Advertising and Advertising Claims Over Time

Abstract

Advertising budget allocation with carryover effects over time is a problem that was treated extensively by economists. Additional developments were carried out by Sethi who has also provided some outstanding review papers. The model treated by Sethi were essentially defined in terms of optimal control problems using deterministic advertising models while my own were essentially sales response stochastic models with advertising budget determined by stochastic control problems. These problems continue to be of academic and practical interest. Issues relating to the "advertising message" such as truthful claims advertising directed to first time buyers has not attracted much attention however.