Rational determination of the marketing expenditure

Abstract

A mathematical theory is developed for the marketing expenditure, starting from a differential equation, in which the decrease of the marketing elasticity with increasing marketing expenditure is expressed. The integration yield s-shaped curves, and introduces a constant c, the marketing resistivity, the numerical value of which is to be determined empirically. This result is perfectly suited to account for the empirical features of marketing, where a characteristic difference exists between various products (cars: low marketing resistivity, cosmetics: high marketing resistivity).