Sales

1
Sales Key Account Management (KAM)

• Week 6

2
Boundary Spanning Tasks

• Selling communication between buyer and
  supplier that lead to transactions
• Technology changes
• Internet information, self-service, automation
• Wireless job functions, time management
• Role of sales person changing problem solving,
  expertise becoming qualified decision makers
• See figure 1 Piercy and Lane (2003)
• See figure 1 Moncrief and Marshall (2005)

3
Key Account Management (KAM)

• Terminology major account national account
  global account management key account strategic
  account corporate account etc
• What is KAM?
• Important account
• Prioritise resource allocation
• Buyer Perspectives on KAM

4
Supplier Benefits

• Develop closer relationships trust, align
  products/services closer to business requirements
  or strategic goals
• Customer base stability buyers not switching
  between suppliers
• Profit / sales volume increases
• Word of mouth promotion
• Personal relationship development
• Problem solving ability

5
Buyer Benefits

• Closer Relationships trust understanding
  business issues
• Resource reduction in transactions
• Single point of reference for problem solving
• Priority access to production/ staff services
• Customisation of products/ services offered
• Lower prices / costs of doing transactions

6
Differences between KA and others

• Complexity of account geographical function
  operational
• Centralisation of purchasing processes
• Volume of sales

7
7 Factors Buying firms consider

• Importance of the suppliers service/ product to
  the buyer
• Degree of knowledge experience the buyer has
  with KAM
• Position of the account within the supply
  portfolio
• Type of purchasing decision process undertaken
• Environmental consequences
• Buyer strategic decisions
• Open-mindedness of the customer to something new

8
Channel conflict / Internal conflict

• Internal conflict
• sales function vs KAM function
• power of KAM in relation to other organisational
  functions (production, accounts etc)
• Management support of KAM
• Channel conflict
• Between KAM customers and other good customers
• Buyers who perceive they fit a KAM profile
• Hierarchy development will always create conflict
  between top and bottom of hierarchy

9
Implementation of KAM

• Millman and Wilson article
• Pre-conditions required before implementing KAM
  strategy commitment from senior management
  focus on customer problem resolution strong
  product and process capabilities collaborative
  culture flexibility
• Process elements Active participation of senior
  management definition and selection of key
  accounts clear wide and deep networks of
  relationship with customer support technical and
  product capacity problem identification and
  solving interaction process bpr to suit
  customer supplier takes on non-core management
  tasks

10
Customer focus

• Network focus on customers through the tiers
  see example of Appleton
• Interaction needs to be symmetrical dont let
  the customer power overtake the strategy you are
  proposing
• Customer satisfaction key account managers need
  to constantly communicate with clients and their
  clients to assess satisfaction and value
• Executive visits to the customers highlights
  the issues of problem solving

11
Regional variations

• US reading different perspective to European
  reading
• Focus on softer variables
• Quantitative vs qualitative gathering of
  information