Estimation of optimal advertising expenditure based on customer value

This paper mainly talks about optimal advertising expenditure based on customer value. Building on earlier work, this thesis develops a customer value model to analyze the relationship between advertisement and customer value. The relationship illustrates that advertisement promotes selling through enhancing customer value and improving the transfer of customer to upper customer value group. This paper establishes the quantitative relationships between advertising expenditure and the rates of each customer value group, sale and market share according to transfer model of customer value. At last, this paper establishes the predicted model of multi-objective advertising expenditure by the method of goal programming. The model considers many-sided requirements of the company at the same time and it can be changed smartly according to the concrete requirements of company, so it is adaptive and practical.