Creating Optimal Marketing Budget Allocation: With and Without Data

Koen Pauwels, Northeastern University

Managers often express unease both with making marketing spending decisions with quantitative data and rigorous analysis – and without them. In this Marketing Science Intensive, Distinguished Professor Koen Pauwels presents the basic principles, applications, and caveats for "optimal" marketing budget and spending allocation rules, including

  • How to intuitively apply a key formula even in the absence of data.
  • How and where quantitative data and analysis adds to managerial intuition.

He offers examples of companies planning whether to increase or decrease spending in the face of a recession, and with CEO demands to either cut the marketing budget or to right-size and reallocate it to meet aggressive growth targets.

Koen Pauwels is Distinguished Professor of Marketing at Northeastern University, and co-director of its Digital, Analytics,Technology and Automation Initiative. He is the author of It’s Not the Size of the Data – It’s How You Use It: Smarter Marketing with Analytics and Dashboards.



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