TITLE

MULITPRODUCT ADVERTISING BUDGETING

AUTHOR(S)
Doyle, Peter; Saunders, John
PUB. DATE
March 1990
SOURCE
Marketing Science;Spring90, Vol. 9 Issue 2, p97
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
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.
ACCESSION #
4476278

 

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