Reigning in “little kingdoms”? The implementation of marketing within the advertising function of the Philips company (1959–1977)

Abstract

Purpose

The purpose of this paper is to analyze the introduction of marketing within the advertising function of the Philips company between the late 1950s and the mid-1970s. This company function, along with the organizational changes and integrative efforts it enacted and that it was subjected to, serve as a case study on how marketing as an organizational concept could be implemented within parts of a multinational company in a time of changing market conditions.

Design/methodology/approach

This paper is a qualitative historical study of primary sources from the Philips company archive, mainly pertaining to the highest corporate level of Philips’ advertising function. Based on these sources, this research traces the implementation of marketing within that company function. It also investigates the functions’ organizational structure, as well as the measures taken to further integration between the subparts of the companies’ advertising function. Insofar as possible, the impact of marketing on the advertising functions’ relation with other company parts is explored as well. In doing so, this research is situated at the junction of marketing history and historical research on advertising.

Findings

Introducing marketing to Philips’ advertising function was a multistep process involving not only the advertisers of the company but also several other departments implicated in marketing. A large focus within the advertising function was put on furthering the integration between the three major components of the function, as well as the integration between different functions (albeit to a lesser extent). While certain measures aiming toward institutionalizing collaborative processes and facilitating integration were successful, the advertisers working in national branches of Philips nonetheless retained a certain degree of independence.

Originality/value

Previously unused sources were examined to contribute to the understanding of how marketing – and more specifically, marketing management – was introduced within a multinational European company. Through its focus on the practical implementation of marketing within a company, this research not only adds to our knowledge about integrative processes specific to Philips, but it also improves our understanding of the historical structures of the advertising function within multinational companies and the organizational changes taking place on a practical level after the introduction of marketing.

Citation

Höfer, M. (2024), "Reigning in “little kingdoms”? The implementation of marketing within the advertising function of the Philips company (1959–1977)", Journal of Historical Research in Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JHRM-03-2024-0015