PRINTABLE LESSON 6 - The advertiser%27s marketing and advertising operation

PRINTABLE LESSON 6 - The advertiser%27s marketing and advertising operation

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2/6/2012 1 LESSON SIX THE ADVERTISER’S MARKETING/ADVERTISING OPERATION 1 The big picture . . . This lesson focuses on advertising from the perspective of the advertiser. 2 The organization of advertising within a business Businesses develop organizational structures: in response to work that needs to be done to structure incentives for employee advancement Procter and Gamble, for example, developed the marketing services system which became the traditional advertising structure for many companies. 3 Over time, competitive pressures affecting profitability led to changes in the traditional structure. During the past two decades, the focus of business has shifted from “making a sale” to “building a relationship” among customers via a series of transactions. In response, many businesses have changed the structure of advertising. 4 The traditional organizational structure is known as the marketing services system. A product (brand) manager leads a marketing team charged with all tasks necessary to enhance a brand’s equity. At a large company with similar branded products, individual brand managers report to a category manager ultimately responsible for all aspects of brand equity for similar products (e.g., the Tide and Cheer brand managers would report to the category manager who oversees P&G’s laundry products). 5 Brand managers are essentially presidents corporations within a larger corporation (i.e., the “Tide company” within P&G), and compete for promotion within that larger corporation. 6
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2/6/2012 2 The marketing services structure reengineered to deemphasize hierarchy is known as Integrated Marketing Communication (IMC) or Integrated Brand Communication (IBC). During the past 20 years managers have found it profitable to
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This note was uploaded on 02/23/2012 for the course COM 256 taught by Professor Robb during the Spring '07 term at Purdue.

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PRINTABLE LESSON 6 - The advertiser%27s marketing and advertising operation

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