Linear Programming In

Linear Programming In

Marketing Application

Marketing Application

BY SAHER YASIN

ContentsContents Linear ProgrammingLinear Programming DefinitionDefinition RequirementsRequirements Applications Of Linear ProgrammingApplications Of Linear Programming Application In MarketingApplication In Marketing Linear Programming Used In Industry For Linear Programming Used In Industry For

Solving ProblemsSolving Problems ConclusionConclusion

Introduction to linear Introduction to linear programmingprogramming

The word ‘’LINEAR’’ means the relationship The word ‘’LINEAR’’ means the relationship which can be represented by straight line.which can be represented by straight line.

Linear Programming is a way to handle certain Linear Programming is a way to handle certain types of optimization problem. types of optimization problem.

Linear Programming is a mathematical method Linear Programming is a mathematical method for determining a way to achieve the best for determining a way to achieve the best outcome. outcome.

What is linear programming?What is linear programming?

A Mathematical A Mathematical Technique used to Technique used to obtain an optimal obtain an optimal solution of resources solution of resources allocation problems, allocation problems, such as Product such as Product Planning. Planning.

Application Of linear programmingApplication Of linear programming

BusinessBusiness IndustrialIndustrial MilitaryMilitary EconomicEconomic Marketing DistributionMarketing Distribution

Application In MarketingApplication In Marketing

Marketing:Marketing: The term ‘’Marketing’’ The term ‘’Marketing’’

is derived from the is derived from the word ‘’market’’, which word ‘’market’’, which refers to a group of refers to a group of sellers and buyers sellers and buyers that co-operate to that co-operate to exchange goods and exchange goods and services.services.

Continued….Continued….

One application of linear One application of linear

programming in marketing programming in marketing is media selection.is media selection.

LP can be used to help LP can be used to help marketing managers marketing managers allocate a fixed budget to allocate a fixed budget to various advertizing media.various advertizing media.

Continued….Continued….

The objective is to maximize The objective is to maximize

the reach, frequency and the reach, frequency and quality of exposure.quality of exposure.

Restrictions on the Restrictions on the allowable allocation usually allowable allocation usually arise during consideration arise during consideration of company policy, of company policy, requirements, contract and requirements, contract and media availabilitymedia availability

Types Of ProblemsTypes Of Problems

Product-mix.Product-mix. Investment planning.Investment planning. Blending strategy formulations.Blending strategy formulations. Marketing& Distribution management.Marketing& Distribution management.

Product MixProduct Mix

Investment PlanningInvestment Planning

ZAIN CHAUDHRY

ZAIN CHAUDHRY

Blending Strategy FormulationsBlending Strategy Formulations

Marketing & Distribution Marketing & Distribution ManagementManagement

RequirementsRequirements

There must be well There must be well defined objective defined objective function.function.

There must be a There must be a constraint on the amount.constraint on the amount.

There must be There must be alternative course of alternative course of action. action.

The decision variables The decision variables should be interrelated should be interrelated and non negative. and non negative.

The resource must be The resource must be limited in supply. limited in supply.

AHMED RAZA BHATTI

AHMED RAZA BHATTI

Linear Programming Is A Method Of Linear Programming Is A Method Of Planning And OperationPlanning And Operation

Linear Programming is an optimization Linear Programming is an optimization technique, where the underlying .technique, where the underlying .

Objective is either to maximize the profits or to Objective is either to maximize the profits or to minim is the Cost. minim is the Cost.

It deals with the problem of allocation of finite It deals with the problem of allocation of finite limited resources amongst .limited resources amongst .

Different competing activities in the most optimal Different competing activities in the most optimal manner. manner.

It generates solutions based on the feature and It generates solutions based on the feature and characteristics of the actual problem or situation. characteristics of the actual problem or situation. Hence the scope of linear programming is very Hence the scope of linear programming is very

wide as it.wide as it.

Continued….Continued….

Finds application in such diverse fields as Finds application in such diverse fields as marketing, production, finance &personnel etc.marketing, production, finance &personnel etc.

Linear Programming has be-en highly Linear Programming has be-en highly successful.successful.

Even though Linear Programming has wide & Even though Linear Programming has wide & diverse’ applications, yet all LP. diverse’ applications, yet all LP.

LP Application Used In Industry For LP Application Used In Industry For Solving ProblemSolving Problem

Scientific Approach to Problem Solving.Scientific Approach to Problem Solving. Evaluation of all possible alternatives.Evaluation of all possible alternatives.

Helps in re-evaluation.Helps in re-evaluation. Quality of decision.Quality of decision. Focus on grey area.Focus on grey area.

Flexibility.Flexibility.

HIRA NISAR

HIRA NISAR

Continued….Continued…. Maximum Optimal Utilization Of Factors of Maximum Optimal Utilization Of Factors of

Production.Production. Production Planning.Production Planning.

Marketing Mix.Marketing Mix. Product Distribution.Product Distribution.

Personal Assignment.Personal Assignment. Trim Loss Problems.Trim Loss Problems. Product Distribution.Product Distribution. Process Industries.Process Industries.

LP Marketing Use in LPG CompanyLP Marketing Use in LPG Company