them, intended to identify the goods and
services of one seller or group of sellers and to differentiate them from those of competition” (Keller, 2003,
p.2). According to Kotler and Armstrong (2004) a brand outlasts the firms’ specific prod-
ucts and facilities and is a powerful asset that must be carefully developed and managed.
They further claim that a brand can deliver up to four levels of meaning; attributes, values,
benefits and personality.
The brand is important for the firm as a source for sustainable competitive advantage.
Strong brands are often one of the firm's most valuable assets, thus managing and develop-
ing them is of crucial importance for the long-term profitability of a company (Keller
2003). Strong brands reside in the minds of consumers and have power to capture con-
sumer preferences and loyalty (Kotler and Armstrong, 2004).
8
2.2.1 Brand equity
An important area for firms is brand equity, which is the positive differential effect that
knowing the brand name has on consumer response to the product or service (Kotler and
Armstrong, 2004). Keller (2003, p.60) gives a formal definition of Customer-based brand
equity as “the differential effect that brand knowledge has on consumer response to the marketing of that
brand”. He further discuss that brand equity occurs when the customer has a high level of
awareness and familiarity with the brand and that it holds some strong, unique and favor-
able associations in memory.
There are several aspects that need to be fulfilled in order to reach brand equity. One of
them is brand awareness.
2.2.2 Brand awareness
According to Kapferer (1992, p.88) “a brand without awareness is but a blob on a product – voice-
less and devoid of meaning”
Firms need to build awareness and knowledge about their brand in order for it to be pow-
erful and increase customer loyalty. People must be familiar with the brand and must also
feel good about it. (Aaker and Biel, 1993)
The concept of brand awareness is a common measure of marketing communication effec-
tiveness and is related to the strength of the brand presence in the mind of the consumer.
Brand awareness is reflected by consumer’s ability to identify and remember the brand un-
der different conditions ranging from recognition (i.e. have the customer been exposed to this
brand before), to recall (i.e. what brands of this product class can the customer remember),
to “top of the mind” (i.e. whether the brand is the first to spring to mind when mentioning a
certain category of products) and finally to dominance (i.e. the brand is the only one in that
product class). (Aaker, 1996)
The power of a brand lies in what resides in the minds of customers. The challenge for
marketers in building a strong brand is ensuring that customers have the right type of ex-
periences with products and services and their accompanying marketing programs so that
the desired thoughts, feelings, images, beliefs, perceptions, opinions, and so one become
linked to the brand (Keller 2003). This is further highlighted by Aaker (1991) when he
claims that brand awareness is the potential buyer’s ability to recall and/or recognize that
the brand is a member of a certain product category and that there is a link between the
brand and the product class. There are two key dimensions that distinguish brand aware-
ness, depth and breadth. The depth of brand awareness refers to how easy it is for custom-
ers to recall or recognize the brand. Breadth of brand awareness refers to the range of con-
sumptions and purchase situations where the brands come to the customer’s mind. A
highly salient brand is a brand with both breadth and depth of brand awareness. Not only
has the brand to be “top of mind”, but also do so at the right place at the right time. Many
products and brands are unnoticed and forgotten in possible usage situations and increas-
ing the salience of the brand in those settings can be a help in driving consumption and in-
crease sales volume. (Keller, 2001) Aaker (1996) further states that awareness reflects both
the salience and the knowledge of the brand in the customers’ minds. Salience is about the
depth of brand awareness, recognition and recall.
Aaker (1991) then explains how awareness works to help the brand. According to him
brand awareness creates value in the following four ways.
9
Figure 2.2 - The value of brand awareness (Aaker, 1991, p.63)
1. The brand recognition is the first and most basic step in the communication task.
In most cases it is no use and a waste of time to attempt to communicate a brand’s
attributes until a name is established with which the attributes can be associated.
2. Brand recognition provides the brand with a sense of familiarity, and people tend
to like the familiar. In some cases it is the familiarity that drives the buying behav-
ior.
3. Awareness of the brand name can be a signal of commitment, presence, and sub-
stance, attributes which can be important to industrial buyers as well as consumer
buyers.
4. One of the first things to do in the buying process is often to select a group of
brands to be considered. Usually, the buyer will not be exposed to several brand
names during the process, except from happenstance. The first supplier that comes
to customer’s mind will then have an advantage.
2.2.3 B2B branding
The increased competition in many markets today puts a lot of pressure on companies to
differentiate themselves in order to be competitive. One way to do that is through brand-
ing. Marketing theories often state that companies with a strong brand often get a competi-
tive advantage in comparison with those companies with weaker brands.
According to Anderson and Narus (2004) business market managers are always striving to
establish and build their brands. They further state that the managers believe that they, by
adapting concepts and practices of their counterparts in the consumer markets to the B2B
settings, can build brand equity and also benefit from it.
In order to build brands in business markets, Keller (cited in Anderson and Narus, 2004,
p.159) propose some guidelines.
• Create a well-defined brand hierarchy by adopting a corporate or family branding
strategy.
• Link non-product-related image associations (i.e. social benefits as “peace of mind”
or “ease of doing business”).
Brand Awareness
1. Anchor to which
other associations can
be attached
2. Familiarity ? Liking
3. Signal of Substance/
Commitment
4. Brand to be conside-
red
10
• Use a full range of marketing communication options.
• Leverage equity of other companies who are customers.
• Segment markets cautiously and develop tailor-made branding and marketing pro-
grams.
2.3 Marketing communication
Marketing communication is of significant importance in both B2B and B2C markets. It is
essential for all firms to communicate its message to customers in order to increase their
sale. To be able to communicate efficiently with the customers, firms need to decide which
marketing communication concepts they will use.
Research made by Coviello and Brodie (2001), shows that B2B firms are more relational in
their approach to the market, whereas consumer firms are somewhat more transactional.
However, the overall patterns of marketing practice are similar across firm type. Further-
more research has shown that both the transactional and the relational paradigms are rele-
vant in contemporary marketing, regardless of what type of market that is served (Coviello
and Brodie, 2001).
Grönroos (1997) confirms that it is the marketing mix management paradigm, with the 4
P’s, that has dominated the thought of marketing since it was first introduced in the 1960s.
According to Kotler et al. (2005), the four P’s include:
• Product: the actual product or service being produced.
• Price: the price that is charged and terms associated with the sale of the product.
• Promotion: promotion and other communication activities associated with marketing
the product.
• Place: the distribution and the logistics function that is needed to be considered in
making the service or product available.
However, in recent years this paradigm has begun to lose its position and new approaches
have emerged in marketing research. One of the new leading approaches that have entered
into the marketing literature is an approach called relationship marketing. (Grönroos, 1997)
Another marketing researcher named Frederick Webster (1992, p.14) also came up with the
conclusion in his analysis of the developments in businesses and marketing that “there has
been a shift from a transaction to a relationship focus”.
Furthermore, Coviello et al. (2002) argues that it is appropriate to broaden the understand-
ing of relational and transactional exchange and beyond the view of a two-way classifica-
tion. Therefore, a more pluralistic conceptualization of marketing is needed. Coviello, Bro-
die and Munro, 1997) developed a framework that does not see relational and transactional
marketing as two separate paradigms. Their framework suggests that there are two general
marketing perspectives, comprising four distinct types of marketing, specifically:
• Transactional marketing
- Transaction marketing: that is to managing the marketing mix, i.e. the 4Ps, in
order to attract and satisfy customers.
11
• Relational marketing
- Database marketing: where technology-based tools are used in order to target
and maintain customers.
- Interaction marketing: includes the development of interpersonal relationships
in order to create cooperative interactions between sellers and buyers for
reciprocal benefits.
- Network marketing: that is about the development of relationships between
the firms within the network in order to be able to coordinate activities
among several parties for mutual benefit, exchange of resources and so
forth.
These four marketing aspects will be further explained below, and connected to specific
marketing tools.
2.3.1 Transaction marketing
The traditional way of marketing is also referred to as transaction marketing or the market-
ing-mix management. The reason for this is due to the focus on managing the marketing
mix variables of the 4 P’s, i.e. Product, Price, Place and Promotion, in order to make a
transaction, i.e. attract the customers. This approach is involving discrete economic trans-
actions, generally treated in isolation at arms-length and in a formal and impersonal proc-
ess. (Coviello, Brodie and Munro, 2000)
According to Christopher et al. (2000), transactional marketing is focused on a single sale in
the short term. They further state that transaction marketing is oriented towards product
features and has little emphasis on customer service involving limited customer commit-
ment and moderate customer contact. In contrast to relationship marketing, the view of
quality is primarily a concern of production.
Grönroos (1997), states that there is not much more than the core product, and sometimes
the firm’s brand, that keeps the customer attached to the seller in transaction marketing.
Advertising
Advertising is an important part in transaction marketing. This marketing tool is mostly
used in the B2C context (Kotler, Wong, Saunders and Armstrong, 2002). It is defined as
any paid form of impersonal one-way promotion of goods and services by a firm, and the
aim is to deliver the message to customers in order to make an offer more attractive to
them (Tellis, 2004). It includes radio, print media, television and display marketing. This is a
useful marketing tool because it can reach many people at different locations. It enables the
firm to repeat its message many times, which is important to do in order for the marketing
to be efficient. Advertising could be useful when a firm wants to build up an image for a
product or service. However, it is important to know that this is a channel with no personal
contact or feedback. (Kotler et al, 2002)
2.3.2 Relational marketing
According to Grönroos (1996) relationship marketing has not been used as a term before
late 1980s. Grönroos further defines in his article “Relationship Marketing: Strategic and
tactical implication” that “Relationship marketing is to identify and establish, maintain, and enhance
12
relationships with customers and other stakeholders, at a profit, so that the objectives of all parties involved
are met. This is done by a mutual exchange and fulfillment of promises” (p. 7).
Another relationship marketing definition is made by Gummesson (2002) and according to
him relationship marketing is marketing that has its focus on relationships, networks and
interactions. The concept of relationship marketing has emerged within the fields of indus-
trial marketing and service marketing (Grönroos, 1997).
Grönroos (1996) further states that there are three important strategic issues of the typical
relationship marketing approach.
1. defining the firm as a service business.
2. managing the firm from a process management perspective.
3. developing partnerships and networks.
Additionally, he explains three typical tactical elements of a relationship marketing strategy;
seeking direct contacts with customers, building a database, and developing a customer-
oriented service system.
Relationship marketing is based on a belief of trusting cooperation with known customers.
The firm has to; in order to pursue a relationship marketing strategy, create a database con-
sisting of customer information so that, for example, sales contacts and advertising cam-
paigns can be made as relationship-oriented as possible. (Grönroos, 1996)
In contrast to transaction marketing, relationship marketing focuses on customer relation
over a long term period. Another difference between the two approaches is that relation-
ship marketing has an orientation on product benefits and emphasizes high customer ser-
vice, customer commitment, and customer contact. (Christopher et al., 2000). The view of
quality is the concern of all. This is further confirmed by Grönroos (1997, p.330) as he says
that “In relationship marketing the functional quality dimension grows in importance and often becomes the
dominating one”.
Another dissimilarity that Grönroos (1997) discusses is that in transaction marketing it is
through the core product that the customers is attach to the supplier, whereas in relation-
ship marketing the firm has created more value for its customers than that provided by the
core product alone. These firms develop more and tighter ties with its customers, e.g.
through technology, information, and knowledge related ties. In relationship marketing the
view of price differs from transaction marketing. Price is not unimportant but “relationship
marketing makes customers less price sensitive” (Grönroos, 1997, p.330).
According to Coviello et al. (1997) relational marketing can be divided into three different
types of marketing, which will be described and connected to different marketing tools be-
low.
2.3.2.1 Database marketing
Database marketing is used both in B2B and B2C markets. It uses the information that dif-
ferent databases provide in order to employ direct marketing to communicate with cus-
tomers. The main reason for firms to use databases is to get information about individual
customers, in order to create and develop relationships. This type of marketing is also a
cost-effective way to stay in touch with the customers. (Drozdenko and Drake, 2002) In-
formation and technology-based tools is used to target and maintain customers (Coviello et
13
al, 2002). Database marketing can be defined as “one-to-one” marketing since the ad-
vanced technology make it possible for firms to develop individual relationships with cus-
tomers. It uses individual addressable and interactive media in order to reach the customer.
(Coviello et al, 1997) A database is a file including information about potential customers.
Firms use it to gain a better understanding of the customers and try to create some kind of
relationship with them, often through direct marketing (Drozdenko and Drake, 2002). It is
important that at least some part of the communication from firms to their customers is di-
rected to named consumers (Stone, Bond and Foss, 2004).
This marketing type is according to Coviello et al, (1997) more “to” the customer than
“with” the customer, and the formal communication is driven and managed by the firm.
The relationship is distant and do not involve personal interaction, and the focus is more
on information gathered through technology-based tools. Information from internet and
databases are examples of information technology, which help firms to create a relationship
with its customers. The information that the firms acquire helps them to make the mass
marketing more personal and thereby creates a type of relationship with the customers.
(Coviello et al, 1997)
Coviello et al. (1997) further states that the main objective with database marketing is to
build up a long-term relationship with the customer, and not see the marketing effort as a
short time investment. The firms want to differentiate messages to the customers based on
their specific characteristics and preferences.
Direct marketing
Direct marketing is the preferred marketing tool in database marketing. It is direct commu-
nication with specific targeted individual customers through telephone, mail, fax, e-mail,
and internet, with the purpose to create lasting customer relationships. This is a tool that is
non-public, since the message is normally addressed to a specific customer. It can be cus-
tomized in order to attract a specific customer, and build a one to one customer relation-
ship. It is an impersonal tool with no personal contact. Kotler et al (2002) does not define
this marketing tool as being particularly used in either a B2B or a B2C context, and we
therefore assume that this marketing tool is used in both contexts. (Kotler et al, 2002)
Important factors that are focused upon are concentration, personalization, and immedi-
acy. The advantage of concentration is that a firm can focus and concentrate its marketing
efforts on segmented markets and customers in order to make the marketing efficient. Per-
sonalization is another cornerstone since a firm can address the marketing to specific cus-
tomers and thereby make the marketing specified. Immediacy is important due to the fact
that direct marketing can establish a desire and often also lead to action. (Nash, 2000)
2.3.2.2 Interaction marketing
Interaction marketing is mainly used in B2B markets, and defined as face-to-face interac-
tion within relationships (Coviello et al, 1997). It includes interpersonal relationships which
create cooperative interaction between buyers and sellers of equal benefit (Coviello et al,
2002). Personal selling through personal meetings and phone calls are preferred marketing
tools in this type of marketing. The focus is on persons instead of the company, and im-
portant factors are personal contacts, bargaining, information exchange and establishment
of individual relationships. Coviello et al (1997) defines interaction marketing as a process
that engages individuals, who take initiatives to complex relationships and handle personal
interactions. These relationships are based on trust, dependence, commitment, adaptation
14
and satisfaction between the persons involved in the interaction. Well functioning relation-
ships are the main objective in this type of marketing. These relationships can be both
formal and informal, with the actors being equally adaptive and active. (Coviello and Bro-
die, 2001)
Coviello et al (1997) further states that interaction marketing is truly “with” the customer,
since the individuals and organizations invest resources to develop commonly valuable in-
terpersonal relationships. The focus is on negotiation and joint planning, and involves
value creation for all actors included in the process.
Personal selling
Personal selling is a marketing tool that is mainly used in B2B markets, and especially in in-
teraction marketing and network marketing. In interaction marketing the focus is on the
personal communication channel, which is when two or more people who directly com-
municate with each other. This could be done face-to-face, by telephone and mail, and also
over the internet. It is an effective way to communicate the marketing messages, since it al-
low for personal discussion and feedback. (Kotler et al, 2002)
2.3.2.3 Network marketing
Network marketing is mainly used in B2B markets, and personal selling including trade
fairs and sale presentations are the preferred marketing tools in this type of marketing. It
develops relationships between firms and coordinate activities among several parties for
common benefit, resource exchange, market access and trust. (Coviello et al, 2002) It fo-
cuses on multiple network relationships between firms and has a significant interest in the
“connectedness” of these relationships. The coordination of the network is through inter-
action between firms within the network, and relationships are established between firms.
(Coviello et al, 1997) A network can be defined as a set of different connected relationships
between firms. The relationships are established through interaction marketing, but focus
more on the network as a whole rather then on one specific interaction and relationship.
According to Coviello et al (1997) are creation, utilization and maintenance important parts
of the network. Grönroos (1997) states that the different interactions and exchanges within
the network have impact on the firms’ position in the network.
Each firm in a network has both direct and indirect relationships with customers and sup-
pliers, which can be both formal and informal. These relationships are part of a larger net-
work and can be both interpersonal and impersonal, which mean both close and distant.
The level of power, dependence, and communication differs between different relation-
ships. The networks are constructed through social relationships overtime, and has there-
fore a strategic orientation. (Coviello and Brodie, 2001)
Personal selling
Personal selling is the marketing tool that best fits with this kind of marketing. It is a tool
that is mostly used in a B2B context and especially in markets with fewer and larger sellers.
The firm’s sales force does personal presentation in order to marketing and sell products,
and also to build customer relationships. This marketing tool includes trade fairs, trade
shows, incentive programs and sales presentations. Personal selling is important when
building up customers’ preferences, convictions and actions. It involves personal interac-
tion, and can thereby make adjustments to the customers’ specific characteristics. The main
objective is to build a long term relationship with the customer. It is the firms’ most expen-
sive promotion tool, and requires a good and well educated sales force. (Kotler et al, 2002)
15
2.4 Research questions
The research questions will be used for discussion in the analysis in order to come to a
conclusion of our purpose. The different questions are structured as headings in the analy-
sis which in turn is connected to the theoretical framework.
• Why is there a dichotomy between B2B and B2C markets?
- What differences in behavior are there in B2B and B2C markets?
- Is there a need to separate the marketing approaches towards the different
markets?
• How is brand awareness affecting B2B and B2C markets?
- How important is brand awareness in a B2B market compared to a B2C
market?
- How can or does a brand affect a person in a business decision situation?
• Which marketing tools are preferable in a B2B market?
- Which marketing tools are most efficient to use in B2B markets, especially
in the area of store interiors?
- In what way, if possible, can professional buyers be influenced when mak-
ing a purchase decision by marketing tools they are exposed to outside of
work?
16
3 Methodology
This section will provide the reader with an understanding for the course of action taken by the authors in
order to achieve a result of relevance. First, different research methods will be presented followed by a theory
and motivation of how methods were chosen. Secondly, the case study of the firm ROL AB will be ex-
plained. Finally, the methods of how to collect and analyze the data will be discussed ending with discussing
the validity and reliability of the results.
3.1 Research methods
For the empirical findings a number of qualitative interviews will be conducted. The inter-
views will be carried through with ROL AB and some of its existing customers as well as
some of its potential customers. The interview will focus on how these customer’s supplier
relationships are structured, how they perceive B2B markets, different marketing tools and
how they prefer to be approached. Additionally, two B2B firms that today use B2C market-
ing tools will be interviewed in order to understand why they have chosen to use these
tools and what they gain from it.
3.1.1 Conditions for choosing method
The decision of what kind of method to use depends on several conditions, i.e. the course
of action, the problem statement, the intention of the purpose (not discussed), prerequi-
sites, and resources (Halvorsen, 1992).
3.1.1.1 The course of action
Inductive measurement is when the reality seems ambiguous. Reality is therefore met with-
out any clear hypothesis, hardly without any conditions, and with a vague problem state-
ment. The purpose is to not test the theories through hypothesis but to evolve an overall
picture of the phenomena. The arrangement is flexible and the researcher does not in ad-
vance get restricted to a specific method of data collection. The deductive course of action
on the other hand has the purpose of assessing the trustworthiness in theories through the
testing of hypothesis. This requires a precise problem statement and to know what is mean-
ingful to investigate and collect information about. An inductive course of action is often
associated with qualitative methods which for example concerns the participation of an ob-
servation, whereas the deductive course of action are often associated with quantitative
methods which for example concerns surveys. The course of action is dependent on
whether to use inductive or deductive measurements. (Halvorsen, 1992) This thesis will
have an inductive course of action and have the underlying principle to expound theories
regarding the existing dichotomy between the two markets (B2B and B2C). Further the
marketing tools attached to them will be discussed.
3.1.1.2 Problem statement
A researcher should not decide upon research methods until the problem statement is cre-
ated, since as stated, the inductive course of action does not need a precise problem state-
ment. Although this thesis will use the inductive course of action, a clear as possible prob-
lem has been stated. This has been done in order to receive results that are relevant for the
study. Halvorsen (1992) suggest that one should ask questions like; which methods will
provide us with data that is of highest relevance for our problem statement? Often it is in
17
favor to combine several methods of data collection, not least because most social phe-
nomena both have quantitative and qualitative attributes.
3.1.1.3 Prerequisites and resources
The choice of research method cannot only be based on the course of action, the problem
statement and the intention of the purpose. The most suitable methods are not always pos-
sible because of restraints when it comes to knowledge, time and money; hence, a second
best alternative might be adapted. (Halvorsen, 1992) This aspect is to be seen as highly
relevant for this case study. Time is scarce and money is limited if even existing, therefore
the thesis will be dependent on the authors’ knowledge and interpreting ability.
3.1.2 Quantitative vs. Qualitative
Research methods are tools to achieve the goals of the surveys for a specific research, i.e. a
way to solve a problem and reach new knowledge (Tranoy, 1986). According to Riley, in
Holme and Solvang (1996, p.13), the concept of method is specified as “Social scientific
method concerns both the organizing and interpretation of information that enable us to gain better compre-
hension about the society”. Halvorsen (1992) elaborates in the subject by adding that the
method is more than just a research technique. He claims that it is the whole science of
how you collect, organize, work, analyze, and interpret the social facts in such a systematic
way that others can understand what is being put across.
Within the field of research methods two methodical ways of conducting a research are de-
fined; qualitative and quantitative (Holme and Solvang, 1996). Qualitative methods are more
fundamentally descriptive and focus on the processes and facts that will enable you to
comprehend the meaning of what is going on (Denzin and Lincoln, 2000; Holme and Sol-
vang, 1996; Gillham, 2001). The goal with a qualitative approach is to find unique and char-
acteristic details about the subject that is analyzed and not trying to generalize as the goal is
in a quantitative approach. It concerns the creation of examples and through them try to
draw conclusions. A qualitative research can be conducted in several different ways. How-
ever, it is commonly done through in-depth interviews and observations. (Svenning, 2003)
The advantage with using a qualitative research method is that it provides the researcher
with a complete picture and coherence of the field of interest. This approach creates a bet-
ter view since the interviews provides in-depth information about the studied subjects.
(Holme and Solvang (1996)
Quantitative methods are those which involve counting, measuring, and analysis of casual re-
lationships between variables; trying to explain the phenomenon (Denzin and Lincoln,
2000; Holme and Solvang, 1996; Gillham, 2001). The researches own ideas about how to
interpret the data and which variables to use will highly affect the analyzed phenomenon
(Alvesson and Sköldberg, 1994). The Quantitative research is statistical and require inter-
pretation in order to gain meaning, hence Gillhams (2001, p.10) statement “Facts do not
speak for themselves –someone has to speak for them.”
3.1.2.1 Method chosen
As stated earlier, the choice of which method to use is dependent on the purpose of the
thesis (Tranøy, 1986). The purpose of this thesis is to critically analyze the attitudes towards
different B2B marketing tools and the possible appropriateness of using B2C marketing
tools in a B2B market in order to achieve brand awareness. A qualitative method is there-
18
fore found to be more appropriate since it will create a better clarity of the somewhat ob-
scure phenomena. The use of qualitative research will enhance the interpretation and the
understanding of the topic. (Jacobsen, 2002) In order for us to be able to answer our pur-
pose we need to go on a deeper level in the analysis of the firms and therefore we have
chosen a qualitative approach.
Not to forget, there are also some disadvantages that one has to keep in mind when using a
qualitative approach. The analysis of the gathered data will be biased by the writers own
experience and knowledge (Holme and Solvang, 1996). There can also be an interpretation
problem when dealing with interviews since words are more difficult to analyze than fig-
ures. It can be hard to understand and grasp the exact meaning that the interviewed people
want to communicate (Svenning, 2003).
3.2 Case study
A case study has been chosen for this thesis in order to obtain some of the empirical data.
We have chosen to make a case study of the B2B firm ROL AB and its customers in order
to analyze attitudes towards different B2B marketing tools and the possible appropriateness
of using B2C marketing tools in a B2B market in order to achieve brand awareness.
This kind of method is a general strategy that has it attention on complex interactions of
multiple data-collection methods. It examines a real-life event in its natural situation and
the goal is to capture both a phenomenon and its context. Case studies have different goals
in different situations, such as finding explanations, exploring a topic, or just describing
what is going on. (David, 2006)
There are several reasons for choosing a case study approach. First of all, a case study is
the study of a specific case and its complexity in order to understand its activities within
important circumstances. It looks for details of the interaction with its context. The pur-
pose of studying a case is to maximize the learning from it. One can choose to have one or
several case studies. (Stake, 1995) However, due to limited time for writing this thesis and
by a great opportunity to cooperate with a firm, ROL AB, our focus has been on solely
one case study.
A case study suits well for our purpose since it is an in-depth study of a specific case in or-
der to get a deeper understanding of the particular subject of the case. It can include obser-
vations, field studies and interviews. (Hamel, Dufour and Fortin, 1993) This case study will
be undertaken in order to answer our specific research questions. We seek different evi-
dence for the case and we are trying to gain the best possible answer to the research ques-
tions in regards to the purpose. The main objective is to create new knowledge through the
evidence and the research materials which then have to be analyzed in order to make sense.
(Gillham, 2001)
3.3 Interview selection
This thesis delimits its research to the store interior industry in Sweden. In regards to the
case study of ROL AB, a supplier of store interior, existing and potential customers of the
firm will be interviewed. The existing customers were contacted by us through ROL AB.
Potential customers were suggestions from ROL AB but contacted straight by us without
ROL AB’s involvement. The interviewed customers were chosen from the different areas
in order to receive a spread of the different kind of businesses, e.g. convenience retail,
19
health and beauty, retail stores. Two additionally firms was interviewed which successfully
conduct B2C marketing in a B2B context. These will have the purpose to provide a profes-
sional opinion in the matter of the thesis. All the contacted firms were interested and were
content to participate. The limited time for the writing and the recurrence of answers are
reasons why 15 firms were finally interviewed for the report.
3.4 Data collection
Two types of data were collected for this thesis; primary and secondary data. The collection
of primary data can be done in various ways such as questionnaires and surveys or as in this
case, by interviews. The secondary data is already existing data that was gathered for other
intentions than for this specific thesis. It is collected by numerous sources such as academic
reports, books, statistics et cetera.
3.4.1 Primary data
One part of the primary data was collected during three face-to-face interviews with Lars-
Owe Kron at ROL AB. The purpose with these different interviews was, for the first one
to do a preliminary study and to get to know the company. The second interview focused
on ROL AB’s marketing strategies, and during the third interview the same questions that
were used for the potential and existing customers were discussed. It was open interviews
that took approximately two hours each. Furthermore individual open interviews was con-
ducted with people in charge of purchasing decisions at some of the existing and potential
customers of ROL AB. Additionally, interviews with two representatives of firms that have
successfully exploited B2C marketing tools in a B2B market was conducted. The collection
of data was in the form of words, sentences and stories told by that person. The interview
could either have been conducted face-to-face or as in this case by telephone. The inter-
views were recorded and thereafter printed and analyzed. Each interview took approxi-
mately 20 minutes. The reason for choosing a telephone interview is to keep costs of travel
down, but also access information quicker, thus more efficiency.
The interviews can be more or less open as shown in figure 3.1, this depending on the re-
sult that wants to be achieved (Jacobsen, 2002). The rationale was to have the interview
semi-structured with a guide presenting the theme and in what order. The answers were
completely opened in order for the person interviewed to answer without any frame.
Figure 3.1 - Degrees of structure in interview (Jacobsen, 2002)
20
3.4.2 Secondary data
The secondary data is found mainly in the theoretical framework. This thesis has used aca-
demic reports, books and Internet sources to find suitable information concerning theories
and concepts presented. Search engines such as Google Scholar, E-journals, and databases
such as DiVA have been used. Books and academic reports used are listed in the reference
list and throughout the report.
3.5 Data Analyzing
In the analysis of the collected data the authors have compared the theories with the em-
pirical findings. The research questions are structured as headings in the analysis which in
turn is connected to the theoretical framework in order to facilitate for the reader to follow.
Each section will cover and analyze the different research questions and the purpose of the
thesis will pass through the analysis as a consistent structure. This information will then be
compiled in the conclusion to give an overall view and result of the thesis.
Figure 3.2 - Data analyzing
3.5.1 Validity and reliability
When working with empirical data and in this case personal interviews, the validity and reli-
ability of the research are important aspects to discuss. The problem with validity is the
same whether one conduct a qualitative or a quantitative research. According to Svenning
(2003) the problem with validity is smaller in qualitative research because that kind of re-
search stays closer to the empirical world. Validity concerns the fact that the collected and
measured data actually is the data that the researcher is expected to measure. It is also
about the connection between the theories and the empirical findings, i.e. if the collected
data are relevant for the study. The collected data has to be in accordance with the purpose
of the study and the theories. It also has to match the reality so that the researcher is able
to make the right interpretations of the data. (Svenning, 2003)
The reliability problem differs between the qualitative and the quantitative research ap-
proach. Reliability of the research has to do with the trustworthiness and the interpreta-
tions of the collected data. The result is reliable if a repeated research with the same meth-
21
ods and purpose would yield the same result again. (Patel and Tebelius, 1987) Reliability is
more important when doing a quantitative analysis than a qualitative analysis. This is due to
that quantitative analysis tries to generalize whereas qualitative provides examples. (Sven-
ning, 2003)
There are many aspects that have to be considered when dealing with interviews and the
researcher has to be aware of possible problems and how to reduce them. There are many
factors that can affect the interview and have an impact on the reliability of the research,
e.g. the respondent, the interviewer and other circumstances. It is also easy that misunder-
standings will occur. (Svenning, 2003)
In order to try to minimize possible misunderstandings all the interviews have been re-
corded in order to capture the complete conversation with all words, phrases and quotes.
The interviews in the empirical findings sections have been written word by word in accor-
dance with what the people have answered. They have not been summarized, construed or
reinterpreted by the authors. Additionally, to minimize and avoid possible misunderstand-
ings and misinterpretations in the empirical findings, a written form of the interviews has
been sent back to the interviewees by e-mail for approval. These measurements have con-
tributed to more validity and reliability to the thesis work.
22
4 Empirical Findings
This chapter presents the results from the empirical findings. It starts with a presentation of ROL AB, the
firm that is used as a case study. It continues with interviews made with ROL AB’s potential and existing
customers. It is done in order to investigate their thoughts regarding their supplier relationships, different
marketing tools, and some personal opinions about B2B markets. The chapter ends with two interviews
with firms that today use B2C marketing tools in B2B markets.
4.1 Case study- ROL AB
The following chapters are written in order to give the reader some facts about ROL AB, its customers and
its products.
ROL was from the beginning an abbreviation for Robert Olle Larsson, a father-and-son
owned firm. ROL AB has had a fast growing development. The firm started off by being a
product supplier to the convenience store industry. But the time for internationalization
was short; already in 1986 they won their first international turnkey supplier tender. As Kaj
Hjelm acquired the firm it has developed into a supplier of complete and complex solu-
tions to the retail industry - integrating design, manufacturing, sales, and installation func-
tions to meet the global requirements of the largest retail customers in existence today.
(ROL group, 2006c) In 1985 ROL AB was a small firm with an annual turnover of EUR 2
million and had only 11 employees. Today, ROL AB has an annual turnover of EUR 100
million and over 500 employees worldwide. (L-O Kron, personal communication, 2006-09-
14)
4.1.1 The company
ROL AB is a global manufacturing firm with headquarters and main production located in
Jönköping. The firm designs, develops, produces, and delivers a great assortment of inno-
vative retail solutions to leading retail stores across the world. ROL AB undertakes more
than 5000 installations across all continents every year. The firm is one of the leading store
fixture suppliers, providing store interior solutions in the world. It comprises of a number
of solid operating companies, where each of these are established in its local market. (L-O
Kron, personal communication, 2006-09-14)
The ROL group today is structured as follows:
• 8 manufacturing operations located in Europe, Asia, and South America.
• 13 sales operations in; Europe, North America, South America, Middle East, and
Asia
• 22 service partners located in Europe, North America, South America, Middle East,
Asia, and Australia. (ROL group, 2006a)
Its business concept is: ROL offers their partners access to concept and design skills, up to date produc-
tions facilities and enlarged business relations through a close co-operation. (L-O Kron, personal com-
munication, 2006-09-14)
23
ROL AB – Innovative Retail Solutions. Its brand communicates that its key strengths are that
is takes total responsibility; a “one-stop-shop” for the retail industry. Further it is a turnkey
supplier and it has everything under one roof. Thus, ROL AB can provide its customers
with a quick response to any request and can always promise to deliver and install a com-
plete and ready-to-use product. Lastly, ROL AB states another key strength is that it is a
global supplier with local knowledge, and that it knows how to do businesses across board-
ers. The combination of global expertise and local knowledge is a winning concept. (ROL
group, 2006b)
Its vision is to be the most admired supplier of interior design solutions on the market and
the absolute number one in Europe, with hope of a turnover of 2,5 billion SEK. This in
order to be able to achieve greater production volumes, thus a lower marginal cost. (L-O
Kron, personal communication, 2006-09-14)
4.1.2 Customers
ROL AB is a B2B firm working with customers who are in the B2C market. Its mission has
always been to maximize its client’s retail performance. The firm believes that more than 60
percent of purchase decisions are made only a couple of meters from where a product is
situated. ROL AB claims that well designed in-store equipment is vital for the successful
sale of a product. This is an argument that ROL AB is using when trying to attract, and
gain new customers. (L-O Kron, personal communication, 2006-09-14)
ROL AB is working with retail customers in several different areas:
Convenience retail
BP, Shell, Q8, Statoil, Esso, Caltex, Hemmakväll, 7-
Eleven, Pressbyrån
Miscellany
Posten, University libraries, i.e. Library of Jönköping Uni-
versity, Design House Stockholm, Ittala, IKEA, Philip Mor-
ris
Airports and Port terminals HK, Heathrow, JFK, Los Angeles
International chains/fashion
MaxMara, Diesel, Disney Store, NAF NAF, Craft, Sport
2000, LAGERFELD, Chevignon, Morgan
Pharmacies All over Sweden
Retail Stores ICA, Coop, Systembolaget
Health and Beauty Chanel, No.7, Boots
Telecom/Electronics Telenor, PC World/PC City
Figure 4.1 - ROL AB’s customer segments (ROL group, 2006d)
An example of one of ROL AB’s major order in recent year was when Posten, the Swedish
government owned mail service, where to change its concept and needed new store fixtures
to all their stores in Sweden. ROL AB was one of many suppliers who submitted a tender.
In the end, ROL AB was the winner due to its reliable offering of in-time delivery. ROL
AB did 4000 installations within 10 weeks in time, all of them very successful. (L-O Kron,
personal communication, 2006-09-14)
4.1.2.1 Process for customer firms
According to Lars-Owe Kron, there are three cases of how ROL AB is dealing with its cus-
tomers and where in the operating process ROL AB starts to be involved (see appendix 3).
The first case is that ROL AB leads and participates in all steps in the process and in that
way provides a total solution for the customer. It takes care of the whole process, from de-
sign to production. The second case is when a third party delivers the need phase and the
24
creative design works. ROL AB only makes the technical design, value engineer, prototype,
and fulfill the remaining process steps. The third and last case is when a third party delivers
the need phase, the design work, and the prototype. ROL AB then only makes the value
engineering of the product in order to reduce the product and logistic costs. (L-O Kron,
personal communication, 2006-09-14)
4.1.3 ROL AB’s current situation
Presently, ROL AB is relatively unknown firm in its home market of Sweden. Although
ROL AB supplies many strong branded and mainstream firms, such as Disney, Chanel, and
Diesel. People have seen its products in one way or another, but they are paramount to in-
visible since no one associates the products with the ROL brand. Its products are seen in
grocery stores, convenience stores, petrol stations, and airports all over Sweden and many
parts of the world. One major example of this unawareness is that very few know that
ROL AB provides retail solutions to many of the largest grocery stores in Sweden. It is vir-
tually unknown that all the shelves and store fixtures in ICA stores in Sweden are made by
ROL AB. Until today, ROL AB has been satisfied with being unknown and paid little at-
tention on marketing. However, a loss in market share has forced the firm to re-evaluate
firm policy. (L-O Kron, personal communication, 2006-09-14)
The market ROL AB operates within is tough and it has become more and more competi-
tive throughout the recent years. There are many large, competent, and proficient firms
competing for the existing customers. Today, there are 160 companies on the Yellow pages
who market themselves as being in the store interior industry. In order to cope with this
increased competition, retain old customer relations and gain new ones, ROL AB needs to
develop its current brand into a strong and highly recognized one. (L-O Kron, personal
communication, 2006-09-14)
When the sales director of ROL AB, Lars-Owe Kron, was asked; “If I, as a customer, want to
invest in new store fixture, how do I know that ROL is an existing supplier with a solution to my prob-
lem? He replied with “As it is today, you cannot know that”.
4.1.3.1 ROL AB’s current marketing strategy
ROL AB is in the unusual situation of being a large, mature and successful business but
facing the problem of having a non-existent brand. Changes in the market and the in-
creased competition, ROL AB has recently come under the realization that a strong brand
is necessary for their continued growth and success. Previously ROL AB did business and
sold products without any specific marketing strategy. However, it has come to the conclu-
sion that it needs to start marketing and to communicate its brand in order to meet the in-
creased competition. (L-O Kron, personal communication, 2006-10-20)
The firm has recently developed a competitor analysis in order to see how their competi-
tors are working and developing. It wanted to see who the competitors are, how big they
are and where in the market they are operating. ROL AB believes that, to have knowledge
about its competitors and understand their actions, it will enhance the development of the
firms own marketing strategies. (L-O Kron, personal communication, 2006-10-20)
ROL AB has started to develop its marketing strategy by conducting segmentation, in or-
der to see in which segment it should focus its recourses on. It has decided to focus on
grocery stores, fashion stores, health and beauty stores, electronic stores and convenient
stores. In these segments ROL AB will focus mainly on product development and diversi-
25
fication. The firm believes that the growth potential and attractiveness is highest in fashion,
health and beauty and electronic segments. (L-O Kron, personal communication, 2006-10-
20)
The firm has recently started to visit and exhibit different trade fairs around the world. It
believes that this might be a good way for the firm to find new customers and develop new
relationships. ROL AB has also developed brochures about its products, which is mainly
used at the trade fairs. However, except from the trade fairs and the brochures ROL AB
has not worked much with any other marketing activities. (L-O Kron, personal communi-
cation, 2006-10-20)
4.1.3.2 Mr. Kron’s personal reflections
In this section we have discussed the same questions as posed to ROL AB’s existing and
potential customers in order to receive Mr. Kron’s personal reflection in the subject.
November 21
st
2006. Personal interview with Lars-Owe Kron. Engineer, courses in electronics, marketing
and international marketing, 25 years of working life experience; five of them at ROL AB.
Marketing tools
Mr. Kron believes that trade fairs are a good way to reach and attract new prospects. How-
ever, they do not show any products on the fairs. This is due to the fact that if it is some-
thing that people think is really good, it will be copied directly. There are many people who
are going to different fairs just to grasp new ideas and then they take them with them back
to their old suppliers for production.
Another marketing tool that ROL AB has started to use is advertisements in newspapers.
Presently ROL AB makes a deliberate investment in the newspaper Habit, a pure fashion
paper showing how the fashion branch will look like a year from now. Habit was chosen
because it is only reached through subscription and has a very high reading frequency. For
that reason ROL AB is of the belief that the right customer segment will be reached. ROL
AB also considers advertisements in other branch papers such as Svenska Dagbladet and
Dagens Nyheter. One paper made a report about ROL AB some months ago which ROL
AB experienced a great and positive result from. Sending out brochures at a venture, so-
called “shotgun method”, is a waste of money and of no use according to Mr. Kron.
Personal opinions
Mr. Kron characterizes a B2B market by professional buyers. It is a more sensitive market
and the relative strengths in a B2B market is on a completely different level than in a B2C
market. Talking about B2B marketing he is of the belief that personal relations are the most
important tool. TV-commercials can be of interest if it is used in the right way he further
claims. Further Mr. Kron believes that it would have an impact on the people who do not
already know about ROL AB since it increases the awareness. Sitting at home watching TV
one’s protective barrier is down and one will be surprised and influenced by the unex-
pected. However, in a B2B context it should be used as a complement to other tools.
He further states; “The most important marketing is the daily work; to deliver in time and to always
keep one’s promise”
His final remark; “Of all things, the best defense you can get is continuous renewal and innovation”
26
4.2 Interview with existing customers
Interviews have been conducted with some of ROL AB’s existing customer. This has been
done in order to analyze their opinion about their supplier relationships, different market-
ing tools, and B2B markets. The firms businesses with ROL AB have also been discussed.
The people interviewed have all different titles, varying from purchasers to marketing man-
agers, depending on the organization and size of the firms. However, they have all in com-
mon that they are responsible for the purchase of store interior. This counts also for the in-
terviews with potential customers. The interview guide can been found in Appendix 1.
4.2.1 Abecita
Abecita was founded in Sweden in 1932 by Joel Åkerlund as he started a major corset fac-
tory in Borås; AB Corsettindusti. He started manufacturing traditional ladies lingerie such
as corsets, girdles, and bras and these products were and are still today the company's pri-
mary focus. Today the Scandinavian brand is Abecita found in over 1200 fine lingerie
shops all through Northern Europe.
November 13
th
2006. Telephone interview with Monica Sjösvärd, academic education at university in
USA, brand management courses at IHM, and several years of experience within the company.
Supplier relationship
Abecita is a B2B firm with almost no own stores. Therefore, its products are sold through
retailers. ROL AB was involved when Abecita decided to have new interior the exhibition
at Stockholm’s fashion house and to the new stores in Oslo. The exhibition focuses on re-
tailers and if they like the interior they see they will have the possibility to buy it to their
stores. This possibility is done since Abecita wants that its products should be presented in
the right way and also a way for Abecita to increase and strengthen the awareness of its
brand.
Marketing tools
The marketing director at Abecita, Mrs. Sjösvärd, prefers that suppliers contact her by tele-
phone. The second best alternative is that the supplier sends some kind of circular or bro-
chure where the company presents its products or services. If the suppliers send catalogues
or brochures it has to be accompanied by a telephone call, either before or after. If the ma-
terial is of interest, a meeting can be arranged. Abecita also seeks suppliers itself via the
Internet. Through e-mail is the worst alternative for the supplier to contact her via. An e-
mail is too easy to delete and ignore. In today’s working environment you receive a lot of e-
mails every day and it is easy to miss some of them.
Mrs. Sjösvärd is of the belief that there is no reason for ROL AB to do mass communica-
tion as it is a B2B company. She thinks that nice brochures and personal sellers out on the
market are the most important tools for ROL AB to use in order to attract new customers.
Personal opinions
Mrs. Sjösvärd sees some differences between B2B and B2C when it comes to marketing.
B2B marketing requires a smaller advertising budget than B2C marketing. She further
thinks that in a B2B environment one needs not to put much effort on creating an image,
but instead should work more with facts about the product, price and quality. In B2C you
have to embed image and feelings so that the customer can see that through the product.
27
Price and quality is always embedded in some way anyway, so one does not have to work
specifically with that.
Mrs. Sjösvärd believes that one acts in two different ways when doing a business purchase
or a private purchase because it is not “your own” money you are spending at work. She
thinks that one is affected in some ways of what one hears and sees if it is through the right
channels. If the companies choose the correct media for traditional B2C advertisement, the
advertising can create an interest even in a B2B context. As an example Mrs. Sjösvärd says
that if she sees an advertisement in Dagens Industri, it can create interest and affect her in
her work. If the same company should make an advertisement in a gossip magazine she
would not be affected in the same way, even though it is the same advertisement, since it
would make the suppliers less credible and serious.
When it comes to the impact of the brand, she believes that brands in B2B markets do not
have the same significant impact as it has in B2C markets, or it depends on the branch.
Clothes are highly brand sensitive, but in this case with interior, she believes it is of less
importance. However, it has some impact. Having awareness of a company or its brand can
influence, facilitate, and speed up a business decision since you already have gained a pre-
knowledge.
4.2.2 Design House Stockholm
Design House Stockholm offers a wide range of Scandinavian design objects that symbol-
ize Nordic simplicity. Its Flagship stores are found at NK in Stockholm and Gothenburg,
Selfridges in London, Magasin in Copenhagen, and Steen & Ström in Oslo. They are repre-
sented in 300 boutiques in Europe, 100 boutiques in Japan and over 200 boutiques in USA.
Design House Stockholm (DHS) has four of their own stores in Sweden and eight in total,
with plans to expand with six to eight new stores for next year.
November 14
th
2006. Telephone interview with Bo Schött, Bachelor of Business Administration with a
major in Marketing.
Supplier relationship
ROL AB has been providing DHS with new store interior since April 2006. This new rela-
tion was a result of a successful participation by ROL AB in a trade fair earlier this year.
DHS found ROL AB and another supplier to be of interest, and began to consider which
of them to start cooperation with. ROL AB won the deal thanks to its partner’s around the
globe which was in line with DHS’s thoughts of internationalization. Another factor was
that ROL AB provided installation of the goods in Sweden as well as abroad. They also of-
fered a reasonable price level. DHS did not know of ROL AB before the trade fair, there-
fore the fair was very successful for both parties.
Marketing tools
Most often, DHS is contacted by phone since the suppliers have a hunger to sell and if they
believe that they can offer what we need, they contact us. The telephone call is often fol-
lowed-up with a brochure or a presentation later on. If DHS contact the suppliers them-
selves the first thing to do is that they check their own sources, talk with friends and
branch organization first. Then Internet is used as a source of information. The reputation
is of greatest importance since a good reputation helps whereas a bad reputation hinders.
28
If DHS could choose a method of being contacted they would choose by phone even
though “it can be a pain in the ass”, as Mr. Schött express himself. E-mail is seen as being too
personal and not a good way to go if you have not been in contact with each other before.
If a company presentation is sent it should be directed to a specific and the right person at
the company. Then DHS thinks that the supplier has put some effort in finding the right
person for the offer and shown its capabilities, therefore it will create an interest.
According to DHS, trade fairs are providing an excellent way of finding suppliers. “If it was
not for trade fairs we had not found ROL AB”, Mr. Schött says. Mass communication in general
is a waste of time and money according to DHS, at least when it comes to interior. There
are too few people out there that are really of interest for your products. It can be profit-
able if you have a broad customer segment and products that can be directed towards both
companies and private consumers. Communicating shampoo or a chocolate bar will give
you a customer base of nine million people in Sweden, whereas there are much fewer buy-
ers of store interior.
Personal opinions
Mr. Schött claims that there is a huge difference between B2B and B2C since it concerns
widely separate target groups with widely separated needs; they are two different worlds. As
an example he says that using TV as a medium for selling copy machines is a waste of
money. Even though it will have an affect, it will cost much more than what you will get in
return. Some mass communication tools are useful in a B2B context, but only when it con-
cerns a broader product category.
Mr. Schött believes that you are definitely the same person at the job as you are at home
and that one is 100 percent impressionable. He says that “advertising is all about creating an im-
print in you brain”. However, today there is sometimes too much commercial for the human
mind to comprehend. It is of greatest importance to be visible where the firm’s target cus-
tomer group exists as it is not interested of the 99 percent who are not interested. As an
example he explains how sponsoring and advertisement at an ice hockey game might con-
cern only about four persons out of an audience of 7000. A firm also needs to find chan-
nels that work and help it to find the ones it is aiming to reach. According to Mr. Schött,
direct advertising is the most appropriate way for that.
Talking about the impact of a well-known brand, Mr. Schött thinks that it depends on the
branch a firm is operating in if a strong brand is important or not. In general, the brand is
extremely important, but not particularly important in store interior industry. The similarity
between B2B and B2C marketing according to Mr. Schött is that it is still a person you shall
reach out to and arouse that person’s interest. Another similarity is that clever and innova-
tive advertising is essential. Thus, the goal is to have no wastage in marketing. The greatest
dissimilarity is that B2B is a more focused business whereas B2C is a more mass oriented.
4.2.3 Philip Morris
Philip Morris International has since 1970 increased their operating income from $54 mil-
lion to $7.8 billion, and is producing some 600 billion more cigarettes than 30 years ago.
Philip Morris International’s Swedish subsidiary, Philip Morris AB (“Philip Morris”), has
approximately 30% of the cigarette market in Sweden and is competing with mainly two
other manufacturers for the total cigarette market share. Philip Morris AB is since 1988/89
dealing with ROL AB. Philip Morris distributes its products via Swedish Match Distribu-
tion but is also working towards retailers, meaning that their market is very fragmented.
29
Since most of its customers are small retail shops this demand a lot of resources by the
Philip Morris sales force who are constantly in personal contact with its customers.
November 16
th
2006. Telephone interview with Monica Gustafsson, Market Economic degree and edu-
cated within purchasing. (The approved version of the interview are attached in appendix 4)
Supplier relationship
Philip Morris has five suppliers that they regularly deal with. Philip Morris has different
store interior depending on whether it should be in a grocery, tobacco or convenience
store. Every purchase process is very complicated and it takes time. This process is usually
in cooperation with a supplier or an architect. They have chosen to use architects or ex-
perts in the field who design and than they ask suppliers to provide cost calculation for the
production.
Philip Morris collaboration with ROL AB started in 1988 and had initially common pro-
jects, worked together and developed together. In later days Philip Morris has decided to
develop the design in-house and only let ROL AB be the manufacturer. This, Mrs.
Gustafsson says is due to its internationalization which made them want to separate devel-
opment and manufacturing.
Marketing tools
To find a supplier, Philip Morris AB conducts research of the Swedish market and interna-
tionally. Additionally, Philip Morris AB has the advantage of being a large group of com-
panies, which gives access to the entire worlds’ suppliers. Suppliers are also found by rec-
ommendation from Philip Morris’s companions within its network. Many suppliers phone
Philip Morris with the intension to get a meeting, which they normally do not provide. In-
stead Philip Morris uses its wide network to find a suitable supplier. Trade fairs are used as
a mean for inspiration and in order to stay updated in any possible developments.
Philip Morris AB Purchasing Department prefers to be contacted via e-mail rather than
over phone, even though Mrs. Gustafsson realizes that it is easier to hear if something is of
interest over the phone and that e-mails might not be read. Something for suppliers to keep
in mind is, according to Mrs. Gustafsson, not to send spontaneous e-mails to random peo-
ple. They must make sure that the e-mail is a fine company presentation and what they are
promoting really is presented and sent to the right person. The e-mails could preferably be
accompanied with a phone call.
Personal opinions
Most of Philip Morris’s customers are individuals shop owners not belonging to Trade
Groups, who demand a lot of resources as personal contact. Mrs. Gustafsson is of the be-
lief that the most important aspect in doing business is to fulfill commitments. Further she
claims that relations are not a crucial factor, instead one should disregard emotional feel-
ings when judging a supplier and see if it still is credible. Mrs. Gustafsson is of the opinion
that communicating credibility through a brand is of greatest importance as one rather buys
a brand that is known. In a private situation she would rather buy a stronger brand that is
more expensive, especially if it regards a more complex purchase like a computer.
Mrs. Gustafsson is convinced that one is influenced outside work and that one can, to a
certain point, use B2C tools such as TV and cinema commercials in a B2B market (for ex-
ample Compaq). If it is successful depends on what kind of product it is, and how many in
a company that is involved with the purchase of that product. The negative aspect of using
30
this method is the cost of advertising, so Mrs. Gustafsson rather believes in one-on-one
marketing. Finally, Mrs. Gustafsson says that strong brand awareness is good if it is posi-
tive, but one must also remember that there are many small suppliers that are good to, but
not shown. Therefore you should not only rely upon that when searching for new suppli-
ers.
4.2.4 Posten
Posten has about 30 000 employees and a turn over of above 25 billion SKR and consti-
tutes one of Sweden’s largest concerns. The customers to Posten are both small and large
companies, organisations, the public administrator, municipalities, county council and pri-
vate persons. Companies are by far the largest customer group, standing for 90 % of the
revenues.
November 13
th
2006. Telephone interview with the purchase director (chose to be anonymous), Psychology
and Philosophy degree, 10 years of experience within purchasing.
Supplier relationship
How often Posten purchase store interior vary a great deal. Last time it purchased store in-
terior was three years ago, but they are not sure when the next purchase will take place
since they do not have any continuity in its purchase of store interior. Continuous purchase
of supplementary goods for the current interior is ordered from the existing supplier, but
for new solutions they go out and search every time. The collaboration with ROL AB
started as Posten where to change its concept and needed new store fixtures to all their
stores in Sweden. Posten designed the modules, whereas ROL AB solved the practical as-
pects of the design, the production and the delivery.
Marketing tools
Posten prefers to be contacted by suppliers, instead of contact themselves, and every sup-
plier is collected in a supplier file. The contacting is normally done by phone, but also by e-
mail. If Posten decides to contact a supplier they believe they have sufficient knowledge of
the existing suppliers and their services, that company research is not necessary. On occa-
sions when research is needed, Internet is used as a tool for information search. According
to Posten, trade fairs are sometimes beneficial, although the most efficient way for a sup-
plier to contact the firm is for them to make a call first then a meeting can be arranged.
A strong supplier brand does not strongly influence the decision when Posten is selecting a
new supplier. A weak brand only requires a higher amount of presentation from a supplier.
Posten makes sure that they review and give every supplier out there a chance, not caring
about strong or weak brands.
Personal opinions
The purchase director defines B2B marketing as something a firm develops together with a
partner. This cooperation creates creativity and a higher problem solving ability.
The Posten representative does not believe a business decision maker is affected by adver-
tising after working hours. She reasons that in the evenings you are more relaxed and that
makes a purchaser less open for contact than at work. She does not believe that one will be
affected by mass communication, but rather that direct adverting works. However, the pur-
31
chase director believes that one is affected by what one sees and hears privately for work,
but not as easily as one is affected by private interests.
4.2.5 Systembolaget
Systembolaget, the Swedish Alcohol Retail Monopoly, exists for one reason only; to mini-
mize alcohol-related problems by selling alcohol in a responsible way without any profit
motive. Systembolaget has about 410 stores across the country, 250 of those are self service
stores. In the smaller places and sparsely populated areas where there is no Systembolaget
store they have a local agent, often a country shop or other shops. They have about 580
agents in Sweden.
Telephone interview November 20
th
2006 with Erik Oldgren. Engineer and education in project manage-
ment. Chief in construction and real estate management.
Supplier relationship
The firm usually rebuilds 50 stores every year and from 2001 it uses a new concept for inte-
rior design. Systembolaget does not see itself as loyal to one supplier since it only has con-
tracts for about three years with a supplier. After these three years it looks for new suppli-
ers and may then chose to work with another supplier instead.
Systembolaget started to use ROL AB as a supplier in 2001. The reason for choosing ROL
AB was that they could deliver the best alternative, regarding both price and quality. Other
important aspects that Systembolaget considers when choosing a supplier is the capability
to deliver on time, but also if the company can deliver to all parts of Sweden. Systembo-
laget also mentioned that it is important to have one contact person at the supplier to talk
with and that this person can solve and deal with all different problems and questions.
Marketing tools
Systembolaget contact a lot of suppliers by themselves and it often uses the yellow pages or
Internet. A well-developed and interesting webpage is therefore very important to have.
The firm also visits fairs in order to see which suppliers who are interesting and have new
ideas. However, the problem with fairs is that you easily miss the small suppliers since they
are often not there. The firm also receives phone calls from suppliers that want to arrange
personal meetings with Systembolaget, but these are asked to send in a company presenta-
tion as a first step. Systembolaget then keeps these different company presentations in a
‘supplier box’ until it is time to buy new store interior. Systembolaget believes that it is not
a known brand is not that important, instead it values in-time delivery, competence etc.
Personal opinions
Mr. Oldgren thinks that B2B markets are based on business relations, and these relation-
ships are a way to develop each other. However, Systembolaget only work with shorter
contracts and are not loyal to one supplier, meaning that it does not focus much on long-
term relationship. Although Mr. Oldgren believes it is important to have good relations
with these suppliers even if Systembolaget has shorter contracts. Mr. Oldgren also believes
that the use of TV as a marketing tool for a B2B company can be beneficial since it creates
an interest for the company and shows its products. He says that even though we do not
think that we get influenced at home we are human beings and we will be affected of what
we see and hear, in some way or another, and take that with us back to work.
32
4.3 Interview with potential customers
Interviews have been conducted with some of ROL AB’s potential customer. This has
been done in order to analyze their opinion regarding their supplier relationships, different
marketing tools, and B2B markets. The people interviewed have all different titles, varying
from purchasers to marketing managers, depending on the organization and size of the
firms. However, they have all in common that they are responsible for the purchase of
store interior. Three of ROL AB’s potential customers insisted on being anonymous, and
those firms are therefore called Company A, Company B, and Company C. The persons in-
terviewed at these firms will therefore be called Mr. or Mrs. A, B and C. The interview
guide can be found in Appendix 1.
4.3.1 Company A
Company A is one of the leading grocery companies in Scandinavia with about 2000 em-
ployees, five factories and a turnover of approximately 800 million USD. The firm has cho-
sen to be anonymous, hence no further company description.
November 7
th
2006. Telephone interview with Mr. A, purchasing manager. Master of Engineering with
Economic alignment.
Supplier relationship
The company mainly uses the shops’ own interiors for their products, but they also buy
corrugated cardboard displays. The company does approximately 400 orders a year for the
four Scandinavian countries, of them about 150-200 is for Sweden. They use the same inte-
rior for all stores. Some years ago, Company A worked with three or four suppliers in every
country but today it has reduced the number and works only with two suppliers in Scandi-
navia. The two suppliers that they work with today have great knowledge and production
to reasonable and good prices.
Marketing tools
Company A does not actively search for new suppliers itself; the suppliers take contact with
them. There are new suppliers calling every week. Company A also works with creative of-
fices that in its turn have contacts and relationships with suppliers that Company A get to
know.
Mr. A believes that telephone is the best and most satisfying way of being contacted with.
After that the supplier may send material by e-mail or mail, and if it arouses the company’s
interest they arrange a meeting for further negotiations. The company dislike suppliers that
only sends e-mails since as the working climate is today with a bombardment of e-mail it is
easy to miss e-mails.
The firm also participates in some trade fairs, but since it has a stabile base of suppliers, the
company does not actively search for new suppliers. The trade fairs are more used for
gathering inspiration and new ideas.
Personal opinions
Mr. A characterize a B2B market by saying that it is about relationships; strongly person, -
and relationship dependent. In Company A, B2B and B2C marketing is two different units.
In B2C they use the traditional advertisement in cinemas, newspapers, magazines, and TV;
with focus on visibility. In B2B, the company market itself towards the big chain of stores
33
and here it is more focus on profit margins, annual negotiations, private conversations and
to strengthen and develop relationships.
For the similarities between B2B and B2C, Mr. A thinks of price and quality. These two
aspects are seen to be of equal importance in both B2B and B2C. It should be good quality
to a reasonable price. When it comes to brands he believes that it is extremely important
with a known brand in both B2B and B2C.
Mr. A is confident that you are influenced of what you are exposed to when you are not on
the job since people acting in a B2B environment also is a private consumer. You bring
what you see and hear in your leisure time to work, consciously or unconsciously, therefore
can B2C marketing and its tools also benefit the B2B market. He says that it is all about
breaking through the mass medial wall. He ends the interview by saying; “If you are visible you
will be contacted but if you are not visible, you do not exist”.
4.3.2 Company B
Company B sells home electronic products such as radio, TV, kitchen and laundry prod-
ucts. It sells its products to both companies and private consumers. It has about 60 de-
partmental stores in Sweden, Norway, and Denmark. During the 1990s it opened numer-
ous new stores in Sweden and continued to expand during 2000. The firm has chosen to be
anonymous, hence no further company description.
November 8
th
2006. Telephone interview with Mr. B, electrician, building constructor.
Supplier relationship
Company B buys new interior design when it opens a new store and it opens about four to
eight new stores per year. The company uses similar interior design in all of its different
stores. Approximately every other year Company B looks around among different suppliers
and their offerings in order to update itself about the market and search for the best prices.
Presently, Company B works with three different suppliers for the interior to its stores. The
first one is a supplier that the company has worked with for 10 years and has a close rela-
tionship with. This is a small company with only 10 employees and Company B feels that it
can have a personal relationship with this firm since it knows the employees well and gets
great service from them. The other two suppliers have been chosen because they offer a
low price level. When Company B evaluates potential suppliers it values quality and price,
but also the supplier’s ability to come up with new ideas, innovativeness, and its ability to
come up with solutions to Company B’s problems and needs.
Marketing tools
Company B is well-known in Sweden and because of that it does not need to contact any
suppliers; instead suppliers try to get in contact with them. Generally, suppliers use phone
calls as a first attempt to reach the company and to try to get a personal meeting with them.
The firm prefers to be contacted by telephone since it is easy to get information about the
products during a telephone conversation. A good webpage is also something that is pref-
erable to have, though Company B believes that it is only a compliment to other marketing
tools.
Company B sometimes visit fairs, but only occasionally. However, it sees trade fairs as a
place where you can establish new and good contacts. Additionally, the firm often uses new
workers “old relationships”. For example if Company B employs a new assistant purchaser
34
he or she often knows and has developed relationships with some suppliers from previous
jobs. Company B can then use and develop these relationships and by that find new suppli-
ers and solutions to problems and needs. Word-of-mouth is something that Company B
finds very important. If a supplier has problems with its products and deliveries it will soon
get a bad reputation in the industry and rumors are something that spread rapidly, espe-
cially the negative ones.
Personal opinions
The person that was interviewed at Company B had no academic education in the field of
marketing and was not familiar with the concepts B2C and B2B. Therefore he had some
problems to answer the questions in this section. Mr. B did not know if interior design
firms used advertising at all but he did not believe that it would be efficient to do either.
However, Mr. B at the same time believes that people can be affected of adverting outside
work, but not enough to make a difference. According to Mr. B, the most important aspect
of a brand is the brand name. He believes that it is of greatest importance to have a name
that is easy to remember so that potential customers easily can remember and find the
company, for example on the Internet.
4.3.3 Company C
Company C is one of the leading automotive spare parts chain in Scandinavia, offering
workshops and car-owners a wide range of spare parts and accessories. As stated the com-
pany deals with both companies and private consumers. However, other companies consti-
tute the greatest customer segment, especially car workshops. The workshops generate ap-
proximately 85 percent of the total spare parts sales volume. The company has approxi-
mately 200 stores in Scandinavia of which 120 are located in Sweden. The company sells all
its products via its store network.
November 7
th
2006. Telephone interview with Mr. C, 15 years of experience and genuine interest. Respon-
sible for store developments.
Supplier relationship
Company C’s store structure is in continuous development and it orders interior for about
10-12 stores a year, either for new establishments, move, or remaking. Company C works
with two different kinds of interior but it only deals with one supplier to which they are
loyal and has a strong relationship with. This is due to the fact that the supplier provides a
good price, quality and service and always is there for them.
Marketing tools
Since Company C is very happy with their supplier they find no need to search for new
suppliers. They are although continuously contacted by suppliers who want to sell their
products/services. The only time Company C deals with these suppliers is a couple of
times a year to do price controls in order to check that its supplier is in line with what oth-
ers are offering. The first contact is always done by phone. Mr. C argues that this is the
only way to do it since brochures go straight to the bin and randomly sent e-mail should be
banned because they are not sanctioned from the top management in any way.
Trade fairs are beneficial though, since they provide a source of inspiration and new ideas.
These ideas are later developed with the already existing supplier, rather then dealing with
new suppliers.
35
Personal opinions
Mr. C claims that there is a large difference between a B2B and a B2C market and their
marketing techniques. To consumers, companies use TV, radio and magazines as market-
ing channels. With businesses the company wants to create relationships which make it
more personal. The reason for why brochures often are thrown away before being read is
that they are not personal enough. Another difference between the two markets as Mr. C
sees it is that the private consumer is more interested on special deals and price whereas
businesses are looking for good service. In important business deals relationships are essen-
tial. Firms do not want to fight about the price; instead it should focus on creating trust.
Further the interviewee argues that a strong brand is of greater importance in a B2B market
than in a B2C market. This because it is more important that the partner is reliable, which
is something the brand communicates.
Mr. C claims that you are the same person in private as at work. A manager does not step
out of its role when leaving work. One continuously brings experience and everyday im-
pressions back to work.
4.3.4 Duracell
Duracell is since 2006 a part of the company Procter & Gamble. Duracell is the world’s
leading producer of high-performance alkaline batteries. The firm does not regularly sell to
consumers as private persons. However, there are some exceptions. They sell directly to
end-users when it comes to the Defense and to the medical service. Duracell is also selling
on purchase tenders for county council where certain requirements need to be fulfilled.
Another customer group is distributors who are selling the batteries to end consumers.
November 7
th
2006. Telephone interview with Kjell Engelmark, no academic education but 15 years of ex-
perience.
Supplier relationship
When it comes to interior design, Duracell buys metal displays for its products. The com-
pany uses standardized products and the purchasing process is centralized and controlled
from Geneva, so the local companies are not involved in the process, hence no further in-
formation about the purchasing process.
Marketing tools
When it comes to contacts with suppliers, Duracell do not often contact the suppliers
themselves; the suppliers contact them. Duracell prefers to take contact or be contacted by
telephone and if the first call is of interest they arrange some kind of meeting for further
business. They also participate and go to trade fairs to gather information and ideas about
new potential suppliers.
Personal opinions
The person interviewed, Mr. Engelmark, has no academic education but has 15 years of
experience within the field. For him B2B is about relationships and personal contacts. In a
B2B environment a purchaser needs greater product knowledge than in a B2C context. Mr.
Engelmark sees this as the largest difference between B2B and B2C.
36
Mr. Engelmark is convinced that you are affected by everyday impressions that influence
you in your work since a purchaser also is a consumer. You are daily exposed to different
kind of advertisements and purchasers are ordinary people who will be influenced by what
they see and hear like everyone else. Usually you obtain knowledge and awareness through
consumer advertisement. The brand is also important and companies can derive great ad-
vantages and benefit from a well-known brand since a seller does not need to waste time
on explaining what the firm is selling when contacting customers. He thinks that the bene-
fits and importance of a strong brand are similar in both B2B and B2C environments.
4.3.5 Gina Tricot
Gina Tricot has had great success since the start up in 1997 and is one of the fastest grow-
ing fashion companies in Sweden. Presently it has 60 stores in the country but is continu-
ously rapidly expanding. Every year Gina Tricot has over 18 million visitors in all age
groups. In the year 2005 Gina Tricot had a turnover of about 625 million SEK and this
year it will have a turnover of over 800 million SEK. The store surface is from 300 square
meters and up. In many of the existing stores there is a need for expansion. (Gina Tricot,
2006)
November 9
th
2006. Telephone interview with Adam Johnsson, head hunted from store interior.
Supplier relationship
The number of times that Gina Tricot buys new interior design to its different stores is
based on how many new openings and redesigns that are made during a year. The firm al-
ways uses the same supplier for its interior design, Nässjö Inredningar, and has worked
with them for about ten years. The reason for working with Nässjö Inredningar is, accord-
ing to Gina Tricot, that the company is the best in the business. They have a great relation-
ship, work close together, discuss problems and find solutions together. The supplier is
very flexible and that is something that Gina Tricot values highly.
Marketing tools
Gina Tricot never contact its suppliers, instead the suppliers try to get in contact with
them. Usually it receives telephone calls from sellers who want to arrange a meeting and do
a presentation about their products and show some brochures. However, being very loyal
to its current supplier, Gina Tricot does not agree to this kind of offers very often. If it
could chose, Gina Tricot prefers to be contacted through e-mail instead of phone calls
since you can then take a look at it when you have time and you do not need to be dis-
rupted in you work.
Fairs are something that the firm hardly visits at all. Gina Tricot believes that it knows what
is new and popular in the business since it often visits for example New York and Milan to
look at new trends. Gina Tricot also believes that, since it does not search for new suppli-
ers, fairs are not efficient for them to visit. The firm feels that word-of-mouth and a well-
known brand are not relevant since they know what it wants and does not care what prod-
ucts other firms use and like.
Personal opinions
Mr. Johnsson only works with the design of the stores and was not involved in the market-
ing at all. He had been headhunted to Gina Tricot in order to work with the designs of the
37
stores. So when we ask him about specific marketing questions, he shared his reflection
about it without any real academic knowledge.
Mr. Johnsson believes that you are two different persons at work and at home and there-
fore advertising in a B2C context is inefficient to use in B2B market. Especially when it
comes to complicated and complex products as interior design is. Products like that re-
quires a more “in depth marketing tool” in order to reach out to the customers. Mr. Johns-
son thought that B2B and B2C are two different things and that is why he believes that
B2C advertising is inefficient in a B2B context.
4.3.6 Hemtex AB
Hemtex AB is a retail chain that sells home furnishing products, especially different curtain
fabrics. By the end of the year Hemtex AB will have 183 stores; 136 in Sweden, 32 in
Finland, nine in Denmark, and six in Norway. It had a turnover of 1159 million SEK in
2005.
November 13
th
2006. Telephone interview with Ing-Marie Edvardsson, several years of experience, no par-
ticular academic education.
Supplier relationship
During the last years has Hemtex AB opened around 20 to 25 new stores per year and due
to that there is a constant need for new interiors to its stores. Hemtex AB has today two
different versions of interior in its stores, one new and one old. The firm does its purchas-
ing of interior continuously during the year and they always use the same supplier. How-
ever, it is nothing that says that Hemtex AB will use the same supplier in the future. Ap-
proximately every fifth year, Hemtex AB search the market and looks at different suppliers
and make price inquiries.
Marketing tools
Hemtex AB sometimes searches for and contacts different suppliers by itself and when it
does that, it usually uses Internet and different web page. However, word-of-mouth, rela-
tionships and reputation are also important when deciding which supplier to contact. The
firm prefers that suppliers contacts them through e-mail and fairs. E-mail since it is easy
and comfortable to get a written presentation about a company and its products that you
can take a look at in peace and quiet. Fairs are efficient marketing tools since they provide
good opportunities to get in contact with interesting companies, build relationships and a
possibility to get a picture of how companies market themselves and their interior.
Personal opinions
The woman interviewed at Hemtex AB, Mrs. Edvardsson, has no academic education and
was not familiar with the concept of B2B and B2C. She believes that contacts are impor-
tant but then primarily for the exchange of experience and to get information. Mrs. Ed-
vardsson is of the opinion that a well-known brand is important but it is often not the de-
termining factor when deciding which supplier to work with or not. Good references and
reputation on the other hand is always important. Mrs. Edvardsson believes that it is no ac-
tual difference between a person at work and at home. A person’s personality often mirrors
how one is as a person in the professional life as well. However, at the same time it is im-
portant to be able to make a distinction between what is private and what is work. Mrs.
Edvardsson believes that you can be influenced from different things that you have seen
38
and heard when taking a purchasing decision. But you are more affected by colleagues
within the branch and not that much from other channels as advertising.
4.3.7 Zeta
Zeta is a firm that sells Italian food to grocery stores, for example oils, vinegars, pasta etc.
For 2006 the firm will have a turnover of 360 million Swedish crowns. Zeta sells its prod-
ucts to about 3000 different stores and the firm has the possibility to expose and/or
change the standard shelves in approximately 1500 of those stores. The firm experience a
growth of about 25 percent during 2006.
November 7
th
2006. Telephone interview with Mathias Jordevik, experience within Zeta.
Supplier relationship
Zeta works a lot with its buying and selling processes. It works continuously and actively in
the stores with shelf strips and labels etc. The firm generally buys new store fittings every
third month and it always uses the same supplier. This is due to that Zeta has a very well-
developed relationship with that supplier since 25 to 30 years back in time and they work
close together. The supplier does not only supply Zeta with store fittings but also with en-
velope, business cards etc, i.e. the supplier provides Zeta with an overall solution. Although
Zeta is loyal to this supplier they sometimes search the markets and look around among
other suppliers in order to find new ideas and to see that the prices that its supplier is offer-
ing is in line with the market in general.
Marketing tools
Although Zeta always search and update itself about the market and potential suppliers the
firm almost never tries to contact suppliers itself. In almost every case it is the suppliers
that contact Zeta and want to show their ideas and products. Usually these contacts are
made by telephone calls from sellers that want to arrange a personal meeting with the
company. If the seller makes a good impression and manages to create an interest, Zeta of-
ten agrees to a meeting. In most cases, and preferably, are these meeting often followed-up
by an e-mail. The firm does not think that trade fairs are an efficient way to do business;
instead Zeta sees them as a way to gather inspiration. The firm has a lot of own ideas about
how it wants to display its products in the store and most of these ideas it receives from its
own sellers at Sale support.
Mr. Jordevik believes a strong brand can be important although it is not what the firm itself
look at when it chose suppliers. He is of the opinion that new and inspiring ideas and well-
developed store solutions are more important than a strong brand.
Zeta prefers to be approached in the traditional way of marketing that the supplier first
sends a brochure where the products clearly are explained and showed and that this is fol-
lowed-up with a telephone call. E-mail is a marketing tool that Mr. Jordevik finds very inef-
ficient since a purchaser gets to many e-mails every day that he or she hardly read them.
Personal opinions
Mr. Jordevik sees B2B and B2C markets as “two different worlds”. In B2C markets customers
have no requirements on the interior design in the stores; they just want Zeta’s products at
good prices. The relationship ends when the consumer pays for the product and leaves the
39
store. However, in B2B markets there is a need of teamwork and collaboration between the
customer and Zeta and long-term relationships are very important.
Mr. Jordevik is of the belief that B2C marketing tools, for example advertising, are not effi-
cient in a B2B environment. He rather believes that relationships and personal meetings are
the preferred tools. However, in the same time he says that “one lives with ones’ work”; a
purchaser is always a purchaser and can get inspired 24 hours a day. You are always creat-
ing impressions and one is constantly influenced, consciously or unconsciously, no matter
where you are. For example when one visits an ICA, OnOff or a Siba store you gather in-
spiration and ideas for solutions to problems and needs.
4.3.8 Åhléns AB
Åhléns is a well-known retail chain in Sweden. It focuses on four different areas: fashion,
beauty, home and media products. Åhléns AB presently has 79 department stores, 20 so-
called “home stores” of which 17 is located in Norway. It is also the owner of Kicks, a
chain with 95 stores that sells beauty products, and Lagerhaus which is a chain with 17
stores that sells home and design products. In 2005, Åhléns AB had a turnover of ap-
proximately 5 billion Swedish crowns.
November 9
th
2006. Telephone interview with Peter Rönnebjär, 30 years of experience within Åhléns, and
8 years of experience within store interior.
Supplier relationship
Åhléns keep a continuous and everyday maintenance of its store interiors. All stores have a
standardized setting but are adapted to the specific need of each and every store. Åhléns
AB has about three to four larger suppliers that it works with when it comes to shelves and
store fixtures. It collaborates also with many smaller suppliers providing them with interior
such as Plexiglas, cubes, and carpets.
The main departmental stores usually experience a growth rate of three to six stores a year.
The smaller stores, Kicks and Lagerhaus, experience an even higher growth rate than that.
Åhléns ensures that its suppliers are aware of the fact that if they do not stay competitive,
Åhléns will find a different supplier which is. The suppliers must continuously prove that
they are the best supplier for Åhléns when it comes to price, quality, service and good
knowledge.
Marketing tools
Suppliers are usually in a line up, to get a deal with Åhléns. Albeit it is believed that if sup-
pliers manage to get its foot into the company they can expect large orders in the future,
Åhléns makes sure to look at many suppliers in order to keep updated.
When Åhléns search for potential suppliers they see the Internet as a very important source
of information. Trade fairs are another preferable tool because they provide inspiration and
new ideas. Receiving brochures from is a third way that is good. When suppliers contact
Åhléns, it is mostly done by phone calls, which the interviewee argued was not preferably
since it was time consuming. Instead he prefers that suppliers show that they exist by ad-
vertising in branch magazines, on the web and to be present at trade fairs. Then Åhléns has
the possibility itself to contact the suppliers of interest.
40
Personal opinions
According to Mr. Rönnebjär, a strong brand is important although not as important as
providing a good quality and price. Further he argues that he is affected similarly by mass
communication personally and professionally; an advertisement only catches his interest if
it is of relevance to him. He believes that the best advertising a store interior company can
make is through innovative products and presentation of the products in a store. He claims
that he has a constant presence of curiosity; if he sees something of taste he will find out
who is responsible for that interior so that he can contact that supplier.
Mr. Rönnebjär believes that there is no actual difference between B2B and B2C. He warns
against relations, and speaks for openness. He argues that strong relationships hamper in-
novativeness. Åhléns find it therefore important not to stick to one supplier if they do not
live up to the expectations, but rather incorporate new suppliers several times a year.
41
4.4 Firms operating in a B2B market using B2C tools
Interviews have been conducted with Ramirent and Ahlsell. This has been done in order to
understand their opinion about marketing in B2B markets. It is interesting since both firms
use B2C marketing tools even though they are seen as traditional B2B firms. This in order
to indirectly reach the business person through its role as a private consumer. The people
interviewed are responsible for the marketing within the firms. The interview guide can be
found in Appendix 2.
4.4.1 Ahlsell
The Ahlsell group has an annual turnover of about 20 billion SEK, whence approximately
9 billion in Sweden. The group has around 4000 employees and about 2000 of those is
working in Sweden. They have sellers in over 200 places in Scandinavia, of which 80 stores
are situated in Sweden, and the main office is located in Stockholm.
The company supplies goods and associated services for professional users within the
product areas of heating & plumbing, electrical, tools & machinery as well as refrigeration.
Ahlsell is today Sweden's only trading company that has a one-stop range of installation
products and that enjoys a strong position in all product segments. Ahlsell is both market, -
and branch leader. In other Nordic countries, Ahlsell is one of the leaders in several prod-
uct segments.
Ahlsell has about 500 strategic suppliers. In order for the supplier to be classified as a stra-
tegic supplier, it needs to fulfill some requirements. The supplier has to offer strong
brands, have a Scandinavian presence, and that the sales takes place through the wholesaler
link. Most of those suppliers are big, internationally working actors with sales organizations
in several countries. (Ahlsell, 2006)
November 16
th
2006. Telephone interview with Camilla Weiner, chief information officer. Bachelor of
Business Administration, several courses in law, marketing, informatics and equity market.
Marketing tools
Ahlsell is working with different segments and the company uses a communication model
that search for the different segments and their needs. Then an analysis is done in order to
see which segments that are of interest and to find out about the customers’, within the
segment, specific needs.
The stores are a very important channel, and specific customer meetings in the store are of
special importance. Ahlsell also uses direct marketing and offerings to the specific segments
and they often differs between the segments. Another tool that Ahlsell uses is advertise-
ment in business press and other specific branch organs for B2B. E-mail is a tool that the
marketing directors work a lot with and uses as a mean to provide entrepreneurs with
knowledge about the industry. Providing this superior competence to its speaking partners,
the company creates added value.
A great part of Ahlsell’s marketing is put on sponsoring. The greatest sponsoring event is
harness racings. For example, Ahlsell is sponsoring Stig H Johansson and his team. The
reason for sponsoring harness racing is that many of Ahlsell’s customers are businessmen
and wholesalers and there is a strong tradition that those people also have an interest in
horses. Many of them are horse owners or are playing on horses. These sponsoring events
are also a good way for Ahlsell to spend time with its customers and suppliers. It is a fun
42
and much-appreciated event, where they can have dinner, business talks and playing on
horses at the same time. This is creating a win-win-situation for all parties.
They have special Ahlsell races and these generate a great pay-off. TV4 is, since a couple of
years, marketing harness racings and Ahlsell has got a real upswing and profit from this.
This do not only generate in real money, it also helps to put Ahlsell on the map for the
public that do not know about the company. These evenings also help Ahlsell to spread in-
formation about the company, pick up new ideas and viewpoints from customers and sup-
pliers. They are also contributing to the creation of close relationship with its customers.
The working per segment and direct marketing are the tools that Mrs. Weiner sees gener-
ates the greatest pay-off. However, the VIP-evenings connected to the harness racings have
become a big tradition and hard to beat.
Personal opinions
Mrs. Weiner is of the belief that we are all affected in our roles outside work. She is con-
vinced that we fetch private impressions when we act at work. She also thinks that firms in
B2B markets can do typical B2C advertisements since the degree of recognition one of the
most important variables.
When she talks about the differences between B2B and B2C she mentions that a company
in B2B is working with constant relations in more organized forms. The relations are long-
term and often you reach long-term agreements with each other. In B2C markets you as a
supplier more or less ends the relationship with the customer after a purchase.
If it should be profitable for Ahlsell to work with TV commercials, it should be done at lo-
cal channels. This since Ahlsell is locally organized and operates at local markets. So if the
company should create business through advertisement in TV, it has to be at local market,
as Malmö and Mora where it is strongly anchored. Mrs. Weiner thinks that the only way
that TV-commercial can generate pay-off is that it creates an increased awareness of Ahlsell
for the common man. She further argues that less well-known firms would probably bene-
fit more from TV-commercials than what Ahlsell would do, since a company has to start
with creating a platform to start from and in that work, advertisement at TV can help.
Mrs. Weiner thinks that brands are of greatest importance. She says that the whole business
starts with the brand. The brand communicates your core values and attitudes are embed-
ded within the brand. The firm’s co-workers functions and works as ambassadors for the
brand. It is also of great importance that you as a firm knows and is aware of what your
brand stands for. She takes an example of IKEA and that they have switched the theory
the other way around. IKEA says that this is the way we live, and this is how we learn and they act
after what the brand stands for. A person that drives a Jaguar and wears a Rolex can not
work at IKEA, since it is not in line with what the brand wants to communicate.
According to Mrs. Weiner “it is important to practice what one preaches, and to be an example of
what your brand communicates”.
4.4.2 Ramirent
Ramirent is a young and strong addition on the Swedish market for letting of machines.
The company has been on the Swedish market since the autumn of 2004, as a result of the
fusion of Stavdal Byggmaskiner and Altima. Ramirent has 46 customer centres all over
Sweden.
43
November 13
th
2006. Telephone interview with Kenth Sturesson, Marketing Director, Master of Engi-
neering.
Ramirent is a pure B2B company. However, it sells to private consumer in some cases. But
that sale only represent less than one percent of total sales. The reason for also selling to
private consumers is that, according to Mr. Sturesson, you never know who enters the
door. The person that wants to hire a machine for doing something with his/her summer-
house in the weekend may be the same person that next week places a large order for
his/her firm. Ramirent can never exclude private consumers completely, but it is not a seg-
ment that the firm is focusing on. Ramirent’s customers are mainly in the constructing sec-
tor.
Competence and service are the company’s keywords. Its strategy is to have as high service
as possible so that there is no other alternative for the customer. With Ramirent, they are
now three big actors that compete on the market and in order to survive the company al-
ways strive to be on the toes, be better, and one step ahead of its competitors.
Marketing tools
The long-term goal with all marketing is to increase the sales. Additionally people need to
know that Ramirent exists in order for us to increase our sales says Mr. Sturesson, market-
ing director at Ramirent. Therefore, he believes that the brand is of great importance, and
one has to create awareness for the common man in order to reach brand equity. This also
eases the sellers work. The goal is that the customer already shall have knowledge about
Ramirent when the seller calls. In that way the call will be more efficient and the sellers do
not need to put effort on explaining the firm’s history. Although, the most important mar-
keting tool is still the sellers’ work. Mr. Sturesson further states that the brand is much
more than a logotype, one also has to embed feelings and values in the brand.
For Ramirent the most commonly used way of reaching its customer is when sales people
call customers and book meetings. However, Ramirent also do a lot of sponsoring. For ex-
ample, they sponsor all ice hockey clubs in Elitserien, the highest hockey league in Sweden.
The company has its logo in the face off circle in all arenas. As its main customer group is
in the constructing sector Ramirent did a thorough market research to see where to find
this segment. They found out that it was an overrepresentation of people within this sector
who was interested in ice hockey. This is the reason for why Ramirent has chosen this cer-
tain sponsoring. The company also sponsor rally competitions and equestrian sports.
Ramirent also do some advertising in trade and branch press as Dagens Industri, and direct
marketing with direct circulars. They have also done some radio commercial. Ramirent has
not tested TV commercial yet but they are not foreign for doing so in the future if they
find the right channels to reach its customers. However, in order to do TV commercials
Mr. Sturesson is of the belief that a thorough research need to be done to see what kind of
people is watching what programs, gender, age, branch distribution and so on. There is a
need of accurate measurements from TV and Radio and Print Medias.
In order to reach out to its customers, Mr. Sturesson believes that the personal meeting still
is the most effective and efficient way in a B2B market. At second place comes the spon-
soring. However, it is not only through the old way of just putting up a signboard with your
logotype. The sign is only 50% of the total invested money. Ramirent uses the sponsoring
in order to arrange customer events. The company let players, coaches and other active
members lecture about leadership, team spirit/work and other things, and in that way
44
Ramirent buys some fame. An example that Mr. Sturesson gave of such an event was when
they let a famous rally driver talk about traffic safety.
Personal opinions
Mr. Sturesson thinks that you certainly can use B2C marketing tools to reach your B2B
customers. This is due to that the world is changeable. The old way of thinking was a norm
until four to five years ago. If you are of the belief that B2B and B2C markets are two sepa-
rate worlds and that you cannot use B2C tools in a B2B market, you live in an obsolete
world.
Mr. Sturesson is today the marketing director of Ramirent, but has an engineering educa-
tion from the beginning. The reason for why he chose to switch track was that he was tired
of the technical branch, and how bad the technological companies were at marketing them-
selves. So he thought he had to do something with his ideas.
He is convinced that people are affected by what they are exposed to during everyday hap-
penings and that you are not two different persons at job and at home. He says that he can
sit at work and worry about his sick kids and he can sit at the dinner table at home and
worry about the work. He undoubtedly thinks that you are affected by things you have seen
and heard in your spare time when you are going to take decisions at work.
45
5 Analysis
_______________________________________________________________
This section has the intention to connect presented theory with empirical findings. The focus is on the re-
search questions in order to answer the purpose of the thesis and they will work as headings to provide a
structure. First it will be determined whether the perceived dichotomy is true or not by an analysis of B2B
and B2C markets, and continues with the importance of brand awareness in B2B markets. Lastly, an
analysis with an evaluation of different marketing tools will be conducted with the purpose to find the suffi-
ciency of relational marketing, and the appropriateness of using transactional marketing.
5.1 Why is there a dichotomy between B2B and B2C markets?
We will investigate whether the dichotomy and the previous recognized differences be-
tween B2C and B2B markets just are a historical artifact rather than a current reality. This
will be done in order to establish if there is an actual need to apply different marketing ap-
proaches towards the two markets.
Ramirent claims that the old way of believing in a dichotomy of the two worlds of B2B and
B2C was a norm until four to five years ago and that the world has now changed. The firm
further argues that if one still is of that belief and thinks that firms cannot use B2C market-
ing tools in a B2B market, one live in an obsolete world. Today’s firms are facing a differ-
ent situation with shorter product life cycles and the intensity of global competition, which
no longer provides the luxury of “build it and they will come” thinking (Olivia, n.d.). If these
statement are to be true, can we then assume that the key account manager at ROL AB Mr.
Kron’s conjecture was correct regarding the award the firm won within marketing five
years ago? ROL AB won a marketing award without any marketing activities what so ever,
it was solely based on good sales due to good performance. Mr. Kron further claimed that
such a prize would not have been possible to win without any marketing strategy these
days. As in present time, the market has changed in terms of a stringent competition in the
store interior industry.
From presented theories we have shown some of the perceived characteristics of differ-
ences and similarities between B2B and B2C markets. Thereafter we tested these theories
by interviewing 15 firms in order to receive professional input from people who are actu-
ally involved with purchases in a B2B environment. Together with the theory and the em-
pirical findings we will distinguish whether or not these perceived characteristics are true
and accurate in today’s practical market. The analysis will keep a focus on issues that has
emerged through our research concerning theories and empirical findings of being the
most common characteristics of a B2B market. These characteristics are product knowl-
edge, risk, size, complexity of orders, and involvement in relationships.
What differences in behavior are there in B2B and B2C markets?
B2B buyers tend to be more specific oriented and they tend to have a good understanding
of the products they want (Ford et al., 2002; Anderson and Narus, 2004). This is also
something that Duracell, Company A and Company C all proclaimed. Duracell claimed
that the greatest difference between a B2B and a B2C environment is that the B2B pur-
chaser needs better product knowledge. Company A’s and Company C’s perceptions of the
similarities and differences between the two markets differed. Company A claimed that the
similarity between the two markets is price and quality. Customers in both B2C and B2B
markets demand a product with good quality to a reasonable price. Company C on the
46
other hand claimed that customers in B2C markets are more interested in special deals and
price whereas customers in B2B markets are looking for good service. Thus, fighting for
the price would undermine a firm in a B2B market and the firm should instead focus on
creating trust. Ford et al. (2002) argue that when it comes to pricing the B2B marketer need
to prove the difference between their product and the competitor’s product to the buyer
based on hard facts.
Two things can be concluded from the observations above, when one is contemplating if
there really is a difference between the two markets. First, the purchasers in a B2B market
are perceived to have greater knowledge and understanding of a product compared with a
B2C purchaser. This is indicating that they are less likely of being deceived or making a
foolish purchase. Second, one should keep in mind that any product, whether it is sold in a
B2B or a B2C market, which has the intention of communicating quality and good service
should not compete with price.
B2C buyers are said not to face any particular risk more than the loss of money they pay for
the product or service (Anderson and Narus, 2004; Ford et al., 2002). Abecita is of the
same belief. A person acts in two different ways when doing a business purchase compared
with a private purchase, as it is not your “own” money you are spending at work. Further-
more, B2B purchases are made by a number of people who all see the importance of their
task since it concerns the whole firm, as well as the persons’ own career (Fill, 2006). Pur-
chases in a B2B market become more important since if failure occurs on your cost, it is
the firm’s problem. This implies that purchases of impulse are rarely occurring in B2B
markets; instead evaluation of different alternatives is a commonly used procedure.
One could generalize and say that there is more risk connected to purchases in B2B con-
texts than in B2C since it often involves complex purchases and in connection with that,
more money. B2B purchases are often associated with large investments, as in this case
store interior, which is something that has a major affect on the firm’s sales. Therefore, the
purchase decision needs a thorough analysis before it is taken. This is not the case in the
everyday purchases by a consumer, and decisions are often taken on impulse. We believe
the reason is that when less money is involved, the purchase feels less risky. However, risk
can be great in a B2C context such as when buying a house, car or computer since these are
is all big investments. Therefore, we are of the opinion that risk is generally higher in a B2B
context but recognize that there are situations in a B2C context where risk can be equally
high. Although there are additional consequences attached to a B2B purchase than the ac-
tual purchase, such as default of revenues, complaints, bad will and internal conflicts.
Another characteristic associated with B2B buying behavior is for example larger and more
complex orders (Anderson and Narus, 2004; Fill, 2006; Ford et al., 2002). Gina Tricot states
the same and especially gives the example of store interior. The firm argues that complex
products demand a more “in depth marketing tool”, in order to reach out to the customer.
An in depth marketing tool communicates the benefits more thoroughly, that is, contains
more information. Another general perception is that people in business environments
know what they want. Furthermore, people in a business buying situation are professionals
whereas private persons are more seen as amateurs. It should be taken into consideration
that complex purchases also take place outside the business world and that a consumer
normally knows what it wants as well. Although, this kind of behavior might not be seen as
general on a day-to-day basis as it is in a firm. Gina Tricot’s “in-depth marketing” sugges-
tion is a method that should be used in every situation where larger purchases are done,
both in businesses and for private consumers. From this we gather that there is no special
need to separate the two approaches of B2B and B2C, rather create two approaches of
47
how to tackle complex purchases vs. purchases of daily consumption goods. Thus, it is said
that the complexity of the decision itself makes a difference no matter what kind of envi-
ronment a purchaser is in (Brown and Fern, 1984).
Relationships have long been seen as the foremost trait of B2B markets (Ford et al., 2002).
This is further a major difference that Ahlsell sees when comparing B2B and B2C markets.
A firm in a B2B environment is working with constant relations in more organized forms.
Ahlsell further argues that relations are long-term and firms often reach long-term agree-
ments with each other. This is reality since firms often sign long-term contracts which de-
mand a higher involvement than what can be seen in a B2C market. In B2C markets a sup-
plier generally ends the relationship with the customer after a purchase. Hence, B2B mar-
keting concerns the interactions between two parts to a greater extend then in a B2C con-
text (Ford et al., 2002).
What can be seen from the empirical findings is a 50 percent split between those who make
new-buys and those who rather carry out a re-buy from a past supplier partner. The results
blatantly show that there exists a dichotomy between whether strong relationships are benefi-
cial or not. On one side, Systembolaget has as a standard to only sign maximum three-year
contracts and if possible even shorter. Further Åhléns argues that strong relationships
hamper innovativeness. On the other side we can find Company B which nurtures its rela-
tionship and believes that it is beneficial to get to know each other. This thought is shared
by Posten that defines B2B marketing as something firms develop together with a partner
and that its cooperation can generate creativity and a higher problem solving ability. Be-
cause of the 50 percent split between those who never change and those who continually
change, one can claim that the theory that relationships are the foundation of B2B charac-
teristics is somewhat true. What can be argued is whether long-term relationships are benefi-
cial or not. If close relationships enable greater results or hamper innovation? Resource-
dependent industries are known to create better opportunities through cooperation and re-
lationships whereas in fast developing and constantly changing industries, such as store in-
terior, close relationships could possible hamper innovativeness. The reason for why it can
hamper innovativeness is that firms can miss opportunities, new ideas and a new way of
thinking that other and new suppliers could contribute with. Åhléns and Systembolaget
therefore speak for more competition and not to stay in a relation just because of friend-
ship tactics.
In conclusion we will say that although many of the past perceived ideas still hold true today,
there exists area’s that have changed. Purchasers in a B2B market are perceived to have
greater knowledge and understanding of a product compared to a B2C purchaser. Al-
though, one should keep in mind that any product, whether it is sold in a B2B or a B2C
market, and has the intention of communicating quality and good service should not com-
pete with price. We claim that it is the amount of money spent on a purchase that consti-
tutes the perceived risk, not whether it is in a B2B or B2C context. Further, there is no spe-
cial need to separate the two approaches of B2B and B2C, rather create two approaches of
how to tackle complex purchases vs. purchases of daily consumption goods. The theory
that relationships are the foundation of B2B characteristics have somewhat remained accu-
rate. Although, in fast developing and constantly changing industries, such as store interior,
relationships could possible hinder innovativeness.
Can it possibly be as Ramirent states that the world has changed and that the importance of
relationships, which has been seen as a characteristic for a B2B environment, may start to
48
blur out? We saw significant changes from the perceived idea indicating that possible mar-
keting techniques need to be updated.
Is there a need to separate the marketing approaches towards the different markets?
The traditionally characteristics in B2B markets; specific oriented, high risk decisions, larger
and more complex orders, and relations have made B2B marketing theory to focus on ra-
tional information, long-term contracts and personal relationships. Consequently, this has
shaped assumptions of how marketing communications should be handled and what
communication tools should be used in a B2B market. Although, what is trying to be said is
that Simon’s (1976, cited in Fill, 2006) view of the environment makes it too complex and
dynamic for the decision maker to comprehend and create an objective view. Hence, the
person in charge for a purchase decision will rather rely on knowledge and experience as a
basis of its decision. After conducting the first part of the analysis there seems to be no
special need to separate the two approaches of B2B and B2C. This implies that brand
awareness could contribute to increased sales in B2B markets just as in B2C markets.
5.2 How is brand awareness affecting B2B and B2C markets?
The analysis above shows that there is no special need to separate the two approaches of
B2B and B2C and this can imply that brand awareness could contribute to increased sale
even in a B2B context. We will in this section therefore compare the attitudes towards
branding in B2B and B2C markets and focus on investigating the importance of brand
awareness in a B2B market. A comparison of the theories with the empirical findings will
be conducted to find similarities and differences between branding in the two markets.
Secondly, we will try to answer the question if the brand affects a person in a business deci-
sion situation.
How important is brand awareness in a B2B market compared to a B2C market?
When assessing the differences and similarities between the collected empirical data and
theory about brands and branding, it gave the impression that theory and reality are not al-
ways in line with each other. This is especially true when reflecting about the importance of
brands in a B2B market compared to a B2C market. As stated in the theory section, a for-
mal definition of a brand is that a brand is a “name, sign, symbol, design, or a combination of them,
intended to identify the goods and services of one seller or group of sellers and to differentiate them from those
of competition” (Keller, 2003, p.2). The fact that a brand can be seen from different perspec-
tives and be associated with numerous things may be one of the reasons for the inconsis-
tency in people’s opinions. People tend to have different perceptions about how things are
and the implications of the importance of the brand can differ if it is associated with a
name, logo or symbol.
The increased competition that prevails today in many markets, both B2B and B2C, creates
pressure for firms to differentiate in order to become and stay competitive. One way to dif-
ferentiate is through branding. Several marketing theories state that firms in B2C markets
with a strong brand often get a competitive advantage in comparison with those firms with
weaker brands. It is further proved by many authors that strong brands in B2C markets are
one of the firms’ most valuable assets, and in order for the firm to reach a long-term prof-
itability it is of crucial importance to manage and develop them with great care. (Keller,
2003) This theory amounts to the fact that brands are very important in B2C markets the
power of brands can be a tremendous tool for influencing the buyers. However, in B2B the
brand tends to have a smaller influence on the buyers. (Ford et al, 2002)
49
The responses from the interviewees portray a message surprisingly similar to the B2C the-
ory. Åhléns and Systembolaget state that brands in B2B markets, especially within store in-
terior, are important but not as crucial as other aspects such as quality, knowledge and ser-
vice when choosing a supplier. Zeta and Åhléns additionally value innovative and well-
developed ideas more highly. It could be noted that all these crucial aspects are something
that a brand can communicate. Abecita and Design House Stockholm further believe that
good references and reputation are always of importance. Combining a good reputation re-
garding the presented crucial aspects with a brand will create a competitive advantage. Be-
cause communicating good quality of a brand does not mechanically make people believe it
is true, hence the importance of creating a good reputation for the brand. Ahlsell and
Ramirent claim that a brand in B2B markets is much more than a logotype, that a brand
communicates a firm’s core values and that the firm’s attitudes are embedded within the
brand. Company C would go as far as saying that it is even more important with a strong
brand in a B2B context than in B2C. They justify this by claiming that it is more important
that a partner is reliable in a B2B environment. Reliability is supposedly communicated
through the brand and is said to be, both empirically and theoretically, typically important
for a B2B market.
Theory by Aaker (1996) states that brand awareness is reflected by the consumer’s ability to
identify and remember the brand under different conditions from recognition to recall, to
“top of the mind” and finally to dominance. This is in line with what several of the respon-
dents believe of a B2B environment. They argue that as the purchaser has high awareness
of a supplier or its brand this can influence, facilitate and speed up a business decision.
Since the purchaser already has knowledge about a firm less research is required before
making a decision. Further benefits for the supplier of having a strong and well-known
brand is that it will save time and facilitate for the sellers. They will not need to waste time
and effort on explaining the firm’s history and what is sold.
Company A is very clear in their opinion that having a known brand is extremely important
both in B2B and B2C markets. The company states that; “if you are visible on the market you
will be contacted. However, if you are not visible you do not exist”. This opinion is shared by
Ramirent as they claim “People need to know of Ramirent’s existence, how could we possibly increase
our sales if our customers do not know that we exists? Ramirent therefore believes that a brand
and creating awareness for the general public is of great importance in order to reach brand
equity.
Although the respondents presented above thought brands in B2B markets, and within the
store interior, are somewhat important it was not a consensus with all of the respondents.
Gina Tricot claims a well-known brand is not relevant at all. The firm knows what it wants
and does not care about what brands other firms use and like. According to Abecita and
Design House Stockholm, the importance of the brand is dependent on which branch you
are operating in. As Abecita, answered; “Clothes are highly brand sensitive, but in this case with
store interior the brand is of less importance”. Continuing, Design House Stockholm says that
brands are in general extremely important but not particularly important in the store inte-
rior industry. Philip Morris is of the same opinion and believes high brand awareness is
beneficial in many aspects. Although, Philip Morris further state that it is important that
one as a purchaser keeps in mind that there are many small suppliers that exist on the mar-
ket with great competence, but perhaps not have the monetary capabilities to gain brand
equity. Following this line of thought, Posten states that a strong brand does not consid-
erably influence its selection of new suppliers. It makes sure that every supplier is reviewed
and given equal opportunity, with or without a strong brand. This is an implication that
50
branding in B2B markets might not be a crucial factor for all firms purchasing store inte-
rior. Further, this is something that differentiates from the B2C market. Thus, purchasers
of store interior do not always rely upon brand awareness when searching for new suppli-
ers. What can be questioned though is if Philip Morris and Posten put in the extra effort to
find these small, unknown suppliers? And further if small unknown suppliers actually pro-
cure these big customers?
The two firms who practice B2C tools in B2B context, Ahlsell and Ramirent, are also the
two firms that are the most favorable for the importance of brands in B2B markets. If it is
acknowledged that brands are of highest importance, how can a person in a business deci-
sion situation be affected?
How can or does a brand affect a person in a business decision situation?
The discussion above tells that brand awareness is an important aspect both to industrial
buyers as well as to consumer buyers. Recognition of the brand name gives the brand a
sense of familiarity, which can drive the buying behavior. (Aaker, 1991) For larger invest-
ments people tend to be more careful. Therefore, creating awareness of one’s brand should
be of greatest importance. Philip Morris is of the opinion that communicating credibility
through a brand is of great importance since people rather buys a brand that is known.
Thus, people like the familiarity and are more likely to buy products which they recognize
rather than products with unknown brands. If the brand is not recognized, the purchaser
does not know what to expect in return for the money they spend. Additionally, we are of
the opinion that having a brand name that is easy to remember will generate that more
people know about the brand. Company B shares this opinion and believes that the brand
name is the most important aspect of a brand.
According to theory this familiarity drives the buying behavior, which strengthens our be-
lief that a strong and well-known brand can affect the purchaser when taking a decision.
One of the first things a purchaser will do in the buying process is to select a group of
brands to consider for the purchase. In most cases, the supplier that first comes to the cus-
tomer’s mind will have an advantage. ROL AB is also of the belief that if its work would be
more recognized and if more people knew about its work, it could easily gain more cus-
tomers and sales. It is a major loss in the opportunity of free advertising not to have a sign
on the products saying; Made by ROL AB – Innovative Retail Solutions.
Conclusively, factors that our respondents found more crucial than a strong brand when
choosing a supplier were presented. It was factors such as quality, knowledge, service, and
innovative and well-developed ideas. However, how will a supplier communicate these as-
pects if not through its brand, especially one with a good reputation? Some argued that the
importance of the brand is dependent on which branch a firm is operating in. It has been
said that the brand is generally extremely important but not particularly important in the
store interior industry. Purchasers of store interior have to keep in mind that there are
many small suppliers that exist on the market with great competence, but perhaps not have
the monetary capabilities to gain brand equity. What can be questioned is if firms put in the
extra effort to find these small and unknown suppliers? And further if small and unknown
suppliers actually procure these big customers?
We have the opinion that brand awareness is important in B2B markets since as said, ”If you
are not visible, you do not exist”. Additionally, high awareness of a supplier and its brand in a
purchaser’s mind can influence, facilitate and speed up a business decision. Further benefits
for the supplier of having a strong and well-known brand is that it will save time and facili-
51
tate for the sellers. We are convinced that higher brand awareness can help the firm to in-
crease its sales since it is seen and recognized by more people who can generate business
for the firm. Further, a strong and recognized brand is good and vital for the people who
work at the firm and represent it daily. Additionally, a brand that communicates credibility
and are visible will attract competent personnel. The question that now arises is; how can
all this be communicated through the brand? The following section will investigate if tradi-
tional B2B marketing tools (relational) are sufficient alone to reach brand awareness, and
whether a supplier can use B2C marketing tools (transactional) in order to achieve brand
awareness.
5.3 Which marketing tools are preferable in a B2B market?
The traditionally characteristics of B2B markets; product knowledge, high risk decisions,
large and complex orders and interactive relations have made B2B marketing theory focus
on rational information, long-term contracts and personal relationships. Consequently, this
has shaped assumptions of how marketing communications should be handled and what
communication tools that should be used in a B2B market. We have discussed branding
and have concluded that higher brand awareness can help a firm in a B2B market to in-
crease its sales. We are stating that the typical characteristics of B2B markets tend to blur
out in a changing market and that brand awareness is more important now than ever. In
order to find out how to achieve higher brand awareness, we have looked into the reactions
of buyers towards different types of marketing. Research has shown that both transactional
and relational paradigms are relevant in contemporary marketing, regardless the type of
market. The two types of marketing approaches will be discussed below in order to answer
following research question.
Which marketing tools are most efficient to use in B2B markets, especially in the area of store interior?
5.3.1 Relational Marketing
Relational marketing is defined by Gummesson (2002) as marketing with focus on interac-
tions, relationships and networks. It has emerged within the fields of industrial marketing and is
often used in B2B markets (Grönroos, 1997). Relationship marketing includes many differ-
ent kinds of marketing with accompanying tools. Since relationship marketing is such a
broad topic one can not successfully use it to describe proper marketing in this specific
context. Thus, the different marketing tools are evaluated individually.
Interaction marketing
Coviello et al. (1997) defines interaction marketing as a process that engages individuals
who take initiatives to complex relationships and handle personal interactions within rela-
tionships. Some of the marketing tools that are most frequently used in this kind of mar-
keting are phone calls and personal face-to-face meetings.
Most interviewed firms prefer that suppliers contact them via the telephone. This was pri-
marily because those purchasers found it as the best way of acquiring knowledge of a firm
and its products. The general opinion was that phone calls are of great use as an initial con-
tact with a firm. As the interviews were conducted we recognized a consensus of thought
that in B2B markets relationships are important. Although, it is also important not to come
“too close too fast”, since it tend to intrude the possible customers’ individual space. Some
marketing tools feel too personal to start out with while phone calls are a marketing tool
52
that firms find comfortable in the beginning of a relationship. Firms such as Gina Tricot
and Zeta saw phone calls as negative though, and reasoned that they were too time con-
suming. Instead they prefer to receive a brochure in which they could look when time was
available. Although two firms considered phone calls to be bad the majority found them
very useful. This suggests that on a general basis it could be concluded that phone calls are
an effective tool. Maybe Gina Tricot and Zeta experience environmental circumstances
that changed their perceptions, possibly having less time or that new suppliers are not as
important. This is in accordance to the empirical findings were the loyalty to their existing
supplier can be seen.
Personal meetings where the seller and buyer meet each other face-to-face are seen by all
the firms as the best way of actually conduct business. Personal meetings are used when the
initial phase of introduction and the “make contact” phase are completed. The motive is
that personal meetings are, as the theories states, an effective way to communicate the
marketing messages and that it allows for personal discussion and feedback (Kotler et al,
2002). The main objective is to build a long term relationship with the customer. Almost all
the interviewees said that they never meet a representative unless a meeting has been
agreed upon prior. If a seller arrives to a firm and tries to attain a personal meeting, he or
she will be turned away. This would imply that personal meetings should be seen as the last
part of the marketing and selling process, while other marketing tools are efficient when at-
tracting the initial contact with new customers.
Network marketing
Network marketing focuses on multiple network relationships between firms, and has a
significant interest in the “connectedness” of these relationships (Coviello et al, 1997).
Trade fairs are an example of a network marketing tool that is often used. Trade fairs are a
place for the suppliers’ sales force to perform personal presentation in order to market and
sell products, and where customers of store interior can attend.
Three different opinions regarding trade fairs were received during the interviews. Some of
the firms attended trade fairs frequently in order to establish business contacts, while oth-
ers only saw trade fairs as a way to gain inspiration. Finally, some of the firms hardly visited
any trade fairs at all. Gina Tricot AB was one of firms that refrained from attending trade
fairs. The firm has always been loyal to its interior supplier and often traveled to cities such
as Milan and New York to become inspired or find new ideas. Thus they have no need for
the benefits of trade fairs. There was a correlation between firms, such as Philip Morris,
Zeta and Company C, who saw trade fairs only as a source of inspiration or ideas and those
firms who were loyal to their existing suppliers with no intention of switching. These firms
stated that they then brought the ideas back to their existing supplier. Firms such as Com-
pany B and Hemtex, who saw trade fairs as a way to establish contacts found it as a benefi-
cial and straightforward way to meet many different interesting suppliers during a day. We
are of the belief that trade fairs are an efficient marketing tool as a means to meet new cus-
tomers, as trade fairs focus on specific industries and therefore gather many potential cus-
tomers at the same place. Additionally, trade fairs are beneficial as they show a firm’s prod-
ucts and communicate its marketing message. Conversely, since many firms attend trade
fairs with the reason to gain information, participation at a trade fair may not be as efficient
as many firms imagine. It is therefore important afterwards to evaluate how much the firm
gained from their participation. Through research we realized that suppliers that participate
at a trade fairs, should be aware of the threat of being copied from those firms who only at-
tend fairs in order to bring the ideas back to there existing suppliers. To back up this theory
we went back to ROL AB with the question. They were aware of this issue and in order to
53
deal with this problem ROL AB has chosen not to exhibit any of its new innovations at
fairs. This in turn implies a great loss for those firms who attend trade fairs with the atten-
tion not to build new contacts. They will never access any actual new innovation and will
become lost in development.
Database marketing
A database is a file including information about potential customers. Firms use this infor-
mation in order to gain a better understanding of the customers and to create relationship
with them; often through direct marketing (Drozdenko and Drake, 2002). Direct marketing
is communication with specific targeted individual customers. It can be done through mail,
fax, e-mail, and internet and address the message to specific customers (Kotler et al, 2002).
E-mail is one of the most popular marketing tools in database marketing. Firms find possi-
ble customers in databases and later contact them by e-mail. There existed two different
opinions within the interviewed representatives regarding the usefulness of e-mails as a
marketing tool. Gina Tricot and Hemtex, the two companies most concerned with time
management, prefer to get an e-mail instead of a phone call from suppliers. While Zeta and
Company A had the opinion that e-mails are inefficient since a purchaser receives so many
that they hardly read them.
When mail was discussed as a marketing tool, most interviewees explained that they receive
such an abundance of direct marketing such as brochures that they often are thrown away
before being read. However, mail would be a more efficient marketing tool when used si-
multaneously with a phone call. Zeta on the other hand would like to first get a brochure
that was followed-up with a phone call. However, the overall opinion is that direct market-
ing through mail may not be the most efficient marketing tool. Although, it can be benefi-
cial if not employed independently.
Internet and web pages are used when companies search for suppliers themselves. How-
ever, they do not contribute tremendously from a marketing standpoint since firms often
are contacted by suppliers and not the other way around. The general opinion of the inter-
viewees was that a good webpage is always beneficial in order to show a company and its
products in a straightforward way. But obviously this can not be the only thing and it is just
a small part of a comprehensive marketing plan. Company B believes that a company
should have a webpage, but it should be seen more as a compliment to other more power-
ful marketing tools. We claim that it is vital for a firm to have a webpage since internet is
the most frequently used tool when searching for suppliers. Additionally, a webpage en-
ables the supplier to easy and at a low cost marketing itself, its brand, and its products.
Thus, a webpage is a very cost efficient marketing tool. However, it may not be as efficient
as other tools when trying to get in contact with new suppliers. It should therefore be, as
Company B states, seen as an information provider and a compliment to other marketing
tools.
To conclude there is no relationship marketing tool that alone can be seen as the most effi-
cient tool in a B2B market, they have to be used together. An important factor is to know
who is addressed in the marketing efforts. If a supplier manages to accomplish good re-
search, it will be able to reach the correct people and in such way avoid possible negative
vibes in regard to its name. It is suggested by our research that telephone calls are a prefer-
able tool for initial contact. This should be accompanied by a presentation of who the sup-
plier is and what it has to offer, either by e-mail, or by mail in the form of a brochure.
Once a phone-call-relation is successfully established the two parts can arrange a personal
54
meeting. This is an appropriate method in order to execute actual business. Trade fairs and
Internet are beneficial tools for a supplier to be visible to firms who are on the hunt for a
suitable contact. Hence, they are excellent compliments to other relationship marketing
tools.
Nevertheless, all of these marketing methods do not contribute enough to higher brand
awareness. All the discussed methods above have emerged in industrial marketing and are
supposedly not adapted to the change in the business market in recent years. Below we dis-
cuss the appropriateness with bringing together the changing B2B market with transac-
tional marketing in order to achieve brand awareness.
5.3.2 Transactional marketing
Transactional marketing is focused on a single sale in short term period. It is oriented to-
wards product features and has little emphasis on customer service, involving limited cus-
tomer commitment and moderate customer contact. Advertising is an important part in
transactional marketing. (Christopher et al., 2000) Radio, print media, and TV are some of
the most frequently used parts of this marketing tool (Tellis, 2004). This kind of marketing
is mostly used in B2C markets according to Kotler et al (2002). We on the other hand claim
that it should be beneficial to use advertising in B2B markets as well. Hence, the intention
is to conduct an analysis in order to find out if advertising can reach the accurate segment
in B2B markets.
In what way, if possible, can professional buyers be influenced when making a purchase decision by market-
ing tools they are exposed to outside of work?
Increased competition is providing the industry with more similar products, therefore being
visible is more important now than ever before. This change of market structure supports
Lazo, who already in 1960 argued that there is an increased importance of using subjective
factors in the buyer’s decision process. A central part of the decision is the favorable emo-
tional impressions of both persons and firms. Even though the impact of impressions
might not always be conscious, they still should affect the outcome of the marketing ac-
tions.
As the interviews were conducted, many interesting opinions were received within this sub-
ject. Opinions ranged from people who thought advertising outside work can substantially
influence a purchaser in a business decision situation to those who thought purchasers
cannot become influenced at all. Respondents such as Posten and Gina Tricot believe that
purchasers are in no way influenced outside work when consider work issues. They claim
that these decision makers have different roles at home and at work and that the two do
not overlap.
However, most people interviewed were of the opinion that a purchaser can consciously or
unconsciously get influenced. Systembolaget and Abecita believe that even though people
do not think they get influenced by advertising, people are affected by what they see and
hear and will bring that to the work environment. Company A further argues that profes-
sional buyers are influenced by what they see and hear during leisure time since profes-
sional buyers also are consumers. B2C marketing tools could therefore also be efficient in
B2B markets. Company B further believes that purchasers can be affected of adverting out-
side work, but not enough to make a difference.
55
Philip Morris is convinced that one is influenced outside work and that one can, to a cer-
tain point, use B2C tools such as TV and cinema commercials in a B2B market. Whether
or not it is successful depends on what kind of product it is. Complex products such as
store interior will be harder to communicate as a message through advertising. It may need,
as Gina tricot stated, a more “in-depth” marketing tool that can explain more about the
products. Thus, advertising alone cannot communicate the benefits of a product.
Abecita believes that professional buyers can get influenced outside work. The firm has the
opinion that a purchaser of store interior can be influenced as long as it is through the right
channels. They thought it is necessary to be seen through channels that are credible and se-
rious and by that give the firm increased credibility. Ford et al. (2002) says that if one looks
behind the roles of responsibility of a professional buyer, an individual person will have
their own perceptions, expectations and objectives based on their personalities and back-
grounds. This implies that what Design House Stockholm state is true; that the similarity
between B2B and B2C marketing is that both are trying to reach out to a person, and for
that clever and innovative advertising is essential. This substantiates the resemblance in the
two markets because in the end we are all consumers, albeit in different situations.
A majority of the respondents seem to believe that professional buyers can be influenced
outside work. However, if that is the general opinion why are not B2C marketing tools,
such as advertising, more used in B2B markets? One explanation can be that advertising is
an expensive marketing tool, especially using TV. Before a firm in a B2B market decides to
use advertising it needs to have some kind of evidence that it will gain more then it costs.
This is where firms start to doubt the usefulness of advertisings. It is difficult to measure
the tangible effect since the actual purchase may not be seen as a direct link to the advertis-
ing, nor can increased sales always be linked. The risk is that the goal of achieving aware-
ness of a firm, its brand, and products may be overlooked. Although, greater brand aware-
ness does, according to previous discussion, facilitate the marketing intensions significantly.
The sales force might sell more due to the fact that they are supported by advertising.
In order for advertising to be efficient in radio, TV, and print media, it is crucial to do a
marketing research. Firms first have to learn how business buyers make decisions. Once
these processes are understood, it is possible to select a suitable message, media, and tools
to reach these vital market segments. (Clow & Blaack, 2002; cited in Blombäck, 2005) If a
firm finds a way to carry out advertising where a large part of the targeted customer seg-
ment will be reached, it will then be efficient and the firm can gain tremendously. Ramirent
is an example of a firm that uses advertising tools even though it operates in a B2B market.
It has done market research and has found out that its customer segment is very interested
in ice-hockey. Considering that, the firm does advertising in all the different rinks in Swe-
den. It is a way to increase its brand awareness among its potential customers and by that
increase its sales.
According to theory and most of the interviewees, professional buyers can get influenced
by advertisement they are exposed to outside work; as long as it is through the right chan-
nels. It is therefore of great importance for a firm to be visible in channels that are credible
and serious in order for the advertising to be efficient and beneficial. Even though people
do not believe they get influenced by advertising one tends to get influenced, albeit uncon-
sciously. We have the opinion that professional buyers are influenced by advertising outside
of work since in the end we are all consumers.
56
6 Conclusion
In this section we will present the final conclusions which answer the purpose. Further, the analysis resulted
in a number of suggestions regarding marketing strategies for ROL AB which will be presented as a course
of action to achieve higher brand awareness.
Many of the past perceived ideas of marketing still hold true today. However some areas
have changed. The typical characteristics of B2B markets show a tendency to blur, insinuat-
ing B2B and B2C are blending. After conducting research we came to the conclusion that
there is no special need to separate the two approaches of B2B and B2C, rather separate
the two approaches of how to tackle complex purchases vs. purchases of daily consump-
tion goods. The perceived risk of a purchase does not depend on whether it is in a B2B or
B2C context, rather on the amount of money spent. Further relationships, specifically in
the store interior industry, could possibly hamper the innovativeness due to fast develop-
ments.
In recent years the competition has become stringent in the store interior market and it has
become more important than ever to be visible in order to exist. Hence the importance of
brand awareness in a B2B environment has increased and has now become similarly impor-
tant as in B2C environments. High awareness in the purchaser’s mind can influence, facili-
tate and speed up a business decision, thus it enhances relational marketing approaches.
This says that as brands are gaining importance in the B2B environment, B2B firms need
to increase their brand awareness in order to react to this change. The question is how?
The research further came to the conclusion that no relational marketing tool can alone be
seen as the most efficient tool in B2B markets. They have to be used as complements to
each other since they are used in different phases. Although these tools are useful they are
not sufficient to be independently employed in order to reach brand awareness. Further,
research showed that professional buyers can become influenced outside work by everyday
impressions. This implies that B2C marketing tools could be beneficial to use in B2B mar-
kets as a mean to reach the goal of brand awareness.
Theory has shown that increased competition is providing the industry with more similar
products which increases the importance of using subjective factors to influence a buyer’s
decision process. Thus the use of B2C marketing tools, such as advertising, also has grown
in importance. A purchaser is not always consciously aware of how he/she is impacted by
impressions. However these impressions still tend to affect the outcome of the suppliers
marketing actions.
In spite of all the benefits of advertising, research has shown that it is important to con-
sider that advertising is an expensive marketing tool. Therefore it is essential for firms in
B2B markets to find a way to carry out advertising where a large part of the targeted cus-
tomer segment can be reached. It is also necessary to use channels that are credible and se-
rious in order for the advertising to be trustworthy. If all these aspects are considered, ad-
vertising could be efficient and firms in B2B markets can gain tremendously.
6.1 Suggestions for ROL AB
After studying the conducted research of professional people’s perceptions of B2B markets
and marketing tools, we have come up with some suggestions for ROL AB.
57
Presently ROL AB is a relatively unknown firm in its home market of Sweden. Even
though ROL AB supplies many strong branded firms such as Disney, Chanel, Diesel, they
are paramount to invisible since no one associates the products with the ROL brand. The
market ROL AB operates within is tough and it has become increasingly competitive in re-
cent years. There are many large, competent, and proficient firms competing for the exist-
ing customers. During one of the interviews the key account manger at ROL AB got the
question:
“If I, as a customer, want to invest in new store fixture, how do I know that ROL AB is an existing sup-
plier with a solution to my problem? He replied with “As it is today, you can not know that”. This
implies that ROL AB has to do something about its current situation.
ROL AB is in the unusual situation of being a large, mature and successful business but
facing the problem of having a, more or less, non-existent brand. Changes in the market
and the increased competition has contributed to ROL AB’s recently realisation that a
strong brand is necessary for their continued growth and success. It has come to the con-
clusion that it needs to start marketing and communicate its brand in order to meet the in-
creased competition. In this section we will therefore try to investigate the question:
How can ROL AB develop its marketing communication?
The interviewed firms preferred being contacted initially by phone. This should be accom-
panied by a presentation of who the supplier is and what it has to offer, either by e-mail, or
by mail in the form of a brochure. As initial contact is established a personal meeting can
be arranged. Favourably, ROL AB should follow this track. The interviewed firms are ex-
isting and potential customers to ROL AB, and therefore the answers are particularly im-
portant and interesting to consider. ROL AB has today a sale force that works with phone
calls and personal meetings. However, since it has proven to be highly valued among exist-
ing and potential customers ROL AB should develop its firm presentation further.
Trade fairs and internet has turned out to be beneficial tools to use in order to increase the
visibility and awareness of a firm. These tools are therefore excellent compliments to other
relationship marketing tools. ROL AB has recently started to visit trade fairs and we sug-
gest it to continue, since it has shown to be valuable when trying to meet new customers.
The firm has today an attractive Webpage but in order to stand out in contrast to competi-
tor’s WebPages, it could preferable develop it further. WebPages are often the first contact
a potential customer has with a supplier, and therefore they are of great importance.
Today people do not know that ROL AB’s products are at ICA, Systembolaget, etc, since
there is nothing of indication. Therefore, another marketing aspect for ROL AB to develop
further is the sign that the firm just has started to put on its products. It has been major
loss in the opportunity of free advertising not to have a sign on the products saying; Made
by ROL AB – Innovative Retail Solutions. People who are interested in interior design and
works with that tend to pay attention to interior when being in stores. Having this sign on
its products will be a great possibility for ROL AB to attract these people and perhaps gain
new customers.
In order for ROL AB to grow, enhance the brand awareness, and meet the increased com-
petition on the market, it is suggested to use more than the regular B2B marketing tools.
What could ROL AB possibly gain from using B2C marketing tools?
58
Firstly, it is important to decide whether or not professional buyers become influenced by
advertising, since it is only then it would be beneficial for ROL AB to use B2C marketing
tools. Most of the interviewed people were of the opinion that professional buyers in some
way or another can get influenced. People are affected by some means of what they hear
and see if it is through the right channels. This implies that if a firm chooses an accurate
media for traditional B2C advertisement, the advertising can create an interest even in a
B2B context. However, in order for advertising to be efficient in radio, TV, and print me-
dia it is crucial to do a thorough market research. It is for example important to find out
what the targeted customer segments watch and listen to, in order for the advertising to be
efficient. If ROL AB should gain brand awareness from using B2C marketing tools, it is of
importance to conduct a market research to find the best channels in order to reach out to
potential customers. It is also of importance to communicate information through hard
facts and not only emotions.
Many of the interviewed people believed that high awareness of a firm and its brand can in-
fluence, facilitate and speed up a business decision. If the firm is already familiar with the
supplier, there is no need to present or do research about the firm before making the deci-
sion. This is an advantage since it saves time and facilitates the sellers’ work. ROL AB can
gain from having high brand awareness since the seller no longer need to waste time and
effort on explaining the firm’s history, and what it sells.
As stated earlier ROL AB could gain tremendously by increasing its brand awareness and
B2C marketing tools could be efficient to use as a complement to the traditional B2B mar-
keting tools. This way of thinking is shared by Ramirent that states that the long-term goal
with all marketing is to increase the sales. People need to know that the firm exists in order
for it to increase its sales. Ahlsell also share the idea of using B2C marketing tools to in-
crease the brand awareness and the sale. The firm also believes that less known firms
would probably benefit more from using B2C marketing tools in B2B markets. Since ROL
AB is a generally unknown firm with a weak brand we are of the opinion that it could gain
a lot from using B2C marketing tools. It is important for the firm to increase its brand
awareness, which could be done through more advertising. The greatest importance of high
brand awareness might be that it helps the sellers, since it is easier to catch the potential
customers’ interest if they know about the firm and its products before the seller calls.
However, advertising is expensive and in order for it to be efficient and beneficial, it is of
crucial importance for ROL AB to really find the right tools and channels to use, to be sure
that it reach out to the right segments.
59
7 Discussion
This chapter discusses the outcome of the thesis. It presents some limitations of the study which are impor-
tant to be aware of in order to get the correct interpretation of the result. The chapter continues with some
criticism of the chosen method and how it could have affected the result. Furthermore, some areas for further
studies are presented.
7.1 Limitations
The results of this thesis are based on a relatively small number of interviews, only 15. The
reason for this is the lack of time and resources that forced us to limit the number of inter-
views. This limits the possibility to do generalizations of B2B markets. However, it is pos-
sible to do generalizations for the store interior industry and other B2B markets that are
similar to this industry. An additional limitation is that the interviews were made with peo-
ple who had different educations and positions at the respective firms. One can see that it
differs in knowledge and familiarity with concepts concerning B2B/B2C market-
ing/markets between those interviewed people who have an academic background and
those with a more “learning-by-doing” background. The reason for this selection was that
we wanted to interview those who handle the purchase of store interior at the different
firms. Different firms have dissimilar structures and organizations which can explain why
people with different positions handle the purchase of store interior in various ways. The
fact that we interviewed people with different education and positions in the firms may
have had an impact on the result.
ROL AB is operating in several countries with manufacturing operations, sales forces and
service partners all over the world. However, a limitation of the thesis is that due to lack of
time and resources to include more markets it focuses only on the Swedish market. This
makes it difficult to state that the results can reflect anything else then the Swedish market
since all markets differs in one way or another.
For the collection of the empirical findings we chose telephone interviews. It could be dis-
cussed if this is the proper way to do it since the number of interviews gets limited and one
miss the personal contact with the interviewee, e.g. reading of body language, creation of
trust. We are aware that people in general find it easier to talk about sensitive subjects and
that trust is easier created through a face-to-face contact. However, it is not found relevant
to reach such substance because the result will be more of an attitude/perception and nei-
ther one of the drawbacks will affect these interviews negatively.
7.2 Suggestions for further studies
This thesis has only focused on the Swedish market, and for further studies it could be of
interest to investigate markets outside Sweden. It could be of interest since markets in dif-
ferent countries often vary a lot. In this thesis the store interior industry is the focus. How-
ever, it could be of interest to analyze another B2B market in Sweden where products are
less complex to see whether the perceived B2B characteristics are even more out of date
and the that the use of B2C tools are even more beneficial. Since we only looked at the im-
portance of brand awareness in a B2B market it can be interesting in the future to investi-
gate more thoroughly whether it is cost efficiently enough to cover the effort it requires to
reach it.
60
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Appendix 1
Interview guide for existing and potential customers
Information about the company and the supplier relationship
1. How many stores do Your firm have?
2. Does Your firm grow anything? If so how much per year?
3. How much was the turnover last year?
4. How many visitors do Your stores have per year? (approximately)
5. How often do You buy new interiors to Your stores?
6. Are the same interior used in all stores?
7. How many different suppliers do You work with? Why these suppliers?
8. Are your firm loyal to Your suppliers?
Marketing tools
1. How do You decide which suppliers to work with? Do You get contacted or do
You contact suppliers by yourselves?
2. Does it matter if the suppliers have a strong brand? Why?
3. When/ if You try to contact a supplier. How do You do that?
- internet
- word-of-mouth
- databases
- network
- previous relations
- brand recognition
- market research
4. Which marketing tools do You prefer that sellers use when trying to contact You?
And which marketing tools do You dislike?
Direct marketing
- e-mail
- brochures
- phone
- fax
Mass communication
- TV
- Radio
- Newspapers
Personal selling
- fairs
- personal meetings
5. Why do You prefer/ dislike these marketing tools?
6. Which marketing tools do You think is most efficient? Why?
7. Do You always use the same marketing tool?
65
Personal opinion
1. What kind of education do You have?
- Academic
- Experience
2. What is a B2B market for You?
3. What do You think of when I say B2B marketing?
- some special marketing tools
- relations
- special way of working
4. What do You believe is the biggest difference between B2B and B2C? Why?
5. What do You believe is the biggest similarity between B2B and B2C? Why?
6. Do You think a strong brand is important in a B2B market?
7. Do You think brand awareness facilitates the purchasing process, both for supplier
and customer?
8. Do You believe that a person is the same person at home and at work?
9. Do You think that one can get influenced by things one see at home when taking a
purchasing decision at work? Ex by something that you have seen on TV at home
10. Is it possible to use B2C marketing tools in a B2B market?
11. If so, what can a B2B company gain from that?
66
Appendix 2
Interview guide for B2B firms that use B2C marketing tools
Marketing
1. What kind of marketing tools does Your firm uses?
2. Why these different marketing tools?
3. The B2C marketing tools that You have used, why have You chose to use them
when Your firm is a B2B firm?
4. Can You see any difference and result since You started to use these B2C market-
ing tools?
5. Will You continue to use B2C marketing tools in the future?
Personal opinion
12. What kind of education do You have?
- Academic
- Experience
13. What is a B2B market for You?
14. What do You think of when I say B2B marketing?
- some special marketing tools
- relations
- special way of working
15. What do You believe is the biggest difference between B2B and B2C? Why?
16. What do You believe is the biggest similarity between B2B and B2C? Why?
17. Do You believe that a person is the same person at home and at work?
18. Do You think that one can get influenced by things one see at home when taking a
purchasing decision? Ex by something that you have seen on TV at home
19. Is it possible to use B2C marketing tools in a B2B market?
20. If so, what can a B2B company gain from that?
67
Appendix 3
The ROL process for partners
ROL Offices | Sweden | Norway | Denmark | Finland | United Kingdom | Benelux | France | Germany | Poland | Slovakia | Switzerland | Thailand | Singapore | Italy | USA | Brazil | Lithuania
The ROL Process for partners
(alternative 1)
Customer team
Need
Design Prototype
Value engineering
0-Series
Installation
Series production
Full project team incl. Country and logistics
Evaluation » ROL leads and
participates in all steps in
the process
» This method is used
when speed is important.
ROL Offices | Sweden | Norway | Denmark | Finland | United Kingdom | Benelux | France | Germany | Poland | Slovakia | Switzerland | Thailand | Singapore | Italy | USA | Brazil | Lithuania
The ROL Process for partners
(alternative 2)
Customer team
Need
Design Prototype
Value engineering
0-Series
Installation
Series production
Full project team incl. Country and logistics
Evaluation
» A 3-rd party delivers the
need phase plus the
creative design works.
» ROL Makes the technical
design, value engineer,
prototype and fulfill the
remaining process steps
68
ROL Offices | Sweden | Norway | Denmark | Finland | United Kingdom | Benelux | France | Germany | Poland | Slovakia | Switzerland | Thailand | Singapore | Italy | USA | Brazil | Lithuania
The ROL Process for partners
(alternative 3)
Customer team
Need
Design Prototype
Value engineering
0-Series
Installation
Series production
Full project team incl. Country and logistics
Evaluation
» A 3 rd party deliveres the
need phase plus the
design works and the
prototype.
» ROL Value engineer the
product to reduce
product and logistic
costs.
» This alternatives uses
the longest time from all
the alternatives
69
Appendix 4
Approval of the interview with Monica Gustafsson, Philip Morris
70
doc_712123953.pdf
In early history it might have been enough with innovative products, great engineering, or great salesmanship solely to close a business deal. However, today’s firms are facing a different situation with shorter product life cycles and the intensity of global competition, which no longer provides the luxury of “build it and they will come” thinking.
J ÖNKÖP I NG I NT E RNAT I ONAL BUS I NE S S SCHOOL
JÖNKÖPING UNIVERSITY
Mar ket i ng communi cat i on i n a B2B mar ket
- a case study of the store interior industry
Paper within Business Administration
Author: HALLIN IDA
JOHANSSON MARIA
LARSSON CAMILLA
Tutor: Anette Johansson
Elena Raviola
Jönköping December 2006
i
Bachelor Thesis within Business Administration
Title: Marketing communication in a B2B market
– a case study of the store interior industry
Author:
HALLIN IDA
JOHANSSON MARIA
LARSSON CAMILLA
Tutor:
Anette Johansson
Elena Raviola
Date: 2006-12-12
Subject terms: Marketing communication, marketing tools, B2B markets,
brand awareness.
Background: Today firms are facing increased global competition, and it results in shor-
ter product life cycles. The present situation demand firms to focus more
on marketing and how to communicate with the customers. In the mar-
keting field there has always existed a perceived dichotomy between B2B
and B2C markets. It is said that B2B markets must be handled differently
than B2C markets. Recently the perceptions have changed and it is said
that B2B and B2C markets have more similarities than previously as-
sumed, and this might affect the decision about which marketing tools to
implement. This could even change the old way of thinking, which states
that B2C marketing tools cannot be used effectively in a B2B market.
Theories show that brand awareness is of crucial importance in B2C mar-
kets. Will the change of market structure make brand awareness equally
important in a B2B market?
Purpose: The purpose of this thesis is to critically analyze the attitudes towards dif-
ferent B2B marketing tools and the possible appropriateness of using B2C
marketing tools in a B2B market in order to achieve brand awareness.
Method: A qualitative approach has been used in order answer the purpose of the
thesis. ROL AB has been used as a case study, and 13 open phone inter-
views have been conducted with existing and potential customers of ROL
AB. Furthermore, two interviews have been conducted with firms that
successfully use B2C marketing tools in B2B markets.
Conclusions: The typical characteristics of B2B markets show a tendency to blur. This
insinuates that brands are gaining importance in the B2B market. In order
to react to this change, B2B firms need to increase their brand awareness.
The traditional relational (B2B) marketing tools seems no longer to be suf-
ficient to be used alone but now need to be accompanied with transac-
tional (B2C) marketing tools.
ii
Table of Contents
1 Introduction............................................................................... 1
1.1 Background ............................................................................................1
1.2 Problem discussion ................................................................................1
1.2.1 Problem specification .............................................................................2
1.3 Purpose..................................................................................................2
1.4 Delimitation.............................................................................................3
1.5 Definitions...............................................................................................3
1.6 Disposition..............................................................................................3
2 Theoretical Framework............................................................. 5
2.1 Principal B2B market theory...................................................................5
2.1.1 B2B marketing........................................................................................6
2.1.2 Business buying behavior process .........................................................6
2.2 Branding.................................................................................................7
2.2.1 Brand equity ...........................................................................................8
2.2.2 Brand awareness....................................................................................8
2.2.3 B2B branding..........................................................................................9
2.3 Marketing communication.....................................................................10
2.3.1 Transaction marketing..........................................................................11
2.3.2 Relational marketing.............................................................................11
2.3.2.1 Database marketing......................................................................................................12
2.3.2.2 Interaction marketing ....................................................................................................13
2.3.2.3 Network marketing........................................................................................................14
2.4 Research questions..............................................................................15
3 Methodology ........................................................................... 16
3.1 Research methods ...............................................................................16
3.1.1 Conditions for choosing method...........................................................16
3.1.1.1 The course of action .....................................................................................................16
3.1.1.2 Problem statement........................................................................................................16
3.1.1.3 Prerequisites and resources.........................................................................................17
3.1.2 Quantitative vs. Qualitative...................................................................17
3.1.2.1 Method chosen .............................................................................................................17
3.2 Case study ...........................................................................................18
3.3 Interview selection................................................................................18
3.4 Data collection......................................................................................19
3.4.1 Primary data.........................................................................................19
3.4.2 Secondary data ....................................................................................20
3.5 Data Analyzing .....................................................................................20
3.5.1 Validity and reliability............................................................................20
4 Empirical Findings.................................................................. 22
4.1 Case study- ROL AB............................................................................22
4.1.1 The company........................................................................................22
4.1.2 Customers............................................................................................23
4.1.2.1 Process for customer firms...........................................................................................23
4.1.3 ROL AB’s current situation ...................................................................24
4.1.3.1 ROL AB’s current marketing strategy ...........................................................................24
4.1.3.2 Mr. Kron’s personal reflections .....................................................................................25
4.2 Interview with existing customers .........................................................26
iii
4.2.1 Abecita .................................................................................................26
4.2.2 Design House Stockholm.....................................................................27
4.2.3 Philip Morris..........................................................................................28
4.2.4 Posten ..................................................................................................30
4.2.5 Systembolaget......................................................................................31
4.3 Interview with potential customers........................................................32
4.3.1 Company A...........................................................................................32
4.3.2 Company B...........................................................................................33
4.3.3 Company C ..........................................................................................34
4.3.4 Duracell ................................................................................................35
4.3.5 Gina Tricot............................................................................................36
4.3.6 Hemtex AB...........................................................................................37
4.3.7 Zeta ......................................................................................................38
4.3.8 Åhléns AB.............................................................................................39
4.4 Firms operating in a B2B market using B2C tools ................................41
4.4.1 Ahlsell ...................................................................................................41
4.4.2 Ramirent...............................................................................................42
5 Analysis................................................................................... 45
5.1 Why is there a dichotomy between B2B and B2C markets? ................45
5.2 How is brand awareness affecting B2B and B2C markets? .................48
5.3 Which marketing tools are preferable in a B2B market?.......................51
5.3.1 Relational Marketing.............................................................................51
5.3.2 Transactional marketing .......................................................................54
6 Conclusion .............................................................................. 56
6.1 Suggestions for ROL AB ......................................................................56
7 Discussion............................................................................... 59
7.1 Limitations ............................................................................................59
7.2 Suggestions for further studies.............................................................59
References ................................................................................... 60
Appendices
Appendix 1 Interview guide for existing/potential customers.
Appendix 2 Interview guide for B2B firms that use B2C marketing tools.
Appendix 3 The ROL process for partners.
Appendix 4 Approval of interview with Monica Gustafsson, Philip Morris
Figures
Figure 2.1 - Theoretical Framework ....................................................................5
Figure 2.2 - The value of brand awareness (Aaker, 1991, p.63) .........................9
Figure 3.1 - Degrees of structure in interview (Jacobsen, 2002) .......................19
Figure 3.2 - Data analyzing ...............................................................................20
Figure 4.1 - ROL AB’s customer segments (ROL group, 2006d) ......................23
1
1 Introduction
This section has the purpose to give the reader an introduction to the subject in matter. Further, the first
chapter contains the background and problem discussion that will introduce previous and contemporary re-
search within the field of B2B markets and marketing. The chapter will proceed with a problem specifica-
tion resulting in the purpose of the study.
1.1 Background
In early history it might have been enough with innovative products, great engineering, or
great salesmanship solely to close a business deal. However, today’s firms are facing a dif-
ferent situation with shorter product life cycles and the intensity of global competition,
which no longer provides the luxury of “build it and they will come” thinking. Therefore, in the
present day situation firms need to focus more on marketing, and how to communicate
with the customers. (Olivia, n.d.)
Within the marketing field there has always existed a perceived dichotomy between Busi-
ness-to-Business (B2B) and Business-to-Consumer (B2C) markets. This is a general percep-
tion in the theory of marketing. The aspects that differ between B2B markets and B2C
markets according to Coviello and Brodie (2001) are the influences, buyer decision proc-
esses, and buyer-seller relationships.
It is said that B2B markets must be handled differently than B2C markets because of their
uniqueness due to a derived demand, long purchase cycles, and a market structure that is
shifting and fragmented (Lilien, 1987). A distinction is made on B2B marketing by concen-
trating on the attributes of product complexity, and buying process complexity (Webster,
1978). This is also supported by Håkansson and Snehota (1995) who adds to the assump-
tion of the dichotomy by claiming that B2B marketing is driven by relationships, which are
to be considered different from those in B2C markets. This is supposedly due to a continu-
ity, complexity, symmetry, and informality of the relationship (Coviello and Brodie, 2001).
Although, the question stands: Is there in fact a difference between B2B and B2C markets
and why do firms need to separate the marketing approaches towards the two? Are the pre-
vious recognized differences between B2C and B2B marketing practices just a historical ar-
tifact rather than a current reality? (Coviello, Brodie, Danaher and Johnston, 2002)
1.2 Problem discussion
Even though there are some differences between B2B and B2C markets, the process of
making a purchase seem to be the same in both markets. The process starts with gathering
information about alternatives, processing that information, followed by learning about
available products and determining which alternative matches the perceived needs most
closely. Finally, the process ends by the action of purchasing. (Brown and Fern, 1984)
Thus, it is said that the complexity of the decision itself makes a difference no matter what
kind of environment a purchaser is in.
Wilson (2000) asks “Why should we assume that separate theories are necessary to explain the exchange
behavior adopted by the same individual when placed in different contexts?” (p.780–781). People in a
business environment are not suddenly transformed from a human being into a robot
2
when acting in a business situation, but are in fact still humans (Pickton and Broderick,
2001). This implies that these people should be affected not only by traditional B2B mar-
keting tools such as direct marketing and personal selling, but also B2C marketing tools
such as emotional advertising (Blombäck, 2005).
Shipley and Howard (1993) conclude that the context of B2B and B2C buying behavior is
not broadly similar, but that specific elements are comparable such as the impact of brand-
ing (cited in Ede, Nairin and Naudé, 2004). Can human beings be affected by typical B2C
marketing tools when making a business decision in a B2B market environment? Conse-
quently, how does this affect a firm’s methods to generate brand awareness?
According to Keller (2003, p.2) can a brand be defined as a “name, sign, symbol, design, or a
combination of them, intended to identify the goods and services of one seller or group of sellers and to differ-
entiate them from those of competition”. It is stated that a brand in a B2C market is important for
a firm as a source for sustainable competitive advantage and to capture consumer prefer-
ences and loyalty. Therefore, firms need to build awareness and knowledge about their
brand. (Kotler and Armstrong, 2004; Aaker and Biel, 1993) A question that arouse is
whether it is becoming equally important in the B2B market?
Recently the perceptions has changed and it is said that B2B and B2C markets have more
similarities than previously assumed and this might affect the decision about which market-
ing tools to implement. This could even change the old way of thinking which states that
B2C marketing tools cannot be effectively used in a B2B market. Given that fact, it is inter-
esting to see whether B2C marketing tools could be successfully used in a B2B market in
order to achieve brand awareness.
1.2.1 Problem specification
The Swedish firm ROL AB will be used as a case study for this thesis. It is one of the lead-
ing store interior suppliers in the world delivering innovative retail solutions to its custom-
ers. Presently, ROL AB is a firm relatively unknown in its home market of Sweden. ROL
AB supplies many strong branded firms such as Disney, Chanel and Diesel. Thus, its goods
and services are seen by many, but still with no recognition of its work. ROL AB won a
marketing award five years ago. It won this award even though ROL AB was not marketing
at the time, but because it managed to sell through excellent performance. ROL AB is per-
forming similarly presently but are continuously loosing market share due to a competition
intense situation. This is evidence that it was just recently that the market of store interior
experienced a change and being visible became crucial for the survival of a firm.
ROL AB’s goal is to be the market’s most respectable supplier of store interior and to be
the absolute number one in Europe. Given the new market situation, in order to achieve
these goals, ROL AB needs to start marketing itself and its brand remarkably more than it
does today. Using the research done for this thesis, a course of action will be suggested for
ROL AB in order to lead it in the right direction.
1.3 Purpose
The purpose of this thesis is to critically analyze the attitudes towards different B2B mar-
keting tools and the possible appropriateness of using B2C marketing tools in a B2B mar-
ket in order to achieve brand awareness.
3
1.4 Delimitation
This thesis will only focus on the store interior industry, since we do not have resources to
analyze more then one market. B2B markets differ a lot and it is therefore important to
evaluate each market carefully.
ROL AB is operating in several countries, with manufacturing operations, sales force and
service partners all over the world. However, due to lack of time and resources to include
more countries, this thesis will focus only on the Swedish market.
1.5 Definitions
B2C: Business-to-Consumer.
B2B: Business-to-Business.
B2B markets: Markets where the customers are firms and not private persons, hence dif-
ferent characteristics.
B2C markets: Markets where the customers are private persons.
B2B marketing tools: Marketing tools that are commonly used in B2B markets. For ex-
ample direct marketing (mail and e-mail) and personal selling (phone calls, personal meet-
ings and trade fairs).
B2C marketing tools: Marketing tools that are mostly used in B2C markets such as mass
communication (advertising).
1.6 Disposition
The following disposition outlines the structure of the thesis:
Chapter Title Content
1
Introduction
This section has the purpose to give the reader an introduction to the
subject in matter. Further, the first chapter contains the background
and problem discussion that will introduce previous and contempo-
rary research within the field of B2B markets and marketing. The
chapter will proceed with a problem specification resulting in the
purpose of the study.
2
Theoretical
Framework
The theoretical framework first introduces the reader to the typical
characteristics of a Business-to-Business market, incorporating a
comparison to the Business-to-Consumer market. Thereafter a de-
scription of business buying decision behavior will be outlined. The
purpose is to determine whether or not people in a business buying
situation can be influenced by a firm’s corporate image, thus the im-
portance of strong brand awareness. Consequently, the relevance of a
strong brand in a B2B context will be presented and the different
marketing tools to achieve higher brand awareness. Both business
and consumer marketing tools will be examined in order to create a
foundation for our empirical study.
4
3
Methodology
This section will provide the reader with an understanding for the
course of action taken by the authors of the thesis in order to achieve
a result of relevance. First, different research methods will be pre-
sented followed by a theory and motivation of how methods were cho-
sen. Secondly, the case study of the firm ROL AB will be ex-
plained. Finally, the methods of how to collect and analyze the data
will be discussed ending with discussing the validity and reliability of
the results.
4
Empirical
findings
This chapter presents the results from the empirical findings. It starts
with a presentation of ROL AB, the firm that is used as a case
study. It continues with interviews made with ROL AB’s potential
and existing customers. It is done in order to investigate their
thoughts regarding their supplier relationships, different marketing
tools, and some personal opinions about B2B markets. The chapter
ends with two interviews with firms that today use B2C marketing
tools in B2B markets.
5
Analysis
This section has the intention to connect presented theory with em-
pirical findings. The focus is on the research questions in order to
answer the purpose of the thesis and they will work as headings to
provide a structure. First it will be determined whether the perceived
dichotomy is true or not by an analysis of B2B and B2C markets,
and continues with the importance of brand awareness in B2B mar-
kets. Lastly, an analysis with an evaluation of different marketing
tools will be conducted with the purpose to find the sufficiency of rela-
tional marketing, and the appropriateness of using transactional
marketing.
6
Conclusion
In this section we will present the final conclusions which answer the
purpose. Further, the analysis resulted in a number of suggestions
regarding marketing strategies for ROL AB which will be presented
as a course of action to achieve higher brand awareness.
7
Discussion
This chapter discusses the outcome of the thesis. It presents some
limitations of the study which are important to be aware of in order
to get the correct interpretation of the result. The chapter continues
with some criticism of the chosen method and how it could have af-
fected the result. Furthermore, some areas for further studies are pre-
sented.
5
2 Theoretical Framework
In order to provide an appropriate overview of this thesis a model has been constructed (Figure 1). Purchases
of store interior takes place in a Business-to-Business market. The theory will therefore first introduce the
reader to the typical characteristics of such a market, incorporating a comparison to the Business-to-
Consumer market. Thereafter a description of business buying decision behavior will be outlined. The inten-
tion is to determine whether or not people in a business buying situation can be influenced by a firm’s corpo-
rate image, thus the importance of strong brand awareness. Consequently, the relevance of a strong brand in
a B2B context will be presented and the different marketing tools to achieve higher brand awareness. Both
business and consumer marketing tools will be examined in order to create a foundation for our empirical
study.
Figure 2.1 - Theoretical Framework
2.1 Principal B2B market theory
In order to facilitate for the reader, a short presentation to the B2B market will be intro-
duced so also the concept of B2B marketing. To create a better understanding these two
concepts will be compared to a more known concept within Marketing Principles i.e. B2C.
The main difference between B2B and B2C markets is that firms in B2B markets are buy-
ing from other firms instead of private consumers buying from firms, which is the case in
B2C markets (Ford, Berthon, Brown, Gadde, Håkansson, Naude, Ritter, and Snehota
2002).
Anderson and Narus (2004, p.4) define business markets as “firms, institutions, or governments
that acquire goods and services either for their own use, to incorporate into the products or services that they
produce, or for resale along with other products or services to other firms, institutions, or governments.”
Further assumed differences between consumer markets and business markets is that cus-
tomers in consumer markets mainly focus on aesthetics or taste whereas customers in a
business market are focusing more on functionality or performance (Anderson and Narus,
2004). Additionally, purchasing in B2B markets are mainly performed by professional buy-
ers. The relationships between buyers and sellers are very important and never exist in iso-
lation. Each transaction can take a very long time and often requires lots of money. Involv-
ing many people in most of the business market transactions, the supply chain is often both
long and complex. (Ford et al, 2002)
The Market
Principal B2B Market Theory Business-to-Consumer Market
Branding
Marketing
Communication
Branding
Marketing
Communication
6
2.1.1 B2B marketing
As marketing has evolved in the two markets it has broken up into two main sectors, logi-
cally B2B and B2C marketing. Most attention has been paid to B2C marketing, but in re-
cent years the importance of B2B marketing has also been recognized. Although, the per-
ception of what the B2B Marketing concept really is varies. One can find many different
views by reading a range of literature. Ford et al. (2002) for example argues that the most
important aspect in a B2B world is that of relationships, while Anderson and Narus (2004)
argue for the sake of value creation.
Traditionally, marketing has had its focus on the last step in the value chain, i.e. when the
private customer buys something. However, before the customer acquires the goods, it has
been refined and resold many times. These steps that are taken place before the goods ac-
tually reach the end consumer are called Business Marketing. Business marketing is the task
of selecting, developing and managing customer relationships for the advantage of both the
supplier and the customer, with regard to their respective skills, resources, strategies, objec-
tives and technologies. (Ford et al, 2002)
Marketing in a B2C world is one-way communication to a passive buyer whereas in a B2B
context the buyer is active and interactions take place. When it comes to pricing the B2B
marketer need to prove the difference between their product and the competitor’s product
to the buyer based on hard facts. Marketers in B2C can often rely solely on the brand, ad-
vertising and consumers’ emotions and the consumers buying decisions is dominated by
the initial purchase price. (Ford et al, 2002)
B2B marketing relies deeply on direct sales and marketers and sales people need to work
closely together. A good advertisement can single-handedly create a buyer in B2C, whereas
advertisement in B2B has a different role and due to the smaller amount of customers in
B2B, word-of-mouth has a greater effect than what it has in B2C. In B2B the brand tends
to have a smaller influence on the buyers whereas in B2C, the power of brands can be a
tremendous tool for influencing the buyers. (Ford et al, 2002)
2.1.2 Business buying behavior process
According to Webster and Wind (1972) the B2B decision process is “by which formal organi-
zations establish the need for purchased products and services and identify, evaluate and choose among alter-
native brands and suppliers” (cited in Fill, 2006, p.166). This is important to comprehend so
that the firm can deliver a suitable and effective marketing communication mix. A B2C
buying process is relatively simple, usually it is a one-step process with one or two indi-
viduals involved. Buyers in B2C are often driven by feelings and emotions and they do not
always have a great understanding of the products they buy. Whereas B2B buyers are more
specific oriented and they tend to have a good understanding of the products they want.
Additionally, B2C buyers are not facing any particular risk more than the loss of money
they pay for the product or service. (Ford et al., 2002; Anderson & Narus, 2004). Other
special characteristics associated with B2B buying behavior are for example larger and more
complex orders.
A purchase is made by a number of people which see the importance of the task, since it
concerns the whole firm, in addition its own career. It is further explained that the pur-
chase decision process concerns many, not only a few representatives. This group of peo-
ple is referred to as the decision making unit (DMU) and will differ in size depending on
7
the complexity of the problem being solved. In accordance with individual consumers,
every member of the DMU is active problem solvers and processes information so that
personal and organizational goals are accomplished. (Fill, 2006) This is an indication that
purchases on impulse are fairly rare in the business market context, and that the buying
process is more time consuming than what is known in the B2C market. Additionally
Blombäck (2005) notes that business buyers are active and want to interact, build relation-
ships and be a part of business networks rather than being passive which is more common
to see in a B2C context. Different people in the centre of decision making will have differ-
ent need of information depending on their responsibilities. Moreover they say that if one
looks behind these roles, the individual will have their own perceptions, expectations and
objectives based on their personalities and backgrounds. (Ford et al, 2002)
In the end of Fill’s (2006) theory discussion about the decision making process in a B2B
context he mentions something of real interest for this thesis. He brings up Simon’s (1976,
cited in Fill, 2006) view of the environment which claims that the environment is too com-
plex and dynamic for the decision maker to comprehend and create an objective view.
Hence the member of the DMU will rather rely on knowledge and experience as a basis of
there decision. Further Brand (1972) established that “It is clear that industrial purchasing deci-
sions are not solely governed by a rational review of the problem posed if ‘rational’ is to be interpreted as a
long fully considered view of all possible alternatives in order to obtain maximum company profitability”
(cited in Blombäck, 2005, p. 49).
Due to the outlined characteristics of the market and its buyers, B2B marketing theory
consequently has focused on rational information, long-term contracts and personal rela-
tionships. In turn this has shaped assumptions of how marketing communications should
be handled and what communication tools that is realistic in a B2B market.
It is suggested by Blombäck’s (2005) research that promotion in B2B markets is focused
upon “rational and economic issues”, and similarly Anderson and Narus (2004) states that
it is focused upon “on performance and functionality”. The research further claims that
personal sales are the leading sales tool. Nevertheless, marketing communications towards
business customers does not announce any limitations for what tools that is usable. Be-
cause, for effectively communicating messages one first learn how business buyers make
decisions. Once these processes are understood, it is possible to select a suitable message,
media, and tools to reach these vital market segments. (Clow & Baack, 2002, cited in
Blombäck, 2005)
2.2 Branding
A brand is a “name, sign, symbol, design, or a combination of them, intended to identify the goods and
services of one seller or group of sellers and to differentiate them from those of competition” (Keller, 2003,
p.2). According to Kotler and Armstrong (2004) a brand outlasts the firms’ specific prod-
ucts and facilities and is a powerful asset that must be carefully developed and managed.
They further claim that a brand can deliver up to four levels of meaning; attributes, values,
benefits and personality.
The brand is important for the firm as a source for sustainable competitive advantage.
Strong brands are often one of the firm's most valuable assets, thus managing and develop-
ing them is of crucial importance for the long-term profitability of a company (Keller
2003). Strong brands reside in the minds of consumers and have power to capture con-
sumer preferences and loyalty (Kotler and Armstrong, 2004).
8
2.2.1 Brand equity
An important area for firms is brand equity, which is the positive differential effect that
knowing the brand name has on consumer response to the product or service (Kotler and
Armstrong, 2004). Keller (2003, p.60) gives a formal definition of Customer-based brand
equity as “the differential effect that brand knowledge has on consumer response to the marketing of that
brand”. He further discuss that brand equity occurs when the customer has a high level of
awareness and familiarity with the brand and that it holds some strong, unique and favor-
able associations in memory.
There are several aspects that need to be fulfilled in order to reach brand equity. One of
them is brand awareness.
2.2.2 Brand awareness
According to Kapferer (1992, p.88) “a brand without awareness is but a blob on a product – voice-
less and devoid of meaning”
Firms need to build awareness and knowledge about their brand in order for it to be pow-
erful and increase customer loyalty. People must be familiar with the brand and must also
feel good about it. (Aaker and Biel, 1993)
The concept of brand awareness is a common measure of marketing communication effec-
tiveness and is related to the strength of the brand presence in the mind of the consumer.
Brand awareness is reflected by consumer’s ability to identify and remember the brand un-
der different conditions ranging from recognition (i.e. have the customer been exposed to this
brand before), to recall (i.e. what brands of this product class can the customer remember),
to “top of the mind” (i.e. whether the brand is the first to spring to mind when mentioning a
certain category of products) and finally to dominance (i.e. the brand is the only one in that
product class). (Aaker, 1996)
The power of a brand lies in what resides in the minds of customers. The challenge for
marketers in building a strong brand is ensuring that customers have the right type of ex-
periences with products and services and their accompanying marketing programs so that
the desired thoughts, feelings, images, beliefs, perceptions, opinions, and so one become
linked to the brand (Keller 2003). This is further highlighted by Aaker (1991) when he
claims that brand awareness is the potential buyer’s ability to recall and/or recognize that
the brand is a member of a certain product category and that there is a link between the
brand and the product class. There are two key dimensions that distinguish brand aware-
ness, depth and breadth. The depth of brand awareness refers to how easy it is for custom-
ers to recall or recognize the brand. Breadth of brand awareness refers to the range of con-
sumptions and purchase situations where the brands come to the customer’s mind. A
highly salient brand is a brand with both breadth and depth of brand awareness. Not only
has the brand to be “top of mind”, but also do so at the right place at the right time. Many
products and brands are unnoticed and forgotten in possible usage situations and increas-
ing the salience of the brand in those settings can be a help in driving consumption and in-
crease sales volume. (Keller, 2001) Aaker (1996) further states that awareness reflects both
the salience and the knowledge of the brand in the customers’ minds. Salience is about the
depth of brand awareness, recognition and recall.
Aaker (1991) then explains how awareness works to help the brand. According to him
brand awareness creates value in the following four ways.
9
Figure 2.2 - The value of brand awareness (Aaker, 1991, p.63)
1. The brand recognition is the first and most basic step in the communication task.
In most cases it is no use and a waste of time to attempt to communicate a brand’s
attributes until a name is established with which the attributes can be associated.
2. Brand recognition provides the brand with a sense of familiarity, and people tend
to like the familiar. In some cases it is the familiarity that drives the buying behav-
ior.
3. Awareness of the brand name can be a signal of commitment, presence, and sub-
stance, attributes which can be important to industrial buyers as well as consumer
buyers.
4. One of the first things to do in the buying process is often to select a group of
brands to be considered. Usually, the buyer will not be exposed to several brand
names during the process, except from happenstance. The first supplier that comes
to customer’s mind will then have an advantage.
2.2.3 B2B branding
The increased competition in many markets today puts a lot of pressure on companies to
differentiate themselves in order to be competitive. One way to do that is through brand-
ing. Marketing theories often state that companies with a strong brand often get a competi-
tive advantage in comparison with those companies with weaker brands.
According to Anderson and Narus (2004) business market managers are always striving to
establish and build their brands. They further state that the managers believe that they, by
adapting concepts and practices of their counterparts in the consumer markets to the B2B
settings, can build brand equity and also benefit from it.
In order to build brands in business markets, Keller (cited in Anderson and Narus, 2004,
p.159) propose some guidelines.
• Create a well-defined brand hierarchy by adopting a corporate or family branding
strategy.
• Link non-product-related image associations (i.e. social benefits as “peace of mind”
or “ease of doing business”).
Brand Awareness
1. Anchor to which
other associations can
be attached
2. Familiarity ? Liking
3. Signal of Substance/
Commitment
4. Brand to be conside-
red
10
• Use a full range of marketing communication options.
• Leverage equity of other companies who are customers.
• Segment markets cautiously and develop tailor-made branding and marketing pro-
grams.
2.3 Marketing communication
Marketing communication is of significant importance in both B2B and B2C markets. It is
essential for all firms to communicate its message to customers in order to increase their
sale. To be able to communicate efficiently with the customers, firms need to decide which
marketing communication concepts they will use.
Research made by Coviello and Brodie (2001), shows that B2B firms are more relational in
their approach to the market, whereas consumer firms are somewhat more transactional.
However, the overall patterns of marketing practice are similar across firm type. Further-
more research has shown that both the transactional and the relational paradigms are rele-
vant in contemporary marketing, regardless of what type of market that is served (Coviello
and Brodie, 2001).
Grönroos (1997) confirms that it is the marketing mix management paradigm, with the 4
P’s, that has dominated the thought of marketing since it was first introduced in the 1960s.
According to Kotler et al. (2005), the four P’s include:
• Product: the actual product or service being produced.
• Price: the price that is charged and terms associated with the sale of the product.
• Promotion: promotion and other communication activities associated with marketing
the product.
• Place: the distribution and the logistics function that is needed to be considered in
making the service or product available.
However, in recent years this paradigm has begun to lose its position and new approaches
have emerged in marketing research. One of the new leading approaches that have entered
into the marketing literature is an approach called relationship marketing. (Grönroos, 1997)
Another marketing researcher named Frederick Webster (1992, p.14) also came up with the
conclusion in his analysis of the developments in businesses and marketing that “there has
been a shift from a transaction to a relationship focus”.
Furthermore, Coviello et al. (2002) argues that it is appropriate to broaden the understand-
ing of relational and transactional exchange and beyond the view of a two-way classifica-
tion. Therefore, a more pluralistic conceptualization of marketing is needed. Coviello, Bro-
die and Munro, 1997) developed a framework that does not see relational and transactional
marketing as two separate paradigms. Their framework suggests that there are two general
marketing perspectives, comprising four distinct types of marketing, specifically:
• Transactional marketing
- Transaction marketing: that is to managing the marketing mix, i.e. the 4Ps, in
order to attract and satisfy customers.
11
• Relational marketing
- Database marketing: where technology-based tools are used in order to target
and maintain customers.
- Interaction marketing: includes the development of interpersonal relationships
in order to create cooperative interactions between sellers and buyers for
reciprocal benefits.
- Network marketing: that is about the development of relationships between
the firms within the network in order to be able to coordinate activities
among several parties for mutual benefit, exchange of resources and so
forth.
These four marketing aspects will be further explained below, and connected to specific
marketing tools.
2.3.1 Transaction marketing
The traditional way of marketing is also referred to as transaction marketing or the market-
ing-mix management. The reason for this is due to the focus on managing the marketing
mix variables of the 4 P’s, i.e. Product, Price, Place and Promotion, in order to make a
transaction, i.e. attract the customers. This approach is involving discrete economic trans-
actions, generally treated in isolation at arms-length and in a formal and impersonal proc-
ess. (Coviello, Brodie and Munro, 2000)
According to Christopher et al. (2000), transactional marketing is focused on a single sale in
the short term. They further state that transaction marketing is oriented towards product
features and has little emphasis on customer service involving limited customer commit-
ment and moderate customer contact. In contrast to relationship marketing, the view of
quality is primarily a concern of production.
Grönroos (1997), states that there is not much more than the core product, and sometimes
the firm’s brand, that keeps the customer attached to the seller in transaction marketing.
Advertising
Advertising is an important part in transaction marketing. This marketing tool is mostly
used in the B2C context (Kotler, Wong, Saunders and Armstrong, 2002). It is defined as
any paid form of impersonal one-way promotion of goods and services by a firm, and the
aim is to deliver the message to customers in order to make an offer more attractive to
them (Tellis, 2004). It includes radio, print media, television and display marketing. This is a
useful marketing tool because it can reach many people at different locations. It enables the
firm to repeat its message many times, which is important to do in order for the marketing
to be efficient. Advertising could be useful when a firm wants to build up an image for a
product or service. However, it is important to know that this is a channel with no personal
contact or feedback. (Kotler et al, 2002)
2.3.2 Relational marketing
According to Grönroos (1996) relationship marketing has not been used as a term before
late 1980s. Grönroos further defines in his article “Relationship Marketing: Strategic and
tactical implication” that “Relationship marketing is to identify and establish, maintain, and enhance
12
relationships with customers and other stakeholders, at a profit, so that the objectives of all parties involved
are met. This is done by a mutual exchange and fulfillment of promises” (p. 7).
Another relationship marketing definition is made by Gummesson (2002) and according to
him relationship marketing is marketing that has its focus on relationships, networks and
interactions. The concept of relationship marketing has emerged within the fields of indus-
trial marketing and service marketing (Grönroos, 1997).
Grönroos (1996) further states that there are three important strategic issues of the typical
relationship marketing approach.
1. defining the firm as a service business.
2. managing the firm from a process management perspective.
3. developing partnerships and networks.
Additionally, he explains three typical tactical elements of a relationship marketing strategy;
seeking direct contacts with customers, building a database, and developing a customer-
oriented service system.
Relationship marketing is based on a belief of trusting cooperation with known customers.
The firm has to; in order to pursue a relationship marketing strategy, create a database con-
sisting of customer information so that, for example, sales contacts and advertising cam-
paigns can be made as relationship-oriented as possible. (Grönroos, 1996)
In contrast to transaction marketing, relationship marketing focuses on customer relation
over a long term period. Another difference between the two approaches is that relation-
ship marketing has an orientation on product benefits and emphasizes high customer ser-
vice, customer commitment, and customer contact. (Christopher et al., 2000). The view of
quality is the concern of all. This is further confirmed by Grönroos (1997, p.330) as he says
that “In relationship marketing the functional quality dimension grows in importance and often becomes the
dominating one”.
Another dissimilarity that Grönroos (1997) discusses is that in transaction marketing it is
through the core product that the customers is attach to the supplier, whereas in relation-
ship marketing the firm has created more value for its customers than that provided by the
core product alone. These firms develop more and tighter ties with its customers, e.g.
through technology, information, and knowledge related ties. In relationship marketing the
view of price differs from transaction marketing. Price is not unimportant but “relationship
marketing makes customers less price sensitive” (Grönroos, 1997, p.330).
According to Coviello et al. (1997) relational marketing can be divided into three different
types of marketing, which will be described and connected to different marketing tools be-
low.
2.3.2.1 Database marketing
Database marketing is used both in B2B and B2C markets. It uses the information that dif-
ferent databases provide in order to employ direct marketing to communicate with cus-
tomers. The main reason for firms to use databases is to get information about individual
customers, in order to create and develop relationships. This type of marketing is also a
cost-effective way to stay in touch with the customers. (Drozdenko and Drake, 2002) In-
formation and technology-based tools is used to target and maintain customers (Coviello et
13
al, 2002). Database marketing can be defined as “one-to-one” marketing since the ad-
vanced technology make it possible for firms to develop individual relationships with cus-
tomers. It uses individual addressable and interactive media in order to reach the customer.
(Coviello et al, 1997) A database is a file including information about potential customers.
Firms use it to gain a better understanding of the customers and try to create some kind of
relationship with them, often through direct marketing (Drozdenko and Drake, 2002). It is
important that at least some part of the communication from firms to their customers is di-
rected to named consumers (Stone, Bond and Foss, 2004).
This marketing type is according to Coviello et al, (1997) more “to” the customer than
“with” the customer, and the formal communication is driven and managed by the firm.
The relationship is distant and do not involve personal interaction, and the focus is more
on information gathered through technology-based tools. Information from internet and
databases are examples of information technology, which help firms to create a relationship
with its customers. The information that the firms acquire helps them to make the mass
marketing more personal and thereby creates a type of relationship with the customers.
(Coviello et al, 1997)
Coviello et al. (1997) further states that the main objective with database marketing is to
build up a long-term relationship with the customer, and not see the marketing effort as a
short time investment. The firms want to differentiate messages to the customers based on
their specific characteristics and preferences.
Direct marketing
Direct marketing is the preferred marketing tool in database marketing. It is direct commu-
nication with specific targeted individual customers through telephone, mail, fax, e-mail,
and internet, with the purpose to create lasting customer relationships. This is a tool that is
non-public, since the message is normally addressed to a specific customer. It can be cus-
tomized in order to attract a specific customer, and build a one to one customer relation-
ship. It is an impersonal tool with no personal contact. Kotler et al (2002) does not define
this marketing tool as being particularly used in either a B2B or a B2C context, and we
therefore assume that this marketing tool is used in both contexts. (Kotler et al, 2002)
Important factors that are focused upon are concentration, personalization, and immedi-
acy. The advantage of concentration is that a firm can focus and concentrate its marketing
efforts on segmented markets and customers in order to make the marketing efficient. Per-
sonalization is another cornerstone since a firm can address the marketing to specific cus-
tomers and thereby make the marketing specified. Immediacy is important due to the fact
that direct marketing can establish a desire and often also lead to action. (Nash, 2000)
2.3.2.2 Interaction marketing
Interaction marketing is mainly used in B2B markets, and defined as face-to-face interac-
tion within relationships (Coviello et al, 1997). It includes interpersonal relationships which
create cooperative interaction between buyers and sellers of equal benefit (Coviello et al,
2002). Personal selling through personal meetings and phone calls are preferred marketing
tools in this type of marketing. The focus is on persons instead of the company, and im-
portant factors are personal contacts, bargaining, information exchange and establishment
of individual relationships. Coviello et al (1997) defines interaction marketing as a process
that engages individuals, who take initiatives to complex relationships and handle personal
interactions. These relationships are based on trust, dependence, commitment, adaptation
14
and satisfaction between the persons involved in the interaction. Well functioning relation-
ships are the main objective in this type of marketing. These relationships can be both
formal and informal, with the actors being equally adaptive and active. (Coviello and Bro-
die, 2001)
Coviello et al (1997) further states that interaction marketing is truly “with” the customer,
since the individuals and organizations invest resources to develop commonly valuable in-
terpersonal relationships. The focus is on negotiation and joint planning, and involves
value creation for all actors included in the process.
Personal selling
Personal selling is a marketing tool that is mainly used in B2B markets, and especially in in-
teraction marketing and network marketing. In interaction marketing the focus is on the
personal communication channel, which is when two or more people who directly com-
municate with each other. This could be done face-to-face, by telephone and mail, and also
over the internet. It is an effective way to communicate the marketing messages, since it al-
low for personal discussion and feedback. (Kotler et al, 2002)
2.3.2.3 Network marketing
Network marketing is mainly used in B2B markets, and personal selling including trade
fairs and sale presentations are the preferred marketing tools in this type of marketing. It
develops relationships between firms and coordinate activities among several parties for
common benefit, resource exchange, market access and trust. (Coviello et al, 2002) It fo-
cuses on multiple network relationships between firms and has a significant interest in the
“connectedness” of these relationships. The coordination of the network is through inter-
action between firms within the network, and relationships are established between firms.
(Coviello et al, 1997) A network can be defined as a set of different connected relationships
between firms. The relationships are established through interaction marketing, but focus
more on the network as a whole rather then on one specific interaction and relationship.
According to Coviello et al (1997) are creation, utilization and maintenance important parts
of the network. Grönroos (1997) states that the different interactions and exchanges within
the network have impact on the firms’ position in the network.
Each firm in a network has both direct and indirect relationships with customers and sup-
pliers, which can be both formal and informal. These relationships are part of a larger net-
work and can be both interpersonal and impersonal, which mean both close and distant.
The level of power, dependence, and communication differs between different relation-
ships. The networks are constructed through social relationships overtime, and has there-
fore a strategic orientation. (Coviello and Brodie, 2001)
Personal selling
Personal selling is the marketing tool that best fits with this kind of marketing. It is a tool
that is mostly used in a B2B context and especially in markets with fewer and larger sellers.
The firm’s sales force does personal presentation in order to marketing and sell products,
and also to build customer relationships. This marketing tool includes trade fairs, trade
shows, incentive programs and sales presentations. Personal selling is important when
building up customers’ preferences, convictions and actions. It involves personal interac-
tion, and can thereby make adjustments to the customers’ specific characteristics. The main
objective is to build a long term relationship with the customer. It is the firms’ most expen-
sive promotion tool, and requires a good and well educated sales force. (Kotler et al, 2002)
15
2.4 Research questions
The research questions will be used for discussion in the analysis in order to come to a
conclusion of our purpose. The different questions are structured as headings in the analy-
sis which in turn is connected to the theoretical framework.
• Why is there a dichotomy between B2B and B2C markets?
- What differences in behavior are there in B2B and B2C markets?
- Is there a need to separate the marketing approaches towards the different
markets?
• How is brand awareness affecting B2B and B2C markets?
- How important is brand awareness in a B2B market compared to a B2C
market?
- How can or does a brand affect a person in a business decision situation?
• Which marketing tools are preferable in a B2B market?
- Which marketing tools are most efficient to use in B2B markets, especially
in the area of store interiors?
- In what way, if possible, can professional buyers be influenced when mak-
ing a purchase decision by marketing tools they are exposed to outside of
work?
16
3 Methodology
This section will provide the reader with an understanding for the course of action taken by the authors in
order to achieve a result of relevance. First, different research methods will be presented followed by a theory
and motivation of how methods were chosen. Secondly, the case study of the firm ROL AB will be ex-
plained. Finally, the methods of how to collect and analyze the data will be discussed ending with discussing
the validity and reliability of the results.
3.1 Research methods
For the empirical findings a number of qualitative interviews will be conducted. The inter-
views will be carried through with ROL AB and some of its existing customers as well as
some of its potential customers. The interview will focus on how these customer’s supplier
relationships are structured, how they perceive B2B markets, different marketing tools and
how they prefer to be approached. Additionally, two B2B firms that today use B2C market-
ing tools will be interviewed in order to understand why they have chosen to use these
tools and what they gain from it.
3.1.1 Conditions for choosing method
The decision of what kind of method to use depends on several conditions, i.e. the course
of action, the problem statement, the intention of the purpose (not discussed), prerequi-
sites, and resources (Halvorsen, 1992).
3.1.1.1 The course of action
Inductive measurement is when the reality seems ambiguous. Reality is therefore met with-
out any clear hypothesis, hardly without any conditions, and with a vague problem state-
ment. The purpose is to not test the theories through hypothesis but to evolve an overall
picture of the phenomena. The arrangement is flexible and the researcher does not in ad-
vance get restricted to a specific method of data collection. The deductive course of action
on the other hand has the purpose of assessing the trustworthiness in theories through the
testing of hypothesis. This requires a precise problem statement and to know what is mean-
ingful to investigate and collect information about. An inductive course of action is often
associated with qualitative methods which for example concerns the participation of an ob-
servation, whereas the deductive course of action are often associated with quantitative
methods which for example concerns surveys. The course of action is dependent on
whether to use inductive or deductive measurements. (Halvorsen, 1992) This thesis will
have an inductive course of action and have the underlying principle to expound theories
regarding the existing dichotomy between the two markets (B2B and B2C). Further the
marketing tools attached to them will be discussed.
3.1.1.2 Problem statement
A researcher should not decide upon research methods until the problem statement is cre-
ated, since as stated, the inductive course of action does not need a precise problem state-
ment. Although this thesis will use the inductive course of action, a clear as possible prob-
lem has been stated. This has been done in order to receive results that are relevant for the
study. Halvorsen (1992) suggest that one should ask questions like; which methods will
provide us with data that is of highest relevance for our problem statement? Often it is in
17
favor to combine several methods of data collection, not least because most social phe-
nomena both have quantitative and qualitative attributes.
3.1.1.3 Prerequisites and resources
The choice of research method cannot only be based on the course of action, the problem
statement and the intention of the purpose. The most suitable methods are not always pos-
sible because of restraints when it comes to knowledge, time and money; hence, a second
best alternative might be adapted. (Halvorsen, 1992) This aspect is to be seen as highly
relevant for this case study. Time is scarce and money is limited if even existing, therefore
the thesis will be dependent on the authors’ knowledge and interpreting ability.
3.1.2 Quantitative vs. Qualitative
Research methods are tools to achieve the goals of the surveys for a specific research, i.e. a
way to solve a problem and reach new knowledge (Tranoy, 1986). According to Riley, in
Holme and Solvang (1996, p.13), the concept of method is specified as “Social scientific
method concerns both the organizing and interpretation of information that enable us to gain better compre-
hension about the society”. Halvorsen (1992) elaborates in the subject by adding that the
method is more than just a research technique. He claims that it is the whole science of
how you collect, organize, work, analyze, and interpret the social facts in such a systematic
way that others can understand what is being put across.
Within the field of research methods two methodical ways of conducting a research are de-
fined; qualitative and quantitative (Holme and Solvang, 1996). Qualitative methods are more
fundamentally descriptive and focus on the processes and facts that will enable you to
comprehend the meaning of what is going on (Denzin and Lincoln, 2000; Holme and Sol-
vang, 1996; Gillham, 2001). The goal with a qualitative approach is to find unique and char-
acteristic details about the subject that is analyzed and not trying to generalize as the goal is
in a quantitative approach. It concerns the creation of examples and through them try to
draw conclusions. A qualitative research can be conducted in several different ways. How-
ever, it is commonly done through in-depth interviews and observations. (Svenning, 2003)
The advantage with using a qualitative research method is that it provides the researcher
with a complete picture and coherence of the field of interest. This approach creates a bet-
ter view since the interviews provides in-depth information about the studied subjects.
(Holme and Solvang (1996)
Quantitative methods are those which involve counting, measuring, and analysis of casual re-
lationships between variables; trying to explain the phenomenon (Denzin and Lincoln,
2000; Holme and Solvang, 1996; Gillham, 2001). The researches own ideas about how to
interpret the data and which variables to use will highly affect the analyzed phenomenon
(Alvesson and Sköldberg, 1994). The Quantitative research is statistical and require inter-
pretation in order to gain meaning, hence Gillhams (2001, p.10) statement “Facts do not
speak for themselves –someone has to speak for them.”
3.1.2.1 Method chosen
As stated earlier, the choice of which method to use is dependent on the purpose of the
thesis (Tranøy, 1986). The purpose of this thesis is to critically analyze the attitudes towards
different B2B marketing tools and the possible appropriateness of using B2C marketing
tools in a B2B market in order to achieve brand awareness. A qualitative method is there-
18
fore found to be more appropriate since it will create a better clarity of the somewhat ob-
scure phenomena. The use of qualitative research will enhance the interpretation and the
understanding of the topic. (Jacobsen, 2002) In order for us to be able to answer our pur-
pose we need to go on a deeper level in the analysis of the firms and therefore we have
chosen a qualitative approach.
Not to forget, there are also some disadvantages that one has to keep in mind when using a
qualitative approach. The analysis of the gathered data will be biased by the writers own
experience and knowledge (Holme and Solvang, 1996). There can also be an interpretation
problem when dealing with interviews since words are more difficult to analyze than fig-
ures. It can be hard to understand and grasp the exact meaning that the interviewed people
want to communicate (Svenning, 2003).
3.2 Case study
A case study has been chosen for this thesis in order to obtain some of the empirical data.
We have chosen to make a case study of the B2B firm ROL AB and its customers in order
to analyze attitudes towards different B2B marketing tools and the possible appropriateness
of using B2C marketing tools in a B2B market in order to achieve brand awareness.
This kind of method is a general strategy that has it attention on complex interactions of
multiple data-collection methods. It examines a real-life event in its natural situation and
the goal is to capture both a phenomenon and its context. Case studies have different goals
in different situations, such as finding explanations, exploring a topic, or just describing
what is going on. (David, 2006)
There are several reasons for choosing a case study approach. First of all, a case study is
the study of a specific case and its complexity in order to understand its activities within
important circumstances. It looks for details of the interaction with its context. The pur-
pose of studying a case is to maximize the learning from it. One can choose to have one or
several case studies. (Stake, 1995) However, due to limited time for writing this thesis and
by a great opportunity to cooperate with a firm, ROL AB, our focus has been on solely
one case study.
A case study suits well for our purpose since it is an in-depth study of a specific case in or-
der to get a deeper understanding of the particular subject of the case. It can include obser-
vations, field studies and interviews. (Hamel, Dufour and Fortin, 1993) This case study will
be undertaken in order to answer our specific research questions. We seek different evi-
dence for the case and we are trying to gain the best possible answer to the research ques-
tions in regards to the purpose. The main objective is to create new knowledge through the
evidence and the research materials which then have to be analyzed in order to make sense.
(Gillham, 2001)
3.3 Interview selection
This thesis delimits its research to the store interior industry in Sweden. In regards to the
case study of ROL AB, a supplier of store interior, existing and potential customers of the
firm will be interviewed. The existing customers were contacted by us through ROL AB.
Potential customers were suggestions from ROL AB but contacted straight by us without
ROL AB’s involvement. The interviewed customers were chosen from the different areas
in order to receive a spread of the different kind of businesses, e.g. convenience retail,
19
health and beauty, retail stores. Two additionally firms was interviewed which successfully
conduct B2C marketing in a B2B context. These will have the purpose to provide a profes-
sional opinion in the matter of the thesis. All the contacted firms were interested and were
content to participate. The limited time for the writing and the recurrence of answers are
reasons why 15 firms were finally interviewed for the report.
3.4 Data collection
Two types of data were collected for this thesis; primary and secondary data. The collection
of primary data can be done in various ways such as questionnaires and surveys or as in this
case, by interviews. The secondary data is already existing data that was gathered for other
intentions than for this specific thesis. It is collected by numerous sources such as academic
reports, books, statistics et cetera.
3.4.1 Primary data
One part of the primary data was collected during three face-to-face interviews with Lars-
Owe Kron at ROL AB. The purpose with these different interviews was, for the first one
to do a preliminary study and to get to know the company. The second interview focused
on ROL AB’s marketing strategies, and during the third interview the same questions that
were used for the potential and existing customers were discussed. It was open interviews
that took approximately two hours each. Furthermore individual open interviews was con-
ducted with people in charge of purchasing decisions at some of the existing and potential
customers of ROL AB. Additionally, interviews with two representatives of firms that have
successfully exploited B2C marketing tools in a B2B market was conducted. The collection
of data was in the form of words, sentences and stories told by that person. The interview
could either have been conducted face-to-face or as in this case by telephone. The inter-
views were recorded and thereafter printed and analyzed. Each interview took approxi-
mately 20 minutes. The reason for choosing a telephone interview is to keep costs of travel
down, but also access information quicker, thus more efficiency.
The interviews can be more or less open as shown in figure 3.1, this depending on the re-
sult that wants to be achieved (Jacobsen, 2002). The rationale was to have the interview
semi-structured with a guide presenting the theme and in what order. The answers were
completely opened in order for the person interviewed to answer without any frame.
Figure 3.1 - Degrees of structure in interview (Jacobsen, 2002)
20
3.4.2 Secondary data
The secondary data is found mainly in the theoretical framework. This thesis has used aca-
demic reports, books and Internet sources to find suitable information concerning theories
and concepts presented. Search engines such as Google Scholar, E-journals, and databases
such as DiVA have been used. Books and academic reports used are listed in the reference
list and throughout the report.
3.5 Data Analyzing
In the analysis of the collected data the authors have compared the theories with the em-
pirical findings. The research questions are structured as headings in the analysis which in
turn is connected to the theoretical framework in order to facilitate for the reader to follow.
Each section will cover and analyze the different research questions and the purpose of the
thesis will pass through the analysis as a consistent structure. This information will then be
compiled in the conclusion to give an overall view and result of the thesis.
Figure 3.2 - Data analyzing
3.5.1 Validity and reliability
When working with empirical data and in this case personal interviews, the validity and reli-
ability of the research are important aspects to discuss. The problem with validity is the
same whether one conduct a qualitative or a quantitative research. According to Svenning
(2003) the problem with validity is smaller in qualitative research because that kind of re-
search stays closer to the empirical world. Validity concerns the fact that the collected and
measured data actually is the data that the researcher is expected to measure. It is also
about the connection between the theories and the empirical findings, i.e. if the collected
data are relevant for the study. The collected data has to be in accordance with the purpose
of the study and the theories. It also has to match the reality so that the researcher is able
to make the right interpretations of the data. (Svenning, 2003)
The reliability problem differs between the qualitative and the quantitative research ap-
proach. Reliability of the research has to do with the trustworthiness and the interpreta-
tions of the collected data. The result is reliable if a repeated research with the same meth-
21
ods and purpose would yield the same result again. (Patel and Tebelius, 1987) Reliability is
more important when doing a quantitative analysis than a qualitative analysis. This is due to
that quantitative analysis tries to generalize whereas qualitative provides examples. (Sven-
ning, 2003)
There are many aspects that have to be considered when dealing with interviews and the
researcher has to be aware of possible problems and how to reduce them. There are many
factors that can affect the interview and have an impact on the reliability of the research,
e.g. the respondent, the interviewer and other circumstances. It is also easy that misunder-
standings will occur. (Svenning, 2003)
In order to try to minimize possible misunderstandings all the interviews have been re-
corded in order to capture the complete conversation with all words, phrases and quotes.
The interviews in the empirical findings sections have been written word by word in accor-
dance with what the people have answered. They have not been summarized, construed or
reinterpreted by the authors. Additionally, to minimize and avoid possible misunderstand-
ings and misinterpretations in the empirical findings, a written form of the interviews has
been sent back to the interviewees by e-mail for approval. These measurements have con-
tributed to more validity and reliability to the thesis work.
22
4 Empirical Findings
This chapter presents the results from the empirical findings. It starts with a presentation of ROL AB, the
firm that is used as a case study. It continues with interviews made with ROL AB’s potential and existing
customers. It is done in order to investigate their thoughts regarding their supplier relationships, different
marketing tools, and some personal opinions about B2B markets. The chapter ends with two interviews
with firms that today use B2C marketing tools in B2B markets.
4.1 Case study- ROL AB
The following chapters are written in order to give the reader some facts about ROL AB, its customers and
its products.
ROL was from the beginning an abbreviation for Robert Olle Larsson, a father-and-son
owned firm. ROL AB has had a fast growing development. The firm started off by being a
product supplier to the convenience store industry. But the time for internationalization
was short; already in 1986 they won their first international turnkey supplier tender. As Kaj
Hjelm acquired the firm it has developed into a supplier of complete and complex solu-
tions to the retail industry - integrating design, manufacturing, sales, and installation func-
tions to meet the global requirements of the largest retail customers in existence today.
(ROL group, 2006c) In 1985 ROL AB was a small firm with an annual turnover of EUR 2
million and had only 11 employees. Today, ROL AB has an annual turnover of EUR 100
million and over 500 employees worldwide. (L-O Kron, personal communication, 2006-09-
14)
4.1.1 The company
ROL AB is a global manufacturing firm with headquarters and main production located in
Jönköping. The firm designs, develops, produces, and delivers a great assortment of inno-
vative retail solutions to leading retail stores across the world. ROL AB undertakes more
than 5000 installations across all continents every year. The firm is one of the leading store
fixture suppliers, providing store interior solutions in the world. It comprises of a number
of solid operating companies, where each of these are established in its local market. (L-O
Kron, personal communication, 2006-09-14)
The ROL group today is structured as follows:
• 8 manufacturing operations located in Europe, Asia, and South America.
• 13 sales operations in; Europe, North America, South America, Middle East, and
Asia
• 22 service partners located in Europe, North America, South America, Middle East,
Asia, and Australia. (ROL group, 2006a)
Its business concept is: ROL offers their partners access to concept and design skills, up to date produc-
tions facilities and enlarged business relations through a close co-operation. (L-O Kron, personal com-
munication, 2006-09-14)
23
ROL AB – Innovative Retail Solutions. Its brand communicates that its key strengths are that
is takes total responsibility; a “one-stop-shop” for the retail industry. Further it is a turnkey
supplier and it has everything under one roof. Thus, ROL AB can provide its customers
with a quick response to any request and can always promise to deliver and install a com-
plete and ready-to-use product. Lastly, ROL AB states another key strength is that it is a
global supplier with local knowledge, and that it knows how to do businesses across board-
ers. The combination of global expertise and local knowledge is a winning concept. (ROL
group, 2006b)
Its vision is to be the most admired supplier of interior design solutions on the market and
the absolute number one in Europe, with hope of a turnover of 2,5 billion SEK. This in
order to be able to achieve greater production volumes, thus a lower marginal cost. (L-O
Kron, personal communication, 2006-09-14)
4.1.2 Customers
ROL AB is a B2B firm working with customers who are in the B2C market. Its mission has
always been to maximize its client’s retail performance. The firm believes that more than 60
percent of purchase decisions are made only a couple of meters from where a product is
situated. ROL AB claims that well designed in-store equipment is vital for the successful
sale of a product. This is an argument that ROL AB is using when trying to attract, and
gain new customers. (L-O Kron, personal communication, 2006-09-14)
ROL AB is working with retail customers in several different areas:
Convenience retail
BP, Shell, Q8, Statoil, Esso, Caltex, Hemmakväll, 7-
Eleven, Pressbyrån
Miscellany
Posten, University libraries, i.e. Library of Jönköping Uni-
versity, Design House Stockholm, Ittala, IKEA, Philip Mor-
ris
Airports and Port terminals HK, Heathrow, JFK, Los Angeles
International chains/fashion
MaxMara, Diesel, Disney Store, NAF NAF, Craft, Sport
2000, LAGERFELD, Chevignon, Morgan
Pharmacies All over Sweden
Retail Stores ICA, Coop, Systembolaget
Health and Beauty Chanel, No.7, Boots
Telecom/Electronics Telenor, PC World/PC City
Figure 4.1 - ROL AB’s customer segments (ROL group, 2006d)
An example of one of ROL AB’s major order in recent year was when Posten, the Swedish
government owned mail service, where to change its concept and needed new store fixtures
to all their stores in Sweden. ROL AB was one of many suppliers who submitted a tender.
In the end, ROL AB was the winner due to its reliable offering of in-time delivery. ROL
AB did 4000 installations within 10 weeks in time, all of them very successful. (L-O Kron,
personal communication, 2006-09-14)
4.1.2.1 Process for customer firms
According to Lars-Owe Kron, there are three cases of how ROL AB is dealing with its cus-
tomers and where in the operating process ROL AB starts to be involved (see appendix 3).
The first case is that ROL AB leads and participates in all steps in the process and in that
way provides a total solution for the customer. It takes care of the whole process, from de-
sign to production. The second case is when a third party delivers the need phase and the
24
creative design works. ROL AB only makes the technical design, value engineer, prototype,
and fulfill the remaining process steps. The third and last case is when a third party delivers
the need phase, the design work, and the prototype. ROL AB then only makes the value
engineering of the product in order to reduce the product and logistic costs. (L-O Kron,
personal communication, 2006-09-14)
4.1.3 ROL AB’s current situation
Presently, ROL AB is relatively unknown firm in its home market of Sweden. Although
ROL AB supplies many strong branded and mainstream firms, such as Disney, Chanel, and
Diesel. People have seen its products in one way or another, but they are paramount to in-
visible since no one associates the products with the ROL brand. Its products are seen in
grocery stores, convenience stores, petrol stations, and airports all over Sweden and many
parts of the world. One major example of this unawareness is that very few know that
ROL AB provides retail solutions to many of the largest grocery stores in Sweden. It is vir-
tually unknown that all the shelves and store fixtures in ICA stores in Sweden are made by
ROL AB. Until today, ROL AB has been satisfied with being unknown and paid little at-
tention on marketing. However, a loss in market share has forced the firm to re-evaluate
firm policy. (L-O Kron, personal communication, 2006-09-14)
The market ROL AB operates within is tough and it has become more and more competi-
tive throughout the recent years. There are many large, competent, and proficient firms
competing for the existing customers. Today, there are 160 companies on the Yellow pages
who market themselves as being in the store interior industry. In order to cope with this
increased competition, retain old customer relations and gain new ones, ROL AB needs to
develop its current brand into a strong and highly recognized one. (L-O Kron, personal
communication, 2006-09-14)
When the sales director of ROL AB, Lars-Owe Kron, was asked; “If I, as a customer, want to
invest in new store fixture, how do I know that ROL is an existing supplier with a solution to my prob-
lem? He replied with “As it is today, you cannot know that”.
4.1.3.1 ROL AB’s current marketing strategy
ROL AB is in the unusual situation of being a large, mature and successful business but
facing the problem of having a non-existent brand. Changes in the market and the in-
creased competition, ROL AB has recently come under the realization that a strong brand
is necessary for their continued growth and success. Previously ROL AB did business and
sold products without any specific marketing strategy. However, it has come to the conclu-
sion that it needs to start marketing and to communicate its brand in order to meet the in-
creased competition. (L-O Kron, personal communication, 2006-10-20)
The firm has recently developed a competitor analysis in order to see how their competi-
tors are working and developing. It wanted to see who the competitors are, how big they
are and where in the market they are operating. ROL AB believes that, to have knowledge
about its competitors and understand their actions, it will enhance the development of the
firms own marketing strategies. (L-O Kron, personal communication, 2006-10-20)
ROL AB has started to develop its marketing strategy by conducting segmentation, in or-
der to see in which segment it should focus its recourses on. It has decided to focus on
grocery stores, fashion stores, health and beauty stores, electronic stores and convenient
stores. In these segments ROL AB will focus mainly on product development and diversi-
25
fication. The firm believes that the growth potential and attractiveness is highest in fashion,
health and beauty and electronic segments. (L-O Kron, personal communication, 2006-10-
20)
The firm has recently started to visit and exhibit different trade fairs around the world. It
believes that this might be a good way for the firm to find new customers and develop new
relationships. ROL AB has also developed brochures about its products, which is mainly
used at the trade fairs. However, except from the trade fairs and the brochures ROL AB
has not worked much with any other marketing activities. (L-O Kron, personal communi-
cation, 2006-10-20)
4.1.3.2 Mr. Kron’s personal reflections
In this section we have discussed the same questions as posed to ROL AB’s existing and
potential customers in order to receive Mr. Kron’s personal reflection in the subject.
November 21
st
2006. Personal interview with Lars-Owe Kron. Engineer, courses in electronics, marketing
and international marketing, 25 years of working life experience; five of them at ROL AB.
Marketing tools
Mr. Kron believes that trade fairs are a good way to reach and attract new prospects. How-
ever, they do not show any products on the fairs. This is due to the fact that if it is some-
thing that people think is really good, it will be copied directly. There are many people who
are going to different fairs just to grasp new ideas and then they take them with them back
to their old suppliers for production.
Another marketing tool that ROL AB has started to use is advertisements in newspapers.
Presently ROL AB makes a deliberate investment in the newspaper Habit, a pure fashion
paper showing how the fashion branch will look like a year from now. Habit was chosen
because it is only reached through subscription and has a very high reading frequency. For
that reason ROL AB is of the belief that the right customer segment will be reached. ROL
AB also considers advertisements in other branch papers such as Svenska Dagbladet and
Dagens Nyheter. One paper made a report about ROL AB some months ago which ROL
AB experienced a great and positive result from. Sending out brochures at a venture, so-
called “shotgun method”, is a waste of money and of no use according to Mr. Kron.
Personal opinions
Mr. Kron characterizes a B2B market by professional buyers. It is a more sensitive market
and the relative strengths in a B2B market is on a completely different level than in a B2C
market. Talking about B2B marketing he is of the belief that personal relations are the most
important tool. TV-commercials can be of interest if it is used in the right way he further
claims. Further Mr. Kron believes that it would have an impact on the people who do not
already know about ROL AB since it increases the awareness. Sitting at home watching TV
one’s protective barrier is down and one will be surprised and influenced by the unex-
pected. However, in a B2B context it should be used as a complement to other tools.
He further states; “The most important marketing is the daily work; to deliver in time and to always
keep one’s promise”
His final remark; “Of all things, the best defense you can get is continuous renewal and innovation”
26
4.2 Interview with existing customers
Interviews have been conducted with some of ROL AB’s existing customer. This has been
done in order to analyze their opinion about their supplier relationships, different market-
ing tools, and B2B markets. The firms businesses with ROL AB have also been discussed.
The people interviewed have all different titles, varying from purchasers to marketing man-
agers, depending on the organization and size of the firms. However, they have all in com-
mon that they are responsible for the purchase of store interior. This counts also for the in-
terviews with potential customers. The interview guide can been found in Appendix 1.
4.2.1 Abecita
Abecita was founded in Sweden in 1932 by Joel Åkerlund as he started a major corset fac-
tory in Borås; AB Corsettindusti. He started manufacturing traditional ladies lingerie such
as corsets, girdles, and bras and these products were and are still today the company's pri-
mary focus. Today the Scandinavian brand is Abecita found in over 1200 fine lingerie
shops all through Northern Europe.
November 13
th
2006. Telephone interview with Monica Sjösvärd, academic education at university in
USA, brand management courses at IHM, and several years of experience within the company.
Supplier relationship
Abecita is a B2B firm with almost no own stores. Therefore, its products are sold through
retailers. ROL AB was involved when Abecita decided to have new interior the exhibition
at Stockholm’s fashion house and to the new stores in Oslo. The exhibition focuses on re-
tailers and if they like the interior they see they will have the possibility to buy it to their
stores. This possibility is done since Abecita wants that its products should be presented in
the right way and also a way for Abecita to increase and strengthen the awareness of its
brand.
Marketing tools
The marketing director at Abecita, Mrs. Sjösvärd, prefers that suppliers contact her by tele-
phone. The second best alternative is that the supplier sends some kind of circular or bro-
chure where the company presents its products or services. If the suppliers send catalogues
or brochures it has to be accompanied by a telephone call, either before or after. If the ma-
terial is of interest, a meeting can be arranged. Abecita also seeks suppliers itself via the
Internet. Through e-mail is the worst alternative for the supplier to contact her via. An e-
mail is too easy to delete and ignore. In today’s working environment you receive a lot of e-
mails every day and it is easy to miss some of them.
Mrs. Sjösvärd is of the belief that there is no reason for ROL AB to do mass communica-
tion as it is a B2B company. She thinks that nice brochures and personal sellers out on the
market are the most important tools for ROL AB to use in order to attract new customers.
Personal opinions
Mrs. Sjösvärd sees some differences between B2B and B2C when it comes to marketing.
B2B marketing requires a smaller advertising budget than B2C marketing. She further
thinks that in a B2B environment one needs not to put much effort on creating an image,
but instead should work more with facts about the product, price and quality. In B2C you
have to embed image and feelings so that the customer can see that through the product.
27
Price and quality is always embedded in some way anyway, so one does not have to work
specifically with that.
Mrs. Sjösvärd believes that one acts in two different ways when doing a business purchase
or a private purchase because it is not “your own” money you are spending at work. She
thinks that one is affected in some ways of what one hears and sees if it is through the right
channels. If the companies choose the correct media for traditional B2C advertisement, the
advertising can create an interest even in a B2B context. As an example Mrs. Sjösvärd says
that if she sees an advertisement in Dagens Industri, it can create interest and affect her in
her work. If the same company should make an advertisement in a gossip magazine she
would not be affected in the same way, even though it is the same advertisement, since it
would make the suppliers less credible and serious.
When it comes to the impact of the brand, she believes that brands in B2B markets do not
have the same significant impact as it has in B2C markets, or it depends on the branch.
Clothes are highly brand sensitive, but in this case with interior, she believes it is of less
importance. However, it has some impact. Having awareness of a company or its brand can
influence, facilitate, and speed up a business decision since you already have gained a pre-
knowledge.
4.2.2 Design House Stockholm
Design House Stockholm offers a wide range of Scandinavian design objects that symbol-
ize Nordic simplicity. Its Flagship stores are found at NK in Stockholm and Gothenburg,
Selfridges in London, Magasin in Copenhagen, and Steen & Ström in Oslo. They are repre-
sented in 300 boutiques in Europe, 100 boutiques in Japan and over 200 boutiques in USA.
Design House Stockholm (DHS) has four of their own stores in Sweden and eight in total,
with plans to expand with six to eight new stores for next year.
November 14
th
2006. Telephone interview with Bo Schött, Bachelor of Business Administration with a
major in Marketing.
Supplier relationship
ROL AB has been providing DHS with new store interior since April 2006. This new rela-
tion was a result of a successful participation by ROL AB in a trade fair earlier this year.
DHS found ROL AB and another supplier to be of interest, and began to consider which
of them to start cooperation with. ROL AB won the deal thanks to its partner’s around the
globe which was in line with DHS’s thoughts of internationalization. Another factor was
that ROL AB provided installation of the goods in Sweden as well as abroad. They also of-
fered a reasonable price level. DHS did not know of ROL AB before the trade fair, there-
fore the fair was very successful for both parties.
Marketing tools
Most often, DHS is contacted by phone since the suppliers have a hunger to sell and if they
believe that they can offer what we need, they contact us. The telephone call is often fol-
lowed-up with a brochure or a presentation later on. If DHS contact the suppliers them-
selves the first thing to do is that they check their own sources, talk with friends and
branch organization first. Then Internet is used as a source of information. The reputation
is of greatest importance since a good reputation helps whereas a bad reputation hinders.
28
If DHS could choose a method of being contacted they would choose by phone even
though “it can be a pain in the ass”, as Mr. Schött express himself. E-mail is seen as being too
personal and not a good way to go if you have not been in contact with each other before.
If a company presentation is sent it should be directed to a specific and the right person at
the company. Then DHS thinks that the supplier has put some effort in finding the right
person for the offer and shown its capabilities, therefore it will create an interest.
According to DHS, trade fairs are providing an excellent way of finding suppliers. “If it was
not for trade fairs we had not found ROL AB”, Mr. Schött says. Mass communication in general
is a waste of time and money according to DHS, at least when it comes to interior. There
are too few people out there that are really of interest for your products. It can be profit-
able if you have a broad customer segment and products that can be directed towards both
companies and private consumers. Communicating shampoo or a chocolate bar will give
you a customer base of nine million people in Sweden, whereas there are much fewer buy-
ers of store interior.
Personal opinions
Mr. Schött claims that there is a huge difference between B2B and B2C since it concerns
widely separate target groups with widely separated needs; they are two different worlds. As
an example he says that using TV as a medium for selling copy machines is a waste of
money. Even though it will have an affect, it will cost much more than what you will get in
return. Some mass communication tools are useful in a B2B context, but only when it con-
cerns a broader product category.
Mr. Schött believes that you are definitely the same person at the job as you are at home
and that one is 100 percent impressionable. He says that “advertising is all about creating an im-
print in you brain”. However, today there is sometimes too much commercial for the human
mind to comprehend. It is of greatest importance to be visible where the firm’s target cus-
tomer group exists as it is not interested of the 99 percent who are not interested. As an
example he explains how sponsoring and advertisement at an ice hockey game might con-
cern only about four persons out of an audience of 7000. A firm also needs to find chan-
nels that work and help it to find the ones it is aiming to reach. According to Mr. Schött,
direct advertising is the most appropriate way for that.
Talking about the impact of a well-known brand, Mr. Schött thinks that it depends on the
branch a firm is operating in if a strong brand is important or not. In general, the brand is
extremely important, but not particularly important in store interior industry. The similarity
between B2B and B2C marketing according to Mr. Schött is that it is still a person you shall
reach out to and arouse that person’s interest. Another similarity is that clever and innova-
tive advertising is essential. Thus, the goal is to have no wastage in marketing. The greatest
dissimilarity is that B2B is a more focused business whereas B2C is a more mass oriented.
4.2.3 Philip Morris
Philip Morris International has since 1970 increased their operating income from $54 mil-
lion to $7.8 billion, and is producing some 600 billion more cigarettes than 30 years ago.
Philip Morris International’s Swedish subsidiary, Philip Morris AB (“Philip Morris”), has
approximately 30% of the cigarette market in Sweden and is competing with mainly two
other manufacturers for the total cigarette market share. Philip Morris AB is since 1988/89
dealing with ROL AB. Philip Morris distributes its products via Swedish Match Distribu-
tion but is also working towards retailers, meaning that their market is very fragmented.
29
Since most of its customers are small retail shops this demand a lot of resources by the
Philip Morris sales force who are constantly in personal contact with its customers.
November 16
th
2006. Telephone interview with Monica Gustafsson, Market Economic degree and edu-
cated within purchasing. (The approved version of the interview are attached in appendix 4)
Supplier relationship
Philip Morris has five suppliers that they regularly deal with. Philip Morris has different
store interior depending on whether it should be in a grocery, tobacco or convenience
store. Every purchase process is very complicated and it takes time. This process is usually
in cooperation with a supplier or an architect. They have chosen to use architects or ex-
perts in the field who design and than they ask suppliers to provide cost calculation for the
production.
Philip Morris collaboration with ROL AB started in 1988 and had initially common pro-
jects, worked together and developed together. In later days Philip Morris has decided to
develop the design in-house and only let ROL AB be the manufacturer. This, Mrs.
Gustafsson says is due to its internationalization which made them want to separate devel-
opment and manufacturing.
Marketing tools
To find a supplier, Philip Morris AB conducts research of the Swedish market and interna-
tionally. Additionally, Philip Morris AB has the advantage of being a large group of com-
panies, which gives access to the entire worlds’ suppliers. Suppliers are also found by rec-
ommendation from Philip Morris’s companions within its network. Many suppliers phone
Philip Morris with the intension to get a meeting, which they normally do not provide. In-
stead Philip Morris uses its wide network to find a suitable supplier. Trade fairs are used as
a mean for inspiration and in order to stay updated in any possible developments.
Philip Morris AB Purchasing Department prefers to be contacted via e-mail rather than
over phone, even though Mrs. Gustafsson realizes that it is easier to hear if something is of
interest over the phone and that e-mails might not be read. Something for suppliers to keep
in mind is, according to Mrs. Gustafsson, not to send spontaneous e-mails to random peo-
ple. They must make sure that the e-mail is a fine company presentation and what they are
promoting really is presented and sent to the right person. The e-mails could preferably be
accompanied with a phone call.
Personal opinions
Most of Philip Morris’s customers are individuals shop owners not belonging to Trade
Groups, who demand a lot of resources as personal contact. Mrs. Gustafsson is of the be-
lief that the most important aspect in doing business is to fulfill commitments. Further she
claims that relations are not a crucial factor, instead one should disregard emotional feel-
ings when judging a supplier and see if it still is credible. Mrs. Gustafsson is of the opinion
that communicating credibility through a brand is of greatest importance as one rather buys
a brand that is known. In a private situation she would rather buy a stronger brand that is
more expensive, especially if it regards a more complex purchase like a computer.
Mrs. Gustafsson is convinced that one is influenced outside work and that one can, to a
certain point, use B2C tools such as TV and cinema commercials in a B2B market (for ex-
ample Compaq). If it is successful depends on what kind of product it is, and how many in
a company that is involved with the purchase of that product. The negative aspect of using
30
this method is the cost of advertising, so Mrs. Gustafsson rather believes in one-on-one
marketing. Finally, Mrs. Gustafsson says that strong brand awareness is good if it is posi-
tive, but one must also remember that there are many small suppliers that are good to, but
not shown. Therefore you should not only rely upon that when searching for new suppli-
ers.
4.2.4 Posten
Posten has about 30 000 employees and a turn over of above 25 billion SKR and consti-
tutes one of Sweden’s largest concerns. The customers to Posten are both small and large
companies, organisations, the public administrator, municipalities, county council and pri-
vate persons. Companies are by far the largest customer group, standing for 90 % of the
revenues.
November 13
th
2006. Telephone interview with the purchase director (chose to be anonymous), Psychology
and Philosophy degree, 10 years of experience within purchasing.
Supplier relationship
How often Posten purchase store interior vary a great deal. Last time it purchased store in-
terior was three years ago, but they are not sure when the next purchase will take place
since they do not have any continuity in its purchase of store interior. Continuous purchase
of supplementary goods for the current interior is ordered from the existing supplier, but
for new solutions they go out and search every time. The collaboration with ROL AB
started as Posten where to change its concept and needed new store fixtures to all their
stores in Sweden. Posten designed the modules, whereas ROL AB solved the practical as-
pects of the design, the production and the delivery.
Marketing tools
Posten prefers to be contacted by suppliers, instead of contact themselves, and every sup-
plier is collected in a supplier file. The contacting is normally done by phone, but also by e-
mail. If Posten decides to contact a supplier they believe they have sufficient knowledge of
the existing suppliers and their services, that company research is not necessary. On occa-
sions when research is needed, Internet is used as a tool for information search. According
to Posten, trade fairs are sometimes beneficial, although the most efficient way for a sup-
plier to contact the firm is for them to make a call first then a meeting can be arranged.
A strong supplier brand does not strongly influence the decision when Posten is selecting a
new supplier. A weak brand only requires a higher amount of presentation from a supplier.
Posten makes sure that they review and give every supplier out there a chance, not caring
about strong or weak brands.
Personal opinions
The purchase director defines B2B marketing as something a firm develops together with a
partner. This cooperation creates creativity and a higher problem solving ability.
The Posten representative does not believe a business decision maker is affected by adver-
tising after working hours. She reasons that in the evenings you are more relaxed and that
makes a purchaser less open for contact than at work. She does not believe that one will be
affected by mass communication, but rather that direct adverting works. However, the pur-
31
chase director believes that one is affected by what one sees and hears privately for work,
but not as easily as one is affected by private interests.
4.2.5 Systembolaget
Systembolaget, the Swedish Alcohol Retail Monopoly, exists for one reason only; to mini-
mize alcohol-related problems by selling alcohol in a responsible way without any profit
motive. Systembolaget has about 410 stores across the country, 250 of those are self service
stores. In the smaller places and sparsely populated areas where there is no Systembolaget
store they have a local agent, often a country shop or other shops. They have about 580
agents in Sweden.
Telephone interview November 20
th
2006 with Erik Oldgren. Engineer and education in project manage-
ment. Chief in construction and real estate management.
Supplier relationship
The firm usually rebuilds 50 stores every year and from 2001 it uses a new concept for inte-
rior design. Systembolaget does not see itself as loyal to one supplier since it only has con-
tracts for about three years with a supplier. After these three years it looks for new suppli-
ers and may then chose to work with another supplier instead.
Systembolaget started to use ROL AB as a supplier in 2001. The reason for choosing ROL
AB was that they could deliver the best alternative, regarding both price and quality. Other
important aspects that Systembolaget considers when choosing a supplier is the capability
to deliver on time, but also if the company can deliver to all parts of Sweden. Systembo-
laget also mentioned that it is important to have one contact person at the supplier to talk
with and that this person can solve and deal with all different problems and questions.
Marketing tools
Systembolaget contact a lot of suppliers by themselves and it often uses the yellow pages or
Internet. A well-developed and interesting webpage is therefore very important to have.
The firm also visits fairs in order to see which suppliers who are interesting and have new
ideas. However, the problem with fairs is that you easily miss the small suppliers since they
are often not there. The firm also receives phone calls from suppliers that want to arrange
personal meetings with Systembolaget, but these are asked to send in a company presenta-
tion as a first step. Systembolaget then keeps these different company presentations in a
‘supplier box’ until it is time to buy new store interior. Systembolaget believes that it is not
a known brand is not that important, instead it values in-time delivery, competence etc.
Personal opinions
Mr. Oldgren thinks that B2B markets are based on business relations, and these relation-
ships are a way to develop each other. However, Systembolaget only work with shorter
contracts and are not loyal to one supplier, meaning that it does not focus much on long-
term relationship. Although Mr. Oldgren believes it is important to have good relations
with these suppliers even if Systembolaget has shorter contracts. Mr. Oldgren also believes
that the use of TV as a marketing tool for a B2B company can be beneficial since it creates
an interest for the company and shows its products. He says that even though we do not
think that we get influenced at home we are human beings and we will be affected of what
we see and hear, in some way or another, and take that with us back to work.
32
4.3 Interview with potential customers
Interviews have been conducted with some of ROL AB’s potential customer. This has
been done in order to analyze their opinion regarding their supplier relationships, different
marketing tools, and B2B markets. The people interviewed have all different titles, varying
from purchasers to marketing managers, depending on the organization and size of the
firms. However, they have all in common that they are responsible for the purchase of
store interior. Three of ROL AB’s potential customers insisted on being anonymous, and
those firms are therefore called Company A, Company B, and Company C. The persons in-
terviewed at these firms will therefore be called Mr. or Mrs. A, B and C. The interview
guide can be found in Appendix 1.
4.3.1 Company A
Company A is one of the leading grocery companies in Scandinavia with about 2000 em-
ployees, five factories and a turnover of approximately 800 million USD. The firm has cho-
sen to be anonymous, hence no further company description.
November 7
th
2006. Telephone interview with Mr. A, purchasing manager. Master of Engineering with
Economic alignment.
Supplier relationship
The company mainly uses the shops’ own interiors for their products, but they also buy
corrugated cardboard displays. The company does approximately 400 orders a year for the
four Scandinavian countries, of them about 150-200 is for Sweden. They use the same inte-
rior for all stores. Some years ago, Company A worked with three or four suppliers in every
country but today it has reduced the number and works only with two suppliers in Scandi-
navia. The two suppliers that they work with today have great knowledge and production
to reasonable and good prices.
Marketing tools
Company A does not actively search for new suppliers itself; the suppliers take contact with
them. There are new suppliers calling every week. Company A also works with creative of-
fices that in its turn have contacts and relationships with suppliers that Company A get to
know.
Mr. A believes that telephone is the best and most satisfying way of being contacted with.
After that the supplier may send material by e-mail or mail, and if it arouses the company’s
interest they arrange a meeting for further negotiations. The company dislike suppliers that
only sends e-mails since as the working climate is today with a bombardment of e-mail it is
easy to miss e-mails.
The firm also participates in some trade fairs, but since it has a stabile base of suppliers, the
company does not actively search for new suppliers. The trade fairs are more used for
gathering inspiration and new ideas.
Personal opinions
Mr. A characterize a B2B market by saying that it is about relationships; strongly person, -
and relationship dependent. In Company A, B2B and B2C marketing is two different units.
In B2C they use the traditional advertisement in cinemas, newspapers, magazines, and TV;
with focus on visibility. In B2B, the company market itself towards the big chain of stores
33
and here it is more focus on profit margins, annual negotiations, private conversations and
to strengthen and develop relationships.
For the similarities between B2B and B2C, Mr. A thinks of price and quality. These two
aspects are seen to be of equal importance in both B2B and B2C. It should be good quality
to a reasonable price. When it comes to brands he believes that it is extremely important
with a known brand in both B2B and B2C.
Mr. A is confident that you are influenced of what you are exposed to when you are not on
the job since people acting in a B2B environment also is a private consumer. You bring
what you see and hear in your leisure time to work, consciously or unconsciously, therefore
can B2C marketing and its tools also benefit the B2B market. He says that it is all about
breaking through the mass medial wall. He ends the interview by saying; “If you are visible you
will be contacted but if you are not visible, you do not exist”.
4.3.2 Company B
Company B sells home electronic products such as radio, TV, kitchen and laundry prod-
ucts. It sells its products to both companies and private consumers. It has about 60 de-
partmental stores in Sweden, Norway, and Denmark. During the 1990s it opened numer-
ous new stores in Sweden and continued to expand during 2000. The firm has chosen to be
anonymous, hence no further company description.
November 8
th
2006. Telephone interview with Mr. B, electrician, building constructor.
Supplier relationship
Company B buys new interior design when it opens a new store and it opens about four to
eight new stores per year. The company uses similar interior design in all of its different
stores. Approximately every other year Company B looks around among different suppliers
and their offerings in order to update itself about the market and search for the best prices.
Presently, Company B works with three different suppliers for the interior to its stores. The
first one is a supplier that the company has worked with for 10 years and has a close rela-
tionship with. This is a small company with only 10 employees and Company B feels that it
can have a personal relationship with this firm since it knows the employees well and gets
great service from them. The other two suppliers have been chosen because they offer a
low price level. When Company B evaluates potential suppliers it values quality and price,
but also the supplier’s ability to come up with new ideas, innovativeness, and its ability to
come up with solutions to Company B’s problems and needs.
Marketing tools
Company B is well-known in Sweden and because of that it does not need to contact any
suppliers; instead suppliers try to get in contact with them. Generally, suppliers use phone
calls as a first attempt to reach the company and to try to get a personal meeting with them.
The firm prefers to be contacted by telephone since it is easy to get information about the
products during a telephone conversation. A good webpage is also something that is pref-
erable to have, though Company B believes that it is only a compliment to other marketing
tools.
Company B sometimes visit fairs, but only occasionally. However, it sees trade fairs as a
place where you can establish new and good contacts. Additionally, the firm often uses new
workers “old relationships”. For example if Company B employs a new assistant purchaser
34
he or she often knows and has developed relationships with some suppliers from previous
jobs. Company B can then use and develop these relationships and by that find new suppli-
ers and solutions to problems and needs. Word-of-mouth is something that Company B
finds very important. If a supplier has problems with its products and deliveries it will soon
get a bad reputation in the industry and rumors are something that spread rapidly, espe-
cially the negative ones.
Personal opinions
The person that was interviewed at Company B had no academic education in the field of
marketing and was not familiar with the concepts B2C and B2B. Therefore he had some
problems to answer the questions in this section. Mr. B did not know if interior design
firms used advertising at all but he did not believe that it would be efficient to do either.
However, Mr. B at the same time believes that people can be affected of adverting outside
work, but not enough to make a difference. According to Mr. B, the most important aspect
of a brand is the brand name. He believes that it is of greatest importance to have a name
that is easy to remember so that potential customers easily can remember and find the
company, for example on the Internet.
4.3.3 Company C
Company C is one of the leading automotive spare parts chain in Scandinavia, offering
workshops and car-owners a wide range of spare parts and accessories. As stated the com-
pany deals with both companies and private consumers. However, other companies consti-
tute the greatest customer segment, especially car workshops. The workshops generate ap-
proximately 85 percent of the total spare parts sales volume. The company has approxi-
mately 200 stores in Scandinavia of which 120 are located in Sweden. The company sells all
its products via its store network.
November 7
th
2006. Telephone interview with Mr. C, 15 years of experience and genuine interest. Respon-
sible for store developments.
Supplier relationship
Company C’s store structure is in continuous development and it orders interior for about
10-12 stores a year, either for new establishments, move, or remaking. Company C works
with two different kinds of interior but it only deals with one supplier to which they are
loyal and has a strong relationship with. This is due to the fact that the supplier provides a
good price, quality and service and always is there for them.
Marketing tools
Since Company C is very happy with their supplier they find no need to search for new
suppliers. They are although continuously contacted by suppliers who want to sell their
products/services. The only time Company C deals with these suppliers is a couple of
times a year to do price controls in order to check that its supplier is in line with what oth-
ers are offering. The first contact is always done by phone. Mr. C argues that this is the
only way to do it since brochures go straight to the bin and randomly sent e-mail should be
banned because they are not sanctioned from the top management in any way.
Trade fairs are beneficial though, since they provide a source of inspiration and new ideas.
These ideas are later developed with the already existing supplier, rather then dealing with
new suppliers.
35
Personal opinions
Mr. C claims that there is a large difference between a B2B and a B2C market and their
marketing techniques. To consumers, companies use TV, radio and magazines as market-
ing channels. With businesses the company wants to create relationships which make it
more personal. The reason for why brochures often are thrown away before being read is
that they are not personal enough. Another difference between the two markets as Mr. C
sees it is that the private consumer is more interested on special deals and price whereas
businesses are looking for good service. In important business deals relationships are essen-
tial. Firms do not want to fight about the price; instead it should focus on creating trust.
Further the interviewee argues that a strong brand is of greater importance in a B2B market
than in a B2C market. This because it is more important that the partner is reliable, which
is something the brand communicates.
Mr. C claims that you are the same person in private as at work. A manager does not step
out of its role when leaving work. One continuously brings experience and everyday im-
pressions back to work.
4.3.4 Duracell
Duracell is since 2006 a part of the company Procter & Gamble. Duracell is the world’s
leading producer of high-performance alkaline batteries. The firm does not regularly sell to
consumers as private persons. However, there are some exceptions. They sell directly to
end-users when it comes to the Defense and to the medical service. Duracell is also selling
on purchase tenders for county council where certain requirements need to be fulfilled.
Another customer group is distributors who are selling the batteries to end consumers.
November 7
th
2006. Telephone interview with Kjell Engelmark, no academic education but 15 years of ex-
perience.
Supplier relationship
When it comes to interior design, Duracell buys metal displays for its products. The com-
pany uses standardized products and the purchasing process is centralized and controlled
from Geneva, so the local companies are not involved in the process, hence no further in-
formation about the purchasing process.
Marketing tools
When it comes to contacts with suppliers, Duracell do not often contact the suppliers
themselves; the suppliers contact them. Duracell prefers to take contact or be contacted by
telephone and if the first call is of interest they arrange some kind of meeting for further
business. They also participate and go to trade fairs to gather information and ideas about
new potential suppliers.
Personal opinions
The person interviewed, Mr. Engelmark, has no academic education but has 15 years of
experience within the field. For him B2B is about relationships and personal contacts. In a
B2B environment a purchaser needs greater product knowledge than in a B2C context. Mr.
Engelmark sees this as the largest difference between B2B and B2C.
36
Mr. Engelmark is convinced that you are affected by everyday impressions that influence
you in your work since a purchaser also is a consumer. You are daily exposed to different
kind of advertisements and purchasers are ordinary people who will be influenced by what
they see and hear like everyone else. Usually you obtain knowledge and awareness through
consumer advertisement. The brand is also important and companies can derive great ad-
vantages and benefit from a well-known brand since a seller does not need to waste time
on explaining what the firm is selling when contacting customers. He thinks that the bene-
fits and importance of a strong brand are similar in both B2B and B2C environments.
4.3.5 Gina Tricot
Gina Tricot has had great success since the start up in 1997 and is one of the fastest grow-
ing fashion companies in Sweden. Presently it has 60 stores in the country but is continu-
ously rapidly expanding. Every year Gina Tricot has over 18 million visitors in all age
groups. In the year 2005 Gina Tricot had a turnover of about 625 million SEK and this
year it will have a turnover of over 800 million SEK. The store surface is from 300 square
meters and up. In many of the existing stores there is a need for expansion. (Gina Tricot,
2006)
November 9
th
2006. Telephone interview with Adam Johnsson, head hunted from store interior.
Supplier relationship
The number of times that Gina Tricot buys new interior design to its different stores is
based on how many new openings and redesigns that are made during a year. The firm al-
ways uses the same supplier for its interior design, Nässjö Inredningar, and has worked
with them for about ten years. The reason for working with Nässjö Inredningar is, accord-
ing to Gina Tricot, that the company is the best in the business. They have a great relation-
ship, work close together, discuss problems and find solutions together. The supplier is
very flexible and that is something that Gina Tricot values highly.
Marketing tools
Gina Tricot never contact its suppliers, instead the suppliers try to get in contact with
them. Usually it receives telephone calls from sellers who want to arrange a meeting and do
a presentation about their products and show some brochures. However, being very loyal
to its current supplier, Gina Tricot does not agree to this kind of offers very often. If it
could chose, Gina Tricot prefers to be contacted through e-mail instead of phone calls
since you can then take a look at it when you have time and you do not need to be dis-
rupted in you work.
Fairs are something that the firm hardly visits at all. Gina Tricot believes that it knows what
is new and popular in the business since it often visits for example New York and Milan to
look at new trends. Gina Tricot also believes that, since it does not search for new suppli-
ers, fairs are not efficient for them to visit. The firm feels that word-of-mouth and a well-
known brand are not relevant since they know what it wants and does not care what prod-
ucts other firms use and like.
Personal opinions
Mr. Johnsson only works with the design of the stores and was not involved in the market-
ing at all. He had been headhunted to Gina Tricot in order to work with the designs of the
37
stores. So when we ask him about specific marketing questions, he shared his reflection
about it without any real academic knowledge.
Mr. Johnsson believes that you are two different persons at work and at home and there-
fore advertising in a B2C context is inefficient to use in B2B market. Especially when it
comes to complicated and complex products as interior design is. Products like that re-
quires a more “in depth marketing tool” in order to reach out to the customers. Mr. Johns-
son thought that B2B and B2C are two different things and that is why he believes that
B2C advertising is inefficient in a B2B context.
4.3.6 Hemtex AB
Hemtex AB is a retail chain that sells home furnishing products, especially different curtain
fabrics. By the end of the year Hemtex AB will have 183 stores; 136 in Sweden, 32 in
Finland, nine in Denmark, and six in Norway. It had a turnover of 1159 million SEK in
2005.
November 13
th
2006. Telephone interview with Ing-Marie Edvardsson, several years of experience, no par-
ticular academic education.
Supplier relationship
During the last years has Hemtex AB opened around 20 to 25 new stores per year and due
to that there is a constant need for new interiors to its stores. Hemtex AB has today two
different versions of interior in its stores, one new and one old. The firm does its purchas-
ing of interior continuously during the year and they always use the same supplier. How-
ever, it is nothing that says that Hemtex AB will use the same supplier in the future. Ap-
proximately every fifth year, Hemtex AB search the market and looks at different suppliers
and make price inquiries.
Marketing tools
Hemtex AB sometimes searches for and contacts different suppliers by itself and when it
does that, it usually uses Internet and different web page. However, word-of-mouth, rela-
tionships and reputation are also important when deciding which supplier to contact. The
firm prefers that suppliers contacts them through e-mail and fairs. E-mail since it is easy
and comfortable to get a written presentation about a company and its products that you
can take a look at in peace and quiet. Fairs are efficient marketing tools since they provide
good opportunities to get in contact with interesting companies, build relationships and a
possibility to get a picture of how companies market themselves and their interior.
Personal opinions
The woman interviewed at Hemtex AB, Mrs. Edvardsson, has no academic education and
was not familiar with the concept of B2B and B2C. She believes that contacts are impor-
tant but then primarily for the exchange of experience and to get information. Mrs. Ed-
vardsson is of the opinion that a well-known brand is important but it is often not the de-
termining factor when deciding which supplier to work with or not. Good references and
reputation on the other hand is always important. Mrs. Edvardsson believes that it is no ac-
tual difference between a person at work and at home. A person’s personality often mirrors
how one is as a person in the professional life as well. However, at the same time it is im-
portant to be able to make a distinction between what is private and what is work. Mrs.
Edvardsson believes that you can be influenced from different things that you have seen
38
and heard when taking a purchasing decision. But you are more affected by colleagues
within the branch and not that much from other channels as advertising.
4.3.7 Zeta
Zeta is a firm that sells Italian food to grocery stores, for example oils, vinegars, pasta etc.
For 2006 the firm will have a turnover of 360 million Swedish crowns. Zeta sells its prod-
ucts to about 3000 different stores and the firm has the possibility to expose and/or
change the standard shelves in approximately 1500 of those stores. The firm experience a
growth of about 25 percent during 2006.
November 7
th
2006. Telephone interview with Mathias Jordevik, experience within Zeta.
Supplier relationship
Zeta works a lot with its buying and selling processes. It works continuously and actively in
the stores with shelf strips and labels etc. The firm generally buys new store fittings every
third month and it always uses the same supplier. This is due to that Zeta has a very well-
developed relationship with that supplier since 25 to 30 years back in time and they work
close together. The supplier does not only supply Zeta with store fittings but also with en-
velope, business cards etc, i.e. the supplier provides Zeta with an overall solution. Although
Zeta is loyal to this supplier they sometimes search the markets and look around among
other suppliers in order to find new ideas and to see that the prices that its supplier is offer-
ing is in line with the market in general.
Marketing tools
Although Zeta always search and update itself about the market and potential suppliers the
firm almost never tries to contact suppliers itself. In almost every case it is the suppliers
that contact Zeta and want to show their ideas and products. Usually these contacts are
made by telephone calls from sellers that want to arrange a personal meeting with the
company. If the seller makes a good impression and manages to create an interest, Zeta of-
ten agrees to a meeting. In most cases, and preferably, are these meeting often followed-up
by an e-mail. The firm does not think that trade fairs are an efficient way to do business;
instead Zeta sees them as a way to gather inspiration. The firm has a lot of own ideas about
how it wants to display its products in the store and most of these ideas it receives from its
own sellers at Sale support.
Mr. Jordevik believes a strong brand can be important although it is not what the firm itself
look at when it chose suppliers. He is of the opinion that new and inspiring ideas and well-
developed store solutions are more important than a strong brand.
Zeta prefers to be approached in the traditional way of marketing that the supplier first
sends a brochure where the products clearly are explained and showed and that this is fol-
lowed-up with a telephone call. E-mail is a marketing tool that Mr. Jordevik finds very inef-
ficient since a purchaser gets to many e-mails every day that he or she hardly read them.
Personal opinions
Mr. Jordevik sees B2B and B2C markets as “two different worlds”. In B2C markets customers
have no requirements on the interior design in the stores; they just want Zeta’s products at
good prices. The relationship ends when the consumer pays for the product and leaves the
39
store. However, in B2B markets there is a need of teamwork and collaboration between the
customer and Zeta and long-term relationships are very important.
Mr. Jordevik is of the belief that B2C marketing tools, for example advertising, are not effi-
cient in a B2B environment. He rather believes that relationships and personal meetings are
the preferred tools. However, in the same time he says that “one lives with ones’ work”; a
purchaser is always a purchaser and can get inspired 24 hours a day. You are always creat-
ing impressions and one is constantly influenced, consciously or unconsciously, no matter
where you are. For example when one visits an ICA, OnOff or a Siba store you gather in-
spiration and ideas for solutions to problems and needs.
4.3.8 Åhléns AB
Åhléns is a well-known retail chain in Sweden. It focuses on four different areas: fashion,
beauty, home and media products. Åhléns AB presently has 79 department stores, 20 so-
called “home stores” of which 17 is located in Norway. It is also the owner of Kicks, a
chain with 95 stores that sells beauty products, and Lagerhaus which is a chain with 17
stores that sells home and design products. In 2005, Åhléns AB had a turnover of ap-
proximately 5 billion Swedish crowns.
November 9
th
2006. Telephone interview with Peter Rönnebjär, 30 years of experience within Åhléns, and
8 years of experience within store interior.
Supplier relationship
Åhléns keep a continuous and everyday maintenance of its store interiors. All stores have a
standardized setting but are adapted to the specific need of each and every store. Åhléns
AB has about three to four larger suppliers that it works with when it comes to shelves and
store fixtures. It collaborates also with many smaller suppliers providing them with interior
such as Plexiglas, cubes, and carpets.
The main departmental stores usually experience a growth rate of three to six stores a year.
The smaller stores, Kicks and Lagerhaus, experience an even higher growth rate than that.
Åhléns ensures that its suppliers are aware of the fact that if they do not stay competitive,
Åhléns will find a different supplier which is. The suppliers must continuously prove that
they are the best supplier for Åhléns when it comes to price, quality, service and good
knowledge.
Marketing tools
Suppliers are usually in a line up, to get a deal with Åhléns. Albeit it is believed that if sup-
pliers manage to get its foot into the company they can expect large orders in the future,
Åhléns makes sure to look at many suppliers in order to keep updated.
When Åhléns search for potential suppliers they see the Internet as a very important source
of information. Trade fairs are another preferable tool because they provide inspiration and
new ideas. Receiving brochures from is a third way that is good. When suppliers contact
Åhléns, it is mostly done by phone calls, which the interviewee argued was not preferably
since it was time consuming. Instead he prefers that suppliers show that they exist by ad-
vertising in branch magazines, on the web and to be present at trade fairs. Then Åhléns has
the possibility itself to contact the suppliers of interest.
40
Personal opinions
According to Mr. Rönnebjär, a strong brand is important although not as important as
providing a good quality and price. Further he argues that he is affected similarly by mass
communication personally and professionally; an advertisement only catches his interest if
it is of relevance to him. He believes that the best advertising a store interior company can
make is through innovative products and presentation of the products in a store. He claims
that he has a constant presence of curiosity; if he sees something of taste he will find out
who is responsible for that interior so that he can contact that supplier.
Mr. Rönnebjär believes that there is no actual difference between B2B and B2C. He warns
against relations, and speaks for openness. He argues that strong relationships hamper in-
novativeness. Åhléns find it therefore important not to stick to one supplier if they do not
live up to the expectations, but rather incorporate new suppliers several times a year.
41
4.4 Firms operating in a B2B market using B2C tools
Interviews have been conducted with Ramirent and Ahlsell. This has been done in order to
understand their opinion about marketing in B2B markets. It is interesting since both firms
use B2C marketing tools even though they are seen as traditional B2B firms. This in order
to indirectly reach the business person through its role as a private consumer. The people
interviewed are responsible for the marketing within the firms. The interview guide can be
found in Appendix 2.
4.4.1 Ahlsell
The Ahlsell group has an annual turnover of about 20 billion SEK, whence approximately
9 billion in Sweden. The group has around 4000 employees and about 2000 of those is
working in Sweden. They have sellers in over 200 places in Scandinavia, of which 80 stores
are situated in Sweden, and the main office is located in Stockholm.
The company supplies goods and associated services for professional users within the
product areas of heating & plumbing, electrical, tools & machinery as well as refrigeration.
Ahlsell is today Sweden's only trading company that has a one-stop range of installation
products and that enjoys a strong position in all product segments. Ahlsell is both market, -
and branch leader. In other Nordic countries, Ahlsell is one of the leaders in several prod-
uct segments.
Ahlsell has about 500 strategic suppliers. In order for the supplier to be classified as a stra-
tegic supplier, it needs to fulfill some requirements. The supplier has to offer strong
brands, have a Scandinavian presence, and that the sales takes place through the wholesaler
link. Most of those suppliers are big, internationally working actors with sales organizations
in several countries. (Ahlsell, 2006)
November 16
th
2006. Telephone interview with Camilla Weiner, chief information officer. Bachelor of
Business Administration, several courses in law, marketing, informatics and equity market.
Marketing tools
Ahlsell is working with different segments and the company uses a communication model
that search for the different segments and their needs. Then an analysis is done in order to
see which segments that are of interest and to find out about the customers’, within the
segment, specific needs.
The stores are a very important channel, and specific customer meetings in the store are of
special importance. Ahlsell also uses direct marketing and offerings to the specific segments
and they often differs between the segments. Another tool that Ahlsell uses is advertise-
ment in business press and other specific branch organs for B2B. E-mail is a tool that the
marketing directors work a lot with and uses as a mean to provide entrepreneurs with
knowledge about the industry. Providing this superior competence to its speaking partners,
the company creates added value.
A great part of Ahlsell’s marketing is put on sponsoring. The greatest sponsoring event is
harness racings. For example, Ahlsell is sponsoring Stig H Johansson and his team. The
reason for sponsoring harness racing is that many of Ahlsell’s customers are businessmen
and wholesalers and there is a strong tradition that those people also have an interest in
horses. Many of them are horse owners or are playing on horses. These sponsoring events
are also a good way for Ahlsell to spend time with its customers and suppliers. It is a fun
42
and much-appreciated event, where they can have dinner, business talks and playing on
horses at the same time. This is creating a win-win-situation for all parties.
They have special Ahlsell races and these generate a great pay-off. TV4 is, since a couple of
years, marketing harness racings and Ahlsell has got a real upswing and profit from this.
This do not only generate in real money, it also helps to put Ahlsell on the map for the
public that do not know about the company. These evenings also help Ahlsell to spread in-
formation about the company, pick up new ideas and viewpoints from customers and sup-
pliers. They are also contributing to the creation of close relationship with its customers.
The working per segment and direct marketing are the tools that Mrs. Weiner sees gener-
ates the greatest pay-off. However, the VIP-evenings connected to the harness racings have
become a big tradition and hard to beat.
Personal opinions
Mrs. Weiner is of the belief that we are all affected in our roles outside work. She is con-
vinced that we fetch private impressions when we act at work. She also thinks that firms in
B2B markets can do typical B2C advertisements since the degree of recognition one of the
most important variables.
When she talks about the differences between B2B and B2C she mentions that a company
in B2B is working with constant relations in more organized forms. The relations are long-
term and often you reach long-term agreements with each other. In B2C markets you as a
supplier more or less ends the relationship with the customer after a purchase.
If it should be profitable for Ahlsell to work with TV commercials, it should be done at lo-
cal channels. This since Ahlsell is locally organized and operates at local markets. So if the
company should create business through advertisement in TV, it has to be at local market,
as Malmö and Mora where it is strongly anchored. Mrs. Weiner thinks that the only way
that TV-commercial can generate pay-off is that it creates an increased awareness of Ahlsell
for the common man. She further argues that less well-known firms would probably bene-
fit more from TV-commercials than what Ahlsell would do, since a company has to start
with creating a platform to start from and in that work, advertisement at TV can help.
Mrs. Weiner thinks that brands are of greatest importance. She says that the whole business
starts with the brand. The brand communicates your core values and attitudes are embed-
ded within the brand. The firm’s co-workers functions and works as ambassadors for the
brand. It is also of great importance that you as a firm knows and is aware of what your
brand stands for. She takes an example of IKEA and that they have switched the theory
the other way around. IKEA says that this is the way we live, and this is how we learn and they act
after what the brand stands for. A person that drives a Jaguar and wears a Rolex can not
work at IKEA, since it is not in line with what the brand wants to communicate.
According to Mrs. Weiner “it is important to practice what one preaches, and to be an example of
what your brand communicates”.
4.4.2 Ramirent
Ramirent is a young and strong addition on the Swedish market for letting of machines.
The company has been on the Swedish market since the autumn of 2004, as a result of the
fusion of Stavdal Byggmaskiner and Altima. Ramirent has 46 customer centres all over
Sweden.
43
November 13
th
2006. Telephone interview with Kenth Sturesson, Marketing Director, Master of Engi-
neering.
Ramirent is a pure B2B company. However, it sells to private consumer in some cases. But
that sale only represent less than one percent of total sales. The reason for also selling to
private consumers is that, according to Mr. Sturesson, you never know who enters the
door. The person that wants to hire a machine for doing something with his/her summer-
house in the weekend may be the same person that next week places a large order for
his/her firm. Ramirent can never exclude private consumers completely, but it is not a seg-
ment that the firm is focusing on. Ramirent’s customers are mainly in the constructing sec-
tor.
Competence and service are the company’s keywords. Its strategy is to have as high service
as possible so that there is no other alternative for the customer. With Ramirent, they are
now three big actors that compete on the market and in order to survive the company al-
ways strive to be on the toes, be better, and one step ahead of its competitors.
Marketing tools
The long-term goal with all marketing is to increase the sales. Additionally people need to
know that Ramirent exists in order for us to increase our sales says Mr. Sturesson, market-
ing director at Ramirent. Therefore, he believes that the brand is of great importance, and
one has to create awareness for the common man in order to reach brand equity. This also
eases the sellers work. The goal is that the customer already shall have knowledge about
Ramirent when the seller calls. In that way the call will be more efficient and the sellers do
not need to put effort on explaining the firm’s history. Although, the most important mar-
keting tool is still the sellers’ work. Mr. Sturesson further states that the brand is much
more than a logotype, one also has to embed feelings and values in the brand.
For Ramirent the most commonly used way of reaching its customer is when sales people
call customers and book meetings. However, Ramirent also do a lot of sponsoring. For ex-
ample, they sponsor all ice hockey clubs in Elitserien, the highest hockey league in Sweden.
The company has its logo in the face off circle in all arenas. As its main customer group is
in the constructing sector Ramirent did a thorough market research to see where to find
this segment. They found out that it was an overrepresentation of people within this sector
who was interested in ice hockey. This is the reason for why Ramirent has chosen this cer-
tain sponsoring. The company also sponsor rally competitions and equestrian sports.
Ramirent also do some advertising in trade and branch press as Dagens Industri, and direct
marketing with direct circulars. They have also done some radio commercial. Ramirent has
not tested TV commercial yet but they are not foreign for doing so in the future if they
find the right channels to reach its customers. However, in order to do TV commercials
Mr. Sturesson is of the belief that a thorough research need to be done to see what kind of
people is watching what programs, gender, age, branch distribution and so on. There is a
need of accurate measurements from TV and Radio and Print Medias.
In order to reach out to its customers, Mr. Sturesson believes that the personal meeting still
is the most effective and efficient way in a B2B market. At second place comes the spon-
soring. However, it is not only through the old way of just putting up a signboard with your
logotype. The sign is only 50% of the total invested money. Ramirent uses the sponsoring
in order to arrange customer events. The company let players, coaches and other active
members lecture about leadership, team spirit/work and other things, and in that way
44
Ramirent buys some fame. An example that Mr. Sturesson gave of such an event was when
they let a famous rally driver talk about traffic safety.
Personal opinions
Mr. Sturesson thinks that you certainly can use B2C marketing tools to reach your B2B
customers. This is due to that the world is changeable. The old way of thinking was a norm
until four to five years ago. If you are of the belief that B2B and B2C markets are two sepa-
rate worlds and that you cannot use B2C tools in a B2B market, you live in an obsolete
world.
Mr. Sturesson is today the marketing director of Ramirent, but has an engineering educa-
tion from the beginning. The reason for why he chose to switch track was that he was tired
of the technical branch, and how bad the technological companies were at marketing them-
selves. So he thought he had to do something with his ideas.
He is convinced that people are affected by what they are exposed to during everyday hap-
penings and that you are not two different persons at job and at home. He says that he can
sit at work and worry about his sick kids and he can sit at the dinner table at home and
worry about the work. He undoubtedly thinks that you are affected by things you have seen
and heard in your spare time when you are going to take decisions at work.
45
5 Analysis
_______________________________________________________________
This section has the intention to connect presented theory with empirical findings. The focus is on the re-
search questions in order to answer the purpose of the thesis and they will work as headings to provide a
structure. First it will be determined whether the perceived dichotomy is true or not by an analysis of B2B
and B2C markets, and continues with the importance of brand awareness in B2B markets. Lastly, an
analysis with an evaluation of different marketing tools will be conducted with the purpose to find the suffi-
ciency of relational marketing, and the appropriateness of using transactional marketing.
5.1 Why is there a dichotomy between B2B and B2C markets?
We will investigate whether the dichotomy and the previous recognized differences be-
tween B2C and B2B markets just are a historical artifact rather than a current reality. This
will be done in order to establish if there is an actual need to apply different marketing ap-
proaches towards the two markets.
Ramirent claims that the old way of believing in a dichotomy of the two worlds of B2B and
B2C was a norm until four to five years ago and that the world has now changed. The firm
further argues that if one still is of that belief and thinks that firms cannot use B2C market-
ing tools in a B2B market, one live in an obsolete world. Today’s firms are facing a differ-
ent situation with shorter product life cycles and the intensity of global competition, which
no longer provides the luxury of “build it and they will come” thinking (Olivia, n.d.). If these
statement are to be true, can we then assume that the key account manager at ROL AB Mr.
Kron’s conjecture was correct regarding the award the firm won within marketing five
years ago? ROL AB won a marketing award without any marketing activities what so ever,
it was solely based on good sales due to good performance. Mr. Kron further claimed that
such a prize would not have been possible to win without any marketing strategy these
days. As in present time, the market has changed in terms of a stringent competition in the
store interior industry.
From presented theories we have shown some of the perceived characteristics of differ-
ences and similarities between B2B and B2C markets. Thereafter we tested these theories
by interviewing 15 firms in order to receive professional input from people who are actu-
ally involved with purchases in a B2B environment. Together with the theory and the em-
pirical findings we will distinguish whether or not these perceived characteristics are true
and accurate in today’s practical market. The analysis will keep a focus on issues that has
emerged through our research concerning theories and empirical findings of being the
most common characteristics of a B2B market. These characteristics are product knowl-
edge, risk, size, complexity of orders, and involvement in relationships.
What differences in behavior are there in B2B and B2C markets?
B2B buyers tend to be more specific oriented and they tend to have a good understanding
of the products they want (Ford et al., 2002; Anderson and Narus, 2004). This is also
something that Duracell, Company A and Company C all proclaimed. Duracell claimed
that the greatest difference between a B2B and a B2C environment is that the B2B pur-
chaser needs better product knowledge. Company A’s and Company C’s perceptions of the
similarities and differences between the two markets differed. Company A claimed that the
similarity between the two markets is price and quality. Customers in both B2C and B2B
markets demand a product with good quality to a reasonable price. Company C on the
46
other hand claimed that customers in B2C markets are more interested in special deals and
price whereas customers in B2B markets are looking for good service. Thus, fighting for
the price would undermine a firm in a B2B market and the firm should instead focus on
creating trust. Ford et al. (2002) argue that when it comes to pricing the B2B marketer need
to prove the difference between their product and the competitor’s product to the buyer
based on hard facts.
Two things can be concluded from the observations above, when one is contemplating if
there really is a difference between the two markets. First, the purchasers in a B2B market
are perceived to have greater knowledge and understanding of a product compared with a
B2C purchaser. This is indicating that they are less likely of being deceived or making a
foolish purchase. Second, one should keep in mind that any product, whether it is sold in a
B2B or a B2C market, which has the intention of communicating quality and good service
should not compete with price.
B2C buyers are said not to face any particular risk more than the loss of money they pay for
the product or service (Anderson and Narus, 2004; Ford et al., 2002). Abecita is of the
same belief. A person acts in two different ways when doing a business purchase compared
with a private purchase, as it is not your “own” money you are spending at work. Further-
more, B2B purchases are made by a number of people who all see the importance of their
task since it concerns the whole firm, as well as the persons’ own career (Fill, 2006). Pur-
chases in a B2B market become more important since if failure occurs on your cost, it is
the firm’s problem. This implies that purchases of impulse are rarely occurring in B2B
markets; instead evaluation of different alternatives is a commonly used procedure.
One could generalize and say that there is more risk connected to purchases in B2B con-
texts than in B2C since it often involves complex purchases and in connection with that,
more money. B2B purchases are often associated with large investments, as in this case
store interior, which is something that has a major affect on the firm’s sales. Therefore, the
purchase decision needs a thorough analysis before it is taken. This is not the case in the
everyday purchases by a consumer, and decisions are often taken on impulse. We believe
the reason is that when less money is involved, the purchase feels less risky. However, risk
can be great in a B2C context such as when buying a house, car or computer since these are
is all big investments. Therefore, we are of the opinion that risk is generally higher in a B2B
context but recognize that there are situations in a B2C context where risk can be equally
high. Although there are additional consequences attached to a B2B purchase than the ac-
tual purchase, such as default of revenues, complaints, bad will and internal conflicts.
Another characteristic associated with B2B buying behavior is for example larger and more
complex orders (Anderson and Narus, 2004; Fill, 2006; Ford et al., 2002). Gina Tricot states
the same and especially gives the example of store interior. The firm argues that complex
products demand a more “in depth marketing tool”, in order to reach out to the customer.
An in depth marketing tool communicates the benefits more thoroughly, that is, contains
more information. Another general perception is that people in business environments
know what they want. Furthermore, people in a business buying situation are professionals
whereas private persons are more seen as amateurs. It should be taken into consideration
that complex purchases also take place outside the business world and that a consumer
normally knows what it wants as well. Although, this kind of behavior might not be seen as
general on a day-to-day basis as it is in a firm. Gina Tricot’s “in-depth marketing” sugges-
tion is a method that should be used in every situation where larger purchases are done,
both in businesses and for private consumers. From this we gather that there is no special
need to separate the two approaches of B2B and B2C, rather create two approaches of
47
how to tackle complex purchases vs. purchases of daily consumption goods. Thus, it is said
that the complexity of the decision itself makes a difference no matter what kind of envi-
ronment a purchaser is in (Brown and Fern, 1984).
Relationships have long been seen as the foremost trait of B2B markets (Ford et al., 2002).
This is further a major difference that Ahlsell sees when comparing B2B and B2C markets.
A firm in a B2B environment is working with constant relations in more organized forms.
Ahlsell further argues that relations are long-term and firms often reach long-term agree-
ments with each other. This is reality since firms often sign long-term contracts which de-
mand a higher involvement than what can be seen in a B2C market. In B2C markets a sup-
plier generally ends the relationship with the customer after a purchase. Hence, B2B mar-
keting concerns the interactions between two parts to a greater extend then in a B2C con-
text (Ford et al., 2002).
What can be seen from the empirical findings is a 50 percent split between those who make
new-buys and those who rather carry out a re-buy from a past supplier partner. The results
blatantly show that there exists a dichotomy between whether strong relationships are benefi-
cial or not. On one side, Systembolaget has as a standard to only sign maximum three-year
contracts and if possible even shorter. Further Åhléns argues that strong relationships
hamper innovativeness. On the other side we can find Company B which nurtures its rela-
tionship and believes that it is beneficial to get to know each other. This thought is shared
by Posten that defines B2B marketing as something firms develop together with a partner
and that its cooperation can generate creativity and a higher problem solving ability. Be-
cause of the 50 percent split between those who never change and those who continually
change, one can claim that the theory that relationships are the foundation of B2B charac-
teristics is somewhat true. What can be argued is whether long-term relationships are benefi-
cial or not. If close relationships enable greater results or hamper innovation? Resource-
dependent industries are known to create better opportunities through cooperation and re-
lationships whereas in fast developing and constantly changing industries, such as store in-
terior, close relationships could possible hamper innovativeness. The reason for why it can
hamper innovativeness is that firms can miss opportunities, new ideas and a new way of
thinking that other and new suppliers could contribute with. Åhléns and Systembolaget
therefore speak for more competition and not to stay in a relation just because of friend-
ship tactics.
In conclusion we will say that although many of the past perceived ideas still hold true today,
there exists area’s that have changed. Purchasers in a B2B market are perceived to have
greater knowledge and understanding of a product compared to a B2C purchaser. Al-
though, one should keep in mind that any product, whether it is sold in a B2B or a B2C
market, and has the intention of communicating quality and good service should not com-
pete with price. We claim that it is the amount of money spent on a purchase that consti-
tutes the perceived risk, not whether it is in a B2B or B2C context. Further, there is no spe-
cial need to separate the two approaches of B2B and B2C, rather create two approaches of
how to tackle complex purchases vs. purchases of daily consumption goods. The theory
that relationships are the foundation of B2B characteristics have somewhat remained accu-
rate. Although, in fast developing and constantly changing industries, such as store interior,
relationships could possible hinder innovativeness.
Can it possibly be as Ramirent states that the world has changed and that the importance of
relationships, which has been seen as a characteristic for a B2B environment, may start to
48
blur out? We saw significant changes from the perceived idea indicating that possible mar-
keting techniques need to be updated.
Is there a need to separate the marketing approaches towards the different markets?
The traditionally characteristics in B2B markets; specific oriented, high risk decisions, larger
and more complex orders, and relations have made B2B marketing theory to focus on ra-
tional information, long-term contracts and personal relationships. Consequently, this has
shaped assumptions of how marketing communications should be handled and what
communication tools should be used in a B2B market. Although, what is trying to be said is
that Simon’s (1976, cited in Fill, 2006) view of the environment makes it too complex and
dynamic for the decision maker to comprehend and create an objective view. Hence, the
person in charge for a purchase decision will rather rely on knowledge and experience as a
basis of its decision. After conducting the first part of the analysis there seems to be no
special need to separate the two approaches of B2B and B2C. This implies that brand
awareness could contribute to increased sales in B2B markets just as in B2C markets.
5.2 How is brand awareness affecting B2B and B2C markets?
The analysis above shows that there is no special need to separate the two approaches of
B2B and B2C and this can imply that brand awareness could contribute to increased sale
even in a B2B context. We will in this section therefore compare the attitudes towards
branding in B2B and B2C markets and focus on investigating the importance of brand
awareness in a B2B market. A comparison of the theories with the empirical findings will
be conducted to find similarities and differences between branding in the two markets.
Secondly, we will try to answer the question if the brand affects a person in a business deci-
sion situation.
How important is brand awareness in a B2B market compared to a B2C market?
When assessing the differences and similarities between the collected empirical data and
theory about brands and branding, it gave the impression that theory and reality are not al-
ways in line with each other. This is especially true when reflecting about the importance of
brands in a B2B market compared to a B2C market. As stated in the theory section, a for-
mal definition of a brand is that a brand is a “name, sign, symbol, design, or a combination of them,
intended to identify the goods and services of one seller or group of sellers and to differentiate them from those
of competition” (Keller, 2003, p.2). The fact that a brand can be seen from different perspec-
tives and be associated with numerous things may be one of the reasons for the inconsis-
tency in people’s opinions. People tend to have different perceptions about how things are
and the implications of the importance of the brand can differ if it is associated with a
name, logo or symbol.
The increased competition that prevails today in many markets, both B2B and B2C, creates
pressure for firms to differentiate in order to become and stay competitive. One way to dif-
ferentiate is through branding. Several marketing theories state that firms in B2C markets
with a strong brand often get a competitive advantage in comparison with those firms with
weaker brands. It is further proved by many authors that strong brands in B2C markets are
one of the firms’ most valuable assets, and in order for the firm to reach a long-term prof-
itability it is of crucial importance to manage and develop them with great care. (Keller,
2003) This theory amounts to the fact that brands are very important in B2C markets the
power of brands can be a tremendous tool for influencing the buyers. However, in B2B the
brand tends to have a smaller influence on the buyers. (Ford et al, 2002)
49
The responses from the interviewees portray a message surprisingly similar to the B2C the-
ory. Åhléns and Systembolaget state that brands in B2B markets, especially within store in-
terior, are important but not as crucial as other aspects such as quality, knowledge and ser-
vice when choosing a supplier. Zeta and Åhléns additionally value innovative and well-
developed ideas more highly. It could be noted that all these crucial aspects are something
that a brand can communicate. Abecita and Design House Stockholm further believe that
good references and reputation are always of importance. Combining a good reputation re-
garding the presented crucial aspects with a brand will create a competitive advantage. Be-
cause communicating good quality of a brand does not mechanically make people believe it
is true, hence the importance of creating a good reputation for the brand. Ahlsell and
Ramirent claim that a brand in B2B markets is much more than a logotype, that a brand
communicates a firm’s core values and that the firm’s attitudes are embedded within the
brand. Company C would go as far as saying that it is even more important with a strong
brand in a B2B context than in B2C. They justify this by claiming that it is more important
that a partner is reliable in a B2B environment. Reliability is supposedly communicated
through the brand and is said to be, both empirically and theoretically, typically important
for a B2B market.
Theory by Aaker (1996) states that brand awareness is reflected by the consumer’s ability to
identify and remember the brand under different conditions from recognition to recall, to
“top of the mind” and finally to dominance. This is in line with what several of the respon-
dents believe of a B2B environment. They argue that as the purchaser has high awareness
of a supplier or its brand this can influence, facilitate and speed up a business decision.
Since the purchaser already has knowledge about a firm less research is required before
making a decision. Further benefits for the supplier of having a strong and well-known
brand is that it will save time and facilitate for the sellers. They will not need to waste time
and effort on explaining the firm’s history and what is sold.
Company A is very clear in their opinion that having a known brand is extremely important
both in B2B and B2C markets. The company states that; “if you are visible on the market you
will be contacted. However, if you are not visible you do not exist”. This opinion is shared by
Ramirent as they claim “People need to know of Ramirent’s existence, how could we possibly increase
our sales if our customers do not know that we exists? Ramirent therefore believes that a brand
and creating awareness for the general public is of great importance in order to reach brand
equity.
Although the respondents presented above thought brands in B2B markets, and within the
store interior, are somewhat important it was not a consensus with all of the respondents.
Gina Tricot claims a well-known brand is not relevant at all. The firm knows what it wants
and does not care about what brands other firms use and like. According to Abecita and
Design House Stockholm, the importance of the brand is dependent on which branch you
are operating in. As Abecita, answered; “Clothes are highly brand sensitive, but in this case with
store interior the brand is of less importance”. Continuing, Design House Stockholm says that
brands are in general extremely important but not particularly important in the store inte-
rior industry. Philip Morris is of the same opinion and believes high brand awareness is
beneficial in many aspects. Although, Philip Morris further state that it is important that
one as a purchaser keeps in mind that there are many small suppliers that exist on the mar-
ket with great competence, but perhaps not have the monetary capabilities to gain brand
equity. Following this line of thought, Posten states that a strong brand does not consid-
erably influence its selection of new suppliers. It makes sure that every supplier is reviewed
and given equal opportunity, with or without a strong brand. This is an implication that
50
branding in B2B markets might not be a crucial factor for all firms purchasing store inte-
rior. Further, this is something that differentiates from the B2C market. Thus, purchasers
of store interior do not always rely upon brand awareness when searching for new suppli-
ers. What can be questioned though is if Philip Morris and Posten put in the extra effort to
find these small, unknown suppliers? And further if small unknown suppliers actually pro-
cure these big customers?
The two firms who practice B2C tools in B2B context, Ahlsell and Ramirent, are also the
two firms that are the most favorable for the importance of brands in B2B markets. If it is
acknowledged that brands are of highest importance, how can a person in a business deci-
sion situation be affected?
How can or does a brand affect a person in a business decision situation?
The discussion above tells that brand awareness is an important aspect both to industrial
buyers as well as to consumer buyers. Recognition of the brand name gives the brand a
sense of familiarity, which can drive the buying behavior. (Aaker, 1991) For larger invest-
ments people tend to be more careful. Therefore, creating awareness of one’s brand should
be of greatest importance. Philip Morris is of the opinion that communicating credibility
through a brand is of great importance since people rather buys a brand that is known.
Thus, people like the familiarity and are more likely to buy products which they recognize
rather than products with unknown brands. If the brand is not recognized, the purchaser
does not know what to expect in return for the money they spend. Additionally, we are of
the opinion that having a brand name that is easy to remember will generate that more
people know about the brand. Company B shares this opinion and believes that the brand
name is the most important aspect of a brand.
According to theory this familiarity drives the buying behavior, which strengthens our be-
lief that a strong and well-known brand can affect the purchaser when taking a decision.
One of the first things a purchaser will do in the buying process is to select a group of
brands to consider for the purchase. In most cases, the supplier that first comes to the cus-
tomer’s mind will have an advantage. ROL AB is also of the belief that if its work would be
more recognized and if more people knew about its work, it could easily gain more cus-
tomers and sales. It is a major loss in the opportunity of free advertising not to have a sign
on the products saying; Made by ROL AB – Innovative Retail Solutions.
Conclusively, factors that our respondents found more crucial than a strong brand when
choosing a supplier were presented. It was factors such as quality, knowledge, service, and
innovative and well-developed ideas. However, how will a supplier communicate these as-
pects if not through its brand, especially one with a good reputation? Some argued that the
importance of the brand is dependent on which branch a firm is operating in. It has been
said that the brand is generally extremely important but not particularly important in the
store interior industry. Purchasers of store interior have to keep in mind that there are
many small suppliers that exist on the market with great competence, but perhaps not have
the monetary capabilities to gain brand equity. What can be questioned is if firms put in the
extra effort to find these small and unknown suppliers? And further if small and unknown
suppliers actually procure these big customers?
We have the opinion that brand awareness is important in B2B markets since as said, ”If you
are not visible, you do not exist”. Additionally, high awareness of a supplier and its brand in a
purchaser’s mind can influence, facilitate and speed up a business decision. Further benefits
for the supplier of having a strong and well-known brand is that it will save time and facili-
51
tate for the sellers. We are convinced that higher brand awareness can help the firm to in-
crease its sales since it is seen and recognized by more people who can generate business
for the firm. Further, a strong and recognized brand is good and vital for the people who
work at the firm and represent it daily. Additionally, a brand that communicates credibility
and are visible will attract competent personnel. The question that now arises is; how can
all this be communicated through the brand? The following section will investigate if tradi-
tional B2B marketing tools (relational) are sufficient alone to reach brand awareness, and
whether a supplier can use B2C marketing tools (transactional) in order to achieve brand
awareness.
5.3 Which marketing tools are preferable in a B2B market?
The traditionally characteristics of B2B markets; product knowledge, high risk decisions,
large and complex orders and interactive relations have made B2B marketing theory focus
on rational information, long-term contracts and personal relationships. Consequently, this
has shaped assumptions of how marketing communications should be handled and what
communication tools that should be used in a B2B market. We have discussed branding
and have concluded that higher brand awareness can help a firm in a B2B market to in-
crease its sales. We are stating that the typical characteristics of B2B markets tend to blur
out in a changing market and that brand awareness is more important now than ever. In
order to find out how to achieve higher brand awareness, we have looked into the reactions
of buyers towards different types of marketing. Research has shown that both transactional
and relational paradigms are relevant in contemporary marketing, regardless the type of
market. The two types of marketing approaches will be discussed below in order to answer
following research question.
Which marketing tools are most efficient to use in B2B markets, especially in the area of store interior?
5.3.1 Relational Marketing
Relational marketing is defined by Gummesson (2002) as marketing with focus on interac-
tions, relationships and networks. It has emerged within the fields of industrial marketing and is
often used in B2B markets (Grönroos, 1997). Relationship marketing includes many differ-
ent kinds of marketing with accompanying tools. Since relationship marketing is such a
broad topic one can not successfully use it to describe proper marketing in this specific
context. Thus, the different marketing tools are evaluated individually.
Interaction marketing
Coviello et al. (1997) defines interaction marketing as a process that engages individuals
who take initiatives to complex relationships and handle personal interactions within rela-
tionships. Some of the marketing tools that are most frequently used in this kind of mar-
keting are phone calls and personal face-to-face meetings.
Most interviewed firms prefer that suppliers contact them via the telephone. This was pri-
marily because those purchasers found it as the best way of acquiring knowledge of a firm
and its products. The general opinion was that phone calls are of great use as an initial con-
tact with a firm. As the interviews were conducted we recognized a consensus of thought
that in B2B markets relationships are important. Although, it is also important not to come
“too close too fast”, since it tend to intrude the possible customers’ individual space. Some
marketing tools feel too personal to start out with while phone calls are a marketing tool
52
that firms find comfortable in the beginning of a relationship. Firms such as Gina Tricot
and Zeta saw phone calls as negative though, and reasoned that they were too time con-
suming. Instead they prefer to receive a brochure in which they could look when time was
available. Although two firms considered phone calls to be bad the majority found them
very useful. This suggests that on a general basis it could be concluded that phone calls are
an effective tool. Maybe Gina Tricot and Zeta experience environmental circumstances
that changed their perceptions, possibly having less time or that new suppliers are not as
important. This is in accordance to the empirical findings were the loyalty to their existing
supplier can be seen.
Personal meetings where the seller and buyer meet each other face-to-face are seen by all
the firms as the best way of actually conduct business. Personal meetings are used when the
initial phase of introduction and the “make contact” phase are completed. The motive is
that personal meetings are, as the theories states, an effective way to communicate the
marketing messages and that it allows for personal discussion and feedback (Kotler et al,
2002). The main objective is to build a long term relationship with the customer. Almost all
the interviewees said that they never meet a representative unless a meeting has been
agreed upon prior. If a seller arrives to a firm and tries to attain a personal meeting, he or
she will be turned away. This would imply that personal meetings should be seen as the last
part of the marketing and selling process, while other marketing tools are efficient when at-
tracting the initial contact with new customers.
Network marketing
Network marketing focuses on multiple network relationships between firms, and has a
significant interest in the “connectedness” of these relationships (Coviello et al, 1997).
Trade fairs are an example of a network marketing tool that is often used. Trade fairs are a
place for the suppliers’ sales force to perform personal presentation in order to market and
sell products, and where customers of store interior can attend.
Three different opinions regarding trade fairs were received during the interviews. Some of
the firms attended trade fairs frequently in order to establish business contacts, while oth-
ers only saw trade fairs as a way to gain inspiration. Finally, some of the firms hardly visited
any trade fairs at all. Gina Tricot AB was one of firms that refrained from attending trade
fairs. The firm has always been loyal to its interior supplier and often traveled to cities such
as Milan and New York to become inspired or find new ideas. Thus they have no need for
the benefits of trade fairs. There was a correlation between firms, such as Philip Morris,
Zeta and Company C, who saw trade fairs only as a source of inspiration or ideas and those
firms who were loyal to their existing suppliers with no intention of switching. These firms
stated that they then brought the ideas back to their existing supplier. Firms such as Com-
pany B and Hemtex, who saw trade fairs as a way to establish contacts found it as a benefi-
cial and straightforward way to meet many different interesting suppliers during a day. We
are of the belief that trade fairs are an efficient marketing tool as a means to meet new cus-
tomers, as trade fairs focus on specific industries and therefore gather many potential cus-
tomers at the same place. Additionally, trade fairs are beneficial as they show a firm’s prod-
ucts and communicate its marketing message. Conversely, since many firms attend trade
fairs with the reason to gain information, participation at a trade fair may not be as efficient
as many firms imagine. It is therefore important afterwards to evaluate how much the firm
gained from their participation. Through research we realized that suppliers that participate
at a trade fairs, should be aware of the threat of being copied from those firms who only at-
tend fairs in order to bring the ideas back to there existing suppliers. To back up this theory
we went back to ROL AB with the question. They were aware of this issue and in order to
53
deal with this problem ROL AB has chosen not to exhibit any of its new innovations at
fairs. This in turn implies a great loss for those firms who attend trade fairs with the atten-
tion not to build new contacts. They will never access any actual new innovation and will
become lost in development.
Database marketing
A database is a file including information about potential customers. Firms use this infor-
mation in order to gain a better understanding of the customers and to create relationship
with them; often through direct marketing (Drozdenko and Drake, 2002). Direct marketing
is communication with specific targeted individual customers. It can be done through mail,
fax, e-mail, and internet and address the message to specific customers (Kotler et al, 2002).
E-mail is one of the most popular marketing tools in database marketing. Firms find possi-
ble customers in databases and later contact them by e-mail. There existed two different
opinions within the interviewed representatives regarding the usefulness of e-mails as a
marketing tool. Gina Tricot and Hemtex, the two companies most concerned with time
management, prefer to get an e-mail instead of a phone call from suppliers. While Zeta and
Company A had the opinion that e-mails are inefficient since a purchaser receives so many
that they hardly read them.
When mail was discussed as a marketing tool, most interviewees explained that they receive
such an abundance of direct marketing such as brochures that they often are thrown away
before being read. However, mail would be a more efficient marketing tool when used si-
multaneously with a phone call. Zeta on the other hand would like to first get a brochure
that was followed-up with a phone call. However, the overall opinion is that direct market-
ing through mail may not be the most efficient marketing tool. Although, it can be benefi-
cial if not employed independently.
Internet and web pages are used when companies search for suppliers themselves. How-
ever, they do not contribute tremendously from a marketing standpoint since firms often
are contacted by suppliers and not the other way around. The general opinion of the inter-
viewees was that a good webpage is always beneficial in order to show a company and its
products in a straightforward way. But obviously this can not be the only thing and it is just
a small part of a comprehensive marketing plan. Company B believes that a company
should have a webpage, but it should be seen more as a compliment to other more power-
ful marketing tools. We claim that it is vital for a firm to have a webpage since internet is
the most frequently used tool when searching for suppliers. Additionally, a webpage en-
ables the supplier to easy and at a low cost marketing itself, its brand, and its products.
Thus, a webpage is a very cost efficient marketing tool. However, it may not be as efficient
as other tools when trying to get in contact with new suppliers. It should therefore be, as
Company B states, seen as an information provider and a compliment to other marketing
tools.
To conclude there is no relationship marketing tool that alone can be seen as the most effi-
cient tool in a B2B market, they have to be used together. An important factor is to know
who is addressed in the marketing efforts. If a supplier manages to accomplish good re-
search, it will be able to reach the correct people and in such way avoid possible negative
vibes in regard to its name. It is suggested by our research that telephone calls are a prefer-
able tool for initial contact. This should be accompanied by a presentation of who the sup-
plier is and what it has to offer, either by e-mail, or by mail in the form of a brochure.
Once a phone-call-relation is successfully established the two parts can arrange a personal
54
meeting. This is an appropriate method in order to execute actual business. Trade fairs and
Internet are beneficial tools for a supplier to be visible to firms who are on the hunt for a
suitable contact. Hence, they are excellent compliments to other relationship marketing
tools.
Nevertheless, all of these marketing methods do not contribute enough to higher brand
awareness. All the discussed methods above have emerged in industrial marketing and are
supposedly not adapted to the change in the business market in recent years. Below we dis-
cuss the appropriateness with bringing together the changing B2B market with transac-
tional marketing in order to achieve brand awareness.
5.3.2 Transactional marketing
Transactional marketing is focused on a single sale in short term period. It is oriented to-
wards product features and has little emphasis on customer service, involving limited cus-
tomer commitment and moderate customer contact. Advertising is an important part in
transactional marketing. (Christopher et al., 2000) Radio, print media, and TV are some of
the most frequently used parts of this marketing tool (Tellis, 2004). This kind of marketing
is mostly used in B2C markets according to Kotler et al (2002). We on the other hand claim
that it should be beneficial to use advertising in B2B markets as well. Hence, the intention
is to conduct an analysis in order to find out if advertising can reach the accurate segment
in B2B markets.
In what way, if possible, can professional buyers be influenced when making a purchase decision by market-
ing tools they are exposed to outside of work?
Increased competition is providing the industry with more similar products, therefore being
visible is more important now than ever before. This change of market structure supports
Lazo, who already in 1960 argued that there is an increased importance of using subjective
factors in the buyer’s decision process. A central part of the decision is the favorable emo-
tional impressions of both persons and firms. Even though the impact of impressions
might not always be conscious, they still should affect the outcome of the marketing ac-
tions.
As the interviews were conducted, many interesting opinions were received within this sub-
ject. Opinions ranged from people who thought advertising outside work can substantially
influence a purchaser in a business decision situation to those who thought purchasers
cannot become influenced at all. Respondents such as Posten and Gina Tricot believe that
purchasers are in no way influenced outside work when consider work issues. They claim
that these decision makers have different roles at home and at work and that the two do
not overlap.
However, most people interviewed were of the opinion that a purchaser can consciously or
unconsciously get influenced. Systembolaget and Abecita believe that even though people
do not think they get influenced by advertising, people are affected by what they see and
hear and will bring that to the work environment. Company A further argues that profes-
sional buyers are influenced by what they see and hear during leisure time since profes-
sional buyers also are consumers. B2C marketing tools could therefore also be efficient in
B2B markets. Company B further believes that purchasers can be affected of adverting out-
side work, but not enough to make a difference.
55
Philip Morris is convinced that one is influenced outside work and that one can, to a cer-
tain point, use B2C tools such as TV and cinema commercials in a B2B market. Whether
or not it is successful depends on what kind of product it is. Complex products such as
store interior will be harder to communicate as a message through advertising. It may need,
as Gina tricot stated, a more “in-depth” marketing tool that can explain more about the
products. Thus, advertising alone cannot communicate the benefits of a product.
Abecita believes that professional buyers can get influenced outside work. The firm has the
opinion that a purchaser of store interior can be influenced as long as it is through the right
channels. They thought it is necessary to be seen through channels that are credible and se-
rious and by that give the firm increased credibility. Ford et al. (2002) says that if one looks
behind the roles of responsibility of a professional buyer, an individual person will have
their own perceptions, expectations and objectives based on their personalities and back-
grounds. This implies that what Design House Stockholm state is true; that the similarity
between B2B and B2C marketing is that both are trying to reach out to a person, and for
that clever and innovative advertising is essential. This substantiates the resemblance in the
two markets because in the end we are all consumers, albeit in different situations.
A majority of the respondents seem to believe that professional buyers can be influenced
outside work. However, if that is the general opinion why are not B2C marketing tools,
such as advertising, more used in B2B markets? One explanation can be that advertising is
an expensive marketing tool, especially using TV. Before a firm in a B2B market decides to
use advertising it needs to have some kind of evidence that it will gain more then it costs.
This is where firms start to doubt the usefulness of advertisings. It is difficult to measure
the tangible effect since the actual purchase may not be seen as a direct link to the advertis-
ing, nor can increased sales always be linked. The risk is that the goal of achieving aware-
ness of a firm, its brand, and products may be overlooked. Although, greater brand aware-
ness does, according to previous discussion, facilitate the marketing intensions significantly.
The sales force might sell more due to the fact that they are supported by advertising.
In order for advertising to be efficient in radio, TV, and print media, it is crucial to do a
marketing research. Firms first have to learn how business buyers make decisions. Once
these processes are understood, it is possible to select a suitable message, media, and tools
to reach these vital market segments. (Clow & Blaack, 2002; cited in Blombäck, 2005) If a
firm finds a way to carry out advertising where a large part of the targeted customer seg-
ment will be reached, it will then be efficient and the firm can gain tremendously. Ramirent
is an example of a firm that uses advertising tools even though it operates in a B2B market.
It has done market research and has found out that its customer segment is very interested
in ice-hockey. Considering that, the firm does advertising in all the different rinks in Swe-
den. It is a way to increase its brand awareness among its potential customers and by that
increase its sales.
According to theory and most of the interviewees, professional buyers can get influenced
by advertisement they are exposed to outside work; as long as it is through the right chan-
nels. It is therefore of great importance for a firm to be visible in channels that are credible
and serious in order for the advertising to be efficient and beneficial. Even though people
do not believe they get influenced by advertising one tends to get influenced, albeit uncon-
sciously. We have the opinion that professional buyers are influenced by advertising outside
of work since in the end we are all consumers.
56
6 Conclusion
In this section we will present the final conclusions which answer the purpose. Further, the analysis resulted
in a number of suggestions regarding marketing strategies for ROL AB which will be presented as a course
of action to achieve higher brand awareness.
Many of the past perceived ideas of marketing still hold true today. However some areas
have changed. The typical characteristics of B2B markets show a tendency to blur, insinuat-
ing B2B and B2C are blending. After conducting research we came to the conclusion that
there is no special need to separate the two approaches of B2B and B2C, rather separate
the two approaches of how to tackle complex purchases vs. purchases of daily consump-
tion goods. The perceived risk of a purchase does not depend on whether it is in a B2B or
B2C context, rather on the amount of money spent. Further relationships, specifically in
the store interior industry, could possibly hamper the innovativeness due to fast develop-
ments.
In recent years the competition has become stringent in the store interior market and it has
become more important than ever to be visible in order to exist. Hence the importance of
brand awareness in a B2B environment has increased and has now become similarly impor-
tant as in B2C environments. High awareness in the purchaser’s mind can influence, facili-
tate and speed up a business decision, thus it enhances relational marketing approaches.
This says that as brands are gaining importance in the B2B environment, B2B firms need
to increase their brand awareness in order to react to this change. The question is how?
The research further came to the conclusion that no relational marketing tool can alone be
seen as the most efficient tool in B2B markets. They have to be used as complements to
each other since they are used in different phases. Although these tools are useful they are
not sufficient to be independently employed in order to reach brand awareness. Further,
research showed that professional buyers can become influenced outside work by everyday
impressions. This implies that B2C marketing tools could be beneficial to use in B2B mar-
kets as a mean to reach the goal of brand awareness.
Theory has shown that increased competition is providing the industry with more similar
products which increases the importance of using subjective factors to influence a buyer’s
decision process. Thus the use of B2C marketing tools, such as advertising, also has grown
in importance. A purchaser is not always consciously aware of how he/she is impacted by
impressions. However these impressions still tend to affect the outcome of the suppliers
marketing actions.
In spite of all the benefits of advertising, research has shown that it is important to con-
sider that advertising is an expensive marketing tool. Therefore it is essential for firms in
B2B markets to find a way to carry out advertising where a large part of the targeted cus-
tomer segment can be reached. It is also necessary to use channels that are credible and se-
rious in order for the advertising to be trustworthy. If all these aspects are considered, ad-
vertising could be efficient and firms in B2B markets can gain tremendously.
6.1 Suggestions for ROL AB
After studying the conducted research of professional people’s perceptions of B2B markets
and marketing tools, we have come up with some suggestions for ROL AB.
57
Presently ROL AB is a relatively unknown firm in its home market of Sweden. Even
though ROL AB supplies many strong branded firms such as Disney, Chanel, Diesel, they
are paramount to invisible since no one associates the products with the ROL brand. The
market ROL AB operates within is tough and it has become increasingly competitive in re-
cent years. There are many large, competent, and proficient firms competing for the exist-
ing customers. During one of the interviews the key account manger at ROL AB got the
question:
“If I, as a customer, want to invest in new store fixture, how do I know that ROL AB is an existing sup-
plier with a solution to my problem? He replied with “As it is today, you can not know that”. This
implies that ROL AB has to do something about its current situation.
ROL AB is in the unusual situation of being a large, mature and successful business but
facing the problem of having a, more or less, non-existent brand. Changes in the market
and the increased competition has contributed to ROL AB’s recently realisation that a
strong brand is necessary for their continued growth and success. It has come to the con-
clusion that it needs to start marketing and communicate its brand in order to meet the in-
creased competition. In this section we will therefore try to investigate the question:
How can ROL AB develop its marketing communication?
The interviewed firms preferred being contacted initially by phone. This should be accom-
panied by a presentation of who the supplier is and what it has to offer, either by e-mail, or
by mail in the form of a brochure. As initial contact is established a personal meeting can
be arranged. Favourably, ROL AB should follow this track. The interviewed firms are ex-
isting and potential customers to ROL AB, and therefore the answers are particularly im-
portant and interesting to consider. ROL AB has today a sale force that works with phone
calls and personal meetings. However, since it has proven to be highly valued among exist-
ing and potential customers ROL AB should develop its firm presentation further.
Trade fairs and internet has turned out to be beneficial tools to use in order to increase the
visibility and awareness of a firm. These tools are therefore excellent compliments to other
relationship marketing tools. ROL AB has recently started to visit trade fairs and we sug-
gest it to continue, since it has shown to be valuable when trying to meet new customers.
The firm has today an attractive Webpage but in order to stand out in contrast to competi-
tor’s WebPages, it could preferable develop it further. WebPages are often the first contact
a potential customer has with a supplier, and therefore they are of great importance.
Today people do not know that ROL AB’s products are at ICA, Systembolaget, etc, since
there is nothing of indication. Therefore, another marketing aspect for ROL AB to develop
further is the sign that the firm just has started to put on its products. It has been major
loss in the opportunity of free advertising not to have a sign on the products saying; Made
by ROL AB – Innovative Retail Solutions. People who are interested in interior design and
works with that tend to pay attention to interior when being in stores. Having this sign on
its products will be a great possibility for ROL AB to attract these people and perhaps gain
new customers.
In order for ROL AB to grow, enhance the brand awareness, and meet the increased com-
petition on the market, it is suggested to use more than the regular B2B marketing tools.
What could ROL AB possibly gain from using B2C marketing tools?
58
Firstly, it is important to decide whether or not professional buyers become influenced by
advertising, since it is only then it would be beneficial for ROL AB to use B2C marketing
tools. Most of the interviewed people were of the opinion that professional buyers in some
way or another can get influenced. People are affected by some means of what they hear
and see if it is through the right channels. This implies that if a firm chooses an accurate
media for traditional B2C advertisement, the advertising can create an interest even in a
B2B context. However, in order for advertising to be efficient in radio, TV, and print me-
dia it is crucial to do a thorough market research. It is for example important to find out
what the targeted customer segments watch and listen to, in order for the advertising to be
efficient. If ROL AB should gain brand awareness from using B2C marketing tools, it is of
importance to conduct a market research to find the best channels in order to reach out to
potential customers. It is also of importance to communicate information through hard
facts and not only emotions.
Many of the interviewed people believed that high awareness of a firm and its brand can in-
fluence, facilitate and speed up a business decision. If the firm is already familiar with the
supplier, there is no need to present or do research about the firm before making the deci-
sion. This is an advantage since it saves time and facilitates the sellers’ work. ROL AB can
gain from having high brand awareness since the seller no longer need to waste time and
effort on explaining the firm’s history, and what it sells.
As stated earlier ROL AB could gain tremendously by increasing its brand awareness and
B2C marketing tools could be efficient to use as a complement to the traditional B2B mar-
keting tools. This way of thinking is shared by Ramirent that states that the long-term goal
with all marketing is to increase the sales. People need to know that the firm exists in order
for it to increase its sales. Ahlsell also share the idea of using B2C marketing tools to in-
crease the brand awareness and the sale. The firm also believes that less known firms
would probably benefit more from using B2C marketing tools in B2B markets. Since ROL
AB is a generally unknown firm with a weak brand we are of the opinion that it could gain
a lot from using B2C marketing tools. It is important for the firm to increase its brand
awareness, which could be done through more advertising. The greatest importance of high
brand awareness might be that it helps the sellers, since it is easier to catch the potential
customers’ interest if they know about the firm and its products before the seller calls.
However, advertising is expensive and in order for it to be efficient and beneficial, it is of
crucial importance for ROL AB to really find the right tools and channels to use, to be sure
that it reach out to the right segments.
59
7 Discussion
This chapter discusses the outcome of the thesis. It presents some limitations of the study which are impor-
tant to be aware of in order to get the correct interpretation of the result. The chapter continues with some
criticism of the chosen method and how it could have affected the result. Furthermore, some areas for further
studies are presented.
7.1 Limitations
The results of this thesis are based on a relatively small number of interviews, only 15. The
reason for this is the lack of time and resources that forced us to limit the number of inter-
views. This limits the possibility to do generalizations of B2B markets. However, it is pos-
sible to do generalizations for the store interior industry and other B2B markets that are
similar to this industry. An additional limitation is that the interviews were made with peo-
ple who had different educations and positions at the respective firms. One can see that it
differs in knowledge and familiarity with concepts concerning B2B/B2C market-
ing/markets between those interviewed people who have an academic background and
those with a more “learning-by-doing” background. The reason for this selection was that
we wanted to interview those who handle the purchase of store interior at the different
firms. Different firms have dissimilar structures and organizations which can explain why
people with different positions handle the purchase of store interior in various ways. The
fact that we interviewed people with different education and positions in the firms may
have had an impact on the result.
ROL AB is operating in several countries with manufacturing operations, sales forces and
service partners all over the world. However, a limitation of the thesis is that due to lack of
time and resources to include more markets it focuses only on the Swedish market. This
makes it difficult to state that the results can reflect anything else then the Swedish market
since all markets differs in one way or another.
For the collection of the empirical findings we chose telephone interviews. It could be dis-
cussed if this is the proper way to do it since the number of interviews gets limited and one
miss the personal contact with the interviewee, e.g. reading of body language, creation of
trust. We are aware that people in general find it easier to talk about sensitive subjects and
that trust is easier created through a face-to-face contact. However, it is not found relevant
to reach such substance because the result will be more of an attitude/perception and nei-
ther one of the drawbacks will affect these interviews negatively.
7.2 Suggestions for further studies
This thesis has only focused on the Swedish market, and for further studies it could be of
interest to investigate markets outside Sweden. It could be of interest since markets in dif-
ferent countries often vary a lot. In this thesis the store interior industry is the focus. How-
ever, it could be of interest to analyze another B2B market in Sweden where products are
less complex to see whether the perceived B2B characteristics are even more out of date
and the that the use of B2C tools are even more beneficial. Since we only looked at the im-
portance of brand awareness in a B2B market it can be interesting in the future to investi-
gate more thoroughly whether it is cost efficiently enough to cover the effort it requires to
reach it.
60
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Appendix 1
Interview guide for existing and potential customers
Information about the company and the supplier relationship
1. How many stores do Your firm have?
2. Does Your firm grow anything? If so how much per year?
3. How much was the turnover last year?
4. How many visitors do Your stores have per year? (approximately)
5. How often do You buy new interiors to Your stores?
6. Are the same interior used in all stores?
7. How many different suppliers do You work with? Why these suppliers?
8. Are your firm loyal to Your suppliers?
Marketing tools
1. How do You decide which suppliers to work with? Do You get contacted or do
You contact suppliers by yourselves?
2. Does it matter if the suppliers have a strong brand? Why?
3. When/ if You try to contact a supplier. How do You do that?
- internet
- word-of-mouth
- databases
- network
- previous relations
- brand recognition
- market research
4. Which marketing tools do You prefer that sellers use when trying to contact You?
And which marketing tools do You dislike?
Direct marketing
- brochures
- phone
- fax
Mass communication
- TV
- Radio
- Newspapers
Personal selling
- fairs
- personal meetings
5. Why do You prefer/ dislike these marketing tools?
6. Which marketing tools do You think is most efficient? Why?
7. Do You always use the same marketing tool?
65
Personal opinion
1. What kind of education do You have?
- Academic
- Experience
2. What is a B2B market for You?
3. What do You think of when I say B2B marketing?
- some special marketing tools
- relations
- special way of working
4. What do You believe is the biggest difference between B2B and B2C? Why?
5. What do You believe is the biggest similarity between B2B and B2C? Why?
6. Do You think a strong brand is important in a B2B market?
7. Do You think brand awareness facilitates the purchasing process, both for supplier
and customer?
8. Do You believe that a person is the same person at home and at work?
9. Do You think that one can get influenced by things one see at home when taking a
purchasing decision at work? Ex by something that you have seen on TV at home
10. Is it possible to use B2C marketing tools in a B2B market?
11. If so, what can a B2B company gain from that?
66
Appendix 2
Interview guide for B2B firms that use B2C marketing tools
Marketing
1. What kind of marketing tools does Your firm uses?
2. Why these different marketing tools?
3. The B2C marketing tools that You have used, why have You chose to use them
when Your firm is a B2B firm?
4. Can You see any difference and result since You started to use these B2C market-
ing tools?
5. Will You continue to use B2C marketing tools in the future?
Personal opinion
12. What kind of education do You have?
- Academic
- Experience
13. What is a B2B market for You?
14. What do You think of when I say B2B marketing?
- some special marketing tools
- relations
- special way of working
15. What do You believe is the biggest difference between B2B and B2C? Why?
16. What do You believe is the biggest similarity between B2B and B2C? Why?
17. Do You believe that a person is the same person at home and at work?
18. Do You think that one can get influenced by things one see at home when taking a
purchasing decision? Ex by something that you have seen on TV at home
19. Is it possible to use B2C marketing tools in a B2B market?
20. If so, what can a B2B company gain from that?
67
Appendix 3
The ROL process for partners
ROL Offices | Sweden | Norway | Denmark | Finland | United Kingdom | Benelux | France | Germany | Poland | Slovakia | Switzerland | Thailand | Singapore | Italy | USA | Brazil | Lithuania
The ROL Process for partners
(alternative 1)
Customer team
Need
Design Prototype
Value engineering
0-Series
Installation
Series production
Full project team incl. Country and logistics
Evaluation » ROL leads and
participates in all steps in
the process
» This method is used
when speed is important.
ROL Offices | Sweden | Norway | Denmark | Finland | United Kingdom | Benelux | France | Germany | Poland | Slovakia | Switzerland | Thailand | Singapore | Italy | USA | Brazil | Lithuania
The ROL Process for partners
(alternative 2)
Customer team
Need
Design Prototype
Value engineering
0-Series
Installation
Series production
Full project team incl. Country and logistics
Evaluation
» A 3-rd party delivers the
need phase plus the
creative design works.
» ROL Makes the technical
design, value engineer,
prototype and fulfill the
remaining process steps
68
ROL Offices | Sweden | Norway | Denmark | Finland | United Kingdom | Benelux | France | Germany | Poland | Slovakia | Switzerland | Thailand | Singapore | Italy | USA | Brazil | Lithuania
The ROL Process for partners
(alternative 3)
Customer team
Need
Design Prototype
Value engineering
0-Series
Installation
Series production
Full project team incl. Country and logistics
Evaluation
» A 3 rd party deliveres the
need phase plus the
design works and the
prototype.
» ROL Value engineer the
product to reduce
product and logistic
costs.
» This alternatives uses
the longest time from all
the alternatives
69
Appendix 4
Approval of the interview with Monica Gustafsson, Philip Morris
70
doc_712123953.pdf