Marketing Portfolio Management in a Spectrum of Marketing Assets Interaction to Maximize Holder’s Utility

Authors

  • Aleksandras Vytautas Rutkauskas Vilnius Gediminas Technical University
  • Indre Lapinskaite-Vvohlfahrt Vilnius Gediminas Technical University
  • Viktorija Stasytyte Vilnius Gediminas Technical University

DOI:

https://doi.org/10.5755/j01.ee.22.5.967

Keywords:

adequate portfolio, efficient surface, marketing portfolio, marketing asset, marketing metrics, Markowitz random field

Abstract

A whole set of problems rises as Marketing portfolio stratum (cluster) forms: measuring the impact of marketing on business development, identifying the assets of marketing portfolio, structuring the interaction of marketing assets, selecting the quantitative models of mentioned interactions, generating the information required quantitative description by expert or other means. Finally, finding the optimal solution conditioned by marketing as complex media opportunities, what is usually done by formulating particularly complex task of stochastic programming and creating as often as not quite complex decision methods.

The article deals with the situation which can be described in the following way. It is assumed that in order to increase marketing contribution, a certain amount of capital is additionally distributed in between 4P elements seeking to achieve optimal additional increase of business results triggered by such investment. Herewith it is aimed to combine for investment the efforts with the possibility in order to spread the obtained increase realization between two segments of customers, with different profit possibilities. Additionally, one more problem appears – how to make the choice between the two creditors when it is possible to evaluate debt service imposed the present value probability distribution of possibilities to each of them.

The purpose of situation content is - to find such investment in the 4P mix, sales in A and B segments and loan between the creditor number 1 and 2 proportions which would allow to find the optimum solution, according to a certain composition of the possibility’s effectiveness, reliability and subject risk. To find the solutions, Markowitz random field technique proposed by the authors was used.

http://dx.doi.org/10.5755/j01.ee.22.5.967

Additional Files

Published

2011-12-19

Issue

Section

ECONOMICS OF ENGINEERING DECISIONS