Description
The key account management, elements, account selection alongwith CPC case, buying process, sales coordination
?
Type of Relationship Marketing ? Transaction v/s Relationship
•Focus on single sale •Short Term Orientation •Quality is function of product •Price conveys all •Focus on past & future •Long term orientation •Quality is function of process •Value is the essence
? Select
Few Customers ? Special Treatment ? Mutually Profitable
?
Who are the customers ? ? Why select only few ? ? What is special treatment ? ? Why should it be mutually beneficial ?
? Customers
?
of the firm
Employees KAM Focus ? Suppliers ? Lateral Markets ? Intermediate & Immediate Customers
? The
80/20 rule ? You can not be everything to every one ? Customizing deliverables to each customer segment is CRM ? Key Account Management gives exclusivity
? Transaction
?
Specific Investments
Dedicated Manufacturing Line Price, Payment etc. Multi Level Marketing, Process Change
? Incentives
?
? Adaptations
?
? Should
serve a business purpose ? For the efforts put in there should be some benefit ? A win – win situation for both ? Increases switching costs
? No
Differentiation ? Increased JIT / MRP ? Diffused Technology ? Mergers & Acquisitions ? Growth of MNC ? High Cost of Acquisition
? Account
Selection ? Analyze Buying Process ? Developing Relationships ? Sales Co-ordination
Capacity Utilization
Prestige
Price & Margins
Account Selection
Order Patterns
Growth
Maintenance Costs
no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Customer Axiom Insurance Car Automobiles Prime Motors Novel Bank NTR Foods Spy Labs Potential Engineering Madhur Electronics India Forge Keystrokes Inc Mode Fasteners Mediline Equipments Model Pharma Aquaticon UCUCU Bank Mysore Soaps Regency services Sham Steel Andaman Scooters Hamara Bank
cust since
Business
av.margin
orders
type Public Ltd Public Ltd Public Ltd Central Govt. Private Ltd Private Ltd Public Ltd Public Ltd Central Govt Private Ltd Public Ltd Private Ltd Public Ltd Private Ltd Public Ltd State Govt Public Ltd Public Ltd Public Ltd Central Govt
sector Finance Automobile Automobile Finance FMCG Pharma Manufacturing IT Manufacturing IT Manufacturing IT Pharma Bio-Tech Finance FMCG Finance Manufacturing Auto Finance
buying Centralized Centralized Decentralized Centralized Centralized Decentralized Centralized Decentralized Decentralized Centralized Decentralized Decentralized Decentralized Centralized Decentralized Centralized Decentralized Decentralized Centralized Decentralized
servicing Multi Location Multi Location Single Location Multi Location Single Location Single Location Multi Location Single Location Single Location Single Location Single Location Multi Location Single Location Single Location Multi Location Single Location Multi Location Multi Location Single Location Multi Location
1998 2002 1998 2000 1997 1996 1999 1999 1999 1997 2000 2001 2002 2003 2000 2004 2003 1998 2001 1995
45 88 58 134 78 92 111 67 56 31 79 84 49 29 200 46 60 100 73 134
11 9 9 14 12 10 12 11 13 18 12 14 12 13 8 11 9 13 11 10
4 6 7 12 5 1 8 4 5 2 4 9 3 1 3 4 3 9 1 2
CPC MODEL
ACTIVITIE S Handle Prod Runs
Set Up Prod Set up Hours
Parts Admin Numb er of Parts
Machin e Suppor t Machin e Hours
DRIVER S
Producti on Runs
OUTPU TS
Blue Pens
Black Pens
Red Pens
Purpl e Pens
ACTIVITIES & COSTS
Handle Prod Runs Set up Administer Run Total Machines Parts Machines Expense
Indirect Labor and ½ Fringe Computer Expenses Machine Depreciation Maintenance Energy Activity Expenses Cost Driver - Quantity Unit of Measurement
50% 80%
40%
10% 20% 100% 100% 100%
28,000 10,000 8,000 4,000 2,000 52,000
22,500 150
11,200 526
4,800 4
14,000 10,000
Prod. Runs Set up hrs No. of PartsMach. hrs
Blue Sales Material Costs Direct Labor 40% Fringe on direct labor Machine time expense Production run expense Setup time expense
Black
Red
Purple 1,650 550 200 80 140 1,760 1,022 1,200 4,952 (3,302)
Total 150,600 50,230 20,000 8,000 14,000 22,000 11,200 4,800 130,230 20,370
75,000 60,000 13,950 25,000 20,000 10,000 8,000 4,000 7,000 7,333 4,259 3,200 5,600 7,333 1,065 1,200 4,680 1,800 720 1,260 5,573 4,855 1,200
Administer parts expense 1,200 Total expense Operating Income
58,792 46,398 20,088 16,208 13,602 (6,138)
? Buying ? Power
Centre
? Priorities ? Perceptions
? Awareness ? Exploration
Switching Costs Shared Values Communication Relationship Benefits Opportunistic Behavior
+ +
? Expansion ? Commitment ? Dissolution
? INTERNAL
? Technical
Group, Marketing, Top Management
? EXTERNAL
? Buying
Center ? Power Center
? Top
Management Involvement ? Product / Process Capabilities ? Collaborative Culture ? Flexibility ? Focus on customer Problems
Centralized Co-ordination
1
Decentralized Co-ordination
4
Centralized Execution
2
Selling Teams
3
One man support Area Specific Structure
Decentralized Execution
Matrix Structure
doc_395686394.ppt
The key account management, elements, account selection alongwith CPC case, buying process, sales coordination
?
Type of Relationship Marketing ? Transaction v/s Relationship
•Focus on single sale •Short Term Orientation •Quality is function of product •Price conveys all •Focus on past & future •Long term orientation •Quality is function of process •Value is the essence
? Select
Few Customers ? Special Treatment ? Mutually Profitable
?
Who are the customers ? ? Why select only few ? ? What is special treatment ? ? Why should it be mutually beneficial ?
? Customers
?
of the firm
Employees KAM Focus ? Suppliers ? Lateral Markets ? Intermediate & Immediate Customers
? The
80/20 rule ? You can not be everything to every one ? Customizing deliverables to each customer segment is CRM ? Key Account Management gives exclusivity
? Transaction
?
Specific Investments
Dedicated Manufacturing Line Price, Payment etc. Multi Level Marketing, Process Change
? Incentives
?
? Adaptations
?
? Should
serve a business purpose ? For the efforts put in there should be some benefit ? A win – win situation for both ? Increases switching costs
? No
Differentiation ? Increased JIT / MRP ? Diffused Technology ? Mergers & Acquisitions ? Growth of MNC ? High Cost of Acquisition
? Account
Selection ? Analyze Buying Process ? Developing Relationships ? Sales Co-ordination
Capacity Utilization
Prestige
Price & Margins
Account Selection
Order Patterns
Growth
Maintenance Costs
no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Customer Axiom Insurance Car Automobiles Prime Motors Novel Bank NTR Foods Spy Labs Potential Engineering Madhur Electronics India Forge Keystrokes Inc Mode Fasteners Mediline Equipments Model Pharma Aquaticon UCUCU Bank Mysore Soaps Regency services Sham Steel Andaman Scooters Hamara Bank
cust since
Business
av.margin
orders
type Public Ltd Public Ltd Public Ltd Central Govt. Private Ltd Private Ltd Public Ltd Public Ltd Central Govt Private Ltd Public Ltd Private Ltd Public Ltd Private Ltd Public Ltd State Govt Public Ltd Public Ltd Public Ltd Central Govt
sector Finance Automobile Automobile Finance FMCG Pharma Manufacturing IT Manufacturing IT Manufacturing IT Pharma Bio-Tech Finance FMCG Finance Manufacturing Auto Finance
buying Centralized Centralized Decentralized Centralized Centralized Decentralized Centralized Decentralized Decentralized Centralized Decentralized Decentralized Decentralized Centralized Decentralized Centralized Decentralized Decentralized Centralized Decentralized
servicing Multi Location Multi Location Single Location Multi Location Single Location Single Location Multi Location Single Location Single Location Single Location Single Location Multi Location Single Location Single Location Multi Location Single Location Multi Location Multi Location Single Location Multi Location
1998 2002 1998 2000 1997 1996 1999 1999 1999 1997 2000 2001 2002 2003 2000 2004 2003 1998 2001 1995
45 88 58 134 78 92 111 67 56 31 79 84 49 29 200 46 60 100 73 134
11 9 9 14 12 10 12 11 13 18 12 14 12 13 8 11 9 13 11 10
4 6 7 12 5 1 8 4 5 2 4 9 3 1 3 4 3 9 1 2
CPC MODEL
ACTIVITIE S Handle Prod Runs
Set Up Prod Set up Hours
Parts Admin Numb er of Parts
Machin e Suppor t Machin e Hours
DRIVER S
Producti on Runs
OUTPU TS
Blue Pens
Black Pens
Red Pens
Purpl e Pens
ACTIVITIES & COSTS
Handle Prod Runs Set up Administer Run Total Machines Parts Machines Expense
Indirect Labor and ½ Fringe Computer Expenses Machine Depreciation Maintenance Energy Activity Expenses Cost Driver - Quantity Unit of Measurement
50% 80%
40%
10% 20% 100% 100% 100%
28,000 10,000 8,000 4,000 2,000 52,000
22,500 150
11,200 526
4,800 4
14,000 10,000
Prod. Runs Set up hrs No. of PartsMach. hrs
Blue Sales Material Costs Direct Labor 40% Fringe on direct labor Machine time expense Production run expense Setup time expense
Black
Red
Purple 1,650 550 200 80 140 1,760 1,022 1,200 4,952 (3,302)
Total 150,600 50,230 20,000 8,000 14,000 22,000 11,200 4,800 130,230 20,370
75,000 60,000 13,950 25,000 20,000 10,000 8,000 4,000 7,000 7,333 4,259 3,200 5,600 7,333 1,065 1,200 4,680 1,800 720 1,260 5,573 4,855 1,200
Administer parts expense 1,200 Total expense Operating Income
58,792 46,398 20,088 16,208 13,602 (6,138)
? Buying ? Power
Centre
? Priorities ? Perceptions
? Awareness ? Exploration
Switching Costs Shared Values Communication Relationship Benefits Opportunistic Behavior
+ +
? Expansion ? Commitment ? Dissolution
? INTERNAL
? Technical
Group, Marketing, Top Management
? EXTERNAL
? Buying
Center ? Power Center
? Top
Management Involvement ? Product / Process Capabilities ? Collaborative Culture ? Flexibility ? Focus on customer Problems
Centralized Co-ordination
1
Decentralized Co-ordination
4
Centralized Execution
2
Selling Teams
3
One man support Area Specific Structure
Decentralized Execution
Matrix Structure
doc_395686394.ppt