Analysis of marketing mix interaction effects and interdependencies: a normative approach

This paper gives a general, theoretical treatment of the interdependency between price and communication expenditures. We analyze how interaction effects (for example the impact of communication on the sales sensitivity to price changes) affect the optimal marketing mix structure (for example the impact of communication expenditures on the optimal price). Moreover, necessary and sufficient conditions are derived for the optimal price to be independent of the communication expenditures and|or for the optimal communication expenditures to be independent of price. © 1998 John Wiley & Sons, Ltd.