Lecture 05: Key Account Management PDF
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Uploaded by SeasonedIridium
MAPS College
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Summary
This lecture presentation covers Key Account Management practices, including strategies for selecting, managing, and building relationships with key accounts, as well as the advantages and disadvantages from both buyer and seller perspectives. The document is likely a college lecture or seminar.
Full Transcript
Selling and Sales Management Lecture 05: Key Account Management Learning Objectives 1) Understand what key accounts are and how they are selected 2) Understand how a key account is managed through its development 3) Know how is relationship selling done in practice What Is Key Account...
Selling and Sales Management Lecture 05: Key Account Management Learning Objectives 1) Understand what key accounts are and how they are selected 2) Understand how a key account is managed through its development 3) Know how is relationship selling done in practice What Is Key Account Management? A strategy used by suppliers to target and serve high potential customers with complex needs by providing them with special treatment in the areas of marketing, administration and service Features of Key Special Treatment of Account Managemen Major Customers t Dedicated Key Account Managers Multi Functional Effort Advantages of Key Account Management - Sellers Close working relationship with customer Better follow-up on sales and services More in-depth penetration Higher sales Opportunity for advancement for career salespeople Lower costs Dangers of Key Account Management - Sellers Risk of increase dependence Risk of pressure on profits margin Demands of higher levels of service Neglecting on small accounts Advantages of Key Account Management - Improved service Customers Improve communication and co- ordination Improve terms Avoidance of switching costs Customized offerings Integrated systems Dangers of Key Account Management - Customers Over-reliance on one or few sellers Seller complacency (unsatisfactory relationship) over a long period of time Criteria for Selecting Key Accounts High growth prospect accounts (market share, position) Willingness of customers to be partners in innovation Early adopters Prestigious accounts Competitor accounts High contribution to the supplier’s profits Tasks and Skills of KAM Traditional (Bow-Tie) Buyer-Seller Relationship KA (Diamond) based Relationship KAM Relational Development Model Early KAM Mid-KAM Partnership- Synergistic- KAM KAM Convince of Trust Buyer benefits Supplier as established importa seller seen and Identify Exploring nt as one the opportuniti strategi large potential es for c entity accounts closer resourc Costing etc collaborati e becomes ons Share more sensitive transparent informati on ANY QUESTIONS? Questions 1. What is Key Account Management ? 2. Why Key Account Management is important ? 3. What tasks a Key Account Manager undertakes and what key skills required of a Key Account Manager to undertake those tasks? 4. From a Customer Perspective critically evaluate being a Key Account. 5. From a Seller perspective critically evaluate why we should consider or not consider the concept of Key Account Management. 6. How would you evaluate a customer as a Key Account Customer ?
