Optimal duration of advertising campaigns for successive technology generations using innovation diffusion theory

Remica Aggarwal and Udayan Chanda

International Journal of Operational Research, 2017, vol. 28, issue 3, 415-428

Abstract: Global market and tough competition compels a firm to continuously conceive new ideas and introduce new technologies in the market. As a result, often more than one generation products compete in the same market; creating an incredible pressure on managers for balanced advertising campaigns for the existing product generations. Advertising of multi-generation product involves selection of appropriate advertising medium, analysing the target market and appropriate utilisation of the available advertising budget. Effective advertising campaign is critical for success of a product in the market. Hence, finding the optimal advertising campaign duration is important as huge chunk of a firm's budget is allocated for this purpose. For, successive technology generations, advertising at right time become even more important. This study developed a mathematical model to determine the optimal duration of advertising campaigns for successive generations product based on diffusion of information in a social group. The optimal timing depends on diffusion coefficient, population size, advertising cost per time unit, unit price, etc.

Keywords: mathematical modelling; multi-product advertising; successive technology generations; optimisation; optimal duration; advertising campaigns; campaign duration; innovation diffusion theory; multi-generation products. (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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