Abstract: Advertising decision problem has been a hotspot concerned by marketing managers and scholars for a long time. More and more enterprises are facing multi-market with the development of society and economy and it becomes a more important problem for enterprises that how to allocate advertising budget to get the best advertising effect in condition of multi-market and fixed total advertising budget. Vidale-Wolfe model is selected as the advertising response model, based on which the decision model for multi-market advertising budget allocation is proposed. As some marketing strategy requires special sales rate demands in some markets. The proposed model consists of two parts: the latter cares about how to keep certain sales rate, while the former does not. The optimization model is constructed. The method to get arguments value and how to solve the model are discussed. An example is given at last.

Key words: multi-market, advertising budget allocation, decision model, Vidale-Wolfe model, optimal advertising