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ISB MBA Admissions & Related Blogs

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Senior Manager
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Posts: 269
Hello world!  [#permalink]

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New post 22 Nov 2019, 07:35
FROM ISB Admissions Blog: Hello world!
Welcome to ISB Institute of Data Science (IIDS) blog.
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Senior Manager
Senior Manager
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Joined: 20 Nov 2013
Posts: 269
Family Business Updates: November 22, 2019  [#permalink]

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New post 22 Nov 2019, 07:35
FROM ISB Admissions Blog: Family Business Updates: November 22, 2019
Sony in talks to buy stake in Mukesh Ambani’s Network18 TV media group – https://www.business-standard.com/article/companies/sony-in-talks-to-buy-stake-in-mukesh-ambani-s-network18-tv-media-group-119112100508_1.html

Wingreens Farms raises ₹125 cr from responsAbility Investments, Sequoia India – https://www.livemint.com/companies/news/wingreens-farms-raises-rs-125-cr-from-responsability-investments-sequoia-india-11574135095189.html

Wipro, Finland varsity sign pact to develop 5G, 6G wireless technologies – https://www.business-standard.com/article/news-ani/wipro-signs-pact-with-finland-s-university-on-5g-6g-technologies-119111901272_1.html

Changing times are impacting family businesses worldwide- https://economictimes.indiatimes.com/news/company/corporate-trends/changing-times-are-impacting-family-businesses-worldwide/articleshow/71935809.cms?from=mdr

Family owned Fiat Chrysler, LVMH move on Multi-Billion Dollar Mergers – http://www.campdenfb.com/article/family-owned-fiat-chrysler-lvmh-move-multi-billion-dollar-mergers
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Manager
Manager
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Joined: 13 May 2014
Posts: 54
Hello world!  [#permalink]

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New post 22 Nov 2019, 07:36
FROM ISB PGP Admissions Director Blog: Hello world!
Welcome to ISB Institute of Data Science (IIDS) blog.
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Manager
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Joined: 13 May 2014
Posts: 54
Family Business Updates: November 22, 2019  [#permalink]

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New post 22 Nov 2019, 07:36
FROM ISB PGP Admissions Director Blog: Family Business Updates: November 22, 2019
Sony in talks to buy stake in Mukesh Ambani’s Network18 TV media group – https://www.business-standard.com/article/companies/sony-in-talks-to-buy-stake-in-mukesh-ambani-s-network18-tv-media-group-119112100508_1.html

Wingreens Farms raises ₹125 cr from responsAbility Investments, Sequoia India – https://www.livemint.com/companies/news/wingreens-farms-raises-rs-125-cr-from-responsability-investments-sequoia-india-11574135095189.html

Wipro, Finland varsity sign pact to develop 5G, 6G wireless technologies – https://www.business-standard.com/article/news-ani/wipro-signs-pact-with-finland-s-university-on-5g-6g-technologies-119111901272_1.html

Changing times are impacting family businesses worldwide- https://economictimes.indiatimes.com/news/company/corporate-trends/changing-times-are-impacting-family-businesses-worldwide/articleshow/71935809.cms?from=mdr

Family owned Fiat Chrysler, LVMH move on Multi-Billion Dollar Mergers – http://www.campdenfb.com/article/family-owned-fiat-chrysler-lvmh-move-multi-billion-dollar-mergers
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Senior Manager
Senior Manager
User avatar
Joined: 20 Nov 2013
Posts: 269
Breaking New Ground with Binet and Field’s latest B2B Research  [#permalink]

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New post 25 Nov 2019, 00:00
FROM ISB Admissions Blog: Breaking New Ground with Binet and Field’s latest B2B Research
B2B is estimated to be a $1 trillion global market opportunity. A recent study by NetApp and Zinnov shows that between 2014 and 2018, the number of B2B startups in India more than tripled from 900 to 3,200. B2B startups grew from 26% in 2014 to 43% in 2018 as a percentage of total tech startups. There has also been an exponential growth in venture capital funding, a whopping 364% in five years*. Indian B2B startups have already raised more funds in the first five months of 2019, around $3.35 billion, than in all of the previous year. Of the 23 Indian unicorns, 6 are in the B2B space. There are several reasons why the B2B space is attracting investors, which primarily fall in three buckets – ability to start small and scale, management talent and global scope. “The lure of Indian B2B startups lie in their potential to disrupt specific areas of large industries by building tech-based enterprise solutions that can be applied at a global level. **” It is therefore important to support this growing ecosystem with insights to help them successfully leverage marketing to grow. The purpose of this essay is to summarize the 5 principles that B2B companies should follow for effective marketing to drive growth.

Key takeaways from the Report:

The most important thing about this report is that it is not Trends but rather Principles*** . In several cases, the Benet and Field principles show that what B2B Marketers are actually doing is the EXACT opposite of what they should be doing, based on the recommendations in this report! The first takeaway is that following what is “trendy” doesn’t actually make it good for business! Let take a quick look at the 5 principles:

1. Heuristics is key to B2B Marketing: Many B2B campaigns are focused on enabling the buying cycle with rational advertising i.e. relevant and functional product information. B2B marketers often don’t think appealing to emotion makes sense, but this assumes that B2B buyers aren’t human! The human brain looks for mental shortcuts, also known as heuristics, when making decisions. Benet and Field use the phrase “mental availability” which is based on the rule of thumb, given a choice between several options, people tend to prefer the one that comes to mind most easily. Think of “No one gets fired for buying IBM.” Campaigns that aim to increase the firm’s share of mind and make them more famous, see better business results. Put simply, it’s time to get emotional in B2B.

2. Hunt or die: There are 3 types of marketing strategies: acquisition, loyalty/retention and the combination, which we call reach. Which do you think is the best strategy, of course, like anything, the combination? But which do you think is the second best? Many in B2B assume its mining your existing customers, because that’s what sales asks for right? It is actually acquisition marketing. Brands who talk to the most people in the market (customers and non-customers), most often, tend to have higher mental availability than their peers.

3. Advertising for growth vs. awareness: Most marketers think of advertising for when a company is new, i.e. to drive awareness. In B2B, companies can actually do quite well without advertising in its first few years because it has a sales team, decent products at the right price and word of mouth and repeat business can sustain them. B2B actually needs to think about advertising when organic growth slows down and they have captured the low hanging fruit. Targeting does not have to be mass but should include those who are not yet in the buying role now but whose career paths will lead them there. These Buy “later” customers are different but as important as Buy “now” customers and need a different marketing mix.

4. From defense to offence: Many marketers assume that if they focus on performance marketing and digital instead of advertising, they will be more relevant to the business. This is partly true. These activities are good for short term selling and they can demonstrate quick wins. But this short term gratification becomes a vicious circle. Only 4% of B2B marketers measure impact beyond 6 months. Building brand is a long term strategy that pays off in years, not months, so no wonder there is no data to back up the effectiveness of brand. Until now! Benet and Field recommend investing in Brand; their research shows that brand building reduces price sensitivity and increases margins and therefore profit. So the message is stop playing defence and go on the offensive. Make the business case for both brand and demand. Based on the research, follow the 50/50 rule in B2B, 80/20 for financial services, 60/40 for other B2C.

5. Marketing should own the market share mandate: There is a lot of chatter about CMOs being replaced with Chief Growth Officers. The interesting opportunity for CMOs is that they have the best lever for growth in THEIR arsenal, which is brand building. CMOs shouldn’t be on the defensive about owning advertising and brand. This could be the key for the company’s growth. How do you measure marketing’s impact on growth? The study postulates that Share of Voice is the right metric for B2B Marketers who want to lead the growth agenda of their company (read: to transform into chief growth officers). Some hard numbers to benchmark against: 10% extra share of voice causes market share to rise by .7% in B2B and 1.5% in Financial Services, which are both the largest categories for us at LinkedIn, interestingly. Retail and FMCG which spend much more on advertising only see a .2-.3% lift for every 10% extra share of voice.

Research Methodology and Sponsor:

The B2B Institute is a think tank, funded by LinkedIn, partnered with Les Benet and Peter Field, two of the greatest marketing minds of our time, over the last 2 years to produce a report called “The 5 Principles of Growth in B2B Marketing”. It is based on data from almost 1500 marketing and advertising campaigns that has been collected since 2006, so over 20 years, in the IPA database. About 50 of these are pure B2B.

Summarized by Virginia Sharma: Director Marketing Solutions LinkedIn.

Download the full report at b2binstitute.org

* https://yourstory.com/2019/05/b2b-tech- ... app-zinnov

**https://yourstory.com/2019/05/b2b-startups-tiger-global-india-funding-investor-interest

***The reason for this distinction is that Linkedin also runs annual surveys of B2B Marketers and puts out separate trends reports of what B2B marketers actually do.
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Manager
Manager
avatar
Joined: 13 May 2014
Posts: 54
Breaking New Ground with Binet and Field’s latest B2B Research  [#permalink]

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New post 25 Nov 2019, 00:01
FROM ISB PGP Admissions Director Blog: Breaking New Ground with Binet and Field’s latest B2B Research
B2B is estimated to be a $1 trillion global market opportunity. A recent study by NetApp and Zinnov shows that between 2014 and 2018, the number of B2B startups in India more than tripled from 900 to 3,200. B2B startups grew from 26% in 2014 to 43% in 2018 as a percentage of total tech startups. There has also been an exponential growth in venture capital funding, a whopping 364% in five years*. Indian B2B startups have already raised more funds in the first five months of 2019, around $3.35 billion, than in all of the previous year. Of the 23 Indian unicorns, 6 are in the B2B space. There are several reasons why the B2B space is attracting investors, which primarily fall in three buckets – ability to start small and scale, management talent and global scope. “The lure of Indian B2B startups lie in their potential to disrupt specific areas of large industries by building tech-based enterprise solutions that can be applied at a global level. **” It is therefore important to support this growing ecosystem with insights to help them successfully leverage marketing to grow. The purpose of this essay is to summarize the 5 principles that B2B companies should follow for effective marketing to drive growth.

Key takeaways from the Report:

The most important thing about this report is that it is not Trends but rather Principles*** . In several cases, the Benet and Field principles show that what B2B Marketers are actually doing is the EXACT opposite of what they should be doing, based on the recommendations in this report! The first takeaway is that following what is “trendy” doesn’t actually make it good for business! Let take a quick look at the 5 principles:

1. Heuristics is key to B2B Marketing: Many B2B campaigns are focused on enabling the buying cycle with rational advertising i.e. relevant and functional product information. B2B marketers often don’t think appealing to emotion makes sense, but this assumes that B2B buyers aren’t human! The human brain looks for mental shortcuts, also known as heuristics, when making decisions. Benet and Field use the phrase “mental availability” which is based on the rule of thumb, given a choice between several options, people tend to prefer the one that comes to mind most easily. Think of “No one gets fired for buying IBM.” Campaigns that aim to increase the firm’s share of mind and make them more famous, see better business results. Put simply, it’s time to get emotional in B2B.

2. Hunt or die: There are 3 types of marketing strategies: acquisition, loyalty/retention and the combination, which we call reach. Which do you think is the best strategy, of course, like anything, the combination? But which do you think is the second best? Many in B2B assume its mining your existing customers, because that’s what sales asks for right? It is actually acquisition marketing. Brands who talk to the most people in the market (customers and non-customers), most often, tend to have higher mental availability than their peers.

3. Advertising for growth vs. awareness: Most marketers think of advertising for when a company is new, i.e. to drive awareness. In B2B, companies can actually do quite well without advertising in its first few years because it has a sales team, decent products at the right price and word of mouth and repeat business can sustain them. B2B actually needs to think about advertising when organic growth slows down and they have captured the low hanging fruit. Targeting does not have to be mass but should include those who are not yet in the buying role now but whose career paths will lead them there. These Buy “later” customers are different but as important as Buy “now” customers and need a different marketing mix.

4. From defense to offence: Many marketers assume that if they focus on performance marketing and digital instead of advertising, they will be more relevant to the business. This is partly true. These activities are good for short term selling and they can demonstrate quick wins. But this short term gratification becomes a vicious circle. Only 4% of B2B marketers measure impact beyond 6 months. Building brand is a long term strategy that pays off in years, not months, so no wonder there is no data to back up the effectiveness of brand. Until now! Benet and Field recommend investing in Brand; their research shows that brand building reduces price sensitivity and increases margins and therefore profit. So the message is stop playing defence and go on the offensive. Make the business case for both brand and demand. Based on the research, follow the 50/50 rule in B2B, 80/20 for financial services, 60/40 for other B2C.

5. Marketing should own the market share mandate: There is a lot of chatter about CMOs being replaced with Chief Growth Officers. The interesting opportunity for CMOs is that they have the best lever for growth in THEIR arsenal, which is brand building. CMOs shouldn’t be on the defensive about owning advertising and brand. This could be the key for the company’s growth. How do you measure marketing’s impact on growth? The study postulates that Share of Voice is the right metric for B2B Marketers who want to lead the growth agenda of their company (read: to transform into chief growth officers). Some hard numbers to benchmark against: 10% extra share of voice causes market share to rise by .7% in B2B and 1.5% in Financial Services, which are both the largest categories for us at LinkedIn, interestingly. Retail and FMCG which spend much more on advertising only see a .2-.3% lift for every 10% extra share of voice.

Research Methodology and Sponsor:

The B2B Institute is a think tank, funded by LinkedIn, partnered with Les Benet and Peter Field, two of the greatest marketing minds of our time, over the last 2 years to produce a report called “The 5 Principles of Growth in B2B Marketing”. It is based on data from almost 1500 marketing and advertising campaigns that has been collected since 2006, so over 20 years, in the IPA database. About 50 of these are pure B2B.

Summarized by Virginia Sharma: Director Marketing Solutions LinkedIn.

Download the full report at b2binstitute.org

* https://yourstory.com/2019/05/b2b-tech- ... app-zinnov

**https://yourstory.com/2019/05/b2b-startups-tiger-global-india-funding-investor-interest

***The reason for this distinction is that Linkedin also runs annual surveys of B2B Marketers and puts out separate trends reports of what B2B marketers actually do.
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Senior Manager
Senior Manager
User avatar
Joined: 20 Nov 2013
Posts: 269
Family Business Updates: December 02, 2019  [#permalink]

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New post 02 Dec 2019, 01:00
FROM ISB Admissions Blog: Family Business Updates: December 02, 2019
Mukesh Ambani first Indian with wealth of Rs 5 lakh crore – https://www.businesstoday.in/top-story/mukesh-ambani-wealth-tops-rs-5-lakh-crore-first-for-an-indian/story/391152.html

Sony, RIL’s TV18 may form joint venture for entertainment business- //economictimes.indiatimes.com/articleshow/72286053.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Philanthropy is much more complex than running a business: Azim Premji – 

https://economictimes.indiatimes.com/ne ... 177071.cms

Asia’s next generation looks outside the family business- https://www.ft.com/content/08b2e4f8-efff-11e9-a55a-30afa498db1b

Arnault Family Owned LVMH buys Tiffany and Company for $ 16 Billion – http://www.campdenfb.com/article/arnault-family-owned-lvmh-buys-tiffany-co-16-billion
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Manager
Manager
avatar
Joined: 13 May 2014
Posts: 54
Family Business Updates: December 02, 2019  [#permalink]

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New post 02 Dec 2019, 01:01
FROM ISB PGP Admissions Director Blog: Family Business Updates: December 02, 2019
Mukesh Ambani first Indian with wealth of Rs 5 lakh crore – https://www.businesstoday.in/top-story/mukesh-ambani-wealth-tops-rs-5-lakh-crore-first-for-an-indian/story/391152.html

Sony, RIL’s TV18 may form joint venture for entertainment business- //economictimes.indiatimes.com/articleshow/72286053.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Philanthropy is much more complex than running a business: Azim Premji – 

https://economictimes.indiatimes.com/ne ... 177071.cms

Asia’s next generation looks outside the family business- https://www.ft.com/content/08b2e4f8-efff-11e9-a55a-30afa498db1b

Arnault Family Owned LVMH buys Tiffany and Company for $ 16 Billion – http://www.campdenfb.com/article/arnault-family-owned-lvmh-buys-tiffany-co-16-billion
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Senior Manager
Senior Manager
User avatar
Joined: 20 Nov 2013
Posts: 269
Family Business Updates: December 06, 2019  [#permalink]

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New post 05 Dec 2019, 22:00
FROM ISB Admissions Blog: Family Business Updates: December 06, 2019
Godrej Appliances to invest Rs 700 cr in capacity expansion over next 3 yrs – https://www.business-standard.com/article/pti-stories/godrej-appliances-to-invest-rs-700-cr-in-capacity-expansion-over-next-3-yrs-119112500277_1.html

Welspun Groups family office acquired a majority stake in One Industrial platform-

//economictimes.indiatimes.com/articleshow/72388307.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Tata Motors revs up on rising JLR sales, but the road ahead is mistyhttps://www.livemint.com/market/mark-to-market/tata-motors-revs-up-on-rising-jlr-sales-but-the-road-ahead-is-misty-11575570763790.html

Mahindra picks 36.63% stake in Meru, gets right to appoint majority of directors – https://www.livemint.com/companies/news/mahindra-picks-36-63-stake-in-meru-gets-right-to-appoint-majority-of-directors-11575554889800.html

Philanthropy in India needs to step up to address societal challenges: Rohini Nilekani – https://www.livemint.com/news/india/philanthropy-in-india-needs-to-step-up-to-address-societal-challenges-rohini-nilekani-11575570067682.html

 

ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Manager
Manager
avatar
Joined: 13 May 2014
Posts: 54
Family Business Updates: December 06, 2019  [#permalink]

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New post 05 Dec 2019, 22:01
FROM ISB PGP Admissions Director Blog: Family Business Updates: December 06, 2019
Godrej Appliances to invest Rs 700 cr in capacity expansion over next 3 yrs – https://www.business-standard.com/article/pti-stories/godrej-appliances-to-invest-rs-700-cr-in-capacity-expansion-over-next-3-yrs-119112500277_1.html

Welspun Groups family office acquired a majority stake in One Industrial platform-

//economictimes.indiatimes.com/articleshow/72388307.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Tata Motors revs up on rising JLR sales, but the road ahead is mistyhttps://www.livemint.com/market/mark-to-market/tata-motors-revs-up-on-rising-jlr-sales-but-the-road-ahead-is-misty-11575570763790.html

Mahindra picks 36.63% stake in Meru, gets right to appoint majority of directors – https://www.livemint.com/companies/news/mahindra-picks-36-63-stake-in-meru-gets-right-to-appoint-majority-of-directors-11575554889800.html

Philanthropy in India needs to step up to address societal challenges: Rohini Nilekani – https://www.livemint.com/news/india/philanthropy-in-india-needs-to-step-up-to-address-societal-challenges-rohini-nilekani-11575570067682.html

 

ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
Senior Manager
Senior Manager
User avatar
Joined: 20 Nov 2013
Posts: 269
Top 5 Benefits to Businesses from Key Account Management  [#permalink]

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New post 10 Dec 2019, 00:00
FROM ISB Admissions Blog: Top 5 Benefits to Businesses from Key Account Management
Image

According to a recent Harvard Business Review article, depending on the industry, acquiring a new customer is 5 to 25 times more expensive than retaining an existing one. Moreover, in business markets, key customers account for greater amounts of suppliers’ business. For example, Walmart contributes to about 20% of P&G’s business. Similarly, Tetra Pak earns 50% of its revenues from 50 key customers. Furthermore, firms are increasingly consolidating their suppliers. Airbus reduced its supplier portfolio by 80% to work with few suppliers in a closer manner. Old fashioned sales approaches and reactive tactics are not very helpful in a rapidly changing business-to-business (B2B) environment. But what is more important to be successful in today’s highly competitive business markets is establishing, maintaining, and growing long-term customer relationships. Key account management focuses on all activities that will help firms establish, maintain, and grow key customer relationships in business markets. The goal of key account management is gaining sustainable competitive advantage, leading to profitability. The benefits of key account management for firms competing in the B2B space are plenty.

Understand customers better: In business markets, almost every customer needs a customized offering and, therefore, a deep understanding of the customer is very important. One of the important benefits of key account management is getting a better understanding of the customer. Firms can meet the needs of their customers in a proactive manner if they understand their customers well. This will also help firms to focus more on solving customer problems, which is more important in business markets.

Build better relationships with customers: Companies focusing on key account management develop individual relationships so that each customer becomes more loyal. Loyal customers offer companies several advantages – they bring more revenues, they recommend your product and services to others, and they continue to work with you on a long-term basis. The customer relationships in business markets can last very long, sometimes to perpetuity.

Increase customer satisfaction: Investing more resources to develop key account relationships will help companies focus more on fulfillment of customer needs (e.g., responding to customers quickly, just in time delivery, accurate order fulfilment), which will in turn increase customer satisfaction. Satisfied customers will not only bring more revenues, but also recommend your products and services to their peers and other connections.

Increase long-term customer value: The focus of key account management is adding value to customer relationships that will further lead to retention and realization of long-term customer value. According to Bain & Company’s research, based on the industry, 5% growth in customer retention rate can result in 25 to 95% growth in company’s revenues. The more the value you show to your customer, the more they will be willing to invest in your relationship.

Gain competitive advantage in the marketplace: The ultimate goal of key account management is to help firms gain competitive advantage in the marketplace by establishing, maintaining, and growing long-term customer relationships. Firms can gain advantages of both economies of scale and scope by working closely with key customers. Building strong relationships with key customers will provide strategic advantage to firms over their competitors, which will in turn lead to superior financial performance of firms.

Written By: Professor Kiran Pedada (Assistant Professor: Marketing), Indian School of Business.
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
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Top 5 Benefits to Businesses from Key Account Management  [#permalink]

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New post 10 Dec 2019, 00:01
FROM ISB PGP Admissions Director Blog: Top 5 Benefits to Businesses from Key Account Management
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According to a recent Harvard Business Review article, depending on the industry, acquiring a new customer is 5 to 25 times more expensive than retaining an existing one. Moreover, in business markets, key customers account for greater amounts of suppliers’ business. For example, Walmart contributes to about 20% of P&G’s business. Similarly, Tetra Pak earns 50% of its revenues from 50 key customers. Furthermore, firms are increasingly consolidating their suppliers. Airbus reduced its supplier portfolio by 80% to work with few suppliers in a closer manner. Old fashioned sales approaches and reactive tactics are not very helpful in a rapidly changing business-to-business (B2B) environment. But what is more important to be successful in today’s highly competitive business markets is establishing, maintaining, and growing long-term customer relationships. Key account management focuses on all activities that will help firms establish, maintain, and grow key customer relationships in business markets. The goal of key account management is gaining sustainable competitive advantage, leading to profitability. The benefits of key account management for firms competing in the B2B space are plenty.

Understand customers better: In business markets, almost every customer needs a customized offering and, therefore, a deep understanding of the customer is very important. One of the important benefits of key account management is getting a better understanding of the customer. Firms can meet the needs of their customers in a proactive manner if they understand their customers well. This will also help firms to focus more on solving customer problems, which is more important in business markets.

Build better relationships with customers: Companies focusing on key account management develop individual relationships so that each customer becomes more loyal. Loyal customers offer companies several advantages – they bring more revenues, they recommend your product and services to others, and they continue to work with you on a long-term basis. The customer relationships in business markets can last very long, sometimes to perpetuity.

Increase customer satisfaction: Investing more resources to develop key account relationships will help companies focus more on fulfillment of customer needs (e.g., responding to customers quickly, just in time delivery, accurate order fulfilment), which will in turn increase customer satisfaction. Satisfied customers will not only bring more revenues, but also recommend your products and services to their peers and other connections.

Increase long-term customer value: The focus of key account management is adding value to customer relationships that will further lead to retention and realization of long-term customer value. According to Bain & Company’s research, based on the industry, 5% growth in customer retention rate can result in 25 to 95% growth in company’s revenues. The more the value you show to your customer, the more they will be willing to invest in your relationship.

Gain competitive advantage in the marketplace: The ultimate goal of key account management is to help firms gain competitive advantage in the marketplace by establishing, maintaining, and growing long-term customer relationships. Firms can gain advantages of both economies of scale and scope by working closely with key customers. Building strong relationships with key customers will provide strategic advantage to firms over their competitors, which will in turn lead to superior financial performance of firms.

Written By: Professor Kiran Pedada (Assistant Professor: Marketing), Indian School of Business.
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Family Business Updates: December 13, 2019  [#permalink]

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New post 13 Dec 2019, 00:00
FROM ISB Admissions Blog: Family Business Updates: December 13, 2019
How a simple snack took a Bikaner family from a small chawl to the list of billionaires – http://www.forbesindia.com/article/india-rich-list-2019/indias-richest-2019-haldirams-incredible-success-story/56469/1

Cholamandalam to raise ₹1,000 crore via QIP – https://www.livemint.com/companies/news/cholamandalam-to-raise-1-000-crore-via-qip-11576167702375.html

Qatar to invest $450 million in Adani’s Mumbai power business –https://www.livemint.com/companies/news/qatar-to-invest-450-million-in-adani-s-mumbai-power-business-11576089613083.html

 

De Benedetti Family Sells Italy’s Biggest Media Group Gedi to Agnelli Family – http://www.campdenfb.com/article/de-benedetti-family-sells-italy-s-biggest-media-group-gedi-agnelli-family

 

India’s top business tycoons of 2019 – https://www.businessinsider.in/business/news/the-parents-of-the-toddler-who-fell-from-the-11th-floor-of-a-royal-caribbean-cruise-ship-are-suing-the-company/articleshow/72482793.cms
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
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Family Business Updates: December 13, 2019  [#permalink]

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New post 13 Dec 2019, 00:01
FROM ISB PGP Admissions Director Blog: Family Business Updates: December 13, 2019
How a simple snack took a Bikaner family from a small chawl to the list of billionaires – http://www.forbesindia.com/article/india-rich-list-2019/indias-richest-2019-haldirams-incredible-success-story/56469/1

Cholamandalam to raise ₹1,000 crore via QIP – https://www.livemint.com/companies/news/cholamandalam-to-raise-1-000-crore-via-qip-11576167702375.html

Qatar to invest $450 million in Adani’s Mumbai power business –https://www.livemint.com/companies/news/qatar-to-invest-450-million-in-adani-s-mumbai-power-business-11576089613083.html

 

De Benedetti Family Sells Italy’s Biggest Media Group Gedi to Agnelli Family – http://www.campdenfb.com/article/de-benedetti-family-sells-italy-s-biggest-media-group-gedi-agnelli-family

 

India’s top business tycoons of 2019 – https://www.businessinsider.in/business/news/the-parents-of-the-toddler-who-fell-from-the-11th-floor-of-a-royal-caribbean-cruise-ship-are-suing-the-company/articleshow/72482793.cms
ForumBlogs - GMAT Club’s latest feature blends timely Blog entries with forum discussions. Now GMAT Club Forums incorporate all relevant information from Student, Admissions blogs, Twitter, and other sources in one place. You no longer have to check and follow dozens of blogs, just subscribe to the relevant topics and forums on GMAT club or follow the posters and you will get email notifications when something new is posted. Add your blog to the list! and be featured to over 300,000 unique monthly visitors
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Family Business Updates: December 13, 2019   [#permalink] 13 Dec 2019, 00:01

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