Paper Info
Title
Promotional Resource Allocation for a Product Incorporating Segment Specific and Spectrum Effect of Promotion.
Abstract
Firms invest a huge proportion of their resources in promotion to acquire higher adoption of their products. To get maximum possible returns from promotional resources judicious and effective spending is essential, especially in a segmented market. Mass and differentiated market promotion are typically two different techniques of promotion used in the segmented market. With mass promotion product is promoted in the entire market using a common strategy, thereby creating a spectrum effect in all segments. Differentiated market promotion targets the segments specifically. In this paper we formulate a mathematical programming problem to optimally allocate the limited promotional resources for mass market promotion and differentiated market promotion among various segments of the market, maximizing the total sales measured through product adoption under budgetary constraint and minimum target sales level constraints in each segment. A recent innovation diffiision model is used to measure the adoption in each segment which describes the sales through the combined effect of mass and differentiated promotion. The solution procedure has been discussed using NLPP methods. The optimization model is extended incorporating aspiration constraint on total sales from all the segments. Such a constraint can result in an infeasible problem. To obtain best compromised solution, differential evolution approach is used. Results are demonstrated through a numerical illustration.
Year
DOI
Venue
2012
10.1007/978-81-322-1041-2_37
PROCEEDINGS OF SEVENTH INTERNATIONAL CONFERENCE ON BIO-INSPIRED COMPUTING: THEORIES AND APPLICATIONS (BIC-TA 2012), VOL 2
Keywords
Field
DocType
Innovation Diffusion,Mass Market Promotion,Differentiated Market Promotion,Spectrum Effect,Promotional Effort Allocation,Differential Evolution
Differential evolution,Resource allocation,Industrial organization,Marketing,Business,Mass market
Conference
Volume
ISSN
Citations 
202
2194-5357
0
PageRank 
References 
Authors
0.34
2
4
Name
Order
Citations
PageRank
Sugandha Aggarwal111.71
Yogender Singh201.69
Anshu Gupta3236.75
P. C. Jha47418.92