An examination of the interfaces between operations and advertising strategies

This dissertation is composed of three journals examining the interfaces between the marketing variable of advertising and various aspects of the operations function of the enterprise, namely, (1) production cost [Chapter 2], (2) inventory control [Chapter 3], and (3) service cost learning [Chapter 4]. The first journal identified the optimum advertising allocation policy over time in the presence of a quadratic convex/concave production cost function when the advertising response function is concave using a modified Vidale-Wolfe model. Through analytical proofs and numerical simulations, the results indicated the potential superiority of a pulsation policy in the presence of concavity in the advertising response function only if the production cost function is convex; otherwise, the uniform policy would be optimal. The study is seen as applicable to frequently purchased products in the maturity stage of their life cycles of dominant firms in their industries practicing a zero-inventory policy in a just-in-time environment. The research objective pertaining to the second journal was to study how a firm would adapt optimum ordered quantity/production lot size and optimum advertising expenditure in response to changes in its own parameters, rival\u27s parameters, or parameters that are common to all firms in a symmetric duopoly/oligopoly market. This was accomplished by developing comparative statics (sensitivity analysis) of a symmetric competitive inventory model with advertising-dependent demand based on a market share attraction model. Both optimum advertising expenditure and ordered quantity were found to be sensitive to changes in marketing and operations parameters. The robustness of the symmetric comparative statics was assessed by using data from the brewing industry in the US that represents an asymmetric oligopoly. The empirical analysis indicated that the theoretical results obtained for a symmetric oligopoly remained valid for an oligopoly where each firm had a market share less than 50% and the market shares were further apart from one another. The study is thought to be applicable to low-priced frequently purchased consumer items in competitive mature markets. In the third journal, the original Bass model for new products was modified to incorporate advertising and customers\u27 disadoption to characterize the optimum advertising policy over time for subscriber service innovations where service cost follows a learning curve. After characterizing the optimal policy for a general diffusion model, the results pertaining to a specific diffusion model for which advertising affects the coefficient of innovation were reported. On the empirical side, four alternative diffusion models were estimated and their predictive powers, using a one-step-ahead forecasting procedure, were compared. Empirical research findings suggest that the specific diffusion model considered in this study is not only of theoretical appeal, but also of notable empirical relevance. Taken together, the analytical and empirical findings argue in favor of advertising more heavily during the early stage of the diffusion process of the new subscriber service innovation and including a related message that would predominantly target innovators. Furthermore, it might be inappropriate to model the diffusion of subscriber services as if they were durable goods. The study is thought to be applicable to service innovations that are made available to customers periodically at a subscription fee. Typical examples include, but are not limited to, cable TV, health clubs, pest control, and the internet

Competição duopolista via publicidade e preços : uma abordagem computacional

Mestrado em Economia Monetária e FinanceiraA competição por lucros e quota de mercado entre duas firmas que podem agir sobre o preço, a publicidade, ou ambas as variáveis, é um problema com relevância na área de marketzng. Nesta dissertação, seleccionamos como enquadramento matemático de abordagem a esse problema modelos que tomam a forma de jogos diferenciais, através dos quais tratamos, em ambiente de duopólio, a decisão de publicidade das firmas, a decisão de preço, e ambas em simultâneo. Calculamos as estratégias de ciclo aberto das firmas para as variáveis estratégicas publicidade e preço em três jogos distintos: o jogo de Sorger ( 1989) de competição estrita em publicidade, um jogo de competição estrita em preços e um jogo de competição simultânea em publicidade e preço. Recorremos ao Mathematica para o cálculo computacional de soluções dos sistemas dinâmicos emergentes desses jogos, já que alguns deles não possuem resolução analítica, e apresentamos a forma gráfica dessas soluções para uma série de combinações paramétricas que designamos por casos, para cada jogo estudado. No final, encontramos urna complementaridade bastante rica entre o comportamento publicitário e o preço a que cada firma comercializa o seu produto. Pensamos contribuir com esta dissertação para o estudo da competição simulânea em publicidade e preço, um tema que praticamente não encontrámos tratado na literatura.The competition for profits and market share amongst two competitors that can react on price, advertising effort or both is a relevant marketing problem. In this work we have chosen for mathematical framework models that take the shape of differential games, through which we approach, for a duopoly, the advertising decision of the firms, its price decision, or both simultaneously. We derive the open loop strategies for the strategic variables of the firms ( advertising, price, or both) along three different games: the Sorger game ( 1989) of advertising competition, a game of strict price competition and a game of simultaneous competition in advertising and prices. We recur to Mathematica to compute the solutions of the various dynamical systems that emerge from these games, since some of them do not possess analytical solutions. We present the graphical form of the solutions for sets of parametric conditions that we define as cases, for each of the games studied. In the end, we find a rich complementarity between the advertising and price behaviour of the firms. In essence, this work gives an additional contribution to the study of simultaneous advertising and price competition, a subject for which the literature is somewhat scarce.info:eu-repo/semantics/publishedVersio

Экономико-математическое моделирование рынка программного обеспечения: Монография. — М.: Вега-Инфо, 2009. — 176 с.

Software market is considered as a new object for the mathematical economics. A statistical study of the server operating systems market is provided, static and dynamic models of for-profit and non-for-profit software developers mixed duopoly are built (taking into account market growth, interactions with hardware vendors, software piracy, and non-zero technical support costs). Stochastic generalizations of the Harrod – Domar model, Solow model, and the fundamental model of innovations diffusion model in terms of spatial heterogeneous economy are developed. The generalization of the Pontryagin maximum principle for distributed economic systems optimal control is formulated. The book is intended for academics specializing in mathematical economics and knowledge economics and university students of economics

Economic and mathematical modelling of software market

Software market is considered as a new object for the mathematical economics. A statistical study of the server operating systems market is provided, static and dynamic models of for-profit and non-for-profit software developers mixed duopoly are built (taking into account market growth, interactions with hardware vendors, software piracy, and non-zero technical support costs). Stochastic generalizations of the Harrod – Domar model, Solow model, and the fundamental model of innovations diffusion model in terms of spatial heterogeneous economy are developed. The generalization of the Pontryagin maximum principle for distributed economic systems optimal control is formulated. The book is intended for academics specializing in mathematical economics and knowledge economics and university students of economics.open software, free software, proprietary software, mixed oligopoly,