Structural Options for Centralised Marketing   in a multi-brand / product organisation	       Discussion Paper on Marketin...
Overview	•    Many organisations will have multiple brands, multiple products or multiple business units to     market. In...
The Strategy  Requirement Matrix	•    The centralised marketing model allows     for a high level of co-ordination and    ...
Strategies  Audience                                          	•    Is the marketing department managing a                ...
Economies  Security	•    Review the functional requirements of     the BPBUs within marketing to identify     those functi...
Resource Size  Specialties                                          	•    For each BPBU the spend and resource     require...
Process Steps                                             	•    The steps for determining the the best structure for manag...
For further information regarding                           this process contact…	                                        ...
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Trinity P3 Developing Structures for Marketing Departments

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Marketing is becoming increasingly complex and diverse. This means that traditional silo structures within marketing are no longer efficient or effective in allowing marketing to align and co-ordinate with the various stakeholders within the organisation and external to the organisation. They are also not able to effectively manage across silos to deliver effective and consistent brand management or the efficiencies of the economies of scale. This proposes a matrix structure for marketing that can be customised to the requirements of each organisation and their marketing needs. This involves defining product or customer segments and then channels to reach those audiences is overlaid across these. But the success in this model is not in the structure but the implementation to ensure each of these works together and focuses on delivering the overall benefit.

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Trinity P3 Developing Structures for Marketing Departments

  1. 1. Structural Options for Centralised Marketing in a multi-brand / product organisation Discussion Paper on Marketing Structure and Function TrinityP3 March 31, 2011 COMMERCIAL IN CONFIDENCE marketing management consultants
  2. 2. Overview •  Many organisations will have multiple brands, multiple products or multiple business units to market. In each case there are a number of strategic structures for providing marketing in these situations including: •  Decentralised Supplier •  Centralised Supplier* •  Marketing Partner* •  Marketing Leadership*•  In the centralised models*, no matter what the strategic positioning, there are a number of considerations in how this centralised marketing function is structured.•  This document outlines the considerations that need to be discussed when developing the centralised marketing structure. These are: •  Brand strategy and audience commonality or diversity •  Opportunities for economies of scale and security requirements •  Size and number of resources within the marketing function•  Review of each of these considerations with the relevant senior and marketing management within the organisation can assist in developing the best fit model for any set of circumstances. marketing management consultants
  3. 3. The Strategy Requirement Matrix •  The centralised marketing model allows for a high level of co-ordination and control. But this must be balanced with delivering the specific requirements of the individual brands / products / business units, (BPBU). Brands / Product / Business Unit Brands / Product / Business Unit Brands / Product / Business Unit Research•  The Matrix allows you to review and define the specific strategic requirements of each BPBU and then identify the common requirements across the Media portfolio.•  These requirements are functional such as: Research, Strategy, Media, Database, Database Sponsorship, Print Management, Mail House Management, etc•  The next stage is to identify those areas Sponsorship that collectively provide the greatest efficiency in cost and resource use without compromising the individual strategic requirement of the BPBU. marketing management consultants
  4. 4. Strategies Audience •  Is the marketing department managing a Branded House Branded House or a House of Brands? Is there multiple competitive brands or one BPBU 2 – Unique Audience BPBU 3 – Unique Audience BPBU 4 – Unique Audience BPBU 1 – Unique Audience brand with multiple offerings?•  A Branded House justifies sharing as many functions across the various brands as possible to identify and realise all of the economies of scale and to maximise the total brand effectiveness.•  If the Branded House has very different Target Audiences by BPBU, then the economies of scale across the marketing BPBU 2 – Unique Brand With Common Audience BPBU 3 – Unique Brand BPBU 4 – Unique Brand With Common Audience With Common Audience BPBU 1 – Unique Brand with Common Audience function are often diminished.•  A House of Brands requires identifying brands within the portfolio that directly compete. With these you need to ensure they have their own distinct strategies and possibly only share resources and realise economies in the implementation. House of Brands marketing management consultants
  5. 5. Economies Security •  Review the functional requirements of the BPBUs within marketing to identify those functions which have: •  Significant budget investment – eg. Research, Media, Publishing Brands / Product / Business Unit Strategy Brands / Product / Business Unit Strategy •  Require significant resources Research •  Security considerations – eg. Customer data, Financial reporting•  The structure of the matrix needs to balance the needs of the individual Media BPBUs with the advantages delivered from all of business management.•  Savings in major common cost centers Database like media, publishing are quantifiable.•  Savings in shared requirements such as research, sponsorship are dependent on the commonality requirement. Sponsorship•  Security depends on risk / reward of central control versus individual requirements. marketing management consultants
  6. 6. Resource Size Specialties •  For each BPBU the spend and resource requirement needs to be defined by function. You can then begin allocating existing resources against the roles based Research on skills, expertise and seniority. Brands / Product / Business Unit Brands / Product / Business Unit Brands / Product / Business Unit•  There will be resources allocated specifically against the individual BPBU Media and shared resources allocated against specific shared functions.•  Depending on the size of the marketing team and the resources required, in Database smaller teams, some resources may have multiple responsibilities: •  Primary to their BPBU. Sponsorship •  Secondary to the shared functionality. Publishing•  In some cases the marketing team allocates a resource / team to manage all shared functionality. marketing management consultants
  7. 7. Process Steps •  The steps for determining the the best structure for managing a centralised marketing function are: •  Define the various brands / productions / business units (BPBU) within the central marketing function. •  Against each BPBU allocate the strategic requirements – (audience, positioning, channel strategy) and functional requirements (budget, broken down by media, database, publishing, research, etc). •  Identify the common requirements for consolidation and cross-BPBU management, to deliver economies of scale, and areas where individual requirements are maintained. •  Review the size and budget of each BPBU to determine the level of dedicated resources within each. •  Review the size of the cross-BPBU requirement/spend to determine if dedicated resources are justified and determine the level of resourcing, i.e. what percentage resource level and skill is required in each BPBU based on requirement? •  Balance the resource allocation to support requirements of individual BPBU and the need for cross BPBU management, i.e. what percentage specialist resource is required across all BPBU in, say, database management and can this be consolidated? •  Plan the available resources against the matrix of requirements to identify gaps in resource levels, skills and capabilities. marketing management consultants
  8. 8. For further information regarding this process contact… TrinityP3 Pty Ltd Sydney +612 8399 0922 Melbourne +613 9682 6800 Hong Kong +852 3589 3095 Singapore +65 6884 9149 people@trinityp3.com www.trinityp3.comTrinityP3’s liability is limited as per our standard terms and condition as approved by the client prior to the project commencing marketing management consultants

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