GLOBAL ACCOUNT MANAGEMENT
Due to globalization of economics, advances in communication and information technologies, rapid changes in global market and consumers and availability of a transnational media, makes the world an enormous borderless marketplace. Accordingly many of multinational companies have adopted global account management as a substantial strategic account and integral part of global marketing, and have focused on global consumers’ important demands.
Global vs. Nation Account Management
Global account management (GAM) emerged as a plan or process of relationship focusing on future of global client’s major demands, and understands them towards to increasing ...view middle of the document...
Maintaining long-term business relationship is integral to successful account management. Identifying key customers and building relationships with them to achieve maximum sales is the primary objective a successful account manager. A successful, strong business relationship creates opportunities for higher profits because a customer priorities and needs are met (Wong, 1998 pp.215-216 & Woodburn and McDonald 2011, pp.15-21).
A successful relationship is more in the nature of a partnership and customers need to feel that they are involved in managing the relationship. China is a country that is deeply rooted in the cultivation of relationships or “Guan Xi”. Sales will simply not materialize without the right kind of relationships (Wong, 1998 pp.217-218). Managing relationship is not a promotional activity but of involving the customer, making them as much a part of the process as the supplier. This leads to customer priorities being met which results in higher profit.
A successful relationship understands the real needs and value required by the customer. Key account management (KAM), an aspect of relationship management stresses that though the quality and value of products is vital to successful account management, higher profits, larger market shares, relationships are often the key factor that tip the balance (Cheverton, 2006, p.201); accordingly Woodburn and McDonald (2011, pp.15-21) also emphasized on the important of relationship and its potential that must be identified by companies towards building up business; also through right strong relationship between supplier and buyer, companies could reduce risks, increase business profitability and return, and enhance commitments (Woodburn & McDonald, 2011, pp.15-21). Then right strong relationship between suppliers and buyers plays key role to support whole business strategy.
A relationship that is tuned into the long-term and short-term needs of customers is another vital ingredient of a successful account. Maintaining a business relationship is the next crucial step after building one for viable account management. Successful account management often encompasses a crisis cross of relationship. All levels of buyers and sellers organizations are closely linked. Only this provides positive value which in turn delivers better products and services. In the end, I would like to conclude that all though, all elements like relationships, delivery, growth, profit & loss, people, internal problems & supports are important, but relationship is the first and most important element of successful account management.
The one of largest information technology (IT) provider in the world is Hewlett Packard (HP) that is specializes in networking hardware, producing software and developing the universe computing as well as personal computing devices. In this case of GAM issue in HP, was the conflict of country managers and GAM during performing the GAM plan. The most confusion...