In this paper, a dynamic multi-objective linear integer programming model is proposed to optimally distribute a firm’s advertising budget among multiple products and media in a segmented market. To make the media plan responsive to the changes in the market, the distribution is carried out dynamically by dividing the planning horizon into smaller periods. | Yugoslav Journal of Operations Research 27 (2017), Number 2, 169–204 DOI: MULTI-PRODUCT DYNAMIC ADVERTISEMENT PLANNING IN A SEGMENTED MARKET Sugandha AGGARWAL Amity School of Business, Amity University, Noida, Uttar Pradesh 201313, India sugandha or@ Anshu GUPTA SBPPSE, Ambedkar University Delhi, Delhi 110006, India anshu@ Arshia KAUL Department of Operational Research, University of Delhi, Delhi 110007, India Mohan KRISHNAMOORTHY Department of Mechanical and Aerospace Engineering, Monash University, Melbourne, VIC, 3168, Australia . JHA Department of Operational Research, University of Delhi, Delhi 110007, India jhapc@ Received: January 2017 / Accepted: May 2017 Abstract: In this paper, a dynamic multi-objective linear integer programming model is proposed to optimally distribute a firm’s advertising budget among multiple products and media in a segmented market. To make the media plan responsive to the changes in the market, the distribution is carried out dynamically by dividing the planning horizon into smaller periods. The model incorporates the effect of the previous period advertising reach on the current period (taken through retention factor), and it also considers crossproduct effect of simultaneously advertising different products. An application of the model is presented for an insurance firm that markets five different products, using goal programming approach. Keywords: Media Planning, Segmented Market, Multiple Products, Cross-Product Effect, 170 S. Aggarwal, et al. / Multi-Product Dynamic Advertisement Planning Retention Factor, Dynamic Model. MSC: 90B60, 90C10, 90C29. 1. INTRODUCTION Advertising is an integral part of a firm’s marketing strategy. The impact of communication through advertising plays a vital role in the success or failure of products/services. The media acts as an intermediary that communicates .
