IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v11y1992i3p221-234.html
   My bibliography  Save this article

Pulsing Policies for Aggregate Advertising Models

Author

Listed:
  • Fred M. Feinberg

    (Duke University)

Abstract

Classical continuous-time models of advertising expenditure tend to fall into two categories, those that prescribe spending at a constant level and those that prescribe switching infinitely quickly between several different levels of spending. The latter practice, , though impossible literally, can be interpreted in practice to imply that the faster the switching the better. Empirical evidence, however, sometimes suggests the superiority of , alternating between different spending levels with finite frequency, for example in a periodic fashion. Furthermore, the actual behavior of marketing managers, who often advertise in flights or pulses, appears to differ from the optimal policies many current models prescribe. Showing how structural properties of common advertising models rule out finite-frequency pulsing , we develop a continuous-time model for which finite-frequency pulsing can be optimal. Relaxing these structural assumptions yields a new class of models which, for certain values of their parameters, lead to periodic pulsing optima; this is accomplished by inclusion of both S-shaped response and an exponential-smoothing filter. These theoretical results are illustrated through simulation of a variant of the Vidale-Wolfe model.

Suggested Citation

  • Fred M. Feinberg, 1992. "Pulsing Policies for Aggregate Advertising Models," Marketing Science, INFORMS, vol. 11(3), pages 221-234.
  • Handle: RePEc:inm:ormksc:v:11:y:1992:i:3:p:221-234
    DOI: 10.1287/mksc.11.3.221
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.11.3.221
    Download Restriction: no

    File URL: https://libkey.io/10.1287/mksc.11.3.221?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mercedes Esteban-Bravo & José Múgica & Jose Vidal-Sanz, 2005. "Optimal Duration of Magazine Promotions," Marketing Letters, Springer, vol. 16(2), pages 99-114, April.
    2. Gijsenberg, Maarten & Nijs, Vincent R., 2018. "Advertising Timing," Research Report 2018004-MARK, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    3. Ralf Dewenter & Ulrich Heimeshoff, 2015. "Do expert reviews really drive demand? Evidence from a German car magazine," Applied Economics Letters, Taylor & Francis Journals, vol. 22(14), pages 1150-1153, September.
    4. Michael Braun & Wendy W. Moe, 2013. "Online Display Advertising: Modeling the Effects of Multiple Creatives and Individual Impression Histories," Marketing Science, INFORMS, vol. 32(5), pages 753-767, September.
    5. Bischi, Gian Italo & Gardini, Laura & Kopel, Michael, 2000. "Analysis of global bifurcations in a market share attraction model," Journal of Economic Dynamics and Control, Elsevier, vol. 24(5-7), pages 855-879, June.
    6. Prasad A. Naik & Murali K. Mantrala & Alan G. Sawyer, 1998. "Planning Media Schedules in the Presence of Dynamic Advertising Quality," Marketing Science, INFORMS, vol. 17(3), pages 214-235.
    7. Marshall Freimer & Dan Horsky, 2012. "Periodic Advertising Pulsing in a Competitive Market," Marketing Science, INFORMS, vol. 31(4), pages 637-648, July.
    8. Ralf Dewenter & Ulrich Heimeshoff & Tobias Thomas, 2016. "Media Coverage and Car Manufacturers' Sales," Economics Bulletin, AccessEcon, vol. 36(2), pages 976-982.
    9. Dengpan Liu & Subodha Kumar & Vijay S. Mookerjee, 2012. "Advertising Strategies in Electronic Retailing: A Differential Games Approach," Information Systems Research, INFORMS, vol. 23(3-part-2), pages 903-917, September.
    10. Danaher, Peter J. & Rust, Roland T., 1996. "Determining the optimal return on investment for an advertising campaign," European Journal of Operational Research, Elsevier, vol. 95(3), pages 511-521, December.
    11. Hanssens, Dominique M. & Wang, Fang & Zhang, Xiao-Ping, 2016. "Performance growth and opportunistic marketing spending," International Journal of Research in Marketing, Elsevier, vol. 33(4), pages 711-724.
    12. Allan Hodgson & Suntharee Lhaopadchan & Raluca Ratiu, 2018. "Is advertising under‐resourced in a growth market? Intangible endogeneity and informed trading issues," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 58(S1), pages 343-373, November.
    13. Frank M. Bass & Norris Bruce & Sumit Majumdar & B. P. S. Murthi, 2007. "Wearout Effects of Different Advertising Themes: A Dynamic Bayesian Model of the Advertising-Sales Relationship," Marketing Science, INFORMS, vol. 26(2), pages 179-195, 03-04.
    14. Fred M. Feinberg, 2001. "On Continuous-Time Optimal Advertising Under S-Shaped Response," Management Science, INFORMS, vol. 47(11), pages 1476-1487, November.
    15. Mesak, Hani Ibrahim & Bari, Abdullahel & Lian, Qin, 2015. "Pulsation in a competitive model of advertising-firm's cost interaction," European Journal of Operational Research, Elsevier, vol. 246(3), pages 916-926.
    16. Gijsenberg, Maarten J. & Nijs, Vincent R., 2019. "Advertising spending patterns and competitor impact," International Journal of Research in Marketing, Elsevier, vol. 36(2), pages 232-250.
    17. Ashwin Aravindakshan & Prasad A. Naik, 2015. "Understanding the Memory Effects in Pulsing Advertising," Operations Research, INFORMS, vol. 63(1), pages 35-47, February.
    18. Mesak, Hani I., 1999. "On the generalizability of advertising pulsation monopoly results to an oligopoly," European Journal of Operational Research, Elsevier, vol. 117(3), pages 429-449, September.
    19. Mesak, Hani I. & Ellis, T. Selwyn, 2009. "On the superiority of pulsing under a concave advertising market potential function," European Journal of Operational Research, Elsevier, vol. 194(2), pages 608-627, April.
    20. Ryan Dew & Nicolas Padilla & Anya Shchetkina, 2024. "Your MMM is Broken: Identification of Nonlinear and Time-varying Effects in Marketing Mix Models," Papers 2408.07678, arXiv.org.
    21. Demetrios Vakratsas & Fred M. Feinberg & Frank M. Bass & Gurumurthy Kalyanaram, 2004. "The Shape of Advertising Response Functions Revisited: A Model of Dynamic Probabilistic Thresholds," Marketing Science, INFORMS, vol. 23(1), pages 109-119, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:11:y:1992:i:3:p:221-234. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.