Non-personal Tools Used to Provide Information to Buyers

Non-personal Tools Used to Provide Information to Buyers

Those non-personal tool used by Si were many and varied. In the following paragraphs, an eclectic

list of possible non-personal forms of communication used by Si (and operationalized in Chapter Three)

is presented. As with the personal forms of communication, the views of the market analyst (MA) will

come first, followed by each of the other members of the selling center who were interviewed. As a

reminder, we are trying to make things more presentable by organizing the toolbox with

"compartments." With this we mean that, within each case study, the print advertising tools are

presented first, followed by sections on broadcast advertising, outdoor advertising, sales promotion,

public relations, and finally the Internet.

The first non-personal form of marketing communication asked about is direct mail/mass

mailings. (MA) felt that such advertising efforts were used and considered effective but only for certain

types of mailings. Examples given were for sending the company magazine to buyers as well as

Christmas cards (discussed further under sales promotion). Brochures were not sent as direct mail or via

any form of mass mailings. Brochures were instead sent to buying company representatives upon

request from the buyer and were given away at trade shows as well.

It was felt that mass mailing of such items as cards and company magazines was simply more

effective then distributing their brochures and related collateral materials that way. For (PM), direct mail

was a good way to provide information to buyers, and especially when targeting specific customers.

(PM) continued that such items as brochures, cover letters, newsletter (i.e. company magazine) were

telephone and telefax.

Print ads in trade/industry magazines for the paper and pulp industries was considered next. For

(MA), this was their primary means by which they wanted to remain "visible" to current and potential

buyers. It was felt that if they did not advertise, that too would be noticeable. They used a combination

(or mix) of image, process, and capital equipment ads, feeling that each of these types of ads

complimented one another and worked best for the company. For (PM), using print ads on capital

equipment in such publications was considered a good way to provide information to buyers. It was

explained that Si tries to reach prospective buyers...to inform them with these types of ads. The

problem was that they don't know what comes out of these types of communication efforts.. .they don't

obtain feedback or measure the effectiveness of their ads. It was also mentioned that they would like to

begin to use surveys after a campaign is run to begin to be able to measure the effectiveness of their

Such advertising, in his opinion, should instead should go to company (image) advertising. He

used by Si as a means to provide information to buyers. However, such advertising had been done on a

cooperative advertising basis with other firms producing similar equipment and processes (i.e.

competitors). Print ads in newspapers were similarly done on a limited basis, primarily in special sections

published by the specific newspapers (example given here was an ad run in a special section on the

forestry industry here in Sweden by "DagensNyheter").

According to (PM), such print ads (in either general business or general consumer publications)

would not be a good way of providing information to buyers. The reason given for this was quite simple:

Too expensive to consider for S 1 ' s limited promotional budget.(SM)added simply that most of their

print ad efforts were reserved for the pulp and paper industry magazines that were produced. The

number of these was more than enough to cover a wide market and reach the key decisionmakers with

trying to provide such basic information to buyers.

Broadcast Advertising

Turning attention to broadcast advertising, (MA) stated that the use of local/regional television

advertising was not a worthy expenditure for advertising capital equipment. The primary reason for this

was due to what was considered a lack of focus on the true target audiences for such products and

processes. In other words, they would be reaching a lot of people (consumers) that would not have any

interest in capital equipment used in the pulp and paper industry. The subject, however, did speak of

local television as a means by which to obtain publicity within the local community. Such publicity was

almost exclusively generated after the seller won a very large order. Then they thought that such

communication was worth the effort, from a purely public relation's point of view (the "public" being

one buying firm (and therefore buying center members) lived within the local community. Just as with

local/regional television advertising, national television, as well as cable/satellite TV advertising for (MA)

was not considered a good way to provide information to buyers.

However, the reason given for why she felt this way was that they did not know the viewing

habits of the buyers. It was added that if they had more information about the general viewing habits of

a large enough number of buying center members, television advertising at this level might be

considered. In the separate interviews with both (PM) and(SM),any form of television advertising was

not considered. (PM) added that it could and was used for gaining publicity for the firm. However,

commercials themselves were too expensive and it was felt they would risk never reaching what is really

people they were truly trying to reach was too small for such a mass medium.

piece of capital equipment because they saw it on television. Movie/cinema advertising was also not a

consideration for (MA), and for the same reasons stated above on television advertising (i.e. that hitting

enough people within the target audience they were trying to communicate to would be difficult). These

same sentiments were voiced by (PM) and(SM)in their interviews.

with local television advertising, publicity was sought at both levels of radio for the company, especially

with the news of a very large order for Si. Both (PM) and(SM)felt the same, with (PM) agreeing that it

was a good media choice for garnishing favorable publicity for the firm.

Outdoor Advertising

The reason this was done was to provide means of identification for the company and (MA) felt it

served a useful purpose in this regard. (PM) added that she too felt it was a good way of providing an

image via the company logo, but nothing on the capital equipment. However, it was mentioned more

than once and by more than one interviewee that the company name and logo, in use as image

advertising, could be considered a form of advertising for the capital equipment. The equipment may be

a boiler (for example) but the brand name behind it is the company name. For (SM),company

cars/vehicles with the company name and logo was a very good idea. The reason for this was that, when

visiting a mill (buyer), you were able to show the company name and this is what stood behind the

equipment they were trying to sell. Next, other transit forms of advertising (i.e. bus, taxi, airplane,

subway, etc.) were considered. According to (MA), it was felt there was no real use for this.

The primary reason behind this was that, with the world as your market, it makes no sense to

advertise on a local bus system. However, for (PM), the idea of utilizing airport signs (as a form of transit

advertising) was mentioned here as an excellent way to reach buyers as they arrived to this part of

Sweden, which they often did on visits to the seller's factory or to other mills in the area.(SM)simply

added that such advertising efforts were reaching too many who would not be interested in capital

equipment from a company such as theirs, and this was considered a waste ("too big of an effort...not

equipment, but it still got the "Si" name out there. For(SM),the answer was the same as with transit

advertising (see above).

As for sports advertising (team uniforms, stadiums), (MA) explained that the main (worldwide)

headquarters for the firm did support some major sporting events, but at the local level the firm did

limited promotions budget, the firm had to rule out certain ways of supplying information to buyers.

Their choice for this was to rule out many forms of mass-media communication, like those mentioned

above, be it outdoor, print, or broadcast advertising. (PM) explained that the parent company

sponsored some events, but other (more local) sponsoring was not done due to budget constraints. It

was added that they could (and would) do more if they had more money. (SM)felt that perhaps a local

ice hockey arena sponsorship would be important, but mentioned that such a marketing communication

effort would be to (for example) show workers at local mills that you support them in another way...by .

As for other cultural events (Olympics, theater, etc.), both (MA) and (PM) felt that the sailing race

that the parent company sponsored was a good idea, as it spread the "brand" (company) name in a

unique way. (MA) then admitted that the company could definitely do more, but that the funding would

have to come from corporate headquarters. (VP) also felt that the sponsoring of the international sailing

race was a good idea, but this had to be done via corporate headquarters. It was stated by (VP) that the

sponsoring of such events helped spread the "Si" name throughout the world. For (MA), packaging and

shipping crates for the firm's capital equipment were deemed an important means by which the

up during the installation process to announce that this equipment/processes were manufactured and

being installed by "Si."

In the interview with (PM) there was agreement with the thinking of (MA). The "Si" name is on

the equipment shipped and signs being put up at installation sites were all good ways of spreading the

(brand) name.(SM)went on to state that sometimes the name was on what was shipped, other times it

was not. No further information than this was volunteered.

S 1 's logo. As for (PM), the giving of gifts to buyers was done a lot within the company. Items given away

by the firm included pens, knives, caps, golf balls, crystal bowls, vases, ties, etc. It was felt that such

items brought about a good feeling with those receiving it, so such gestures had their value.

be a sign of someone's "importance" to the selling company, and always helps to remind the receiver of

the "Si" name. (VP), on the other hand felt that such gestures were basically "a waste" and that the firm

could really do away with much of the gifts and "freebies," such as those items given away at trade

shows.

This is discussed more in the next section. As for items given away at trade shows, (MA) felt that

intangible offerings such as coffee, beer, snacks, etc., go over much bigger than do pencils, pens, etc. It

was felt that the food and beverages often brought people into the booth more than anything else. It

was felt that everyone else is giving away the pens, etc., so why not give away something a little

different? (PM) and(SM)felt that items given away at trade shows fell in line with what she said about

gifts in general (see previous section). With trade-in offers (trading in old capital equipment to obtain a

discount on the current purchase), (MA) had no comment, referring instead to that being a task best left

was explained, for example, that 30 percent was paid when the order was placed, then subsequent

it.(SM)added that this is important, as buyers are looking at pricing more and more, so anything that

affects the final purchase price should be considered important.

According to (MA), credit on purchases was often undertaken more by the buyer via a bank or

other financial institution. However, it was explained that a person from S 1 's finance department did

accompany members of the selling center at times, being used as a someone who could help to secure

financing for the buyer, if the need for such assistance existed. (PM) again had nothing to say here,

mentioned that many such "free" services were often a part of the contract with the buyer.

the same thoughts as (MA). For(SM),the use of "free" services as a sales promotion tool depended upon

the size of the order and the competitive bids. However, it was also admitted that nothing is really

"free," that any single bid covers all the costs.

Moving on to public relations tools, (MA) explained that press releases were used on a regular

basis in order to generate favorable publicity about the company in the mass media. A list of magazines

and newspaper was kept by the promotions department, but it was mentioned by (MA) that much of

what was sent out was never published. 117 (PM) added that this was a valuable marketing

communication tool and that most of the publicity they gained was surrounding a new, major order or if

The reason why was that it provided credibility and because people read it (e.g. more than ads)

and they will therefore be even more interested in the product. (VP) also expressed the firm's desire

that even more publicity be generated on Sl's orders. Turning to Si 's publicity efforts via the use of news

conferences/press retreats, (MA) explained that news conferences are sometimes called, but for only

promotions/marketing communications) handles such events, but that the department was less than a

year old and many such tools to provide information to the media and ultimately to buyers was still

being worked out and used carefully.(SM)added only that he felt the same with this as he did about

publicity in general (see section above). As a separate tool, training videos were, according to (MA),

developed to send to the buyers themselves.

making a sales call. A series of videos for those buyers who purchased certain pieces of capital

equipment were also developed, and used by buyers to learn how to use the equipment. (MA) thought

both of these were very effective tools, but for different reasons. (PM) stated that training videos were

valuable as a marketing communication tool and that more could be developed.(SM)found that

salespeople used these, with some showing the products in use and others being used to educate the

users how to operate the equipment. He said it was important as a communication tool, especially since

all the videos complimented the brochures and overheads they used when presenting. Turning to

The world headquarters provided all locations, all over the world, the same notebook filled with

instructions on how such materials should be produced. Image, coordination, and professionalism in

such materials seemed to be of great importance here. As with (MA), (PM) explained that such materials

in compliance with these regulations.(SM)added that such materials were important for the sales

managers and staff, as many times this is what you leave to a buyer. In terms of brochures, (MA) stated

that they used a variety of brochures. Many covered the company, while several others covered the

pieces of capital equipment, processes, services, etc., offered by the firm. (MA) went on to explain that

their feeling with having such a variety was due to the fact that if they could not talk to the buyer

personally, then the buyer could always refer back to the information provided in the brochure. The

feeling here by (MA) was that buyers saved/filed away such items in order to access (or obtain) the

information contained within them at a later date.

As for how they provided the brochures/leaflets, it was explained they were not sent out via any

sort of mass mailing or direct mail campaign. Instead, such promotional material was sent via requests

and developing the brochures received very little feedback on how to develop the brochures or what

customers thought of them. (PM) also stated that the distribution of brochures via requests from other

ads (i.e. calling a number, faxing a request, etc.) had been stopped, as they simply could not keep up

with the response with so few employees. (SM)added that from a sales standpoint, brochures were very

Beyond this global annual report on S 1 's parent company, nothing was used externally as a marketing

communication (i.e. public relations) tool. (PM) had nothing to add to this way of thinking offered by

(MA).(SM) felt basically the same, as S1 itself did not provide these for just their division. As for a

company newsletter, (MA) explained that what they really produced here was a company magazine,

made available to both employees but primarily to customers. The mailing list included past, current,

and potential customers of Si. The reason for this form of communication was it's perceived

value.. .instead of a brochure or a simple newsletter, a magazine may be perceived as more valuable and

and potential buyers was a good way to show that Si remained competitive in the marketplace and had

a lot of deliveries, as many of the articles in the magazine were about Sl's latest orders and projects

around the world. Written bids/spec sheets/quotations were considered to be a valuable marketing

communication tool, according to (MA).

The reason why this was considered so important was because this form of communication was

based on specific requests made by the buying firm. However, the front page was the only portion of the

bid that was done by the promotions department. The rest of the material was put together by the sales

portion of the marketing department, with very little communication between these two areas. (PM)

only repeated basically what (MA) had explained in that interview.(SM)felt that bids were very

important as a communication tool, as it provided what the customer was looking for and had asked for.

Finally within the PR compartment of the marketing communication toolbox are holiday or any other

form of personal greeting card that was sent out to buyers. According to (MA), such items were sent

out, however it was primarily Christmas cards that were sent. (PM) stated that the only sort of card they

sent out was at Christmas to customers, and that this built a certain amount of goodwill.(SM)added that,

since he enjoyed receiving Christmas cards from company contacts, he assumed those he sent were also

Turning our attention to the Internet, (MA) felt that everything from Email to a Web page

presence were something for the future. It was explained that theirs was a conservative company in a

conservative industry. With this it was explained that, with regards to E-mail, only some in the company

used it, and few if any used it as a means to contact or stay in touch with buyers. For many it was either

For the interviewee, it was not yet taken seriously as a communication tool because it, "does not

look like a real document." With this it was explained that a real letter or even a fax sheet is taken more

seriously as it arrives as a "real" document.(SM)admitted that Email was used to keep in contact with

were his choices for contact with customers via telecommunication lines. He admitted the reason for

this was due to the fact that this is what he was used to.. .and so were many of the buyers. As far as

newsgroups or chat functions via the Internet, both of which were initially included in the interview

guide, these tools were not even considered nor was there really an opinion offered about these as a

These two items were also taken off the interview guides provided in Appendices A andB. As for

on-line video conferencing from the computer, this was not used but seemed to peek (MA)'s interest, as

possibilities for the future. For(SM),online video conferencing such a means to communicate with a

buyer could help at times, but that even though face-to-face communication was 121 occurring through

such technology, it was not the same as actually being in the same room together. He added that it did

not feel that such a device would help to build a relationship with the person he was on-line with.

However, a company Web page was of interest to (MA), as it seemed to be the communication vehicle

of the future. However, during this interview, it was revealed that at the offices where Si was located,

only six of 300 employees (at this particular office complex) had access to the World Wide Web, but all

had E-mail. In addition to this, it was the global headquarters that had a Web-page presence, with Si in

Sweden not yet having its own home page. (MA) admitted that the Web page by the corporate

headquarters seemed to be more a "presence" than anything else, while a competitor was using the

Web more seriously, with product information, press releases, and most importantly local contact

people for buyers to obtain more information from.

would use the Web to do so. (MA) felt that computerbased information such as E-mail and especially

the World Wide Web would become bigger, but didn't know how, when or why. In conclusion, it was

stated that the Internet, as of this interview, had not changed the way in which they provide

information to buyers. According to (PM), a Web page specifically for their division made sense, but she

would take time and financial resources, as they would want one person solely in charge of the division's

Web page and keeping it up to date. In conclusion, it was admitted that the Internet and more

specifically a company home page would be part of their future in supplying information to buyers and

that it would eventually replace at least some of the other marketing communication tools currently