1. Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent 12−1 Chapter 12 Managing relationships with key customers

2. 1 12−2 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management The development of new customers Definition of key account management Link between marketing and sales Analysis and strategy Customer collaboration

3. 1 12−3 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Appropriateness of key account management

4. 1 12−4 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Developing a key account management plan  Selecting key accounts  Building strategic relationships with key customers  Developing business strategies for key customers

5. 1 12−5 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Key account screening process  Similar to the GE matrix

6. 1 12−6 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Customer attractiveness measures

7. 1 12−7 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Supplier importance measures  Measuring the degree of importance of the purchase from the customer’s viewpoint (B2B)

8. 1 12−8 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Supplier importance measures  The assessment of the supplier’s strength with the buyer can be used to calculate competitive strength as well as establish an idea of the supplier’s bargaining strength with a particular account.

9. 1 12−9 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Building key customer relationships  Developing business trust  emotional investment  attitudinal investment  competitive supply priority as share of business

10. 1 12−10 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Entry and exit barriers  Tactics used to develop entry and exit barriers

11. 1 12−11 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Developing business plans for key customers  Situation analysis  the customer  the competition  the supply firm  Strategic options  Develop a list of options.  Prioritise the list.  Assess the top priorities against the following criteria:  probability of successful outcome – risk assessment  impact on the business and the relationship  cost of implementation

12. 1 12−12 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Developing business plans for key customers  Action plan  This is an operational plan of how the key strategy will be implemented on a daily basis.  Action plans are specific and mostly include scheduling and staff allocations as well as a way of measuring their effect.  Some action plans also include contingency options to cover  unexpected developments  disasters and accidents  surprises in the industry or competitive environment  sudden advances in technology  events such as political elections where the result is not currently known but will possibly affect the industry Contingency plans provide ready-to-go decisions when time is critical

13. 1 12−13 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Developing business plans for key customers  Profitability statement  Standard financial statements – indirect costs  Activity-based financial reporting – includes a rigorous measurement of all costs relating to sales, promotion and administration

14. 1 12−14 Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent Key account management cont. The development of new customers Key account management skills  trusted partner  team leader  negotiator  pro-active agent for change  financial expert