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Abstract

News — Existing research on optimising marketing resource allocation focuses mainly on the customer rather than the retailer level. However, retailers play an important role in marketing channels, and optimising retailer-level marketing resource allocation poses important decision-making challenges. In this study, we proposed a retailer-level offline marketing resource-optimising allocation model based on retailer segmentation. The model consists of two stages. In the first stage, we built a retailer segmentation index system and introduced a bi-clustering algorithm to segment retailers that can cluster samples and features simultaneously. In the second stage, we proposed a new measurement for the rate of return on the utility of marketing resources and then leveraged the mean–variance model to find optimal marketing resource allocation plans. An empirical study of a famous Chinese alcoholic beverage company demonstrated that the proposed model outperformed four baseline models.