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Optimal risk in marketing resource allocation

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dc.affiliation.dptoUC3M. Departamento de Economía de la Empresaes
dc.contributor.authorBalbás, Alejandro
dc.contributor.authorEsteban-Bravo, Mercedes
dc.contributor.authorVidal-Sanz, Jose M.
dc.contributor.editorUniversidad Carlos III de Madrid. Departamento de Economía de la Empresa
dc.date.accessioned2009-10-20T17:30:14Z
dc.date.available2009-10-20T17:30:14Z
dc.date.issued2009-10
dc.description.abstractMarketing resource allocation is increasingly based on the optimization of expected returns on investment. If the investment is implemented in a large number of repetitive and relatively independent simple decisions, it is an acceptable method, but risk must be considered otherwise. The Markowitz classical mean-deviation approach to value marketing activities is of limited use when the probability distributions of the returns are asymmetric (a common case in marketing). In this paper we consider a unifying treatment for optimal marketing resource allocation and valuation of marketing investments in risky markets where returns can be asymmetric, using coherent risk measures recently developed in finance. We propose a set of first order conditions for the solution, and present a numerical algorithm for the computation of the optimal plan. We use this approach to design optimal advertisement investments in sales response management
dc.format.mimetypeapplication/pdf
dc.identifier.repecwb090868
dc.identifier.urihttps://hdl.handle.net/10016/5505
dc.language.isoeng
dc.relation.ispartofseriesUC3M Working papers. Business Economics
dc.relation.ispartofseries09-08
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España
dc.rights.accessRightsopen access
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.ecienciaEmpresa
dc.subject.otherResource allocation
dc.subject.otherCoherent risk measures
dc.subject.otherOptimization
dc.subject.otherSales response models
dc.titleOptimal risk in marketing resource allocation
dc.typeworking paper*
dspace.entity.typePublication
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