Inside Cover or Main Title Page, with Logo add carriage return if only one line

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• Marketing Engineering

Moti Zviling
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• Topics of discussion

• Marketing Response Model - Why ? / Benefits
  using the model.
• Demo of Response Model Exercise.
• Strenghts and weaknesses of Visual Response
  Modeling software.
• Conclusions.

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• Marketing Response Model Why ?

• Understanding the customers needs.
• Improvres our ability to make decisions that
  influence market outcomes.
• Interactive decision models.
• Computer models help us to simplify
  representations faced by the manager.
• Tools for the mind , help managers use objective
  and subjective data to support their decisions.
• Simulated learning enviroments.
• Training and practice sessions to test the mental
  models of market behaviour.

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• Demo of response model exercise

• We would like to examine the relationship
  between promotional spending and sales that can
  be linked to profit.
• We will use the Visual Response Model called
  ADBUDG Model it has the form
• Y b (a b) (Xc)/(dXc).
• The model is S Shaped for c gt 1 , and concave
  for 0ltclt1.
• The model used widely to model response to
  advertising and selling effort.
• We can calibrate the models (statistically or
  judgmentally) and see how they change in the
  shape and behavior when the parameters change.

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• Visual Response Model

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• ADBUDG Model

• Changing the Increment values will change graph
  behavior
• Profit Function ( r 2.25 , s 1.69 , t 1)

• Sales Function

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• ADBUDG Model - Results

Best level of promotional spending Is at x
1.43 where y 5.38 (1.43,5.38)
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• When the market saturates at 13.88MM units
  rather than the 11.8 MM

Best level of promotional spending Is at x
2.5 where y 6.71
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• Conclusions

Optimal point Increases ? (More Marketing efforts
74.825 needed , profit raises in 24.72 only
!)  
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• Another Situation

• Improvements in logistic allow us to reduce the
  deliverd goods to new york to 1.39 unit from
  1.69 unit , thus it affects the graph as
  follows

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• ADBUDG Model - Results

Best level of promotional spending Is at x
0.71 where y 6.43
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• Conclusions

Optimal point Decreases ? (less Marketing efforts
gt More Profit)  
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• Strengths and
  weaknesses

 
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• Thank you for your attention