On maximizing the adoption of multi-products in multiple market segments

Promotional effort is an important component of marketing mix that determines the success of a product in the market. The market of products offered by a firm can be segmented with respect to geographical location, tastes, culture, age, sex, disposable income of the consumers and other factors. Effectiveness of promotional campaigns in different market segments varies and is determined by the adoption process. Hence distribution of limited promotional resources in these segments is of immense interest. In this paper we formulate mathematical programming problems, which optimally allocate the limited promotional resources among the segments so as to maximize the total sales of the products under technical constraints and develop their solution methods. Results are illustrated with a numerical example.