Key Account Management - Diana Woodburn - E-Book

Key Account Management E-Book

Diana Woodburn

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Beschreibung

"This book is crammed with distilled, practical wisdom for key account managers and their directors. Organizations claiming to practise key account management should equip everyone involved with a copy, so they really understand what they are supposed to be doing. Anything less is just old-fashioned selling."

Developing successful business-to-business relationships with more customers in highly competitive markets requires processes and skills that go beyond traditional selling activity. The very best state-of-the-art strategies are set out clearly in this book by intentionally known authors who have worked at the highest levels with more key and strategic account managers worldwide than probably any other leading advisors. Based on the hugely influential KEY CUSTOMERS it looks at:

  • Why has account management become so critical to commercial success?
  • What are the key challenges and how do successful companies respond?
  • What part does key account management play in strategic planning?
  • How do companies build profitable relationships with their customers?
  • How does key account management actually work?
  • What does a successful key account manager look like and what skills does he/she need?
  • How should key account managers be evaluated and rewarded?
  • How do companies achieve key account management? 

By addressing these key questions Woodburn and McDonald provide tools and processes for success honed by tough consultancy projects with the boards of some of the world's leading companies. The book stresses the elements that really matter - from developing a customer categorization system that really works and analyzing the needs of key accounts; to understanding the new skills required by key account managers and ensuring that key account plans are implemented. The 'real world' approach is backed by tested principles and the latest research from the renowned Cranfield School of Management.

Key Account Management comes from authors who have taught leading companies how to approach their most powerful and demanding customers and still make money. It is essential reading for all senior management with strategic responsibility, for key or strategic account directors, and for marketing and sales executives. The clear and authoritative approach also makes it an outstanding text for the serious MBA and executive student as well as business-to-business company directors and key account managers.

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Contents

Cover

Title Page

Copyright

Foreword

Acknowledgements

The Purpose of This Book

Before You Read This Book!

1. How Well Developed is Key Account Management in Your Organization?

2. How Well Do You Know Your Key Accounts?

List of Figures and Tables

Figures

Tables

Chapter 1: The Crucial Role of Key Account Management

Introduction

1.1 Pressures that have Led to Growth in Customer Power

1.2 Why Understanding Relationships is so Important

1.3 Increasing Complexity of Key Account Relationships

Chapter 2: Selecting and Categorizing Key Customers

Introduction

2.1 Why is Choosing the Right Customers so Important?

2.2 Selection Criteria

2.3 Categorizing Key Customers

Chapter 3: Relationship Stages

Introduction

3.1 Understanding Key Relationships

3.2 Stages in Key Relationships

Chapter 4: Developing Key Relationships

Introduction

4.1 The Customer's Point of View

4.2 Developing Relationships

4.3 Managing Relationships

Chapter 5: The Buyer Perspective

Introduction

5.1 The Purchasing Context

5.2 Buying Company Strategies

5.3 Balance of Power

Chapter 6: Key Account Profitability

Introduction

6.1 Profitability in the Context of Key Accounts

6.2 Valuing Key Accounts

Chapter 7: Key Account Analysis

Introduction

7.1 Market Segmentation and Key Account Management

7.2 Key Account Analysis

7.3 Next Steps

Chapter 8: Planning for Key Accounts

Introduction

8.1 Strategic Marketing Planning

8.2 Key Account Planning

8.3 Developing a Strategic Marketing Plan for Key Accounts

Chapter 9: Processes – Making Key Account Management Work

Introduction

9.1 The Role of Processes in Implementing Key Account Management

9.2 Key Account Management Implementation Processes

Chapter 10: The Role and Requirements of Key Account Managers

Introduction

10.1 Roles

10.2 Key Account Management Teams

10.3 Requirements of Key Account Managers

Chapter 11: Performance and Rewards in KAM

Introduction

11.1 What is Performance in KAM?

11.2 Operating a Reward Scheme

11.3 Designing a Reward Scheme

Chapter 12: Organizing for Key Account Management

Introduction

12.1 Drivers of Organizational Structure

12.2 Organizational Structures and Their Implications

Chapter 13: Transitioning to KAM

Introduction

13.1 Ready to Change

13.2 The Early Stages

13.3 Continuing and Developing KAM

Further Reading

General

Chapter 1: The crucial Role of Key Account Management

Chapter 2: Selecting and Categorizing Key Customers

Chapter 3: Relationship Stages

Chapter 4: Developing Key Relationships

Chapter 5: The Buyer Perspective

Chapter 6: Key Account Profitability

Chapter 7: Key Account Analysis

Chapter 8: Planning for Key Accounts

Chapter 9: Achieving with Processes

Chapter 10: The Role and Requirements of Key Account Managers

Chapter 11: Rewards and Performance in Key Account Management

Chapter 12: Organizing for Key Account Management

Chapter 13: Transitioning to Key Account Management

Integrated Fast Track

Chapter 1 The Crucial Role of Key Account Management

Chapter 2 Selecting and Categorizing Key Customers

Chapter 3 Relationship Stages

Chapter 4 Developing Key Relationships

Chapter 5 The Buyer Perspective

Chapter 6 Key Account Profitability

Chapter 7 Key Account Analysis

Chapter 8 Planning for Key Accounts

Chapter 9 Processes – Making Key Account Management Work

Chapter 10 The Role and Requirements of Key Account Managers

Chapter 11 Performance and Rewards in KAM

Chapter 12 Organizing for Key Account Management

Chapter 13 Transitioning to KAM

Mini-Cases

Case 1 – Diversification Dilemma

Case 2 – Taking a Key Account for Granted

Case 3 – Demanding Flexibility

Case 4 – Learning to Look a Gift Horse in the Mouth

Case 5 – A Family Feud

Case 6 – Practise What You Preach

Case 7 – Jealous Partners

Case 8 – Healing Wounds

Case 9 – Pride Comes Before a Fall

Case 10 – Going Global

Case 11 – The Power of Persistence

Case 12 – The Frustrations of a ‘Basic’ Relationship

Case 13 – Surviving Market Testing

Case 14 – Disaster Recovery

Case 15 – Promise Unfulfilled

Case 16 – Parochial Pains

Case 17 – Driving Change

Case 18 – Homework Failure

Case Study 19 – Telling Isn't Selling

Case 20 – Turf Wars

Case 21 – Plunging into the Unknown

Index

This edition first published in 2011

Copyright © 2011 Diana Woodburn and Malcolm McDonald

Registered office

John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom

For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com

The right of the author to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.

Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional should be sought.

Library of Congress Cataloging-in-Publication Data

McDonald, Malcolm.

Key account management : the definitive guide / Malcolm McDonald, Diana Woodburn. — 3rd ed.

p. cm.

Includes bibliographical references and index.

ISBN 978-0-470-97415-5 (pbk.)

1. Selling—Key accounts. 2. Marketing—Key accounts. I. Woodburn, Diana. II. Title.

HF5438.8.K48M35 2011

658.8′04—dc22

2010045341

ISBN 978-0-470-97415-5 (paperback), ISBN 978-0-470-97475-9 (ebk),

ISBN 978-0-470-97473-5 (ebk), ISBN 978-0-470-97472-8 (ebk)

A catalogue record for this book is available from the British Library.

Foreword

I find it truly amazing that it is only in the past decade that key account management (KAM) has emerged as a major discipline in its own right. Even more surprising is that most business schools resolutely refuse to include it in their curriculum, preferring to stick with the perennial four ‘Ps of marketing’, which, while still relevant, are totally dependent on getting the strategy right for the new breed of powerful, global customers, who now demand seamless service from their suppliers in every country of the world where they operate.

Cranfield is a shining exception to the rule. In 1996 the first structured research was done on best practice key account management under the leadership of Professor Malcolm McDonald and Diana Woodburn. The current KAM Best Practice Research Club is a sophisticated extension of those exciting, earlier forays into best practice key account management.

The implications for suppliers of the enormous power of buyers today are felt across the entire corporate spectrum, and after a decade of research at Cranfield, we can now truly say that instigating best practice key account management implies a substantial programme of change management and simply cannot be achieved by tinkering with the salesforce.

The sequence of events is as follows:

1. Select the correct accounts to be included in the key account programme.
2. Categorize them according to their potential for helping us to grow our profits continuously.
3. Analyse their needs.
4. Develop strategic plans for and with each of them.
5. Get buy-in from all functions about their role in delivering the agreed value propositions. This involves IT, manufacturing, logistics, HR, finance, operations and R&D. This way, these functions will be customer-driven.
6. Get the right organization structure to serve the selected key accounts’ needs.
7. Get the right people and skill sets in the key account team.
8. Implement the plans on an annual basis.
9. Measure the success of the plans, particularly in respect of whether they create shareholder value added.
10. Reward individuals and teams for their success.

Malcolm McDonald and Diana Woodburn have done a remarkable job in capturing all their research and practical experience in this excellent book and I commend it to you.

Martin LambChief ExecutiveIMI plc

Acknowledgements

We are extremely grateful to Beth Rogers, now of Portsmouth Business School, who for many years helped us with our research and our thinking. Her part in earlier versions of this book, and particularly for the mini-cases for practical learning, was invaluable. We would like to acknowledge the contribution of Professor Tony Millman on the original key account management research report, back in 1996. Special thanks are due to him for his enthusiasm for the topic. His previous work, and that of Dr Kevin Wilson, was invaluable in creating frameworks for understanding the development of supplier/customer relationships.

Our thanks are due to other colleagues for their help and support: particularly to Dr Sue Holt, for allowing us to include some of her research; to Professor Nigel Piercy of Warwick Business School, for stimulating our thinking on several topics; to Dr Nikala Lane for her contribution to the section on teams; and to Professor Lynette Ryals for her overall support. Huge thanks are due to Steve Doubleday and Peter Mouncey for their major contribution to the editing process. We should certainly not forget our spouses for their endless forbearance during the writing process.

Lastly, too numerous to mention individually, are all the practitioners and their companies who have helped to develop our understanding of key account management, shape our thinking and validate our ideas: through the Cranfield KAM Best Practice Research Club, its focus syndicates and other practitioner forums, through participation in research and in KAM development consultancy projects, and through help with the case study insights distributed throughout the book.

The Purpose of This Book

To help the time-starved reader, we have started each chapter with a ‘Fast Track’ for those who want a rapid reprise of the content before you delve deeper into the chapter or, indeed, skip to another chapter that contains material relating to your immediate priority. All the Fast Tracks have been compiled into one integrated section at the end of the book, so you can start or finish with the complete helicopter overview.

As this is a book designed for thinking practitioners, we have avoided filling the text with academic references, but we have added a list of items for further reading around each chapter, included at the end of the book.

The expression ‘caveat emptor’ (beware buyer) has been turned completely on its head during the past 10 years, so that ‘caveat vendor’ (beware seller) is now the norm. Customer power, particularly in oversupplied Western economies, is here to stay, hence the growing importance of key account management as a topic on the agendas of all companies, big or small.

This book represents state-of-the-art best practice, based on a decade of in-depth research into global best practice key account management from both supplier and customer perspectives, which has shown that, among other findings:

Key account management is a strategic approach distinguishable from account management or key account selling. It should be used to ensure the long-term development and retention of strategic customers.Key account management is high profile, but difficult to do well.Key account management is appropriate to several types of relationships, but is most clearly manifest when supplier and customer have a mutually recognized partnership and a degree of trust.There are often mismatches between the way suppliers and customers perceive each other and their relationship, so careful communication and vigilance are vital.Regular monitoring of the profitability of individual customers by suppliers provides crucial information, but is quite rare because customer profitability is difficult to measure.Key account managers need a broad portfolio of business management skills to deal with interdependent or integrated customer relationships.Key account management has structural implications for selling companies. Interdependence and integration can only be achieved where the key account manager has a considerable degree of control over resources and decision making.

This book proposes ways of dealing with these findings, taking the reader to a level whereby he/she can implement solutions. It is intended to help key account strategists and key account managers to capture and develop a scientific basis for their company's practice. The scope of key account management is widening and it is becoming more complex. For key account management to be successfully implemented, there is an urgent need to develop reliable diagnostic tools and measures of performance that support strategic marketing decisions. The skills of professionals involved in key account management at strategic and operational levels need to be constantly updated and developed. So this book demonstrates how key account management can be implemented, and describes the elements of best practice that can be adopted by all types and sizes of organization.

Chapter 1: The Crucial Role of Key Account Management

This chapter sets key account management in the context of a dramatically changing business environment where increasingly complex relationships have altered the nature of marketing, and imposed an urgent need for greater understanding and more appropriate treatment of key relationships.

Chapter 2: Selecting and Categorizing Key Customers

We explain how to select and categorize the most appropriate accounts to target for key account management, which arguably means that this chapter is the most important in the whole book. Your KAM programme can be fatally flawed by making the wrong decisions at this stage.

Chapter 3: Relationship Stages

There is a clear hierarchy of key account relationships increasing in complexity and intimacy with the customer. Understanding where you are is crucial to adopting the right behaviour towards the customer.

Chapter 4: Developing Key Relationships

Important relationships should not be left to develop on their own. Application of the right tools and techniques can help you get to the level to which you aspire with more speed and confidence.

Chapter 5: The Buyer Perspective

Needless to say, buyers have their own view of key supplier relationships, and not necessarily the one the supplier would like. Ignorance of their perspective leads to complacency, inertia and disappointment, so understanding it is mandatory, however unwelcome.

Chapter 6: Key Account Profitability

Profitability belongs to customers much more than to products. Since customers and customer behaviour cause cost as well as revenue, real customer profitability must be measured. It is not easy but, again, ignorance is foolhardy.

Chapter 7: Key Account Analysis

This chapter examines how to analyse key accounts in order to establish and prioritize their needs.

Chapter 8: Planning for Key Accounts

We introduce the processes for and the tools and techniques of key account planning. We describe how to set objectives and strategies for each targeted key account, and how to measure their profitability.

Chapter 9: Processes – Making Key Account Management Work

While key account plans are intrinsic to key account management, a plan is only a plan until it is implemented. Most companies’ processes are not set up to deliver the promises of key account management but, like many initiatives, the devil is in the implementation.

Chapter 10: The Role and Requirements of Key Account Managers

Key account managers can fulfil one of four roles in managing the customer relationship, which, depending on the complexity of the relationship, may or may not involve leading a dedicated team. Each role has its own set of competences and attributes which should be understood in matching the right key account manager with each key account.

Chapter 11: Rewards and Performance in Key Account Management

KAM is designed to improve or at least maintain performance with challenging customers. This chapter gets to grips with what performance means in KAM, at the level of individual key accounts, the whole key account portfolio, and the key account manager. Most companies are determined, rightly or wrongly, to give rewards as incentives for good performance, but seek assistance on how to structure a rewards scheme and what kind of reward to offer.

Chapter 12: Organizing for Key Account Management

There is no perfect structure for key account management as it is essentially a cross-boundary activity, though some structures are less KAM-friendly than others. This chapter looks at how key account management can be positioned in the organization and some of the issues that arise.

Chapter 13: Transitioning to Key Account Management

The rest of the book reflects best practice KAM, but this chapter charts the journey to achieve it from the beginning. KAM is a cultural change as well as a business initiative, and a long haul, not to be undertaken lightly. Following the four-phase route that other suppliers have used will help to anticipate issues and prepare solutions for them.

Innumerable tomes have been written about the importance of customer focus and getting close to customers. There can be no closer focus than ‘the segment of one’. While all customers are important, there is a danger in spreading scarce resources too thinly and achieving little of the real intimacy required by those few customers who can help us make significant progress towards our long-term objectives. The dilemma, then, is which customers to include in the key account management programme.

The growing complexity of business-to-business markets, which are in a state of metamorphosis from chains of value to integrated recipes of value, presents a great challenge.

All the indications are that in business-to-business marketing, key account management is not so much an option, but a customer expectation.

This book is designed to provide a route through this most difficult of terrains. It is a route map that has emerged from the authors’ extensive research into the practice of global key account management with some of the world's leading companies. Although there is still much to learn, we believe readers will find this book representative of the very best of best practice.

Diana WoodburnProfessor Malcolm McDonaldMarketing Best Practice

Before You Read This Book!

Just to give you an idea of your start point, try completing the two questionnaires below before you read further. The first questionnaire is designed to establish the current position of your organization on key account management, overall and on the 10 fundamental requirements of a successful KAM programme. The score profile will show you areas of existing strength and areas in need of serious attention. Try it with other people in your organization and see if they hold the same view.

The second questionnaire is aimed at your individual position, since most readers of this book will have had at least some experience of managing key accounts. Be as honest as you can – no one is looking!

Come back to this page after you finish reading the book and repeat the questionnaires. Your view may change as you learn more about what key account management really means, in practice, and your personal scores may change too, if you have picked up some of the ideas in the book and implemented them.

1. How Well Developed is Key Account Management in Your Organization?

Score out of 10: 0 = not at all; 10 = best practice.

Does KAM in your organization have:Before reading the bookAfter reading the bookA role in achieving the strategic vision?High profile support from senior management?Buy-in from appropriate organizational framework including teams?Careful selection of appropriate customers?Deep understanding of key customers and their strategies?Well-grounded, analysis-based customer plans?Customized offers, service or costs?Excellent, well-rounded key account managers?Excellent communications?Supportive, effective, dependable processes?Total

2. How Well Do You Know Your Key Accounts?

Score out of 10: 0 = not at all; 10 = best practice.

Do you know:Before reading the bookAfter reading the bookYour key customer's segments/products and how you add value to them?The customer's strategic plan?The customer's financial health (ratios, etc.)?The customer's business processes (logistics, purchasing, production, etc.)What the customer values/needs from its suppliers?Your company's proportion of the customer's spend?Which of your competitors the customer uses, why, and how it rates them?How much attributable (interface) costs should be allocated to your customer?The real profitability of the account?How long it takes to make a profit on a major new customer?Total

List of Figures and Tables

Figures

1.1 The value chain

1.2 Internal value chain: service companies

1.3 The product/market lifecycle and market characteristics

1.4 Concentration of buying power in industries

1.5 Cost of servicing the customer

1.6 Evolution of market maturity

1.7 The relationship as a medium

1.8 Relationship closeness versus relationship success

2.1 Key account numbers

2.2 The importance of defining the customer clearly

2.3 Three types of selection criteria

2.4 Account attractiveness assessment for selection as a key customer

2.5 The key account selection matrix

2.6 One global customer's statement of its requirements of its suppliers

2.7 Relative business strength for comparative supplier evaluation

2.8 Reducing numbers of key customers

2.9 Unidimensional list versus multidimensional portfolio

2.10 Adding the customer dimension to project approval

3.1 The relationship perception gap

3.2 Hierarchy of key relationships

3.3 Needs of the individual compared with the needs of key relationships

3.4 Exploratory KAM relationship

3.5 Basic KAM relationship

3.6 Cooperative KAM relationship

3.7 Contact between selling and buying companies

3.8 Customer profitability and the relationship trap

3.9 Interdependent KAM relationship

3.10 Extent of information exchange between selling and buying companies

3.11 Integrated KAM relationship

4.1 Customer expectations of minimum levels of trust and relationship

4.2 Layers of understanding of the customer

4.3 Matching relationship level with key customer strategies

4.4 Customer organization chart overlaid with contact importance and relationship

4.5 Mapping team-based relationships

4.6 Intercompany relationship layers

4.7 Combining organization and individual levels in relationship-building strategies

4.8 Features of interdependent relationships

4.9 Mapping relationship links with the customer at different levels of management

4.10 Mapping relationship links at different levels of management

5.1 Business relationship network

5.2 Impact of cost savings on net profits

5.3 Progress of product development compared with commitment of final unit cost

5.4 Topics for information exchange in KAM relationships

5.5 The IMP model

5.6 Risks and risk reduction mechanisms

5.7 Buying company's strategy direction matrix

5.8 Supplier relationships as a source of business advantage

5.9 Strategic supplier criteria

5.10 Development of supply chain management

5.11 Buyer and supplier perceptions of relationships

5.12 Balance of power versus common interest

6.1 Financial risk and return

6.2 The route to sustainable competitive advantage (SCA)

6.3 Customer retention by segment (answers to a Cranfield questionnaire using an audience response system to guarantee anonymity. The question was ‘We measure customer retention by segment’)

6.4 Intangibles are the key driver of shareholder value

6.5 Customer profit contribution over time

6.6 Impact of customer retention rate on customer lifetime

6.7 The relationship development model

6.8 Financial risk versus business risk

6.9 A match between buyers and sellers

6.10 Mismatch between buyer (basic) and seller (integrated)

6.11 Mismatch between buyer (interdependent) and seller (basic)

6.12 Cranfield survey on key account profitability

6.13 The widening rift between profitable and unprofitable customers

6.14 A basic profitability model

6.15 How organizations build value from key accounts

6.16 Portfolio analysis – directional policy matrix

7.1 Example of a market map including the number of each customer type

7.2 Determining the presence of market segments

7.3 Market segmentation process

7.4 A four-box directional policy matrix

7.5 Business partnership process

7.6 Forces driving industry competition

7.7 Objectives analysis exercise (industry driving forces)

7.8 Annual report summary

7.9 Financial analysis

7.10 The value chain

7.11 Sources of differentiation in the value chain

7.12 Value chain analysis summary

7.13 Buying process for goods and services

7.14 Sales analysis and history

7.15 Competitive comparison and competitor strategy

7.16 Strategic marketing planning exercise – SWOT analysis

7.17 The applications portfolio

8.1 The relationship development model

8.2 The 10 steps in the strategic marketing planning process

8.3 Strategic and operational planning

8.4 The impact of effectiveness and efficiency on success

8.5 Tactical orientation

8.6 Strategic orientation

8.7 Hospital groups and key account managers

8.8 The planning hierarchy

8.9 Prioritizing and selecting segments

8.10 Portfolio analysis matrix

8.11 Delivery service levels versus cost of holding inventory

8.12 Results of a survey of orders over a defined period

8.13 Short-term (one-year) customer classification

8.14 Breakdown chart with high fixed costs

8.15 Breakdown chart with low fixed costs

9.1 A process as a series of steps

9.2 Audit framework for supplier processes

9.3 Layers of activity and processes

9.4 The key account manager's role by process component

9.5 Process data capture proforma

9.6 Strategic processes in key account management

9.7 Value-adding processes in key account management

9.8 Relationship development as a process

9.9 Critical steps in the business development process

9.10 Outline of a process for added-value customer projects

9.11 Operational processes

9.12 Lines of communication

9.13 Reasons to communicate

9.14 Planning communication

9.15 Developing a communication plan

10.1 The role of key account management internally and externally

10.2 Purchasing trends and supplier responses

10.3 Corresponding perspectives on the role of the key account manager

10.4 Link between customer relationship, roles and competencies

10.5 Linking roles to the key account strategy matrix

10.6 A model of an interdependent relationship

10.7 Cross-functional and sales teams in key account management

10.8 Success factors for key account teams

10.9 Example of how to allocate key account managers to customers

10.10 Roles and core competencies and attributes

10.11 Examples of KAMScope© feedback

11.1 The purpose of performance measurement at different levels in the company

11.2 Differences in performance of key accounts

11.3 The role of the strategic key account plan

11.4 Asset growth and yield

11.5 Drivers of behavioural performance

11.6 The customer element in performance

11.7 Factors linked to KAM model

11.8 Spectrum of approaches to incentivization

11.9 The strategic account plan as a three-way contract

12.1 Boundaries limiting key account management success

12.2 The interaction between different supplier and customer organizational structures

12.3 Matching local and global structures

12.4 Traditional country-based structure

12.5 Structure with dedicated, independent key account management unit

12.6 Compromise structure with designated lead key account manager

12.7 A supplier's portfolio of customers

12.8 Decision-making levels

12.9 Assessing opportunities

13.1 Drivers of KAM

13.2 Transitioning to KAM

13.3 Cross-functional key account teams

Tables

1.1 Responding to rapid change

1.2 Refining the process

1.3 Redefining the marketplace

1.4 Pleasing the customer

1.5 Coping with globalization

2.1 Characteristics of three types of categorization criteria

2.2 How to scale and score selection criteria: examples

3.1 Criteria-based qualification of a potential key account

3.2 Advantages and disadvantages of basic relationships

3.3 Causes of disintegrating relationships

3.4 Summary of development stage characteristics

4.1 Building relationships through developing specific features

5.1 Single company thinking versus extended enterprise thinking

5.2 Sources of power

6.1 Intangible assets acquired by Procter and Gamble when they bought Gillette for a total price of £31 billion

6.2 Example of market growth performance: InterTech's five-year performance

6.3 Example of market-based performance: InterTech's five-year market-based performance

6.4 Quality of profits

6.5 Performance of selected companies 1979–

6.6 Performance of sector leaders 1990–

6.7 Retention of customers by segment

6.8 Relationship risk factors

7.1 External audit

7.2 Internal audit

7.3 PEST analysis and market factors – external (opportunities and threats)

7.4 Internal factors (strengths and weaknesses)

7.5 Responsibility for financial expenditure

7.6 Buying influences by company size

8.1 Contents of a strategic marketing plan

8.2 KAM plan evaluation guidelines

10.1 The role of key account management

10.2 The role of the organization in key account management

10.3 Interpretation of success factors for key account teams

10.4 Practitioners’ view of the ideal breakdown of key account managers’ time

11.1 Summary of measurements of key account management

11.2 Measuring key account management input

11.3 Differences between performance as behaviour-based and results-based performance

11.4 Performance drivers

11.5 Checklist for change

11.6 Common reward strategies by KAM phase

11.7 Assessing a reward scheme

11.8 Checklist of rewards scheme application effects

12.1 Drivers of misaligned targets and their effects

13.1 Litmus test for KAM-ready customers

13.2 Account management versus KAM

13.3 Description of KAM

13.4 Comparison of incremental and step changes to KAM

13.5 Activity streams in KAM development

13.6 Phase A subphases in Scoping KAM

13.7 Phase B subphases in Introducing KAM

13.8 Phase C subphases in Embedding KAM

13.9 Litmus test for the organization

13.10 Litmus test for key account managers

13.11 Phase D subphases in Optimizing value

Chapter 1

The Crucial Role of Key Account Management

Fast Track
For over 15 years, the authors have been researching global best practice in the domain of account management, sponsored by many of the world's leading companies. The following topics in particular have been the focus of our research:
Key account selection: Only a few selected customers can be included in the key account programme.Classification of key accounts: Derogatory labels like A, B, C, or gold, silver, bronze should be avoided at all cost.Key account profitability: The power of customers and their increased purchasing power has led to greater demands on the services of their suppliers. Unfortunately, many traditional accounting systems are incapable of accurately capturing all of the associated costs of dealing with major customers. Consequently, many suppliers are acting in ignorance of which customers make or lose them money.Key account needs analysis: A deep understanding of the customer's business is essential to success.Strategic planning for key accounts: Just as a three- to five-year strategy is essential for any business, so strategic plans for selected customers, signed off by the customers themselves, are also critical to success.Roles and skills of key account managers: Selling and negotiation skills are no longer sufficient on their own.Other issues: Information technology, organization structure and internal marketing all contribute to creating successful key account programmes.
The challenges that all organizations face today are:
Market maturity: In most sectors, mature markets have transferred power from suppliers to customers, as suppliers compete for a share of a decreasing number of customers.

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!