{"title":"Optimal Control Promotional Policy for a New Product Incorporating Repeat Purchase in Segmented Market: A Control Theoretic Approach","authors":"Kuldeep Chaudhary, P. Jha","doi":"10.5772/INTECHOPEN.81385","DOIUrl":null,"url":null,"abstract":"This chapter considers an optimal control model to obtain dynamic promotional policies for a product considering a segmented market where first-time and additional repeat purchase sales are assumed to be generated through mass and differentiated promotions. Mass promotion is carried out in the whole market which reaches each segment with a fixed spectrum, and differentiated promotion is catered to each segment individually. The firm ’ s finite promotional resources are to be allocated for promoting a product at mass and segment levels of the market in a finite time period. The formulated control problem obtains optimal promotional effort policy for each segment using the maximum principle. The applicability of the proposed control model is illustrated through a numerical example by discretizing the model.","PeriodicalId":13667,"journal":{"name":"Industrial & Engineering Chemistry","volume":"20 9 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2018-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Industrial & Engineering Chemistry","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.5772/INTECHOPEN.81385","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 2
Abstract
This chapter considers an optimal control model to obtain dynamic promotional policies for a product considering a segmented market where first-time and additional repeat purchase sales are assumed to be generated through mass and differentiated promotions. Mass promotion is carried out in the whole market which reaches each segment with a fixed spectrum, and differentiated promotion is catered to each segment individually. The firm ’ s finite promotional resources are to be allocated for promoting a product at mass and segment levels of the market in a finite time period. The formulated control problem obtains optimal promotional effort policy for each segment using the maximum principle. The applicability of the proposed control model is illustrated through a numerical example by discretizing the model.