Key account management
Definition of key account management
Link between marketing and sales

Analysis and strategy
Custom...
Key account management cont.
•

Appropriateness of key account
management
Key account management cont.
•

Developing a key account management
plan
 Selecting key accounts
 Building strategic rel...
Key account management cont.
•

Key account screening process
 Similar to the GE matrix
•

Customer attractiveness measures
•

Supplier importance measures
 Measuring the degree of importance of the purchase from
the customer’s viewpoint (B2B)
•

Supplier importance measures
 The assessment of the supplier’s strength with the buyer can
be used to calculate compet...
•

Building key customer relationships
 Developing business trust
 emotional investment
 attitudinal investment
 compe...
•

Entry and exit barriers
 Tactics used to develop entry and exit barriers
•

Developing business plans for key customers
 Situation analysis
 the customer
 the competition
 the supply firm

 ...
•

Developing business plans for key customers
 Action plan

 This is an operational plan of how the key strategy will b...
•

Developing business plans for key customers
 Profitability statement
 Standard financial statements – indirect costs
...
•

Key account management skills






trusted partner
team leader
negotiator
pro-active agent for change
financial e...
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Key acc

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Key acc

  1. 1. Key account management Definition of key account management Link between marketing and sales Analysis and strategy Customer collaboration
  2. 2. Key account management cont. • Appropriateness of key account management
  3. 3. Key account management cont. • Developing a key account management plan  Selecting key accounts  Building strategic relationships with key customers  Developing business strategies for key customers
  4. 4. Key account management cont. • Key account screening process  Similar to the GE matrix
  5. 5. • Customer attractiveness measures
  6. 6. • Supplier importance measures  Measuring the degree of importance of the purchase from the customer’s viewpoint (B2B)
  7. 7. • Supplier importance measures  The assessment of the supplier’s strength with the buyer can be used to calculate competitive strength as well as establish an idea of the supplier’s bargaining strength with a particular account.
  8. 8. • Building key customer relationships  Developing business trust  emotional investment  attitudinal investment  competitive supply priority as share of business
  9. 9. • Entry and exit barriers  Tactics used to develop entry and exit barriers
  10. 10. • Developing business plans for key customers  Situation analysis  the customer  the competition  the supply firm  Strategic options  Develop a list of options.  Prioritise the list.  Assess the top priorities against the following criteria:  probability of successful outcome – risk assessment  impact on the business and the relationship  cost of implementation
  11. 11. • Developing business plans for key customers  Action plan  This is an operational plan of how the key strategy will be implemented on a daily basis.  Action plans are specific and mostly include scheduling and staff allocations as well as a way of measuring their effect.  Some action plans also include contingency options to cover      • unexpected developments disasters and accidents surprises in the industry or competitive environment sudden advances in technology events such as political elections where the result is not currently known but will possibly affect the industry Contingency plans provide ready-to-go decisions when time is critical
  12. 12. • Developing business plans for key customers  Profitability statement  Standard financial statements – indirect costs  Activity-based financial reporting – includes a rigorous measurement of all costs relating to sales, promotion and administration
  13. 13. • Key account management skills      trusted partner team leader negotiator pro-active agent for change financial expert
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