Advanced Search
MyIDEAS: Login to save this article or follow this journal

Timely Resource Allocation Between R&D And Marketing: A System Dynamics View

Contents:

Author Info

  • AHMET ILKER SOYDAN

    ()
    (SIEMENS A. S. Turkey, Corporate Development Strategies, Turkey)

  • M. ATILLA ONER

    ()
    (Yeditepe University, Management Application and Research Center, Turkey)

Registered author(s):

    Abstract

    Trade-off between marketing and research and development (R&D) has always been a dilemma in management science for many years. Allocating the budget to departments and estimating the future profits and customer base as a result of this action has remained a "challenging task." Developing products faster, better, and cheaper than competitors has become critical to success in many markets. This may require huge initial investments in underlying processes resulting in over-investment in marketing and/or R&D in spite of insufficient purchasing power and market saturation for new products.Using a system dynamics (SD) model, this paper aims to understand the dynamics of a complex market where demand fluctuates annually. The problem contains severe difficulties in terms of planning and strategy for marketing and R&D. The budgets to be shared by R&D and marketing vary every period. The market includes feedback and dynamic issues to consider. This brings in the problem of understanding and controlling complexity in the market structure by understanding the cyclical causal relationships.The paper indicates that SD modeling is very useful in investigating and finding sustainable allocation trends in marketing and R&D, so that a firm can keep a sustainable level of customers. While searching for these trends, special attention is paid to the timing of these decisions to synchronize two activities. The paper shows an understanding of the management of a complex problem via policy design and analysis using SD modeling.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S0219877012500125
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=html&id=pii:S0219877012500125
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Journal of Innovation and Technology Management.

    Volume (Year): 09 (2012)
    Issue (Month): 02 ()
    Pages: 1250012-1-1250012-38

    as in new window
    Handle: RePEc:wsi:ijitmx:v:09:y:2012:i:02:p:1250012-1-1250012-38

    Contact details of provider:
    Web page: http://www.worldscinet.com/ijitm/ijitm.shtml

    Order Information:
    Email:

    Related research

    Keywords: Marketing; R&D; system dynamics; budget allocation; modeling; simulation;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wsi:ijitmx:v:09:y:2012:i:02:p:1250012-1-1250012-38. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.