The Handbook of Marketing presents a major retrospective and prospective overview of the field of marketing, and provides a landmark reference at a time when many of the traditional boundaries and domains within the marketing discipline have been subject to change. The Handbook frames, assesses and synthesizes the work in the field and helps to define and shape its current and future development. It includes contributions from leading scholars in the field, and the input of an international and extremely distinguished advisory board of marketing academics. The Handbook of Marketing will be invaluable to advanced undergraduates, graduate students and academics in marketing.
Chapter 17: Allocating Marketing Resources
Allocating Marketing Resources
A key responsibility of marketing managers is to decide the allocation of scarce marketing resources, e.g., advertising dollars, selling hours, retail shelf-space or merchandise inventories. Organizationally, these decisions begin with the basic ‘marketing mix’ issues of setting the size and allocation of the total marketing investment across advertising, personal selling, promotions and retailing efforts. Then, managers must decide how should the budget for a specific marketing instrument or activity, e.g., advertising or personal selling, be allocated across organizational planning units (market entities) such as products, geographic areas, media, accounts, and time periods, so as to optimize an objective function (short- or long-term contributions, profits).
Marketing resource allocation decisions are complicated, and managers tend to address them with fairly arbitrary and ...