When should an Account be created

Hello,
We are in a stand still with the business decision of when to create an Account. Reviewing your definition of an account as follows, “Accounts are generally companies that you do business with, but you can also track partners and competitors as accounts. The Account pages in Oracle CRM On Demand allow you to create, update, and track accounts.”, some business users are interpreting the part “you do business with” as meaning you only create an account if you have specific sales business with the company. Another set of business users believe that you should create an Account if you plan on nurturing a future, potential customer. IE – a lead comes into Marketing and is handed over to Sales. Sales, after some work, rejects the lead as “No Current Business”, Marketing, if they see value, convert the lead to an Account/Contact if they want to keep for future marketing campaigns, email blasts, etc ?
I am hoping that I can gather some opinions here to use to make my case that it is very appropriate to create an Account/Contact for a nurture-worthy lead.

Hi,
Leverage the "Account Type" field to classify an account record as a customer or a suspect or a prospect or a competitor or a partner or anything as long it is a company / organization. The notion of Business in the definition not necessarily means that you have a sales contract with them. This is how it is generally used in other implementations too.
-- Venky CRMIT

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