Synthesizing Short Run Production and Marketing Decisions

Welam, Ulf Peter

doi:10.1080/05695557708975121

Cited by 21 publications

(5 citation statements)

References 6 publications

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“…The idea of coordinated decision making across different units within an organization is not new (Fauli-Oller and Giralt 1995). For instance, there is a number of papers in the literature that study coordinated decisions between marketing and production/manufacturing (e.g., Abad 1987, Eliashberg and Steinberg 1993, Freeland 1980, Morgan et al 2001, Shapiro 1977, Sogomonian and Tang 1993, Thomas 1971, Ulusoy and Yazgac 1995, Welam 1977. In addition, several special issues and articles have been published on marketing and operations management coordination (e.g., Demirezen and Kumar 2016, Gou et al 2014, Ho and Tang 2004, 2009.…”

Section: Problem and Motivationmentioning

confidence: 99%

Managing Retail Budget Allocation between Store Labor and Marketing Activities

Perdikaki

Kumar

Sriskandarajah

2017

Production and Operations Management

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The performance of a retail store depends on its ability to attract customer traffic, match labor with incoming traffic, and convert the incoming traffic into sales. Retailers make significant investments in marketing activities (such as advertising) to bring customers into their stores and in‐store labor to convert that traffic into sales. Thus, a common trade‐off that retail store managers face concerns the allocation of a store's limited budget between advertising and labor to enhance store‐level sales. To explore that trade‐off, we develop a centralized model to allocate limited store budget between store labor and advertising with the objective of maximizing store sales. We find that a store's inherent potential to drive traffic plays an important role, among other factors, in the relative allocation between advertising and store labor. We also find that as advertising instruments become more effective in bringing traffic to stores, managers should not always capitalize this effectiveness by increasing their existing allocations to advertising. In addition, we discuss a decentralized setting where budget allocation decisions cannot be enforced by a store manager and present a simple mechanism that can achieve the centralized solution. In an extension, we address the budget allocation problem in the presence of marketing efforts to shift store traffic from peak to off peak hours and show that our initial findings are robust. Further, we illustrate how the solution from the budget allocation model can be used to facilitate store level sales force planning/scheduling decisions. Based on the results of our model, we present several insights that can help managers in budget allocation and sales force planning.

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Section: Problem and Motivationmentioning

confidence: 99%

Managing Retail Budget Allocation between Store Labor and Marketing Activities

Perdikaki

Kumar

Sriskandarajah

2017

Production and Operations Management

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“…For example, Feichtinger et al (1994) suggest that it is very important to build more realistic corporate models that consider the impact of other functional areas on the advertising decisions. In this direction, production and advertising decisions are considered simultaneously in several studies, e.g., see Thomas (1971), Welam (1977), Freeland (1980), Abad (1987), Sogomonian and Tang (1993), and Ulusoy and Yazgac (1995)-a detailed review on this literature is provided in Eliashberg and Steinberg (1993). The importance of more such models, interfacing advertising with other functional areas, has been highlighted in several other studies (e.g., Shapiro 1977, Abad 1982, Sethi and Zhang 1992, Dockner et al 2000.…”

Section: Dynamic Optimization Of Advertising Effortmentioning

confidence: 96%

Advertising Strategies in Electronic Retailing: A Differential Games Approach

Liu

Kumar

Mookerjee

2012

Information Systems Research

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W e consider advertising problems under an information technology (IT) capacity constraint encountered by electronic retailers in a duopolistic setting. There is a considerable amount of literature on advertising games between firms, yet introducing an IT capacity constraint fundamentally changes this problem. In the presence of information processing constraints, although advertising may still cause a customer to switch, it may not result in a sale, i.e., the customer may be lost by both firms. This situation could occur when customers have a limited tolerance for processing delays and leave the website of a firm because of slow response. In such situations, attracting more traffic to a firm's site (by increasing advertising expenditure) may not generate enough additional revenue to warrant this expenditure. We use a differential game formulation to obtain closedform solutions for the advertising effort over time in the presence of IT capacity constraints. Based on these solutions, we present several useful managerial insights.

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“…Por otra parte, [50] estudió las consecuencias de relajar el supuesto de una previsión exógena de la demanda, exponiendo un modelo para estimar de manera sincrónica las actividades relacionadas con producción y demanda, facilitando un marco lógico para analizar los beneficios de la coordinación en las decisiones de producción y comercialización. Finalmente, [51] relacionó la estructura del canal de producción y distribución y las políticas de precio y producción, e inventario, para determinar el impacto positivo o negativo de la tasa de producción, buscando identificar aquellas fallas relacionadas con las políticas de precios del fabricante y del minorista, y la política de producción.…”

Section: Documentos Estructurales (Tronco)unclassified