Premium
Optimal development budgets tied to the marketing mix
Author(s) -
Boyer André,
Palda Kristian S.
Publication year - 1975
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.1975.tb01076.x
Subject(s) - promotion (chess) , quality (philosophy) , marketing mix , product (mathematics) , marketing , business , function (biology) , principal (computer security) , new product development , product mix , marketing mix modeling , industrial organization , economics , computer science , return on marketing investment , engineering , manufacturing engineering , marketing effectiveness , mathematics , political science , philosophy , geometry , epistemology , evolutionary biology , politics , law , biology , operating system
The purpose of this paper is to forge a link between optimal levels of the three principal marketing mix instruments—price, promotion and product quality—and the development expenditures devoted to the quality improvement of a firm's existing product. Using the latest operational marketing mix model which prescribes quantitatively what the optimal quality of a brand should be, a simple function relating this optimal quality to desirable development outlays is suggested and some of its implications are explored.