Coordination of Pricing, Advertising, and Production Decisions for Multiple Products PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Coordination of Pricing, Advertising, and Production Decisions for Multiple Products PDF full book. Access full book title Coordination of Pricing, Advertising, and Production Decisions for Multiple Products by Ahmad Naeem Bajwa. Download full books in PDF and EPUB format.
Author: Ahmad Naeem Bajwa
Publisher:
ISBN:
Category : Electronic dissertations
Languages : en
Pages : 123
Get Book Here
Book Description
This research aims to develop and propose mathematical models that can be used to facilitate cross-functional coordination between operations and marketing. We consider a dynamic problem of joint pricing, advertising, and production decisions for a profit maximizing firm that produces multiple products. We assume the firm operates in monopolistic environment, where demand for its products is a function of price and advertising expenditure. We model the problem as a mixed integer nonlinear program, incorporating capacity constraints, setup costs, and demand seasonality. We first model and solve the pricing problem without advertising. Later, we extend the model to include advertising as decision variables. The demand for each product is assumed to be continuous, differentiable, strictly decreasing in price and concave in advertising. We present a solution approach which can be used for constant pricing, as well as dynamic pricing strategies. Furthermore, the solution approach is more general and applicable for linear as well as nonlinear demand functions. Using real world data from a manufacturer, we create problem instances, for different demand scenarios at different capacities, and solve for optimal prices for each strategy. We present analytical results that provide managerial insights on how the optimal prices change for different production plans and at different capacities. We compare the firm's profitability for the two pricing strategies, and show that dynamic pricing is valuable at low capacities and when at least one of the products has peak demand in the beginning of the planning horizon. We show that the optimal allocation of advertising budget across products does not change with budget changes. Moreover, the change is minimal with changes in demand seasonality. It is optimal to increase advertising in periods of higher demand and decrease in periods of lower demand. Hence, firms can use rules of thumb and need not to frequently review the allocation. Numerical results show that the proposed algorithms have good convergence properties. Finally, as it is clear from review of academic literature; there are no decision support systems that truly integrate the production/inventory and pricing decisions - specially for multi-product problems. We believe, this work makes valuable contributions in developing solution methodologies that can be incorporated in such decision support systems.
Author: Ahmad Naeem Bajwa
Publisher:
ISBN:
Category : Electronic dissertations
Languages : en
Pages : 123
Get Book Here
Book Description
This research aims to develop and propose mathematical models that can be used to facilitate cross-functional coordination between operations and marketing. We consider a dynamic problem of joint pricing, advertising, and production decisions for a profit maximizing firm that produces multiple products. We assume the firm operates in monopolistic environment, where demand for its products is a function of price and advertising expenditure. We model the problem as a mixed integer nonlinear program, incorporating capacity constraints, setup costs, and demand seasonality. We first model and solve the pricing problem without advertising. Later, we extend the model to include advertising as decision variables. The demand for each product is assumed to be continuous, differentiable, strictly decreasing in price and concave in advertising. We present a solution approach which can be used for constant pricing, as well as dynamic pricing strategies. Furthermore, the solution approach is more general and applicable for linear as well as nonlinear demand functions. Using real world data from a manufacturer, we create problem instances, for different demand scenarios at different capacities, and solve for optimal prices for each strategy. We present analytical results that provide managerial insights on how the optimal prices change for different production plans and at different capacities. We compare the firm's profitability for the two pricing strategies, and show that dynamic pricing is valuable at low capacities and when at least one of the products has peak demand in the beginning of the planning horizon. We show that the optimal allocation of advertising budget across products does not change with budget changes. Moreover, the change is minimal with changes in demand seasonality. It is optimal to increase advertising in periods of higher demand and decrease in periods of lower demand. Hence, firms can use rules of thumb and need not to frequently review the allocation. Numerical results show that the proposed algorithms have good convergence properties. Finally, as it is clear from review of academic literature; there are no decision support systems that truly integrate the production/inventory and pricing decisions - specially for multi-product problems. We believe, this work makes valuable contributions in developing solution methodologies that can be incorporated in such decision support systems.
Author: Pelin Pekgun
Publisher:
ISBN:
Category :
Languages : en
Pages : 24
Get Book Here
Book Description
We study a firm which serves customers that are sensitive to quoted price and leadtime, with pricing and leadtime decisions being made by the marketing and production departments, respectively. We analyze the inefficiencies created by the decentralization of the price and leadtime decisions. In the decentralized setting, the total demand generated is larger, leadtimes are longer, quoted prices are lower, and the firm's profits are lower as compared to the centralized setting. We show that coordination can be achieved using a transfer price contract with bonus payments. We also provide insights on the sensitivity of the optimal decisions with respect to market characteristics, sequence of decisions and the firm's capacity level.
Author: Mohsen Sharifani
Publisher:
ISBN:
Category : Factors of production
Languages : en
Pages : 154
Get Book Here
Book Description
Randomness is a common and yet quite an expensive challenge that every manufacturing and marketing system faces. In this research we focus on products for which the malfunction likelihood of the production outputs are not independent of one another, such as flu vaccine and semiconductors. Production has random yield that is interpreted as the ratio of the faultless items in a production batch. We also assume that these products have a limited marketing season, suggesting the news-vendor model with randomness on the supply side is an outstanding platform to analyze the production and marketing processes of such products. Our base model studies a single manufacturer present in a single market, where the manufacturer dynamically selects the production commitment and the price at the beginning of the production season and marketing season, accordingly. Also, we assume that demand is deterministic but price dependent. For strategically important products such as the flu vaccine, the government may find it necessary to intervene in the pricing or manufacturing process in order to coordinate the market. The need for coordinating the market may also be met by other consumer interest groups such as distribution channel owners, think-tanks or policy making agencies. We incorporate the presence of a social planner in our model by studying the centralized case and the socially optimum production commitment and pricing schema. The challenge is to find contracts that can set the conditions for the manufacturer in a way that his optimum production and pricing policy is exactly the same as the one of the social planner. Our study introduces three contracts that can coordinate the market. In the second phase of this research, we study the same problem for the cases where there are two symmetrical manufacturers with inter-dependent demands. By the third phase, we study the case with one manufacturer who has the option to provide the product to two different markets with different characteristics. Our study shows that production commitment is smaller if there is no randomness and the yield ratio is known. We also show that the production commitment of the centralized setting can be either less or more than the production commitment of the decentralized setting, depending on the salvage cost. Numerical analysis, managerial insights, and conclusions are presented at the end of each chapter.
Author: Daniel Seymour
Publisher: Irwin Professional Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 484
Get Book Here
Book Description
Author: Marlene Jensen
Publisher: John Wiley & Sons
ISBN: 1118502663
Category : Business & Economics
Languages : en
Pages : 82
Get Book Here
Book Description
Time-tested strategies for making the best possible pricing decisions and gaining an unbeatable competitive advantage Pricing is one of the most important—and difficult—marketing problems companies face when launching new products. Unfortunately, the research that goes into making optimal pricing decisions is a very time-consuming process—unless, that is, you can afford to pay a consultant or outside agency to do it for you. But if you're like most small- to medium-sized business owners and managers, time and money are two things you absolutely don't have to spare. Problem solved: Written by a nationally recognized pricing expert, this book arms you with proven strategies for guaranteeing that you'll never again leave money on the table when determining prices. And you'll spend the least possible time setting your more profitable prices. Packed with valuable worksheets and other valuable tools to help guide your research and your pricing decision-making A goldmine of expert tips for pricing in any specialty market, it offers a highly effective way to market your company's product more effectively and profitably Shows you how to avoid making your competitors' pricing mistakes and gain a powerful competitive edge in the process The author uses examples drawn from her years of consulting work with companies large and small, including Food Network, American Express Publishing, and Playboy
Author: Manfred Krafft
Publisher: Springer Science & Business Media
ISBN: 3540720030
Category : Business & Economics
Languages : en
Pages : 458
Get Book Here
Book Description
With crisp and insightful contributions from 47 of the world’s leading experts in various facets of retailing, Retailing in the 21st Century offers in one book a compendium of state-of-the-art, cutting-edge knowledge to guide successful retailing in the new millennium. In our competitive world, retailing is an exciting, complex and critical sector of business in most developed as well as emerging economies. Today, the retailing industry is being buffeted by a number of forces simultaneously, for example the growth of online retailing and the advent of ‘radio frequency identification’ (RFID) technology. Making sense of it all is not easy but of vital importance to retailing practitioners, analysts and policymakers.
Author: Peter S.H. Leeflang
Publisher: Springer Science & Business Media
ISBN: 146154050X
Category : Business & Economics
Languages : en
Pages : 642
Get Book Here
Book Description
This book is about marketing models and the process of model building. Our primary focus is on models that can be used by managers to support marketing decisions. It has long been known that simple models usually outperform judgments in predicting outcomes in a wide variety of contexts. For example, models of judgments tend to provide better forecasts of the outcomes than the judgments themselves (because the model eliminates the noise in judgments). And since judgments never fully reflect the complexities of the many forces that influence outcomes, it is easy to see why models of actual outcomes should be very attractive to (marketing) decision makers. Thus, appropriately constructed models can provide insights about structural relations between marketing variables. Since models explicate the relations, both the process of model building and the model that ultimately results can improve the quality of marketing decisions. Managers often use rules of thumb for decisions. For example, a brand manager will have defined a specific set of alternative brands as the competitive set within a product category. Usually this set is based on perceived similarities in brand characteristics, advertising messages, etc. If a new marketing initiative occurs for one of the other brands, the brand manager will have a strong inclination to react. The reaction is partly based on the manager's desire to maintain some competitive parity in the mar keting variables.
Author: Masaaki (Mike) Kotabe
Publisher: John Wiley & Sons
ISBN: 1119563119
Category : Business & Economics
Languages : en
Pages : 770
Get Book Here
Book Description
Global Marketing Management, 8th Edition combines academic rigor, contemporary relevance, and student-friendly readability to review how marketing managers can succeed in the increasingly competitive international business environment. This in-depth yet accessible textbook helps students understand state-of-the-art global marketing practices and recognize how marketing managers work across business functions to achieve overall corporate goals. The author provides relevant historical background and offers logical explanations of current trends based on information from marketing executives and academic researchers around the world. Designed for students majoring in business, this thoroughly updated eighth edition both describes today's multilateral realities and explores the future of marketing in a global context. Building upon four main themes, the text discusses marketing management in light of the drastic changes the global economy has undergone, the explosive growth of information technology and e-commerce, the economic and political forces of globalization, and the various consequences of corporate action such as environmental pollution, substandard food safely, and unsafe work environments. Each chapter contains review and discussion questions to encourage classroom participation and strengthen student learning.
Author:
Publisher: DIANE Publishing
ISBN: 1428907882
Category :
Languages : en
Pages : 43
Get Book Here
Book Description
Author: Prafulla Joglekar
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
This paper presents a set of eight models of coordination for pricing and order quantity decisions in a supply chain consisting of one manufacturer and one retailer of a product with price sensitive demand. In many organisations, the marketing department makes the pricing decisions, whereas the operations department makes the order quantity decisions. Yet, many researchers have suggested that organisations can benefit from intra-organisational coordination for these two decisions. Similarly, in a typical supply chain, the manufacturer's decisions are not coordinated with the retailer's decisions. So far, many researchers have suggested that a supply chain can benefit from the coordination of the order quantity decisions of the manufacturer and the retailer. Others have recommended supply chain coordination for pricing decisions. Thus, there are a number of possibilities for intra- and inter-organisational coordination (or a lack of coordination) for the pricing and order quantity decisions in a supply chain. We study each possibility and compare its advantages and disadvantages relative to other coordination possibilities. The analysis leads to interesting and, at times, paradoxical results. For example, we find that, in the absence of inter-, intra-organisational coordination by either the manufacturer or the retailer, or both, leads to a reduction in the supply chain's profit compared to its profit from a no-coordination situation. As would be expected, complete intraand inter-organisational coordination results in the best profit for the supply chain. However, the supply chain's profit from inter-organisational coordination for pricing decisions alone is only marginally smaller than the profit from complete coordination. Hence, considering the tangible and intangible costs of a coordination mechanism, we recommend that a supply chain should coordinate its pricing decisions, but should not indulge in the coordination of its order quantity decisions. An extensive sensitivity analysis confirms our major findings and yields interesting insights into the relative advantages and disadvantages of various coordination possibilities in marketing and inventory-related decisions.
