Marketing Insights From a to Z: 80 Concepts Every Manager Needs to Know

etailers and Vendors
When retailers were small, manufacturers had the power. The
strongest manufacturers could dictate the terms and shelf space
they wanted for their products. The advent of giant retailers—hy-
permarkets, superstores, category killers—changed the power for-
ever. No longer were the retailers the dumping grounds for the
manufacturers’ products; instead they became the customers’ rep-
resentatives. The retailers chose to carry the goods that would
most satisfy their customers. And the giant retailers ordered such
high volume that they could play off the manufacturers against
each other for the best terms. A company such as Toys ‘R’ Us
commanded such a significant share of the toy market that it in-
sisted on participating even in the design and packaging of new
toys that it would consider carrying.
The shift of power from manufacturers to retailers is vividly
captured by Bowling Green sales manager Kevin Price’s remark: