Benefits Gained by Utilizing Linear Programming (LP) for Marketing Research
Dantzig (2016) states that the biggest benefit that can be possibly gained through the utilization of linear programming (LP) in marketing research is that a solution based on the actual problem can be quickly developed. Marketing research aims at effectively coming up with the solutions to the problem faced in the shortest time possible hence evidencing the importance of LP. Linear programming is defined as the strategy of planning the activities of an enterprise to achieve optimal results through the stating of the operations strategy to embrace (Dantzig, 2016). As such, it utilizes mathematical formulae and models to define the problem faced by the business and achieve a goal that was desired by the different feasible alternatives discussed in the business.
One of the benefits of linear programming is that it helps in the determining of ideal timing for interviews, which is one of the objectives of marketing research (Babin & Zikmund, 2015). The LP model is utilized in the determining of the scheduling of interviews in a way that will ensure an ideal representation of the candidates qualified for the opportunity advertised in the interview slots. As such, it ensures maximal response rate of the possible employees for the enterprise and appropriate representation of the candidates regarding demographics, household characteristics, and use of different aspects that are of the essence in the marketing research. Marketing research requires the allocation of funds in a way that ensures minimal input to achieve maximal output (Babin & Zikmund, 2015). LP is also used in evaluating the best plan to use to achieve maximum profits. An instance of this is shown in the figure below which is developed through LP in coming up with the optimal time and raw material to be used in making the best output. The formula y=mx+c is used.
Figure 1: Graphical Solution of an LP Problem in two Variables (Source: FICO, 2017).
Linear programming is beneficial in marketing research in that it ensures the determining of the appropriate way of allocating the funds for the commercialization research so as to achieve maximal results (Pardalos et al., 2013). Predicting of the response rates of different advertisements for the business is vital in marketing research. It is vital in determining the funds to be allocated for the adverting. Linear programming can be used to enhance the response of the people to the product promotion. Linear programming evaluates different variables to come up with an ideal solution (Dantzig, 2016). Therefore, the marketers can use variables, which include time slot, the show attributes, and competition advantage effects so as to decide when to start the marketing programs on different channels used for advertising such as newspapers, magazines, radio or television.
If the people prefer listening to the radio or watching television at specific times, linear programming can be used to determine such times hence the adverts will be aired during such specific times so as to achieve maximal views. Pardalos et al. (2013) explain that through the examination of the different preferences of the customers as achieved in the market research, linear programming is of the essence in ensuring the choosing of an optimal design of the products that can satisfy the different needs and preferences of the customers.
Use LP in Marketing and Consumer Research
Linear programming has been used in the marketing field in the selection of the most efficient media mix to embrace (Dantzig, 2016). It is used in the approximation of a budget that can be used in marketing through different media such as ads on newspapers and magazines, television and radio commercials among others. In market research, LP is vital in determining the maximal audience exposure. Although the objective of linear programming in marketing research is to come up with the proper media mix, some restrictions might limit the media availability in marketing (Pardalos et al., 2013). An example of LP as used in the consumer and market research follows.
Gambling Palace is a Casino in the United States that uses different advertising media to market its services. It has a budget of $6,000 per week to be used in local advertising in promotional media which include newspaper ads, TV ad, and two different radio ads. The objective of this company is to achieve the maximum number of audience in the various media used. The table below based on LP shows the possible number of gamblers to be reached through the ads, the number of ads likely to be bought per week and the prices of the ads placed.
Table 1: Number of Gamblers
| Marketing Media | Number of People reached by the ad | Price Of the ad | Maximum number of ads per week |
| 1 minute TV ad | 4,000 | $700 | 10 |
| Half page daily newspaper ad | 9,500 | $800 | 4 |
| 2 minutes morning Radio ad) | 3,500 | $200 | 22 |
| 1-minute afternoon Radio ad | 2,300 | $340 | 18 |
The Gambling Palace arrangement requires at least four radio ads each week with less than $1,600. This evidences the application of linear programming in marketing research and consumer research.
References
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Boston: Cengage Learning.
Dantzig, G. (2016). Linear programming and extensions. New Jersey: Princeton university press.
FICO. (2017). Mathematical Programming. Retrieved from http://www.fico.com/en/predictive-analytics/analytic-technologies/mathematical-programming
Pardalos, P. M., Siskos, Y., & Zopounidis, C. (Eds.). (2013). Advances in multicriteria analysis (Vol. 5). Berlin: Springer Science & Business Media.
