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Global Account

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Submitted By mike2014
Words 6365
Pages 26
Key to key account management: relationship (guanxi) model
Y.H. Wong
Department of Business Studies, Hong Kong Polytechnic University, Kowloon, Hong Kong
Introduction There are three major marketing problems facing most international firms today: the difficulty, arising from product range diversity, of segmenting its customers and maintaining long-term relationships with key customers; second, the obstacles of obtaining long-term business contracts from big multinationals; and third, how do the firms evaluate the relationship quality of their key customers? McDonnell Douglas, Peugeot and Japanese retailer Yaohan are all fighting for higher market shares in China because they are shaken down by the Government’s policy swings and railroaded into bad partnerships with key customers who mainly squeeze for advanced technology (Clifford et al., 1997). Many companies receive a big percentage of their sales from relatively few customers. Key account management has been increasingly important in international markets. Key account programs differ considerably across countries and firms, but all organizations have to decide how to identify their own major accounts and how to organize for effective relationship building with them. The purpose of this article is to assist organizations to determine the positioning of their major customer relationships so as to formulate key account relationship marketing strategies and implement them effectively in China and other Asian countries. This article describes a key account relationship model with an empirical survey on the measurement components of the model. The findings of the study are to test the practical value of the model. Then, conclusions about the research questions are given in the form of various perspectives and perceptions. Finally, a summary of both theoretical and practical implications for business practice and

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