The Centralized System

In many organizations, marketing activities are divided along functional lines, with advertising placed alongside other marketing functions such as sales, marketing research, and product planning, as shown in Figure 3-2. The advertising manager is responsible for all promotions activities except sales (in some companies this individual has the title of Marketing Communications Manager). In the most common example of a centralized system, the advertising manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services.

The specific duties of the advertising manager depend on the size of the firm and the importance it places on promotional programs. Basic functions the manager and staff perform include the following.

Figure 3-2 The advertising department under a centralized system

President

Figure 3-2 The advertising department under a centralized system

President

Department Under Advtng

Marketing research

Sales

Product planning

Planning and Budgeting The advertising department is responsible for developing advertising and promotions plans that will be approved by management and recommending a promotions program based on the overall marketing plan, objectives, and budget. Formal plans are submitted annually or when a program is being changed significantly, as when a new campaign is developed. While the advertising department develops the promotional budget, the final decision on allocating funds is usually made by top management.

Administration and Execution The manager must organize the advertising department and supervise and control its activities. The manager also supervises the execution of the plan by subordinates and/or the advertising agency. This requires working with such departments as production, media, art, copy, and sales promotion. If an outside agency is used, the advertising department is relieved of much of the exe-cutional responsibility; however, it must review and approve the agency's plans.

Coordination with Other Departments The manager must coordinate the advertising department's activities with those of other departments, particularly those involving other marketing functions. For example, the advertising department must communicate with marketing research and/or sales to determine which product features are important to customers and should be emphasized in the company's communications. Research may also provide profiles of product users and nonusers for the media department before it selects broadcast or print media. The advertising department may also be responsible for preparing material the sales force can use when calling on customers, such as sales promotion tools, advertising materials, and point-of-purchase displays.

Coordination with Outside Agencies and Services Many companies have an advertising department but still use many outside services. For example, companies may develop their advertising programs in-house while employing media buying services to place their ads and/or use collateral services agencies to develop brochures, point-of-purchase materials, and so on. The department serves as liaison between the company and any outside service providers and also determines which ones to use. Once outside services are retained, the manager will work with other marketing managers to coordinate their efforts and evaluate their performances.

A centralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise. For example, airlines such as Southwest, American, and Continental have centralized advertising departments. Many companies prefer a centralized advertising department because developing and coordinating advertising programs from one central location facilitates communication regarding the promotions program, making it easier for top management to participate in decision making. A centralized system may also result in a more efficient operation because fewer people are involved in the program decisions, and as their experience in making such decisions increases, the process becomes easier.

At the same time, problems are inherent in a centralized operation. First, it is difficult for the advertising department to understand the overall marketing strategy for the brand. The department may also be slow in responding to specific needs and problems of a product or brand. As companies become larger and develop or acquire new products, brands, or even divisions, the centralized system may become impractical.

Continue reading here: The Decentralized System

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Readers' Questions

  • kalimac
    What is centralized system in advertisement?
    8 months ago
  • A centralized system in advertisement is an advertising platform that centralizes the control of all ad campaigns being managed. It enables businesses to manage campaigns in one platform where they can look at the performance of all campaigns from a single dashboard. The centralized system also allows marketers to make changes quickly and easily, like adjusting campaign settings, pricing, targeting, and more.
    • ARJA
      How centralized system works in marketing?
      1 year ago
    • A centralized system in marketing is a management style where decision-making responsibility is placed within one team or leader, who then has authority to carry out tasks and make decisions related to marketing. This centralized system is often seen in larger companies, where multiple departments are needed to carry out marketing activities. The centralized system generally follows a hierarchical structure, with the team leader, or marketing director overseeing the entire marketing process, from strategy formulation to execution. This centralized system provides a higher level of efficiency and control, making it easier for the marketing director to ensure that all marketing activities are in line with the company’s goals and objectives. The team leader can make decisions quickly and effectively, and ensure that all marketing activities are executed with the same level of consistency and quality. The centralized system also allows for better collaboration between teams, and a more thorough analysis of marketing data. When everyone is working towards the same goal, it is easier to pinpoint areas for improvement and adjust marketing strategies accordingly. Additionally, a centralized system reduces the need for multiple decision-makers, which can be time-consuming and costly.
      • ASMAIT
        What is centralize system in advertising?
        1 year ago
      • Centralized systems in advertising are systems that are used to control, monitor and measure advertising initiatives from a central location. These systems enable companies to track, analyze, optimize and report on their advertising performance across a variety of media channels – from print and television to digital and mobile. They also enable companies to coordinate multiple campaigns across different media channels. Centralized systems provide the ability to control and manage campaigns, track customer engagement, target customer segments and report on return on investment (ROI).
        • Kaarle
          What are the major responsibility of advertising managerr under centralized system?
          1 year ago
          1. Plan and develop advertising strategies that align with the organization’s overall goals.
          2. Oversee the development, design, and production of all advertising campaigns.
          3. Monitor budgets and track the effectiveness of each advertising campaign.
          4. Measure the effectiveness of advertisements in terms of market penetration and consumer response.
          5. Research and monitor current trends in the advertising industry, analyze competitor campaigns and strategies, and implement new ideas to ensure the organization’s campaigns remain competitive.
          6. Set goals and track performance metrics to ensure that the organization’s advertising campaigns are successful.
          7. Liaise with the media to place ads in the appropriate places and negotiate the best rates.
          8. Manage the approval process for each advertisement or campaign.
          9. Coordinate with other departments to ensure that all advertising campaigns are executed according to the organization’s plans.
          10. Develop and oversee the training and development of advertising staff.
          • NINO
            What is a centralized or decentralized system for marketing firms or depaetment?
            1 year ago
          • A centralized system for marketing firms or departments typically involves centralizing decision-making authority, resources, planning, and activities. This allows for greater control over communication, content, and strategy. In a decentralized system, decision-making authority and activities are decentralized, often involving multiple departments within a company or even external stakeholders. This allows for greater autonomy and customization of marketing efforts and strategies.
            • amanuel ali
              Who is responsible for centralized system in advertising?
              1 year ago
            • The responsibility for most centralized systems in advertising lies with the advertiser or the advertising agency. Depending on the situation, it could also be the creative director, media director, or other personnel in the company.