Key account management controlling
In the previous chapter on relationship marketing and particularly on key account management it has become clear that the underlying motivations of implementing a customer-focused marketing organization like key account management is not meant to merely create value for customers, but profit for the supplying company, which has to be seen as “a consequence of value creation” [Reichheld 1996, p. 3].168 Although customer satisfaction, i.e. meeting the customers’ often individualized needs, appears to be the prime force for being market oriented, customer focus advocates have never left real doubt as to why organizations should focus on their customers: to generate customer loyalty and a stream of future profits and growth [Boyce 2000, p. 657]. As a consequence “[…] from the firm’s standpoint, not all relationships should be pursued” as they may not be economically sensible either for the supplier or for the customer [Blois 1996b, p. 181; Hogan et al. 2002b, p. 6].169 “What is needed is a model that optimizes the firm’s strategy by balancing the customer’s desired level of relationship against the profitability of doing so.” [Hogan et al. 2002b, p. 6].170
KeywordsSales Volume Relationship Marketing Organizational Science Business Relationship Transaction Cost Economic
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