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Internal marketing and relationship marketing 42 Two-way dialogue between management and staff. Role of senior managers is one of facilitator rather than leader or decision maker. The strategic direction of the company is developed jointly from the experiences and knowledge of staff and customers. Relationship-based internal marketing MANAGING CHANGE AND INTERNAL MARKETING n The skills and resources available are also important factors in successfully completing a change programme. Consider particularly the soft skills, using a model such as the 7-S framework, n Consider both the approaches to the processes involved in change and the way in which those processes may be phased in order to achieve sustained change n Change may be achieved in different ways according to the organizational context.
For example, stating values as ‘highest quality’ or as ‘teamwork’ will not be embraced where people in the organization know and see ‘average quality’ as the accepted standard and a culture of ‘blame’ to be pervasive. 5. Organizational structure should facilitate vision and values and the latter should influence recruitment, training, reward and promotion, if this is to become ‘embedded’ in the organization. 6. Link branding to vision and values and ensure this addresses the needs of all stakeholders.
Three methods of measuring this Shareholder Added Value are considered. Accounting systems and value added MANAGING MARKETING PERFORMANCE 51 Return on capital employed (ROCE) ROCE ¼ Earnings before interest and tax Â100% Capital employed Doyle is critical of this measure because the value of earnings (which includes the value of assets) may be arbitrary and subject to risk. The figure in brackets is effectively the return that could have been secured by investing that capital elsewhere. EVA ¼ Net operating profits after tax À (capital invested Â weighted average cost of that capital) This is simply the amount by which the return on an investment exceeds the cost of the capital required for that investment.