Study: Companies Wage Internal Battles To Promote Brands Online

Compiled ByJill Jusko Despite an increasing push to get online, turf wars are stalling companies' efforts to promote their brands on the Web, says a new report. The research by The Conference Board finds that internal squabbles over which brands to promote and what corporate units should be in charge of Web-based branding activities are a major hurdle in organizing e-business efforts. Executives in information technology, marketing and business units are the primary players in the internal squabbles. "A common lament was that 'everyone is in charge and no one is in charge,'" says Kathryn Troy, author of The Conference Board report and director of its Performance Excellence and Operations Management Unit. "Every business unit wanted its own site -- some companies found that they had hundreds of sites. Conflicts also arose over whether to focus on master brands or product brands. Our latest research shows that order is slowly emerging although no single e-branding business model has appeared." Sixty companies participated in a comprehensive survey included in the research effort. Other survey highlights include:

• 75% of surveyed firms rely on a master or umbrella brand to support other brands. Usually that master brand is their corporate name.
• In about 60% of the firms an e-business executive is responsible for Internet-based processes, such as expense reporting or supply-chain management.
• Some 42% of the companies have an e-commerce executive who is responsible for online buying and selling activities.

The Conference Board, New York, is a membership-based research organization.