Industrial Marketing Management 31 (2002) 133 – 144

Fortune 500 manufacturer web sites

Innovative marketing strategies or cyberbrochures?
Monica Perry, Charles D. Bodkin*,1
Department of Marketing, The Belk College of Business Administration, University of North Carolina at Charlotte, 9201 University City Boulevard,
Charlotte, NC 28223, USA
Received 31 May 2000; received in revised form 10 November 2000; accepted 15 March 2001

Abstract

Forecasts for business-to-business electronic commerce over the next few years are in the trillions. Manufacturers represent a significant
portion of business-to-business activity and their web sites an integral component of business-to-business electronic commerce. Should they
choose to, manufacturers can use their web sites not only to conduct electronic commerce but also to engage in a wide range of marketing
communications. Marketing communication activities include advertising, sales promotion, public relations, and direct marketing. The results
of our content analysis of 188 Fortune 500 manufacturer web sites indicated that few manufacturers use a broad range of marketing
communications activities. Analysis of differences in the use of marketing communications on web sites suggests that some aspects of web
site marketing communications differ based on manufacturer characteristics such as sales, R&D to sales ratio, and net income. D 2001
Elsevier Science Inc. All rights reserved.

Keywords: Internet; Marketing; Electronic commerce; Business to business; B2B; Web sites; Manufacturer; Statistical analysis; Communications; Promotional
mix; Cyberspace; Studies; Performance evaluation

1. Introduction
Forecasts for business-to-business electronic commerce
over the next few years are in the trillions. Forrester
Research [1] forecasts US$2.7 trillion in sales from
business-to-business electronic commerce in 2004 (United
States). International electronic commerce is also expected
to experience explosive growth in regions such as Asia
and Latin America [1,2].
Manufacturers represent a significant portion of business-
to-business activity and their web sites an integral compon-
ent of business-to-business electronic commerce. Should
they choose, manufacturers can communicate directly with
potential customers by utilizing a broad range of marketing
communications via their web sites in addition to conducting
electronic commerce. Web sites differ from traditional and
proprietary forms of electronic commerce, such as Electronic
* Corresponding author. Tel.: +1-704-687-4394; fax: +1-704-687-
6463.
E-mail addresses: mlperry@email.uncc.edu (M. Perry),
cbodkin@email.uncc.edu (C.D. Bodkin).
1
Tel.: + 1-704-547-2741.
Data Interchange (EDI), and thus offer buyers and manu-
facturers a unique opportunity. More importantly, over half
of all Internet users are expected to be business users [3].
As more business users access the Internet, the attractive-
ness of using web sites as an integrated marketing com-
munication medium increases. The growth and unique
capabilities of web sites present the opportunity for manu-
facturers to develop a relatively cost-effective channel to
communicate directly with customers that use the Internet.
In the physical marketplace (outside cyberspace), manu-
facturers use a variety of marketing communications activ-
ities to communicate with customers and stakeholders.
While the potential is evident, it is not clear whether
manufacturers leverage that potential by utilizing a broad,
rather than narrow, range of marketing communications on
web sites. As a result of the time and effort involved in web
site development, it is likely that Fortune 500 firms would
be most likely to have sufficient resources to engage in fully
featured web sites for marketing communications.
While Fortune 500 manufacturers may have adequate
resources, all of them do not engage in the same level and
types of marketing communication activities on their web
sites. Our research results describe marketing communica-

0019-8501/02/$ – see front matter D 2001 Elsevier Science Inc. All rights reserved.
PII: S 0 0 1 9 - 8 5 0 1 ( 0 1 ) 0 0 1 8 7 - 0
134 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144
tions trends and differences across Fortune 500 manufacturer
web sites. The specific research questions we address are:
1. Do Fortune 500 manufacturer web sites reflect the
variety of marketing communications activities used
in the physical marketplace?
2. What are the dominant and rarely used marketing
communications on Fortune 500 manufacturer web
sites?, and
3. Are differences in web site marketing strategies
associated with different manufacturer characteristics
such as sales, R&D to sales ratio, and net income?
We begin by first discussing the relevant literature then
the research design, results, and lastly with the discussion
and conclusion.
2. Literature review and conceptual definitions
We incorporate the relevant literature that focuses on
marketing communications, business-to-business marketing,
and the unique aspects of web sites. The literature on
marketing communications, or the promotional mix, is wide
and varied. Our focus is on the marketing communications
literature that defines and describes promotional mix activ-
ities and variations in use. Components of the marketing
communications mix for web sites include: (1) advertising,
(2) sales promotions, (3) public relations, and (4) direct
marketing [4].
2.1. Advertising
The first promotional tool, advertising, occupies the same
function in cyberspace (web sites) as in the physical market-
place. The goals of advertising are to create awareness,
communicate benefits, promote trial, and urge customers
into action [5]. Our definition of the content of communi-
cations in web site advertising parallels van Waterschoot
and Van den Botte’s [6] discussion of the promotion mix —
the web site can communicate information about products,
prices, and/or distribution. We also add general company
information to our definition of advertising content to
acknowledge the potential role of institutional advertising.
Advertising messages can contain company- and/or
product-specific content. Product-specific content includes
brand images and trademarks, as well as product benefits,
quality, and/or features. A corporate web site can provide a
variety of information such as details about product lines,
specific products, product use, product benefits, prices, and
distribution options (availability of products from various
intermediaries). Company information includes compo-
nents such as tag lines and corporate logos. For example,
Con Agra’s web site prominently displays their tag line
‘‘Across the food chain — around the world.’’ The need
for corporate and product brand building advertising in
business-to-business is at least as great as it is in consumer
markets (Warman).
2.2. Sales promotion
Advertising is but one part of the promotional mix; sales
promotions can also be offered and/or delivered via the web
site. The major sales promotion tools relevant to manufac-
turer web sites include refunds/rebates, premium and spe-
cialty offers, sampling, online demonstrations, and contests
and sweepstakes.
Sales promotions have been given an increasing portion
of the total communications budgets [cf. 5]. Some manu-
facturers, like Procter and Gamble, have attempted to end
sales promotions by utilizing EDLP (everyday low pricing),
they subsequently have reinstituted sales promotion practi-
ces [5]. If web site promotional efforts mirror the physical
world, we would expect to see relatively frequent use of
sales promotion on Fortune 500 manufacturer web sites.
2.3. Public relations
The third promotional tool, public relations, includes
news (e.g., press releases), speeches, educational programs,
public-service activities, and lobbying or cause-related
information. Significant debate exists within the marketing
community about the impact of public relations activities on
customer choice. Therefore we include public relations for
completeness but it is not a focal point for our current study.
2.4. Direct marketing
The final type of communication utilized on a corporate
web site is direct marketing. Direct marketing takes two
forms. First, a manufacturer can engage in electronic com-
merce by providing customers with the ability to purchase
products online through the web site (Internet).
One might expect limited direct marketing activities on
manufacturers’ web sites because EDI use precedes web site
electronic commerce (Internet). While EDI has been used
successfully by some firms, only a small percentage of US
companies utilize EDI [7]. EDI often requires proprietary
software and hardware and thus can be prohibitively
expensive for many manufacturers and more importantly
customers [8]. As a result the penetration and adoption of
EDI across the business customer base is low. Consequently,
we would not expect EDI to supplant the need for Internet
or web site-based electronic commerce.
In addition to EDI, intranets and extranets may supplant
the use of Internet web sites as direct marketing options.
However, as with EDI, the adoption rate for intranets and
extranets is relatively low. A recent study of extranet usage
in the US and Canadian forest products industries found
only a 10% penetration rate for extranets [9]. Intranets can
be expensive in the short term while a manufacturer’s web
site has relatively low initial and ongoing costs for custom-
 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144
ers [10]. As a result, we would expect manufacturers across
the Fortune 500 to actively engage in electronic commerce
(online ordering) on their web sites.
The ability to develop successful online ordering pro-
cesses is undoubtedly related to the specific competencies of
manufacturers. Manufacturers with effective offline order
fulfillment processes should be better positioned to transfer
that competency to online ordering. Thus manufacturers that
effectively manage the offline order fulfillment process
would be more inclined to engage in online ordering.
Inventory turnover can be considered one outcome that
reflects the effectiveness of order fulfillment processes.
Consequently, we would expect more frequent implementa-
tion of online ordering for manufacturers with higher
inventory turnover.
The second form of direct marketing, customer service,
includes any direct marketing activity that involves auxiliary
services, such as product availability, purchases/account
activity, billing and returns, product use, delivery, or prob-
lems [11]. Customer service, whether online or offline, is
often the most important influence on customers’ evaluation
of suppliers [12,13].
2.5. Marketing communications in the marketplace
versus cyberspace
In summary, the full-range of promotional tools on web
sites includes advertising, sales promotion, public relations,
and direct marketing. The synergy among promotional tools
in the physical marketplace is quite evident; however, it is
unclear whether that synergy is capitalized upon with
manufacturer web sites. If such synergies are desired,
understanding the possible range of marketing communica-
tions via web sites becomes even more critical.
One might expect the use of a variety of promotional
tools on web sites to compare similarly to the variety of
various promotional tools used in the physical marketplace.
However, the visibility of web sites to competitors and
relatively low cost of imitation for competitors may present
formidable disincentives for manufacturers. Industries that
lack strong patent protection and have low costs of imitation
make the initial costs of innovation unrecoverable. As a
result, firms are slow to adopt innovations [14].
In addition to the possible disincentives for innovative
web sites, it is also likely that large companies, like Fortune
500 manufacturers, succumb to inertia. Such inertia happens
when companies are successful and do not actively seek
innovations [14]. Web sites that provide an extensive variety
of marketing communications activities can be viewed as a
form of innovation. Having made it on the Fortune 500 list,
Fortune 500 manufacturers may think of themselves as
‘‘successful.’’ Accordingly, Fortune 500 manufacturers
may perceive less need to use a variety of promotional
activities on the web sites (innovate).
The indeterminate nature of cost/benefit analysis for
innovative use of web sites may also contribute to a lack
135
of innovation on web sites. The magnitude of and specific
benefits from a broad use of web site marketing commu-
nications have not been substantiated in rigorous studies
across multiple industries. One survey of 150 companies
by Forrester suggested broad categories of benefits, such
as cost savings, decreases on time to process orders, and
the like. However, most benefits are communicated via
anecdotal success stories of companies like Cisco and
Dell [15].
All manufacturers may not utilize the full range of
marketing communications because the magnitude of the
benefits are unclear while the human and financial invest-
ments in corporate web sites is relatively easy to quantify
[16]. Quaker estimates they spent US$65,000 for first year
design and maintenance of their web site and that it takes
twice as much time and effort to respond to an email relative
to a 1-800 call [17]. The costs of implementing a web site
that encompasses a broad range of marketing communica-
tions are indisputable while the magnitude of the benefits to
a manufacturer may be extremely unclear.
As a result of inertia, competitive disincentives, and
vague cost/benefit analysis, we would expect to see two
trends for marketing communications on manufacturers’
web sites. First, there may be no significant relationship
between measures of success, such as sales and net income
and the use of specific promotional activities on web sites.
Second, manufacturers may use a very limited subset of the
possible range of promotional activities on web sites, thus
minimizing their investments in web site innovations.
2.6. Unique aspects of web sites
Before discussing the results of our analysis it is
important to categorize the unique characteristics of web
sites and consider how the use of these unique character-
istics might relate to company characteristics. R&D repre-
sents a basic source of technological knowledge [18]. R&D
intensity, usually measured as a ratio of R&D to sales,
represents a company characteristic that has been related to
various types of innovativeness such as product innova-
tions [19], computerization in manufacturing [20], and
productivity (process) growth [21]. Manufacturers that
invest in relatively more R&D would be more inclined to
develop and use technological innovations, such as the
more sophisticated information technology functions of
web sites (unique characteristics). Firms exhibiting sub-
stantial technological proclivity would be most likely to
fully utilize the unique characteristics of web sites. A
manufacturer’s level of R&D expenditures can serve as a
proxy for technological know-how so we would expect
greater use of unique web site characteristics with firms that
spend more in R&D.
To fully leverage a web site for marketing communica-
tions, a manufacturer must understand and be able to use
those characteristics of web sites that cannot be as easily
replicated in the offline marketing communications. In
136 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144

particular, marketing managers can take advantage of the information in different way. Web sites have the ability to
highly interactive nature of web sites by recognizing that convey animated text, images, and sound, more akin to
web site users are much more active acquirers of informa- television than print.
tion [22]. Thus we can categorize corporate web sites based
on the ability to (1) customize the information acquisition 2.7. Additional literature on web site use and marketing
with interactive functions, such as pull-down menus,
searches, and screen specialization; (2) provide feedback The literature on marketing communications and web
mechanisms; and (3) convey messages with multimedia sites is emerging, with some research investigating different
capabilities. Each of these functions is discussed below. types of marketing communications and other research
describing web site activities and perceptions. For example,
2.6.1. Interactive functions Ghose and Dou [22] found that the more interactive a web
Customizing the information acquisition process is par- site the more likely the web site was included in the Lycos
ticularly critical given the possibility of information over- Top 5% Sites list (proxy for web site quality).
load. The potential to provide ever-increasing amounts of Many companies may be convinced of the need for a web
information via web sites sets up the distinct possibility of site, but unclear about how to utilize the web site in terms of
information overload for web site visitors. One of the main marketing communications [16]. Consumers perceive adver-
barriers to marketing on the Internet is a concern for tisers with web addresses as more customer-oriented,
information overload [23]. Web sites can provide such responsive, and sophisticated [27], and that same perception
functions as drop-down menus, screen specialization, site can be extended to business customers. In fact, given the
maps, and search functions in an attempt to minimize
information overload.
Table 1
Summary of manufacturers by SIC
2.6.2. Feedback mechanisms
A second unique characteristic of web sites is the SIC major
group Frequency
enhanced ability for two-way communications between site classification Division D: manufacturing (n)
users and the manufacturer. A web site can provide poten-
20 Food and kindred products 25
tial customers with information, but also can provide 21 Tobacco products 1
potential customers the opportunity to exchange informa- 22 Textile mill products 1
tion with the manufacturer. Therefore, we include feedback 23 Apparel and other finished 1
mechanisms such as direct email links, signups, surveys, products made from fabrics
and questionnaires. and similar materials
24 Lumber and wood products, 3
except furniture
2.6.3. Multimedia capabilities 25 Furniture and fixtures 4
A third characteristic of web sites is the ability to provide 26 Paper and allied products 12
static and moving text and images. However, some com- 27 Printing, publishing, and 8
allied industries
panies may view their web site as merely an electronic
28 Chemicals and allied products 26
version of marketing communications done in print media. 29 Petroleum refining and 12
The web site then becomes just another channel to com- related industries
municate the same marketing information provided in print 30 Rubber and miscellaneous 3
(cyberbrochures). plastics products
In a study of Australian companies using web sites, 31 Leather and leather products 0
32 Stone, clay, glass, and 3
Leong et al. [24] found that firms considered web sites concrete products
more like print media than television. Respondents consid- 33 Primary metal industries 9
ered the web a particularly good medium for relaying 34 Fabricated metal products, 6
detailed and large quantities of information rather than being except machinery and
good at conveying emotion. However, even in business-to- transportation equipment
35 Industrial and commercial 31
business advertising photographs and illustrations (images) machinery and computer equipment
increase readership of advertisements [25]. Most business- 36 Electronic and other electrical 16
to-business firms use photographs and illustrations in print equipment and components,
advertisements [26]. The frequent use and effectiveness of except computer equipment
37 Transportation equipment 17
images in advertising is unmistakable. Accordingly, even if
38 Measuring, analyzing, and 8
manufacturers used web sites as cyberbrochures we would controlling instruments; photographic,
expect most to use visuals. medical and optical goods;
Rather than using visuals on web sites in a way similar to watches and clocks
print ads, some manufacturers may take full advantage of 39 Miscellaneous manufacturing industries 2
the uniqueness of the web to communicate marketing Total 188
 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144 137

Table 2 Table 2 (continued )

Components listed by usage frequency on web sites Percentage (%)
Percentage (%) 56 Apply for an account 4 2.1
Top-third 57 Explanation of buttons 4 2.1
1 Logos 175 93.1 58 Online account information 4 2.1
2 About us 172 91.5 59 Surveys 4 2.1
3 Legal 140 74.5 60 Links to nearest dealer 2 1.1
4 News-related 135 71.8 61 Apply for password 1 0.5
5 Product list buttons 134 71.3 62 Coupons 1 0.5
6 Careers 126 67.0 63 Number of visitors 1 0.5
Total 882 64 Quizzes 1 0.5
65 Welcome button 1 0.5
Middle-third 66 Unrelated advertising 0 0.0
7 Email/Contact us 123 65.4 Total 1112
8 Search 114 60.6 Total number of individual components 3156
9 Shareholder information — other 112 59.6
10 Visuals — product 112 59.6
11 Site maps 107 56.9
12 Financials 98 52.1
13 95 50.5 greater level of sophistication of many business customers
14 93 49.5 (relative to consumers), their perceptions are likely to be
15 90 47.9 even more pronounced. Consequently, manufacturers
16 Visuals — continuous 81 43.1 believe that some type of web site presence is necessary.
17 Press releases 70 37.2
While companies may have a web site presence, only
18 Visuals — males 67 35.6
Total 1162 those that believe it provides a competitive advantage would
use their web site across a variety of marketing commun-
Bottom-third ication activities. Bush et al. [23] found that while 78% of
19 Stock quotes 62 33.0 the companies had integrated the Internet with their mar-
20 Countries (select) 61 32.4
keting strategy, only 41% believed Internet marketing pro-
21 Links to other sites 60 31.9
22 Visuals — females 57 30.3 vided their companies with a competitive advantage. Hence,
23 Visuals — other 56 29.8 we anticipate observing differences in the breadth of mar-
24 Privacy policy 52 27.7 keting communications utilized on Fortune 500 manufac-
25 Brands (trademarked) 49 26.1 turer web sites.
26 Visuals — flashing words 48 25.5
27 Annual reports 45 23.9
28 Catalogs/Online ordering 44 23.4
29 Customer service 44 23.4 3. Research design
30 Visuals — moving words 42 22.3
31 Educational 40 21.3 3.1. Sample
32 Email/Webmaster 35 18.6
33 Market segmentation 33 17.6
34 Causes 31 16.5 The sampling frame consisted of the top 500 revenue
35 Health/safety/environment 29 15.4 producing companies as identified by Fortune magazine’s
36 History 24 12.8 web site during the period of mid-May to mid-July 1999
37 Research 24 12.8 [28]. This web site was also utilized to generate the URL
38 Nearest dealer search 22 11.7
addresses for the sample companies. From this population
39 Directory 21 11.2
40 Sponsors 21 11.2 companies classified as manufacturers as defined by the
41 Specialize screen 19 10.1 standard industrial classification index (i.e., Division D)
42 Highlights (what’s new, cool) 17 9.0 were included in the study. The selection process resulted
43 Gallery 15 8.0 in 188 companies that were suitable for this study. Of the 20
44 Help button 15 8.0
possible SIC Division D manufacturing classifications five
45 FAQ 14 7.4
46 Signups 14 7.4 were found to represent 61% of all companies in the
47 Download 13 6.9 division. SIC classifications with the highest representation
48 General promotions 13 6.9 include industrial and commercial machinery and computer
49 Public relations — other 13 6.9 equipment (i.e., 31 companies); chemicals and allied prod-
50 Request materials 13 6.9
ucts (26 companies); food and kindred products (25 com-
51 Kids 12 6.4
52 Free gifts 11 5.9 panies); transportation equipment (17 companies); and
53 Games and sweepstakes 8 4.3 electronic and other electrical equipment and components,
54 Prices 7 3.7 except computer equipment (16 companies). Table 1
55 Userid/password 5 2.7 includes a summary of the number of companies included
(continued ) in the study by SIC major group classifications.
138 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144

Table 3 Table 3 (continued )

Total number of components within categories Percentage Percentage
Percentage Percentage Yes (n) of components (%) of total (%)
Yes (n) of components (%) of total (%) Apply for password 1 0.2
Web specific Total 548 100.0 17
Legal 140 21.8
Email/Contact us 123 19.1 Place and price
Search 114 17.7 Nearest dealer search 22 71.0
Site maps 107 16.6 Prices 7 22.6
Privacy policy 52 8.1 Links to nearest dealer 2 6.5
Email/Webmaster 35 5.4 Total 31 100.0 1
Specialize screen 19 3.0
Help button 15 2.3 Sales promotion
FAQ 14 2.2 General promotions 13 39.4
Download 13 2.0 Free gifts 11 33.3
Userid/password 5 0.8 Games and sweepstakes 8 24.2
Explanation of buttons 4 0.6 Coupons 1 3.0
Welcome button 1 0.2 Total 33 100.0 1
Number of visitors 1 0.2
Total 643 100.0 20 Advertising
Links to other sites 60 65.2
Public relations Highlights (what’s new, cool) 17 18.5
News-related 135 39.6 Gallery 15 16.3
Press releases 70 20.5 Unrelated advertising 0 0.0
Educational 40 11.7 Total 92 100.0 3
Causes 31 9.1
21 6.2 Visuals
Signups 14 4.1 Visuals — product 112 24.2
Public relations — other 13 3.8 Visuals — continuous 81 17.5
Kids 12 3.5 Visuals — males 67 14.5
Surveys 4 1.2 Visuals — females 57 12.3
Quizzes 1 0.3 Visuals — other 56 12.1
Total 341 100.0 11 Visuals — flashing words 48 10.4
Visuals — moving words 42 9.1
Shareholder information Total 463 100.0 15
Shareholder 112 35.3
information — other Grand total 3156 100
Financials 98 30.9
Stock quotes 62 19.6
Annual reports 45 14.2
Total 317 100.0 10 3.2. Instrument development
Company specific
About us 172 25.0 Content analysis of web sites has been used in previous
Careers 126 18.3 research to examine the degree of interactivity within web
Divisional specific buttons 95 13.8 sites [23,29] and web site advertising [30]. In the current
Y2K 90 13.1 study a coding sheet was developed to allow for a content
Countries (select) 61 8.9
analysis of corporate web site components.
Market segmentation 33 4.8
Health/safety/environment 29 4.2 The coding sheet was developed through an analysis of
History 24 3.5 50 randomly selected Fortune 500 corporate web sites.
Research 24 3.5 Since one of the goals of the current study was to identify
Directory 21 3.1 immediate perceptions of corporate web sites, only the first
Request materials 13 1.9
screen of the web sites were analyzed. After reviewing these
Total 688 100.0 22
sites the authors identified 66 different web site components
Product specific that were subsequently organized into nine comprehensive
Logos 175 31.9 categories. Once an exhaustive list of potential web site
Product list buttons 134 24.5 components had been identified, a second set of 50 corpor-
Tag line 93 17.0
ate web sites was utilized to test instrument reliability.
Brands (trademarked) 49 8.9
Catalogs/Online ordering 44 8.0 Intercoder reliability for classification of items was 93.8%.
Customer service 44 8.0 Table 2 provides an overview of the individual components
Online account information 4 0.7 utilized within the study. The nine comprehensive categories
Apply for an account 4 0.7 identified in this study include web specific, public rela-
(continued ) tions, shareholder information, company specific, product
 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144 139

specific, place and price, sales promotion, advertising, and category include about us (i.e., information that tells about
visuals. Table 3 provides an overview of individual items the company), careers, and divisional buttons. These three
classified into the nine comprehensive categories along with components account for 57% of all components used in
the frequency of use for the items. this category.

4.2.5. Product-specific components

4. Results
The results will be discussed in three parts. First, overall
web site characteristics are presented followed by analysis
of web site components, and lastly differences between web
sites of manufacturers classified by Fortune 500 rank.
4.1. Overall web site characteristics
This category includes nine components of which three
account for approximately 73% of the total for this category.
These three often-used components include logos, product
list buttons, and the use of a tag line.
Table 4
ANOVA results by category (mean number of components per category)
A. Net sales

The two independent coders examined a total of 3156 Fortune 500 Fortune 500
manufacturers manufacturers Level of
individual components. Findings indicate that the top 50% Category higher sales lower sales F value significance
of the Fortune 500 manufacturing companies account for
Advertising 0.48 0.50 0.05 .82
approximately 63% (1988 of the 3156 items) of the total Company specific 3.87 3.45 3.11 .08
components identified in the study. In addition, approxi- Place and price 0.21 0.12 2.40 .12
mately 9% (6 of the 66 categories) of the categories studied Product specific 3.10 2.73 3.09 .08
accounted for 28% of all components used (882 of the total Public relations 2.09 1.54 10.87 .00
3156 components). Sales promotion 0.16 0.19 0.17 .68
Shareholder 1.85 1.52 4.01 .05
information
4.2. Comprehensive component categories Visuals 2.48 2.45 0.02 .88
Web specific 3.84 3.00 13.01 .00
Results are summarized below and a detailed analysis
within each of the nine comprehensive component categor- B. Net Income
ies is presented in Table 3. Fortune 500 Fortune 500
manufacturers manufacturers
higher net lower net Level of
4.2.1. Web-specific components Category incomes incomes F value significance
Fourteen components are included in this category and
Advertising 0.50 0.48 0.05 .82
account for approximately 20% of total components iden- Company specific 3.98 3.34 7.14 .01
tified. Within the category four components account for Place and price 0.14 0.19 0.73 .39
75% of all components utilized in this category. These four Product specific 3.11 2.72 3.47 .06
components include legal, email/contact us, search, and Public relations 1.98 1.65 3.87 .05
site maps. Sales promotion 0.12 0.23 2.28 .13
Shareholder 1.88 1.49 5.76 .02
information
4.2.2. Public relations components Visuals 2.51 2.41 0.20 .65
This category accounts for 11% of the total number of Web specific 3.77 3.07 8.61 .00
web site components. While 10 components are included in
this category, 3 of the components account for approxi- C. R&D expense
to sales
mately 72% of the total. These often-used components
include news-related, press releases, and educational. Fortune 500
manufacturers Fortune 500
higher R&D manufacturers
4.2.3. Shareholder information components expense to R&D expense Level of
Only four components were used to develop this category. Category sales ratio to sales ratio F value significance
These items include shareholder information — other, finan- Advertising 0.43 0.57 1.64 .20
cials, stock quotes, and annual reports. Shareholder informa- Company specific 4.12 3.53 4.65 .03
tion — other and financials account for approximately 66% Place and price 0.24 0.12 2.71 .10
Product specific 3.43 2.70 10.91 .00
of the total components found in this category.
Public relations 1.93 1.93 0.00 1.00
Sales promotion 0.20 0.15 0.36 .55
4.2.4. Company-specific components Shareholder 1.72 1.73 0.01 .94
This category includes 11 different components and information
accounts for 22% of all components identified in the study. Visuals 2.72 2.32 2.91 .09
The top three components identified by usage in this Web specific 3.93 3.18 8.71 .00
140 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144

4.2.6. Visuals
While many companies incorporated visuals into their
web sites, the percentage of visual components identified
accounted for 15% of the total number of components in
the study. Seven visual components were analyzed in the
study and include product, continuous, males, females,
other, flashing words, and moving words. The component
with the greatest usage was product visuals, which
accounted for approximately 25% of the components clas-
sified in this category.
In addition to the component categories discussed,
three other categories each accounted for 3% or less of
the total number of components observed in this study.
These three categories include place and price, sales
promotion, and advertising.
4.3. Differences between manufacturers
Following the descriptive statistics an analysis of vari-
ance was utilized to examine the impact of the categories on
web site development across the Fortune 500 manufacturers.
The 188 manufacturing companies were divided into two
equal groups based on sales, net income, and R&D expen-
ditures as a percentage of sales (median split).
First companies were ranked according to gross sales.
Sales for the 188 companies ranged from US$2.7 billion to
US$158.5 billion with a median of US$6.59 billion. An
analysis of variance indicated that of the nine comprehens-
ive component categories three were found to be signific-
antly different. Companies with higher gross sales were
significantly more likely to utilize public relations ( P
value = .00), shareholder information ( P value = .05), and
web-specific ( P value = .00) components in their web sites
(see Table 4A). Further investigation into each of the three
categories identified specific components that differed with
respect to usage frequency. Manufacturers with higher gross
sales were more likely to utilize the following six specific
components: legal, privacy policy, specialize the screen,
search, news-related, and stock quotes. Four of these com-
ponents are web specific and one each represents the public
relations and shareholder information categories.
Second companies were ranked according to their net
income. The net income for the 188 manufacturers ranged
from (US$2.74) to US$22.07 billion with a median of
US$317 million. The analysis of variance indicated that
four of the nine comprehensive component categories
exhibited means that were significantly different. In order
of their significance those categories include web specific
( P value = .00), company specific ( P value = .01), share-
holder information ( P value = .02), and public relations ( P
value = .05). These results differ from the previous ana-
lysis by inclusion of the company-specific components as
the second most important category (see Table 4B).
Closer inspection of the data indicates that differences
exist within three of the four categories. Among the web-
specific components the use of legal, privacy policy, and
site maps differed between the two net income groups.
Finally, both the public relations and shareholder informa-
tion categories had one component each that was different
between groups. Those components included surveys and
stock quotes.
Overall, web site designs differ slightly when using gross
sales versus net income as the measure of corporate success.
Manufacturing companies with high gross sales were more
likely to utilize web design components that could special-
ize the screen, assist with searching the site, and provide

Table 5
ANOVA results by category (mean number of components per category)
Two-digit SIC Code
20 25 26 27 28 29 33 34 35 36 37 38 F value Level of significance
Advertising 0.60 0.25 0.33 0.63 0.31 0.50 0.78 0.50 0.48 0.38 0.47 0.75 0.72 .72
Company specific 2.80 3.75 2.92 3.38 4.15 3.92 4.44 2.83 4.10 4.13 3.00 4.63 2.31 .01
Place and price 0.04 0.00 0.08 0.00 0.12 0.08 0.00 0.00 0.42 0.25 0.24 0.00 2.04 .03
Product specific 2.56 2.00 2.50 1.63 2.73 3.25 2.00 2.50 4.00 3.06 2.47 3.13 3.91 .00
Public relations 1.88 0.75 1.67 1.25 2.27 2.25 1.89 1.50 1.65 1.75 1.82 2.25 1.26 .25
Sales promotion 0.44 0.00 0.08 0.00 0.19 0.00 0.00 0.00 0.39 0.00 0.00 0.13 1.86 .05
Shareholder information 1.80 1.50 1.42 1.88 1.96 2.33 2.22 1.67 1.16 1.69 1.76 1.75 1.41 .17
Visuals 2.04 2.25 2.42 2.25 2.77 2.50 2.22 2.83 2.29 2.56 2.47 3.50 0.80 .64
Web specific 3.24 2.50 2.92 3.00 3.42 4.00 3.33 3.50 3.87 3.69 3.18 3.50 0.67 .76
SIC Code
20 Food and kindred products
25 Furniture and fixtures
26 Paper and allied products
27 Printing, publishing, and allied industries
28 Chemicals and allied products
29 Petroleum refining and related industries
33 Primary metal industries
34 Fabricated metal products, except machinery and transportation equipment
35 Industrial and commercial machinery and computer equipment36Electronic and other electrical equipment and components, except computer equipment
37 Transportation equipment
38 Measuring, analyzing, and controlling instruments; photographic, medical and optical goods; watches and clocks
 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144 141

Table 6
Chi-square analyses of online ordering
Online ordering
Yes No F value (Pearson c2) Level of significance
Fortune 500 manufacturers
Higher sales 28 66 2.30 .18
Lower sales 19 75
Higher net incomes 30 64 4.79 .04
Lower net incomes 17 77
Higher turnover 24 70 0.03 .50
Lower turnover 23 71
Higher R&D expense to sales ratio 30 75 0.14 .84
Lower R&D expense to sales ratio 11 32

SIC major group classification

20 Food and kindred products 5 20 24.41 .011
25 Furniture and fixtures 0 4
26 Paper and allied products 1 11
27 Printing, publishing, and allied industries 1 7
28 Chemicals and allied products 5 21
29 Petroleum refining and related industries 2 10
33 Primary metal industries 0 9
34 Fabricated metal products, except machinery and transportation equipment 2 4
35 Industrial and commercial machinery and computer equipment 16 15
36 Electronic and other electrical equipment and components, 4 12
except computer equipment
37 Transportation equipment 1 16
38 Measuring, analyzing, and controlling instruments; photographic, 2 6
medical and optical goods; watches and clocks

news-related stories. Companies with higher net incomes
are more likely to have web sites that included site maps, as
opposed to search features, and surveys. Web site design
components that differ between both higher and lower gross
sales and higher and lower net income include legal, privacy
policy, and stock quotes.
Manufacturers were also split into two groups based on
the ratio of R&D expenses to sales (median = 2.27). The
analysis of variance indicated that three of the nine com-
prehensive component categories exhibited means that were
significantly different (see Table 4C). In order of their
significance those categories include product specific ( P
value = .00), web specific ( P value = .00), and company
specific ( P value = .03). An examination of the individual
components in these three categories indicated that when the
R&D expenditures to sales ratio is higher, companies are
more likely to include the following components in their
web site: product lists, tag lines, ordering online, customer
service, career information, country selections, research
results, search, privacy policy, and the ability to specialize
the screen.
Finally, differences between categories across the various
SIC groupings were examined (see Table 5). The results
indicate that four of the nine broad categories were signific-
antly different. Those categories include company specific
(P value = .01), place and price (P value = .03), product
specific (P value = .00), and sales promotion (P value = .05).
Specific results suggest that industrial-oriented manufac-
turers (e.g., SIC 38 or 35) are more likely to utilize
company-specific and place and price components whereas
manufacturers of products oriented towards final consumers
(e.g., SIC Codes 20 and 35) were more likely to utilize
product-specific and sales promotion components.
The importance of electronic commerce in business-to-
business markets is indisputable. For that reason, we used
a chi-squared test of differences for the use of online
ordering between groups of manufacturers based on sales,
net income, inventory turnover, R&D expenses to sales
ratio, and SIC classifications (Table 6). The results indi-
cated that there was no significant difference in the
frequency of online ordering between manufacturers with
higher and lower inventory turnover, higher and lower
sales, or between higher and lower R&D expense to sales
ratio. However, we did find that manufacturers with higher
net incomes were significantly more likely to engage in
online ordering, and that there was a significant difference
in the frequency of use of online ordering across industries
(SIC classification).
5. Discussion
The overall results suggest that, in aggregate, manufac-
turers are only scratching the surface in terms of marketing
communication web site activities. Most manufacturers used
only 9% (6 out of 66) of the possible web site components.
The use of a variety of marketing communications activities
on web sites is only beginning to emerge.
142 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144
With respect to the use of different types of web site
components, much of the web site activity involves corpor-
ate self-promotion and web site navigation. First, it is
interesting to note that four of the most likely utilized
components were logos, about us (i.e., company informa-
tion), legal information, and news-related information. These
results suggest that, with respect to corporate branding, web
site advertising is not particularly consistent with advertising
in the physical marketplace. While brands and trademarks
for individual products and product lines are more common
than institutional advertising in the physical marketplace, we
fail to find a similar occurrence on manufacturers’ web sites.
Manufacturer’s web sites, rather than focusing on specific
products and brands, appear to focus much more on insti-
tutional advertising (logos and company information).
Second, the next most frequently used set of components
is web site navigation. Over 50% of manufacturers in the
study incorporated search and site map functions. While
more than half recognize the importance of helping users
navigate the virtual space, a considerable percentage do not.
The result is even more curious given the prevalence of web
site addresses in firms’ offline marketing vehicles. Web site
addresses are commonly listed on business cards, brochures,
and TV and print ads. Apparently, many companies are more
interested in generating awareness of the web site than
ensuring that users can easily navigate the site once they
arrive. Given the difficulty that users are likely to experience
in a hyperlinked environment, one would expect that nearly
all manufacturers would provide such a basic function. Such
neglect of basic user needs seems to reflect a lack of concern
or understanding of customers that would use the web site.
As with web site navigation, over half of the manufac-
turers incorporated product list buttons, product visuals,
news, and shareholder information. It is interesting to
observe how the manufacturers are using web sites not just
for communications with customers, but with many differ-
ent target audiences. Many of the web sites provide dir-
ection to potential employees (career) as well as buyers
(product list buttons). Rather than simply being a vehicle for
communicating with customers, manufacturers’ web sites
attempt to communicate with multiple audiences.
The key in the future will be the degree to which a
manufacturer’s web site effectively delivers desired
information to multiple audiences. One method of deliver-
ing effective information quickly is to provide features that
enable the user to freely explore the site. In other words,
should a company impose predetermined navigational paths,
such as product list buttons, or allow users to ‘‘free-fall’’
through a site? Free-falling allows users immediate access to
information through the use of comprehensive search
engines and intuitively organized site maps. While a web
savvy user may prefer ‘‘free-fall,’’ a less experienced web
user or ‘‘newbie’’ may need and prefer predetermined paths.
Experienced users are likely to have the ability and vocabu-
lary to use keyword searches effectively, while a newbie
may need information organized for him or her to effec-
tively utilize a web site. The smart manufacturer must
determine which type is the predominant audience for its
web site and design accordingly.
While we have tried to identify both the commonly used
and infrequently used web site promotional activities, we
also found differences between groups of manufacturers.
Larger manufacturers (based on revenue and net income)
engaged in significantly more web-specific and public
relations activities than smaller manufacturers. If we con-
sider larger manufacturers more successful than smaller
manufacturers, then larger manufacturers would be more
inclined to communicate that success to the investors, the
community at large, and customers. Having greater financial
resources at their disposal, larger manufacturers are likely to
be more eager and able to develop web-specific features.
As we expected, firms with a greater R&D to sales ratio
(R&D intensity) utilized web-specific components more
than firms with a lower ratio. We recognize that the ratio
is a general proxy for technological proclivity and is not
specific to Internet technology. Nonetheless, the R&D ratio
seems to be indicative of some latent characteristics that
drives technology-related marketing activities.
Similarly, R&D intensity was positively related to the use
of product- and company-specific information. Returns on
R&D investments can be long-term and tenuous, thus such
firms may have a greater desire to maintain a positive
corporate image with potential customers and shareholders.
In a similar manner, firms that invest a greater relative
amount in R&D may be eager to communicate the outputs
of R&D, one of which is product innovations. Thus, web
sites provide the ability to quickly and easily communicate
volumes of product- and company-specific information to
‘‘show off’’ products and reinforce the need for relatively
high levels of R&D expenses.
Surprisingly, the use of online ordering did not differ for
manufacturers based on sales, inventory turnover, or R&D
intensity. Although anticipated, we did not observe greater
use of online ordering for manufacturers that were larger
(sales), better at managing inventory (higher inventory
turnover), or had relatively larger investment in R&D. The
effectiveness of online ordering often requires substantial
changes to order fulfillment procedures and processes and
technological know-how. However, we did not have a
measure of effectiveness, we simply measured whether or
not a firm engaged in online ordering. While we would
expect that the decision to engage in online ordering would
be affected by a firm’s belief in its effectiveness, that may
not be the case. A plausible explanation for our results is
that the motivations for online ordering are made irrespect-
ive of the inherent competencies of the manufacturers.
Interestingly, we did not find significant industry differ-
ences in the use of five of the nine web site components.
The results suggest that there are some basic uses of web
sites that are relevant regardless of the differences in
industry-specific characteristics. The use of advertising
represents such a basic marketing tool in the offline envir-
 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144
onment that we expect nearly every firm regardless of
industry to engage in some type of advertising. In parallel,
it seems that advertising, public relations and investor
relations are perceived as basic marketing tools in the online
environment regardless of industry.
However, we did find significant industry differences in
other categories, such as place and price information and
sales promotion. While some marketing components may
transcend industries, others may provide the chance for
differentiation. A firm within a particular industry may be
able to successfully differentiate itself through aggressive
use of components that competitors use infrequently. Sim-
ilarly, in identifying the potential capabilities of web sites as
a marketing communication medium, it is critical to look
outside one’s own industry to identify potential web site
marketing uses. Industry myopia with respect to web site
marketing communications may be detrimental.
6. Conclusion
The implications of our study of Fortune 500 manufac-
turer web sites are twofold. First, few manufacturers use the
full complement of marketing communication activities on
their corporate web sites. A small percentage of the many
possible marketing communication activities are currently
being used. The importance of fully utilizing web site
features becomes more important as more business people
use the Internet. Being able to use a comprehensive and
integrated marketing communications web site strategy to
differentiate yourself from your competitors will become a
necessity as more and more manufacturers use web sites to
try and foster relationships with customers. The successful
manufacturer will need to use all the strengths of the
medium to beat the competition in attracting and maintain-
ing customers.
Second, the use of different components of web site
marketing communications is fairly consistent across man-
ufacturers regardless of sales, net income, and R&D intens-
ity. Only a few web site components, such as web-specific
functions and public relations information, differ between
smaller and larger manufacturers. Within the range of man-
ufacturers observed, it does not appear that innovative use of
web sites is dependent on the size of the manufacturer.
Two, somewhat competing conclusions can be drawn
from our results. On the one hand, aggressive and forward-
thinking manufacturers, regardless of size, may have a
considerable opportunity to outmaneuver the competition
by developing a comprehensive and well-integrated market-
ing communications strategy via their web site. On the other
hand, predicting what competitors will offer on their web
sites becomes more difficult. While competitors’ sales,
R&D, and income data is relatively easy to acquire (e.g.,
CompuStat), such characteristics are not useful in predicting
what competitors are likely to use on their web sites. As a
result, a manufacturer may have to expend considerably
143
more effort to predict and monitor how both large and small
competitors will use their web sites.
7. Future research
The focus of our study has been to make an important
first step in characterizing the use of manufacturers’ web
sites for marketing communication. We believe Internet
marketing communication strategy possesses considerable
potential to advance the field of marketing research and
practice. Further research along three dimensions would
extend our research and benefit the emerging field of
Internet marketing.
First, we recommend developing a multifaceted measure
of R&D and investigating the correspondence between
R&D and marketing. Further examination of the impact
of R&D on Internet marketing practice might reflect spe-
cific R&D investments relating to process innovations rather
than product innovations. Measurements of process R&D
investments could be further refined to reflect information
technology-related R&D and other types of applied R&D.
In addition, the wealth of existing research on the interface
between R&D and marketing could be adapted to help
assess the effects on Internet marketing activities.
A second potentially fruitful area for further research
involves collecting firm-specific data on extranet and EDI
penetration to illustrate how the absence or existence of
buyer – supplier relationships affects Internet marketing
communications. Perhaps, manufacturers with greater
investment in extranets and EDI perceive online ordering
via the Internet as a threat to maintaining exit barriers for
existing customers. Conversely, manufacturers with less
investment in extranets and EDI may perceive online order-
ing as an opportunity to gain competitive advantage. While
seemingly straightforward, environmental variables such as
industry concentration and customer heterogeneity may
moderate the relationship between existing investments in
competing technologies and Internet marketing activities.
Lastly, while our analysis provides a description of what
manufacturers use on their web sites, we do not address the
use or effectiveness of web site marketing communications.
Observational data on users’ actual behavior is available
with server log data. Clickstream analysis of server log data
could be an initial gauge of the effectiveness of particular
types of marketing communications. For example, while
almost all manufacturers offer ‘‘About Us’’ information, we
suspect that few users have any interest in such information.
Through analysis of such clickstream analysis both practi-
tioners and researchers could begin to tie specific marketing
communications activities to web site effectiveness.
The relatively young field of Internet marketing presents
researchers with an exciting opportunity to offer understand-
ing and substantial guidance for marketing practitioners.
Future research will be well served if it can combine the
existing marketing knowledge base with an in-depth appre-
144 M. Perry, C.D. Bodkin / Industrial Marketing Management 31 (2002) 133–144
ciation and understanding of the opportunities presented by
Internet technology.
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