KEY ACCOUNT MANAGEMENT

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 intgrative lment of the business strategy.

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

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.

THINK LIKE YOUR CUSTOMER:

Managing & selling to key accountsBussiness Acquisition & Retention

HOW TO GO ABOUT IN KAM???

penetration

New Product Development

Market Extension On Product Lines

Market Development

THE BUSINESS PARADIGM

RETENTION SERVICE

ACQUISITIONS

MANAGING KEY ACCOUNTS

Business objective Managing the future must be continual process of analysis, reassessment and change KAM is about managing people

Mrkting Oppurinities

Business resources

SELLING MILLIPORE SERVICE

What do we sell?

Why would customer buy from us?

The four?

Whom do we sell?

Why will prospect choose someone else?

THINK LIKE YOUR CUSTOMER:

Managing & selling to key accountsUnderstanding what customer really wants

THE NEED VS RESULT ANALYSIS

Current State Desired Future state

A. Disparity (need)

B. Solution (transaction)

C. Results (need filled)

c buys what they need to,so they can get what they want. They dont want a solution ,what they want is result.

THE BUSINESS ACTION DRIVERS

motive

urgency Payback or return Constant at a place

Resources or means

Perceived risk

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

THE KAM PROCESS

WHO IS OUR PROSPECT???

ASSESSMENT CRITERIA
1. Present contributions 2. Customer expansion/ diversification 3. Referrals 4. Conformation to regulatory norms 5. Credit worthiness

POINTS

SCORE

6. R & D
7. Geo- reachability 8. Pricing & profitability

THINK LIKE YOUR CUSTOMER: Managing & selling to key accountsSelling to key accounts

PORTERS ANALYSIS

Threat Of New entrants

Bargaining power of supplier

Competitive rivalry

Bargaining power of buyers

Threat of New substitute

SELLING TO KEY ACCOUNTS

ASPECTS OF SOLUTION SELLING

1. 2. Relatively long period of time Unclear needs and demands

3.
4.

What is the right solution.

Large number of people are involved both in the customers organization and our company More efforts are required to form a tailor made solution and sell it to the customer. There is a need for a more structured planning.

5.

6.

THE DIMENSIONS OF SOLUTION

New solu adaptation Small adaptation Marginal sales efforts choice Std. products

SELLING

Selling solutions

sellers No. of efforts

normal

large

critical

SOLUTION SELLING
Building confidence In millipore In our tech In ourselves

The selling concept

Evolving a solution

Countering competition

THINK LIKE YOUR CUSTOMER:

Managing & selling to key accountsManaging key accounts

LETS CONSIDER SIX POSSIBLE OBJECTIVES

1. 2. 3. 4. 5. Retention of customers in a competitive environment Growth through entry into new customers Growth with existing customers Managing customers with a cross territory perspective Going beyond product and benefit selling .

ACCOUNT STRATEGY PLAN

Define the business mission Conduct a situation audit: market attractiveness analysis,competitor analysis Identify strategic opportunities Evaluate strategic alternatives Establish specfic objectives and allocate resources

Develop a retail mix to implement strategy

Evaluate performance

THE KEY ACCOUNT RELATIONSHIP DEVELOPMENT MODEL

HIGH

KAR SUCCESS %

LOW

LOW

STRATEGY

HIGH

KEY ACCOUNT MANAGEMENT THANK YOU