Mathematical model of referral marketing strategy

Abstract

A marketing strategy is an attempt to campaign for a product so that information about the product becomes viral. Advertising strategy began to be combined by involving customers to campaign for the company's products. This marketing strategy is known as the referral marketing strategy. Viral information in a community can be analogous to the pandemic condition of a disease. This study aims to examine the relationship between the epidemiological model and the marketing model with a referral strategy. This research is a literature study with the results of a marketing model design with a referral strategy. Based on the research, there are 4 groups in marketing modeling with a referral strategy, namely Unaware, Potential Broadcaster, Broadcaster, and Inert. The epidemiological model that is suitable for this condition is the SEIR model. Adjustments to the SEIR Model need to be made because the dynamics of the Unaware can go directly to the Inert because of the trust factor in marketing information. The simulation results show that the parameters that have an important role in making information viral are the customer network and the incubation time of the information becoming viral.