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ABB AND CATERPILLAR

(A): KEY ACCOUNT


MANAGEMENT
B2B MARKETING

Q1. What are the specific payoffs for both customer and supplier if they can achieve a true
win-win partnership?
Ans: To achieve a win-win partnership, the BU and the KAM should work together and resolve
internal conflicts, before resolving issues with the customers. The key points are:

There is a need for ABBs whole turbocharger unit to work as a team


o KAM (Key account management) helps generate more sales from the same
customer
o Follows the principle of sell more to existing customers
o Key account manager should invest time in building relation with the client, but
along with the team
Proper division of responsibilities
o Who makes the final decision?
o Where should the P&L finally lie?

The specific payoffs for the stakeholders involved are:


CUSTOMER

A key account of ABB makes Caterpillar enjoy individualized attention and the best
service from ABB
Lesser conflicts result in easier decision making and arriving at a consensus with
minimum hassles
Change in relationship from a supplier to a partner
New opportunities to add value to Caterpillar will be unearthed
Proper scheduling of meetings and less confusion created

SUPPLIER

Increase in topline revenue more business from the same customer


Better customer management working groups overviewed by a steering committee
could resolve significant issues
Better tapping of resources sales reps and support personnel in various divisions are
effectively used
More likely to gain access to executive level meetings

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