coming up with new commercial products to pursue
reducing the number of ideas to the most promising and working on those
assessing the potential profitability of the product
creating a prototype
taking a product idea to consumers to test their reactions
promoting a product to distributors, retailers, and consumers to gain wide interest and distribution in the product
journal article
Operations Research
Vol. 23, No. 4 (Jul. - Aug., 1975)
, pp. 628-655 (28 pages)
Published By: INFORMS
//www.jstor.org/stable/169847
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Abstract
Marketing managers make decisions about price, advertising, promotion, and other marketing variables on the basis of factual data, judgments, and assumptions about how the market works. BRANDAID is a flexible, on-line model for assembling these elements to describe the market and evaluate strategies. This paper motivates the model and presents its mathematics. The structure is modular so that individual decision areas can be added or deleted at will. The model is of the aggregate response type, in which decision variables relate closely to specific sales performance measures. The major submodels are advertising, promotion, price, salesmen, and retail distribution. The advertising submodel employs a long-run sales response to advertising function and a linear lag process. Promotional effects are built up from a characteristic time pattern for the type of promotion and a response curve. Salesman affect sales through a response process structurally similar to that for advertising. Retail distribution variables are intermediaries that the company affects and that in turn affect customer response. Submodel outputs combine multiplicatively. Competition enters in a modular, symmetric way through a matrix of competitive coefficients that determine the source of sales for each brand as it seeks to increase its market position.
Journal Information
OR professionals in every field of study will find information of interest in this balanced, full-spectrum industry review. Essential reading for practitioners, researchers, educators and students of OR. Computing and decision technology Environment, energy and natural resources Financial services Logistics and supply chain operations Manufacturing operations Optimization Public and military services Simulation Stochastic models Telecommunications Transportation
Publisher Information
With over 12,500 members from around the globe, INFORMS is the leading international association for professionals in operations research and analytics. INFORMS promotes best practices and advances in operations research, management science, and analytics to improve operational processes, decision-making, and outcomes through an array of highly-cited publications, conferences, competitions, networking communities, and professional development services.
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Operations Research © 1975 INFORMS
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