2007:202

BACHELOR THESIS

Sales Promotion
in a B2B Setting

Bobby Andersson
Aman Hailemariam

Luleå University of Technology

Bachelor thesis
Business Administration
Department of Business Administration and Social Sciences
Division of Industrial marketing and e-commerce

2007:202 - ISSN: 1402-1773 - ISRN: LTU-CUPP--07/202--SE

 Acknowledgments

Acknowledgements

The last ten weeks we have been writing a bachelors thesis, a time full of both expected and
unexpected challenges. The thesis work have brought us lots of new impressions and
influenced the way we look at research and sales promotion. Today, when the writing of the
thesis finally has come to an end we hope that our thesis can contribute to fellow student’s
better understanding of sales promotion in B2B settings.

We would like to express appreciation to people who helped and supported us during our
thesis writing.

Thank you, Mr. Lars Vikström at Minelco AB for reserving time for an interview as well as
providing us with valuable information regarding sales promotion in a B2B setting. Finally
we would like to thank our supervisor Mr Tim Foster for his support and active supervision
through the whole time we were working with our thesis.

Aman Haile-Mariam Bobby Andersson

Luleå University of Technology 2007-05-23

 Abstract

Abstract
Sales promotion has been in constantly growth since the 1960’s and have today become one
of the key factors in the promotional mix. The methods used have become more sophisticated
and an increasing number of companies are realizing the importance of a well structured
promotion strategy.

The purpose of this thesis is to provide a better understanding on how sales promotion is used
in B2B setting. In order to reach this purpose, research questions focusing on the objectives
of sales promotion, as well as which sales promotion tools that were used were stated. Based
on these research questions, a review of the relevant literature was conducted, resulting in a
conceptual framework, which was used to guide this study's data collection.

A qualitative, case study approach was used, using interviewing at an industrial company in
Sweden as the primary data collection tool. The findings indicate that, although the
individual objectives of the tools can be different they can still be used overall to lead to the
same overall goal. It was also found that the focus is not always on using sales promotion
tools to generate sales, but to improve relationships. As for the tools used, it was found that
there are commonly used sales promotional tools in B2B settings. More specifically, gift
giving can be deemed inappropriate in certain contexts and should be used carefully.
 Sammanfattning

Sammanfattning
Försäljningsfrämjande aktiviteter har sedan 1960 befunnit sig i ett växande stadium och har
idag kommit att bli en av de viktigaste faktorerna i marknadsföring. Metoderna som används
har blivit allt mer sofistikerade och ett växande antal företag inser vikten av en välstrukturerad
försäljningsfrämjande strategi.

Syftet med denna uppsats är att förbättra förståelsen angående hur försäljningsfrämjande
åtgärder används i Industriella sammanhang. För att kunna uppnå detta syfte, så togs
forskningsfrågor fram som nämnde målen med försäljningsfrämjande verksamhet samt de
olika försäljningsfrämjande åtgärderna. Baserat på dessa forskningsfrågor, så togs en lista
fram på relevant litteratur, som resulterade i ett konceptuell ram, vilket fungerade som guide
när data skulle samlas in till denna studie.

En kvalitativ forskningsmetod i form utav intervjuer som tillämpades på ett Industrielltföretag

i Sverige användes som främsta data insamlingsmetod. Slutsatserna indikerar att trots de olika
försäljningsfrämjande åtgärdernas olika syften så kan de generellt amvändas för att nå samma
mål. Det var också funnet att försäljningsfrämjande åtgärder inte bara används för att öka
försäljningen utan även för att förbättra relationer. För verktygen som användes så visade det
sig att det finns verktyg som är mer vanliga vid försäljningsfrämjande åtgärder i industriella
sammanhang. Mer specifikt, att ge bort gåvor kan ses som opassande vid särskilda
sammanhang och bör noggrant överses.
 Table of Contents

TABLE OF CONTENTS

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

1.1 Background...................................................................................................................................... 1
1.1.1 B2B....................................................................................................................................................1
1.1.2 B2B Sales Promotion.......................................................................................................................2
1.2 Problem Discussion ............................................................................................................................2

1.3 Purpose& Research Questions...................................................................................................... 4

1.4 Outline of the Thesis ....................................................................................................................... 4

2. LITERATURE REVIEW.................................................................................................. 6

2.1 Objectives of Sales Promotional Tools......................................................................................... 6

2.1.1 Gift Giving .........................................................................................................................................6
2.1.2 Cause-related Promotions/Sponsorship.........................................................................................6
2.1.3 Price Discounts ................................................................................................................................7
2.1.4 Events ...............................................................................................................................................7
2.1.5 Free Trials.........................................................................................................................................7
2.1.6 Short-term vs. Long-term effects ....................................................................................................7
2.1.7 Intrinsic vs. Extrinsic Promotions ....................................................................................................8

2.2 Sales Promotional Tools................................................................................................................. 8

2.2.1 Gift Giving .........................................................................................................................................8
2.2.2 Cause-related Sales Promotions/Sponsorship ..............................................................................9
2.2.3 Price Discounts ................................................................................................................................9
2.2.4 Events ...............................................................................................................................................9
2.2.5 Free Trials.........................................................................................................................................9

2.3 Conceptual Framework................................................................................................................... 9

2.3.1 Conceptualization –objectives of sales promotion.........................................................................9
2.3.1 Conceptualization– Sales promotional tools ................................................................................11

2.4 Frame of References .............................................................................................................. 12

3. METHODOLOGY .......................................................................................................... 13

3.1 Research Purpose ......................................................................................................................... 13

3.1.1 Exploratory......................................................................................................................................13
3.1.1 Descriptive Research.....................................................................................................................13
3.1.2 Explanatory Research ...................................................................................................................14

3.2 Research Approach: Qualitative .................................................................................................. 14

3.3 Research Strategy: Case Study ................................................................................................... 14

3.4 Data Collection .............................................................................................................................. 15

3.5 Sample Selection ........................................................................................................................... 15

3.6 Data Analysis ................................................................................................................................. 16

 Table of Contents

3.7 Validity and reliability.................................................................................................................... 16

4. EMPIRICAL DATA........................................................................................................ 18

4.1 Case Presentation –Minelco AB .................................................................................................. 18

4.2 RQ1- Objectives of Sales Promotions ......................................................................................... 18

4.2.1 Gift giving ........................................................................................................................................18
4.2.2 Price Discounts ..............................................................................................................................19
4.2.3 Events .............................................................................................................................................19
4.2.4 Free Trial ........................................................................................................................................20
4.2.5 Education ........................................................................................................................................20

4.3 RQ2- Tools of Sales Promotions ................................................................................................. 20

4.3.1 Gift giving ........................................................................................................................................20
4.3.2 Price Discounts ..............................................................................................................................22
4.3.3 Events .............................................................................................................................................22
4.3.4 Free Trial ........................................................................................................................................22

5. DATA ANALYSIS ......................................................................................................... 24

5.1 Data Analysis- Sales Promotional Objectives ............................................................................ 24

When analysing and comparing data collected from previous studies with the empirical data
gathered from the case study of Minelco, one can see that the within case study and the theories
discussed by several researchers do to some parts fit with each other ..............................................24
5.1.1 Gift Giving .......................................................................................................................................24
5.1.2 Price Discounts ..............................................................................................................................24
5.1.3 Events .............................................................................................................................................25
5.1.4 Free Trials.......................................................................................................................................25
5.1.5 Education ........................................................................................................................................26

5.2 Data analysis- Sales Promotional Tools .............................................................................. 26

5.2.1 Gift Giving .......................................................................................................................................26
5.2.2 Price Discounts ..............................................................................................................................26
5.2.3 Events .............................................................................................................................................26
5.2.4 Free Trials.......................................................................................................................................27

6. FINDINGS AND CONCLUSIONS .............................................................................. 28

6.1 Which are the objectives of sales promotion in a B2B setting? .............................................. 28

6.2 Which sales promotional tools are commonly used in B2B settings?.................................... 29

 Gift giving could be inappropriate in western business context and should be carefully
considered before given. .................................................................................................................... 30

 Price discrimination is not appropriate to use in B2B settings since it could hurt business
relationships. ....................................................................................................................................... 30

6.3 Implications.................................................................................................................................... 30
6.3.1 Implications of Theory....................................................................................................................31
6.3.2 Implications for Practitioners .........................................................................................................31
6.3.3 Implications for Future Research ..................................................................................................31

LIST OF REFERENCES ...................................................................................................... 33

 Table of Contents

APPENDIX A ........................................................................................................................... 2

Sales promotion .................................................................................................................................... 2

Sales promotional objectives/benefits ................................................................................................ 2

APPENDIX B ........................................................................................................................... 2
 List of Figures

LIST OF FIGURES

Figure 1.1: Customer learning curve……………………………………………………………………….4

Figure 1.2: Outline of the Thesis…………………………………………………………………………….5

Figure 2.1: Frame of reference……………………………………………………………………………...12

Figure 3.1: Schematic Presentation of Chapter 3……………………………………………………….13

Figure 4.1: Volume Incitement Graph…………………………………………………………………......14

1
 Introduction

1. Introduction
The first chapter will introduce the the research area and provide the thesis with a
background. First the background will briefly discuss the concepts; sales promotion and
business to business (B2B) marketing, leading to the research area; sales promotion in
business to business markets within the problem discussion. The problem discussion will be
the fundament for the research purpose and research questions.

1.1 Background
Promotion is one of the key factors in the marketing mix and has a key role in market success.
Promotion is used to ensure that customers are aware of the products that the organization is
offering. The promotional mix is the combination of the different channels that can be used to
communicate the promotional message to the customers. The channels to be used are;
advertising, direct marketing, public relations and publicity, personal selling, sponsorship and
sales promotion. (Rowley, 1998)

The importance of sales promotion has increased since the 1960’s and also the sophistication
of methods used. Sales promotion is sometimes considered as an activity of less importance
but companies increasingly realize the importance of having a well planed and structured
program for sales promotion. All businesses need to communicate to the customer what they
have to offer. (Jobber & Lancaster, 2006)

Dwyer & Tanner (2006) states that Business customers are larger than individual customers;
meaning that each business customers is more important to the economic situation of the
business marketers company. There are also fewer business customers, so each business
customer is also more important to the economical situation of the company; unhappy
customers can affect the business marketers business in a noteworthy way. (Ibid) According
to Fill and Fill (2005) the B2B market for goods and services bought and sold is far larger
than the consumer market. The business market includes many different types and sizes of
organizations that cooperate and create relationships of different importance and duration.
(Ibid)

1.1.1 B2B

Today, there are several definitions explaining the concept of B2B marketing; Dwyer and
Tanner (2006) states that business marketing is about marketing services or products to other
companies, governments institutions, and other organizations.

The B2B marketing concept is also explained by Brierty, Eckles, & Reeder (1998) as;
“Business marketing consists of all activities required to provide goods and services to
customers these customers include producers of both natural and fabricated products,
government agencies and service producing organizations including institutions, wholesalers
and retailers. These diverse customers can use products and services to fabricate their own
end products or to facilitate the operation of their business”.

B2B marketing is totally differentiated from consumer marketing because the business buyers
are not acting as consumers consuming the products themselves. (Fill & Fill, 2005)

1
 Introduction

The factors that are significant for business markets are the, nature of demand, the buying
process, international dimensions and the importance of development and improvement of the
relationship between organizations in the buying and selling process (Ibid).

1.1.2 B2B Sales Promotion

“Sales promotion are marketing and communication activities that change the price/value of
a product or service perceived by the target, thereby (1) generating immediate sales and (2)
altering long-term brand value”. (Shultz, Robinson, & Petrison, 1998)

According to Kwok (2005) there are two types of sales promotion; monetary and non-
monetary. These two types of sales promotion are separated and categorized by their
significant differences: Monetary sales promotion are transactional and recognized for
providing immediate rewards to the customer, e.g. discounts, coupons, rebates and price
packs; non monetary sales promotion are recognized for providing delayed rewards and being
relationship-based, e.g. sweepstakes, free gifts and loyalty programs. (Ibid)

Shultz, et al. (1998) says that sales promotion generally works on a direct behavioral basis
rather than effecting awareness or attitude. It is continuously said that most types of sales
promotions affect the decision-making and purchasing stages of the buying-process directly.
Compared with other tactics sales promotion generally has less long-term effectiveness, this
means that that sales promotion generally has less long-term effects and creates more
immediate results. (Ibid)

The extensive use of sales promotion has led to considerable debates concerning whether or
not it is effective. Critics mean that sales promotion are ineffective in the long run and lead to
loss in market share since it makes the consumers promotion prone. Other researchers have
shown the opposite; that sales promotion is effective in the long-run since it leads to increased
sales and profit. (Kwok & Uncles, 2005)

1.2 Problem Discussion

According to Low & Mohr (2000) manufacturers continue to spend a large amount from their
communication budget on sales promotion. They allocate around 75 percent of their
marketing communication budgets to sales promotion.

Blattberg & Neslin (1990) states that sales promotion activities conducted by manufacturers
and retailers can be divided into three categories:

 Consumer promotions

 Trade promotions

 Retailer promotions.

Consumer promotions (e.g. coupons, samples, contests, sweepstakes, and price packs) are
typically directed by manufacturers to increase the incitement for purchases by consumers.
Trade promotions, such as case allowances and bill-backs, are designed by manufacturers to
inspire marketing intermediaries or channel members to stock and promote products. Retailer
promotions (e.g. price cuts, store displays), are started by retailers to attract shoppers and in-
store purchasing. (Ibid)

2
 Introduction

The sales promotional tools companies are using are divided in value increasing and value
adding tools. Value increasing tools are such as price deals, coupons and refund offers while
value adding promotions are leaving the price and quantity of the core product untouched.
Instead value are added to the product, for instance a free gift could be added. (Peattie &
Peattie, 1995)

The advantage of value adding is that they do not risk being involved or starting any price
wars. Trying to put effort on value adding and value increasing promotions often lead to
success but there is no guarantee. The main difficulty for companies trying to be competitive
through the use of sales promotions is to choose the tool most appropriate to the company’s
brand and to the market where the company’s products exist. (ibid)

Alvarez & Casielles (2005) say that sales promotion is a stimulus that is offered from time to
time, and encourage publicity that will lead to action for purchase of a certain product. Sales
promotion techniques are techniques that immediately try to affect customers buying
behavior. Research is telling that sales promotion activities should be done infrequently, when
the customers do not expect it. If the customers are aware when the sales promotion activity
will be headed, then the results will not be as successful.

Alvarez & Casielles (2005) continues by saying that because the sales promotion is conducted
from time to time, this is not something done on impulse, sales promotion activates have to be
well prepared, organized and integrated in the company’s marketing plan. It is also crucial for
the companies to decide what the objectives for the sales promotion are. When the objectives
are decided, the choice of promotion technique can be decided. The sales promotion activities
chosen will depend on the objectives.

However no matter what sales promotional tool one company will choose it will increase
brand awareness and it will also encourage customers to try new goods if they are managed in
a strategically and well organized way. (Ndubisi & Moi, 2005)

Any successful B2B strategy has to help the customer to be loyal and supportive to the firm
and its products. The customer do not just get a need, the B2B marketer have to help the
customer though getting him to feel a need and then buy the product and finally become loyal.
(Hellman, 2005)

When a B2B marketer wants to develop strategy driven promotions that motivate B2B
customers, they have to find a solution to the problems with purchase barriers. First some key
questions have to be answered; who is the true decision-maker at the targeted company; what
excites the decision-maker; what is holding the buyer back. When these questions have been
answered then the type of promotional strategy can be chosen and the sales promotional
technique derived will be depending on the company’s objectives. (Hellman, 2005)

In order to develop a successful sales promotion strategy a clear definition of the targeted
market must be included. It is important to understand why the potential customers are not
buying the products and develop a specific program to overcome these barriers. To
understand the customers mental process the Customer learning curve can be of importance
(see figure 1.1).

3
 Introduction

1. Need
2. Awareness
3. Access
4. Motivation
5. Purchase
6. Know-how
7. Experience value
8. Retention/loyalty
Figur 1. 1: Customer learning curve
Source: Journal of business & Industrial Marketing, Vol. 20, number 1, 2005, p. 4-11

There are different types of sales promotional tools and they affect sales, profitability and
value added to the brand in different ways. (Srinivasan & Anderson, 1998)

Therefore, it is appropriate to study sales promotion from a B2B perspective and further
investigate the impact that different sales promotional tools have in an industrial market.

1.3 Purpose& Research Questions

The purpose of this study is to provide a better understanding on how sales promotion is used
in a B2B setting. Based on the problem discusson the following research questions are stated:

RQ2. Which are the objectives of sales promotion in B2B settings?

RQ1.Which sales promotional tools are commonly used in B2B settings?

1.4 Outline of the Thesis

As shown in figure 1.2; this study consists of six chapters. The first chapter provides the
background of the thesis subject which leads to the problem discussion. From the foundation
of the problem discussion; purpose and research questions are formed. Chapter two provides
with theories presented in previous research related to the area of B2B sales promotion. The
methods we used to conduct our research are presented in chapter three. In Chapter four
empirical data collected from our case study are presented. Chapter five will go within the
case and compare the empirical data to theories discussed in the conceptual framework.
Finally, Chapter six will present findings and conclusions of the thesis.

4
 Introduction

Figur 1. 2: Outline of the Thesis

5
 Literature Review

2. Literature Review
The previous chapter introduced the area of B2B sales promotion as an essential part in B2B
marketing, finally the chapter was finished by stating purpose and research questions. This
chapter will review studies that are significant considering our research questions and
purpose. The first section of this chapter will cover the different types of sales promotion
within the limitation followed by sales promotional objectives.

2.1 Objectives of Sales Promotional Tools

2.1.1 Gift Giving

According to Kendrick (1990) gift promotion cannot simply be described as a tool to increase
sales volume. Even though increased sales are shown to be a reasonable objective for a gift
promotion the tool has several other objectives including;

 Enhancing the brand by using attractive branded gifts

 Providing a reminder of the brand’s existence for the customer
 Promoting loyalty and commitment from customers

According to Beltramini (2000) gift giving is built on the foundation of reciprocity theory,
which speaks for that giving can lead to a recipient’s perceived sense of obligation to return
the favor.

Corporate gifts can decrease the purchasing decision time, the time for introduction and
acceptance of new services, and also get customers to take action faster than they would
without this gift incitements. (Fan, 2006)

Other objectives with corporate gift giving can be to give the customer a feeling of reward for
past business, but also tactfully stimulate continuous business conductions. (Beltramini, 2000)

2.1.2 Cause-related Promotions/Sponsorship

According to Polonsky and Speed (2000) Cause-related promotions and sponsorship are
closely related since both provide the contributing firm with the right to promote an
association with the recipient.

Cause-related sales promotion program donations or sponsorships are based on exchanges that
provide value to the donor as well, i.e. sales. A specific objective for all cause-related
activities is to generate sales, and the sales promotional activity is undertaken to leverage the
association with the cause-related action, through i.e. advertising. (Polonsky & Speed, 2000)

Cause-related promotions may also make the customer more prone to conduct business
through the opportunity to contribute to the solution of a problem through doing business with
the corporation with the specific good cause promotional program. (Endacott, 2004)

Polonsky and Speed (2000) are saying that sponsorship can be used to; counter adverse
publicity; increase company, product or brand awareness; reinforce or alter brand perceptions;
identify the brand with a specific segment, and through these actions indirectly increase sales.

6
 Literature Review

2.1.3 Price Discounts

Price reductions are offered to the customer for a variety of reasons. The most common
reason is that the corporation wants to clear their inventory of excess merchandise. Discounts
are also used to attract new customers and by that increase the market share. Another
incitement for using discount is the expectation that customers who purchase the price
reduced product also will buy some other products to an ordinary price. The most obvious
benefit of discounts is that it influences the customer in the buying-process at the point of
purchase. The drop of price is likely to catch the attention of the customer. (Schultz, Robinson
& Petrison, 1998)

According to Inman, McAlister and Hoyer (1998) customers are more prone to purchase a
product with a lowered price. A promotion signal can be defined as a sign, marker or other
indicator of a price promoted brand to attract the attention of the customer. Past research has
shown that these kinds of promotions can generate a considerable increase in sales of the
promoted brand. This increase in sales generally occurs because the customer evaluates the
promoted brand favorable which alters their brand choice behavior. (Ibid)

According to Lal (1990) the most common held belief about price promotion is that it has a
positive effect in the short term and possibly in the long term as well. Continuously it is said
that there is no evidence showing that price promotion has a long-term positive effect, the
market share may remain the same since the increase in amount purchased is offset in the
period followed by the promotion. (Ibid)

2.1.4 Events

Corporations are using event marketing in order to accomplish a variety of objectives. The
most common objectives are higher brand awareness, increased sales and image enhancement.

Event marketing also offers the advantages to actively engage the customer with the brand
and its personality and provide the targeted market with hands-on experiences. (Close,
Finney, Lacey, & Sneath, 2006)

2.1.5 Free Trials

Previous research have shown that free trials have a positive effect in generating strong
attitudes and beliefs toward a brand, this to a greater extent than advertising and other indirect
sources. (Kempf & Laczniak, 2001)

Attention to, and memory of these experiences should be rather high, this because of that
customers are in an evaluative mind-set under trial periods and they are motivated to
remember information. The trustworthiness of information gained by trail is generally high,
this because of that the information is self-gathered and there for reliable. (Kempf & Smith,
1998

2.1.6 Short-term vs. Long-term effects

The implementation of an adequate sales promotion may guarantee an increase in the short-
term sales figures. This justifies the tendency of corporations to invest large portions of their
budget into sales promotion. (Alvarez, 2005)

7
 Literature Review

A sale promotion that attracted some new users can have positive after-effects if the new users
repeatedly repurchase later. However there is evidence speaking for no long-term favorable
effects for established brands. The prime reason is that price promotion most of the times
attract infrequent buyers and that the small number of attracted new buyers has a low
tendency to repeat the purchase. (Dawes, 2004)

Analysis of total sales data commonly suggests no negative after-effect on brand sales from
promotions. Although there has been shown that more advanced analysis can reveal such
effects, especially in categories in which it is easy to stockpile. (Ibid)

Research evidence suggests that the increase in sales of a promoted brand primarily is at the
expense of other brands, due to brand substitution. Studies have shown that 85 percent of the
short-term effect of price promotions is due to brand switching which leaves 15 percent that
was temporary category expansion. Similar studies have shown that 75 percent of the effects
of price promotion are due to brand switching and 25 percent due to purchase acceleration.
(Ibid)

According to Alvarez (2005) customers who purchase the promoted brand due to attraction of
the promotional activity may later go back to their favorite brand when purchasing a product
later.

2.1.7 Intrinsic vs. Extrinsic Promotions

The effects of the sales promotion will vary depending on the attractiveness of the product,
but on the other hand there is a possibility that customers who usually not would by the brand
acquire it because of an attraction of the sales promotion. (Alvarez, 2005)

Sales promotional activities where the product in question is critical to a prospect’s business
can be centralized on the product itself. Promotions like this could be free samples, visits to a
factory, free value-added training, etc. These different activities are known as intrinsic
motivator and are the most direct, economical and effective approach, this because a product
makes the strongest sales pitch for itself. (Hellman, 2005)

Sales promotional activities where the product or service lacks the power to intrinsically
motivate the buyer extrinsic motivators can be used. The most common extrinsic motivator is
price cutting. Price cuts or discounts are expensive and have hidden cost that makes them
unfavorable in many situations. (Ibid)

2.2 Sales Promotional Tools

2.2.1 Gift Giving

According to Fan (2006) a corporate gift can be anything from regular trip to an all-inclusive
Caribbean holiday for two. Gift giving can be used to create or maintain relationships with
key customers as well as create goodwill, and promote companies. In order to show gratitude
of business accomplished a gift can be given. (Ibid)

There are three common categories that cover most of the variety of reasons for giving gifts as
a part of conducting business. Gifts are used to show gratitude for such things as past
relationships, placing a new order, referrals to other clients, etc. In some cases gifts are given
with the intention to create a good first impression, which could help to establish a business
relationship. (Ibid)

8
 Literature Review

2.2.2 Cause-related Sales Promotions/Sponsorship

Cause-related marketing is a marketing strategy implemented by corporations to link their

name to and get associated with a particular good cause, e.g. charitable or environmental
organizations. (Endacott, 2004)

2.2.3 Price Discounts

Price discounts give the customer an immediate reduction on the price of the product or
service at the point of purchase. Discounts given by industrial companies are called price-offs
and provides a differentiating factor to the customer when considering a purchase. Price-offs
is a very flexible tool for industrial companies since it is easy to control it by increasing or
decreasing the number of promoted products offered. (Schultz, Robinson & Petrison, 1998)

2.2.4 Events

Event marketing can according Van Heerden (2001) be described as “the practice of
promoting the interests of an organization and its brands by associating the organization with
a specific activity.” Event marketing as an approach to create communication through an own
financed or sponsored event

where the target group is gathered, and parties get the opportunity to share experiences, and
also a possibility to communicate their messages. (Behrer & Larsson, 1998)

Through product, corporate or service related actions companies shall offer cognitive,
emotional and physical stimuli, trigger actions and communicate messages, information and
associations which are directed by the company. This will make a positive contribution to the
process when building the company brand and value. (Nufers, 2002)

2.2.5 Free Trials

Free Trial is defined as a potential customer’s first usage experience with a brand. This trial
period is a critical factor in determining beliefs, attitudes and purchase intention towards the
brand. Trial is unique compared with other forms of promotional tools since it provide the
customer with a direct and sensory contact with the product. The trail starts when a
combination of any data from visual, tactile, olfactory, auditory and/or taste experiences are
channeled to the sense register. (Kempf & Smith, 1998)

According to Kotler (2000) free trials can be exemplified as free test driving of automobiles
or free test period of company software.

2.3 Conceptual Framework

To specifically answer research questions in chapter one it is important and necessary to
explain how each research question is conceptualized. According to Miles & Huberman
(1994), conceptualization is a method for deciding on what parts should be the fundament for
the research. This could be described graphically or in narrative forms of words

2.3.1 Conceptualization –objectives of sales promotion

The second research question concerns the objectives of sales promotion from a B2B
perspective. The purpose of this question is to provide information of the benefits companies

9
 Literature Review

seeks and obtain through sales promotion. In order to answer this question a number of
theories presented in the previous literature review are going to be considered. The different
theories are all connected to benefits and objectives of sales promotion. Reliance will be taken
on several studies presented in the literature review since there is no entire study in the
specific area.

Alvarez (2005), Dawes (2004), Hellman (2005), Finney, Lacey & Sneath (2006) Kempf &
Laczniak (2001) Kempf & Smith (1998), Inman, McAlister and Hoyer (1990), Lal (1990),
Polonsky and Speed (2000), Endacott (2004), Kendrick (1998), Beltramini (2000), and Fan
(2006) are all contributing with theories that gives this study a foundation.

In order to answer research question two benefits and objectives of the following sales
promotional tools will be looked at:

Gift giving

- Gift giving is used to increase sales, enhance brand, create awareness, and increase
customer loyalty. (Kendrick, 1998)

- Corporate gifts can be used to create a sense of obligation of returning the favor.
(Beltramini, 2000)

- In order to decrease the purchasing decision time gifts can be given to the corporation
to influence the decision maker to make a fast commitment. (Fan, 2006)

- Gifts are given to business partners to tactfully stimulate the partner to conduct
business continuously. (Beltramini, 2000)

Cause-related promotions/sponsorship

- Cause-related promotions and sponsorships are used to associate the corporation with
a good cause in order to build a positive image around the corporation. (Polonsky &
Speed, 2000)

- All Cause-related activities are used to generate sales. (Polonsky & Speed, 2000)

- Cause-related promotions make the customer more prone to conduct business since he
then also contributes to a good cause. (Endacott, 2004)

- Sponsorship and cause-related promotions can be used to;

 Counter adverse publicity

 Increase product or brand awareness
 Reinforce or alter brand perceptions
 Identify the brand with a specific segment (Polonsky & Speed, 2000)

Price discount

- Objectives for price discounts are to clear the inventory from excess merchandise and
attract new customers. (Schultz, Robinson & Petrison, 1998)

10
 Literature Review

- Price discounts are used to draw the attention of the customer to the company and its
products. (Inman, McAlister & Hoyer, 1990)

- Price discounts contribute to increased sales in products of ordinary price. (Schultz,

Robinson & Petrison, 1998)

- Price discounts have positive effects in the song-term and possibly in the long term
even though evidence speaks for no long-term favorable effects. (Lal, 1990)

Event

- The most common objectives for events are higher brand awareness, increased sales
and image enhancement. (Close, Finney, Lacey & Sneath, 2006)

- Other objectives for events are to engage the customer with the product and provide a
hand-on experience. (Close, Finney, Lacey & Sneath, 2006)

- An objective for event marketing is to share experiences and communicate. (Behrer &
Larsson, 1998)

Free Trials

- Free Trial can be used to create strong attitudes and belief toward a brand, stronger
then with advertising and other indirect sources. (Kempf & Laczniak, 2001)

- The trustworthiness of information gained by trail is generally high, this because of

that the information is self-gathered and there for reliable. (Kempf & Smith, 1998)

It is often discussed whether or not sales promotions have positive effects in the long term.
(Dawes, 2004) presented a theory of that sales promotion could have some long-term effects
if the promotion attracted new buyers that repeatedly repurchase the product. Even though
there is a possibility for positive after-effects the evidence speaks for no favorable after-
effects for established brands.

2.3.1 Conceptualization– Sales promotional tools

The first research question concerns how different sales promotional tools are used in a B2B
context. The purpose of this question is to explain how B2B companies use different sales
promotional tools. In order to be able to answer the first research question we have in
previous section discussed five different sales promotional theories.

The five theories answering research question one, all describes how B2B companies can use
different types of sales promotional tools. The tools are mentioned and discussed by many
authors such as Behrer & Larsson (1998), Nufers (2002), Fan (2006), Beltramini (2000),
Kempf and Smith (1998), Polonsky (2000) & Endacott (2004).

However this study will be based on all of these authors’ studies because of the complexity of
the subject and because of the will to increase objectivity. Furthermore to answer this research
question this are the sales promotional tools that will be investigated.

11
 Literature Review

Gift giving could be exemplified as

- Regular trips, holiday trips, traditional merchandise, vouchers, electronics, stationery, or

computer items. (Fan, 2006)

Cause related Sales promotion/Sponsorship could be exemplified as

- Donations, contributions, sponsorships. (Endacott, 2004)

Price discounts could be exemplified as

- Off price, price discrimination. (Lal, 1990, Inman, McAlister and Hoyer, 1990)

Events could be exemplified as

- Own financed, sponsored, or public event. (Behrer & Larsson, 1998, Erickson and
Kushner 1999)

Free trials could be exemplified as

- Free test-drives, free trial of software. (Kotler, 2000)

2.4Frame of References
The conceptual framework presented above will help to answer the thesis research question
and facilitate the development of an interview guide. An illustration of the conceptualization
is presented which will provide an overview of how the research questions fit together (see
figure 2.1). The figure shows how sales promotional tools can be used to reach certain
objectives.

Figur 2. 1: Frame of reference

12
 Methodology

3. Methodology
In this chapter the methodology used in the thesis will be presented. This chapter will present
how we are going to gather data in order to find the answers to our stated research questions.
First the research purpose of the study will be presented followed by the research approach.
Secondly the research strategy will be examined followed by data collection and sample
selection. Then the methods to increase validity and reliability are presented. A graphical
illustration of the research methodology is presented below (see figure 3.1).

Figur 3. 1: Schematic Presentation of Chapter 3

Source: Adapted from foster (1998) p. 81

3.1 Research Purpose

We can conclude that our study is mainly descriptive. However the study will also include
some exploratory and explanatory stages. According to our purpose that we base this study on
the “purpose of this study is to provide a better understanding on how sales promotion is used
in a B2B setting”.

There are several suggestions to use as research purposes, the most used are exploratory,
descriptive and explanatory (Yin, 2003) .The purpose of the exploratory stage is to answer
how and why questions “what can be learned from a study of an effective school?” This sort
of questions is often used when researchers work with exploratory studies (ibid).

3.1.1 Exploratory

According to Eriksson & Wiedersheim–Paul (2001) exploratory studies are sufficient when
no clear theory exists, and when there are no or very limited demarcations and when main
characteristics are hard to determine.

3.1.1 Descriptive Research

The objective of the descriptive stage is to describe features that were suspected during the
exploratory stage .The idea is developing inter subjective descriptions. When this
generalizations start to appear they become worth to explain, that could lead to theory
improvement or development in the long run. Eriksson & Wiedersheim–Paul (2001) mention
that descriptive research is most sufficient when the problem is well organized and structured
and when researcher does not want to find any connections between causes and symptoms.

13
 Methodology

3.1.2 Explanatory Research

According to Reynolds (1971), the main purpose of the explanatory stage is to develop a
precise theory that can be used to explain empirical generalizations that the researchers get
from the descriptive stage.

3.2 Research Approach: Qualitative

Since the purpose with this study is to provide better knowledge and understanding in the
specific area, the decision to approach the study with a qualitative research strategy seemed to
be the best option. The research questions could also be approached with a quantitative
strategy, but since the time set for this study is limited a qualitative study was the best option.
The data planed to be collected consists of such as values and perceptions, and are there for
not quantifiable, therefore a qualitative research strategy is the most valid option.

There are two terms used in social science to determine the approach from which direction
researchers conduct their studies, these are; qualitative and quantitative research (Denscombe,
2000). The type to be used is determined by the type of information gathered. (Lundahl &
Skärvad, 1992)

A qualitative research type is a small-scale study which aims to provide a better

understanding of the studied area. (Holme & Solvang, 1991) Qualitative research contains
data collected that heritages from non-quantifiable sources such as attitudes, values and
perceptions. (Lundahl & Skärvad, 1992)

3.3 Research Strategy: Case Study

Case studies are only one alterative of three when one want to answer our research questions,
but when considering criteria number two and three it become more clear that a case study is
the most appropriate research strategy in our case. This since us as researchers did not have
any control over the behavioural events because we were simply interviewers. The study also
focuses on a current issue and is conducted right now; therefore we see the study as
contemporary.

According to (Saunders, et al. 2003) a research strategy is a general plan guiding the
researcher to the answer of the research questions.

There are different criteria’s when choosing research strategies, these are three criteria’s

1. The type of research question posed:

2. The extent of control an investigator has over actual behavioural events

3. The degree of focus on contemporary as opposed to behavioural events

Eriksson and Wiedersheim-Paul (1997) mentions three research strategies that can be used in
social science research: case studies, surveys and experiments.

14
 Methodology

3.4 Data Collection

Because we wanted the information gathered to be focused on our specific research questions
we decided to conduct an interview. To be able to find sufficient and describing data we also
had to use secondary data. The study will be based on both secondary data and primarily data.

When a report is written the research can be based on primary or secondary data or both of
them. Primary data is, data collected for the first time and for a specific purpose. Secondary
data is information taken from other researchers.

In this thesis an open ended interview has been used because of its ability to create
discussions. Yin (1994) mention different types of interviews: open ended, structured and
focused. The interview was conducted personally. During the interview we took notes and at
the same time we were recording the interview with a tape recorder to more precisely record
the data. The main issues that would be discussed during the interview were sent the day
before to give the interviewee time to be prepared with accurately and well motivated
answers. The interview took around 50 minutes, the interview were conducted in Swedish, the
person interviewed were Swedish therefore we tried to conduct the interview in his mother
tongue Swedish to get a relaxed atmosphere. We knew that he could speak English and that
our paper would be written in English, we could have saved time if we interviewed him in
English but maybe would not have got the same accurately and well motivated answers.

Many times secondary data can be easier or more practical to use because of the availability
of already existing information. (Lundahl & Skärvad, 1992). We used secondary data such as
company brochures.

According to Yin (2003) there is six different sources of information when conducting case
studies; documentation, archival records, interviews, direct observations, participant
observation and physical artefacts. According to Yin (1994) interviews are the most important
way of collecting data when conducting case studies. An interview is an interaction between
an interviewer and a respondent, the interview could be conducted though telephone or by
person (Eriksson & Wiedersheim-Paul, 1997). When specific and in depth data is needed then
interviews are the ultimate data collection method. In this study that kind of data is needed
therefore an interview is appropriate for this study.

3.5 Sample Selection

As stated earlier in this chapter; the intention of this study is to provide better knowledge and
understanding of the usage of sales promotional tools in a B2B setting. By having reed
previous studies connected to the thesis of this study, the consideration of suitable case study
companies started. Since this study aims to look at the use of sales promotions in a B2B
setting; finding an industrial company that conducts business with other companies was
essential. After having looked into a number of different companies that could be considered
to be appropriate for this study and willing to be interviewed, the decision to chose Minelco
AB was made. The decision to interview Minelco was based on the facts that it is a company
active in B2B, willing be interviewed and also on the fact that the head quarter was accessably
located.

15
 Methodology

According to Holme & Solvang (1997) getting in contact with the right respondent is crucial
for the research, if not it may turn out to be invalid or insignificant. To secure the validity of
this study the the interwiew had to be done with an employee with the most accurate
knowledge in the research area. When contacting the company, the first person spoked with;
the sales manager of Minelco; Mr. Lars Vikström declared himself appropriate to anwer to
questions conserning the subject of this thesis. Due to this the interviewee was chosen to be
Mr. Vikström.

3.6 Data Analysis

When the empirical data had been collected the process of data analyzing started. According
to Miles & Huberman (1994) qualitative data analysis focus on data in forms of words, and
that the analysis consists of three simultaneously different activities. This study focus on and
implements number one and three of the three activities. This since the study only have two
sources of information to compare, this reduces the purpose of data display.

1. Data reduction- The phase where data is focused, selected, abstracted, simplified and
transformed. The purpose of this phase is to organize the data so conclusions can be
verified and drawn. (Ibid)

2. Data display- The phase where the data is reduced and organized in a compressed way
to make it easier to draw conclusions. (Ibid)

3. Conclusion drawing and verification- The phase where the researcher starts to make
comments and explain what thing means. This is done by noting regulations, patterns,
explanations, configurations, casual flows and propositions. The researcher shall
although hold such comments and explanations lightly and make sure to maintain a
sense of openness and degree skepticism. (Ibid)

Yin (1994) describes two techniques that can be implemented in the analysis of the collected
data; within-case analysis where data is compared with theories used and; cross-case analysis
where data from two cases are compared.

When analyzing the collected data the three activities described by Miles & Huberman (1994)
were applied. The reduction was made through a comparison between the empirical data and
the theories presented in the conceptualization which by Yin (1994) also is described as
within-case analysis. To increase the validity of the study the empirical data were compared
with theories from several sources. Finally, after having completed the within-case analysis,
conclusions are drawn and presented. Comparsion and analysis of data was made with
neutrality in consideration and different theories from different sources were used. This to
make the analyis more valid. Based on the conclusions and verifications each research
question are re-stated and answered.

3.7 Validity and reliability

According to Saunders et a.l Validity and reliability are used by researchers when deciding on
the quality of the research.

16
 Methodology

Validity

When testing our construct validity we used two mainly sources of evidence interviews and
corporate documents. To test our construct validity we had citations to all sources where
material and evidence were collected from, we also briefly described the particular
circumstances where our main data were collected from. Our supervisor reviewed our
interview guide, and then gave approval for the interview. We also had friends reading our
paper to control to what extent and the methods used are precise, correct and accurate.

To increase the external validity we gathered data from our sample company through personal
interviews with the sample company. However because we did only one case study we
believe that external generalizations should be done carefully.

Denscombe (2000) presents validity as the measurement measuring to what extent the data in
the research and the methods used in the research are precise correct and accurate. According
to Yin (2003) there are three kinds of validity, construct, internal and external. The construct
validity establishes correct operational measures for the concept being studied. External
validity is about how the conclusions from the case studies can lead to further generalizations
beyond the particular case study.

Reliability

When conducting the interview with Mr. Lars Vikström at Minelco, we tried to cloth and act
as neutral as possible to avoid biasing Mr. Vikström answers. We were also conscious about
the type of questions we had and how we asked the questions.

During the interview we actively took notes at the same time as the interview were tape
recorded. We have consequently explained and discussed the procedures of our research, in
this and in every other chapter. We also designed an interview guide, which shows what
questions we asked the interviewee. However we tried to be as neutral as possible both in way
of talking, moving and clothing still there could have been personal biases involved ,
therefore the influence of our and the interviewees personal views and attitudes can be
discussed and taken into consideration.

Denscombe (2000) states reliability as a measurement on what extent a study can be

reproduced with the similar results. He also states that variations in results are fully depending
on changes in the measured area and not in the instruments of measurement (ibid).

Always when conducting interviews the interviewer has to be as neutral as possible to avoid
the interview effect. (Denscombe 2000)

17
 Empirical Data

4. Empirical Data
This chapter will present the empirical data which have been collected from the interview
with Mr. Lars Vikström, Sales manager at Minelco AB. In addition to the interview based
data corporate documents such as annual reports and fact sheets have been used as a source
of information. In the beginning of this chapter a brief introduction of the case investigated
will be presented. This followed by the findings connected to each research question one by
one.

4.1 Case Presentation –Minelco AB

The Minelco Group is conducting business in the field of industrial minerals with a market
leading position in several product applications. Minelco is part of the Swedish company
LKAB, one world leading producer of highly upgraded iron ore products. LKAB provide
more than 20 million tonnes of iron ore to the world market a year. LKAB begun to operate in
1890 and is an international, high technology minerals group that has strong commitment to
new technology, research and development

The Minelco personnel are highly educated and updated, as a knowledge based company, the
Minelco group put a lot of effort on emphasizing on skills development and human capital.
Which they believe will lead to long time success for the company. Minelco’s experienced
and skilled people work all over the world, the expertise in materials and processes comes
from people that are working in different parts of the world and in LKAB's research and
development operations.

Minelco works with development, markets and produces chosen minerals, adapted for
particular industries all over the world. Combination of world-class resources creates a stabile
ground for long-term stability, and that makes Minelco a trustful and stabile partner.

Minelco a company started in Sweden the year of 1989, the company became an international
group with many sided expertise in industrial minerals. Minelco’s main idea is that they adapt
quality minerals after their customers’ preferences for use in industrial applications.

“The idea of Minelco is to build growth on a foundation of high quality, world-class assets,
and direct contacts with customers and in-depth application knowledge.”

Something very central in Minelco’s corporate culture is their highly efficient logistics.
Minelco also has a very strong control of material, from source to end user, to guarantee
quality and reliability

4.2 RQ1- Objectives of Sales Promotions

4.2.1 Gift giving

Mr. Vikström says that gifts are given to in some extent improve or maintain the customer
relationship, and good relationships lead to increased sales and fast business conductions.
Gifts that can be considered to be within the frame of good manner like a book about the
Swedish culture are given to improve the relationship. Further objectives with gifts like this
are that the customer shall place the gift where many can see it and hopefully show it to their

18
 Empirical Data

business partners so they will become interested in Minelco. In short terms gift giving are
used to show appreciation and maintain and improve relationships but also to create
awareness among other potential customers.

Another type of gifts Minelco is using is small items like, pencils and bottle openers with their
loge printed on to it. These items have the purpose to remind the customer of the company’s
existence. The meaning is that the customer shall remember the company days, months and
hopefully longer after having visited the company.

4.2.2 Price Discounts

According to Mr. Vikström; Minelco are not favoring discounts to stimulate sales, instead
they focus on the product properties. The minerals have a certain value for each customer as a
result of possible savings in the producing costs due to Minelco’s’ minerals, and that is what
they are focusing on when selling products. Mr. Vikström do say that there can be some kind
of discount involved when conducting a deal, but this because every customer wants to get the
best possible deal.

There are some price models to stimulate long contracts and to favor customers who purchase
large quantities. But price cuts are not used in order to attract customers, for that purpose they
use the argument of a high quality product.

Mr. Vikström is saying that clearing the inventory is not an objective for discounts. Minelco
do not have to clear their inventories since their products can be stocked for a long time
without affecting the performance of the product. He continues by saying that there can be
some circumstances when a new product are developed and has to have a place to be stocked,
and then discounts can be used. But it is not common.

Mr. Vikström does not believe that discounts are a good tool to use in sales promotional
contexts. Minerals are a product that can be stockpiled and it does occur that customers
predict a raise in market price and are buffering up with minerals for future usage.

4.2.3 Events

Events are something that is not used in such a big extent in Minelco. The forms of activities
that can be placed under the category events considering similar objectives are conferences;
quality audits; and mine visits.

The objectives with quality audits and mine visits are according to Mr. Vikström the
improvement of relationship and to give the customer an experience late forgotten. Further
objectives are that the customer that visits the factory and the ore mine and also gets to see
some of the Swedish culture such as the Ice Hotel travels home with a positive feeling about
the company and Sweden. This is done in the meaning of creating a good relationship which
may lead to continuous business and increased sales, but the focus is on the relationship.

The conferences are a vital part of the sales promotional program. Conferences where
different kinds of researchers are participating and presenting their findings in conducted
studies in the area of the minerals Minelco are producing and selling. The objective of this
action is according to Mr. Vikström to give potential customers knowledge about the
company and the minerals offered. It is important to give the customer authorities to listen to
and rely on. By letting researchers present their studies performed on the minerals Minelco
are selling customers can obtain objective information to base their purchase decision on. Mr.

19
 Empirical Data

Vikström believes that it is highly important to verify that the products are working and think
statements of dependent and independent researchers make the customer more confident in
their purchase decision.

4.2.4 Free Trial

Mr. Vikström explains that Free Trials are necessary in many perspectives. The customer
feels more confident in purchasing a product if getting to test it first. In many cases the client
are able to perform a more sophisticated product test customized to their specific usage and
can by that verify that the product will serve their specific purpose. He continues by saying
that it is common that Minelco and the customer divide the cost of the free trial between them.
If the customers invest in the relationship they often become more prone in evaluating the
product which increases the probability for a purchase.

4.2.5 Education

Mr. Vikström is saying that educational programs are a vital part when conducting business.
In cases where the customers possess no or little knowledge in the area educational programs
can be offered. In educational programs the customer is educated to ensure that the customer
uses the product correctly. According to Mr. Vikström the objective with educational
programs is to eliminate product failure due to poor usage. He says that product failure due to
poor usage could lead to an end of a relationship but it could also hurt the company image. A
bad reputation on the market could lead to the loss of future business partners while a good
reputation could lead to increased sales. Mr. Vikström also says that educational programs can
be used as a value adding tool when negotiating contracts.

4.3 RQ2- Tools of Sales Promotions

Minelco describes their business to business marketing, as focused on consulting and helping
business customers with information about how the minerals are working in different process
contexts. The customers are demanding different characteristics from the minerals for
instance some customers look for coated pipelines to create synthetic fuel, therefore the
Minelco employees need technical competence so they can support and satisfy the customer,
when they are looking for information and consultation in different sales contexts.

According to the sales manager of Minelco, Mr. Vikström the company also competes in the
industrial mineral market through pricing on the open commodity market.

At the beginning when a deal is close Minelco gives away free trials and they also subsidy the
transport costs for their customers. In a longer perspective Minelco usually shares the costs
with their customers, for instance transport from their Mines to the customer; sometimes they
also share their costs and profits through joint venture.

4.3.1 Gift giving

Minelco usually are very careful with gift giving. In Western Europe gift giving among
companies are very restricted and can easily be seen as bribery. Because of the same reason
Minelco is also careful with gift giving in event contexts.

20
 Empirical Data

When Minelco give gifts they do not just send gifts randomly to customers, most times it is
when they have invited a customer to their facilities. The gift is just a part of relationship
creating activities; other relationship creating activities could be dinner and invitation to the
Ice Hotel. In this context gifts can be given, often a simple and symbolic gift such as a photo
book of Luleå or other cultural expressing gifts. According to Mr. Vikström companies that
constantly work with promoting new product use gifts and events as a tool.

Each deal or business transaction includes an agreement, and the way of reaching this
agreement can differ. There are a lot of different ways or methods to reach a business
agreement, the mostly used one are negotiations based on volume incitement (see figure 4.2).

Figure 4.1: Volume Incitement Graph

Long term incitement is also common in Minelco’s sales promotional portfolio. For instance;
if one company signs a contract saying that they will use Minelco’s products for a three years
period they will get a lower price because of their willingness to show loyalty towards
Minelco.

However Minelco do not adapt the price to the customer’s potential to pay. They instead try to
avoid doing business with customers in labile areas and that do not have the right buying
power.

Minelco do not have any fixed prices and customers far away from the inventories pays more
due to the logistic costs. But Mr. Vikström is telling us it is very important to clarify that
Minelco do not favour any customer because of their geographical location.

Minelco says that they have got pricing models that stimulates long term relationships. We
asked if Minelco used price models related to the amount the customers bought from
Minelco’s stocked products. But Mr. Vikström told us that Minelco did not have any issues
with quick selling from the stocked products. Because their products do not gets out of date. It
happened that Minelco closed their facilities when they tried to sell the entire inventory in one
particular facility, but that is an exception.

21
 Empirical Data

4.3.2 Price Discounts

Minelco do not use rebates or price discounts to attract new customers or to increase their
sales. Mr. Vikström does not believe that is a good idea, he says that Minelco tries to market
their products as qualitative. And if they use rebates or price discounts companies will always
be waiting for this discounts and if there is no discount they will not buy the product or they
will buy and store the product in their inventory.

4.3.3 Events

Minelco do not see event as a crucial part of their sales promotional tools, however Minelco
participates in relevant events but they have decreased the time and money spent on events,
for instance they participate in some big trade fairs, directly relevant to the industrial Mineral
market where Minelco are specialized.

When Minelco participates on trade fairs and events they are actively informing about their
new products and they also verify why industrial customers should buy their products.

They verify their products and their information through top qualitative and world known
research often presented by respected researchers.

The verifying process depends on the customers knowledge, if the customer are familiar with
Minelco’s products or are repurchasing a product, then the verifying process do not have the
same importance and strength as if the customer is newly introduced or do not have
knowledge about Minelco and their products.

When the customers already are familiar with Minelco’s products Minelco do not need to put
much effort in marketing their products, again the marketing and the verifying process are
mainly for the newly introduced customers or potentially customers that Minelco have not
reach yet.

Minelco also participates and work with other types of events such as social events. When
participating in social events, one or more representatives of Minelco have dinner with
representatives from other companies. Most times the potential customer is invited to an
exclusive dinner. Sometimes the customer also is invited to the Minelco office where Minelco
have an internal event, where business issues are discussed and products are presented.

They also use to hold closer technical information meetings in their mines and sometimes
customers are invited to the Jukkasjärvi Ice Hotel. The events and activities created for the
customer depends on the customer’s importance and potential to in the future become an
important business partner. The events are most times directly connected to a business deals
or with new product developments.

4.3.4 Free Trial

The free trials could also be seen as cultural phenomena, when doing business with customers
from different cultures they also have different expectations on the free trial offers they are
given by Minelco. Mr. Vikström discusses that customers get of products to check the product
quality. He also says in most B2B setting customers are provided with free trials when a deal
is close. However most times the customers that order Minelco’s products do know what they

22
 Empirical Data

are ordering due to the fact that business customers are more updated and informed than the
customers in the consumer market

4.3.5 Cause related sales promotion

Minelco told us that they do not conduct any cause related sales promotion such as sponsoring
charity or sports events on their own. That is because Minelco is a subsidiary to LKAB and
the mother company is responsible for donations and sponsoring

23
 Data Analysis

5. Data Analysis
In this chapter the empirical data will be compared with existing theories presented in the
conceptualization. It will be investigated if some connections can be made between theories
and empirical data. This will help to create a foundation for conclusions in the next chapter.
An analysis of the first research question will first be presented, followed by an analysis of the
second research question.

5.1 Data Analysis- Sales Promotional Objectives

When analysing and comparing data collected from previous studies with the empirical data
gathered from the case study of Minelco, one can see that the within case study and the
theories discussed by several researchers do to some parts fit with each other

5.1.1 Gift Giving

According to Kendrick (1998) gifts are used in order to increase sales, enhance brand, create
awareness and increase the loyalty among customers. Mr. Vikström says that the few gifts
that are given away are in the purpose of showing gratitude and maintain relationships. This
statement can be connected to the mentioned theory about customer loyalty but also to
increased sales since Mr. Vikström also says that a good relationship generate sales. Mr.
Vikström is very clear about that no gifts are given in order to create some obligation of
returning the favor. This speaks against the theory of Beltramini (2000), which says that this
is an objective for gift giving.

Fan (2006) is stating that shortening of the purchase decision time is an incitement for gift
giving. Mr. Vikström does not confirm this, but it improves the relationship which is the
central part in doing business.

Mr. Vikström says that most activates have the objective to increase sales, either direct or
indirect. Gifts could be an indirect action to generate sales, since it improves the relationship
which leads to sales. This somewhat confirms the theory of Beltramini (2000), which
describes gift giving to be used as a tool to tactfully stimulate the partner to conduct business
continuously

5.1.2 Price Discounts

Schultz et al. (1998) are describing the need to clear the inventory from excess merchandise
as an objective for discounts. According to Mr. Vikström industrial companies working with
products without expire dates, clearing of the inventory is unnecessary. He does says that
there can be certain times when room has to be made for newly developed product and in
these certain occasions; discounts could be considered.

Schultz et al. (1998) and Inman et al. (1990) are in their studies saying that price discounts are
used to get the attention of and attract new customers. According to Mr. Vikström this theory
cannot be descriptive for the way Minelco works to attract new customers. Minelco do not use
the price as an incitement to attract new customers. There are some price models used in order
to close deals, but the price is never used to attract new customers, for that they use argument
for high qualitative products. Mr. Vikström says when companies frequently use price

24
 Data Analysis

discounts their customers get used to low prices and are not that prone to purchase a product
to ordinary price. Customers will then instead wait for next discount period and then
stockpile.

Inman et al. (1990) are stating that discount leads to increased sales. Mr. Vikström agrees to
that volume discount increases sales since it create incitement to buy a larger volume or sign a
long-term contract.

5.1.3 Events

As mentioned in the previous conceptualization Close et al. (2006) are describing events as a
sales promotional activity performed to increase the awareness of the company brand,
generate more sales and strengthen the image. They further continue by saying that events are
an opportunity to engage the customer with the product so the customer can get a hand-on
experience. The main objective for Minelco holding events are to further develop existing or
potential relationships. Such events as field trips to the mines, visits at cultural areas such as
the Ice Hotel are all connected with the maintenance and creation of relationship and in
addition combining pleasure with business by holding some kind of business meeting or
product introduction. These events could have influence on the areas Close et al. (2006)
describes, but events seem mostly to be used for already existing business partners. This can
be seen as an activity to simulate future purchases, and it probably does, but Mr. Vikström
likes to express it as an activity that improves relationships, and that it is the relationship and
not the event that increases the sales.

Behrer & Larson (1998) pointing out that events are an opportunity to share experiences and
communicate messages. This theory can be more closely connected to which Mr. Vikström
has pointed out the objectives to be. The business meetings and product introductions
combined with social delighters could very closely be associated with the theory of sharing
experiences and communicate messages. Another activity that matches the last mentioned
theory is the conferences that are held. The presentations by the researchers where the
customers get to gain more knowledge about Minelco’s products can be seen as experience
sharing and message communicating. The conferences can also be linked to Close et al.
(2006) previous mentioned theory that declare objectives as higher brand awareness,
increased sales and image enhancement.

It is not known to what extent the customers get the opportunity to have a physical contact in
these certain contexts. But since the product is industrial minerals the importance lies in the
performance. Thus, it can be assumed that the statements of researchers’ weigh more than a
hand-on experience by the customer. Which Close et al. (2006) described as an objective for
events.

5.1.4 Free Trials

Kempf and Laczniak (2001) are saying that free trials can be used to strengthen attitudes and
believes towards the brand. According to Mr. Vikström it is important that customers get to
test the product to verify that it performs well in their process. He continues by saying that
free trials are necessary since the customer feels more confident in purchasing a product if
getting to test it first. Kempf and Smith (1998) says that the trustworthiness of information
gained by the customer during a trial period generally is high, this because of that the
information is self gathered.

25
 Data Analysis

5.1.5 Education

The sales promotional tool; education is not covered in the conceptual framework, so no
theories are available to be connected and compared with the empirical data found. But Mr.
Vikström is stating that educational programs can be used as a sales generating instrument.

5.2 Data analysis- Sales Promotional Tools

5.2.1 Gift Giving

There are three common categories that cover most of the variety of reasons for giving gifts as
a part of conducting business. First, gifts are used to show gratitude for such things as past
relationships, placing a new order, referrals to other clients, etc. In some cases gifts are give
with the intention to create a good first impression, which could help to establish a business
relationship (Fan, 2006).

Minelco usually are very careful with gift giving, in Western Europe gift giving among
companies are very restricted and can easily be seen as bribery. Because of the same reason
Minelco is also careful with gifts giving in event contexts.

When Minelco give gifts they do no just send gifts randomly to customers, most times it is
when they have invited a customer to their facilities, the gift is just a part of relationship
creating activities, the others could be dinner and invitation to the ice hotel in Jukkasjärvi, in
this context gifts can be given, often a simple and symbolical gift such as a photo book about
Luleå or similar. According to Mr Vikström companies that often introduce new products
often use gift giving.

The data we have gathered and the existing theory fits to some extent, when discussing gift
giving. Both Mr Vikström at Minelco and Fan (2006) says that gifts are given to establish
relationships. But Fan (2006) also further discusses gift giving as a tool to show gratitude for
past business, or for customer to place a new order.

5.2.2 Price Discounts

Different researchers have mentioned price discount as a sale promotional tools in B2B
settings, such researchers are Lal (1990) and Inman, McAlister & Hoyer (1990). According to
Inman, McAlister & Hoyer (1990) price discounts are seen as an incitement for customers to
purchase a product. They believe that these types of pricing activities can attract the attention
of the customer. They also discusses that past research shown that these kinds of promotions
can generate a considerable increase in sales of the promoted brand.

5.2.3 Events

According to Behrer & Larsson (1998) and Erickson & Kushner (1999) B2B companies use
different types of events. They mention own financed, sponsored and public events as
commonly used events in B2B contexts. However Mr. Lars Vikström at Minelco had another
view on this issue, from his and Minelco’s’ perspective, he agreed that it is common with
different types of events in the B2B world. But he said that Minelco do not see event as a
crucial part of their sales promotional tools. However Minelco participates in relevant events
but nowadays they have decreased the time and money spent on events. For instance they
participate in some big trade fairs, directly relevant to the industrial Mineral market where
Minelco are specialized.

26
 Data Analysis

According to Mr. Vikström; every single deal or business transaction includes an agreement,
and the way of conducting this agreement can differ. There are a lot of different ways or
methods to reach a business agreement, the most commonly used is volume incitement. That
means that if you buy a larger volume the price will decrease therefore customers will
consider buying more.

However Minelco do not adapt the price to the customer’s potential to pay. They instead try to
avoid doing business with customers in labile areas and that do not have the right buying
power. The payment system they are using is called a secured paying system.

5.2.4 Free Trials

According to previous research conducted by Kempf and Smith (1998) free trials are used to
provide the customer with a direct and sensory contact with the product. Kotler (2000)
exemplifies free trials as free test driving automobiles or free test period of the company.

Mr Vikström discusses that customers get free trials of products to check the product quality
and at the same time get a direct contact with the product. He also says in most B2B setting
customers are provided with free trials when a deal is close. However most times the
customers that order Minelco’s products do know what they are ordering due to the fact that
business customers are more updated and informed than the customers in the consumer
market. The free trials could also be seen as cultural phenomena, when doing business with
customers from different cultures they also have different expectations on the free trial offers
they are given by Minelco.

5.2.5 Cause related sales promotion

Cause related sales promotion is a marketing strategy implemented by corporations to link

their name to and get associated with a particular good cause, i.e. charitable or environmental
organisations (Endacott, 2004). Cause related sales promotion could be exemplified as
donations, and other contributions (Polonsky, 2000).

Minelco told us that they do not conduct any cause related sales promotion such as sponsoring
charity or sports events on their own. That is because Minelco is a subsidiary to LKAB and
the mother company is responsible for donations and sponsoring

27
 Findings and Conclusions

6. Findings and Conclusions

In the previous chapter we compared empirical data with theories from previous studies. This
final chapter will present the findings and conclusions based on our two research questions in
order to fulfill our purpose which was to provide a better understanding of sales promotions
in a B2B setting.

6.1 Which are the objectives of sales promotion in a B2B setting?

During our research we found that the common objective for the sales promotional tools
examined in this study is to add value to the company. Based on the findings of the research it
is preferable to describe them as value adding activities since they do not simply add value in
terms of increased sales. Although, the common effect of all sales promotional tools seems to
be increased sales, each and every sales promotional tool has specific objectives.

The sampled company which operates within the B2B sector was to a big extent using sales
promotional activities to maintain and improve relationships. A good relationship is the
central part in the approach of conducting business in a B2B setting. Based on the information
from our sampled company we can conclude that many sales promotional tools are used to
indirectly generate sales by directly influence the relationship positively. Even though the
central characteristic of B2B sales promotion is the relationship, there are some tools that aim
to directly increase the volume of sold goods. This allows us to categorize the different tools
by direct objective, regardless of the common indirect objective; to generate sales.

Among the tools we examined in this study; events are the one of the tools used to improve
the relationship. Existing business partners and long contract are considered to be vital in
B2B. To be able to keep these long contract customers the relationship has to be taken care of.
This study found that events is an appropriate tool to use when maintaining and improving the
relationship by giving the customer, positive experiences, product knowledge and social
amusement. It was also found that events are a good context for securing continuous business
relationships by negotiating and lengthen contracts.

This study showed gifts to be a tool used to maintain and improve relationships. The
objectives of gift giving are to show gratitude and to keep a good atmosphere in the
relationship. Based on the findings that good relationships generate sales; the gift giving tool
can be described as an indirect sales increasing tool. It was also found that gifts can be used in
order to create awareness among potential customers.

Discounts were found to primary influence the volume of purchased good but also to
negotiate long-term contracts. Even though the tool was not used to attract customers it was
found to be implemented to increase sales as a result larger quantities sold, more closed deals
and long-term contracts. The study showed that other methods of attracting new customer can
be preferable over discounts; such as product quality statements.

Free trials can according to the findings of the study be described as a tool to make the
customer more confident in purchasing a product since a free trial increases the reliability to
the product. A customer who feels confident in a purchase is probably more prone of
repurchase the product or purchase a larger quantity. Free trial as a promotional tool is not

28
 Findings and Conclusions

only influencing the customer to purchase a product; it could also improve the relationship
since it builds trust.

The following specific conclusions are made considering research question one:

 Sales promotional tools are not only used in order to directly generate sales, but also to
improve relationships and through that increase sales.

 Since the industrial market consists of fewer but larger customers in comparison to the
consumer market; the loss of a customer has a greater impact on the business. This
could be the reason why the focus of B2B companies is to stimulate the relationship of
already existing customers by using sales promotion.

 Events could be a good opportunity to both negotiating business deals and socialize
with business partners to maintain and improve the relationship between them.

 Gift giving is a suitable to use when trying to keep a positive atmosphere in the
relationship, but it also works as a reminder to create awareness.

 Regular price discounts are not the most preferable tool to use in order to attract new
customer, it can instead be used when securing a contract.

 Providing customers with free trial can be a gooc option when dealing with customers
skeptical towards the product, the customer gets to evaluate the product through the
free trial.

6.2 Which sales promotional tools are commonly used in B2B settings?
The different sales promotional tools used in B2B settings are events, price discounts, free
trials, gift giving and cause related sales promotion. One important finding we have done is
that all of the above mentioned sales promotional tools we found when doing our practical
study, actually was used by a company in a B2B setting. The company within our case study
also to some extent used all of the tools that we did a theory study on.

Some companies are very careful with gift giving and other to not have any restrictions they
do not feel uncomfortable at all when giving gifts. Companies working mainly in Western
Europe use to be careful with gift giving, because gifts can easily be seen as bribery in
Western Europe.

We also found out that some companies give gifts only to establish relationships and others
use gift giving as a tool to show gratitude for past business, or for customer to place a new
order. We found out that this could depend on the geographical area where the company are
conducting business, and to what extent companies are ready to compete for customers and be
willing to take risks to be called “bribers”.

Minelco told us that they do not conduct any cause related sales promotion such as sponsoring
charity or sports events on their own. That is because Minelco is a subsidiary to LKAB and
the mother company is responsible for donations and sponsoring

We discovered that volume discounts are used as an incitement for customers to purchase a
product. We believe that these types of pricing activities can attract the attention of the

29
 Findings and Conclusions

customer. The attention of the customer will increase because the customer many times wants
to buy as low priced items as possible in B2B markets in particular. Where there is no low
status to buy cheap products. By providing volume incitements companies can also reach
different types of business agreements. We also found out that in the past these kinds of
promotions can generate a considerable increase in sales of the promoted brand. One other
important conclusion that we could make were companies do not often adapt prices to
customer’s potential to pay. Because some industrial companies do not want to use price
discrimination, unsatisfied discriminated customers could lead a bad business climate.

We found that events are used in different types of ways and that there are different types of
events. Many companies rely on traditional trade fairs events but our case study proved that
other events such as dinners, visits to mines and conferences also are commonly used events.
We also found out that events have to be adapted to particular situations when increasing
customer satisfaction.

Events is crucial part of Minelco’s sales promotion, that is because of the alternative sales
promotional tools that could use instead, such as price discounts free trials etc. We also found
that they could combine events with other sales promotional tools. Minelco did not use events
as much as they did few years ago; we conclude that that is because of the high price,
compared to the output in form of profit that they got. They also preferred to combine events
with other sales promotional tools.

During our research we found out that customers get free trials of products to check the
product quality and at the same time get a direct contact with the product. We also learned
that in B2B contexts it is common that companies provide free trials when a deal is close.
One can conclude that because when the customer shows interest and the deal is becoming
closer it is more economically affordable to send free trials to a customer who really shows
interest. However because B2B customers are more informed about the company’s products
than customer on the consumer markets, companies do not necessarily always need to give
customer free trials.

The following specific conclusions are made considering research question two:

 Gift giving could be inappropriate in western business context and should be carefully
considered before given.

 Price discrimination is not appropriate to use in B2B settings since it could hurt
business relationships.

 Traditional events such as trade fairs are not the only type of event used in today’s
dynamic business world.

 B2B companies in the same industry are familiar with each other’s products and do
not always need free trials in the same extent as customers on the consumer market

6.3 Implications
In this section the implications for this thesis will be presented. The implication section
includes; Implications for Theory, Management, and Future Research.

30
 Findings and Conclusions

6.3.1 Implications of Theory

The purpose of this study is to provide a better understanding on how sales promotion is used
in B2B settings. Through comparing theories brought up in the conceptual framework to the
empirical data; we have been able to answer the two research questions. The findings and
conclusions concerning the two research questions of sales promotional tools used and the
objectives of them contributes to existing theories by more thoroughly describe the
implementation in B2B settings.

6.3.2 Implications for Practitioners

This research has shown that sales promotion is not only important for creating short term
increased sales. It is also an important tool for creating and maintaining B2B relationships.
Therefore it is very important for the manager to not only use sale promotion as a buying
incitement for the customer, he should also use it for relationship creating and maintaining.

 Managers should not only relay on traditional trade fairs when having events, they
should consider different types of events such as dinners, trips and conferences.

 Managers should not price discriminate, and give price discounts based on the
customers buying power. Because customers who do not get price discriminated will
feel mistreated and that can lead to worse relationship between parties.

 Managers can provide customers with free trials when deal is close.

 Other tools managers can use to increase sales and improve relationships are gift
giving, however they should be careful when giving gifts to companies in western
countries. Because the risk that gifts easily can be seen as bribery.

6.3.3 Implications for Future Research

While writing this thesis several issues connected to this research purpose has been
encountered. Since they have been beyond this study and would have had a negative
broadening effect they have been ignored until this chapter where a proposal of the different
issues as future research areas is presented.

 As stated earlier in this study theories suggesting that there are no favorable long-term
effects of sales promotion. After analyzing the empirical data it was found that a lot of
sales promotional activities were done in order to improve relationships to create a
successful long-term relationship. This could speak for that sales promotional activities
leads to favorable effects in the long-term, and is a possible area for further research.
 Another issue that came across when studying the area of sales promotion in a B2B
setting was the lack of information on how B2B sales promotion differs from consumer
sales promotion. Since there is a limited amount of studies conducted in B2B sales
promotion a comparison could contribute to a deeper understanding in the area.

 Look into how sales promotional tools used in consumers markets can be put into
practice in B2B settings.

 Conduct a cross-case analysis where the implementation of sales promotional tools

used are compared between a company within the consumer market and a B2B
company.

31
 Findings and Conclusions

 How can the drawbacks of sales promotion in B2B settings be further described?

 Examine whether a larger sample of cases would give the same findings and
conclusions.

 Investigate the relationship created by sales promotional tools in a B2B setting.

32
 List of References

LIST OF REFERENCES
Alvarez, A.B. & Casielles R.V. (2005). Consumer evaluations of sales promotion: the effect
on brand choice, European Journal of Marketing, Vol. 39 No. 1, pp. 54-70.

Behrer, Mattias & Larsson, Åsa. (1998). Event Marketing – att använda evenemang som
strategisk resurs i marknadsföringen, Göteborg. IHM Förlag AB.

Beltramini, R. (2000). Exploring the effectiveness of business gifts. Journal of Advertising,

Vol. 29 No. 2, pp. 8-75.

Blattberg, R.C. & Neslin, S. (1990), Sales Promotion: Concepts, Methods, and Strategies,
Englewood Cliffs, N.J., Prentice Hall.

Brierty, G.E., Eckles, W.R. & Reeder, R.R. (1998). Business marketing (3rd ed.), Upper
Saddle River, N.J., London: Prentice Hall.

Close, A. G., Finney, R. Z., Lacey, R. Z. & Sneath, J. Z. (2006). Engaging the consumer
through event marketing, Journal of Advertising Research, Vol. 46 Issue 4, pp. 420-433.

Dawes, J. (2004). Assessing the impact of a very successful price promotion on brand,
category and competitor sales, Journal of Product & Brand Management, Vol. 13 No. 5, pp.
303-314.

Denscombe, M. (2000). Forskningshandboken, Lund: Studentlitteratur.

Dwyer, F. R., & Tanner, F. J., (2006) Business marketing, Connecting strategy, relationships,
and learning, (3rd ed.), New York: McGraw-Hill Companies.

Endacott, R.W.J. (2004). Consumers and CRM: a national and global perspective, Journal of
Consumer Marketing, Vol. 21 Issue 3, pp.183-189.

Eriksson, L.T & Wiedersheim-Paul, F. (1997). Att utreda, forska och rapportera, Malmö,
Liber Ekonomi.

Fan, Y. (2000). Promoting business with corporate gifts – major issues and empirical
evidence, Corporate Communications: An International Journal, Vol. 11 Issue 1, pp. 42-55.

Fill, C., & Fill, E. K. (2005). Business to business marketing: Relationships, systems and
communications, Harlow: Pearson Education Limited.

Foster, T. (1998) Industrial Marketing Communication: An Empirical Investigation on the use

of Marketing Communication Tool (Licentiate Thesis) Luleå University of Technology,
1998:09.

.Holme, I.D. & Solvang, B.K. (1991). Forskningsmetodik: Om kvalitativa och kvantitativa
metode,. Lund: Studentliteratur.

Inman, J.J., McAlister, L. & Hoyer, W.D. (1990). Promotion signal- proxy for a price cut?,
Journal of Consumer Research, Vol. 17 No. 6, pp. 74-81.

33
 List of References

Jobber, D., & Lancaster, G. (2006), Selling and sales management, (7th ed.), Harlow: Pearson
Education.

Kempf, D.S. & Laczniak, R.N. (2001). Advertising’s Influence on Subsequent Product Trial
Processing, Journal of Advertising, Vol. 3 No. 30, pp. 27–38.

Kempf, D.S., & Smith, R.E. (1998). Consumer Processing of Product Trial and the Influence
of Prior Advertising: A. Journal of Marketing Research, Vol. 35 No. 8, pp.325-338.

Kendrick, A. (1998). Promotional products vs. price promotion in fostering customer loyalty:
a report of two controlled field experiments, Journal of Services Marketing, Vol. 12 Issue 4,
pp. 312-326.

Kotler, P. (2000). Marketing Management, Upper Saddle River, N.J., Lodon: Prentice Hall.

Kwok, S., & Uncles, M. (2005). Sales promotion effectiveness: the impact of consumer
differences at an ethnic-group level, Journal of Product & Brand Management, Vol. 14 No. 3
pp. 170-186.

Low, G.S., Mohr, J.J. (2000). Advertising vs. sales promotion: a brand management
perspective, Journal of product & brand management, Vol. 9 No. 6, pp. 389-414.

Lundahl, U. & Skärvad, P.H. (1992). Utredningsmetodik för samhällsvetare och ekonomer,
Lund: Studentliteratur.

Miles, M.B. & Huberman, M.A. (1994). Qualitative Data Analysis (2nd ed.).

Ndubisi, O.N. & Moi, C.T. (2005). Customer behavioral responses to sales promotion: the
role of fear of losing face, Asia Pacific Journal of Marketing and Logistics, Vol. 17 Issue 1,
pp. 32-49.

Nufer, G. (2002) Wirkungen von Event-Marketing, Deutscher Universitäts-Verlag,

Wiesbaden.

Peattie, K. & Peattie, S. (1995). Sales promotion- a missed opportunity for service marketers?,
International Journal of Service, Vol. 6 Issue 1, pp. 22-39.

Polonsky, M.J. & Speed, R. (2001), Linking sponsorship and cause related marketing:
Complementarities and conflicts, European Journal of Marketing, Vol. 35 Issue 11, pp. 1361-
1389.

Reynolds, P.D. (1971). A primer in Theory Construction. Macmillian Publishing Co.

Rowely, J. (1998). Promotion and marketing communications in the information, Library

Review, Vol. 47 No. 8, pp. 383-387.

Saunders, M., Lewis, P., & Thornhill, A. (2003), Research methods for business students (3rd
ed.), Edingburgh: Pitman Publishing Imprint.

34
 List of References

Srinivasan, S.S. & Anderson, R.E. (1998). Concepts and strategy guidelines for designing
value enhancing sales promotions, Journal of Product & Brand Management, Vol. 7 Issue 5,
pp 410-420.

Van Heerden, C. H. (2001). Factors Affecting Decision-Making in South African Sport

Sponsorships, Unpublished Doctoral Dissertation, University of Pretoria.

Vikström, L, Minelco AB, (Tue, 8 May 2007, 10:00 a.m. – 10:50 a.m.), Interview.

Yin, R.K. (1994). Case Study Research: Design and Methods, Thousand Oaks: Sage.

Yin, R.K. (2003). Applications of case study research, Thousand Oaks: Sage.

35
APPENDIX A

Interview Guide- English version

 Name and title of the respondent
 General facts of the corporation
 The competitive situation for the company

Sales promotion
 What different types of sales promotion tools is your company using?
 How are sales promotion used in your company?
 Why are you using these specific tools, if not why?
Gift giving
- regular trips, holiday trips, traditional merchandise, vouchers, electronics, stationery, or
computer items
Cause related Sales promotion/Sponsorship
- Donations, contributions, sponsorships
- If you are using donations or sponsor ship, are you expressing that in advertising?
Price discounts
- Off price, price discrimination
Events
- Own financed, sponsored, or public event
Free trials
- Samples, test period, other hand-on experience before purchase

 How do you combine the different sales promotional tools?

 What sales promotional tool are you using most frequent?
 Which are the most common sales promotional tools used in B2B settings?
 Are there any sales promotional tools used only in B2B settings?
 Anything additional about the sales promotional tools?

Sales promotional objectives/benefits

Event

- What are the main objectives for your events?

- Are you using events to create higher brand awareness, increased sales or to enhance the
company/brand image?

- Is there an objective to engage the customers with the product and provide them with
hand-on experience, if not what do you do instead to engage the customer?
- How important are the events for communication and exchange of experience with
customers?

- Are your objectives long- or short-term based?

- Anything additional about events?

Price discount
 - What are the objectives for your discounts?
 Clear inventory from excess merchandise
 Attract new customers
o Get the customers attention, product and company

- Are discounts used to increase sales in ordinary price products, if not, what do use?

- Are your objectives long- or short-term based?

Gift giving

- Which are your company’s objectives for gift giving when doing business?
o Create a sense of obligation to return favor?
o Decrease purchasing decision time
o Stimulate future business relationship
o Increase sales, enhance brand, create awareness, or increase customer loyalty?

- Are your objectives long- or short-term based?

- Anything additional about gift giving?

Cause-related promotions/sponsorship

- Which are your company’s objectives for using cause-related promotions/sponsorship?

 To associate your company with any certain cause, build image?
 Counter adverse publicity
 Increase product or brand awareness
 Reinforce or alter brand perceptions
 Identify the brand with a specific segment
 Generate sales
 Because it is expected

- Are your objectives long- or short-term based?

- Anything additional?

Free trials
- Which are the objectives for free trials?
 Create strong attitudes towards the brand
 Create customer loyalty

- Are your objectives long- or short-term based?

- Anything additional?
APPENDIX B

Intervjuguide- Svensk Version

 Namn och titel på respondenten
 Allmän fakta om företaget
 Konkurrenssituationen hos företaget

Försäljningsfrämjande åtgärder
 Vilka olika försäljningsfrämjande verktyg använder ert företag sig utav
 På vilket sätt används försäljningfrämjande verktyg i ert företag
 Varför använder ni er av dessa specifika verktyg om inte varför?
Företags gåvor
– vanliga resor, semester resor, traditionella handelsvaror, presentkort, elektronik,
kontorsmaterial, dator tillbehör
Orsaks relaterade försäljningsfrämjande åtgärder/sponsring
- Donationer, bidrag, sponsring
Pris sänkningar
- Pris minskningar, pris diskriminering
Events
- Självfinansierade, sponsrade eller publika events
Gratis prover
– test produkt, test period, andra praktiska erfarenheter innan köp

 Hur kombinerar ni de olika försäljningfrämjande verktygen?

 Vilka försäljningsfrämjande verktyg använder ni er mest utav?
 Vilket försäljningsfrämjande verktygen används mest på den industriella
marknaden?
 Finns det försäljningsfrämjande verktygen som endast används på den
industriella marknaden?
 Någonting mer om de försäljningsfrämjande verktygen?
Försäljningsfrämjande mål/fördelar
Events
- Vilka är huvudmålen med era events?
- Använder ni er utav events för att skapa högre märkes medvetenhet, ökad
försäljning, eller för att höja företagets företagets /märkes image
- Ser ni det som ett mål att attrahera kunder genom att erbjuda de praktisk erfarenhet?
Om inte vad gör ni istället för att attrahera kunder?
- Hur viktiga är events för kommunikation och utbyte utav erfarenheter

Är era mål kort eller långsiktiga?

Något ni skulle vilja tillägga?
Pris sänkningar

- Vika är målen med era prissänkningar?

 Rensa lagret från överskott utav varor
 Attrahera nya kunder
 Erhålla kunders uppmärksamhet, vad det gäller produkt och företag
 – Används pris sänkningar för att öka försäljningen i ordinära pris produkter, om inte
vad används?
- Är era mål kort eller långsiktiga?
- Något ni skulle vilja tillägga?

Gåvor

- Vilka är ert företags mål vad det gäller gåvor vid affärer?
 Skapa skuldkänslor för att kunna kräva gentjänster?
 Förkorta köp tiden
 Stimulera framtida affärsrelationer
 Öka försäljningen, förhöja märket, skapa medvetenhet, eller förbättra
kundlojaliteten

- Är era mål kort eller långsiktiga?

- Något ni skulle vilja tillägga?
Orsaks relaterade försäljningsfrämjande åtgärder/sponsring

– Vilka är ert företags mål vid användandet av Orsaks relaterade försäljningsfrämjande

åtgärder/sponsring

 Att ni vill associera ert företag med någon särskild orsak, skapa image?
 Kontra mot ogynnsam publicitet
 Öka på produkt eller märkes medvetenhet
 Förstärka eller förändra märkes uppfattningar
 Identifiera märket med ett specifict segment
 Generera försälning
 För att det förväntas

- Är era mål kort eller långsiktiga?

- Något ni skulle vilja tillägga?

Gratis prover
– Vilka är målen för gratis prover?
 Skapa stark attityd gentemot märket
 Skapa kundlojalitet
– Är era mål kort eller långsiktiga?

Något ni skulle vilja tillägga?