In sales and marketing to businesses, perceived risk is an important element to consider. This video explains five types of perceived risk that must be considered.
- What is monetary risk and how can it be reduced for a potential customer?
- What is functional risk and what steps can the seller take to reduce it?
- What is physical risk and why is it important?
- What is social risk and why is it important?
- What is psychological risk and how can it be reduced for a potential customer?
Hyatt launched a new campaign aimed at business travelers. Instead of focusing on amenities such as WiFi, free breakfast, and comfortable beds, this new campaign uses an emotional approach.
- What are your thoughts about this new approach?
- Do think this new campaign is a better approach than focusing on amenities? Why or why not?
- What are your thoughts about the TV ad?
- For what types of business travelers will this ad be effective? Explain why.
I thought this video B2B Marketing Strategies by Gordon Andrew was well done and would fit well with Chapter 5, which many students have difficulty understanding.
- What is the difference between extrinsic selling and intrinsic selling? Why is intrinsic selling more powerful?
- Why is it important for a b-to-b firm to have top-of-mind awareness? How can this be accomplished?
- Should b-to-b firms invest in a social media strategy? Why or why not?
- If a firm invests in social media, how must it be done?
Business-to-business marketing is difficult for most students to comprehend. These videos cover some of the major topics presented in the chapter and can be used to supplement the text.
Most students have a difficult time understanding business-to-business marketing. One approach may be to have them watch one of the following videos on how Pringles, Coca-Cola, or alloy wheels are made then answer the following questions. They should have the questions as they watch the video in order to take notes.
- Review the types of business goods and services used in business-to-business, Section 5-2. As you watch the video, make a list of goods and services used in making the product. Be sure to put each item you list in the correct category.
- For each item in your list, identify whether it a purchase would be a new buy, modified rebuy, or straight rebuy. Explain your choice.
- Pick one of the items in your list. Discuss the concept of the buying center and identify who might fulfill each of the roles.
- Using the item you identified in Question 3, discuss the personality traits that might play a role in the purchase process.
- If you were the seller of the item you identified in Questions 3 and 4, which member of the buying center would you target with a marketing message? Why? What type of message would you offer that would get them to consider your company as potential vendor?