Dynamic Models for Sales Promotion Policies

This paper presents several models for decisions on budget and operational details (price-off and duration) of a sales promotion for consuLmer goods industries and retail sector. The solutions to the one-period problem are generalized using the dynamic programming methods to the more common case of a multi-period-situation. Several special cases of the general dynamic programming model are discussed along with numerical examples. Finally, the ways of utilizing historical data for an ongoing firm for estimating the parameters of the models are presented.