Optimisation model of a company's advertising budget
The development of an optimisation model of a companys advertising budget is presented in the article. This model maximises income from all client segments. Optimisation methods are used in the model. These methods solve the problem of effective distribution of a companys expenses. The base of the model is the dependence of the client bases growth rate and expenses for marketing effort made by the company for retention and attraction of customers. The concept of a customers life cycle is also applied in the model. Every company can realise the presented model in practice, if it aspires to raise the efficiency of interrelations with customers.