The global account management organisation

7 important questions on The global account management organisation

What is the definition of global account management?

A relationship-oriented marketing management approach focusing on dealing with the needs of an important flobal customer (an account) with a global organization (foreign subsidiaries all over the world)

What are the four steps of GAM (global account management)

  1. Identifying the selling firm's global accounts
  2. analysing the global accounts
  3. selecting suitable strategies for the global accounts
  4. developing operational level capabilities to build, grow and maintain profitable and long-lasting relationships with global accounts

Analysing global accounts include: (5)

  • The basic characteristics of a global account
  • the relationship history
  • the level and development of commitment to the relationship
  • goal congruence of the parties
  • switching costs
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The organizational set-up in GAM, three models:

  1. Central HQ-HQ negotiation model
  2. balanced negotiation model
  3. decentralized local-local negotiation model

What are the four characteristics of an central HQ-HQ negotiation model?

  • HQ-HQ negotiation
  • customer has a high degree of buying power - the supplier has less power
  • central control of decision-making in customer HQ
  • supplier is selling standardized products

What are the three characteristics of balanced negotiation model?

  • HQ-HQ negotiation is supplemented with local-local (per country) negotiation
  • balanced relationship between supplier and customer
  • requires a higher degree of coordination of relationship between supplier and customer

What are the two characteristics of decentralized local-local negotiation model?

  • Local-local (per country) negotiation
  • the customer has decentralized decision competencies to the local subsidiaries (country organizations) this may be an advantage for the supplier, because it can negotiate on a local basis and perhabs get better deals compared with HQ-HQ negotiations.

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