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Organizing For Advertising and Promotion in The Firm: The Client's Role

This document discusses different organizational structures companies use for advertising and promotion. It describes the centralized system, decentralized/brand management system, and in-house agency options. For each system it provides details on how responsibilities and decision making are structured, as well as advantages and disadvantages.

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Cristine Saludo
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© Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online on Scribd
166 views

Organizing For Advertising and Promotion in The Firm: The Client's Role

This document discusses different organizational structures companies use for advertising and promotion. It describes the centralized system, decentralized/brand management system, and in-house agency options. For each system it provides details on how responsibilities and decision making are structured, as well as advantages and disadvantages.

Uploaded by

Cristine Saludo
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Organizing for

Advertising and
Promotion in the
Firm:
The Client’s Role
Virtually every business organization uses
some form of marketing
communications.However,the way a
company organizes for these efforts
depends upon several factors include
-its size,
-the number of product it markets,
-the advertising & promotion budget &
-its marketing organization structure.
Many people both inside & outside the
organization have some input into the
advertising & promotion process,direct
responsibility for administering the
program must be assumed by someone
within the firm.
Options available with the company are
The Centralized System.
The Decentralized(Brand-
-Management) System.
An in-house agency.
The Centralized System
In many organizations,marketing
activities are divided along functional
lines, with advertising placed
alongside other marketing functions
such as sales,marketing research &
product planning.
The advertising department under
a centralized system.
President

Research& Human
Production Finance Marketing Development Resources

Product
Marketing Advertising Sales
Planning
Research
The advertising manager is
responsible for all
promotion activities except
sales.
In some companies this
individual have the title
Marketing Communications
Manager.
In a centralized system,advertising
manager controls entire promotion
Budgeting, operations including
Coordinating creation & production
of ads,
Planning media schedules &
Monitoring & administering the sales
promotions program for all the
company’s products or services.
The specific duties of advertising manager depends on
size of the firm & the importance it plays on promotional
programs.
Basic functions the manager
& staff perform include
Planning & Budgeting.
Administration & Execution.
Coordination with Other Departments
Coordination with Outside Agencies
& Services.
ADVANTAGES
 facilitated communications
Fewer personnel required
Continuity in staff
Allows for more top management
involvement
DISADVANTAGES
Less involvement with & understanding of
overall marketing goals
Longer response time
Inability to handle multiple product lines
The Decentralized System
Companies with separate
manufacturing,research &
development,sales & Marketing
departments for various
divisions,product lines or businesses.
Many companies using decentralized
system are
 Proctor & Gamble
Gillette Co.
Nestle
Such companies assign each product
or brand to a brand manager who is
responsible for total management of
the brand including
 planning,
 budgeting,
 Sales &
 profit performance.

The term Product Manager is also used


to describe this position.
A Decentralized Management System
Corporate

Research & Human


Production Finance Marketing
Development Resources

Product Marketing
Sales Services
Management
Brand Manager
Advertising Marketing
Ad Agency Department Research
Sales Promotion
Brand Manager Package Design
CATEGORY MANAGEMENT SYSTEM
Companies may have an additional layer of
management above the brand managers to
coordinate the efforts of all brand
managers handling a related group of
products.this system is category
management system.It include category as
well as brand & advertising managers.
The category managers oversees
management of entire product category &
focuses on the strategic role of various
brands in order to build profits & make
market share.
Procter & Gamble division using the
Category Management System
Vice president-Packaged Soap
& Detergent Division

Dishwashing Products Laundry products Specialty products


Category GM Category GM Category GM

Advertising Managers
Associate Advertising Managers
Brand Managers
Associate Brand Managers
ADVANTAGES
 Concentrated managerial attention.
 Rapid response to problems &
opportunities.
 Increased flexibilities.
DISADVANTAGES
 Ineffective decision making
 Internal conflicts
 Misallocation of funds
 Lack of authority
In-House Agency
An advertising agency that is set up,owned &
operated by advertiser.
Companies using in-house agencies are-
 Calvin Klein
 Avon
 Revlon
A major reason for using an In-House Agency
is to reduce advertising & promotion costs
ADVANTAGES
 Cost savings
 More control
 Increased coordination

DISADVANTAGES
 Less experience
 Less objectivity
 Less flexibility

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