Show simple item record

dc.contributor.authorRaman, Kalyanen_US
dc.contributor.authorMantrala, Murali K.en_US
dc.contributor.authorSridhar, Shriharien_US
dc.contributor.authorTang, Yihui (Elina)en_US
dc.date.accessioned2019-09-30T17:06:59Z
dc.date.available2019-09-30T17:06:59Z
dc.date.issued2012
dc.identifier.urihttps://commons.lib.niu.edu/handle/10843/20495
dc.description.abstractThe importance of optimal marketing communications mix decisions is well-recognized by both marketing scholars and practitioners. A significant volume of work has addressed the problem of dynamic marketing mix optimization assuming constant effectiveness of marketing instruments. However, the effectiveness of marketing communications varies over time for a variety of reasons. Moreover, due to factors such as inflation or deflation in media prices and/or raw material inputs, there can be differential changes in the costs of communications and/or margins on the good (or service) sold over time. The academic literature offers little normative direction on how time-varying marketing effectiveness and costs drive optimal marketing-mix levels and their relative allocation. The authors shed light on these issues by solving a monopoly firm's finite horizon dynamic marketing communications mix optimization problem involving two marketing instruments with time-varying parameters, i.e., the marketing effectiveness parameters, media costs, and product margin are all allowed to vary over time. First, they find that the structure of the solutions is similar to that of the classic Nerlove–Arrow model, for a completely general nature of time-varying effectiveness. Second, their model can be used by managers to exactly determine whether and when to switch their marketing-mix emphasis (defined by the marketing element receiving the dominant portion of the budget) over a finite planning horizon. In sum, the authors expand knowledge on optimal allocation of marketing resources with time-varying effectiveness. They also extend their solution to incorporate multiple (more than two) marketing instruments.en_US
dc.language.isoen_USen_US
dc.publisherElsevieren_US
dc.subjecttime-varying marketing effectivenessen_US
dc.subjecttime-varying marketing costsen_US
dc.subjectresource allocationen_US
dc.subjectfinite-horizon optimal controlen_US
dc.titleOptimal Resource Allocation with Time-varying Marketing Effectiveness, Margins and Costsen_US
dc.type.genreArticleen_US
dc.typeTexten_US
dc.contributor.departmentDepartment of Marketingen_US
dc.rights.statementIn Copyrighten_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record