PROMOTION FUND ALLOCATION OPTIMIZATION FOR DISCOUNTABLE PRODUCT USING MARKOWITZ MODEL
Every business person always wants a maximum return in every endeavor. For example, a marketing manager will try to maximize returns by investing in promotional activities. The greater the promotional costs incurred, the greater the return they expect. Markowitz model as one of the models that ar...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/47713 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Every business person always wants a maximum return in every endeavor. For
example, a marketing manager will try to maximize returns by investing in
promotional activities. The greater the promotional costs incurred, the greater the
return they expect. Markowitz model as one of the models that are often used in
financial investment, has helped investors to maximize portfolio returns. By making
a few modifications, in this study the application of the Markowitz model does not
only cover the financial sector, but also in the marketing field. In general, the
appropriate allocation of promotional costs for product discounts can affect sales
returns. Assuming that each discount level can be classified as an asset, the
Markowitz model can be used to solve marketing problems. This study shows that
the Markowitz model is able to build optimal portfolios from the allocation of
promotional costs for discounted products at each level of risk. |
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