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Belch: Advertising and
Promotion, Sixth Edition
II. Integrated Marketing
Program Situation Analysis
3. Organizing for
Advertising & Promotion
term product manager is also used to describe this position.) The brand manager, who
may have one or more assistant brand managers, is also responsible for the planning,
implementation, and control of the marketing program. 1
Under this system, the responsibilities and functions associated with advertising
and promotions are transferred to the brand manager, who works closely with the outside
advertising agency and other marketing communications specialists as they
develop the promotional program. 2 In a multiproduct firm, each brand may have its
own ad agency and may compete against other brands within the company, not just
against outside competitors. For example, Exhibit 3-2 shows ads for Tide and ERA,
which are both Procter & Gamble products that compete for a share of the laundry
detergent market.
As shown in Figure 3-3, the advertising department is part of marketing services
and provides support for the brand managers. The role of marketing services is to
assist the brand managers in planning and coordinating the integrated marketing communications
program. In some companies, the marketing services group may include
sales promotion. The brand managers may work with sales promotion people to
develop budgets, define strategies, and implement tactical executions for both trade
and consumer promotions. Marketing services may also provide other types of support
services, such as package design and merchandising.
Some companies may have an additional layer(s) of management above the brand
managers to coordinate the efforts of all the brand managers handling a related group
of products. An example is the organizational structure of Procter & Gamble, shown in
Figure 3-4. This system—generally referred to as a category management system—
includes category managers as well as brand and advertising managers. The category
manager oversees management of the entire product category and focuses on the
strategic role of the various brands in order to build profits and market share. 3
The advertising manager may review and evaluate the various parts of the program
and advise and consult with the brand managers. This person may have the authority
to override the brand manager’s decisions on advertising. In some multiproduct firms
that spend a lot on advertising, the advertising manager may coordinate the work of
the various agencies to obtain media discounts for the firm’s large volume of media
purchases.
An advantage of the decentralized system is that each brand receives concentrated
managerial attention, resulting in faster response to both problems and opportunities.
The brand manager system is also more flexible and makes it easier to adjust various
aspects of the advertising and promotional program, such as creative platforms and
media and sales promotion schedules. 4 For example, General Motors began using a
brand manager system in 1996 as a way to create stronger identities and positioning
platforms for its 40-plus models of cars, trucks, minivans, and sport utility vehicles.
The brand managers have full responsibility for the marketing of their vehicles,
© The McGraw−Hill
Companies, 2003
Exhibit 3-2 Many of
Procter & Gamble’s brands
compete against each other
73
Chapter Three Organizing for Advertising and Promotion