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MARKETING COMMUNICATIONS ON B2B MARKETS

Conference Paper · April 2017

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 MARKETING COMMUNICATIONS ON B2B MARKETS
Lucie Povolná

Abstract
Business to business (B2B) communications have long been based on personal contact. With
the development of internet technologies, however, part of B2B communications has moved
online, and this trend will continue to increase. This article investigates how the marketing
communications on modern B2B markets have been changing and provides information to
European industrial companies on how to modernize their current communication techniques.
In order to report on the current state of B2B communications, a literature review has been
conducted. A qualitative study among representatives of the European machine tools market
followed, so as to determine the state of communications in a specific part of the market. It was
discovered that the European B2B marketers in the field of machine tools have an overview of
the new marketing communication techniques, but the use is narrow. This shows the large
reserves in marketing techniques and the opportunities to make the communications strategies
of these companies more efficient. Future research should validate these findings by means of
quantitative methods to propose actions for restructuring their communications strategies and
techniques, as in the following decades the millennial generation will take over management
positions and will call for modern forms of communication.

Keywords: B2B, communications, content, customer, online marketing.

1 INTRODUCTION
1.1 Communications on B2B markets
Current corporate communications have shifted to the concept of integrated marketing
communications. The basics of marketing communications are still relevant, but it is necessary
(Batra and Keller 2016) to apply them in new ways. Marketing communications optimization
leads to increased communication efficiency, which brings benefits (Luxton, Reid and
Mavondo 2015) in the form of increased brand values and financial returns. In other words,
integrated marketing communications has become a competitive advantage (Ellis 2011) and
maximizes the impact of communications.
Linsday (2016) points out that any communication stimulus represents the brand. This means
to communicate relevant content instantly through all communication channels at once and to
be able to pass information on and offline. Information itself has become the dominant
component of marketing (Rowley 2008), and it has become much more personal.
Setting the optimal marketing communication programme requires the knowledge of the market
environment and the current trends. Marketing communications is a crucial component of
modern marketing, which has become more complicated (Batra and Keller 2016) with the
recent advent of the Internet and other digital tools. The Internet facilitates interactivity, and
allows global coverage and accessibility 24/7. The internet combines (Evans, King 1999) the
benefits of all media, since it works with text, audio and visual means. This makes the Internet
efficient in comparison with other forms of marketing communications.
A B2B advertising message must be more than mere information; “it needs to be liked” (Baack
et al. 2016). Creative advertisements encourage a stronger relationship than non-creative
advertisements, moreover, they catch managers´ attention and are more interesting, which has
an impact on shaping the relationship to the advertisement. A popular advertisement (Baack et
al. 2016) leads to a better brand awareness, a better relationship with the brand, and to stronger
business intentions. A customer devotes his time (Barta and Keller 2016) only to certain brands
in a certain time. It is inevitable to make differences among various customers and carefully
select a way to communicate with them.
Industrial market companies use several communication channels at the same time. Nanji
(2014a) contends that the most effective channels for the acquisition of leads and potential
customers are trade fairs, internet searches and emails. As the purchase goes through various
stages, the channels through which buyers are gaining information are changing. While
searching for the first information (Nanji 2016), the B2B buyers use social media, and as they
proceed to the purchase, they use internal information.

1.2 Modern Customer

Modern B2B buyers require the personal approach. Account-Based Marketing, or Key Account
Marketing has been developing recently. In order to identify the customer properly Vajre (2015)
stresses the need for interaction with the team of sellers, the attendance of trade fairs and
contacting the former (and potential) customers.
In general, existing customers possess much larger value than customers which are new to the
company and the extension of cooperation with them is essential for maximizing the value of
the company. An existing customer care allows understanding the customer better, finding a
valuable insight (Johnson 2016) and discussing with him objectives and vision, so that both
sides can understand each other and so the customer may accept (Saldi 2015) the sellers ideas
and solutions.
Current customer obtains information before he ever comes into contact with the seller. Davies
(2015) states that obtaining information used to make approximately 10% of the purchase
process earlier, now it is 50-70%. In the future, this number will continue to grow. The internet
provides a huge amount of information in the forums, user groups, social networks, or in queries
in Google to the potential clients. The personal contact comes in the later stages of the shopping
process, which also saves costs to the seller.
The reason why the company loses its clients, or why leads do not turn into customers is the
bad customer understanding of the value offered. It is caused (Batra and Keller 2016, Finn
2016) by poorly performed positioning. For a proper understanding the customer it is important
that marketing and sales (business) departments cooperate. There is a need (Finn 2016) to
periodically transmit information and better understand what the customer´s expected value is.
The competitive intelligence is of great importance, however, tends to be underestimated. It
provides the overview of the industry, but also (Cupman, 2015) helps one´s own differentiation.
Furthermore, it is highly beneficial to learn from mistakes and ask those customers who ended
up with no purchase, what did make them to do such decision.

2 LITERATURE RESEARCH
On basis of the studied materials the most important trend in B2B marketing communications
were summarized in the following points: events, content, webs, social media and mobiles. The
most important issues for the marketers´ success are: the key advantage of the product, what
influences the customers´ decision and why the businesses are losing their clients.
The author assumes mostly literature from the U.S. The most successful companies of the world
have their origins there and their business technique is highly developed. Another reason is that
the most number of information on B2B issues was offered by U.S. resources. At the time of
research there was not much academic literature available, which is a subject of academic work
of Lilien (2016) who pinpoints that there is a notable disbalance between resources on B2C and
B2B literature.

2.1 Selected Trends in B2B Communications

Events
The most part of B2B marketers participate on the events, especially conferences, trade fairs,
exhibitions, webinars etc. (Vohra, Seethapathy 2014). Participation in trade fairs is essential for
the company’s´ communications. At trade fairs it is very advisable (STI 016) to have agreed
the meetings in advance, as all the businessmen are very busy and they have almost no time
left. The sellers must therefore be able to impress very quickly. It is also important to participate
at professional forums (national and local), where buyers are present. It is a great challenge to
become speaker at such events.
The most popular in the United States are conferences (Vohra, Seethapathy 2014) and a lot of
marketers participate or organize them. Similarly do the fairs, exhibitions, but also the webinars.
These events aim mainly to find people interested in the product, build brand and engage the
customer.
Content
B2B buyers are focused on gathering information to reduce risks (Swani 2016) through the
comments and opinions of others – they seek the relevant information. The use of right
information (Handley 2015), and the popularity of the content (Rapp 2013), has become a
competitive advantage for the firm in the market. Therefore, the marketers are trying to
implement strategies (Swani 2016) that will encourage customer´s interaction in order to affect
sales, generate leads, build relationships, increase brand awareness, and loyalty, or speed up the
buying decision. In the context of social networks, the popularity of the content (Rapp 2013,
Swani 2016) affects sales, brand, brand performance, loyalty and social media ROI. Handley
(2015) points out that three-quarters of the companies have a strategy for content creation, but
only a third of all create content based on any documentation.
A survey of Seismic (2016) refers that the content is based on intuition rather than on the basis
of the survey, and the reasons given for the lack of content targeting are the absence of
technology, resources and data. Study of the State of Digital Marketing Report (2016) denotes
that U.S. B2B marketers agree that white papers, webinars and case studies are the most
effective of the content tools. According to the study of CMO Council (2015) the most
important obstacles to bring content to potential customers are poorly targeted content, budget
constraints or the content is not important for the target group, etc.
Websites
Corporate websites provide a lot of information. According to Nanji (2014b) the corporate
customers lack most on sites the complete contact information, a list of clients and research
reports. The customers (2015 B2B Web Usability Report 2015) also miss details on products
and technical support, price lists and product evaluation. Buyers most often leave the web sites
because of the missing message, no contact information and animated advertisements.
Marketers often create web sites for its brand, where they place the contents and post it with
the expectation that the follower or fans will like this information and share it (De Vries,
Gensler, Leeflang 2012) on social media where content is created by the customers without the
sellers.
Social Media
Social networks is a channel for comprehensive brand communication, where its difference can
be expressed. They create (Waks 2016) the effect of a community and the brand impression,
which must be consistent with the corporate values. The social media need a strong content
strategy. Social media are an important tool (Siamagka et al. 2015) for attracting new customers
and cultivating relationships with existing customers. The use of social media has (Michaelidou
2011) the power to create competitive advantage and greater performance (Lau 2011) of the
entire communications.
Linkedin takes the lead among the social networks, it is followed by Twitter and Facebook in
the U.S. (DEMANDwave 2016, Regalix 2015). Most of the leads from social media come from
Linkedin and the most successful leads from Linkedin come from the discuss groups. The
analysis of the debate of the target audience (Rethinking the B2B Buyer´s Journey 2016) allows
the unveiling of their issues, which enables the firms to create content. These activities should
be complemented (Khan 2015) by personal communication.
Siamagka et al. show (2015) that the adoption of social media is significantly affected by the
innovating character of the company and the perceived usefulness. The more innovative, the
more willing the companies are to accept them. (Michaelidou 2011).
Social media do not require a high initial investment. Platform for social media are owned and
managed by another company and the content is made up by organizations, external
stakeholders and potential and existing customers (Siamagka et al. 2015).
B2B companies do not accept social network (Michaelidou 2011) because they see it
unimportant in their industry, they feel uncertainty about how to reach their business goals
through the social networks. Other barriers (Siamagka et al. 2015) are represented by the
concerns about reputation, legal affairs, lack of senior management support party and
unwillingness to lose control over the brand. According to Stelzner (2015) B2B marketers still
cannot join Facebook fans through likes and comments which would effectively hit their
audience.
Mobiles
Mobile devices are ubiquitous and they enable to execute the problem quickly. SMS messages
can be integrated into the sales strategy (Weeks 2016, Waks 2016) together with e-mails and
telephone calls. The message should go straight to the point. Texting during the sales process
(Weeks 2016) increases the chance of up to 40% to turn potential customers into actual
customers, but it is not appropriate (Waks 2016) to text before the first contact is made.

2.2 Research Problem

The aim of the research is to find out basic information about the tools of marketing
communications used by engineering firms on the European B2B markets. We have reasons to
believe that: personal contact is essential in B2B, content posted online is an important source
of information for buying machinery and the use of social networking has become a necessity.

3 METHODS AND DATA

On the basis of a literature research both from academic sources and from the professional
research organizations sources, the content and structure for personal interviews were designed.
The aim was to find out what tools of marketing communications are used by machinery
vendors operating on the European market. This part of researched was realized in March and
April 2016.
Qualitative research included informal in-depth interviews (April - May 2016) and the semi
structured interviews (June 2016) with the dealers of the Czech machine tools producer across
Europe. The broad variety of experts provided very wide picture of findings. The informal in-
depth interviews were conducted individually with 7 specialists, who were traders acting on the
U.S. B2B markets, representatives of the CzechTrade Chicago, a representative of the Embassy
of the Czech Republic Washington DC, representatives of Czech machine tool manufacturer
exporting to all over the world. The brainstorming method was used during the interview.
The semi structured interviews were conducted with the dealers of the Czech machine tools
producer, who operate across Europe (25 persons). The interviews were realized on the
occasion of the annual congress of these retailers. The congress provided an opportunity to
obtain a large series of information and attitudes from various branch experts. The short time
period for the research realization was in compliance with ceteris paribus as the longer research
time would increase the risk of data inconsistence.
The interviews were focused on determining the state of what forms of communications were
the most important for these sellers, the representatives of the B2B market, and what their
relationship to the use of internet tools was. The interviews started with questions about where
did the representatives of the B2B machine tool market search for information about the
producers, what type of content did the customers prefer, how important the personal contact
was, what type of online information did the sellers use and how important it was; finally the
sellers were asked about the reasons for losing the business cases and about competition
advantage of the producer.

4 RESULTS
4.1 In-depth interviews
As mentioned in the previous part, B2B market in U. S. was taken as an inspiration for its major
advance and a wide information base. U.S. B2B markets are characterized by their great
professionalism and problem-solving without emotion. It is one of the most challenging and
fastest markets; the suppliers just like the buyers have tightly-defined and respected positions.
Experts said that it is not possible to succeed in these markets without high-quality and
technically-perfect products. According to experts an American customer is generally
pragmatic and can be reached only by a balanced mix of technical level of product, quality,
price, support and communication. The communications environment is transparent, the
dealings are open, prompt and direct. If a company wants to succeed in the United States, it
must think about the business cases from the position of the other party, realize that a customer
decides upon the profit and needs an extraordinary offer. At present, the biggest challenges of
B2B marketers in the United States are building brand, expansion and the fight against financial
constraints.

4.2 Semi-structured interviews

The most important resources of information about the machine tools products for the
customers are the colleagues in the organization, vendors themselves (both in person and on the
web), reviews by users and trade fairs. The most important form of the content obtaining is a
personal meeting with the manufacturer and his brochures. The personal contact is essential,
the information provided online is searched for on a regular basis, often rather as
complementary.
The usage of online channels by buyers benefits vendors with better informed customer, it also
attracts new customers and it provides faster realization of upgrading the products. The online
information is not being used on a regular basis, the content does not publish enough
information, websites are too complicated, the customers are afraid of creditworthiness and
management do not support the use of online information are the major obstacle to use them.
The most popular social networking sites are Facebook, LinkedIn, Google + and almost half of
the interviewers do not use them at all. The most effective business techniques are references,
internet search, but also participation in trade fairs and e-mailing. The vendors do not see the
social media effective enough.
Generally they mostly obtain shared experiences, impressions of the products and its reviews
from online channels and they conduct their own data analysis online. While dealing with
customers they conduct a personal meeting, then write e-mails and make telephone calls.
European machine tool vendors do use the modern tools of marketing communications, but
within a limited range. Traditional forms of communications remain relevant. Online content is
very important for the companies, but they do not always rely on it.

5 DISCUSSION
The company should understand what a key advantage of its product or a brand over the
competition is and what the determining factors of customer´s deciding are. The correctly made
positioning is the basis for marketing communications. Sharing of customer experience across
departments, knowledge of the competition and searching for the causes of the failure are
significant for making out the efficient strategy.
Traditional forms of communications have not lost its importance, but some have moved into
the form of freely available information. It can be reached by the potential customers according
to their needs and save the costs of numerous personal encounters in the early stages of the
purchase process to both parties. There is an obvious need for maximum use of online channels,
the creation of relevant content and the best possible understanding the customer.
Various industries have been digitized at different levels. According to McKinsey Global
Institute (2015) the sectors with the highest productivity (ICT, media, services, and financial
services) are considerably digitized, although in recent years other industries have advanced
forward significantly. On B2B markets, the more advanced the production technology is, the
more digitized communications are, and vice versa (like more traditional branches e.g.
construction).

6 CONCLUSION
The aim of this paper was to describe current trends in marketing communications on B2B
markets and suggest recommendations for companies that want to enter these markets.
Numerous resources have been studied and experts and vendors from B2B market have been
interviewed. The marketers on B2B markets use the modern ways of communications including
the social media but they seem to be rather traditional and still rely on personal contact. The
ways of communications during the purchasing process has changed significantly in accordance
to various phases. Nowadays the customer can come to the personal meeting very well informed
and prepared better than ever before. Creating an effective communications mix means a
competitive advantage on B2B markets. The basis for the creation of effective communications
is the best possible knowledge of the customer, which is inherent to the most successful
companies. The use of the proposed recommendations reduces the risk of business failure and
thus reduces the financial losses.
Research in the area of marketing trends will belong to important issues in the near future, since
marketing is currently a real driver of the business. This paper has identified current trends, and
in the future it will be complimented by a quantitative study on the actual state of these activities
among the vendors in the area of mechanical engineering on the European markets.

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Contact information
Ing. Lucie Povolná
Tomas Bata University in Zlín
Faculty of Management and Economics
Mostní 5139
760 01 Zlín
+420475284709
[email protected]

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