The basic objective of this paper, has been to demonstrate the use of feed-back approaches to develop self-adaptive-market response models. Such approaches provide time-varying coefficients of the postulated market response models.
This paper present...
The basic objective of this paper, has been to demonstrate the use of feed-back approaches to develop self-adaptive-market response models. Such approaches provide time-varying coefficients of the postulated market response models.
This paper presents adaptive approaches to the estimation of coefficients of decision variables in the market response model. These approaches use the concept of feedback from the decision making environment. They require no a prioir assumptions about the time path of coefficients or knowledge about the nature or causes for time variations in the coefficients. The use of such approaches provides self adaptive coefficients of decision variables which can adjust automatically to changing data patterns in the presence of a dynamic marketing decision making environment.
The objective in these modeling efforts is to relate the market response, generally defined in terms of sales or market share, to the firm's advertising, price, promotion and other decision variables. The manager who is able to recognize the nature and trend of the variation will be better able to determine the timing and degree of changes in marketing strategy.
Supposed decision making is the management philosophy oriented in present and future, sucessful management depend upon whether he is better able to accomplish decision making or not.
The cornerstone of sucessful marketing planning is the measurement market potential and the determination of the company's market share. The sales forecast is the key, controlling factor in all operational planning in a firm.
No firm can product its business sucessfully without trying to measure the casual size of markets, present and future. Quantitative measurements are essntial for the analysis of market opportunity, the planning of marketing programs, and the controll of marketing efforts. The firm may make many measurements of demand, varying in the level of product aggregation, the time dimension, and the space dimension. The company, however, should be clear about its demand measurement concepts, particullary the distinction between market demand and company demand, and the corollary concepts of forecasts and potentials.