Corporate Divisional Organization

As multiproduct-multimarket companies grow, they often convert their larger product or market groups into separate divisions with their own departments and services. This raises the question of what marketing services and activities should be retained at corporate headquarters. Some corporations leave marketing to each division; some have a small corporate marketing staff; and some prefer to maintain a strong corporate marketing staff.

The potential contribution of a corporate marketing staff varies in different stages of the company's evolution. Most companies begin with weak marketing in their divisions and often establish a corporate staff to bring stronger marketing into the divisions through training and other services. Some members of corporate marketing might be transferred to head divisional marketing departments. As divisions become strong in their marketing, corporate marketing has less to offer them. Some companies then decide corporate marketing has done its job and proceed to eliminate the department.24

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