Technical Note—The Generalized Sethi Advertising Model

Abstract

New Flexible Advertising Model Unveiled: Enhancing Advertising Strategies Researchers have generalized the classical Sethi advertising model (1983) to provide a flexible yet tractable approach to optimizing advertising strategies. Unlike traditional methods, the generalized Sethi advertising model is designed to adapt to different market conditions in various media and markets, offering advertisers greater flexibility. By assuming a constant-returns-to-scale relationship between advertising expenditure and untapped market potential, the generalized Sethi advertising model provides advertisers with more options without sacrificing tractability. The research team has made important breakthroughs by developing practical formulas for determining the best advertising strategies for both individual companies and groups of companies. They have also conducted analyses to better understand how different factors influence these strategies. The generalized Sethi advertising model opens up new opportunities for advertisers to fine-tune their campaigns and reach more customers. This research marks a significant step forward in advertising optimization, giving businesses a valuable tool to achieve better results and make informed decisions in their advertising efforts.