key account management
DESCRIPTION
TRANSCRIPT
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KEY ACCOUNT MANAGEMENT
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WHAT IS KAM???
Key account management is a strategic business approach with the objective of ensuring long-term and sustainable business development through profitable partnerships with strategically important
customers
Key account management is not an isolated business process. It is an intégrative élément of the business
strategy.
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STRATEGIC IMPLICATIONS
KAM as core to business: For KAM to be able to deploy its full potential and benefits, it is crucial that it be positioned in the organization as a core to the business.
Capacity building: Developing internal capabilities and capacity in terms of knowledge, structures, systems and tools is a requirement for long-term success
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OBJECTIVES OF KAM
•Maximizing the sales velocity, this improves the utilization of the sales resources and understanding the importance and nuances of managing account.
•Increasing average deal size or the wallet share,we achieve with each customer, while at the same time minimize price erosion by developing specific process to build and manage accounts
•Increasing customer loyalty and customer retention ,this in turn drives down overall cost of sales.
•Thereby, be value partners to our customer.
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THINK LIKE YOUR CUSTOMER:
Managing & selling to key accounts-Bussiness Acquisition & Retention
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HOW TO GO ABOUT IN KAM???
penetrationNew ProductDevelopment
Market ExtensionOn Product
Lines
Market Development
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THE BUSINESS PARADIGM
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Business resources
MANAGING KEY ACCOUNTS
Managing the future must be continual
process of analysis, reassessment and
change
KAM is about
managing people
Business objective
Mrkting Oppurinities
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SELLING MILLIPORE SERVICE
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THINK LIKE YOUR CUSTOMER:
Managing & selling to key accounts-
Understanding what customer really wants
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THE NEED VS RESULT ANALYSIS
“c” buys what they need to,so they can get what they want. They don’t
want a solution ,what they want is result.
Current State Desired Future state
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THE BUSINESS ACTION DRIVERS
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WHY KAM???
1.KAM is a process for “finding new opportunities”
2.KAM is a means to provide uniform service and selling solutions
3. KAM is a means which focuses on providing solutions for overcoming barriers
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THE KAM PROCESS
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WHO IS OUR PROSPECT???ASSESSMENT CRITERIA POINTS SCORE
1. Present contributions
2. Customer expansion/ diversification
3. Referrals
4. Conformation to regulatory norms
5. Credit worthiness
6. R & D
7. Geo- reachability
8. Pricing & profitability
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THINK LIKE YOUR CUSTOMER:
Managing & selling to key accounts-
Selling to key accounts
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PORTER’S ANALYSIS
Competitive rivalry
ThreatOf
Newentrant
s
Bargaining power of buyer’s
Bargaining power of supplier
Threat ofNew
substitute
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SELLING TO KEY ACCOUNTS
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ASPECTS OF SOLUTION SELLING
1. Relatively long period of time
2. Unclear needs and demands
3. What is the right solution.
4. Large number of people are involved both in the customer’s organization and our company
5. More efforts are required to form a tailor made solution and “sell” it to the customer.
6. There is a need for a more structured planning.
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THE DIMENSIONS OF SOLUTION SELLING
Selling solutions
Marginal sales efforts
sellers
No. of efforts
normal large critical
choice
Std. products
New solu
adaptation
Small adaptatio
n
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SOLUTION SELLING
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THINK LIKE YOUR CUSTOMER:
Managing & selling to key accounts-
Managing key accounts
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LET’S CONSIDER SIX POSSIBLE OBJECTIVES
1. Retention of customers in a competitive environment
2. Growth through entry into new customers
3. Growth with existing customers
4. Managing customers with a cross territory perspective
5. Going beyond product and benefit selling .
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ACCOUNT STRATEGY PLAN
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THE KEY ACCOUNT RELATIONSHIP DEVELOPMENT MODEL
HIGH
LOW
HIGHLOW
KARSUCCESS
%
STRATEGY
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KEY ACCOUNT MANAGEMENT
THANK YOU