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Major Account Management


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Old 06-29-2010, 07:55 AM
SaaraHarin SaaraHarin is offline
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Major accounts which are also called as single accounts are typically singled out for special attention. Important customers who have multiple divisions in many locations are offered major account contracts, which provide uniform pricing and coordinated services for all customer divisions. Large accounts are often handled by a strategic management account team with cross-functional personnel who handle all aspects of the relationship.

Major account management is growing. A buyer concentration increases through mergers and acquisitions. Fewer buyers account for a larger share of a company’s sales. Many buyers are centralizing their purchase for certain items, which gives them more bargaining power. Sellers in turn need to devote more attention to these major buyers. Still another factor is that, as products become more complex, more groups in the buyer’s organization become involved in the purchase process. The typical salesperson might not have the s****, authority or coverage to be effective in selling to the large buyer.

In selecting major accounts, companies look for accounts that purchase a high volume, purchase centrally, require a high level of service in several geographic locations, which may be price sensitive and may want a long term partnering relationship. Major accounts manager have lots of duties such as acting as the single point of contact, developing and growing customer business, understanding customer decision process, identifying value added opportunities, providing competitive intelligence, negotiating sales and channeling customer service. Major accounts manages is typically evaluated on their effectiveness in growing their share of accounts business and on their achievement of annual profit and sales volume goals. There is always a risk that competitors match or beat a price that we have fixed or increased cost may lead to rise in price. So models, whether it is media based model or photo models for hire, the choice should be based on the cost involved in hiring them and the cost benefit analysis of our business.

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