Fixed-Cost/Royalty
Model
This mixed model can be applied to
a service such as Marketing Strategy formulation and implementation
(executor role). Specific activities within the Marketing Strategy (e.g.
Marcom activities) will be executed on a Fixed-Cost Model, while the
conceptualisation and monitoring activities will be on a Royalty Model.
The client organisation and we agree on the activities that will be
on a Fixed-Cost Model, and those on the Royalty Model: following which,
the relevant operating principles (described under the other models)
apply to the respective sets of activities. The Fixed-Cost/Royalty Model
allows the client organisation to hold us accountable for the success/failure
of the Marketing Strategy, rather than view us as just a consulting
set-up. |