The authors attempt “to develop a model of a vertically integrated, multi-regional firm that treats at least one of its marketing mix variables as a global variable.” They build on a 1954 work by Dorfman and Steiner.
In one scenario, all marketing mix variables are manipulated at the regional level; in a second scenario, one marketing mix variable is manipulated globally. The first scenario produces an n-region version of the Dorfman-Steiner model; in some situations, however, the second, global-regional scenario yields an optimal profit solution. The authors discuss the managerial implications of these situations and suggest future research. They also include a list of references. This paper is intended for an advanced audience familiar with mathematical modeling. It will be of special interest to marketing directors and academic researchers.