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Chapter 9

1. Discuss the differences between the characteristics of low-high value sales?


The differences between low value and high value sales are that for one to be considered of
any importance to a salesperson they must fall into the bracket of high value which is where
they show complex buying behaviour, high sales potential for the company and willing to
enter into a long-term alliance or partnership with a company. This things make high value
customers of great demand, in comparison to lowvalue customers who might go into a
short-term partnership or none at all, which is not of high priority to a company. If a
salesperson has to do overwork for a sale that still does not look promising they already fall
into lowvalue sale bracket because there is a high possibility that there would be small sale
or no sale at all.
2. What are the key skills required of a key account manager?
Key skills required of a key account manager are to plan and develop relationships with a
wide range of people in the customer firms. In addition, mobilise personnel and other
resources in their own firms to assist them. Furthermore, key account managers need to coordinate and motivate the efforts and communications of the companys field salespeople in
their calls on various departments, divisions and geographical locations of the key account.

3. What is global account management? What competences are required and do they differ
from those required of the key account manager?
Global account management is the process of co-ordinating and developing mutually beneficial
long-term relationships with a select group of strategically important customers operating in
globalising industries. The competences they require include good communication skills, global

team leadership and management and skills dispersed requirements, business and financial
acumen, relationship management skills, strategic vision and planning capabilities, problemsolving capabilities, cultural empathy, both internal and external selling skills, industry and
market knowledge and lastly product service knowledge. The requirement of the key account
managers and global account management are very similar and can be said to be nearly identical
to each other.

Chapter 10
1. Discuss the implications of the move towards relationship marketing in organizational
buying/selling situations in the context of how this might change the role of selling.
Relationship marketing plays a significant role in sales. Organizations/companies have
realized the importance and benefits of a relational approach to selling rather than a
transactional only one (this helps to retain the customers interest) An important implication
of this is that key information is captured in the relationship dynamics, such as getting to
know your customer better in terms of their needs and wants. Another implication is that low
levels of initial trust or commitment in a relationship may be overcome by higher levels of
velocity or acceleration. In other words a rough start does not necessarily mean that the
relationship has been tarnished. Relationship marketing in buying/selling situations has a
high tendency to alter the role of selling in the words of Peter Drucker, There is only one
valid definition of business: to create customers. It is the customer who determines the nature
of the business. Consequently, any business has two basic functions: marketing and

innovation. The importance of customers remains clear (To gain good reputation and gain a
profit)

2. Total quality management is a philosophy of management that should permeate every


aspect of the organization and not simply be the concern of production. What is meant by
this statement in terms of how TQM can affect the selling function?
Total quality management has added considerably to brand building and marketing success. It
involves making customer satisfaction top priority. It affects the selling function in a positive
way, in order for TQM to be achieved or used effectively in selling businesses need to identify
customers and their requirements, establishing and using targets for all areas of activity, basing
decisions on researched hard facts rather than on hunches, identifying and eliminating the root
causes of problems, educating and training employees. In regards to the selling function, based
on the philosophy of "Customer First", for examples; Toyota was develop to provide innovative,
safe and outstanding high quality products and services that meet a wide variety of customers'
demands to enrich the lives of peoples around. TQM convinced itself that it would be a good
idea to improve standard features without focusing on cost and also to use the "reverse thinking"
that profits come from sales expansion; this thinking is what helped the Toyota evolve over time
to become the vehicle that meets its customers' needs.

3. Describe the key elements of a customer care program that would be appropriate in a
manufacturing of service environment with which you are familiar.

4. What are the implications for salespeople of the adoption of supply chain integration by
larger manufacturers?

References:
Relationship Marketing 2014. ROBERT W. PALMATIER. [ONLINE] Available
at:http://www.mktgsensei.com/AMAE/Services/Relationship%20Marketing.pdf.
[Accessed 04 November 2014].
David Jobber, 2011. Selling and Sales Management (8th Edition). 8 Edition. Prentice
Hall.

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