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Grosset, Luca and Viscolani, Bruno (2006) Optimal advertising in a segmented market under different media choices. [Preprint]

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Abstract (english)

Segmentation is a core strategy in modern marketing but, to the best of our knowledge, it is not considered in most dynamic advertising models. In this paper we aim at filling such a gap and we present a dynamic advertising model which includes market segmentation. First, we model the goodwill evolution
in a segmented market under the assumption that the decision maker may choose independently the advertising intensity directed to each different segment. Then, we assume that the decision maker has to use a single medium, which reaches several segments with different effectiveness. We obtain the explicit solutions of the relevant optimal control problems. These results permit us to compare the two different contexts and to
obtain a preference index for advertising media.


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EPrint type:Preprint
Anno di Pubblicazione:2006
Key Words:Advertising; Segmentation; Media
Settori scientifico-disciplinari MIUR:Area 13 - Scienze economiche e statistiche > SECS-S/06 Metodi matematici dell'economia e delle scienze attuariali e finanziarie
Struttura di riferimento:Dipartimenti > Dipartimento di Matematica
Codice ID:109
Depositato il:14 Aug 2007
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