Supply chain performance is often characterized by the power of decision making of the partners involved. The various decisions taken by different partners influence the overall profit of the chain and hence affect the channel efficiency. In this paper, we have considered a supply chain where the final demand depends upon the retail price and the marketing expenses borne by either the manufacturer or the retailer. We have shown that under these circumstances, a revenue sharing contract fails to coordinate the supply chain. We develop a hybrid contract that can coordinate the supply chain and discuss the implications of its adoption for the parties involved.