Optimal allocation of promotional resource for multi-product in segmented market for dynamic potential adopter and repeat purchasing diffusion models
by P.C. Jha; Remica Aggarwal; Anshu Gupta; P.K. Kapur
International Journal of Advanced Operations Management (IJAOM), Vol. 3, No. 3/4, 2011

Abstract: Quick technology changes and growing consumer's needs has made revolutionary expansion and diversification in the manufacturing and marketing of consumer goods. Development of new products requires huge amount of resources. An efficient promotional campaign is required for the successful introduction and then subsequent adoption by the potential population. For more productive adoption of the product, the marketers divide the potential consumer's population in segments so that distinctive campaign can be made to target each segment independently. In marketing literature, several attempts have been made to study the optimal allocation of promotional resources among the distinctive segment to facilitate an efficient campaign. The problems discussed so far consider a constant consumer population as estimated in the beginning of the campaign throughout the promotional cycle. Along with this, the phenomenon of repeat purchase is also ignored while studying these problems. In this paper, we formulate and solve some allocation problems considering dynamic market size of potential adopters and repeat purchasing for firm selling multi-products in segmented market. Solution is illustrated with numerical examples.

Online publication date: Tue, 30-Sep-2014

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