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Richard S. Tedlow: The Story of Mass Marketing in America

Richard S. Tedlow: The Story of Mass Marketing in America

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 A History of Marketing / Episode 20This week, I'm thrilled to be joined by Richard S. Tedlow, the MBA Class of 1949 Professor of Business Administration Emeritus at the Harvard Business School. Professor Tedlow is a renowned specialist in the history of business, an acclaimed author, and a truly engaging storyteller. Tedlow also the author behind the popular Substack, Dystopias and Demagogues.After dedicating over three decades to teaching and research at Harvard, he was recruited by Apple to become a member of Apple University, the company's prestigious executive education arm, further cementing his expertise at the intersection of historical trends and modern business practice.Professor Tedlow is the author of several excellent business history books and biographies. Much of our conversation centers around his seminal 1990 work, New and Improved: The Story of Mass Marketing in America.Listen to the podcast: Spotify / Apple Podcasts / YouTube PodcastsNew and Improved offers an expansive survey of how commerce and marketing evolved, tracing their journey from the mid-19th century through the transformative changes leading up to the internet age.We explore the core concepts from New and Improved, exploring the eras of fragmentation, unification, and segmentation in American marketing. We also discuss how these historical trends continued after the book’s publication with the rise of the internet, mobile technology, and social media.This conversation is packed with insights, history, and case studies, including:* The profound influence of Alfred D. Chandler Jr. on the study of business history and Professor Tedlow's own work.* The "Cola Wars" between Coke and Pepsi as an example of competitive marketing strategy and the shift from unification to segmentation* The rise and fall of retail giant A&P and the lessons it holds for businesses today.* Professor Tedlow's current work on his Substack, Dystopias and Demagogues, where he applies historical lessons to contemporary societal challenges. (I’m a subscriber and recommend you check it out!)* And much moreProfessor Tedlow is a great storyteller, and this discussion offers a rich understanding of how the past continues to inform the present and future of marketing. Now, here's my conversation with Richard S. Tedlow.Note - I use an AI tool to transcribe the audio of my conversations to text. I check the output but it’s possible there are mistakes I missed. I have lightly edited parts of this transcript for clarity.Andrew Mitrak: Richard Tedlow, welcome to A History of Marketing.Richard Tedlow: Well, thank you very much. It's nice to be here.Alfred D. Chandler Jr: The Founder of Modern Business HistoryAndrew Mitrak: I had a lot of fun researching your work, your career, and reading your book New and Improved. I'm going to ask you about all of that. But one person I want to ask you about is someone I heard you mention in an interview. His name was Alfred D. Chandler Jr. Can you tell me, who was Alfred Chandler and what did you learn from him?Richard Tedlow: Alfred Chandler is basically the man who founded modern business history. I learned a great deal from him. He's most well-known for two critical books. One is called Strategy and Structure, published in 1962. Another is called The Visible Hand, published in 1977.Strategy and Structure was a study showing the relationship between a strategy that a company wants to investigate or pursue and the structure that the company has, the organizational structure. For example, if you think about chapter two in Strategy and Structure, that's about the DuPont company. Al's middle name was DuPont, and although he was not a member of the family, he was very close to it, Alfred “DuPont” Chandler Jr. Strategy and Structure is the story of a company, DuPont, which grows very big between 1914 and 1919, decides it wants to pursue a new strategy, which is product diversification, and discovers that the old structure prevents it from doing that. So, Strategy and Structure is the story of a crisis that the company experiences in 1919, 1920, 1921, and how that crisis internally leads it to develop a structure which makes the strategy possible.The structure that makes the strategy possible is a change from what is called the U-form—the unitary form of a corporation, where you've got a manufacturing department, a marketing department, and that's pretty much it—to a multi-divisional form, called the M-form, which locates the direction of the company around product divisions. So now you have a paint division, which has manufacturing, marketing, and management. That divisionalization became the structure which permitted the strategy of product diversification to take place.Up until that book, nobody had really intellectualized what it means to try to pursue a strategy with a structure that's holding you back. Nobody made it so clear that structure must serve strategy, not the other way around. That's one thing I learned ...

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