Multiproduct Advertising Budgeting

Peter Doyle and John Saunders
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Peter Doyle: University of Warwick
John Saunders: Loughborough University

Marketing Science, 1990, vol. 9, issue 2, 97-113

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.

Keywords: advertising; retailing (search for similar items in EconPapers)
Date: 1990
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Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:9:y:1990:i:2:p:97-113

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