@inproceedings{ef08c4709f0043f1a31a9f21986f6b1e,
title = "Optimal Advertising Expenditure",
abstract = "The main purpose of advertising is to impact buying behavior of consumers which can differ significantly between individuals based on their memories and experiences. Multiple factors impact a firm{\textquoteright}s decision to advertise such as the expense involved, the best medium to reach the target consumer, and the return rate of the advertising effort. In this paper, we developed a socioeconomic model to determine the firm{\textquoteright}s optimal advertising and marketing effort levels in order to maximize overall profit. Using numerical simulations, we examined the optimal solutions based on the performance of advertising activities. We also found a potential increase in sales relative to the optimized advertising expenditures. This helps the firm in deciding when to discontinue the old and introduce a new product or brand.",
keywords = "Market saturation, Optimal advertising effort, Return rate",
author = "Justin Abeles and Bitew, \{Worku T.\} and Radika Latchman and Nicholas Seaton and Michael Tartamella and Richard Vogel",
note = "Publisher Copyright: {\textcopyright} The Author(s), under exclusive license to Springer Nature Switzerland AG 2023.; 7th International Conference on Optimization, Simulation and Control, COSC 2022 ; Conference date: 20-06-2022 Through 22-06-2022",
year = "2023",
doi = "10.1007/978-3-031-41229-5\_6",
language = "English",
isbn = "9783031412288",
series = "Springer Proceedings in Mathematics and Statistics",
publisher = "Springer",
pages = "79--87",
editor = "Rentsen Enkhbat and Altannar Chinchuluun and Pardalos, \{Panos M.\}",
booktitle = "Optimization, Simulation and Control - ICOSC 2022",
}