RT Generic
T1 Optimal risk in marketing resource allocation
A1 Balbás, Alejandro
A1 Esteban-Bravo, Mercedes
A1 Vidal-Sanz, Jose M.
A2 Universidad Carlos III de Madrid. Departamento de Economía de la Empresa, 
AB Marketing 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
YR 2009
FD 2009-10
LK https://hdl.handle.net/10016/5505
UL https://hdl.handle.net/10016/5505
LA eng
DS e-Archivo
RD 1 sept. 2024