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Advantages
include: 
(a) 
Accountability
.
 
Individual
 
managers can be held accountable
 
for the profitability
 
of individual 
products. 
(b) 
Specialisation
. For example, some salespeople will be trained to sell a specific product in which 
they may develop technical expertise and thereby offer a better sales service to customers. 
(c) 
Co
-
ordination
. The different functional activities and efforts required to make and sell each 
product can be co-ordinated and integrated by the divisional/product manager. 
Disadvantages
include: 
(a) It 
increases the overhead costs 
and managerial complexity of the organisation. 
(b) 
Different product divisions may 
fail to share resources 
and customers. 
A 
brand 
is the name (eg 'Persil') or design which identifies the products or services of a manufacturer or 
provider and distinguishes them from those of competitors. (Large organisations may produce a number 
of different brands of the same basic product, such as washing powder or toothpaste.) Branding brings 
the product to the attention of buyers and creates brand 
recognition
, 
differentiation
and 
loyalty
: often 
customers do not realise that two 'rival' brands are in fact produced by the same manufacturer. 
(a) 
Because each brand is packaged, promoted and sold in a distinctive way, the need for 
specialisation may make brand departmentation effective. As with product departmentation, 
some functional departmentation remains but brand managers have responsibility for the brand's 
marketing and this can affect every function. 
(b) 
Brand departmentation has similar advantages/disadvantages to product departmentation.
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CHAPTER 5
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BUSINESS ORGANISATION, STRUCTURE AND STRATEGY