The planning of promotions and other marketing events frequently requires manufacturers to make decisions about the optimal
duration of these activities. Yet manufacturers often lack the support tools for decision making. We assume that customer
decisions at the aggregated level follow a state-dependent Markov process. On the basis of the expected economic return associated
with dynamic response to stimuli, we determine the ideal length of marketing events using dynamic programming optimization
and apply the model to a complex promotion event. Results suggest that this methodology could help managers in the publishing
industry to plan the optimal duration of promotion events.
Keywords optimal duration of promotion events - Markovian process - dynamic programming