Optimal Duration of Magazine Promotions

Mercedes Esteban-Bravo (mercedes.esteban@uc3m.es), José Múgica (jmugica@emp.uc3m.es) and Jose Vidal-Sanz

Marketing Letters, 2005, vol. 16, issue 2, 99-114

Abstract: The planning of promotions and other marketing events frequently requires manufacturers to make decisions about the optimal duration of these activities. Yet manufacturers often lack the support tools for decision making. We assume that customer decisions at the aggregated level follow a state-dependent Markov process. On the basis of the expected economic return associated with dynamic response to stimuli, we determine the ideal length of marketing events using dynamic programming optimization and apply the model to a complex promotion event. Results suggest that this methodology could help managers in the publishing industry to plan the optimal duration of promotion events. Copyright Springer Science + Business Media, Inc. 2005

Keywords: optimal duration of promotion events; Markovian process; dynamic programming (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (3)

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Working Paper: Optimal duration of magazine promotions (2004)
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DOI: 10.1007/s11002-005-1675-z

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