Documente Academic
Documente Profesional
Documente Cultură
SALES MANAGEMENT
Birat Shrestha
BBA Hons/Emph, KUSOM
August/September 2018
BOOK REFERENCE
Tasks Skills
Develop long-term relationships Relationship building
Engage in direct contact with key customers Co-ordination
Maintain key account records and Negotiation
background information
Identify selling opportunities and sales Human relations
potential of existing key accounts
Monitor competitive developments affecting Focus on specific objectives
key accounts
Report results to upper management Diagnosing customer
problems
Monitor and/or control key account contracts Presentation skills
Make high-level presentations to key Generating visibility,
accounts reputation
Co-ordinate and expedite service to key Communication
accounts
Co-ordinate communications among Working in a team
company units servicing key accounts
TRADITIONAL (BOW-TIE) BUYER–SELLER RELATIONSHIP:
COMMUNICATION IS BETWEEN SALESPERSON AND BUYER
Interfirm contact being almost exclusively between the
supplier’s salesperson and the customer’s purchasing
manager
Pre-KAM
It is the prospecting stage
Breaking into an account
Early-KAM
Exploration of opportunities for closer collaboration by knowing the customers better
Convince the customer of the benefits of being a ‘preferred customer’ – offering
adaptations
Mid-KAM
Trust has been established and the supplier is one of a small number of preferred
sources
The number and range of contacts increases – social events
Partnership-KAM
The buying firm regards the supplier as an important strategic resource
Sharing sensitive information, joint problem-solving, collaborative efforts
Synergistic-KAM
Buyer and seller see each other as part of a larger entity
Transparent costing system
Uncoupling-KAM
Transactions and interactions cease - breakdowns due to changes in key personnel
and relationship problems
Key account manager leaves to be replaced by someone who in the buyer’s eyes is less
skilled
Breach of trust, product or service quality, account unattractiveness
KEY ACCOUNT RELATIONAL DEVELOPMENT MODEL
GLOBAL ACCOUNT MANAGEMENT (GAM)
GAM is the process of co-ordinating and developing mutually beneficial
long-term relationships with a select group of strategically important
customers (accounts) operating in globalising industries
The growth of globalization of business activities is making GAM an
important issue for many multinational organisations
Multinational customers are increasingly buying on a centralised or co-
ordinated basis and seek suppliers that are able to provide consistent
and seamless service across countries
Creating global account managers to manage the interface between
seller and buyer on a global basis
GAM issues – cross-cultural issues, global vs local conflict, managing
global logistics and global communication, global account manager
location
Global account managers perform a boundary-spanning role across two
important organisational areas
Internal interface between global and national account management –
headquarter and subsidiary company
External interface between the supplier and the dispersed activities of its
global accounts
BUILDING RELATIONSHIPS WITH KEY
ACCOUNTS
1. Personal trust (build confidence and reassurance) –
keep promises, reply to complaints, contact frequency,
visits, social activities with client, warnings to problem
2. Technical support (provide know-how/improve
productivity) – R&D cooperation, sales service, training,
dual selling
3. Resource support (reduce the buyer’s financial burden) –
financial facilities, cooperative promotions, counter-trade
4. Service levels (improve the quality of service) –
reliable JIT delivery, install computerized recording
system, fast and accurate quotes, defect reduction
5. Risk reduction (lower uncertainty in the customer’s
mind) – demonstration, trial period, product & delivery
guarantees, maintenance contracts, pro-active follow-ups,
reference selling
HANDLING RELATIONSHIPS WITH KEY ACCOUNTS
Key account do’s
Do work with the account to agree an actionable account plan.
Do understand key account decision-making:
Key choice criteria
Roles of decision-making unit
How decisions are made.
Do only ever agree to what can be delivered
Do resolve issues quickly
Do confirm agreements in writing
Do communicate internally to identify unresolved problems (e.g. late delivery)
Do treat customers as ‘experts’ to encourage them to reveal information
Do view issues from the customer’s (as well as your own) perspective
Do ask questions: knowledge is power
ACCOUNT AUDIT
SWOT ANALYSIS
• Strength
• Weaknesses
• Opportunities
• Threats
ACCOUNT PLAN
• Objectives
• Strategies
• Control
KEY SUCCESS FACTORS FOR
KEY ACCOUNT MANAGEMENT (KAM)
1. Suitability of the key account manager
2. In-depth knowledge and understanding of the key
account customer’s business
3. Commitment to the partnership
4. Delivering value
5. Trust
6. Proper implementation and understanding of the
KAM concept
THANK YOU/BEST WISHES
Questions/Answers/Discussions