THE EVOLUTION OF THE MARKETING DEPARTMENT
Marketing departments have evolved through six stages. Companies can be found in
each stage.
Stage 1: Simple Sales Department
Small companies typically appoint a sales vice president, who manages a sales force
and also does some selling. When the company needs marketing research or adver-
tising, the sales vice president hires help from the outside (Figure 6-5[a]).
Stage 2: Sales Department with Ancillary Marketing Functions
As the company expands, it needs to add or enlarge certain functions. For example,
an East Coast firm that plans to open in the West will need to conduct marketing
research to learn about customer needs and market potential. It will have to adver-
tise its name and products in the area. The sales vice president will hire a market-
ing research manager and an advertising manager to handle these activities. He
might hire a marketing directorto manage these and other marketing functions (Fig-
ure 6-5[b]).
Stage 3: Separate Marketing Department
The continued growth of the company will warrant additional investment in mar-
keting research, new-product development, advertising and sales promotion, and cus-
tomer service. Yet the sales vice president normally focuses time and resources on the
sales force. Eventually the CEO will see the advantage of establishing a separate mar-
keting department headed by a marketing vice president, who reports, along with the
sales vice president, to the president or executive vice president (Figure 6-5[c]). At this
stage, sales and marketing are separate functions that are expected to work closely to-
gether.
chapter 22
Managing the
Total Marketing
Effort^681Sports Analogies for the
Marketing Organization