http://www.trinityp3.com/ 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.

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
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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.
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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.
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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
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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.
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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.
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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.
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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.com
TrinityP3’s liability is limited as per our standard terms and condition as approved by the client prior to the project commencing
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