Relationship marketing and key account management

SAGE Reference - Relationship Marketing and Key Account Management

relationship marketing and key account management

relationships. •. Foci for key account managers change contingent on what their objective is with a specific key account. Relationship marketing. Qualitative. Gounaris, S & Tzempelikos, N , 'Key account management effectiveness – a pilot relationship marketing perspective' 36th EMAC Annual Conference business customers. Relationships between key account managers and their customers are intended ture on relationship marketing (Biong and Seines.

The trend is to move responsibility for the major key accounts to the global level. An account manager who works in this role will engage in a variety of tasks including project managementcoordination, strategic planningrelationship managementnegotiation, leadership and innovative development of opportunities, [5] and keeping record of transaction of sale and purchase goods. The tasks may include working with product design and application, logisticssales support, and marketing.

Key account management models[ edit ] The basic assumption for a key account management model is the correct classification of the key accounts. A basic model often used in the period of was the classification model of Webster.

This model has been adapted by Milman and Wilson into a two-dimensional model and was paramount in the period of Bensaou has tested this model empirically by his research of carmakers in the United States and Japan and made revisions.

relationship marketing and key account management

De Blick synthesized the adaptations into the 4S-model, a key account classification model. Typical employers can be: Direct marketing consultancies and agencies Marketing departments Major commercial organizations Account managers usually work in an office setting and can work more than 40 hours weekly.

Travel is usually included in the job description. National or global account managers will very likely experience extra travel. The focus is on building profitable long-term business relationships.

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A key account is represented by a person or a group of people to which your business has built more than a standard business relationship. There is a high degree of trust and accountability between the two organisations. Key accounts require special treatment due to their key role in the success of your business. In simple terms, key accounts are customers the organisation cannot afford to lose!

It is widely believed in the field of marketing that KAM means far more than just selling products to big customers.

relationship marketing and key account management

It revolves around how the customers who play a strategic role in the growth of an organisation are handled. The issue is no longer about a supplier and a customer. The relationship is much deeper than that. In KAM, the survival of both organisations depends on the solid relationship between the two organisations. In this relationship, a lot of confidential information is shared that would ordinarily not be shared with any other stakeholder.

Cost build-ups and strategic direction are known by the partners though they are governed by strict confidentiality agreements.

Key Account Management and Quality in Business-to-Business Relationships

In view of the fact that KAM by its nature is strategic, it therefore follows that senior management — including the top most executive in the organisation — are an integral part of the process. The main reason why KAM is becoming a buzz word, is that big customers are getting bigger, therefore, they require special attention and focus.

These customers need to be given customised service. The second reason is that some organisations are rationalising their supplier base. The third reason is that customers have become more sophisticated.

relationship marketing and key account management

Because of this, they require sophisticated and tailor-made service. They require close attention and special focus. Far-sighted organisations have even gone to the point of appointing key accounts managers. The fourth reason is that some customers want tailor-made solutions. They demand a service level that is unique to them. Through this strategy you increase customer loyalty, retention and advocacy!

The fifth reason is that because of globalisation and the ease with which information can be obtained these days, customers are now more demanding.

What is Key Account Management?

Imagine in the automotive industry, where a sales manager is trying to introduce a new brand to a potential customer! One needs to go beyond the issue of features and benefits! In fact, in this example, the product goes beyond the physical product to include after-sales support. How do you categorise your customer base?

As explained, the starting point is the Pareto Principle. This is a two-way street with the customer being given more time to articulate their concerns and expectations. The key account manager needs to be a good listener.

relationship marketing and key account management

Issues to look at include turnover, profitability, value-added and potential. With the latter, you need to be far-sighted i.