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Optimal duration of magazine promotions

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  • Esteban-Bravo, Mercedes
  • Múgica, Jose M.
  • Vidal-Sanz, Jose M.

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

Suggested Citation

  • Esteban-Bravo, Mercedes & Múgica, Jose M. & Vidal-Sanz, Jose M., 2004. "Optimal duration of magazine promotions," DEE - Working Papers. Business Economics. WB wb045417, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    • Handle: RePEc:cte:wbrepe:wb045417
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    References listed on IDEAS

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    Cited by:

    1. Mohammad G Nejad & Sertan Kabadayi, 2016. "Optimal introductory pricing for new financial services," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 21(1), pages 34-50, March.
    2. Li, Zhen & Yada, Katsutoshi & Zennyo, Yusuke, 2021. "Duration of price promotion and product profit: An in-depth study based on point-of-sale data," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    3. C Lin & Y-T Lin, 2008. "Robust analysis on promotion duration for two competitive brands," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(4), pages 548-555, April.

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