Delivering Customer Value

Unit (1): Product Development

1.1 Product Development Stages:
1.1.1 Idea Generation : Idea is generated from several resources (( Research and
surveys // customers //competition // possible features ))
1.1.2 Idea screening : suitable for integration
1.1.3 Concept testing: simulation or simple presentation through focus group
((customer appeal ))
1.1.4 Business analysis: requirements as staff; infra-structure, current technology &
cost associated
1.1.5 Product development: Prototype
1.1.6 Test marketing: introduction in a certain area with monitoring to competition.
1.1.7 Commercialization: Launch.
1.2 Types of new products
1.2.1 New to the market
1.2.2 Significant innovation
1.2.3 Minor innovation
1.2.4 No innovation
1.3 Product standardization and adoption
standardization
No additional product development
adoption
Meet the different needs
Culture acceptance
1.4 Product positioning
1.4.1 Identify features & attributes
1.4.2 Key customer benefits
1.4.3 Occasions when product might be used
1.4.4 Identify users group
1.4.5 Adopt a head-head position
1.4.6 Clear point of difference from competitors
1.5 Product innovation
1.5.1 Innovation sources
Cooperating with suppliers
Knowing customer needs
Accepting that products fail occasionally
Build an innovative culture
Responding to the market opportunities
1.5.2 Types of product innovation
1.5.3 Product innovation
1.5.4 Process innovation
1.5.5 Position innovation
1.5.6 Market innovation: New channels
1.6 Innovation process approach
1.6.1 Functional approach
1.6.2 Task force
1.6.3 Functional Mix
1.6.4 Venture team
1.6.5 Spin-outs
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1.6.6

Inside-outside venture

2 Unit (2): Product Management

2.1 Product Management Process
2.1.1 STP = (market share+ customer satisfaction+ increase resilience)
2.1.2 NPD = consistent developing value for the customer
2.1.3 Customer needs
Current needs (feature & benefits)
Future needs (demand level//functionality//ongoing research)
Pricing level (Quality vs. price balance)
Information need (to commit purchase /to convey)
Product availability (availability/distribution)
2.2 Customer value
Customer value derived from a customer centric organization that understands its
customers + stays dynamic.
2.3 Product portfolio management tools
2.3.1 PLC
Phases (Introduction/growth/maturity/decline)
Marketing mix
2.3.2 BCG
Quadrants
Stars
Problem child:
-

Building sales/market share

Invest to maintain increase leadership position
Repel competitive advantage

Build selectively.
Focus on defendable niche where dominance be
achieved.
Harvest or divest the rest.

Cow:

Dogs:

Hold sales / market share.

Defend position use excess cash to support stars
selected Problem children and news product
development.

Harvest or divest the rest.

Focus on defendable niche.

Product strategies
2.3.3 GE matrix
2.4 Market attractiveness
2.4.1 Size
2.4.2 Growth
2.4.3 Competition
2.4.4 Barriers
2.4.5 Political and legal
2.5 Competitive strength
2.5.1 Market share
2.5.2 Reputation
2.5.3 Distribution abilities
2.5.4 Market knowledge
2.5.5 Service quality
2.5.6 Innovation capabilities
2.5.7 Cost advantage
2.6 Sales strategies
2.6.1 Enter new market new product
2.6.2 Market development (new segment // Promote new users)
2.6.3 Product development (innovation//product replacement// line extensions)
2.6.4 Market expansion usage rate //convert non users
2.6.5 Market penetration buy competitors// win comp. customers
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3 Unit (3): the Role of Branding and brand strategies

3.1 Building a Brand: (( emotional (confidence) & functional (ease cuse))
3.1.1 Successful Brand Criteria:
Differentiation (Assets = symbols, features, image and relations)
Innovation (long term relationship)
Added value (work your way + ethical value CRC)
Quality (core product = Clarity /consistency/credibility/competiveness)
Integrated communication ( Customer perception)
Management and employees (internal marketing and service )
3.1.2 Brand values ((Emotional connectivity with logo more visible attributes))
3.1.3 Brand equity ((measure the brand worth financial value))
3.2 Brand Strategy
3.2.1 Brand stretching (( CAT heavy machines & cloths))
3.2.2 Brand line extension ((KitKat ice cream))
3.2.3 Multi-brand ((P&G: Ariel / Percil / tied))
3.2.4 New brand ((Toyota and lexus))
3.3 Global Brand (( Global brand could be perceived better than local ))
Standardization
Adoption
Large number of buyers similarities
Different needs
Easier to control campaigns
Infra-structure
Consistent brand image
Level of education
Economies of scale
Culture and variations
Abilities and skills availability

Geographical expansion
Brand acquisition

Speed
Slow
Fast

Control
High
Medium

Investment
Medium
high

3.4 Role of brand

3.4.1 Reflect the values ~ build emotional attachment
3.4.2 Stand out in the market with respect to communication & expendure
3.4.3 STP should be considered
3.4.4 Brand strategy will be evident for its current product approach
3.4.5 Target marketed
3.4.6 Values
3.4.7 The budget
3.5 Corporate identity (ethos/aims/values, Visual cohesion to establish a favorable position)
3.5.1 Benefits of managing corporate identity
Attract more customer
Increase like hoods of partners and alliances
Attract talented staff
Help financially
3.5.2 Dimensions
Actual identity (Reality: product quality, values, staff, leadership, industry)
Communicated identity (controllable communication + non controllable 'word
of moth / media messages)
Convinced identity (distributor //shareholders
Desired identity (vision)
Ideal identity

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Unit (4): Prices concepts and price setting

4.1 Prices Decisions ((Factors affecting price setting))

4.1.1 Objective ((make profit through service))
5 Ss (sell/serve/sizzle/ speak/save quality)
((build //holding//harvest//reposition))
4.1.2 Customers and customers perception (( level of income // service quality ))
Message
Satisfaction degree Vs. Quality
4.1.3 Perceived value for money ((benefits received against money spent))
After sales service (service + technical support)
Differentiation (prestige and status)
Quality
Product functionality (ease of use and information)
Substitutes & competitors
4.1.4 Competition ((how they price))
Volume of purchase
One-off discounts
Loyalty discounts
4.1.5 Marketing Mix ((reflection on the other Ps))
Image & price
Communication and price
4.1.6 Channel members ((profitability))
4.1.7 PESTEL/ 5 forces. ((economic/legal substitutes/ rivals/suppliers /bargaining))
4.1.8 Price elasticity ((differentiation/ not differentiated / controlling demand and
supply))
4.2 Price Framework ((AVOID: deceptive pricing //price discrimination))
4.2.1 Cost price based pricing
4.2.2 Customer based pricing
Promotional pricing (occasionally and temporary)
Competition price
Professional pricing
Multi-dimensional pricing
Offset pricing: low fee for core but recouping with add-ons
Inducement: low fee to attract new customers
Diversionary: low basic fees on selected services to develop of value for
money.
4.3 Price elasticity of demand
4.3.1 Elastic (not diffrentiated)
4.3.2 Inelastic (differentiated)
4.4 Price international aspects:
4.4.1 Economic conditions
4.4.2 Competition
4.4.3 Legal
4.4.4 Market objective
4.4.5 Consumer perception of brand
4.4.6 Product position (PLC)
4.5 Managing Price change ((inflation/ customer perception of quality and service))
4.5.1 Capacity utilization
4.5.2 Market dominance ((21% of global market = set prices))
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4.5.3 Market defense ((avoid price warefares))

4.6 Perceived product value:
4.6.1 Product life cycle
4.6.2 Service and technical support
4.6.3 Prestige & status
4.6.4 Packaging
4.6.5 Ease of use
4.6.6 Availability of competitors

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5 Unit (5): Channel intermediaries and stakeholders

5.1 Distribution channels
5.1.1 Functions of a distribution channels
Create utility ~ availability
Facilities exchange ~ mutual benefits ' reducing cost and risk'
Alleviating discrepancies ~ product use
Standardization of transaction ~
Customer service ~
5.2 Channel objective
Short distribution channel 'dis-intermediate other channel'
Factors affecting the objective:
- Cost of distribution
- Product and service to be distributed
- The ability to gain competitive advantage
5.3 Distribution strategy
5.3.1 Exclusive distribution (Niche market)
5.3.2 Selective distribution (For high quality products)
5.3.3 Intensive distribution
5.4 Influences on channel strategy
5.4.1 Product (Complex product that needs direct communication)
5.4.2 Objective (distribution strategy)
5.4.3 Market size & location (in order not to invest hard in infra-structure)
5.4.4 Consumer behavior ( mobile working)
5.4.5 Changing environment
5.5 Channel structure
5.5.1 Vertical marketing system
Corporate VMS : owns the intermediary
Contractual VMS: written agreement
Administered VMS: gentlemen word of mouth
5.6 Marketing tools in channel management
5.6.1 Effective use of marketing mix
Build profitable and differentiated relationship with intermediaries
Establish one-to-one communication and dialogue
5.6.2 Marketing Mix include:
Product: serviced office spaces (standardization globally)
Price: it is actually according the package ((currency exchanges and rates))
Promotion: branding and heavy support ((constant look globally // ethical
//PR support and negative PR to channel partners))
People: a high degree of training and staff selected carefully
Process: clear documented process
Physical evidence: location and appearance of the building, maintenance of
equipment, website etc.
5.7 Role of communication in channel management
5.7.1 Differentiation: competitive advantage
5.7.2 Reminding : importance of relationship & benefits
5.7.3 Information: Proactive researches
5.7.4 Persuading : messages to encourage potential channel members and retain
the current ones.
5.8 Evaluating the channel options
5.8.1 Economic: estimate sales and ROI, also assets shared, replaced and needed
and EXIT COST.
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5.8.2 Control of communication to customer

5.8.3 Adaptive: long-term commitments and changes.
5.9 Ethical consideration in channel management
5.9.1 Product fits purpose
5.9.2 Price is fair
5.9.3 Staff are trained
5.9.4 Terms and conditions
5.9.5 Risk and liabilities
5.10 New & emerging channel
5.10.1 Internet and disintermediation
5.10.2 My Regus
5.10.3 Documents
5.10.4 Videos
5.11 How to select
5.11.1 Criteria meet
5.11.2 Experience in market
5.11.3 Organisation reputition //negative PR from Regus express
5.11.4 Reach & coverage
5.11.5 Fit in the chain "common goal"
5.11.6 Pricing agreement
5.11.7 Agree terms and conditions
5.11.8 Service agreed level
5.11.9 Cometitor relation
5.11.10 Can we do business with them
5.12 Factors influencing channel choice:
5.12.1 Market coverage
5.12.2 Cost
5.12.3 Profit potential
5.12.4 Control
5.12.5 Experience
5.12.6 Brand alignment
5.12.7 Strategic fit
5.12.8 Access to overseas location
5.12.9 Repetition

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6 Unit (6): Channel intermediaries and stakeholders

6.1 Stakeholders in channel management
Partnership = mutual beneficial relationship
6.2 Stakeholder needs
6.2.1 Suppliers: : long-term relationship 'contract amount and payments' // clear
CSR policies
6.2.2 Partner organizations: Clear CSR// long term contract// rules of competition //
clarity of roles and responsibility
6.2.3 Financial providers: Ongoing relationship// regular accounting reporting for
financial performance
6.2.4 Shareholders: acceptable ROI // risk assessment plans // market of shares
6.2.5 Customers: Prices // new products // ease of purchase // updates
6.2.6 Employees: salries // areer pass// friendly enviorment// skills development //
good leadership
6.3 Managing stakeholders:
6.3.1 Customer Markets ((customers + distributors + referrals))
6.3.2 Referral Markets ((third party organizations // customers & companies & staff
& incentive based))
6.3.3 Internal Marketing (( STAFF <-> STAFF & STAFF<-> customer))
6.3.4 Influence markets ((governments// pressure groups // shareholders press and
media generally //union trade))
6.3.5 Suppliers alliance market ((suppliers and alliance markets ))
6.3.6 Recruitment market
6.4 Categorizing stakeholders:
6.4.1 Internal: management & staff
6.4.2 Connected: customers, suppliers, shareholders
6.4.3 External: communities, government, pressure group.
6.5 Stakeholder power
6.5.1 Legitimate power: legal power
6.5.2 Expert power: skills & knowledge
6.5.3 Reward power: bonus or additional benefits
6.5.4 Referent power: Quality of organization
6.5.5 Coercive power: dominant
6.6 Dealing with conflict in the channel
6.6.1 Payment //profit margin // appointment of new channel members //lack of
information
6.6.2 Different focus & priorities
6.6.3 Change in strategy
6.6.4 Change in personal
6.6.5 No longer provide a value
6.6.6 Theird party issue
6.6.7 Unplanned event
6.6.8 Inability to meet terms
6.6.9 Intial poor selection
6.6.10 Breach of SLA.

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7 Unit (7): Contractual requirements and service level agreements

7.1 Legal work
7.2 Contractual requirements
7.2.1 Restricted sales area
7.2.2 Tying contract range of product
7.2.3 Exclusive deal
7.2.4 Refusal to deal TESCO & Levi's
7.2.5 specification
7.3 Service legal agreement objective
7.3.1 Act as point of differentiation
7.3.2 Quality
7.3.3 Customer service
7.4 Service legal agreement Requirements
7.4.1 Clearly establish the organizations needs
7.4.2 Simplify issues for understanding
7.4.3 Reduce areas of conflict
7.4.4 Encourage dialogue in event of disputes
7.4.5 Encourage realistic expectations.
7.5 Other Obligations
7.5.1 Terms and conditions
7.5.2 Trade or professional body membership
7.5.3 Service grantees
7.5.4 Customer charter
7.5.5 Bench marking accreditations ISO 9001
7.6 Typical service level agreement
7.6.1 Nature of service to be provided
7.6.2 Performance measures
7.6.3 Issues management 'document procedures'
7.6.4 Daties & responsbiliites 'training staff, number of working staff'
7.6.5 Cost associated with the SLA 'research, database .. costs'
7.6.6 Termination (procedures and costs)
7.7 Measuring the level of intermediaries
7.7.1 Sales
7.7.2 Stock level
7.7.3 Delivery time
7.7.4 Return policies
7.7.5 Training programs
7.7.6 Customer service
7.7.7 Customer retention

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8 Unit (8): Managing marketing communication

8.1 The role of marketing communication
8.1.1 Differentiate appear different from competitors
8.1.2 Remind reassure benefits from purchase
8.1.3 Inform Information update about new products
8.1.4 Persuade encourage for action and change opinion
8.2 Alignment with corporate objectives
8.2.1 Organization mission statement
8.2.2 Organization objective
8.2.3 Functional objective
8.2.4 Marketing objective
8.3 Marketing Information Plans
8.3.1 Situational analysis ( PESTEL/ 5 Forces/ SWOT)
8.3.2 Communication objective (Maintain position// Generate sales.. improve
customer satisfaction// support launch )
8.3.3 Marketing communication strategies ( Pull/push/profile)
8.3.4 Marketing communication message ((communicate the value of the brand
measure -> recall))
8.3.5 Integrated marketing communications activities (( budget/control through
Gantt chart
8.4 Market communication in building Relationship
8.4.1 Customer loyalty ladder
Prospect
Purchaser (customer): few time
Client: repeated
Support: passive support
Advocate: market for it
Partner: strong independent relation
8.5 Communication in different content
8.6 Communication: satisfy customers and reduce levels of risk associated
((financial//delivery//service//personal))
8.6.1 B2B
Personal selling
Trade advertising
Direct marketing
Sales promotions
Exhibitions
PR
Internet/Online
8.7 Global and international aspects of marketing communication ((Offices size
dilemma/transfer price))
Standardization
Adoption
Standard message and brand
Local people for local people
High quality multinational
Needs variation
same campaign
Educational standards and level to
understand the message
Brand consistency
Legal issues to understand
8.7.1 Aspects
MACRO: PESTEL
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 MICRO: 5 FORCES + Market size+ (COST/PROFIT/ACCESS)

Company capabilities: skills/resources/ product adaption/competitive
advantage.
8.7.2 Factors to Enter a market:
Internal
External
Knowledge level of market & risk
Large Market
Large investment High
Barriers to imports
commitment
Large investment No joint ventures Country economic attraction
Service experience (prefere high
Legal incentive to invest
control/ integrated mode)
8.8 Relationship marketing communication
Communication is a part of the added value ((two-way, regular communication with
relevant info))
8.8.1 Puplic
8.8.2 Customers
8.8.3 Distributors
8.9 Internal Marketing (Internal service culture)
8.9.1 Creation of customer awareness
8.9.2 Quality management program
8.9.3 Changes programmes
8.10 Importance of Internal communication
8.10.1 Staff need to kept informed
8.10.2 Customer face staff needs to be aware of the new products
8.10.3 Motivational and morale
8.10.4 Support staff engagement
8.10.5 Encourage information sharing
8.10.6 Promote customer orientation
8.11 Internal Communication methods (treat employees as customers):
8.11.1 Product: relate to changing nature of job roles
8.11.2 Price: balance psychological cost and benefits
8.11.3 Place: where activity takes place
8.11.4 Promotion:
8.11.5 People: those involved in delivering communication, trainings and meetings
8.11.6 Process: communication media
8.11.7 Physical evidence : trainings, briefings and documentation
8.12 Roles of internal marketing
8.12.1 General communication ((differentiate the communication across different
employees // remind by core values // inform with updates // persuade by
consistent message))
8.12.2 Transactional ((direct initiative / coordinate actions / manage resources)
8.12.3 Affiliation ((refer the organization through employees))
8.13 Internal communication methods
8.13.1 Intranet
8.13.2 Emails
8.13.3 Seminars
8.13.4 Briefing
8.13.5 Newsletters
8.13.6 Mobile

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9 Unit (9): Marketing communication activities and measurement

9.1 The communication mix
9.1.1 Above the line ((press/magazine/outdoors/banners, research engine))
9.1.2 Through the line (( direct marketing/ direct mail catalogues/interactive
communication ))
9.1.3 Bellow the line ((sales promotions/public relation/ personalized sales/
methods: permission base/intervention base))
9.2 Communication Mix
9.2.1 Advertising ~ awareness or encourage trailing products
9.2.2 Personal selling ~ it is expensive put effective
9.2.3 Sales promotions ~ encourage trails or increase usage
9.2.4 Direct Marketing ~ increasing popular tools that can deliver personalized
message
9.2.5 Online ~ rapidly increased due to use of internet and social media
9.3 Advertising
9.3.1 Online
Advantage
Disadvantage
Inexpensive
Developing medium not mainstream
Speed of setup
Developing medium not mainstream
Global reach
Often easy to delete without noticing
Creative and interactive
Not regulated yet
Speed of conduction message
9.3.2 Magazines
Advantage
Effective targeting
segmentation
Could be read frequently
Readership
Long life cycle

9.3.3 Outdoors
Advantage
Repeated exposure
Low cost
Support message
Flexible during campaign

Disadvantage
Expensive compared to other media
Envolve high quality material

Disadvantage
Short exposure
Random view

9.4 Personal selling

9.4.1 Sales behavior: (getting information, giving information, using information)
9.4.2 Sales Roles : prospecting/ communicating/ informatiove/ servicing / allocating
/ shaping)
9.5 Public PR ((online/internal/ sponsorship/ corporate identity/ publications))
9.5.1 Marketing PR
9.5.2 Corporate PR
9.6 Sponsorship ((cause related sponsorship // environmental CRC = caring, concerned,
nature, admirable))
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9.6.1 Enhance corporate image

9.6.2 Brand association with popular activity
9.6.3 Clear differentiator
9.7 Direct marketing ((direct mail/online/mobile))
Advantage
Disadvantage
Individual targeting most likely to an appeal
Short term effect
Personalized
Low respond rate
Periodic continuous relationship
Poorly targeted customer annouyed
Less visible to competitor
9.8 Sales Promotion ((Boost sales/encourage trail/repeat purchase))
9.8.1 Price discounts could be matched / Brand Devalue alternative value
pack
9.8.2 Bonus packs: add value /less risk/encourage buyers
9.9 Online/Social media
9.9.1 Social media sites (( lack adoption as Sina weibo 'twitter' and Renren
Facebook, Youku.com.
Phases: strategic phase (complete engagement + brand
awareness/retention/traffic)
Measurement: ((frequency of posts, downloads, timeouts/Google metrics/
customer life time value /leads & ROI))
9.9.2 Uncontrollable sites (as trip advisor)
9.9.3 Viral marketing
9.9.4 Guerilla marketing
Advantage
Disadvantage
Global reach with low cost
High cost to develop websites
Highly measurable
Security issues
Interactive two way communication
Highly adaptable as message, price
Highly flexible to include sales
Highly targeted
Covenant form of access to product info
Avoid negotiation problems
Contentious trading
9.10 Ambush marketing (illegal).
9.11 Integrating marketing Mix
Advertising Sales
PR
Personal
Direct
promotion
selling
marketing
Deliver personal message
Reach large audience
Interaction
Credibility
Cost per contact

Low
High
Low
Low
Low

Low
Med
Low
Med
Med

Low
Med
Low
High
Low

High
Low
High
Med
Low

High
Med
High
Med
High

9.12 Marketing communication models

9.12.1 AIDA ((awareness/interest/desire/action)
9.12.2 DOGMAR ((defining advertising goals for measured advertising results:
unawareness/awareness/comprehension/conviction/ action)
9.13 Measure effectiveness
9.13.1 Advertising -> awareness ->research
Recall
Recognition
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9.13.2

9.13.3
9.13.4
9.13.5

Brand values
Product performance
Personal selling -> sales target
Profitability
New business
Customer retention
Customer satisfaction
Sales promotions ->breakeven
Direct mailing -> my regus
Public retention-> Advertise value equivalent AVE 'they don't have a coverage
for sponsorships'
Monitoring press
Radio
TV
9.13.6 Online marketing -> Google analytics
9.14 Developing customer retention strategies
9.14.1 Targeting customer for retention
9.14.2 Bonding
Level 1: financial incentives
Level 2: price incentive + social bonding / personalized relationship/ frequent
communication.
Level 3: financial + social+ structure bond+ providing solution.
9.14.3 Internal marketing ((focus on selection and retention of employees avoid
turnover))
9.14.4 Promise fulfillments (be realistic promises/ keep promises/ system service)
9.14.5 Building trust.
9.14.6 Service recovery.

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10 Unit (10): Agency and managing agency relationship

10.1 Agency selection
10.1.1 Area of expertise
10.1.2 Quality of existing clients
10.1.3 Reputation of principles
10.1.4 Fees
10.1.5 Resources
10.1.6 Geographical coverage

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11 Unit (11): Customer service and customer care

11.1 Marketing mix of service
11.1.1 People (training, retention)
11.1.2 Process
11.1.3 Physical evidence
11.1.4 Product customer perception of quality/ product offering & packages
11.1.5 Price
11.1.6 Place choosing a profitable site with traffic/ internet
11.1.7 Promotion: testimonials, referrals, word of mouth, material to be passed ,
viral marketing
11.2 Issues for service
11.2.1 Intangibility
11.2.2 Inseparability: with its owner
11.2.3 Perishability: no store
11.2.4 Heterogeneity : quality vary
11.3 Customer service quality (perception)
11.3.1 Technically: waiting time
11.3.2 Functional: measurable aspects
11.3.3 Expectation: level
11.4 Service & customer loyalty
11.4.1 Satisfaction is attitude give more than good service and value loyalty
is behavior
11.4.2 Economic effect of loyalty: Premium pricing // cost saving// income growth//
cost of acquisitions.
11.5 Creating a competitive advantage
11.5.1 Key sector
11.5.2 Product
11.5.3 Competitors
11.5.4 Service gap
11.5.5 Sustainability
11.6 Managing and improving service quality
Process
Reliability: consistent & dependable
People
Responsiveness: time to do it
Empathy: friendly and caring
Assurance: trust staff and quality
Physical evidence
Tangibles
11.6.1 Internal marketing is a key for good service
11.6.2 Differentiation from the quality of the service
11.7 Benefits of customers acquisition and retention
11.7.1 Improving acquisition
Acquire customer @lower cost
Acquire more customer for the same total cost
11.7.2 Improving retention lead to
Acquisition is expensive
Direct additional business
Efficient & lower operation cost
Customer referrals
Less sensitivity to the price
11.7.3 Improving profitability levels
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 Measure customer retention

key service issues
corrective actions
11.8 Monitoring quality service
11.8.1 Customer service tracking study
11.8.2 Quality maintenance index
11.8.3 Staff clients monitor
11.8.4 Risk point analysis
11.8.5 Service standards review

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12 Unit (12): Agency and managing agency relationship

12.1 Key account management
12.1.1 Strategic importance
12.1.2 Extensive sales management for future
12.1.3 Mutual gain between organizations
12.1.4 Ensure a certain level of satisfaction
12.1.5 Patreto's law 80/20
12.2 Criteria for selecting accounts
12.2.1 Profitability : current and historic trends
12.2.2 Potential : future growth rate "gazzale"
12.2.3 Annual turnover: volume
12.2.4 Brand associations
12.2.5 Relationship: additional business
12.3 Classifying Customers
Key development:
Key accounts:
- Develop your strength
- Strategic relation
- Investment is needed
Opportunistic accounts:
Maintenance account:
- Happy to deal without resources
- Manage effectively
- Don't waste resources
(telephone rather than a visit)
12.4 KAM Management
12.4.1 Sales executives
12.4.2 Key account division
12.4.3 Key account sales force
12.5 KAM Cycle
Pre KAM

Early KAM
(TEST)

MID KAM
(WORK
PROACTIVLY)

Partnership
KAM (FIRST
CHOIC)

Synergic KAM
(SYNERGIC
VALUE)

Uncoupling
KAM

Trust is essential for KAM push strategy

Relationship Regular high-quality personalized
12.6 Role of people in KAM
12.6.1 Problem solving
12.6.2 Relationship building
12.6.3 Communication
12.6.4 Personal selling
12.7 Role of marketing in KAM
12.7.1 Product: must support KAM future plans and ambitions
12.7.2 Price: take in consideration life time valye discounts may be offered for
loyalty - use loss leader pricing
12.7.3 Place: channel of distribution
12.7.4 Promotions: building a relationship , which is tailored for KA
12.7.5 Peole:
12.7.6 Process: speed agile
12.7.7 Physical evidence: professionalism

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13 Unit (13): Customer relationship

13.1 Customer relationship
13.1.1 Issues affect the relationship
Misconceptions (not receiving what expected
Inadequate resources
Inadequate delivery (Staff change for any / quality price / procedures )
Exaggerated promises (delivery dates / availability)
13.2 Partnership cycle
Partnership
Initiation
- Recognition of importance
- Interest generated + target
- Multiple relation contact
identified
- Matching product customer need
- Understand needs
Consolidations
Development
- Focus on building loyalty
- Demonstration of ability and
- Innovative offering
promises
- Support relationship

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