Abstract: The goal of this paper is to develop a model to
integrate “pricing" and “advertisement" for short life cycle products,
such as branded fashion clothing products. To achieve this goal, we
apply the concept of “Dynamic Pricing". There are two classes of
advertisements, for the brand (regardless of product) and for a
particular product. Advertising the brand affects the demand and
price of all the products. Thus, the model considers all these products
in relation with each other. We develop two different methods to
integrate both types of advertisement and pricing. The first model is
developed within the framework of dynamic programming. However,
due to the complexity of the model, this method cannot be applicable
for large size problems. Therefore, we develop another method,
called hieratical approach, which is capable of handling the real
world problems. Finally, we show the accuracy of this method, both
theoretically and also by simulation.