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Optimal Promotional Effort Control Policy for Segment Specific New Product Growth

  • Prerna Manik
  • Kuldeep Chaudhary
  • Yogender Singh
  • P. C. Jha
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 202)

Abstract

We have incorporated the concept of market segmentation in the mixed influence diffusion model to study the impact of promotional effort on segment specific new product growth, with a view to arrive at the optimal promotional effort rate in a segmented market. Evolution of sales rate for each segment is developed under the assumption that practitioner may choose both differentiated market promotional effort and mass market promotional effort to influence the sales in unsaturated portion of the market. Accordingly, we have formulated the optimal control problem incorporating impact of differentiated market promotional effort as well as mass market promotional effort on sales rate for each segment, where mass market promotional effort influences each segment with a fixed spectrum. We have obtained the optimal promotional effort policy for the proposed model. To illustrate the applicability of the approach, a numerical example has been discussed and solved using differential evolution algorithm.

Keywords

Differentiated market promotional effort Mass market promotional effort Spectrum effect Promotional effort policy Differential evolution algorithm 

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Copyright information

© Springer India 2013

Authors and Affiliations

  • Prerna Manik
    • 1
  • Kuldeep Chaudhary
    • 1
  • Yogender Singh
    • 1
  • P. C. Jha
    • 1
  1. 1.Department of Operational ResearchUniversity of DelhiDelhiIndia

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