Marketing Strategy Formulation — Pure versus Mixed Strategies

Abstract

The paper considers Kotler's competitive model and increases the number of possible marketing strategies available by taking into account the combinations of the strategy alternatives. From the larger set of marketing strategies, the optimal strategy or strategies is identified. The objective function of the firm is found to be satisfied better by the combined strategy rather than by the best strategy from the set used by Kotler. The optimal combined strategy is found by a heuristically optimizing SDRDYN-algorithm suitable to simulation studies. As is expected, the larger set of strategy alternatives considered enable the firm to increase the value of its objective function.