3
Copyright 2012 McGraw-Hill Companies, Inc., All right reversed
Organizing for Advertising and
Promotion
Participants in the IMC Process
3-2
Organizing for Advertising & Promotions
The way a company (the client)
organizes depends on
Its size
The number of products it markets
The role of advertising and promotion in
the marketing mix
The budget
Its marketing organization structure
3-3
Advertising Dept. Under a Centralized System
President
President
Production
Production
Finance
Finance
Marketing
Marketing
research
research
Marketing
Marketing
Advertising
Advertising
Research
Research
and
and
developdevelopment
ment
Sales
Sales
Human
Human
resources
resources
Product
Product
planning
planning
3-4
Pros & Cons of a Centralized System
Pros
Better
Better
communications
communications
Fewer
Fewer
personnel
personnel
Cons
Hard
Hard to
to understand
understand
the
the overall
overall
marketing
marketing strategy
strategy
Longer
Longer
response
response time
time
Staff
Staff continuity
continuity
More
More top
top management
management
involvement
involvement
Impractical
Impractical for
for
multiple
multiple brands,
brands,
products,
products, divisions
divisions
3-5
Decentralized Advertising System
Corporate
Production
Finance
Sales
Marketing
Product
Management
Brand
Manager
Ad agency
Brand
Manager
Ad agency
Human
Resources
R&D
Marketing
services
Advertising
Dept
Marketing
Research
Sales promotion
Package design
Merchandising
3-6
Pros & Cons of Decentralization
Pros
Cons
Concentrated
Concentrated
managerial
managerial attention
attention
Ineffective
Ineffective decision
decision
making
making
Rapid
Rapid problem
problem and
and
opportunity
opportunity response
response
Internal
Internal conflicts
conflicts
Increased
Increased flexibility
flexibility
Misallocation
Misallocation of
of funds
funds
Lack
Lack of
of authority
authority
Internal
Internal focus
focus
3-7
Test Your Knowledge
Companies choose to use an in-house agency for all of
the following reasons except:
A) More closely tie the marketing function to
top management
B) Reduce advertising and promotions costs
C) In-house agencies are more stable
D) Tighter control over agency processes
E) To diversify the brand image
3-8
Pros & Cons of In-house Agencies
Pros
Cons
Cost
Cost savings
savings
Less
Less experience
experience
More
More control
control
Less
Less objectivity
objectivity
Increased
Increased coordination
coordination
Less
Less flexibility
flexibility
Stability
Stability
Less
Less access
access to
to top
top
creative
creative talent
talent
Access
Access to
to top
top
management
management
3-9
The Ad Agencys Role
Reasons for using an ad agency
Highly skilled specialists
Specialization in a particular industry
Objective viewpoint of the market
Broad range of experience
3-10
