TERMINOLOGY is highlighted in Purple
CH2. Organizing for Integrated
Organizing for Advertising and Promotion in the Firm
The Centralized System where the advertising manager controls the entire promotions operation,
including budgeting, coordinating the creation and production of ads, planning media schedules, and
monitoring and administering the sales promotions program for all the companyʼs product and services.
Advertising Manager responsible for all promotions activities except sales
• Planning and budgeting - advertising department can develop the promotional budget, but the ﬁnal
decision is made by top management.
Administration and Execution - organize advertising department and supervise and control its
• Coordination with Other Departments - Marketing research, sales, to determine emphasis of
communications and proﬁles of users. Preparing materials for the sales force.
• Coordination with Outside Agencies and Services - media buying services t place ads, collateral
service agencies to develop material. Department serves as liaison between company and outside
service providers. Centralized = facilitates communication, few divisions, product, service lines, brands
to advertise. More power in participating in decision making. efﬁciency with fewer people involved.
The Decentralized System where there are separate manufacturing, research and development, sales,
and marketing departments for various divisions, product lines, or businesses.
• + each brand receives concentrated managerial attention
• faster response to problems & opportunities
• more ﬂexible, easier to adjust program /schedules
• - lack training and experience
• may focus on short-run planning & administrative tasks rather than long-term programs.
• unproductive rivalries
• potential misallocation of funds
• persuasiveness a factor in budgeting
lack of authority to implement and control plans they develop
Brand manager responsible for the total management of the brand, including planning, budgeting, sales,
and proﬁt performance. Supported by Marketing services department.
Category Management System category managers as well as brand and advertising managers.
Category manager oversees management of the entire product category and focuses on the strategic role
of the various brands to build proﬁts and market share. Advertising Agency Decision
in-house agency an advertising agency that is set up, owned, and operated by the advertiser.
• + reduce advertising and promotions costs
• time savings
• bad experiences with outside agencies
• increased knowledge and understanding of market
• tighter control over process
• easily coordinate promotions with ﬁrmʼs overall marketing program
Advertising Agency Option used to assist in developing, preparing, and executing promotional
• experience and objectivity of an outside agency
• range of services
• highly skilled specialists
• attract best creative talent
• varied perspective on advertising problems
• greater ﬂexibility to be dismissed if not satisfactory
• variety of people with different backgrounds and ideas
• Staff: artists, writers, media analysts, researchers
Superagencies formed through mergers or alliances or acquisitions so that agencies could provide
clients with integrated marketing communications services worldwide.
• international communications capabilities
• to offer a broader range of integrated marketing communication services
• access to a network of agencies around the world
Full-service agency offers a full range of services composed of different departments
• promotions services
producing the advertising
• performing research
• selecting media
• strategic market planning
• sales promotions
• direct marketing
• interactive capabilities
• package design
• public relations
Account Services link between the ad agency and its client. Account executive is responsible for
understanding advertiserʼs marketing and promotions needs and interpreting them to agency personnel.
• coordinates agency efforts in planning, creating and producing ads
• presents recommendations and obtain client approval
• Research Department functions to gather, analyze, and interpret information that will be useful in
developing advertising for clients. • Primary research - study designed, executed, and interpreted by research department. Reports
interpreted and passed on to personnel working on an account.
• Secondary research - previously published sources of information.
Media Department analyzes, selects, and contracts for space or time in the media that will be used to
deliver the clientʼs advertising message.
• expected to develop a media plan that will reach the target audience and effectively communicate
• right audience and cost-effective.
• what audience the media reach, their rates, and how well they match clientʼs target audience
strategic ability to negotiate prices and effectively use the vast array of media vehicles available.
• Creative Services creation and execution of advertisement.
• copywriters individuals who conceive the ideas for ads and write headlines, subheads, and body
copy. Determine basic appeal / theme of an ad campaign. Rough initial visual layout of print ad / tv
• Art department responsible for how ad looks. Art director / graphic designers prepare layouts/
storyboard. Creative director oversees all advertising and sets the creative philosophy.
• Production department most agencies do not produce ﬁnished ads, they h