AJ Brown, Ruby Chang, Jeff Kalvik, Melissa La MRKT 4160 – Business Development

Dean Hargrave -Pawson National Account Manager

Dean Hargrave-Pawson Title : National Account Manager 16 years of sales experience –4 years at The Globe And Mail Focuses on Education and Tourism accounts Largest account value: $600, 000 3

Key Account Manager People skills Organization skills Reactive work 4

Value Proposition Definition Difference between Selling and SAM Relationship as the driver in co-creation of value Other Aspects: 4 P’s / PESTEL – but the close partnership is most important. 5

Value Proposition Great value attached to the Brand –Canada’s Largest Circulation National Newspaper. Affluent Readership. Ask the right questions –Earn the right to resolve client’s problem Each client is customized –The more research you do, the more knowledge you have about the customer, the more you can customize to their needs 6

Value Proposition Client type –Buyers ROI because they have a budget limit Show that the value is cost-effective Be direct and dramatic –C-level Linear thinkers Want numbers and facts 7

Value Proposition ROI as a part of value –If ROI is not met, alternatives are offered. Consumers want responses from ads right away –Compensate clients –Change ads (add call-to-action) If the customer sees value, they will continue to buy 8

Value Proposition Working directly with clients is better –Ad agencies get lower rates, the Globe is not given a chance to co-create value with the company. Stretch small budgets; be as competitive in your price 9

Value Proposition – Research Conduct Client Research Customer Profile Open ended questions only 10

Value Proposition – Research Sales Process –Step 1: Cold call prospect for a meeting –Step 2: Meet with the potential client –Step 3: Follow up action –Step 4: Sale 11

Value Proposition – Research Average length to seal the deal is 1 month Longest wait was 2 years Shortest was no wait at all 12

Cost Analysis Customer Lifetime Value –Direct production costs –Costs to serve –Customer-specific overhead costs (if applicable)

Cost Analysis Time Value of Money –A valuable customer is one that can deliver profit sooner.

Cost Analysis CPM –cost per thousand Company average –Use average to determine rate for clients Service cost –Senior client appreciation events 15

Cost Analysis Determine cost by forecasting client’s spending Start with a budget and divide it up between clients Take short-term loss to invest in future sales 16

Cost Analysis No financing for clients –To prevent non-payments –Doesn’t work for everyone E.g. Travel Industry Successful sale is to convince client to give you money when they don’t have money. 17

Cost Analysis If customer is not giving you any revenue, you stop spending money on them “$1 from Telus is equal to $1 from Joe’s coffee” 18

Customer Profitability Be as creative as possible Resources –Social media –Competitors –Own product (look in newspaper) No minimal profitability –Getting as much of people’s budget and showing value 19

Customer Profitability Assessments: –Activity-Based Costing (ABC) –Credit –Cash flow 20

Customer Profitability Assessments: –L.T.V. (Lifetime Value) –R.O.I. –Are they your target? Will you have to go out of your way? 21

Customer Profitability 22

Customer Profitability 80/20 ration of time –Spends more time on low end clients 23

Customer Profitability Small clients –Labour intensive –Time intensive But… –Builds your reputation in the industry –Buy more frequently –Become large clients in the end 24

Customer Profitability Large clients –Run campaigns not ads –Require less time –Follow up calls 25

Customer Profitability Fire your bad clients 26

Customer Profitability Going the distance to ensure client’s satisfaction –Changing the ad (adding call to action) to get more responses for client 27

Customer Profitability Better to take $8,000 well-spent than to take $10,000 from one-time customer –Stresses relationship building –If the customer sees value; will buy more in future 28

Customer Profitability Educate the client about ads Offer monetary incentive –Different options for different customers 29

Sources management htmlhttp:// management html i?aid=112211&mcid=6&scid=46&fire_your_bad_clients=ihttp://smallbusiness.yahoo.com/r-article-a m-6-sc-46-fire_your_bad_clients- i?aid=112211&mcid=6&scid=46&fire_your_bad_clients=i +analysis+for+key+account+managers&source=bl&ots=UxvTyCWJPW&sig=fSGtBL1 RlqDMEO1z83bMr2ZIsKw&hl=en&ei=vHVRTYj_KcT48Aal0- mBCg&sa=X&oi=book_result&ct=result&resnum=10&ved=0CFIQ6AEwCTgK#v=one page&q=cost%20analysis&f=falsehttp://books.google.com/books?id=YutAr0bk2OUC&pg=PA171&lpg=PA171&dq=cost +analysis+for+key+account+managers&source=bl&ots=UxvTyCWJPW&sig=fSGtBL1 RlqDMEO1z83bMr2ZIsKw&hl=en&ei=vHVRTYj_KcT48Aal0- mBCg&sa=X&oi=book_result&ct=result&resnum=10&ved=0CFIQ6AEwCTgK#v=one page&q=cost%20analysis&f=false 30