Key Account Management in Business-to-Business Markets: An by Stefan Wengler (auth.)

By Stefan Wengler (auth.)

In instances of fierce festival in business-to-business markets robust and economically sound enterprise relationships with a company's consumers rank one of the major good fortune elements. As a good proven advertising administration belief, key account administration is of specific importance during this context. apparently sufficient, empirical learn reports have lately proved that courting advertising, and especially key account administration, doesn't in attaining the industrial worth initially anticipated.

Stefan Wengler offers a good based solution to the query of the industrial worth and exhibits the necessity for the implementation of key account administration. He provides a complete, yet easy-to-handle decision-making version that helps the choice at the best key account administration association for person businesses. furthermore, the writer supplies a complete evaluate at the key account administration belief and its controlling tools.

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Extra info for Key Account Management in Business-to-Business Markets: An Assessment of Its Economic Value

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As market entry barriers have to be overcome and the existing market position has to be defended, these specific actions result in considerable costs. Those costs associated with both actions have an investive character [Bursk 1979, p. 160; Plinke 1989a, p. 309] because they are directed to (a) specific customer(s). Independently of their status (key account or not), large customers demand special value-adding activities from their suppliers [Cardozo/Shipp/Roering 1992; Homburg et al. 2002a, p.

Thus, key account management requires a strict cost management,^* which seems to concern the complete company. A lot of opportunities for the reduction of transaction costs and process costs will be given - if an adequate key account management is established [Levitt 1983; Jackson 1985, p. 128]: low hierarchies, extensive information exchange, clearly assigned responsibilities as well as decision competencies and a proper organizational design can be seen as important elements of an adequate management process [Kleinaltenkamp/Rieker 1997; McDonald et al.

Most relationship managers are not really aware of this problem [Jackson 1985, p. ^^ Hence, the seller applies a relationship selling approach,^^ but the buyer does not practice relationship buying. ^ Within his business relationship model, Ford [1980] emphasizes several categories of perceptions that influence future development of the relationship. He indicates that these categories include: experience with the other firm, uncertainty concerning rewards that will be obtained from a relationship, distance between the two parties (social, geographic, cultural, technological, and timebased perceptions of distance), and beliefs about the partner's commitment to the relationship.

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