a. Contribution per CD unit= $9 - $2.60 = $6.40
b. Break even volume in units and dollars
b.i. Units = $525000 / $6.40 = 82031.25 units
b.ii. Dollars = $525000 / ($9 - $2.60) / $9) = $738396.62
c. Net P
Why must marketing students understand math?
Marketing is an Investment
Takes money to create & produce
Takes money to implement
Business demands a return on investment!
# of Customers
Other ways to measure ROI
The best way to convince your
The Starting Point: 3 Critical Questions
How attractive is the market we serve?
or propose to serve
How attractive is the industry where we would compete?
large isnt always better
Are the right resources (people, capabilities, connections) in place to pur
Foundations for Strategic Mktg Mgmt
What is marketing?
Definition: Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and
Important concepts from text:
DECIDE Decision-making Process
Define the problem
Enumerate decision factors
Consider relevant information
Identify the best alternative
Develop a plan for implementing the best alternative
Evaluate the decision & decision pr
List of action options that should be considered to solve the problem just defined
All options should be supported by data/info from case in book; dont just come
up with some solution that has no background info
Considers all re
Analysis Underlying Marketing Strategy Formulation: The 5 Cs
What needs do we seek to satisfy?
What special competencies do we possess to meet those needs?
Who competes with us in meeting those needs?
International Marketing Opportunities
Trend towards a more integrated, interdependent world economy
Trend away from national economies isolated through barriers
Made possible by advances in