Issue #1

the marketing department is fast becoming irrelevant. Its traditional unofficial role as source of company profits and future company leaders has been usurped by the sales and finance departments. Even activities considered core to the marketing function are now moving to other units. For example, marketing controlled two-thirds of all promotional dollars (including advertising) in 1985; it now spends well below half. And the important marketing decisions are moving up and away from the brand group. The reason for this change is straightforward. Most senior line managers are frustrated with the performance of their brand management organizations. Despite considerable activity, brand managers have created few new businesses. Indeed, many of the most exciting and vibrant “brands” appear to belong to the retailer, having been created outside the traditional product marketing structures altogether. For many consumer goods companies, the only real organic growth they have seen in the S T R A T E G Y • M A N A G E M E N T • C O M P E T I T I O N