Lisovska V., Moshenska A. – Mathematical modeling of enterprise advertising activity function

Abstract

The paper reflects the relevance of enterprise appeals advertising modeling process and famous analytic functions of the distribution reaction in the form of a logistic curve. It models a response of marketing costs which in turn affects the volume of sales. Economic and mathematical simulation of advertising notifications with the rational allocation of funding for each channel, with maximum profit through a gradient descent is also considered. Besides the software for accounting enterprise advertising expenses the article considers common enterprise optimization technologies for simulation the process of enterprise advertising notifications, including a use of SAS Marketing Optimization which predicts the expected response on each client's specific proposal. The key features of the system are also stated. The article states that the advertising department should cooperate with all other departments. A diagram of information sharing is depicted together with a model which shows the advertising activity reaction function which links the optimization parameter with various factors that affect the advertising activity. The article also shows factors that affect the enterprise advertising activity function and highlights the following problem: the average speed of advertising activity function in time is inversely proportional to the potential advertising activity function component when it is at max value of its aspect ratio which assesses the level of enterprise advertising activity.  The mathematical simulation of the enterprise advertising notifications process with the help of analytic alignment of the time series for the enterprise advertising activity function is shown as a logistic curve if the asymptote value is not stated