The Costly Bargain of Trade Promotion

One of the most significant phenomena in retailing in recent years has been the shift in power from manufacturers to the trade. In frequently purchased, heavily advertised goods, the dominant players have become the big chains like Safeway, Wal-Mart, Kroger, K mart, Toys “R” Us, Walgreen, CVS, Home Depot, and Circuit City. Partly as a […]

by

and

Walter J. Salmon

by

and

Walter J. Salmon

From the Magazine (March–April 1990)

One of the most significant phenomena in retailing in recent years has been the shift in power from manufacturers to the trade. In frequently purchased, heavily advertised goods, the dominant players have become the big chains like Safeway, Wal-Mart, Kroger, K mart, Toys “R” Us, Walgreen, CVS, Home Depot, and Circuit City.

A version of this article appeared in the March–April 1990 issue of Harvard Business Review.

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The authors, senior faculty at the Harvard Business School, concentrate on consumer marketing. Robert D. Buzzell is the Sebastian S. Kresge Professor of Marketing,
John Quelch is the Charles Edward Wilson Professor of Business Administration at Harvard Business School and holds a joint appointment at Harvard School of Public Health as a professor in health policy and management.
WS

Walter J. Salmon, the Stanley Roth Senior Professor of Retailing at the Harvard Business School, calculates that, since 1961, he’s served a total of 150 years on the boards of nearly a dozen companies. Most of his experience as a director is in the retailing and consumer-marketing industries.

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The Costly Bargain of Trade Promotion

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