 Regeln für die Allokation eines Marketing-Budgets auf Produkte oder MarktsegmenteSchmalenbach Journal of Business Research, 1998, vol. 50, issue 3, 211-235 Abstract: Summary The problem of optimally allocating a scarce resource with impact on sales across products or market segments has been addressed in the marketing literature by statistically estimating the response functions and applying a nonlinear optimization algorithm. In contrast, managers typically use simple but nonoptimal allocation rules such as budgets proportional to past or planned sales. Here, a new and easy to implement rule is derived from the property that in the optimum the product of profit contribution and the respective elasticity should be equal across products and segments. The goodness of traditional rules as well as the new one is investigated with the help of a computer simulation experiment. The results show that the new rule is superior, provides very good solutions already in the first application, near-optimal solutions after a few consecutive applications and converges to the optimum. Date: 1998 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sjobre:v:50:y:1998:i:3:d:10.1007_bf03371503 Ordering information: This journal article can be ordered from DOI: 10.1007/BF03371503 Access Statistics for this article More articles in Schmalenbach Journal of Business Research from Springer |
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