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Murali K. Mantrala and Sönke Albers

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Marketing optimization methods

Methods and Applications in Marketing Management, Public Policy, and Litigation Support

Murali K. Mantrala and Vamsi K. Kanuri

We survey the methods, advances, and insights from research and applications pertaining to Marketing Optimization Methods over the past 70 years. Specifically, we classify extant marketing optimization problems into two key typologies based on: (1) the number (“single” or “multiple”) of “sales entities” and marketing input variables involved in the problem, and (2) the nature of the objective function (e.g., static or dynamic). We discuss the modeling and solving of optimization problems that fall under these typologies. In each example, we summarize the problem; the choice variables; the constraints; the sales response model; the objective function; the solution approach/technique; and optimization insights/principles from the solution.

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Murali K. Mantrala and Omid Kamran-Disfani

This chapter focuses on two important contemporary concepts and practices within the realm of manufacturers–retailer relationships and strategic interactions: Category Management (CM) and Category Captainship (CC). Category management is a managerial philosophy and organizational concept in retailing that shapes a retailer’s tactical and store-level decisions. At the heart of this management and organizational practice is understanding and treating product categories as strategic business units. This chapter discusses (evolutions in) the CM process, and how CM impacts the main actors of consumer packaged goods marketing channels – manufacturers, retailers, and consumers. It reviews the advantages and drawbacks of the phenomenon of category captainship within the CM movement, as reflected by its predicted and observed impacts on the retailer, the category captain, consumers, and competing manufacturers using the common retailer. Finally, it considers the outstanding managerial questions in today’s retailing environment and outlines related avenues for future research and changes in practice.