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- Title
MULITPRODUCT ADVERTISING BUDGETING.
- Authors
Doyle, Peter; Saunders, John
- Abstract
The problem of optimizing advertising across a broad product range, where significant cross elasticities are likely, is explored. A linear-in-logs model is proposed and allocation rules for budgeting across products and media are derived. The model is estimated for a large European variety store chain. The results suggest profits could be increased by nearly 40 percent with no change in the advertising budget, if management shifted from the conventional bottom-up approach to the more systematic method outlined. The final section describes how management implemented the model.
- Subjects
ADVERTISING; COMMUNICATION in marketing; VARIETY stores; PRODUCT management; RETAIL industry; MARKETING; INDUSTRIAL publicity; ELASTICITY (Economics)
- Publication
Marketing Science, 1990, Vol 9, Issue 2, p97
- ISSN
0732-2399
- Publication type
Article
- DOI
10.1287/mksc.9.2.97