A Decentralized Advertising Activity is operated and controlled by individual units located in each major division, usually reporting to a division head or to a division marketing or sales head. The division advertising, sales and marketing people and control both the 'what' and 'how' of the advertising job, getting only advice and counsel plus miscellaneous services from a central advertising function.
In large corporations with multiple divisions & many different products, it is very difficult to manage all the advertising, promotional & other functions through a centralized department. These types of companies generally have a decentralized system with separate manufacturing, research & development, sales & marketing departments for various divisions, products line or business.
Eg: P&G.HLL, Nestle, Glaxo, etc.
Under this system, the responsibilities & functions associated with advertising & promotions are transferred to the brand manager who works closely with the outside advertising agency & other marketing communication specialists as they develop the promotion programmes.
Advantages of decentralized system:
1) Each brand receives centralized managerial attention resulting in faster response to both problems & opportunities.
2) The brand manager system is also flexible & makes it easier to adjust various aspects of the advertising & promotional programs such as creative platform & media & sales promotion schedules.
Disadvantages of decentralized system:
1) Brand managers often lack training & experience. The promotional strategy for a brand promotion is led by a brand manager who does not really understand what advertising
In large corporations with multiple divisions & many different products, it is very difficult to manage all the advertising, promotional & other functions through a centralized department. These types of companies generally have a decentralized system with separate manufacturing, research & development, sales & marketing departments for various divisions, products line or business.
Eg: P&G.HLL, Nestle, Glaxo, etc.
Under this system, the responsibilities & functions associated with advertising & promotions are transferred to the brand manager who works closely with the outside advertising agency & other marketing communication specialists as they develop the promotion programmes.
Advantages of decentralized system:
1) Each brand receives centralized managerial attention resulting in faster response to both problems & opportunities.
2) The brand manager system is also flexible & makes it easier to adjust various aspects of the advertising & promotional programs such as creative platform & media & sales promotion schedules.
Disadvantages of decentralized system:
1) Brand managers often lack training & experience. The promotional strategy for a brand promotion is led by a brand manager who does not really understand what advertising