Abstract
This paper proposes the application of Markowitz’s Modern Portfolio Theory to the selection of digital communication channels, in order to attain the finest trade-off between return on investment and risk. Previous application of financial portfolio theory in Marketing, as a means to optimize the portfolio, focused solely on the use of the model in decisions related to product, customer and customer segment, retail format and price promotion portfolios. The authors concluded that the Modern Portfolio Theory may be used as a decision support system in the selection of a company’s Digital Marketing channels or tactics, mutatis mutandis, so to find the share of the communication budget to be allocated to each type of digital channel or tactic.
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Frausto-da-Silva, T., Grilo, A., Cruz-Machado, V. (2015). Selection of Digital Marketing Channels: Application of Modern Portfolio Theory. In: Gen, M., Kim, K., Huang, X., Hiroshi, Y. (eds) Industrial Engineering, Management Science and Applications 2015. Lecture Notes in Electrical Engineering, vol 349. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-47200-2_62
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DOI: https://doi.org/10.1007/978-3-662-47200-2_62
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