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Optimal Duration of Integrated Segment Specific and Mass Promotion Activities for Durable Technology Products: A Differential Evolution Approach

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Optimization, Variational Analysis and Applications (IFSOVAA 2020)

Part of the book series: Springer Proceedings in Mathematics & Statistics ((PROMS,volume 355))

Abstract

Promotion is carried out by firms for effective communication with potential customers so that response is achieved at different levels namely, awareness, interest, evaluation, trial, adoption, and market growth for the products. Firms have limited financial resources and time to market any of their products. Promotion activities on the other hand show diminishing returns. It is imperative for firms to use their resources judiciously and use scientific methods for related decisions. In this chapter, we propose an optimization model to determine the optimal duration of a promotion campaign for durable technology products marketed in a segmented market with an integrated segment-specific and mass promotion strategy. The proposed model at the same time incorporates the growth in the market potential due to promotional activities. There is limited scholarly research available in this domain and aspects of promotion and marketing environment considered in this study are not considered in any other research. Solution methodology based on nature-inspired optimization algorithm differential evolution is proposed, given the NP-hard nature of the proposed model and the suitability of the method to solve problems with real-valued decision variable with convergence to a global solution. A real-life case study is presented to illustrate model application, and test and compare performance with a similar recent study developed on the assumption of static market size. The proposed model shows fair results over the comparative study.

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Acknowledgements

The authors would like to express their gratitude to the referees for the valuable comments.

Author information

Authors and Affiliations

  1. ASMSOC, NMIMS University, Mumbai, 7th Floor, V.L. Mehta Road, Vile-Parle (West), Mumbai, 400056, India

    A. Kaul

  2. School of Business, Public Policy and Social Entrepreneurship, Dr. B.R. Ambedkar University Delhi, Delhi, 110006, India

    Anshu Gupta

  3. LBSIM, 11/07, Dwarka Sector 11, Near Dwarka Sector 11, Metro Station, New Delhi, Delhi, 110075, India

    S. Aggarwal

  4. Department of Operational Research, University of Delhi, Delhi, 110007, India

    P. C. Jha

  5. Business and Management Research Institute (BMRI), University of Bedfordshire, University Square, Luton, Bedfordshire, LU1 3JU, UK

    R. Ramanathan

Authors
  1. A. Kaul
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  2. Anshu Gupta
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  3. S. Aggarwal
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  4. P. C. Jha
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  5. R. Ramanathan
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Corresponding author

Correspondence to A. Kaul .

Editor information

Editors and Affiliations

  1. Institute of Science, Banaras Hindu University, Varanasi, Uttar Pradesh, India

    Vivek Laha

  2. Institut de Mathématiques de Toulouse, Paul Sabatier University, Toulouse, France

    Pierre Maréchal

  3. Institute of Science, Banaras Hindu University, Varanasi, Uttar Pradesh, India

    S. K. Mishra

Appendix (Steps of Differential Evolution)

Appendix (Steps of Differential Evolution)

See Fig. 15.5.

Fig. 15.5
figure 5

Steps of Differential Evolution

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Kaul, A., Gupta, A., Aggarwal, S., Jha, P.C., Ramanathan, R. (2021). Optimal Duration of Integrated Segment Specific and Mass Promotion Activities for Durable Technology Products: A Differential Evolution Approach. In: Laha, V., Maréchal, P., Mishra, S.K. (eds) Optimization, Variational Analysis and Applications. IFSOVAA 2020. Springer Proceedings in Mathematics & Statistics, vol 355. Springer, Singapore. https://doi.org/10.1007/978-981-16-1819-2_15

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