THE ROLE OF SOCIAL MEDIA IN CUSTOMERCOMMUNICATION IN BUSINESS-TO-BUSINESS MARKETS

AbstractThe objective of this study is to create an understanding what is the role of social media in customer communication in business-to-business markets. This is explored by defining the characteristics of social media that differentiates it from traditional marketing communication channels. Opportunities and challenges the social media induces for communication are explored as well. Utilization of social media in communication with current customers and with potential customers is also of interest in this study. The context of this study is Finland.

The study is conducted by using qualitative research methods. The purpose of this study is to build a holistic picture of the role of social media in customer communication. The theoretical part of this study explores the changes that digital marketing and especially social media creates for traditional marketing communication. Identifying the characteristics of social media enables to understand opportunities and challenges it creates for communication. Relationship development viewpoint is taken because especially in b-to-b markets the communication occurs in customer relationships. The empirical data is collected with semi-structured interviews among Finnish companies operating in industrial markets and experts on social media. By connecting the theoretical and empirical parts of this study the results of the study develop. Characteristics of social media, participation, user-generated content, interaction, transparency and viral marketing, increase the engagement of the company and its customers to the communication and further to the relationship. The opportunities and challenges the social media creates vary in different stages of the relationship development. At the pre-relationship stage the objective is to create awareness of the company and its products. Social media enables reaching wider audience and the potential customers more effective. At the negotiation stage it is important to start to develop the relationship. Communication and targeting markets are more effective in social media. At the development stage parties aim to create mutual value. Social media increases the engagement to communication and enable more informal and continuous communication. Companies operating in b-to-b markets should evaluate whether social media creates added value to their customer communication.

TABLE OF CONTENTAbstractsTable of contentFigures and tables1 INTRODUCTION ................................................................................................... 51.1 Introduction to the topic ..................................................................................... 71.2 The objective of the study and research questions ........................................... 101.3 Introduction to research methods ..................................................................... 121.4 Definitions of key concepts .............................................................................. 13

1.5 The structure of the study ................................................................................. 142 MARKETING COMMUNICATION................................................................. 162.1 Traditional marketing communication ............................................................. 162.2 Digital marketing communication.................................................................... 182.3 Marketing communication in relationship development.................................. 212.3.1 Pre-relationship stage................................................................................ 232.3.2 Negotiation stage ....................................................................................... 232.3.3 Relationship development stage ................................................................ 242.3.4 Digital communication in the relationship development process ............. 253 MARKETING COMMUNICATION IN SOCIAL MEDIA............................. 283.1 Marketing in social media................................................................................ 283.1.1 Characteristics of social media.................................................................. 293.1.2 Opportunities and challenges of social media for b-to-b companies........ 313.1.3 Viral marketing......................................................................................... 333.2 Social media tools in b-to-b communication ................................................... 353.2.1 Blogs ......................................................................................................... 373.2.2 Social networks......................................................................................... 393.2.3 Communities ............................................................................................. 413.2.4 Other social media tools ............................................................................ 443.3 Social media in customer communication ....................................................... 464 METHODOLOGY OF THE STUDY................................................................. 504.1 Qualitative research .......................................................................................... 504.2 Data collection ................................................................................................. 534.3 Data analysis .........................................................................................................555 SOCIAL MEDIA IN BUSINESS-TO-BUSINESS COMMUNICATION ....... 585.1 Presentation of the empirical study ......................................................................585.2 Characteristics of social media as a communication medium ..............................595.3 Opportunities the social media creates for communication in b-to-b context……615.4 Challenges the social media creates for communication in b-to-b context ..........645.5 Social media in relationship building .....................................................................685.6 Utilization of social media tools in communication ..............................................706 CONCLUSIONS ................................................................................................... 746.1 Theoretical conclusions .................................................................................... 756.2 Managerial implications................................................................................... 806.3 Limitations and evaluation of the study ........................................................... 836.4 Suggestions for future research ........................................................................ 86REFERENCES ......................................................................................................... 87APPENDICESAppendix 1 Interviews ....................................................................................... 96Appendix 2 Framework for Interviews.............................................................. 97FIGURESFigure 1. The structure of the study. .......................................................................... 15Figure 2. Traditional one-to-many marketing communications model (Hoffman &Novak 1996). .............................................................................................................. 17

Figure 3. Many-to-many model of marketing communications (adapted fromHoffman & Novak 1996). .......................................................................................... 19Figure 4. Social media triangle (adapted from Ahlqvist et al. 2008, 14). .................. 20Figure 5. Relationship development process (adapted from Andersen 2001; Ambroseet al. 2008). ................................................................................................................ 22Figure 6. The role of social media in customer communication. ............................... 47Figure 7. The methodological choices of this research. ............................................. 53Figure 8. The research process (adapted from Miles & Hubermann 1994, 10 - 12). 57Figure 9. Themes used in NVivo data analysis. ......................................................... 59Figure 10. The role of social media in customer communication in business-tobusinessmarkets. ....................................................................................................... 79TABLESTable 1. Changes in marketing communication. ........................................................ 21Table 2. Characteristics of social media. ................................................................... 30Table 3. Opportunities and challenges of social media.............................................. 33Table 4. Social media tools and their strengths and weaknesses (adapted fromLehtimäki, Salo, Hiltula & Lankinen 2009, 4; Cisco 2009). ..................................... 36Table 5. Characteristics of social media as a communication medium. .................... 61Table 6. Opportunities the social media creates for communication. ........................ 64Table 7. Challenges the social media creates for communication. ............................ 67Table 8. Communication media in different stages of relationship developmentprocess. ....................................................................................................................... 70

1 INTRODUCTIONThe evolution of media has always been about increasing people’s choices in communication. The invention and dissemination of media deal with the growth of choices. We can tailor our communication with increasing precision according to our needs but the more options we have, the more we are required to consider which the best option is. (Levinson 2006, 125 – 126.) The ever increasing competitive environment with fragmented and dynamic marketplaces is challenging the business to- business marketers. An organization’s marketing communication must be coordinated to an integrated form so that all communication efforts have a united voice. Uniformity in the marketing communication is a requirement for a consistent image. (Garber & Dotson 2002.) Social media has increased its popularity as a communication medium between people. The social media and digital communication channels generally as a marketing communication medium have changed the roles of customers and sellers. Customers are no longer passive receivers of marketing communication but are self part of creating the communication and the content of the information. Thus customers have become active participants in the interactive communication. In consumer markets these tools have already been utilized for marketing activities but in business-to-business markets they are still not actively used. It is important to meet the customers and potential customers in mediums where they are. Thus knowledge about social media and benefits it has as a marketing medium and as a tool in customer communication is important for organizations.

1.1 Introduction to the topicTools are artifacts of a culture as anthropologists claim. The culture will change when a new tool is added to an existing culture. Media technologies allow communication anytime and anywhere. Information technologies have changed the creation, storing and distribution of information. These new technologies have made accessing and using of information available for a wider audience. (Goodman 2000.)

The communication in new media raises important questions in organizations like who are communicating, what the content of the message is and what communication channels are being used (Hearn, Foth & Gray 2009). The web with its global reach works both as a communication media and a transaction media. The digital marketing channels are used for sharing and searching for information as well as for interaction and transaction between customers and markets. (Sheth 2007.) The virtual world of web not just helps the organizations to manage information more effectively but also to create value for customers by answering better and broader to their needs (Rayport & Sviokla 1996). The interorganizational coordination and relationship improvement among business partners are also positive effects of the use of digital medium in business-to-business markets (Subramaniam & Shaw 2002).

Social media changes the roles of the seller and the customer. The main principle is to talk with customers not at them. The seller needs to engage the customers to communication either by providing such content or creating such environment that the customers want to visit the digital forums of the seller. Alternatively the seller can self participate in external digital environments. (Weber 2007, 4, 13 – 14.) It is important to recognize that it is customers and users of the social media applications who control the conversation and communication (Ryan & Jones 2009, 238). According to the Statistics Finland (2008) 88 % of the Finnish companies have a broadband connection and respectively 83 % of Finns uses internet regularly. In Finland there were used 34,5 million euro in advertisement on the internet at the first quartile of 2009 while the total investments in internet advertisement increased with 10 % from the year 2008 (IAB Finland 2009). Also according to Digimarketing Barometer the marketing in digital channels in Finland increases. Nearly 25 % of the total marketing budgets are expected to be used on digital marketing in 2009 and the proportion of investments in digital marketing is expected to grow further in the future. Over 40 % of the respondents to the barometer have their own marketing budget for digital marketing. (Pohto 2009.) According to a survey by the Association of Finnish Advertisers (2009) 41 % of companies are decreasing their marketing budgets in 2009. Although the total monetary investments are decreasing the investments to digital marketing are increasing which implies that the use of digital marketing channels in marketing is becoming more popular. Over 50 % of the respondents are increasing their inputs on digital marketing. Especially inputs to email, search engine marketing and web-marketing are increasing. Globally it is expected that the organizations will spend $ 4,6 billion by the year 2013 for

social media technologies (Forrester Research 2009). Companies in b-to-b markets still have not fully understood the reason to utilize digital marketing in marketing and it still seems to be a channel that is more used in b-to-c markets (Pohto 2009). However, b-to-b companies generally invest more on digital marketing than consumer-oriented companies (Jensen 2006). Possibilities that the digital marketing and especially social media create for marketing activities are an increasing challenge for organizations. Therefore the role of social media in customer communication is an interesting and useful research topic to study. European Commission (Eurostat 2008, 482) has acknowledged that information and communication technologies are critical for improving competitiveness of European industry and for meeting the demands of its society and economy. According to Singh, Veron-Jackson and Cullinane (2008) there is a gap between the available technologies to be used in customer communication and the efficiency that these technologies are used. Sheth (2007) suggests that the internet revolution should be one of the focus topics on academic studies on business-to-business marketing. The internet is both a communication and a transaction media and Sheth (2007) believes that digital marketplaces will change the traditional marketplaces in business-to business markets as they already have changed in business-to-consumer markets. Also Creese (2007) recognizes the great potential social media have in the business environment as a means of communication, collaboration and collection. The communication in social media is chosen for the study topic because communication happens in relationships between people who are inherently social.

Recommendations from people one knows and trusts are powerful influencers of business decisions. (Shih 2009, 3.) Social media as a new media is a prioritized research topic in the field of marketing. Marketing Science Institute (MSI) has listed new media as one of the key research topics in marketing. MSI emphasizes that marketing managers should have the understanding how to use social media tools. (Marketing Science Institute 2008). There is some research done about social media in the consumer markets (e.g. Riegner 2007) but at the business-to-business markets it is a research topic which needs to be studied further. The use of social media as well as the investments made in digital marketing are increasing rapidly, thus there is a need to study the use and impacts of the social media to communication. This study aims to find out what role the social media and its different tools have on customer communication in business to- business markets. The viewpoint of this study will be the seller organization operating in business-to-business markets. Perspective of users in digital environment has been studied earlier (Ozuem, Howell & Lancaster 2008). However, there is a need to study social media from the perspective of seller organizations.

Also Hearn et al. (2009) are recalling for scientific studies of the use of new media, especially the use and impacts of the new media in corporate communication are interesting topics to study. Boyd and Ellison (2008) have summarized the research done on social networks. They identified that research on users, reasons and on what purposes social networks are used is still inadequate. This study will try to contribute to

the phenomenon of social media focusing on customer communication in b-to-b context.

1.2 The objective of the study and research questionsThe objective of this study is to create an understanding of what is the role of social media in customer communication in business-to-business markets. Customer communication in this study is defined as the communication which occurs between the seller and potential or existing customers. The social media changes the traditional one-way communication to more interactive communication which in b to-b context occurs in a customer relationship. The study aims to recognize the role that the social media has in customer communication through identifying the characteristics of social media. Opportunities that the social media creates for the seller as well as challenges the seller has to recognize when using social media are also explored. Utilization of social media tools at different stages of customer relationship is also explored. Although the communication is studied in the relationship the focus will be on the seller company. The aim is to frame a picture of the role of social media in customer communication in business-to-business markets. The context of this study is Finland. The frame is constituted by answering to following research questions.

The main research question isWhat is the role of social media in customer communication in business to-Business markets?Sub-questions which are contributing to main research question areWhat kind of characteristics the social media has as a communicationmedium?What kind of opportunities and challenges the social media induces forcommunication?How the social media can be utilized in current customer relationships andwith potential customers?

The research questions above are chosen in order to create an understanding of the phenomenon called social media. Exploring the general characteristics which differentiates the communication in social media from communication in traditional media helps to understand why the changing business environment requires evaluation of new communication tools. To recognize the opportunities and challenges of social media from the viewpoint of the seller company helps in evaluating why and how to use social media as a communication medium. The relationship viewpoint gives insights about how different social media tools could benefit the seller in managing and developing company’s customer relationships.

Understanding the use of different tools and recognizing which tool is appropriate in a given situation is important so that the company can use them correctly with different customers and communication activities.

1.3 Introduction to research methodsThe methodology used in a study has implications to the research process as well as to the interpretation of the results. In marketing research the methodology refers to research process and choices the researcher does during this process. The methodology covers all the decisions made during the research process. It can be described as an analytical approach because it covers different dimensions. The taxonomy of methodologies involves five different levels which are axiology, context, communication, sample and time. Different levels have different alternatives in which the researcher chooses the best ones to the particular research. (Easton 1995, 411, 451 - 453.)

According to the taxonomy of methodologies by Easton (1995, 453) research choices in this study are following: The axiology of this study is primary descriptive. The aim is to create an understanding of the studied phenomenon. The study can however be characterized also as exploratory due to the novelty of the topic. The second level, context of the methodology, is in this study in-context. The context of the studied phenomenon has an important part in the study. The in-context level leads to the third level which refers to communication. This study uses communicative methods instead of non-communicative. Qualitative research methods are used to interpret the studied phenomenon instead of finding causal explanations. The purpose of this study is to build a holistic picture of the role of social media in customer communication in business-to-business markets, so a qualitative research approach fits well for this purpose. The fourth-level, sample, is collected with interviews. The interviewees represent Finnish companies operating in business-to-business markets as well as experts of social media. Time dimension is contemporary since the temporal interest is in present time.

1.4 Definitions of key conceptsBusiness-to-business (b-to-b) markets have features that differentiate them from business-to-consumer (b-to-c) markets. B-to-b buyers are fewer but they are larger than in b-to-c and seller-customer relationships are close. The purchasing is professional and there are several influences that affect the buying. The buying process is complex and requires multiple sales calls. Purchasing is direct from manufacturers and there are not so many intermediaries than in b-to-c buying. The demand for business goods derives from the demand of the final good. (Kotler & Keller 2006, 210 – 212.)

Marketing communication aims to maintain the interaction with different markets and to reinforce the awareness of the company and its products. Marketing communication that highlights the relationship aspect focuses on creating, maintaining and developing customer relationships through communication which either directly or indirectly affects the sales of the company. (Isohookana 2007, 62 – 63.) The marketing communication includes every kind of communication between the seller organization and the buyer about the organization’s offering (Ottesen 2001, 35).

Marketing communication medium is defined as “anything that is capable of carrying or transmitting a marketing communications message to one or many people” (Pickton & Broderick 2005, 104). Communication channels can be personal or nonpersonal.In personal communication channels the communication occurs between two or more persons and the effectiveness is derived through individualized presentations and feedback. Non-personal communication channels include the media and the communication is directed to more than one person. (Kotler & Keller2006, 548, 551.)

Social media is a combination of content, user communities and social media technologies. Content is user-created and it has different kinds of forms (text, photos, videos, tags). Communities enable the social activities and communication between people either directly or indirectly through media objects. Social media technologies and applications enable creation and sharing of content in these communities. (Ahlqvist, Bäck, Halonen & Heinonen 2008, 13.) Participation and user-created content are the key principles of social media (Ahlqvist, Halonen & Heinonen 2007, 8).

Social media tools are technologies and applications that enable the communication in social media. There are several categorizations of social media tools. This study uses the categories by Constantinides and Fountain (2008) who divide social media tools to blogs, podcasts, social networks, communities, content aggregators and virtual worlds. In this study the concept of social media includes the tools used for communication in social media. The social media tools which are explored more closely in this study are blogs, social networks and communities. Also other social media tools are shortly introduced. When using the concept social media, this studyrefers to social media as a communication medium and by different social mediatools as technologies enabling the communication.1.5 The structure of the studyThe study consists of six main chapters. The introduction chapter leads to the topic ofthe study and represents the objective as well as the key concepts used in this study.The theoretical part of this study is represented in chapters two and three and consistsof theory of marketing communication and marketing communication in socialmedia. Methodology of the research is shortly introduced before the empirical part ofthe study. Conclusions as well as the evaluation of the study are drawn in lastchapter. Future research topics are suggested in the end. The structure of the study isrepresented in the figure below (see Figure 1).15Figure 1. The structure of the study.1 INTRODUCTION4 METHODOLOGY OF THE STUDY5 SOCIAL MEDIA IN B-TO-B COMMUNICATION2 MARKETING COMMUNICATION3 MARKETING COMMUNICATION IN SOCIAL MEDIA6 CONCLUSIONS

162 MARKETING COMMUNICATIONThe theoretical framework of this study is drawn from marketing communicationtheories and research made on digital marketing specifying on social media. Thetheory focuses on social media in customer communication and utilization ofdifferent social media tools in business-to-business context. This study will explorefeatures of the digital marketing which have an effect on communication in socialmedia. Next this study will represent the features of marketing communication. Theviewpoint is the communication in business-to-business markets and in digitalmarketing communication. Different models of relationship development are used todescribe the communication in business-to-business context.2.1 Traditional marketing communicationMarketing communication can be defined as the collection of the elements inorganization’s marketing mix which facilitates exchanges with customers. The mainobjectives of marketing communication are to create demand and brand awareness,enhance attitudes, influence the purchase intentions and facilitate the purchase(Shimp 1993, 8, 28 - 30). The tasks are to communicate the value of the marketingoffering of the seller organization, to guide buyers to purchase the offering and toremind the buyers about the offering (Ottesen 2001, 35 – 36).The traditional marketing communication happens between the sender of thecommunicated message through the medium to the customers. This is called one-tomany-marketing communication model (see Figure 2). The communication is onewayas the organization sends the message through a medium to customers. There isno feedback from the customers included in this model. (Hoffman & Novak 1996.)17Figure 2. Traditional one-to-many marketing communications model (Hoffman & Novak 1996).The traditional one-way communication has changed to interactive and collaborativecommunication. Collaborative communication can be defined as a combination ofintensive, relationship-building communication facets. These facets includefrequency, directionality, medium and content. The communication frequency refersto the amount of contact between partners. The direction of communication can beeither one-way or interactive. The communication medium is the medium which isused to transfer the content of communication and the formal modes ofcommunication. The content is the message transmitted between the partners in a bto-b relationship. (Mohr & Nevin 1990; Mohr, Fisher & Nevin 1996.)When planning marketing communication it is important to take an expandedapproach to marketing channels. Not only the traditional tools, such as TV and printmedia, but also other contact points should be considered. A customer-centriccompany takes the customer’s perspective in deciding which channels to use to reachthe target markets. (Kliatchko 2008, 149 – 150.) As the technological applicationsdevelop constantly, the media choices for communication are changingsimultaneously (Ambrose, Marshall, Fynes & Lynch 2008). Using of several

mediums for marketing communication enhances the effect of each of used mediumsas they contribute to others. The combined effect of several mediums exceeds thesum of the effects of individual mediums. This is called a cross-media synergy. Thissynergy across multiple media makes the medium choices of communicationimportant for marketers. It is important to be present in several mediumsSeller Content MediumCustomerCustomerCustomer18simultaneously to ensure that the customers are reached in contact points where theyare. (Naik & Raman 2003.)2.2 Digital marketing communicationThe digital environment offers tools and services for communication. Theindependence of time and place, ease of entry as well as the interactivity inmarketing creates opportunities for companies to communicate both with new andexisting markets in an integrated way. The global availability makes it easier to keepup the continuous communication with customers in different markets at all times.Especially in business-to-business markets where the offering can be very complexand specified, the availability is important. (Avlonitis & Karayanni 2000; Berthon,Lane, Pitt & Watson 1998.)The digital marketing communication has changed the traditional marketingcommunication. Information is available from many sources and the customer has todecide self which information is relevant. The marketing communication model hasbecome more complex; from one sender through one medium to several senders withdifferent information through the medium to customers. The customers areinteracting with the medium, with companies and with other customers creating thecontent themselves. In this model the primary relationship is with the medium theparties interact with, not anymore between the sender and the receiver (see Figure 3).(Hoffman & Novak 1996.) The sender and the receiver both have a two-waycommunication with the media (Steuer 1992). The interactive communication isbased on contact. By interaction the function of communication will extend andbecome more diverse than the traditional one-way channel from a company tocustomer. By listening to the markets, businesses will collect information on the aimsand activities of important customers and the extent of their knowledge about thebusiness. (Linnanen, Markkanen & Ilmola 1999, 210.)19Figure 3. Many-to-many model of marketing communications (adapted from Hoffman & Novak1996).The digital communication tools can be used for information search by the customersand for relationship development by the seller. The information search in purchasingprocess does not require personal face-to-face contact as more negotiation later on apurchase process does. The information can be gathered easily without

communication with the company, especially with highly standardized products.When the products become more complex or needs to be customized thecommunication becomes more relevant. (Moen, Madsen & Aspelund 2008.) Inbusiness-to-business markets the digital marketing is used to reach new businesscustomers, to serve current customers more effectively and to obtain buyingefficiencies and better prices (Armstrong & Kotler 2009, 462). In Finland the mostpopular digital marketing channels are companies’ own web-sites, e-newsletters,search engine marketing, direct marketing via e-mail and web-marketing.Communication tools which usage is increasing among business-to-businesscompanies are e-newsletters and e-mail. (Pohto 2009.)Communication, collaboration and the use of available data are the focus areas ofbusinesses today. Business operations can be done digitally so employees cancommunicate and collaborate anywhere at any time. (Solomon & Schrum 2007, 2,20, 49.) Digital channels enable accessing, providing and sharing information inbusiness networks (European Commission 2008). The communication content hasbecome the most important element of the communication. The customer takes partin choosing the content, the channel and the timing for the communication in digitalmarketing. (Merisavo, Vesanen, Raulas & Virtanen 2006, 32.) The information isSeller Content MediumCustomerCustomerSeller ContentContentContent20created in interaction thus the content is built out of real needs and use (Tredinnick2006).Social media in this study is formed from three elements: content, communities andnetworks and tools (see Figure 4). The content is user-created and can be of differenttypes. Communities and networks refer to the social nature of the media: peoplecommunicate with each other either directly or via media. The third element, tools, istechnologies and applications which enable people to participate in creating andsharing the content. (Ahlqvist et al. 2008, 13.) The customers are co-creators ofcontent on the social media. It is however important to maintain the balance betweenprofessional and user-generated content. A marketer can provide information aboutthe company and its products but also accept that the customers contribute to thecontent as well. (Weber 2007, 38.)Figure 4. Social media triangle (adapted from Ahlqvist et al. 2008, 14).Digital communication channels have changed the traditional marketingcommunication. Traditional one-way communication where the sender creates thecontent has become two-way interaction where the parties interact with the medium.Social media enables the customers to become co-creators of the content which iscreated in a dialogue with the help of different social media tools. Table 1 combinesthe previously presented changes in marketing communication. The differences

regard the communication type and content creation that the digital marketingcommunication tools and applications induce for communication.ToolsCommunities andnetworksSocial mediaContent21Table 1. Changes in marketing communication.Traditional MC Digital MC Social media MCCommunication type One-way Two-way CollaborativeCreation of thecontentSeller company sendsthe message to thecustomer.Seller and thecustomer have twowaycommunicationwith the medium.The content is createdin interaction.2.3 Marketing communication in relationship developmentIn business environment it is important to emphasize long-term relationships withbusiness partners. The communication in business-to-business markets should focuson relationship development rather than on single transactions. Selling process ismore expensive to new customers than existing ones, therefore long-termrelationships not just increase the commitment from customers’ side but they alsoincrease the profit of the seller company. Key to developing relationship with thecustomer is interactive communication. Marketing communication is interactive andthe communication occurs in a dialogue between the seller and the customer. Therole of communication in relationship development is thus essential. (Duncan &Moriarty 1998.) Therefore the stages in relationship development will be theviewpoint of communication in this study. Different models (Ford 1980; Dwyer,Schurr & Oh 1987; Andersen 2001; Subramaniam & Shaw 2002; Ambrose et al.2008) for relationship development are used to create an understanding howcommunication strengthens the relationship in business-to-business context.A model created by Ford (1980) includes five stages: at the pre-relationship stagethe buyers are seeking sellers, at the early stage the potential sellers are in contactwith buyers to negotiate or develop a specification for purchasing, the developmentstage occurs as deliveries of continuously purchased products increase, the long-termstage is characterized by the companies' mutual importance to each other and thefinal stage is marked by an extension of the institutionalization process to a pointwhere the conduct of business is based on industry codes of practice. According to

Dwyer et al. (1987) there are five different stages in buyer-supplier relationships:awareness, exploration, expansion, commitment and dissolution. Subramaniam and22Shaw (2002) have identified four stages: search, processing of the order, monitoringand control as well as coordination. This model is useful especially for purchasingrelationships as it highlights the possibilities created by digital marketing inprocurement process. Ambrose et al. (2008) have combined the relationshipdevelopment models by Dwyer et al. (1987) and Subramaniam and Shaw (2002) anddeveloped a four-stage model that explores the behavioural and functional aspects ofeach stage of the relationship. Andersen (2001) uses four stages of relationshipdevelopment: the pre-relationship, negotiation, relationship development andtermination stages. All above mentioned models proceed the same way so this studywill combine these models and use the created, three-stage model, in exploring thecommunication in social media (see Figure 5). Although communication is importantalso in the dissolution of the relationship, the termination stage of the model is notincluded to communication in this context. The three stages, pre-relationship,negotiation and relationship development stage, are introduced next from thecommunication point of view.Figure 5. Relationship development process (adapted from Andersen 2001; Ambrose et al.2008).Communication in the relationship development process is chosen as the viewpointfor this study in order to identify different communication channels and modes atFulfil transactionChanging needs andcapabilitiesInitiate relationshipExperiencerelationshipRenewal / resolutionNegotiate contractPre-relationship stageNegotiation stageRelationshipdevelopment stageCommunication task:Communication type:Awareness Persuasion CommitmentOne-way Two-way interaction Two-way interactionBehaviouralaspect:Relationshipstage:Functional

aspect:23different stages of the relationship development. The stages of the relationshipdevelopment model have different tasks concerning the customer communication. Atthe pre-relationship stage the task is to create awareness, at the negotiation stagepersuade the customer for transaction and at the relationship development stage tocommit the customer to the relationship (Andersen 2001).2.3.1 Pre-relationship stageThe relationship building starts with the pre-relationship stage. At this stage the maintask of communication is to create awareness of the company and its products and toidentify potential partners to start a relationship with. The behaviour ofcommunication at pre-relationship stage is to initiate a relationship through contractnegotiation. (Dwyer et al. 1987; Andersen 2001; Subramaniam & Shaw 2002;Ambrose et al. 2008.)The communication at the pre-relationship stage usually is one-way as the sellerprovides information to the buyer. Although communication mainly is one-way therecan also be active communication from the buyer’s side. The buyer may seek forextra information from personal sources. Other suppliers and even competitorsprovide information that the buyer actively looks for. (Andersen 2001.) Differentchannels for awareness creation and information searching are useful for both parties(Subramaniam & Shaw 2002).2.3.2 Negotiation stageThe negotiation stage is characterized by exploration. Parties are interacting andexploring each other. Transactions are negotiated and specifications of orders are set.The processing of the transactions and initial transactions starts to take place. Thecommunication becomes more interactive at the negotiation stage when the suppliertries to persuade the buyer for transaction. (Dwyer et al. 1987; Andersen 2001;Subramaniam & Shaw 2002.)24At the negotiation stage the functional day-to-day fulfilment of transaction leads toexperiencing the relationship (Ambrose et al. 2008). Representatives from the sellerand the buyer companies are in a dialogue trying to find a resolution to the needs ofthe customer and to try to decrease the uncertainty between the parties. The sellercompany’s primary objective is to make the transaction happen by persuasion.(Andersen 2001.) The negotiation stage does not automatically lead to a moredeveloped relationship. Negotiation requires interactive communication of wants andneeds of the parties as well as agreements on investments and resources. Thenegotiation stage is needed for the parties to test the compatibility and performanceof the other. (Dwyer et al. 1987.)2.3.3 Relationship development stageThe relationship development stage can be referred as the expansion stage. At thisstage the commitment between parties is increasing as the relationship becomes longtermand the communication more interactive. The interdependence and risk-taking

in the relationship increases and parties invest to maintain the relationship.Transactions and coordination for further supply take place as the relationshipdevelops. (Dwyer et al. 1987; Andersen 2001; Subramaniam & Shaw 2002.)The relationships may change at this stage due to changes in customer needs or inseller’s capabilities. These changes lead to re-negotiation of contract or resolution ofthe relationship. (Ambrose et al. 2008.) Parties become more dependent on eachother and begin to benefit from the relationship as it evolves and deepens. From thecommunication point of view rules which help to guide the conversation in therelationship are developed. (Andersen 2001.) The communication in relationshipswhich already are established involves persuasion, informing, listening andanswering (Duncan & Moriarty 1998). At this stage the parties are primarily onlycommunicating with each other and other potential partners are excluded (Dwyer etal. 1987).252.3.4 Digital communication in the relationship development processPrimary communication modes are planned communication, contact creation andconnectedness. Planned communication is used at the pre-relationship stage whereinitial relationships are building. Planned communication includes formalcommunication messages and the forms to deliver the messages are traditional. Thelevel of interactivity is low in planned communication. In contact creation, whichoccurs at the negotiation stage of the relationship, the seller company approaches thecustomer directly with more personalized messages. At this stage the goal is to createa link to the customer either personally or through digital medium. The interactionbetween parties is higher and includes some participation. The connectedness at therelationship development stage is characterized by high participation and dialoguebetween parties. This stage can be seen as a consequence of previous stages.(Lindberg-Repo & Grönroos 2004.)The digital marketing communication channels enable the objectives set formarketing communication through relationship development: creating presence,creating relationships and creating mutual value. Creating presence refers toawareness of the organization and its offering. Creating presence is especiallyimportant at the pre-relationship stage of the relationship development process wherethe awareness of the organization is created. At the negotiation stage the creation ofrelationship occurs in transactions and communications between the customer andthe organization. The organizations collect information about the customers and usethis information when planning the marketing communication. At the relationshipdevelopment stage mutual value is being created to both parties when workingtogether towards common goals. (Rowley 2004.)Taking the digital aspect to business activities and communication is not aboutsystems and technology. Optimally it is managing relationships with customers,suppliers and business partners in a complex and global competitive environment.(European Commission 2008.) Social media in synergy with traditionalcommunication tools enables the communication with existing customer26

relationships and social media helps to develop relationships with customers beyondthe traditional media (Hearn et al. 2009). Constant customer contact is important indeveloping customer relationships. Company should encourage its customers tointeractive, two-way communication which is a principle in communication in socialmedia. Open channels where it is easy for customers to give feedback, participate inproduct development and share information with the company as well as with othercustomers enhance relationships. (Merisavo et al. 2006, 33.)Different communication channels are preferred at different stages of the relationshipdevelopment. At the beginning of the relationship face-to-face meetings could beused to create a foundation for a successful relationship and to take advantage of therichness of the media. Information richness refers to the ability of information tochange the understanding (Daft & Lengel 1986). The use of rich informationcommunication media appears to have advantages for the parties adding value withinthe relationship. With uncertain relationships e-mail could be used as a primary tool.(Ambrose et al. 2008.) The seller finds potential customers with the help of thedigital medium while the customer may benefit from different search engines whensearching for relevant information among all of the information provided by differentcompanies (Subramaniam & Shaw 2002).As the relationship develops and the uncertainty decreases the communication mediachoice becomes less rich focusing more on digital medium depending on the needs ofthe parties. Especially the use of e-mail as well as telephone may increase. Thedigital communication channels enable the day-to-day communication betweenparties and make the routine activities concerning the transaction handling easier andfaster. In mature relationships the digital medium is often chosen, however face-tofacemeetings are also preferred, especially in relationships with strong social ties.The use of face-to-face meetings in mature relationships is assumed to generate fromsocial benefits of the relationships. Relationships with weaker social ties preferdigital communication media. The interaction between seller and buyer strengthensthe relationship during different stages. It is important for the marketer to not to havetoo prescriptive approach for communication because it could hinder effective27communication. Using digital communication in all circumstances or by not makingdiverse communication media available may hinder the development of the complexbuyer-seller relationship. (Ambrose et al. 2008.)283 MARKETING COMMUNICATION IN SOCIAL MEDIAMarketing communication in social media includes the customers to thecommunication process. Next this study sums up the characteristics of social mediaand the opportunities and challenges it creates for communication in order to createan understanding of the role of social media in customer communication. Closerfocus will be on business-to-business context. Different social media tools will alsogenerally be introduced.3.1 Marketing in social mediaOriginally social media and social media tools are used in organizations for

communication with existing customers and internal communication as well as tocreate brand awareness and to reach new markets. Increasingly the use of socialmedia has become a peer-to-peer communication medium where customers createthe content using the applications and services of social media. (Hearn et al. 2009.)Companies interact through communities which are used for communication andtransactions. Drivers for companies to use the social media are commercial andcustomer orientation in which the market orientation, customer requirements andcustomization of the offering affect. Segmented needs of diverse customer sectorsmeans that for segmentation it is important that all customers are being treatedindividually. International markets and competition refers that dynamics and physicalas well as cultural aspects of international markets need to be taken account.(Ahlqvist et al. 2008, 23 – 27.)Social media enables rapid interaction between the marketer and customers whichhelps to collect information and conduct market research fast. Also in customer-tocustomercommunication the rapid interaction easies the peer recommendation indecision-making. (Dahan & Hauser 2002.) Social media tools are becoming morepopular also in business-to-business marketing. Customers, distributors, resellers andother partners of the company are expecting more b-to-c-like personalizedexperiences. Social media plays a big role in b-to-b marketing in driving traffic,29building thought leadership and facilitating word of mouth referrals. (Madden 2008.)To succeed in marketing through social media requires that the marketer hassomething valuable content to deliver. It is not enough just to be present but themarketer should engage the audience by meaningful purpose. The marketer also hasto be ready to listen and to talk; interaction is the key element, thus the marketershould not own the conversation. It is also important to realize that the social mediadoes not work like the traditional media, thus specific marketing strategies to socialmedia should be considered. (Lowery 2009.)3.1.1 Characteristics of social mediaFeatures that can be used in describing the social media are communications,interconnectedness, immediacy and community (Solomon & Schrum 2007, 24).Characteristics for social media are customer-centric, user-generated, interactive anddynamic. Social media fosters community participation and builds on collectivecommunity intelligence. (Singh et al. 2008.)Features that are mutual to social media are openness, peering, sharing and globalaction. Openness among business partners increases transparency. Transparency isimportant to business relationships as it increases the trust and therefore results inlower costs and increased loyalty. Peering lowers the hierarchical levels ofcompanies and increases the innovativeness. Peer production is self-organized so it ismore effective and is mostly used in information goods. Sharing of information anddigital content is one principle of the social media. Information and content shouldgenerally be open to everyone but intellectual property rights can hinder the sharing.The globalization is due to the collaboration and ways that companies orchestrate

their capabilities to be innovative and productive in order to stay globallycompetitive. A company, which is truly global, has no physical or regionalboundaries. (Tapscott & Williams 2008, 20 - 30.) Social media tools increase theopenness and transparency both internally in the organisation but also externallyamong customers and other stakeholders (Kangas, Toivonen & Bäck 2007, 58).30Characteristics that emphasize the social aspects of the social media are participation,openness, conversation, community and connectedness. Social media encourages forparticipation through contributions and feedback from interested users. Social mediaservices are open for comments and content from users. Conversation highlights theinteractive feature of the social media compared to one-way broadcasting in atraditional media. Communities are formed easily and effectively around commoninterests. Connectedness refers to links of other users and sites. (Mayfield 2008, 5.)Social media emphasizes the openness and forms of participation based on usergeneratedcontent (Constantinides & Fountain 2008). Participation includes user-touserinteraction and user-to-content interaction. User-to-user interaction refers topeople interacting with each other through e-mail, instant message, chat room,message boards and other digital venues. User-to-content occurs when people ratethe content, save sites to their favourites, share with others and post comments. (Shao2009). Table 2 draws together the characteristics of social media.Table 2. Characteristics of social media.Characteristic Advantages for seller companyUser-generated content Co-creation of the contentInteractive Feedback of customer needs and changesParticipation Increases the engagementTransparency Increases the opennessPeering Increases WOM–marketing and innovativenessCommunity Increases commitment and connectednessRevenue models in social media include giving the product or service to customer forfree, charging monthly fee for using the service, sponsoring and advertising forgetting incomes and sharing revenue. There are also organizations which do not tryto gain profit at all: Wikipedia’s operation is purely based on donations. In socialmedia it is fundamental to a company to be found easily and fast as a result of thesearch process. Internet has become very important channel for searchinginformation so the findability there has a crucial role in marketing. Search engineprograms can help the company to become more visible in the digital environment.(Salmenkivi & Nyman 2007, 262 - 263, 278 - 286.)313.1.2 Opportunities and challenges of social media for b-to-b companiesFrom the business point of view there can be recognized opportunities that the socialmedia creates. According to Ahlqvist et al. (2008, 16 – 17) the opportunities arecore, enabler, feature and built-on. On core social media applications the content andactivity are user-created and the revenues relate directly to these activities. An

example of a core social media application is YouTube. The enabler refers to socialmedia practices and processes to accomplish a process or function within a business.Wikipedia is an example of an enabler. Social media is used as a feature whenfeatures from social media are being adapted to web sites. For example some newsservices operate as features. The last opportunity is the built-on which refers that thesocial media applications would not be possible or needed without the user-generatedcontent and interest towards them. Sub-groups of built-on opportunity are tools andservices for creating social media applications (Google), tool or service built onsocial media content (Technorati) and social media as a delivery channel (RSSfeeds).Marketers benefit from the social media in several ways. Brand building is easier totarget. Vertical communities by industry or horizontal communities by function canbe used to create brand awareness. When launching new products, the digitalenvironment helps to reach greater audience and better targeted markets thantraditional offline marketing. Social media tools enable consistent communicationwith customers and other business partners. Sharing information among the industryand collaborating with stakeholders can also enhance innovations. Customerfeedback helps to develop products to be more customer-friendlier. Also the internalcommunication is easier in digital environment. Intranet and online forums foremployees keep them updated for company news and enables the knowledge sharingamong employees. (Weber 2007, 23 – 24.)Social media tools enable more personalized and faster interaction with customersand thus enhance corporate credibility and relationships (Kho 2008). Companies canadopt inexpensive social media applications with small investments. The tools help32to coordinate large and complex business networks. (Kangas et al. 2007, 58.)Communication happening digitally compared to face-to-face communication hasadvantages. Digital communication allows users to compensate for missing cues inimages, audio, texts and other data by using available textual cues. Users can focusmore on the content by carefully reading, listening or viewing it digitally. Users canengage in more informal conversations and settings. (Shao 2009.)Collaboration with customers enhances the brand awareness, helps to gatherinformation about customers, creates product development ideas and enhancesinnovativeness as well as increases the effectiveness of advertising throughpreferences about products and services. The amount of knowledge and ideas that agroup of people have is much bigger than any individual or a company has itself. Togain customers attention and building brand awareness but also to get the customersto involve in product development and marketing is relevant. (Salmenkivi & Nyman2007, 221 - 225.) The collaboration and peer production, sharing knowledge,capabilities and resources within broad horizontal networks of participants, canaccomplish much more than one company acting alone (Tapscott & Williams 2008,18). Reasons to involve in marketing in social media are to get deeper engagementwith customers, get insights that are not available through other channels and beingpresent in channels where company’s customers are present (Ryan & Jones 2009,

155). When trying to reach new customers the social media creates opportunities inreaching large amount of potential people cost effectively. Also the viral marketing isan opportunity to gain new customers. (Merisavo et al. 2006, 138.)There are also challenges that the social media causes to companies. Identity andprivacy protection are issues related to social media. Users are concerned of trustissues. The users are expected to trust other users, often strangers, in social mediaapplications. Confidential and private information can end up in wrong hands and tobe misused. Low entry barrier may affect that the value of the content may also below and content misleading. Stickiness of old habits concerning the traditionalcommunication channels compared to new channels may hinder the utilization ofsocial media applications. Also legislation and copyright problems may hinder the33development of these applications. A challenge is to inspire enough critical mass tocontribute to the production of content. (Ahlqvist et al. 2008, 29, 33; Kangas et al.2007, 57.)An important element of the social media is the updated information. Users expectthe content to be fresh and updated at all times so the challenge is to invest enoughresources in order to keep the content updated. (Creese 2007.) Challenging is also tokeep a balance between the user-generated and the marketer-generated content(Weber 2007, 38). Table 3 summarizes the opportunities and challenges of socialmedia.Table 3. Opportunities and challenges of social media.Opportunity ChallengeBrand awareness / building Privacy issuesInformation search / sharing Trust issuesTargeting / reaching market Value of the contentEfficient customer communication LegislationViral marketing Engagement to use the social mediaSmall investments in implementing the tools Resource investments3.1.3 Viral marketingWord of mouth (WOM) –communication is a customer-dominated channel formarketing communication where the sender of the communication is independent ofthe market (Brown, Broderick & Lee 2007). Viral marketing is marketer-originatedword-of-mouth communication which takes place in digital environment. Viralmarketing uses customers’ communication networks to promote and distributeproducts. Viral marketing can be defined to communication and distribution that usescustomers to transmit digital products digitally to other potential customers in theirsocial group and to motivate the contacts to transmit the product even further. (Helm2000.) In viral marketing the message is communicated from one person to anotherafter the sender has sent out the original message. Viral marketing can be a verypowerful communication form. People generally trust more on messages receivedfrom others alike than from the seller whose aim is to maximize own profit.34Although it is powerful in communication, viral marketing is very difficult to control

so it is also a risky communication medium. (Pickton & Broderick 2005, 109.)The viral marketing uses customer-to-customer or peer-to-peer communication toshare the information about the company and its offering. The viral marketing can beeither intentional or unintentional. The communication is intentional when acustomer promotes a company to his / her peers. Unintentional communicationoccurs for example through e-mail when there is an advertisement at the end of eache-mail the customer sends. The customer cannot influence to unintentional viralmarketing since it happens automatically. Because the viral marketingcommunication happens in digital form, not in face-to-face communication, therecipient of the viral marketing communication may not be looking for theinformation and may not pay so much attention to it as in face-to-face meeting. (DeBruyn & Lilien 2008.)In traditional WOM-communication the similarity of characteristics of peer andstrong ties in relationships play an important role. However, in digital environmentthe similarities of interpersonal relationships are not so crucial feature due to theindividual characteristics not being visible digitally. Interests of the group and thecontent of the information affect more than individual characteristics. Neither thestrong ties are so important than in offline environment because in online the sourceof the information is the channel not an individual. (Brown et al. 2007.) The sourceexpertise and credibility are important features in business-to-businesscommunication. Challenging in a digital environment is the recognition of thesource. Recipients may have problems with recognizing relevant sources ofinformation because viral communication in digital channels does not happenbetween acquaintances but occurs between unknown people through mediatedchannels. Customers must thus evaluate the available information and its sources.(De Bruyn & Lilien 2008; Brown et al. 2007.) The objective of viral marketingtraditionally is to reach a maximum amount of potential customers. From therelationship development viewpoint the marketer should also aim to keep customers.Viral marketing as other marketing activities requires the establishment of long-term35relationships with customers. (Helm 2000.) From the social media tools especiallyblogging can be described as a form of viral marketing. The content in blogs is usergeneratedand they use social networks and interactivity in sharing the content.(Singh et al. 2008.)3.2 Social media tools in b-to-b communicationIn this study the social media tools and applications are divided into categoriesaccording to Constantinides and Fountain (2008). The categories are blogs, socialnetworks and communities. Podcasts, content aggregators and virtual worlds arepresented together with other social media tools. Social media tools highlight thepower of users to select, filter, publish and edit information and to participate increation of content on social media (Tredinnick 2006).Ways that a company can actively plan its marketing activities with the help of socialmedia is by gathering information and following discussions written in social media.

Companies should follow writings and discussions about themselves with the use ofdifferent applications. For example Technorati is a social media service that gathersdata from over 1,5 million blog posts and introduces readers to blogs and socialmedia content (Technorati Media 2009). Downloading of own advertisements to theweb is a way the marketer gains wider audience and possible viral marketing aspeople tell about these ads to their peers. Viral marketing can also be used moreadvisedly. The marketer can push information through different channels to targetmarket and hope that the message will be interesting enough for the customers tospread it forward. The company can use its customers as affiliates or include thecustomers in planning the marketing communication. Crowdsourcing is the mostincluding way making the customers be a part of the company. In productdevelopment the customers can be co-innovators. This is used for example in masscustomization of products. The challenge in crowdsourcing is the licence andcopyright issues. (Salmenkivi & Nyman 2007, 229 - 230.)36Social media can be used both internally and externally in organizations. Internalapplications include knowledge sharing among personnel, management and sharingof information, recognizing expertise, supporting marketing, creating innovationsand developing knowledge. Externally the social media is used for communicationand interaction with customers and to get the customers to participate in innovations.(Otala & Pöysti 2008, 48.) Social media tools have strengths that have an effect onmarketing activities but there are also weaknesses. Table 4 combines the use ofdifferent social media tools and their strengths and weaknesses. As an example of awell organized social media campaign in business-to-business markets is Cisco’sproduct launch of ASR 9000 Router. Cisco used different social media tools to createawareness of the product novelty. Table 4 introduces examples of this campaign.Table 4. Social media tools and their strengths and weaknesses (adapted from Lehtimäki,Salo, Hiltula & Lankinen 2009, 4; Cisco 2009).Tool Use Strengths Weaknesses ExampleBlogs andpodcastsInforming ofcurrent events andnoveltiesEasy and cheaptool to maintainRequires time andconstant updatingCisco’s ownblog:blogs.cisco.comSocial network Content sharing,creating andmaintaining

relationshipsEasy to set up aprofile, makespossible targetedadvertisingHow to induceusers toparticipateFacebook:Cisco SupportGroupCommunities Maintainingcustomerrelationships,brand buildingIntense two-waycommunicationRequires lots ofresources tomaintainTwitter:Cisco accountContentaggregatorsInforming ofnoveltiesEasy to use Content needs tobe interestingenough to betaggedYouTube:Cisco LaunchInvestigationVirtual worlds Maintainingcustomerrelationships,brand buildingEngagingcustomerseffectivelyRequires lots ofresources tomaintain,inducing users to

participateCisco LiveVirtual 2009:Cisco Live SanFrancisco 2009Conference373.2.1 BlogsA blog, an online journal, consists of web-based, chronologically organized entry ona multitude of subjects (Singh et al. 2008). The key in blogs is the interactionbetween authors and readers: authors write about subjects of interest and invitereaders to response to them (Marketing News Staff 2009). There are several types ofblogs depending on their purpose. These are informal and personal blogs,informational blogs, corporate blogs and mobile blogs. Companies have to specifythe objectives and goals they have for blogs so that they can better evaluate theimpacts blogs have. (Singh et al. 2008.) This study will focus on corporate blogs.Although corporate blogs are written by corporate representatives they should havean individual touch. Individuals trust more in blogs that are written by individualexecutives or employees than in official corporate blogs (Wyld 2008). According toKnowledgeStorm and Universal McCann (2006) statistics on blogging amongtechnology companies in business-to-business markets in the United States 80 % ofthe respondents read blogs and 53 % of the respondents agree that content read inblogs has an impact on work-related purchasing situations and over 50 % getbusiness information through blogs. Thus blogs are an important source ofinformation in b-to-b markets.As mentioned earlier the focus of this study is on corporate blogs. There can beidentified five different types of corporate blogs: employee, group, executive,promotion and newsletter blogs. Employee blogs are personal blogs. The content andformat varies because they are maintained by individual employees. Group blogdiffers from employee blog in that it is operated by a group of people in the sameorganization. These blogs usually focus on a specific topic. Executive blog is writtenby executives in the company. These blogs are useful in creating relationship withstakeholders of the company. Promotional blogs are for promoting the offering of thecompany. However, promotional blogs are not so trustworthy among customersbecause the objective is the promotion instead of pure information sharing.Newsletter blogs officially inform about news in the company. Corporate blogs are auseful way to inform about news and new products without being too promotional.38(Lee, Hwang & Lee 2006.) Corporate blogs add value to the communication chainboth internally and for customer communication. They create communication bothtop-down and bottom-up and they foster communication between the marketer andthe customer. (Singh et al. 2008.)Blogs can be used different ways in marketing depending on the company’smarketing objectives. Singh et al. (2008) have identified different usage profiles of

corporate blogs. Blogs are used as marketing communication tools when companiesconnect with their customers in order to communicate new product ideas and topromote the brand. Limited or passive use companies read others’ blogs to gatherinformation about them. These companies recognize the value of viral marketing anduse the information gathered from blogs as knowledge of customers’ insights.Tactical companies use blogs as a promotional tool in order to drive traffic to theirsite. They use corporate-sponsored blogs to increase brand awareness or tocommunicate about promotional events. The most interactive and integrated usage ofblogs have companies which use them as strategic applications. Blogs are used forinternal and external communication, customer feedback, market research, newproduct ideas, competitive intelligence and for promotional efforts. These companiesunderstand that blogging provides them valuable knowledge on customers, marketsand competition.A benefit organizations gain when using blogs as a marketing tool is that they getreal time information on their customers and markets which help to conduct marketresearch and thus target markets better. Blogs increase brand loyalty and can help ondeveloping product ideas when customers and other readers can comment the ideas.Blogs are also easy to use and the cost of using them is low. Blogs targeted to aspecific target market can help to create thought leadership among the industry(Weber 2007, 23). There are also challenges that have to be noticed when usingblogs. The perceived risk can be high because of the open communication. The lossof control of the content in others’ blogs and comments to one’s blog can harm theorganization. The risk of creating negative publicity among customers is a challengeof the blogs. Although blogs are easy and inexpensive marketing tool, they require an39on-going updating and postings. Thus the organization has to have enough resourcescommitted to blogging. (Singh et al. 2008.)Blogs can create value to the company in six ways. First, blogs provides a new wayto stay relevant to company’s customers. Second, marketers can use blogs to focuson the changing media. Third, blogs help the company to reach different generationsof customers. Fourth, thought leaders use blogs to share information and experiences.Fifth, the global nature of blogs helps to reach customers worldwide. And sixth,blogs being individual helps the company to see themselves from the viewpoint ofcustomers. Blogs as being an interactive channel increases the connectedness withcustomers. The power of blogs is in sharing opinions, information and knowledge.(Singh et al. 2008.)3.2.2 Social networksA social network is made of individuals or organizations and includes the ways inwhich individuals are connected through various social familiarities (Turban, King,McKay, Marshall, Lee & Viehland 2008, 822). Social networks belongs to thecategory of web-based services that allow individuals to 1) construct a public orsemi-public profile within a bounded system, 2) articulate a list of other users withwhom they share a connection and 3) view their list of connections and those madeby others within the system. Social network sites are organized around people and

their connections. Most social network sites are organized around pre-existing socialrelations. (Boyd & Ellison 2008.) The online social network sites are perceived asactors by users. Users feel like they are communicating with these actors rather thanwith individuals themselves. (Brown et al. 2007.)Social network characteristics are collaboration, negotiation, communication,interaction and creation. The values are friendship, democratic participation,harnessing collective intelligence, viral promotion, innovation in assembly, pull butnot push and cooperation, collaboration, but not control. (Lai & Turban 2008.) In bto-b context the main goal for social networks is to create new business connections.40A business network consists of a group of people that have a commercialrelationship. The relationship can be between sellers and buyers, buyers amongthemselves, buyers and suppliers or between colleagues. These business relationshipscan be developed and maintained in social media environment. (Turban et al. 2008,829.) Social networks enable users to communicate with their contacts and show listsof their contacts to others. In business environment these connections can work aspeer-communication when business partners can use others as references. (Boyd &Ellison 2008.)In social networks people communicate with their connections through messages,instant messages and blogs, comment each others’ photos and videos (Boyd &Ellison 2008). Social network sites are used in individual level. People have privateprofiles in these networks and communication happens on individual level.Challenge is to integrate these personal contacts and communication with businessenvironment. Social network sites have communities inside them. Users can connectthemselves and their businesses with these communities. This way they can representthe company at the same time as they communicate in person. Useful social networksites in business-to-business environment are LinkedIn and Toolbox.com. LinkedInis a social network site where people connect with their business contacts. Althoughthe communication in LinkedIn, like in other social network sites, happens on apersonal level, the contacts are mainly with business acquaintances and can thus beused as recommendations. (Lehtimäki et al. 2009, 27.) There is also a group-functionin LinkedIn where the users can share information on interesting topics. Companiescan set up own groups where they can invite their customers and employees. Thegroup can be used to share information about new products and news of thecompany. (Pentikäinen & Meserve 2009.) Toolbox.com is a network of communitiesto share and access knowledge. Through Toolbox.com professionals and executivescan collaborate with their peers to gain knowledge. (Toolbox.com 2009.)In social networks relationships with both weak and strong ties are maintained.Relationships with weak ties are with acquaintances and with people known in aspecific context. Although the relationships may not be very strong or deeply41developed they can help to create ideas and innovations. These relationships may bean important source of information. Relationships with strong ties are with peoplewith similar interests and personal relations. Stronger ties increase the reliability of

the profile while weaker ties expand the scale and the scope of the network. Thusboth relationship types are needed. The frequency of communication reveals whethera relationship is important to the user. (Donath 2008.)For marketing the social networks can be used for target marketing to sub-segmentsof customers, build brand awareness of the company, establish a forum for dialoguewith customers and to conduct market research. It is possible for a company to createapplications and widgets on social networks that customers can add to their personalnetworking profiles, thus use the peer-to-peer recommendation. (Marketing NewsStaff 2009.) Other ways a marketer can utilize social networking sites is throughadvertising. These sites can be used to target the advertising to certain profileinformation of users. Presence in social networks, own profile of the company,enables to gather relevant business relationships together as well as to monitor whatcustomers think about the company. (Ryan & Jones 2009, 163.)3.2.3 CommunitiesA virtual community can be defined as a group of individuals or business partnerswho have a shared interest in which they interact around and the interaction is at leastpartially supported or mediated by technology and guided by some protocols ornorms (Porter 2004). The objective for a community is value creation. Value can beachieved through information content, product generation and sharing within thecommunity and through the existence of a group. (Rowley 2004.) Members becomeembedded in the virtual community through participation and interaction(Rothaermel & Sugiyama 2001). The communication mainly happens through instantmessaging, blogging, voting and newsletters. Reason for companies to join virtualcommunities is to approach their target markets through communities. Users incommunities have similar interests so targeting a group with a certain interest is easy.(Lehtimäki et al. 2009, 29 - 30.) What differentiates communities and social42networks is that communities are formed through shared interests while socialnetworks gather around people (Boyd & Ellison 2008).There are several different categorizations of communities. Communities can bedivided into transaction-oriented, interest-oriented, fantasy-oriented and relationshiporientedcommunity on the basis of the commerciality of the community. Frombusiness-to-business market viewpoint the transaction-oriented communities are ofinterest. The objective of these communities is to facilitate the purchasing and sellingof the products as well as to share information needed in the exchange. (Armstrong& Hagel 1995.) Transaction-oriented communities are formed from members whohave a commercial interest and who seek relationship with business partners. Thesecommunities are trustworthy commercial and social environments. Individual userneeds and community knowledge is contributed by the members of the community.Communities have strong buying power that helps the sellers to extend their offeringbases. (Schubert & Ginsburg 2000.) Communities with commercial interests consistof members whose needs are mainly commercial in nature and who use thecommunities mainly for networking and building business relationships. In

transaction-oriented communities the value is created through transactions. Thecommunities are run by the marketers themselves and they create the marketinginformation themselves. For a transaction-oriented virtual community to evolvesuccessfully it should increasingly take on the role of an intermediary in exchangerelationships between community members as well as in exchange relationshipsbetween community members, marketers and advertisers. (Kannan, Chang &Whinston 2007, 81, 84, 86.)Attributes of virtual communities are purpose, place, platform, population interactionstructure and profit model. The purpose refers to the content of interaction, the placeto the extent of technology mediation of interaction, the platform to the design ofinteraction, the population interaction structure to the pattern of interaction and theprofit model to the return of interaction. Communities tend to lean more to certainattributes than others. In business communication some attributes are more importantthan others. The purpose of organizations is to provide information about their43offerings and develop customer relationships through communities. Although theplace does matter, also the assumption here is that the communication happens in avirtual community. The design of interaction refers to the technical solutions ofinteraction. It is important that the communication is easy and fast to conduct. Thepopulation refers to strength of ties between the community members. As mentionedearlier, both strong and weak ties are important in business context (Donath 2008).Communication in social media should result in deeper relationships with customersand to better profit. (Porter 2004.)Benefit for the seller for being present in virtual community is the expansion of itsmarkets. Market expansion happens due to reduced search costs, increasedpropensity for customers to buy, enhanced ability to target and greater ability totailor and add value to existing products and services. These factors characterize thevirtual community business model. Other factors which affect to the marketexpansion are factors that are applicable to network environments. These factors arelower capital investment in bricks and mortar, broader geographic reach anddisintermediation potential. Other benefits that communities create for marketers arepossibility to expand demand for offering, increase viral marketing communicationof offering, stimulate customer feedback, generate richer information on customersand markets, eliminate separation of advertising and transactions and allowadvertising to be seen as helpful. Challenges on the other hand are that they reduceemphasis on value of seller’s brand, facilitate price comparisons, allow comments tobe made on offering in public, not in confidence, increase volume of information tobe analyzed and change the rules of advertising and promotion. (Hagel & Armstrong1997, 10 – 12, 189.)In business-to-business communication the communities are used to get feedbackfrom and information on customers to be able to improve company’s offering and totarget marketing activities better (Lehtimäki et al. 2009, 30). An example of abusiness community is the Faceconnecter which connects the Facebook profiles intocustomer relationship management (CRM) program called Salesforce. The aim is to

bring the power of community, trusted online identity and user data on social44networking sites to business. The Facebook profiles help to identify the peoplebehind CRM accounts and make the relationship building easier. (Shih 2009, 2.)3.2.4 Other social media toolsPodcasts are digital media files (audio or video) which can be downloaded viainternet (Marketing News Staff 2009). Podcasts are capable of synchronizing with aportable multimedia device, like MP3 player or iPod. For marketers podcasting is asimple way to communicate with their target customers. It is easy and fast to use so itanswers to the ever-increasing lack of resources in companies. (Shim, Shropshire,Park, Harris & Campbell 2007.) In b-to-b marketing podcasts can be used forinforming the customers. For example a company can publish a podcast of aninterview on its web sites. (Lehtimäki et al. 2009, 22.) Or podcasts can be used toinform customers about new innovations (Weber 2007, 23). According to a study byForrester Research (2007) 20 % of business-to-business marketers and decisionmakersuse podcasts for work-related activities.Webcast differs from podcast in that webcasting is emanated from the internet andthus requires the user to be connected to the internet while viewing the webcast files(Shim et al. 2007). In marketing webcasts can be used for launching new products,supporting the distribution and informing about products. The benefits the marketergains in using webcasts include cost savings, real time information sharing andglobal reach. (Isohookana 2007, 273.)RSS (Really Simple Syndication) feeds are services of different types which giveusers the freedom to choose and easily access information in sources they find mostinteresting (Ahlqvist et al. 2008, 31). RSS is a way to syndicate web content throughthe use of content feeds. RSS enables the users to keep track of updates posted onweb. (Tredinnick 2006.) According to KnowledgeStorm and Universal McCann(2006) RSS are “somewhat” to “very” familiar to 59 % of business and ITprofessionals and 31 % of them subscribe RSS feeds.45Social bookmarking is bookmarking of favourite web resources and categorizingthose using tags on social bookmarking sites. Social bookmarking enables users toaccess own bookmarks from anywhere and share them with other users. For acompany this helps to reinforce its exposure and traffic when visitors bookmarkcompany’s web sites. Tagging increases company’s perceived relevancy andauthority on search engines. One favourite social bookmarking site is delicious.com.(Ryan & Jones 2009, 157 – 158.)Viral video is a video posted online that is passed along from person to person. Viralvideos are peer-to-peer communication method where the video has to be interestingenough for people to share it among their contacts. In marketing viral videos can beused to create brand awareness, pass marketing message and to guide customers tovisit the company’s web site. YouTube is the most popular video sharing web site.(Marketing News Staff 2009.) Businesses can use videos also to recruit partners,illustrate a complicated process or service, show video of a facility, demonstrate

functionality of a new product or provide detailed and multi-layered information onan entire product line or service offering in order to engage partners and customers.(Madden 2008.)Virtual worlds are computer-generated physical phases which are representedgraphically in three dimensions and have many features similar to the real world. Theusers, so-called avatars, experience the virtual simultaneously in interaction witheach other. Not only interaction with other users but also interaction with productsand services offered by businesses in virtual world is an important feature. (Lui,Piccoli & Ives 2007.) The users can exchange messages, objects and money virtually(Messinger, Stroulia & Lyons 2008). Virtual worlds provide companies a richmediated environment that facilitates direct and rich interaction with customers.Virtual worlds inspire creativity and innovativeness and thus work as a playgroundfor innovations. (Kohler, Matzler & Füller 2009.) As the virtual worlds areinteractive, collaborative and commercial they have the potential as marketingchannels (Barnes 2007).46Widget is a small application that provides live updates through a web site ordesktop. They are being used to update information on an ongoing basis on interestedtopics. There are two types of widgets: web widgets appear on web sites, blogs orsocial network sites and desktop widgets exist on the computer desktop. (MarketingNews Staff 2009.)Wiki is software that allows users collaboratively to create, edit, link and organize thecontent of a website (Deering, Cook, Jonk & Van Hall 2008). Wikis enablecollaborative authoring as the power of editing the content is on users: users can editthe web pages they browse. The challenge is to control the content created bymultiple users. (Tredinnick 2006.) The key characteristics for wiki are that it enablesweb documents to be authored collectively and the content is not reviewed by editors(Wagner 2006). Wikis can be used for interaction and collaboration betweencustomers and inside of the company. Customers can begin to feel ownership andconnection with a company that encourages and values their contribution. This inturn may increase the loyalty of customers. Wikis can be used for collectiveintelligence. Using the knowledge of crowds helps to gather information and enablesinnovation. (Ryan & Jones 2009, 168 -169.)3.3 Social media in customer communicationThe theoretical framework of this study (see Figure 6) is created by combining thetheories presented in this study. The theoretical framework includes the relationshipdevelopment model by Andersen (2001) which is combined to main characteristicsof social media. The relationship development stages are explored from thecommunication viewpoint. The focus is on communication in social media where thecharacteristics of social media: participation, user-generated content, interaction,transparency and viral marketing, are the foundation for collaborativecommunication. The objectives set for communication as well as the opportunitiesand challenges that are associated to social media are studied on each stage of therelationship. Examples of social media tools that could be used for communication

are also given. However, it is not recommended to have too prescriptive approach to47communication because it could hinder effective communication (Ambrose et al.2008).Figure 6. The role of social media in customer communication.At the pre-relationship stage the communication is one-way and planned from theseller side. At this stage the social media can be used to create awareness of the sellercompany. The audience that is reached through the social media is wider than withtraditional communication channels and thus potential customers are reached moreeffectively. Information search from the potential customers’ side is easier when theinformation is available in multiple channels where the customer is also present.Promoting company’s offering is as well more effective because the promotionSOCIAL MEDIAParticipationUser-generated contentInteractionTransparencyViral marketingSeller CustomersPRE-RELATIONSHIPSTAGECommunication task:Create awarenessPlanned communicationOpportunities:Creating brand awarenessReaching marketInformation searchPromotionChallenges:Value of the content insocial mediaEngagement of the sellerCommunication tools:Blog, social network,community, viral videoNEGOTIATIONSTAGECommunication task:Develop relationshipContact creationOpportunities:Brand buildingInformation

search/sharingTarget marketsEfficiency in customercommunicationFacilitate purchaseChallenges:EngagementValue of the contentPrivacy and trust issuesCommunication tools:Blog, social network,community, podcast, RSSfeed, widget, viral videoRELATIONSHIPDEVELOPMENTSTAGECommunication task:Create mutual valueConnectednessOpportunities:Brand buildingInformation sharingEfficiency in customercommunicationChallenges:EngagementValue of the contentPrivacy and trust issuesLegislationResourcesCommunication tools:Blog, social network,community, podcast, RSSfeed, wiki, widget, virtualworld48reaches potential customers at medium where the interest already exists. Tools thatcan be used for planned communication at the pre-relationship stage include socialnetwork sites, communities, viral videos and blogs. At the negotiation stage theobjective is to start the relationship between the seller and the customer. Thecommunication is more interactive and effective which enables the negotiations ofdesired transaction. Customers can easily in social media search and shareinformation and the seller benefits from the social media in brand building. Targetingmarkets is more effective when the potential customers are gathered around the same

interest in social media. Blogs, podcasts, widget and RSS feeds can be used forinforming and promoting new products and updates. Social network sites andcommunities can be used for viral marketing. At the relationship development stagethe objective is to create mutual value to both the seller and the customer throughinteractive communication towards common goals. The social media enables thiswhen the seller can inform the customers about the new products and the customerscan share information with each other. The communication is efficient althoughresources are to be invested to keep the communication constant. Several socialmedia tools can be used for creating mutual value and maintain the constantcommunication at this stage of the relationship development.Companies can adapt the social media in different ways according to their resourcesand possibilities to invest. There can be identified five different roles a company canhave in the social media: observation, adoption, participation, generation andconstruction. A company can observe its customers and their preferences bycollecting information in blogs and communities. Adopting different social mediatools a company can utilize the opportunities that the cross-media synergy of thesetools creates (Naik & Raman 2003). By using RSS feeds updates in blogs can easilybe shared to those who are interested in company news. Participation in blogs andonline conversations enables the company’s viewpoint becoming public. This waythe company has the chance to react to possible negative feedback fast and publicly.Content generation and constant updating requires resources, open communicationand time from the company. The most challenging role in social media is theconstruction. A company can create its own social network or community. To be able49to succeed in constructing own community and to gain users, the community has tooffer real added value to users. (Salmenkivi & Nyman 2007, 286 – 289.)Communication in social media is interactive and the customers are integrated to thecommunication process. The channel of the messages plays a big role because it isimportant to meet the customers where they are. Traditional marketing channels nolonger reach customers so actively, thus the seller has to recognize channels wherethe organization’s customers are present. The seller has to find ways to communicatewith the customer in individual level but at the same time represent the organization.In order to adopt market orientation, companies must understand not only theircustomers, but also the environment in which they interact (Hoffman & Novak1997).504 METHODOLOGY OF THE STUDYThis study is a qualitative research which was conducted with concept analysis andaction-oriented approaches. The qualitative research and the used researchapproaches as well as the collection and analysis of data used in this study will beintroduced next.4.1 Qualitative researchBurrell and Morgan (1979, 1 - 2) claim that science can be effectively characterizedthrough four sets of assumptions related to ontology, epistemology, human nature

and methodology. Ontology includes assumptions of the nature of the focalphenomena, epistemology the nature of knowledge of those phenomena, humannature the nature of man and relationships between human beings and methodologythe nature of ways studying those phenomena. All these assumptions can beassociated and have implications to each other.There can be found two major paradigms in science: positivistic and hermeneutictradition. The positivistic research tradition concentrates on description andexplanation with the aim to generalize. Quantitative research methodology is oftenused in positivistic studies and the approach is deductive. More suitable researchtradition in marketing research is the hermeneutic tradition. Hermeneutic traditionuses a personal interpretative process to understand the reality. The approach isusually inductive and can be subjective. Qualitative research methods and languagehave a central role in hermeneutic studies. The researcher in hermeneutic research isa part of the action. A paradigm consists of the researcher’s perception of what arethe interesting research problems and which methodological approach should be usedto solve the problem. (Gummesson 2000, 18, 177 – 179.) This research hashermeneutic approach as it tries to understand the reality of the studied phenomenon.The qualitative research is chosen in order to gain a holistic picture of the role ofsocial media in customer communication. Qualitative research method was chosenfor this study because qualitative research is conducted through contact with51everyday life of individuals and organizations. The general nature of qualitative datais that it is based on words, either through observation, interviews or documents.(Miles & Huberman 1994, 6, 9.) The everyday life of the researched topic comesrelevant in empirical study where the real use of social media tools in communicationin organisations operating in business-to-business markets is explored.There are three different research designs. In exploratory research the majoremphasis is on the discovery of ideas and insights. An exploratory research isappropriate research design in topics that are little researched. An exploratoryresearch is used for studies focusing on formulating a problem for more accurateinvestigation, developing hypotheses in quantitative studies, establishing priorities,gathering information about the practical problems, increasing the analyst’sfamiliarity with the problem and clarifying concepts. A descriptive research is usedto describe the characteristics of certain groups, to estimate the proportion of peoplein a specified population who behave in a certain way or to make specificpredictions. Descriptive research answers to questions to who, what, when, where,why and how. Causal research studies the cause-and-effect relationships. A causalresearch aims to determine causal relationships through concomitant variation, timeorder of occurrence of variables and by eliminating other possible sources ofexplanation. The research problem determines which research design is the mostappropriate although different designs are not mutually exclusive. (Churchill 1996,114 – 115, 118, 138, 164.) This study is primary descriptive as it tries to describe thecharacteristics of the studied phenomenon. But it could also be characterized as anexploratory research because of the novelty of the studied phenomenon. The study

tries to discover insights about the use of social media in communication whichemphasizes the exploratory nature of the research.The objective of a study of marketing is to develop theories that fit certain contextsand viewpoints. A research is always bound to its context. An academic researchshould be theoretical which refers to that empirical data and findings are based onprevious theories. The theory concerning the research topic can be either deductiveor inductive according to the order it is composed. This way the theory and the52empirical study are combined together. (Panula 2000, 91 – 94.) There are threeresearch logics that connect theory and data: deductive, inductive and abductivelogic. In deductive logic there is a logical connection between the hypotheses and aprevious theoretical assumption. The deductive approach highlights the importanceof the theory and suits for researchers who use the existing theory in their theorydevelopment. In inductive logic hypotheses are formed according to empiricalgeneralizations. Pure inductive approach is used when founding a new theory. Theabduction is based on the notion that there are no a priori hypotheses, nopresuppositions and no theorizing in advance. (Perry 1998; Levin-Rozalis 2004.) Theresearch process of this study begun by getting acquainted with the empirical data.Then the theoretical part of this study was framed and theoretical frameworkoutlined. Although this happened before more accurate analysis of the empirical part,this study has an abductive approach. Thus the theory and empirical data were partlyanalysed simultaneously.The theoretical part of this study uses concept analysis as a research strategy in orderto understand the concepts used in the research. Concept analysis is a non-empiricalresearch method which can be used as a basis for the empirical research. Conceptanalysis helps to understand the meanings and features of the studied concepts.(Puusa 2008.) The empirical part of this study is conducted with action-orientedapproach. The objective of an action-oriented approach is to understand the studiedphenomenon. The empirical study is conducted through few objects. The findingsmade are often concepts in different levels which help to analyze the phenomenon.(Neilimo & Näsi 1980, 35.) The action-oriented approach aims to achieve anunderstanding of the behaviour of the people in real-world organizations thus thisapproach is empirical (Pihlanto 1994). The empirical part of this study is practicallyoriented in order to help the management in business-to-business markets to developtheir customer relationships through communication in social media. Furthermore theaim is to give managerial implications which help the management to understand theopportunities and challenges that relates to communication in social media. Theobjective of using these two research approaches is to triangulate the conceptanalysis made in the theoretical part with the empirical study. The methodological53choices made on this research are collected together (see Figure 7). The choicesmade among all the presented alternatives are highlighted.Figure 7. The methodological choices of this research.4.2 Data collection

The majority of researchers in business studies need to collect primary data to answertheir research questions. The choice of data collection depends on an overalljudgement on which type of data suits best for the particular research problem. Datais gathered in order to obtain information of importance for the research problem.The measurement procedures used in gathering of the data have an effect to thequality of the information. (Ghauri & Grønhaug 2005, 75, 108.)Communication refers to data collection by asking those who have experiences of aparticular problem to explain it to the researcher. Interview is one main way tocollect data through communication in interaction between the researcher and therespondent. The purpose of data collection through interviews is to obtain validinformation from the most appropriate respondents. (Ghauri & Grønhaug 2005, 123.)The primary data used in the empirical part of this study was collected with semi-Concept analysisPositivisticQualitative QuantitativeHermeneuticAction-orientedExploratory Descriptive CausalDeductive Abductive Inductive54structured interviews by telephone. In semi-structured interviews the topics to becovered, people to be interviewed and the questions to be asked are predetermined(Ghauri & Grønhaug 2005, 132). The interviews were collected in several industrialcompanies operating in Finland as well as interviews with Finnish experts on digitalmarketing and social media. Together there were conducted ten interviews where sixrespondents represented marketing department in Finnish industrial companies andfour respondents represented expertise on social media in Finland. The interviewswere divided into company and expert interviews on the basis of the experience ofthe interviewees on digital marketing. The company interviewees work in marketingdepartments and generally have little or some experience on social media. Theexperts have been working and researching social media for a longer period of time.The interviews were recorded, transcript and relevant parts of the interviews wereused in data analysis stage. The interviews as well as the framework for theinterviews are appendices to the research (see Appendix 1 and 2).The respondents to the interviews were chosen on the basis of their assignments onthe company. They represent the marketing departments and have some experiencein digital marketing. Industrial companies operating in global markets were chosen inorder to create an understanding of the role and usage of the social media inindustrial markets where the customer relationships are important due to thecomplexity of offerings and the amount of investments and resources invested inpurchasing. The communication is important at every stage of the relationship inorder to develop a relationship that adds value for both parties. Expertise interviewswere conducted in order to get insights of the possibilities the social media createsfor communication. The amount of interviews was determined to ten because the

data collected seemed to follow the recommendation of saturation. There aresimilarities to be found in the company interviews concerning the understanding andusage of social media in communication. The expert interviews bring new insights tostudied phenomenon and it can be criticized whether additional experts should havebeen interviewed in order to get more ideas.55As the primary data was limited to six company interviews among Finnish industrialcompanies and four expert interviews, there were also used secondary data in theempirical study. The secondary data was gathered from the Digimarketing Barometer(Pohto 2009) and the gallup for chief information officers (CIO) in Finnishcompanies (CIO 2009). The secondary data is used to triangulate the findings madefrom the primary data. Triangulation improves the accuracy of judgements andresults by collecting different kinds of data of the same phenomenon (Ghauri &Grønhaug 2005, 221).4.3 Data analysisThe analytical procedure consists of techniques to conceptualize and analyze the datato result in theories and findings (Ghauri & Grønhaug 2005, 111). Data analysisconsists of four simultaneous activities: data reduction, data display, conclusiondrawing and verification. Data reduction is the process of selecting, focusing,simplifying, abstracting and transforming the data that appear in writing up fieldnotes or transcriptions. In the data reduction stage the researcher creates categoriesand identifies themes and patterns in collected data. The second analysis activity isthe data display. It is an organized and compressed assembly of information thatpermits drawing conclusions from the data. Conclusion drawing and verification isthe third analysis activity. The analysis about meanings in the data starts alreadyfrom the data collection. The researcher should maintain openness and keep theconclusions lightly at first. Conclusions should be verified as the analyst proceeds.Verification means that the meanings emerging from the data have to be tested fortheir credibility and validity. These activities occur simultaneously and it is acontinuous process. The reduction of data by coding it can lead to new ideas to datadisplay which then requires more reduction. Preliminary conclusions can be drawnand test as the display starts to form up. (Miles & Huberman 1994, 10 – 12.) Codingthe collected data means that the researcher systematically codes the content of thedata by themes. The codes can be based on the data collected or they can be based onprevious research and theory. If the researcher creates the codes from the data, the56data should be explored first in order to outline the content of the data. Also thetheory based analysis requires an understanding of the theory. (Eriksson & Koistinen2005, 31.) In this empirical study the data and theory based analyses were combined.The empirical study was conducted according to above mentioned activities: datareduction, data display, conclusion drawing and verification (see figure 8). Thecollected data was analysed with QSR NVivo 8 -analysis program which is a usefulprogram in analysing qualitative data. The analysis program helps to organize thedata and conceptualize the research topic which is the objective in qualitative

research (Luomanen & Räsänen 2008, 23). The data collected with semi-structuredtelephone interviews was transcript and the transcript data was read through at thebeginning of the research process. The reason to become acquainted with the primarydata was to outline the content of the collected data and to develop a preliminary ideaof the main themes. This preliminary outline of the content of the empirical data wasthe basis for the theoretical part which was then primary formed from the previousresearch made of the topic. The formed theoretical framework was used in datareduction which included reading through the transcript interviews several times torecognize themes from the data. In data display stage the content was coded andanalyzed according to outlined themes. Conclusions were drawn from the empiricaldata and the conclusions are verified in the evaluation of the study.57Figure 8. The research process (adapted from Miles & Hubermann 1994, 10 - 12).Data collection:6 company interviews, 4 expertise interviewsData reduction:Categorizing of the interviews and identifying themesVerification:Limitations, validity and reliability of the studyData display:Marketing communicationCharacteristics, opportunities, challenges of social mediaSocial media in relationship developmentUse of social media in b-to-bConclusions drawing:Theoretical conclusions, managerial implications585 SOCIAL MEDIA IN BUSINESS-TO-BUSINESS COMMUNICATIONThe empirical part of this study will be presented next. On the basis of the theorydeveloped about the role of social media in customer communication in business-tobusinessmarkets the empirical data is analyzed next. The analysis concentrates onfinding similarities and differences in empirical data compared to the theory. Theframe (see Figure 6) formed earlier in this study is used in analysis.5.1 Presentation of the empirical studyThe study is part of the Deccmac-project which is an academic research project onsales and marketing communication in Finland (Deccmac 2009). The empirical dataof this study was collected with interviews. The data includes six interviews withrepresentatives in Finnish companies operating in industrial markets. There were alsoconducted four interviews with Finnish experts on social media. The participatinginterviewees as well as the companies they represent are kept anonymous. Thereforethey are only referred as companies or experts in the text. The opinions of theinterviewees are referred as representation of companies operating in industrialmarkets in Finland. The idea is to frame a picture of the role of social media in

customer communication in Finnish industrial companies. The expertise intervieweesare used for recognizing the opportunities the social media creates forcommunication.The themes emerged both from the theory and the collected data focus on marketingcommunication, characteristics the social media has as communication medium,opportunities and challenges the social media has on communication, the use of thesocial media at different stages of relationship development and the use of differentsocial media tools in business-to-business communication (see figure 9). Data aboutthese themes is analyzed next.59Figure 9. Themes used in NVivo data analysis.5.2 Characteristics of social media as a communication mediumThe most important marketing communication channel in companies operating inbusiness-to-business markets seems to be the personal, direct contacts withcustomers. It is recognized that the web is an important communication channel andits importance has increased in past years. But traditional marketing communicationchannels like fairs, newsletters and catalogues are still important in business-tobusinessmarkets. Customers’ needs have to be the basis of all communication inorder to reach the targeted customers. Thus the communication in social media has tobe emanated from customer needs.Expert interviewsCompany interviewsSocial media inrelationshipdevelopmentNegotiation stagePre-relationshipstageRelationshipdevelopment stageUse of socialmedia in b-to-bExamples of b-to-bcampaignsPlanned toolsUsed toolsChallenges ofsocial mediaCharacteristics ofsocial mediaOpportunities ofsocial media60The characteristics of social media according to interviews include transparency and

openness. Transparency and company interface are increased as is the visibility ofcompany values. The fact that the communication in social media happens on apersonal, individual level and with one’s own name, makes the media moretransparent. The dynamics of the communication change and the mobility increasesthe importance of location: time and place of the users are at all times to berecognized and the response time decreases. Different stakeholders (customers,suppliers) will have their own communities for communication.“Social networks will substantially change the business operations due toincreased transparency of company interfaces. The dynamics of thecommunication will change because time and place lose their importance.”(Expert interview.)The community and interactivity are mentioned to be the key characteristics of thesocial media. Customers are co-creators of content and communicate with each otherand with the company in different social media applications. Companies offerexpertise and the customers give feedback to them. Customers can also be experts ofthe offerings of the company via sharing information on blogs and wikis. Interactionwith customers and direct feedback changes the dynamics of the communicationfrom one-way to two-way communication. The participation in social media is basedon voluntariness and sharing of information is easier when the communication istwo-way.“Web as a platform, in using the web to create interaction and user-generatedcontent, stops being simple push and starts to be something a bit moreinteractive” (Company interview).It can be seen from the empirical data that the expert interviewees emphasize theimportance of openness and transparency the social media increases. The companyinterviewees focus more on the user-generated content and the interactivity of socialmedia. Characteristics of social media found in the empirical study are drawntogether in table 5.61Table 5. Characteristics of social media as a communication medium.CharacteristicsTransparency User-generated contentOpenness ParticipationInteraction Community5.3 Opportunities the social media creates for communication in b-to-b contextThe biggest opportunity the social media creates is that business operations can behandled more effectively. The communication with clients becomes more frequentand faster and the clientele becomes more controllable. Companies save time andother resources when the business relationships can be nurtured simultaneously withseveral customers in the same forum. Complex business relationships still need moretraditional communication methods like face-to-face meetings but relationships canalso be maintained more casually and continuously with social media tools. Thenetworking is one main advantage. It is easy to connect with customers and businesspartners in social networks and communities.

“The signals we have on social networks from the consumer markets,consumers participating to product development and decision-making, thesame will come to b-to-b markets and it should be easier there” (Expertinterview).The viral marketing is recognized as one big opportunity of the communication insocial media. Content generated by other companies and one’s peers increase thetrust on communication content. Also recommendations from one’s peers areexperienced as an effective way to create brand awareness. Viral marketing can beused to get the customers to offer on the behalf of the company. Also the fact that theenvironment is more casual, bringing out own opinions is easy. The communicationin social media happens on a personal level with own name and profile whichpersonify the employees more and thus bring them closer to the customer.“In b-to-b markets specialists in some industry could recommend productsrelated to their work to each other” (Expert interview).62The communication happening on social media is based on voluntary participationand happens on a dialogue between partners. Due to the interaction the content of thecommunication reaches the target better. The key feature of social media, openness,increases the trust on information shared as well as the corporate-neutral contentcreated by users. People trust more on information shared by their peers thaninformation coming from the company, which is usually regarded as anadvertisement. The transparency creates opportunities for the company tocommunicate their company values and social responsibility to the audience. Opinionleaders of the industry should contribute to blogs in order to influence on attitudes ofthe customers.“Blogs would enable fast marketing which is interesting. In blogs peopleshare their own opinions and it is more informal. This means that themarketing doesn’t have to be so finished.” (Company interview.)Implementing social media tools to communication widens the audience forcompany communication. Reaching the potential customers is more effectivedigitally through social media than using traditional methods for communication.The social media enables not only to reach the business customers but also consumercustomers. Depending on the offering of the company the target market may increaseimmensely. Being present at all times is a requirement for constantly developing andglobalizing business environment. Also tailoring the communication depending onthe customer helps to target the message more effectively.“Business operations will change from the viewpoint of b-to-b; the cwill come to their as well. Normally you won’t get there if you are at the endof a long chain.” (Expert interview.)Tele-presence enables contacting and searching for information regardless of timeand place. A company can use a portal where it is easy not just to find contactinformation, but also see calendar to business partners as well as to communicatewith instant messaging. When all these activities are gathered under the same portal,the communication will be easier and faster. This is especially useful in internal

communication. Generally the findability increases when the company is present in63several mediums. Although the location in customer communication in business-tobusinessenvironment does not have such a big role than in business-to-consumerenvironment, location could be utilized in campaigns.“It is a quite effective combination to combine information search, personalcontact, availability and calendar together” (Expert interview).From the technological viewpoint the benefits are the economic efficiency toimplement and experiment several tools in reality. Usability of social media tools isgood and the technology is easy to adopt. Also the visual aspects make the mediummore attractive and interesting when there are possibilities to add audio and video tocommunication. The upgrading of information is made easily as well as themeasurement of the contacts. Social media tools are fast and safe environment tocommunicate easily with targeted customer groups. The quickness comes alsoobvious on customer response. There are portals where the customer can sendquestions and feedback to company and the correct person receives the messageautomatically and can respond to it quickly. There is no time wasted on forwardingthe message to different people. There is also a chance to react fast to customercomments and complaints if one follows different forums continuously.From the viewpoint of generating sales the opportunities are not yet recognized. Thesales promotion is seen more as a short-term opportunity. One opportunity the socialmedia could be used for more direct sales activity is to create mini web sites formarketing campaigns. The interactivity of social media could be utilized inadvertisement by linking an ad and adding an online shop which would encourage topurchasing. This way the ordering process could be integrated to marketingcommunication. Different tools mentioned for creating opportunities for companieswere blogs, communities (LinkedIn, Facebook and Jaiku), online magazines, wikis,extranet and search engine optimization.“Wikis are a great thing in that we can create content to them and thatway profile ourselves as experts and bring out our know-how and createcontent in the channel which is not ours. When it is not at our website but insome neutral source, increases the reliability.” (Company interview.)64It seems that the recognized opportunities from company interviews concern brandbuilding and awareness as well as the efficiency in business operations and internalcommunication. Besides these the experts acknowledge the opportunities of viralmarketing and using peer-to-peer communication. The possibilities of informationsharing and innovativeness are also recognized by the experts. Table 6 drawstogether the opportunities the social media creates for communication according tointerviews.Table 6. Opportunities the social media creates for communication.OpportunitiesEfficiency in business communication Targeting markets

Viral marketing Information search, findabilityWider audience Technological aspects5.4 Challenges the social media creates for communication in b-to-b contextThere are recognized several challenges and threats in using the social media incommunication. The greatest challenge seems to be the uncontrollability of socialmedia. It is not totally understood what the concept social media means and how itcould be utilized in customer communication. There are so many alternative toolsand applications to choose among that it is difficult for companies to recognizewhich tools would benefit them the most. There even seems to be a belief that whenthe novelty value of social media fades the use of traditional media will increase onthe contrary. It is difficult to find the best way to reach the decision-makers andinvestors in companies through social media. Although reaching the target market iseasier, a direct contact to decision-makers and investors is more difficult.“Marketing communication message, especially toward the decisionmakersof investments is the most difficult thing. They don’t read ourcustomer magazine much less spam-mails because those deals are made onsauna.” (Company interview.)Generally the challenges connected to social media concern the differences inbusiness-to-business markets compared to business-to-consumer markets. The social65media is more utilized in consumer markets than in business markets. It is still notrecognized how the social media tools could be used as effectively in businessmarkets as they are utilized in consumer markets. For example entertaining videos inYouTube reach millions of viewers and increase the brand awareness. In moretraditional b-to-b environment the entertainment aspect is some doubtful forgenerating actual sales. It is reasonable to wonder whether formal presentationvideos fit to YouTube. Also the use of incentives in consumer markets is not directlyadaptable to business customers. The industry in question affects on the choice ofcommunication channels. Digital products and services are much easier to market indigital channels than traditional products and services. The target market is muchsmaller in business marketing thus finding the potential customers through socialmedia tools is more difficult. Also the importance of personal selling decreases thepower of social media. Users of social media are committed in a personal level.There is a concern whether the communality is so high also in businesscommunication. Benchmarking from consumer marketing can however be useful inorder to adapt social media tools to business communication.“In b-to-b marketing we don’t know how to utilize the social media and Imyself haven’t figured out the right ways to utilize it. The challenge is how toimplement the good things from b-to-c marketing into b-to-b world.”(Company interview.)Supporting findings are found in the Digimarketing Barometer. The barometer is astudy among 295 Finnish marketers about their usage of digital marketing channelsin 2008 and intentions to use them in 2009. According to the barometer companiesoperating on business-to-consumer markets use digital marketing channels more than

business-to-business companies and the difference is increasing. There seems to be abelief that business-to-business companies do not quite understand how to utilizesocial media and they believe that the consumer markets benefits from thesechannels more. (Pohto 2009.)Another aspect is the Finnish business culture and structure where it is hard to beopen-minded and innovative especially in public companies. The Finnish businessto-business culture is traditional and has a high barrier to implement social media66tools. The updating of information and customer communication has to becontinuous so it requires resource commitment from the company. Thecommunication happens on a personal level so one’s own personal opinions areconnected to a company brand. It is therefore important to control the brand and thecontent written about the company in different social media forums.“The company type plays a bigger role: the business culture, agedistribution and attitudes, the resistance for change and things like these.The company profile has bigger implication than the industry.” (Expertinterview.)Also the technical aspects, mainly security issues are of concern. The technicalchallenges concern the resources required for constant updating and controlling. Theupdating of information also means that old, important information may disappearwith updates. Also the security issues concerning the increased transparency inbusiness secrets increases the barrier to use the social media. Interviewees in thisstudy represent multinational companies thus the language issues as well as thetechnological development are of concern. The language in social media usually isEnglish which widens the audience of the communication but at the same time mayhinder the usage. The technological level is different globally so the use of differentvisual and multimedia files may not be the best way to reach customers in lesstechnologically developed countries. The amount of spam has increased and theinformation is more dispersed so it is difficult to stand out from the flood of alldigital information. There also seems to be doubts about the truth of statisticsconcerning the use and targeting of social media. Although it is recognized thatmeasurement is easier in digital channels there are still doubts about it. Also there isa lack of evidence that the use of social media would increase sales.“In b-to-b world we are in an initial stage in social media because ofbusiness structures and we are afraid of the security issues, informationsecurity and business secrets and all this so it slows the usage down ofcourse” (Expert interview).The privacy issue affects both the customers and the marketer. Customers have togive their permission to use the content that refers to them. Especially in industrial67markets the products could be big manufacturing devices which are tailored forcustomers. Using pictures or videos of those products has to be approved bycustomers. Add to that the network of the company can set up some restraints foropenness. Privacy of the user and the company worries also. People represent

themselves in social media so there should be policies in what can be said about thecompany in a private forum. The open and transparent information thus brings alsothreats to communication. There is a fear that the company image may be harmedwhen both employees and customers can openly express their opinions about thecompany. The question is how the diffusion of negative information can be stopped.The engagement of customers in communication is important. The need to use socialmedia should be generated from customers and the company itself instead ofcompany feeling forced to use the social media in communication because everyoneelse does. The main issue the companies should focus on is how to turn the threats toopportunities.According to the company interviews it seems that the challenges of social mediaconcern the uncontrollability of the media. It is not understood how the social mediacould be utilized in customer communication and how the information overloadcould be controlled. Resource investments due to engagement to the communicationare concerning the companies as well. The information should be updated at all timesand available in multiple channels which requires resources. Both company andexpert interviewees recognize the challenges in business markets compared toconsumer markets. The experts recognized the challenges created by the traditionalFinnish business culture as well. Table 7 draws together the challenges the socialmedia has for communication in business-to-business context according to this study.Table 7. Challenges the social media creates for communication.ChallengesUnderstanding the role ofsocial media in communicationBusiness-to-business vs.business-to-consumer contextUncontrollability Privacy issuesFinnish business culture Technical challenges685.5 Social media in relationship buildingThe use of social media in customer communication depends on the objectives thatare set for communication. Whether the company tries to reach new potentialcustomers (pre-relationship stage), existing customers (negotiation stage) or tointegrate the customers more to the operations (relationship development stage)determines how the social media can be utilized. It seems that the social media isused for maintaining and developing customer relationships. The link for directlygenerating more sales is not recognized. In customer relationship development animportant feature of the social media is the value-added services. Communities andinteraction add value to the customers which hopefully develops the customerrelationship. User-generated content on blogs and writings about the company and itsproducts increase the amount of information available. Sharing this informationamong users adds value and potentially leads to stronger customer relationships.Also the possibility to inform important customers about the new products inbeforehand affects the customer relationship.

“In b-to-b there are value-added services, which create collectivism and addvalue, which may turn into sales. These services increase the customerservice so customers will be customers longer.” (Expert interview.)The objective of the communication at the pre-relationship stage is to createawareness of the company. It seems that the web pages of companies are animportant marketing channel for potential customers. Advertising in other channels isused to guide potential customers to web pages to look for more information and toget to know the company. The most popular tool that is used to create awarenessamong potential customers is videos. Especially in YouTube the peer-to-peercommunication works as a recommendation and a company can increase the brandawareness with videos. Search engine optimization and general presence in webguides customers to web sites. This is referred as an inbound marketing: to beavailable to potential customers. It is also easier to contact the potential customerswhen they have some preliminary information about the company.69“The role of the web is big to potential customers who we don’t know yet butwho could be our customers. The inbound role: that the potential customerfinds us when looking for us.” (Expert interview.)At the next stage of the relationship building, the negotiation stage, the aim is tocommunicate with customers who already know the company and have the interestto do business with it. They are not yet existing customers but have plans to becomeones. The objective in business-to-business markets is not to make direct salesthrough social media but to communicate through these channels is more of a prenegotiation:to get to know the business partner which hopefully will lead to sales.The communication can be more outgoing at this stage: direct e-mails could be usedat this stage. The social media enables more accurate communication with customersthan the traditional channels like fairs. Business partners can get to know each otherbetter beforehand when the company information is available in digital channels.“The benefit is that when we contact the customer this way, the customeralready has interest in it and we can give more accurate information thanthrough traditional advertising or during a short visit at a fair stand”(Company interview).At the relationship development stage the social media makes the management ofcustomer and supplier interfaces easier and the communication more transparent.Company should together with its customers plan who are communicating and howthey are communicating. The communication should be developed from customerneeds. Communication in social media is more relaxed and more modern way tokeep up the constant communication with customers. In b-to-b markets the customershipsare big and complex so constant interaction is required. Traditional face-to-facemeetings and telephone calls are used to maintain the relationships.“We can in a more relaxed environment keep up the communicationand maintain the customer relationship” (Expert interview).

Extranet seems to be an alternative tool to develop relationships in companies.Customers can log in and search for information in extranets. Extranet can also beused for service instructions and product catalogues. Customers can be divided into70groups so that the information a certain customer is looking for is easily found.Customer communities can also be used to develop the customer relationships.“To safely put in extranet behind passwords service instructions, productcatalogues and information which serve certain type of customers” (Companyinterview).At the pre-relationship stage the social media is important. The image building andcreating awareness among potential customers can be done with social media toolslike blogs and search engines. The actual negotiation of sales in b-to-b still seems tohappen on face-to-face meetings. The digital medium is used more as a prenegotiationchannel: to get to know the business partner one plans to deal with. Atthe relationship development stage the social media makes the communication fasterand more unplanned. The communication is more informal and constant which helpsto maintain the relationship. Communication media used in different stages ofrelationship development process is introduced in table 8.Table 8. Communication media in different stages of relationship development process.Pre-relationship stage Negotiation stage Relationship development stageweb sites face-to-face face-to-facesearch engines direct e-mails extranetportals widgets social networksblogs communities5.6 Utilization of social media tools in communicationIt seems still that the social media tools are not widely used in communication in theb-to-b environment. As mentioned earlier the problem may be that the opportunitiesit creates as well as the choice of tools among all of them is difficult to outline. It isrecognized that the social media tools are useful in support functions and after salesfunctions. Especially recruitment and customer training are functions which benefitfrom doing them digitally. Training through video conferences or by video posted ona website is more profitable than arranging a physical training meeting for engineersfrom different countries. The possibility to replicate the training digitally is anopportunity.71“Media is present in everything, with one log in all own things areaccessible, more like portals where the content is brought from differentchannels and databases and in different forms and one can personifyit”(Company interview).Social media tools that already are utilized in companies include social network sites,RSS feeds and videos. From more traditional web tools extranet, intranet, searchengine optimization, white papers, image bank, e-newsletters and banneradvertisement were mentioned. From social network sites companies have foundedown groups in Facebook, where the employees can join in. Also LinkedIn is used for

networking with business partners. These social network sites are used as an informalcommunication medium among employees and business partners. LinkedIn is usedmore for actual networking and references. Also direct industry forums are beingused to get the latest information about the news in the industry.As the companies recognize that the role of digital channels in communication isincreasing they have plans to implement social media tools in their communication.Some companies already have concrete plans to start a corporate blog. However,there are also doubts whether a blog really is useful. Other plans that the companieshave for social media are direct feedback channels and discussion forums. Differentcommunities could be used for recommendation and comparison betweencompanies. There was also an interesting idea mentioned about the customercommunities. The Bluetooth technology could be used in order to recognize themembers of your own community in a same physical place. This could be used infairs and company events where the potential customers could be recognized andcontacted. Communities could also be used for information sharing and publicrelations.Also the use of widgets for orders and micro blogging services like Jaiku and Twitterwere mentioned as tools which could be implemented in the future. The most popularsocial media tool seems to be video sharing site YouTube. It was referred to in manyinterviews and example videos were mentioned. For example in business-to-businessmarket the video of Epuron was mentioned as well as Polar Electro. Companies are72planning on putting videos to YouTube however there are doubts about whether thehumour is as appropriate in business markets as in consumer markets. Popular videosin YouTube are usually amusing and are based on humour. There was alsomentioned the possibility to create video technology like YouTube on company’sown web site. Company could post presentation and training videos on their ownsites where customers could find those. Another interesting idea was to create anown Wikipedia about the company. This so called “companypedia” would have thelatest news and technologies of the industry. It would be like an encyclopaedia of theindustry. The Wikipedia as a channel to share correct information about the industryand the technology was seen as an opportunity. The companies interviewed wereoperating in industrial markets so the technology aspect of their products is high.It seems that the companies recognize the benefits of social media in customercommunication but they are more willing to implement it internally. Internal blogsand social bookmarks as well as instant messaging among employees are seen as apossibility to be more effective. Generally there seems to be a need and will to startto figure out how the social media could be utilized and how it could be measuredand followed.“Not only to eliminate the negative sides but also to think what is thebenefits of this and where we are pursuing whit it” (Expert interview).Many companies would like to find a direct channel for feedback from theircustomers. Customer feedback sites getsatisfaction.com and uservoice.com werementioned to be sites where a customer and a company meet in order to make things

better for both parties.“There comes new generation to business constantly that is used to live in avirtual world and on the web. I believe they will utilize these tools differentlyand will in the future, when they enter the business world, bring those toolswith them.” (Company interview.)There are examples of successful use of the social media tools in business-tobusinessmarket. YouTube is used by Oracle for the “Who caught John Blade”-73video, Intel has used SecondLife for product launch, Sun the virtual world, Cisco hasused wikis for open innovation and in Finland the Fonecta has utilized the crossmediasynergy in their campaigns.According to a survey by the International Association of Business Communicatorsamong business communicators in the United States only 40 % of them use socialmedia tools at work. Although social media tools are widely used at home the usehas not been expanded to work environment. The survey also supports findings thatsmall companies adopt the use of social media more easily than big companies. Thisis due to cultural elements. (Williams & Williams 2008.)A gallup (CIO 2009) made to CIOs in several Finnish companies supports theempirical data of this study. According to the gallup the social media is not yetwidely used for business or marketing activities. Generally social media tools arerecognized to be a useful communication and marketing medium and there is aninterest in using them. Companies are mapping the opportunities to use them andthere are plans to use them in marketing. However, there is not much experience inFinnish companies in using social media tools so some caution can be observed inimplementation of these tools.746 CONCLUSIONSThe objective of this study is to explore the role of social media in customercommunication in business-to-business markets. The research questions that wereused to find answers to the topic included one main research question and three subquestions.The main research question was: What is the role of social media in customercommunication in business-to-business markets?Sub-questions explored the characteristics, opportunities and challenges of socialmedia. The relationship development viewpoint was taken into communication dueto the importance of relationships in business-to-business markets. The sub-questionswere:What kind of characteristics the social media has as a communication medium?What kind of opportunities and challenges the social media induces forcommunication?How the social media can be utilized in current customer relationships and withpotential customers?This chapter will present the main findings of this study and answers to the researchquestions. Theoretical conclusions are drawn to give insights of the role of social

media in customer communication from the theoretical viewpoint. Features that havean effect as well as the relationship between these features are considered.Managerial implications are given in order for the seller organizations in business-tobusinessmarkets to evaluate the opportunities and challenges of social media forcustomer communication. The study evaluation and future research topics can befound at the end of this chapter.756.1 Theoretical conclusionsA complete theory should be composed of description and explanation. A theoryconsists of elements which answer to questions what, how and why. Relationshipsbetween relevant factors are the domain of the theory. What, describes the factorseffecting to phenomenon and how, the relationships between the factors. Why, againexplains the selection of factors and the relationships between them. The theoreticalframework generated from previous elements can be tested by questions of who,where and when. These conditions can either support or constrict the theory.(Whetten 1989.)This research studied a topic that is still novel but popular in the field of digitalmarketing. Researches done on social media can be found, however the academicresearch is still inadequate especially in business-to-business context. The aim of thisstudy was to contribute to the research of social media from the customercommunication viewpoint. The relationship model has been used in communicationresearch previously (Andersen 2001, Ambrose et al. 2008) but combining therelationship model in social media communication is supposedly new. Thecontribution of this research was thus to explore the role of social media at differentrelationship development stages in order to recognize the opportunities the socialmedia creates but at the same time to be aware of the challenges connected to thecommunication in social media.Social media has changed the way people communicate with each other. Traditionalbusiness communication requires time and place to keep in touch with one’s businesspartners. Social media applications are designed for more of an ad hoccommunication and with new modes of interaction. (Shih 2009, 45 – 46.) Thecommunication in the social media generally happens on an individual level so theorganizations have to evaluate how individual, personal level can be integrated tocorporate communication in a trustworthy way. The main question in social media ishow to get the people to involve in and to create value to themselves and to thecompany.76The use of social media in customer communication in business-to-business marketsenables efficient and continuous communication that helps to maintain and developrelationships with customers. Customers become co-creators of the content in socialmedia and they voluntarily participate in communication. The customer engagementcreates opportunities compared to traditional marketing communication which oftenis planned one-way communication from the marketer’s side. The communication in

social media is more informal and continuous.The features of social media: openness, peering, sharing, global action (Tapscott &Williams 2008, 20 - 30), increase the amount of information available and thetransparency, trust in available information as it is shared among peers and access toinformation on global markets and actors. Customers as co-producers of content insocial media help the organization to gather information on customer needs and ideasfor product development. The characteristics of social media increase thetransparency of the parties which in turn may increase the trust in a relationship.Trust in business relationships is important because the purchases often requiremassive investments and resources. Viral marketing and information shared amongpeers also increases the trust as people trust more for information generated frompeers than seller companies. Independence of time and place for communication insocial media widens the potential market of the company to global. The maincharacteristics of the social media which come out on the empirical data analysis ofthis study are transparency, openness, interactive communication, community,participation and user-generated content. These characteristics were also found in thetheoretical part (Singh et al. 2008; Solomon & Schrum 2007, 24; Tapscott &Williams 2008, 20).Social media tools create opportunities to reach wider audience and create newbusiness connections. Social media sites are very attractive environment in which toconduct business in. Audience is wide and the targeting is easier when people aregathered around the same interest in different communities and groups within them.The objective in social media has become to collaborate and interact with customers.77Opportunities that benefit communication in social media apply to efficiency inbusiness communication which in turn develops the customer relationships. Viralmarketing is one feature which widens the audience for communication in socialmedia and is one of the most important opportunity that social media creates (DeBruyn & Lilien 2008; Brown et al. 2007). Targeting markets is easier because usersare profiled according to their interests and references. Reaching wider audience andtargeting markets more effectively increases the brand awareness and helps withbrand building (Weber 2007, 23 – 24). Tele-presence makes information search andfindability of a company easier (Salmenkivi & Nyman 2007, 278 – 286).Technological opportunities concern effectiveness, usability and measurement of thecontacts.Challenging in social media communication is that the contacts may be with peopleone never have met offline. Thus the credibility of the information in online has to beevaluated on other basis than with offline relationships. Understanding thepossibilities and the extension of social media is the biggest challenge to the sellers.A challenge that seller companies also should recognize when communicating insocial media, concerns the uncontrollability of the media. Users can openly writetheir comments and the marketer cannot prevent that. The differences in b-to-bmarkets, compared to b-to-c markets where the social media seems to be more used,are of concern. Business culture in traditional b-to-b markets in Finland combined to

threats of privacy issues hinders the implementation of social media. The traditionalbusiness culture and stickiness of old habits were also recognized in theory aschallenges of social media (Ahlqvist et al. 2008, 29, 33; Kangas et al. 2007, 57).There are also technical aspects which include privacy and trust issues as well as themeasurement of the effectiveness of social media. The engagement both from theseller side but also from the customer side is a challenge that is related to the socialmedia (Creese 2007).From the relationship development viewpoint it seems that the traditionalcommunication methods like face-to-face meetings and telephone are still importantin b-to-b markets at all stages of the relationship development. However, there were78also found social media tools which may be helpful. At the pre-relationship stagesocial media tools increase the brand awareness and help to reach wider audience.Web sites, different portals, search engines, viral videos and blogs were recognizedas channels to share information and increase the awareness of the company. Intheory there were also mentioned social network sites and communities as well aswikis which could increase the awareness of the company among potentialcustomers. At the negotiation stage e-mail is widely used in b-to-b context but alsowidgets could be used for informing customers on new products. The theory suggestthat social network sites and communities enable the communication in procurementprocess while RSS feeds and podcasts could inform about product developments. Atthe relationship development stage it is recognized that the social network sites andcommunities help to develop the relationships and maintain continuouscommunication with existing customers. Extranet is used to inform differentcustomer groups. There is an interesting possibility in virtual worlds with existingcustomers which is not widely utilized yet. Also in more stabile customerrelationships the RSS feeds and widgets help to update the customers about the news.Wikis could be used at every stage of the relationship for collaboration and gatheringof information about the industry.Characteristics that differs the communication in social media from traditionalmarketing communication as well as the opportunities and challenges the socialmedia creates are combined to the relationship development model by Andersen(2001). Stages of the relationship development process are the viewpoint for the roleof social media in customer communication as the relationship develops (see Figure10).79Figure 10. The role of social media in customer communication in business-to-business markets.The main characteristics of social media: participation, user-generated content,interaction and transparency, increase the effectiveness of communication becausethe customers are self part of creating the communication. The commitment forrelationship development is thus higher. Challenging is to engage both the seller andthe potential customers for communication in social media. The seller may notrecognize the importance of tele-presence in social media and may be afraid of the

uncontrollability of different communication mediums. The customers may beSOCIAL MEDIAParticipationUser-generated contentInteractionTransparencyViral marketingSeller CustomersPRE-RELATIONSHIPSTAGECommunication task:Create awarenessPlanned communicationOpportunities:Creating brand awarenessReaching wider audienceEfficiency in customercommunicationInformation searchPromotionTele-presenceChallenges:Value of the content insocial mediaEngagement of the sellerUnderstanding the role ofsocial mediaUncontrollabilityFinnish business cultureCommunication tools:blog, social network,community viral video,wikiNEGOTIATIONSTAGECommunication task:Develop relationshipContact creationOpportunities:Brand buildingInformationsearch/sharingEfficiency in customercommunication

Targeting marketsFacilitate purchaseTele-presenceChallenges:EngagementValue of the content insocial mediaPrivacy and trust issuesUncontrollabilityFinnish business cultureCommunication tools:blog, social network,community, RSS feed,widget, wiki, podcast,viral videoRELATIONSHIPDEVELOPMENTSTAGECommunication task:Create mutual valueConnectednessOpportunities:Brand buildingInformation sharingEfficiency in customercommunicationTele-presenceChallenges:EngagementPrivacy and trust issuesValue of the content insocial mediaLegislationResourcesUncontrollabilityFinnish business cultureCommunication tools:blog, social network,community, virtual world,RSS, widget, wiki, podcast80difficult to engage due to the Finnish business culture being still quite conservativeand customers may require more traditional communication tools to engage in therelationship. One weakness of the social media is that the content of the

communication in social media may not be very valuable because the content iscreated both by professional and customers. It may be difficult to trust all theinformation available in different social media channels. Also the privacy issues areof concern both from the sellers and the customers side.The role of social media in customer communication in business-to-business marketsis to be present in mediums where the potential and existing customers are. Thecharacteristics of social media increase the effectiveness of communication at everystage of the relationship and make the communication more informal and constant.Development and maintaining customer relationships is thus easier. The seller getsfeedback from the customers continuously and can better adjust offerings tocustomers. Viral marketing increases the awareness of the company and its offeringamong wider audience. Seller and customers can search and share informationamong each other through different social media tools. This way all parties are keptupdated of the new information. The importance of social media differs at differentstages of the relationship. At the pre-relationships stage it is important to createawareness about the company among potential customers. At the negotiation stagethe negotiation of transactions is the main objective of the communication. Atrelationship development stage it is important to keep the customer satisfied andoffer additional supplies. Creation of mutual value engages both parties to therelationship at this stage. The objective of the social media in customercommunication is to create value both to the company and its customers.6.2 Managerial implicationsFor companies operating in business-to-business markets it is important to recognizeand reach potential customers. Relationships with customers can be long andfounded on mutual trust. The purchases in b-to-b markets often require biginvestments and include several people who build a buying group so reaching all the81decision-makers is important. Communication in relationship should be continuousand be based on needs of the customer. The seller has to be aware of the changingneeds of existing customers as well as the needs of potential customers in order toanswer to these needs. Social media enables the constant contact with customers.Different social media tools make the informing about new products and updates,communicating about customer needs and sharing of information among customerseasier.It is important for a company to create an understanding what the social media meansand the opportunities it has as a communication channel for that particular company.There are many tools and applications to choose among so the company has toevaluate which tools suit best for their needs. However, marketers need to understandthat social media tools do not attract all customers. Especially in the b-to-b marketsthere are still conservative industries where face-to-face meetings and othertraditional communication channels are the best ways to reach the customer. For acompany to implement social media in customer communication requires theunderstanding of the possibilities the social media creates. The company has toengage in implementing social media as a communication media in order to really

gain advantages through it. Being present, offering updated information as well asanswering to customer requirements creates value not just for the company itself butalso to its customers.Relationships are important in b-to-b buying because single transactions require largeinvestments and long negotiations. An established and trustful relationship with sameparty creates value for both parties. Marketers should find out which social mediatools their customers are using and try to contact those customers in their venues. Atthe pre-relationship stage the seller could find out in which channels the potentialcustomers are present and use planned communication for creation of awareness.Creating awareness on those venues could reach potential customers to search formore information about the company. Examples of social media tools that the sellercan use is blog for information sharing, social network sites and communities tocontact people and using references to reach potential customers. A popular82information sharing tool is viral videos. Especially in b-to-c market viral videos onYouTube reaches mass audiences. There are also examples of well targeted b-to-bviral videos. For example Cisco and Epuron have released viral videos that are wellknownin their industry. So it seems that social media tools do reach potentialcustomers and thus should be used for communication among traditionalcommunication channels.At the negotiation stage of the relationship development the social media can beutilized for making the actual transaction possible. The seller may seek for starting along-term relationship with the customer through contact. Communication about thetransaction and its fulfilment can be handled effectively in social network sites andcommunities. The seller can inform the customer about updates through RSS feedsand widgets. At the relationship development stage the most important task forcommunication is to create mutual value for both parties through connectedness.Social media tools which seem to fit in this stage include the earlier mentioned toolsbut also wikis is a good tool to gather latest information of the industry. Especially inb-to-b markets the products can be very technical and require lot of informationsearch before purchasing. Wiki that gathers all the information concerning theindustry and products help the customers to search for information. The seller canprovide information about its products and employees as well as customers cancreate content which increases the amount of information.A company operating in business-to-business markets should thus evaluate its ownoffering relative to potential and existing customers in order to build anunderstanding what the social media means and which possibilities it creates for thecompany in customer communication. Whether to implement the social media as partof customer communication depends on whether the company can reach customersthat way. The increasing usage of social media privately and in consumer marketswill increase its use in business communication in the near future. It is thus importantfor companies to find out how they could implement the social media tools forcommunication. The technological progress is fast and new applications are entering

the digital environment.836.3 Limitations and evaluation of the studyChristians (2005, 144 - 145) have collected ethical issues concerning the researchprocess. These issues include informed consent, deception, privacy andconfidentiality and accuracy. Informed consent includes two conditions: therespondents must voluntarily agree to participate in the study and the agreement mustbe based on full and open information. The different experiments designed andconducted by researchers should be free of active deception. Privacy of respondents’identity and keeping the information collected confidential are principles in researchconducted ethically. Accurate data is also one main principle in scientific research.This research was conducted according to the mentioned ethical issues. Theinterviewees were informed about the objectives of the study and the use and thepurpose of the data collected. They voluntarily participated in the study. Interviewswere designed accurately and there should not be misinterpretation of the questionsasked nor the answers given. Privacy of the interviewees was promised to keep andtherefore no single interviews with names are provided in this study. The study refersto some expressions made by individual interviewees but it is not possible torecognize neither the company nor the respondent in question. Direct citations areonly used to provide better expression of the studied phenomenon. Accuracy isfollowed through the research process in order to increase the validity of the study.Validity, reliability and generalization are requirements for academic research.Validity refers to the truth or accuracy of the study: how true the claims and howaccurate the interpretations being made in the study are. (Moisander & Valtonen,2006, 23 - 24.) Validity in a qualitative research refers to a descriptive, interpretativeand theoretical validity. The degree to which the actual description holds true isreferring to descriptive validity. Interpretative validity refers to how correct theinterpretation is. Theoretical validity measures whether the suggested theory holdstrue. (Ghauri & Grønhaug 2005, 216, 218.) The validity of this study is tried toincrease in data collection stage by using several sources. The interviews were84conducted in several companies as well as among several experts. Secondary data isalso used for triangulation. In the data analysis stage the validity is noticed whenreading and coding the data. The truth and accuracy is tried to follow ininterpretation of the data. The chosen research method also affects the validity.Conducting interviews among industrial companies and experts on social media suitswell for a research topic that is novel. The validity was increased by triangulating thefindings with secondary data.Reliability refers to minimizing the errors and biases in a research. Describing themethodological choices in detail in order to make the research process transparentincreases the reliability of a research. (Yin 2003, 37 – 38.) Reliability indicates toconducting the research in a systematic and rigorous manner which include recordingand transcribing the data (Moisander & Valtonen 2006, 28). Reliability of this studyis increased by recording the telephone interviews and using transcript of interviews

in analysis stage of the research process. The data was coded and organized whichhelps to recognize and analyze the themes. The research process is also tried todescribe in detail which increases the reliability.The generalization of the research findings is not such a valid measure in qualitativeresearch as it is in quantitative. In qualitative research it rather refers totransferability of the results: to what extent the results can be transferred and appliedto other contexts and situations. (Moisander & Valtonen 2006, 28 - 29.) The resultsof this study seem to be transferrable to other contexts because the secondary datasupported the findings made in this study. The use of social media still seems to beexiguous in business-to-business markets although its importance as acommunication channel is recognized. However, the empirical study only concernedsix companies operating in industrial markets so the results from this study shouldnot be generalized. The companies interviewed for this study have head quarters inFinland which has an effect to the transferability of the results to other countries. Thecompanies have multinational operation but it can be assumed from the data that theFinnish business culture affects the communication in social media. The results arethus transferrable at the most to countries with similar business culture than in85Finland. The limitations of the empirical data are recognized due to the fact that theempirical data only concerned six Finnish companies operating in industrial markets.The expert interviews were collected to get data about the topic that is still quitenovel. The expert interviews gave competent ideas and viewpoints to the topic. Therewere also used secondary data in the empirical study to triangulate the findings. Theused data, both primary and secondary, was relevant in this topic and findings madein the empirical study support the findings in the theoretical part.The theoretical part of this study was mostly conducted from academic journals.However the research on social media is still inadequate and the research of the topicdevelops so rapidly that secondary references (web-pages and reports) as well asnon-academic journals are considered due to their fresh insights to the studied topic.When using these references as well as when referring to academic journals,criticism is taken account. The research topic is still novel so it is challenging to findrelevant academic theory which focuses on the topic. There are written numerousbooks and manuals on how to practically integrate the social media into companies’marketing activities, but there is a lack of theoretical models. It was thereforechallenging to find relevant academic articles. The amount and quality of reports andarticles published about the topic is increasing but especially in business-to-businesscontext the literature is still inadequate. Therefore relevant theories from consumercontext are adapted to business context in this study. There have been also usedsecondary references in order to create a current picture of the phenomenon. Therehas been used criticism and consideration in creation of the theoretical framework.The objective was to develop a holistic picture of the role of social media incustomer communication in business-to-business context. The theory is comprisedfrom parts that are relevant to phenomenon: marketing communication in general,digital marketing communication in particular, the characteristics, opportunities and

challenges of social media. The marketing communication in relationship buildingand development is relevant because in business-to-business context relationshipsplay an important role in decision-making. Presentation of different social mediatools contributes to discover the possibilities companies have in customercommunication in social media.866.4 Suggestions for future researchAccording to this study the use of social media seems to be quite insignificant amongb-to-b companies. A quantitative research on the actual use of social media in b-to-bcustomer communication would reveal the real use. As the advertisement in digitalchannels is increasing while total investments in advertising are decreasing the roleof social media in an integrated marketing communication strategy could be aninteresting topic to study. Future research on social media in communication couldalso concern the measurement. The measurement of the effectiveness ofcommunication is easier in digital communication channels compared to traditionalchannels. However, more accurate and useful ways to measure the effectivenesscould be developed. From the methodological viewpoint virtual communities couldbe used as focus groups when conducting market research.It could also be interesting to study whether there are some specific industries thatuse social media in communication more than others. This study focused on socialmedia in customer communication in b-to-b markets in Finland. Comparisonresearch among use of the social media in different countries would be interesting inorder to recognize how the business culture affects the use of social media. Alsobenchmarking from other countries and companies would benefit when evaluatingthe use of social media.87REFERENCESAhlqvist, T., Bäck, A., Halonen, M. & Heinonen, S. (2008). Social media roadmaps.Exploring the futures triggered by social media. VTT Research Notes2454. Espoo: VTT.Ahlqvist, T., Halonen, M. & Heinonen, S. (2007). Weak signals in social media.Report on two workshop experiments in futures monitoring. SOMEDforesight report 1. Research report no VTT-R-03466-07. Espoo: VTT.Ambrose, E., Marshall, D., Fynes, B. & Lynch, D. (2008). Communication mediaselection in buyer-supplier relationships. International Journal ofOperations & Production Management, 28(4), 360 – 379.Andersen, P.H. (2001). Relationship development and marketing communication: anintegrative model. The Journal of Business & Industrial Marketing, 16(3), 167 – 182.Armstrong, A. & Hagel, J. (1995). Real profits from virtual communities. TheMcKinsey Quarterly, 3, 127 – 141.Armstrong, G. & Kotler, P. (2009). Marketing: an Introduction (9th ed.). New Jersey:Pearson Education, Inc.

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3. Do you know of any successful b-to-b online viral marketing campaigns?What are the benefits of e.g. posting videos on Youtube or pictures on Flickr?How can the benefits be measured?Social media tools1. What social media tools are particularly relevant for b-to-b marketing?2. How should these tools ideally be used?3. What are the pros and cons compared with traditional marketing channels?984. How can the pros be measured? Is there evidence that using social mediatools in b-to-b markets could e.g. increase sales5. Are there ways to eliminate the cons?6. Should all b-to-b companies harness social media or are there particularindustries where social media is irrelevant?Applications and technologies1. Will new technologies be built on the current ones or is radical innovationmore likely?2. Compared with current technologies what benefits will new technologiesbring for companies and customers?Future1. What are the biggest challenges for b-to-b companies in the future?2. How will (web 3.0) differ from web 2.0?Other possible themes1. Mobile internet (significance for b-to-b companies’ marketing and customers)2. Future business models involving social media3. Network technologies