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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
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This sample marketing plan for a hypothetical company
illustrates how the marketing plan-
ning process described in Chapter 2 might be implemented. If
you are asked to create a mar-
keting plan, this model may be a helpful guide, along with the
concepts in Chapter 2 .
Star Software Inc. Marketing Plan
I. EXECUTIVE SUMMARY
Star Software Inc. is a small, family-owned corporation in
the first year of a transition from
first-generation to second-generation leadership. Star Software
sells custom-made calendar
programs and related items to about 400 businesses, which
use the software mainly for promo-
tion. As Star’s business is highly seasonal, its 18
employees face scheduling challenges, with
greatest demand during October, November, and December. In
other months, the equipment
and staff are sometimes idle. A major challenge facing Star
Software is how to increase profits
and make better use of its resources during the off-season.
An evaluation of the company’s internal strengths and
weaknesses and external oppor-
tunities and threats served as the foundation for this strategic
analysis and marketing plan.
The plan focuses on the company’s growth strategy, suggesting
ways it can build on existing
customer relationships, and on the development of new products
and/or services targeted to
specific customer niches. Since Star Software markets a product
used primarily as a promo-
tional tool by its clients, it is currently considered a business -
to-business marketer.
II. ENVIRONMENTAL ANALYSIS
Founded as a commercial printing company, Star Software
Inc. has evolved into a marketer of
high-quality, custom-made calendar software and related
business-to-business specialty items.
In the mid-1960s, Bob McLemore purchased the company and,
through his full-time commit-
ment, turned it into a very successful family-run operation. In
the near future, McLemore’s
37 -year-old son, Jonathan, will take over as Star
Software’s president and allow the elder
McLemore to scale back his involvement.
A. The Marketing Environment
1. Competitive forces. The competition in the specialty
advertising industry is very
strong on a local and regional basis but somewhat weak
nationally. Sales figures for
the industry as a whole are difficult to obtain since very little
business is conducted on
a national scale.
The competition within the calendar industry is strong in the
paper segment and weak
in the software-based segment. Currently, paper calendars hold
a dominant market share
of approximately 65 percent; however, the software-based
segment is growing rapidly.
The 35 percent market share held by software-based
calendars is divided among many
Sample Marketing Plan
The Executive
Summary, one of the most
frequently read components of
a marketing plan, is a synopsis
of the marketing plan. Although
it does not provide detailed
information, it does present an
overview of the plan so readers
can identify key issues pertain-
ing to their roles in the planning
and implementation processes.
Although this is the first section
in a marketing plan, it is usually
written last.
11
The Environmental
Analysis presents information
regarding the organization’s
current situation with respect to
the marketing environment, the
current target market(s), and the
firm’s current marketing objec-
tives and performance.
2
2
This section of the envi-
ronmental analysis considers
relevant external environmental
forces, such as competitive,
economic, political, legal and
regulatory, technological, and
sociocultural forces.
3
3
© 2015 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
different firms. Star Software, which holds 30 percent of
the software-based calendar
market, is the only company that markets a software-based
calendar on a national basis.
As software-based calendars become more popular, additional
competition is expected to
enter the market.
2. Economic forces. Nationwide, many companies have reduced
their overall promotion
budgets as they face the need to cut expenses. However, most of
these reductions have
occurred in the budgets for mass-media advertising (television,
magazines, and newspa-
pers). While overall promotion budgets are shrinking, many
companies are diverting a
larger percentage of their budgets to sales promotion and
specialty advertising. This trend
is expected to continue as a weak, slow-growth economy forces
most companies to focus
more on the “value” they receive from their promotion dollars.
Specialty advertising, such
as can be done with a software-based calendar, provides this
value.
3. Political forces. There are no expected political influences or
events that could affect the
operations of Star Software.
4. Legal and regulatory forces. In recent years, more attention
has been paid to “junk mail.”
A large percentage of specialty advertising products are
distributed by mail, and some
of these products are considered “junk.” Although this label is
attached to the type of
products Star Software makes, the problem of junk mail falls on
Star’s clients and not
on the company itself. While legislation may be introduced to
curb the tide of adver-
tising delivered through the mail, the fact that more companies
are diverting their pro-
motion dollars to specialty advertising indicates that most do
not fear the potential for
increased legislation.
5. Technological forces. A major technological trend involves
the growing popularity of tab-
let computers. Tablet computers, such as the Apple iPad and
Samsung Galaxy Tab, provide
consumers with increased mobility and application services.
Tablet computers have begun
taking market share away from desktop, laptop, and netbook
computers. As this trend
continues, current software-based calendar products will have to
be adapted to match the
new technology.
6. Sociocultural forces. In today’s society, consumers have
less time for work or leisure.
The hallmarks of today’s successful products are convenience
and ease of use. In short,
if the product does not save time and is not easy to use,
consumers will simply ignore
it. Software-based calendars fit this consumer need quite well.
A software-based calen-
dar also fits in with other societal trends: a move away from
paper and hard copies, the
need to automate repetitive tasks, and the growing dependence
on information technology,
for example.
B. Target Market(s)
By focusing on a commitment to service and quality, Star
Software has effectively imple-
mented a niche differentiation strategy in a somewhat diverse
marketplace. Its ability to dif-
ferentiate its product has contributed to superior annual returns.
Its target market consists
of manufacturers or manufacturing divisions of large
corporations that move their products
through dealers, distributors, or brokers. Its most profitable
product is a software program for
a PC-based calendar, which can be tailored to meet client needs
by means of artwork, logos,
and text. Clients use this calendar software as a promotional
tool, providing a disk to their
customers as an advertising premium. The calendar software is
not produced for resale.
The calendar software began as an ancillary product to Star’s
commercial printing
business. However, due to the proliferation of new computer
technology, the computer
calendar soon became more profitable for Star than its wall and
desktop paper calendars.
This led to the sale of the commercial printing plant and
equipment to employees. Star
Software has maintained a long-term relationship with these
former employees, who have
added capabilities to reproduce computer disks and whose
company serves as Star’s pri-
mary supplier of finished goods. Star’s staff focuses on further
development and marketing
of the software.
B-2 Online Appendix B | Sample Marketing Plan
The analysis of cur-
rent target markets assesses
demographic, geographic,
psychographic, and product
usage characteristics of the
target markets. It also assesses
the current needs of each of the
firm’s target markets and antici-
pated changes in those needs,
and determines how well the
organization’s current products
are meeting those needs.
4 4
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
C. Current Marketing Objectives and
Performance
Star Software’s sales representatives call on potential clients
and, using a template demon-
stration disk, help them create a calendar concept. Once the sale
has been finalized, Star
completes the concept, including design, copywriting, and
customization of the demon-
stration disk. Specifications are then sent to the supplier,
located about 1 , 000 miles away,
where the disks are produced. Perhaps what most differentiates
Star from its competitors
is its high level of service. Disks can be shipped to any location
the buyer specifies. Since
product development and customization of this type can require
significant amounts of
time and effort, particularly during the product’s first year, Star
deliberately pursues a strat-
egy of steady, managed growth. Star Software markets its
products on a company-specific
basis. It has an annual reorder rate of approximately 90
percent and an average customer-
reorder relationship of about eight years. The first year in
dealing with a new customer
is the most stressful and time-consuming for Star’s salespeople
and product developers.
Subsequent years are faster and significantly more profitable. A
company must set mar-
keting objectives, measure performance against those
objectives, and then take corrective
action if needed.
The company is currently debt free except for the mortgage on
its facility. However, about
80 percent of its accounts receivable are billed during the
last three months of the calendar
year. Seasonal account billings, along with the added travel of
Star’s sales staff during the
peak season, pose a special challenge to the company. The need
for cash to fund operations
in the meantime requires the company to borrow significant
amounts of money to cover the
period until customer billing occurs. Star Software’s marketing
objectives include increases
in both revenues and profits of approximately 10 percent
over the previous year. Revenues
should exceed $ 4 million, and profits are expected to reach
$ 1.3 million.
III. SWOT ANALYSIS
A. Strengths
1. Star Software’s product differentiation strategy is the
result of a strong market orientation,
commitment to high quality, and customization of products and
support services.
2. There is little turnover among employees, who are well
compensated and liked by custom-
ers. The relatively small staff size promotes camaraderie with
coworkers and clients, and
fosters communication and quick response to clients’ needs.
3. A long-term relationship with the primary supplier has
resulted in shared knowledge of the
product’s requirements, adherence to quality standards, and a
common vision throughout
the development and production process.
4. The high percentage of reorder business suggests a satisfied
customer base, as well as
positive word-of-mouth communication, which generates some
30 percent of new busi-
ness each year.
B. Weaknesses
1. The highly centralized management hierarchy (the
McLemores) and the lack of manage-
rial backup may impede creativity and growth. Too few people
hold too much knowledge.
2. Despite the successful long-term relationship with the
supplier, single sourcing could
make Star Software vulnerable in the event of a natural disaster,
strike, or dissolution of
the current supplier. Contingency plans for suppliers should be
considered.
3. The seasonal nature of the product line creates bottlenecks in
productivity and cash flow,
places excessive stress on personnel, and strains the facilities.
B-3Sample Marketing Plan | Online Appendix B
Weaknesses are limita-
tions a firm has in developing
or implementing a marketing
strategy.
6
6
Strengths are competi-
tive advantages or core compe-
tencies that give the organization
an advantage in meeting the
needs of its customers.
5
5
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
4. Both the product line and the client base lack diversification.
Dependence on current reor-
der rates could breed complacency, invite competition, or create
a false sense of customer
satisfaction. The development of a product that would make the
software calendar obso-
lete would probably put Star out of business.
5. While the small size of the staff fosters camaraderie, i t also
impedes growth and new-
business development.
6. Star Software is reactive rather than assertive in its
marketing efforts because of its heavy
reliance on positive word-of-mouth communication for
obtaining new business.
7. Star’s current facilities are crowded. There is little room for
additional employees or new
equipment.
C. Opportunities
1. Advertising expenditures in the United States exceed $
132 billion annually. More than
$ 25 billion of this is spent on direct-mail advertising and
another $ 20 billion on specialty
advertising. Star Software’s potential for growth is significant
in this market.
2. Technological advances have not only freed up time for
Americans and brought greater
efficiency but have also increased the amount of stress in their
fast-paced lives. Laptops,
tablet computers, and mobile technology have become
commonplace, and personal infor-
mation managers have gained popularity.
3. As U.S. companies look for ways to develop customer
relationships rather than just close
sales, reminders of this relationship could come in the form of
acceptable premiums or
gifts that are useful to the customer.
4. Computer-based calendars are easily distributed nationally
and globally. The globalization
of business creates an opportunity to establish new client
relationships in foreign markets.
D. Threats
1. Reengineering, right-sizing, and outsourcing trends in
management may alter tradi-
tional channel relationships with brokers, dealers, and
distributors, or eliminate them
altogether.
2. Calendars are basically a generic product. The technology,
knowledge, and equipment
required to produce such an item, even a computer-based one,
are minimal. The possible
entry of new competitors is a significant threat.
3. Theft of trade secrets and software piracy through
unauthorized copying are difficult to
control.
4. Specialty advertising through promotional items relies on
gadgetry and ideas that are new
and different. As a result, product life cycles may be quite
short.
5. Single-sourcing can be detrimental or even fatal to a
company if the buyer–supplier rela-
tionship is damaged or if the supplying company has financial
difficulty.
6. Competition from traditional paper calendars and other
promotional items is strong.
E. Matching Strengths to Opportunities/
Converting Weaknesses and Threats
1. The acceptance of technological advances and the desire
to control time create a potential
need for a computer-based calendar.
2. Star Software has more opportunity for business growth
during its peak season than it can
presently handle because of resource (human and capital)
constraints.
3. Star Software must modify its management hierarchy,
empowering its employees through
a more decentralized marketing organization.
4. Star Software should discuss future growth strategies with its
supplier and develop contin-
gency plans to deal with unforeseen events. Possible satellite
facilities in other geographic
locations should be explored.
B-4 Online Appendix B | Sample Marketing Plan
Opportunities are favor-
able conditions in the environ-
ment that could yield rewards
for an organization if acted on
properly.
7
7
Threats are conditions
or barriers that may prevent the
organization from reaching its
objectives.
8
8
During the development
of a marketing plan, market-
ers attempt to match internal
strengths to external opportuni-
ties. In addition, they try to
convert internal weaknesses into
strengths and external threats
into opportunities.
9 9
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
5. Star Software should consider diversifying its product line to
satisfy new market niches
and develop nonseasonal products.
6. Star Software should consider surveying its current customers
and its customers’ clients to
gain a better understanding of their changing needs and desires.
IV. MARKETING OBJECTIVES
Star Software Inc. is in the business of helping other
companies market their products and/
or services. Besides formulati ng a market-oriented and
customer-focused mission statement,
Star Software should establish an objective to achieve
cumulative growth in net profit of at
least 50 percent over the next five years. At least half of
this 50 percent growth should come
from new, nonmanufacturing customers and from products that
are nonseasonal or that are
generally delivered in the off-peak period of the calendar cycle.
To accomplish its marketing objectives, Star Software should
develop benchmarks to mea-
sure progress. Regular reviews of these objectives will provide
feedback and possible correc-
tive actions on a timely basis. The major marketing objective is
to gain a better understanding
of the needs and satisfaction of current customers. Because Star
Software is benefiting from a
90 percent reorder rate, it must be satisfying its current
customers. Star could use the knowl-
edge of its successes with current clients to market to new
customers. To capitalize on its
success with current clients, the company should establish
benchmarks to learn how it can
improve the products it now offers through knowledge of
clients’ needs and specific opportu-
nities for new-product offerings. These benchmarks should be
determined through marketing
research and Star’s marketing information system.
Another objective should be to analyze the billing cycle Star
now uses to determine if there
are ways to bill accounts receivable in a more evenly distributed
manner throughout the year.
Alternatively, repeat customers might be willing to place orders
at off-peak cycles in return for
discounts or added customer services.
Star Software should also create new products that can use its
current equipment, technol-
ogy, and knowledge base. It should conduct simple research and
analyses of similar products
or product lines with an eye toward developing specialty
advertising products that are software
based but not necessarily calendar related.
V. MARKETING STRATEGIES
A. Target Market(s)
Target Market 1: Large manufacturers or stand-alone
manufacturing divisions of large cor-
porations with extensive broker, dealer, or distributor networks
Example: An agricultural chemical producer, like Dow
Chemical, distributes its products
to numerous rural “feed and seed” dealers. Customizing
calendars with Chicago Board
of Trade futures or USDA agricultural report dates would be
beneficial to these potential
clients.
Target Market 2: Nonmanufacturing, nonindustrial segments
of the business-to-business
market with extensive customer networks, such as banks,
medical services, or financial
planners
Example: Various sporting goods manufacturers distribute
to specialty shop dealers.
Calendars could be customized to the particular sport, such as
golf (with PGA, Virginia
Slims, or other tour dates), running (with various national
marathon dates), or bowling
(with national tour dates).
B-5Sample Marketing Plan | Online Appendix B
The development of
marketing objectives is based on
environmental analysis, SWOT
analysis, the firm’s overall
corporate objectives, and the
organization’s resources. For
each objective, this section
should answer the question,
“What is the specific and mea-
surable outcome and time frame
for completing this objective?”
10
10
The marketing plan clearly
specifies and describes the
target market(s) toward which
the organization will aim its
marketing efforts. The difference
between this section and the
earlier section covering target
markets is that the earlier sec-
tion deals with present target
markets, whereas this section
looks at future target markets.
11
11
© 2015 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Target Market 3: Direct consumer markets for brands with
successful licensing arrange-
ments for consumer products, like Coca-Cola
Example: Products with major brand recognition and fan
club membership, such as
Harley-Davidson motorcycles or the Bloomington Gold Corvette
Association, could pro-
vide additional markets for customized computer calendars.
Environmental or political
groups represent a nonprofit market. Brands with licensing
agreements for consumer
products could provide a market for consumer computer
calendars in addition to the spe-
cialty advertising product, which would be marketed to
manufacturers/dealers.
Target Market 4: Industry associations that regularly hold or
sponsor trade shows, meetings,
conferences, or conventions
Example: National associations, such as the National
Dairy Association or the American
Marketing Association, frequently host meetings or annual
conventions. Customized cal-
endars could be developed for any of these groups.
B. Marketing Mix
1. Products. Star Software markets not only calendar
software but also the service of spe-
cialty advertising to its clients. Star’s intangible attributes are
its ability to meet or exceed
customer expectations consistently, its speed in responding to
customers’ demands, and
its anticipation of new-customer needs. Intangible attributes are
difficult for competitors
to copy, thereby giving Star Software a competitive advantage.
2. Price. Star Software provides a high-quality specialty
advertising product customized to
its clients’ needs. The value of this product and service is
reflected in its premium price.
Star should be sensitive to the price elasticity of its product and
overall consumer demand.
3. Distribution. Star Software uses direct marketing. Since its
product is compact, light-
weight, and nonperishable, it can be shipped from a central
location direct to the client via
UPS, FedEx, or the U.S. Postal Service. The fact that Star can
ship to multiple locations
for each customer is an asset in selling its products.
4. Promotion. Because 90 percent of Star’s customers
reorder each year, the bulk of promo-
tional expenditures should focus on new-product offerings
through direct-mail advertising
and trade journals or specialty publications. Any remaining
promotional dollars could be
directed to personal selling (in the form of sales performance
bonuses) of current and new
products.
VI. MARKETING IMPLEMENTATION
A. Marketing Organization
Because Star’s current and future products require extensive
customization to match clients’
needs, it is necessary to organize the marketing function by
customer groups. This will allow
Star to focus its marketing efforts exclusively on the needs and
specifications of each tar-
get customer segment. Star’s marketing efforts will be
organized around the following cus-
tomer groups: (1) manufacturing group; (2)
nonmanufacturing, business-to-business group;
(3) consumer product licensing group; and (4) industry
associations group. Each group will
be headed by a sales manager who will report to the marketing
director (these positions must
be created). Each group will be responsible for marketing Star’s
products within that customer
segment. In addition, each group will have full decision-making
authority. This represents a
shift from the current, highly centralized management
hierarchy. Frontline salespeople will be
empowered to make decisions that will better satisfy Star’s
clients.
These changes in marketing organization will enable Star
Software to be more creative
and flexible in meeting customers’ needs. Likewise, these
changes will overcome the current
B-6 Online Appendix B | Sample Marketing Plan
Though the marketing mix
section in this plan is abbrevi-
ated, this component should
provide considerable details
regarding each element of the
marketing mix: product, price,
distribution, and promotion.
12 12
This section of the market-
ing plan details how the firm
will be organized—by functions,
products, regions, or types of
customers—to implement its
marketing strategies. It also
indicates where decision-making
authority will rest within the
marketing unit.
13 13
© 2015 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
lack of diversification in Star’s product lines and client base.
Finally, this new marketing orga-
nization will give Star a better opportunity to monitor the
activities of competitors.
B. Activities, Responsibilities,
and Timetables for Completion
All implementation activities are to begin at the start of the
next fiscal year on April 1. Unless
specified, all activities are the responsibility of Star Software’s
next president, Jonathan
McLemore.
• On April 1, create four sales manager positions and the
position of marketing director.
The marketing director will serve as project leader of a new
business analysis team, to be
composed of nine employees from a variety of positions within
the company.
• By April 15, assign three members of the analysis team to
each of the following projects:
(1) research potential new-product offerings and clients, (2)
analyze the current billing
cycle and billing practices, and (3) design a customer
survey project. The marketing direc-
tor is responsible.
• By June 30, the three project groups will report the results of
their analyses. The full busi-
ness analysis team will review all recommendations.
• By July 31, develop a marketing information system to
monitor client reorder patterns and
customer satisfaction.
• By July 31, implement any changes in billing practices as
recommended by the business
analysis team.
• By July 31, make initial contact with new potential clients for
the current product line.
Each sales manager is responsible.
• By August 31, develop a plan for one new-product offering,
along with an analysis of its
potential customers. The business analysis team is responsible.
• By August 31, finalize a customer satisfaction survey for
current clients. In addition, the
company will contact those customers who did not reorder this
year’s product line to dis-
cuss their concerns. The marketing director is responsible.
• By December, implement the customer satisfaction survey
with a random sample of 20 percent
of current clients who reordered this year’s product line. The
marketing director is responsible.
• By February, implement a new-product offering, advertising to
current customers and to a
sample of potential clients. The business analysis team is
responsible.
• By March, analyze and report the results of all customer
satisfaction surveys and evaluate
the new-product offering. The marketing director is responsible.
• Reestablish the objectives of the business analysis team for
the next fiscal year. The mar-
keting director is responsible.
VII. PERFORMANCE EVALUATION
A. Performance Standards
and Financial Controls
A comparison of the financial expenditures with the pl an
goals will be included in the project
report. The following performance standards and financial
controls are suggested:
• The total budget for the billing analysis, new -product
research, and the customer survey
will be equal to 60 percent of the annual promotional
budget for the …
Section 6.4: Logarithmic Equations and Inequalities, from
College Algebra: Corrected Edition by Carl
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6.4 Logarithmic Equations and Inequalities 459
6.4 Logarithmic Equations and Inequalities
In Section 6.3 we solved equations and inequalities involving
exponential functions using one of
two basic strategies. We now turn our attention to equations and
inequalities involving logarithmic
functions, and not surprisingly, there are two basic strategies to
choose from. For example, suppose
we wish to solve log2(x) = log2(5). Theorem 6.4 tells us that
the only solution to this equation
is x = 5. Now suppose we wish to solve log2(x) = 3. If we want
to use Theorem 6.4, we need to
rewrite 3 as a logarithm base 2. We can use Theorem 6.3 to do
just that: 3 = log2
(
23
)
= log2(8).
Our equation then becomes log2(x) = log2(8) so that x = 8.
However, we could have arrived at the
same answer, in fewer steps, by using Theorem 6.3 to rewrite
the equation log2(x) = 3 as 2
3 = x,
or x = 8. We summarize the two common ways to solve log
equations below.
Steps for Solving an Equation involving Logarithmic Functions
1. Isolate the logarithmic function.
2. (a) If convenient, express both sides as logs with the same
base and equate the arguments
of the log functions.
(b) Otherwise, rewrite the log equation as an exponential
equation.
Example 6.4.1. Solve the following equations. Check your
solutions graphically using a calculator.
1. log117(1 − 3x) = log117
(
x2 − 3
)
2. 2 − ln(x− 3) = 1
3. log6(x + 4) + log6(3 −x) = 1 4. log7(1 − 2x) = 1 − log7(3 −x)
5. log2(x + 3) = log2(6 −x) + 3 6. 1 + 2 log4(x + 1) = 2 log2(x)
Solution
.
1. Since we have the same base on both sides of the equation
log117(1 − 3x) = log117
(
x2 − 3
)
,
we equate what’s inside the logs to get 1 − 3x = x2 − 3. Solving
x2 + 3x − 4 = 0 gives
x = −4 and x = 1. To check these answers using the calculator,
we make use of the change
of base formula and graph f(x) =
ln(1−3x)
ln(117)
and g(x) =
ln(x2−3)
ln(117)
and we see they intersect only
at x = −4. To see what happened to the solution x = 1, we
substitute it into our original
equation to obtain log117(−2) = log117(−2). While these
expressions look identical, neither
is a real number,1 which means x = 1 is not in the domain of the
original equation, and is
not a solution.
2. Our first objective in solving 2−ln(x−3) = 1 is to isolate the
logarithm. We get ln(x−3) = 1,
which, as an exponential equation, is e1 = x − 3. We get our
solution x = e + 3. On the
calculator, we see the graph of f(x) = 2 − ln(x − 3) intersects the
graph of g(x) = 1 at
x = e + 3 ≈ 5.718.
1They do, however, represent the same family of complex
numbers. We stop ourselves at this point and refer the
reader to a good course in Complex Variables.
460 Exponential and Logarithmic Functions
y = f(x) = log117(1 − 3x) and y = f(x) = 2 − ln(x− 3) and
y = g(x) = log117
(
x2 − 3
)
y = g(x) = 1
3. We can start solving log6(x+ 4) + log6(3−x) = 1 by using the
Product Rule for logarithms to
rewrite the equation as log6 [(x + 4)(3 −x)] = 1. Rewriting this
as an exponential equation,
we get 61 = (x + 4)(3 −x). This reduces to x2 + x− 6 = 0, which
gives x = −3 and x = 2.
Graphing y = f(x) =
ln(x+4)
ln(6)
+
ln(3−x)
ln(6)
and y = g(x) = 1, we see they intersect twice, at
x = −3 and x = 2.
y = f(x) = log6(x + 4) + log6(3 −x) and y = g(x) = 1
4. Taking a cue from the previous problem, we begin solving
log7(1 − 2x) = 1 − log7(3 −x) by
first collecting the logarithms on the same side, log7(1−2x) +
log7(3−x) = 1, and then using
the Product Rule to get log7[(1 − 2x)(3 −x)] = 1. Rewriting this
as an exponential equation
gives 71 = (1−2x)(3−x) which gives the quadratic equation
2x2−7x−4 = 0. Solving, we find
x = −1
2
and x = 4. Graphing, we find y = f(x) =
ln(1−2x)
ln(7)
and y = g(x) = 1− ln(3−x)
ln(7)
intersect
only at x = −1
2
. Checking x = 4 in the original equation produces log7(−7) = 1
− log7(−1),
which is a clear domain violation.
5. Starting with log2(x + 3) = log2(6 − x) + 3, we gather the
logarithms to one side and get
log2(x + 3) − log2(6 −x) = 3. We then use the Quotient Rule
and convert to an exponential
equation
log2
(
x + 3
6 −x
)
= 3 ⇐⇒ 23 =
x + 3
6 −x
This reduces to the linear equation 8(6 −x) = x + 3, which gives
us x = 5. When we graph
f(x) =
ln(x+3)
ln(2)
and g(x) =
ln(6−x)
ln(2)
+ 3, we find they intersect at x = 5.
6.4 Logarithmic Equations and Inequalities 461
y = f(x) = log7(1 − 2x) and y = f(x) = log2(x + 3) and
y = g(x) = 1 − log7(3 −x) y = g(x) = log2(6 −x) + 3
6. Starting with 1 + 2 log4(x + 1) = 2 log2(x), we gather the
logs to one side to get the equation
1 = 2 log2(x) − 2 log4(x + 1). Before we can combine the
logarithms, however, we need a
common base. Since 4 is a power of 2, we use change of base to
convert
log4(x + 1) =
log2(x + 1)
log2(4)
=
1
2
log2(x + 1)
Hence, our original equation becomes
1 = 2 log2(x) − 2
(
1
2
log2(x + 1)
)
1 = 2 log2(x) − log2(x + 1)
1 = log2
(
x2
)
− log2(x + 1) Power Rule
1 = log2
(
x2
x + 1
)
Quotient Rule
Rewriting this in exponential form, we get x
2
x+1
= 2 or x2 − 2x− 2 = 0. Using the quadratic
formula, we get x = 1 ±
√
3. Graphing f(x) = 1 +
2 ln(x+1)
ln(4)
and g(x) =
2 ln(x)
ln(2)
, we see the
graphs intersect only at x = 1 +
√
3 ≈ 2.732. The solution x = 1 −
√
3 < 0, which means if
substituted into the original equation, the term 2 log2
(
1 −
√
3
)
is undefined.
y = f(x) = 1 + 2 log4(x + 1) and y = g(x) = 2 log2(x)
462 Exponential and Logarithmic Functions
If nothing else, Example 6.4.1 demonstrates the importance of
checking for extraneous solutions2
when solving equations involving logarithms. Even though we
checked our answers graphically,
extraneous solutions are easy to spot - any supposed solution
which causes a negative number
inside a logarithm needs to be discarded. As with the equations
in Example 6.3.1, much can be
learned from checking all of the answers in Example 6.4.1
analytically. We leave this to the reader
and turn our attention to inequalities involving logarithmic
functions. Since logarithmic functions
are continuous on their domains, we can use sign diagrams.
Example 6.4.2. Solve the following inequalities. Check your
answer graphically using a calculator.
1.
1
ln(x) + 1
≤ 1 2. (log2(x))
2
< 2 log2(x) + 3 3. x log(x + 1) ≥ x

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B 1© 2015 cengage learning. all rights reserved. may not be sc

  • 1. B-1© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © iStockphoto.com/sorendis / © wecand/Getty Images This sample marketing plan for a hypothetical company illustrates how the marketing plan- ning process described in Chapter 2 might be implemented. If you are asked to create a mar- keting plan, this model may be a helpful guide, along with the concepts in Chapter 2 . Star Software Inc. Marketing Plan I. EXECUTIVE SUMMARY Star Software Inc. is a small, family-owned corporation in the first year of a transition from first-generation to second-generation leadership. Star Software sells custom-made calendar programs and related items to about 400 businesses, which use the software mainly for promo- tion. As Star’s business is highly seasonal, its 18 employees face scheduling challenges, with
  • 2. greatest demand during October, November, and December. In other months, the equipment and staff are sometimes idle. A major challenge facing Star Software is how to increase profits and make better use of its resources during the off-season. An evaluation of the company’s internal strengths and weaknesses and external oppor- tunities and threats served as the foundation for this strategic analysis and marketing plan. The plan focuses on the company’s growth strategy, suggesting ways it can build on existing customer relationships, and on the development of new products and/or services targeted to specific customer niches. Since Star Software markets a product used primarily as a promo- tional tool by its clients, it is currently considered a business - to-business marketer. II. ENVIRONMENTAL ANALYSIS Founded as a commercial printing company, Star Software Inc. has evolved into a marketer of high-quality, custom-made calendar software and related business-to-business specialty items. In the mid-1960s, Bob McLemore purchased the company and, through his full-time commit-
  • 3. ment, turned it into a very successful family-run operation. In the near future, McLemore’s 37 -year-old son, Jonathan, will take over as Star Software’s president and allow the elder McLemore to scale back his involvement. A. The Marketing Environment 1. Competitive forces. The competition in the specialty advertising industry is very strong on a local and regional basis but somewhat weak nationally. Sales figures for the industry as a whole are difficult to obtain since very little business is conducted on a national scale. The competition within the calendar industry is strong in the paper segment and weak in the software-based segment. Currently, paper calendars hold a dominant market share of approximately 65 percent; however, the software-based segment is growing rapidly. The 35 percent market share held by software-based calendars is divided among many Sample Marketing Plan The Executive
  • 4. Summary, one of the most frequently read components of a marketing plan, is a synopsis of the marketing plan. Although it does not provide detailed information, it does present an overview of the plan so readers can identify key issues pertain- ing to their roles in the planning and implementation processes. Although this is the first section in a marketing plan, it is usually written last. 11 The Environmental Analysis presents information regarding the organization’s current situation with respect to the marketing environment, the current target market(s), and the firm’s current marketing objec- tives and performance. 2 2 This section of the envi- ronmental analysis considers relevant external environmental forces, such as competitive, economic, political, legal and regulatory, technological, and sociocultural forces.
  • 5. 3 3 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. different firms. Star Software, which holds 30 percent of the software-based calendar market, is the only company that markets a software-based calendar on a national basis. As software-based calendars become more popular, additional competition is expected to enter the market. 2. Economic forces. Nationwide, many companies have reduced their overall promotion budgets as they face the need to cut expenses. However, most of these reductions have occurred in the budgets for mass-media advertising (television, magazines, and newspa- pers). While overall promotion budgets are shrinking, many companies are diverting a larger percentage of their budgets to sales promotion and specialty advertising. This trend
  • 6. is expected to continue as a weak, slow-growth economy forces most companies to focus more on the “value” they receive from their promotion dollars. Specialty advertising, such as can be done with a software-based calendar, provides this value. 3. Political forces. There are no expected political influences or events that could affect the operations of Star Software. 4. Legal and regulatory forces. In recent years, more attention has been paid to “junk mail.” A large percentage of specialty advertising products are distributed by mail, and some of these products are considered “junk.” Although this label is attached to the type of products Star Software makes, the problem of junk mail falls on Star’s clients and not on the company itself. While legislation may be introduced to curb the tide of adver- tising delivered through the mail, the fact that more companies are diverting their pro- motion dollars to specialty advertising indicates that most do not fear the potential for increased legislation. 5. Technological forces. A major technological trend involves
  • 7. the growing popularity of tab- let computers. Tablet computers, such as the Apple iPad and Samsung Galaxy Tab, provide consumers with increased mobility and application services. Tablet computers have begun taking market share away from desktop, laptop, and netbook computers. As this trend continues, current software-based calendar products will have to be adapted to match the new technology. 6. Sociocultural forces. In today’s society, consumers have less time for work or leisure. The hallmarks of today’s successful products are convenience and ease of use. In short, if the product does not save time and is not easy to use, consumers will simply ignore it. Software-based calendars fit this consumer need quite well. A software-based calen- dar also fits in with other societal trends: a move away from paper and hard copies, the need to automate repetitive tasks, and the growing dependence on information technology, for example. B. Target Market(s) By focusing on a commitment to service and quality, Star
  • 8. Software has effectively imple- mented a niche differentiation strategy in a somewhat diverse marketplace. Its ability to dif- ferentiate its product has contributed to superior annual returns. Its target market consists of manufacturers or manufacturing divisions of large corporations that move their products through dealers, distributors, or brokers. Its most profitable product is a software program for a PC-based calendar, which can be tailored to meet client needs by means of artwork, logos, and text. Clients use this calendar software as a promotional tool, providing a disk to their customers as an advertising premium. The calendar software is not produced for resale. The calendar software began as an ancillary product to Star’s commercial printing business. However, due to the proliferation of new computer technology, the computer calendar soon became more profitable for Star than its wall and desktop paper calendars. This led to the sale of the commercial printing plant and equipment to employees. Star Software has maintained a long-term relationship with these
  • 9. former employees, who have added capabilities to reproduce computer disks and whose company serves as Star’s pri- mary supplier of finished goods. Star’s staff focuses on further development and marketing of the software. B-2 Online Appendix B | Sample Marketing Plan The analysis of cur- rent target markets assesses demographic, geographic, psychographic, and product usage characteristics of the target markets. It also assesses the current needs of each of the firm’s target markets and antici- pated changes in those needs, and determines how well the organization’s current products are meeting those needs. 4 4 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. C. Current Marketing Objectives and Performance
  • 10. Star Software’s sales representatives call on potential clients and, using a template demon- stration disk, help them create a calendar concept. Once the sale has been finalized, Star completes the concept, including design, copywriting, and customization of the demon- stration disk. Specifications are then sent to the supplier, located about 1 , 000 miles away, where the disks are produced. Perhaps what most differentiates Star from its competitors is its high level of service. Disks can be shipped to any location the buyer specifies. Since product development and customization of this type can require significant amounts of time and effort, particularly during the product’s first year, Star deliberately pursues a strat- egy of steady, managed growth. Star Software markets its products on a company-specific basis. It has an annual reorder rate of approximately 90 percent and an average customer- reorder relationship of about eight years. The first year in dealing with a new customer is the most stressful and time-consuming for Star’s salespeople and product developers.
  • 11. Subsequent years are faster and significantly more profitable. A company must set mar- keting objectives, measure performance against those objectives, and then take corrective action if needed. The company is currently debt free except for the mortgage on its facility. However, about 80 percent of its accounts receivable are billed during the last three months of the calendar year. Seasonal account billings, along with the added travel of Star’s sales staff during the peak season, pose a special challenge to the company. The need for cash to fund operations in the meantime requires the company to borrow significant amounts of money to cover the period until customer billing occurs. Star Software’s marketing objectives include increases in both revenues and profits of approximately 10 percent over the previous year. Revenues should exceed $ 4 million, and profits are expected to reach $ 1.3 million. III. SWOT ANALYSIS A. Strengths 1. Star Software’s product differentiation strategy is the
  • 12. result of a strong market orientation, commitment to high quality, and customization of products and support services. 2. There is little turnover among employees, who are well compensated and liked by custom- ers. The relatively small staff size promotes camaraderie with coworkers and clients, and fosters communication and quick response to clients’ needs. 3. A long-term relationship with the primary supplier has resulted in shared knowledge of the product’s requirements, adherence to quality standards, and a common vision throughout the development and production process. 4. The high percentage of reorder business suggests a satisfied customer base, as well as positive word-of-mouth communication, which generates some 30 percent of new busi- ness each year. B. Weaknesses 1. The highly centralized management hierarchy (the McLemores) and the lack of manage- rial backup may impede creativity and growth. Too few people hold too much knowledge.
  • 13. 2. Despite the successful long-term relationship with the supplier, single sourcing could make Star Software vulnerable in the event of a natural disaster, strike, or dissolution of the current supplier. Contingency plans for suppliers should be considered. 3. The seasonal nature of the product line creates bottlenecks in productivity and cash flow, places excessive stress on personnel, and strains the facilities. B-3Sample Marketing Plan | Online Appendix B Weaknesses are limita- tions a firm has in developing or implementing a marketing strategy. 6 6 Strengths are competi- tive advantages or core compe- tencies that give the organization an advantage in meeting the needs of its customers. 5 5 © 2015 Cengage Learning. All Rights Reserved. May not be
  • 14. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. Both the product line and the client base lack diversification. Dependence on current reor- der rates could breed complacency, invite competition, or create a false sense of customer satisfaction. The development of a product that would make the software calendar obso- lete would probably put Star out of business. 5. While the small size of the staff fosters camaraderie, i t also impedes growth and new- business development. 6. Star Software is reactive rather than assertive in its marketing efforts because of its heavy reliance on positive word-of-mouth communication for obtaining new business. 7. Star’s current facilities are crowded. There is little room for additional employees or new equipment. C. Opportunities 1. Advertising expenditures in the United States exceed $ 132 billion annually. More than $ 25 billion of this is spent on direct-mail advertising and another $ 20 billion on specialty
  • 15. advertising. Star Software’s potential for growth is significant in this market. 2. Technological advances have not only freed up time for Americans and brought greater efficiency but have also increased the amount of stress in their fast-paced lives. Laptops, tablet computers, and mobile technology have become commonplace, and personal infor- mation managers have gained popularity. 3. As U.S. companies look for ways to develop customer relationships rather than just close sales, reminders of this relationship could come in the form of acceptable premiums or gifts that are useful to the customer. 4. Computer-based calendars are easily distributed nationally and globally. The globalization of business creates an opportunity to establish new client relationships in foreign markets. D. Threats 1. Reengineering, right-sizing, and outsourcing trends in management may alter tradi- tional channel relationships with brokers, dealers, and distributors, or eliminate them
  • 16. altogether. 2. Calendars are basically a generic product. The technology, knowledge, and equipment required to produce such an item, even a computer-based one, are minimal. The possible entry of new competitors is a significant threat. 3. Theft of trade secrets and software piracy through unauthorized copying are difficult to control. 4. Specialty advertising through promotional items relies on gadgetry and ideas that are new and different. As a result, product life cycles may be quite short. 5. Single-sourcing can be detrimental or even fatal to a company if the buyer–supplier rela- tionship is damaged or if the supplying company has financial difficulty. 6. Competition from traditional paper calendars and other promotional items is strong. E. Matching Strengths to Opportunities/ Converting Weaknesses and Threats 1. The acceptance of technological advances and the desire to control time create a potential
  • 17. need for a computer-based calendar. 2. Star Software has more opportunity for business growth during its peak season than it can presently handle because of resource (human and capital) constraints. 3. Star Software must modify its management hierarchy, empowering its employees through a more decentralized marketing organization. 4. Star Software should discuss future growth strategies with its supplier and develop contin- gency plans to deal with unforeseen events. Possible satellite facilities in other geographic locations should be explored. B-4 Online Appendix B | Sample Marketing Plan Opportunities are favor- able conditions in the environ- ment that could yield rewards for an organization if acted on properly. 7 7 Threats are conditions or barriers that may prevent the organization from reaching its objectives.
  • 18. 8 8 During the development of a marketing plan, market- ers attempt to match internal strengths to external opportuni- ties. In addition, they try to convert internal weaknesses into strengths and external threats into opportunities. 9 9 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5. Star Software should consider diversifying its product line to satisfy new market niches and develop nonseasonal products. 6. Star Software should consider surveying its current customers and its customers’ clients to gain a better understanding of their changing needs and desires. IV. MARKETING OBJECTIVES Star Software Inc. is in the business of helping other companies market their products and/
  • 19. or services. Besides formulati ng a market-oriented and customer-focused mission statement, Star Software should establish an objective to achieve cumulative growth in net profit of at least 50 percent over the next five years. At least half of this 50 percent growth should come from new, nonmanufacturing customers and from products that are nonseasonal or that are generally delivered in the off-peak period of the calendar cycle. To accomplish its marketing objectives, Star Software should develop benchmarks to mea- sure progress. Regular reviews of these objectives will provide feedback and possible correc- tive actions on a timely basis. The major marketing objective is to gain a better understanding of the needs and satisfaction of current customers. Because Star Software is benefiting from a 90 percent reorder rate, it must be satisfying its current customers. Star could use the knowl- edge of its successes with current clients to market to new customers. To capitalize on its success with current clients, the company should establish benchmarks to learn how it can improve the products it now offers through knowledge of
  • 20. clients’ needs and specific opportu- nities for new-product offerings. These benchmarks should be determined through marketing research and Star’s marketing information system. Another objective should be to analyze the billing cycle Star now uses to determine if there are ways to bill accounts receivable in a more evenly distributed manner throughout the year. Alternatively, repeat customers might be willing to place orders at off-peak cycles in return for discounts or added customer services. Star Software should also create new products that can use its current equipment, technol- ogy, and knowledge base. It should conduct simple research and analyses of similar products or product lines with an eye toward developing specialty advertising products that are software based but not necessarily calendar related. V. MARKETING STRATEGIES A. Target Market(s) Target Market 1: Large manufacturers or stand-alone manufacturing divisions of large cor- porations with extensive broker, dealer, or distributor networks
  • 21. Example: An agricultural chemical producer, like Dow Chemical, distributes its products to numerous rural “feed and seed” dealers. Customizing calendars with Chicago Board of Trade futures or USDA agricultural report dates would be beneficial to these potential clients. Target Market 2: Nonmanufacturing, nonindustrial segments of the business-to-business market with extensive customer networks, such as banks, medical services, or financial planners Example: Various sporting goods manufacturers distribute to specialty shop dealers. Calendars could be customized to the particular sport, such as golf (with PGA, Virginia Slims, or other tour dates), running (with various national marathon dates), or bowling (with national tour dates). B-5Sample Marketing Plan | Online Appendix B The development of marketing objectives is based on environmental analysis, SWOT analysis, the firm’s overall corporate objectives, and the organization’s resources. For each objective, this section should answer the question, “What is the specific and mea- surable outcome and time frame for completing this objective?”
  • 22. 10 10 The marketing plan clearly specifies and describes the target market(s) toward which the organization will aim its marketing efforts. The difference between this section and the earlier section covering target markets is that the earlier sec- tion deals with present target markets, whereas this section looks at future target markets. 11 11 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Target Market 3: Direct consumer markets for brands with successful licensing arrange- ments for consumer products, like Coca-Cola Example: Products with major brand recognition and fan club membership, such as Harley-Davidson motorcycles or the Bloomington Gold Corvette Association, could pro- vide additional markets for customized computer calendars. Environmental or political groups represent a nonprofit market. Brands with licensing
  • 23. agreements for consumer products could provide a market for consumer computer calendars in addition to the spe- cialty advertising product, which would be marketed to manufacturers/dealers. Target Market 4: Industry associations that regularly hold or sponsor trade shows, meetings, conferences, or conventions Example: National associations, such as the National Dairy Association or the American Marketing Association, frequently host meetings or annual conventions. Customized cal- endars could be developed for any of these groups. B. Marketing Mix 1. Products. Star Software markets not only calendar software but also the service of spe- cialty advertising to its clients. Star’s intangible attributes are its ability to meet or exceed customer expectations consistently, its speed in responding to customers’ demands, and its anticipation of new-customer needs. Intangible attributes are difficult for competitors to copy, thereby giving Star Software a competitive advantage. 2. Price. Star Software provides a high-quality specialty advertising product customized to its clients’ needs. The value of this product and service is reflected in its premium price.
  • 24. Star should be sensitive to the price elasticity of its product and overall consumer demand. 3. Distribution. Star Software uses direct marketing. Since its product is compact, light- weight, and nonperishable, it can be shipped from a central location direct to the client via UPS, FedEx, or the U.S. Postal Service. The fact that Star can ship to multiple locations for each customer is an asset in selling its products. 4. Promotion. Because 90 percent of Star’s customers reorder each year, the bulk of promo- tional expenditures should focus on new-product offerings through direct-mail advertising and trade journals or specialty publications. Any remaining promotional dollars could be directed to personal selling (in the form of sales performance bonuses) of current and new products. VI. MARKETING IMPLEMENTATION A. Marketing Organization Because Star’s current and future products require extensive customization to match clients’ needs, it is necessary to organize the marketing function by customer groups. This will allow Star to focus its marketing efforts exclusively on the needs and
  • 25. specifications of each tar- get customer segment. Star’s marketing efforts will be organized around the following cus- tomer groups: (1) manufacturing group; (2) nonmanufacturing, business-to-business group; (3) consumer product licensing group; and (4) industry associations group. Each group will be headed by a sales manager who will report to the marketing director (these positions must be created). Each group will be responsible for marketing Star’s products within that customer segment. In addition, each group will have full decision-making authority. This represents a shift from the current, highly centralized management hierarchy. Frontline salespeople will be empowered to make decisions that will better satisfy Star’s clients. These changes in marketing organization will enable Star Software to be more creative and flexible in meeting customers’ needs. Likewise, these changes will overcome the current B-6 Online Appendix B | Sample Marketing Plan Though the marketing mix section in this plan is abbrevi-
  • 26. ated, this component should provide considerable details regarding each element of the marketing mix: product, price, distribution, and promotion. 12 12 This section of the market- ing plan details how the firm will be organized—by functions, products, regions, or types of customers—to implement its marketing strategies. It also indicates where decision-making authority will rest within the marketing unit. 13 13 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. lack of diversification in Star’s product lines and client base. Finally, this new marketing orga- nization will give Star a better opportunity to monitor the activities of competitors. B. Activities, Responsibilities, and Timetables for Completion All implementation activities are to begin at the start of the
  • 27. next fiscal year on April 1. Unless specified, all activities are the responsibility of Star Software’s next president, Jonathan McLemore. • On April 1, create four sales manager positions and the position of marketing director. The marketing director will serve as project leader of a new business analysis team, to be composed of nine employees from a variety of positions within the company. • By April 15, assign three members of the analysis team to each of the following projects: (1) research potential new-product offerings and clients, (2) analyze the current billing cycle and billing practices, and (3) design a customer survey project. The marketing direc- tor is responsible. • By June 30, the three project groups will report the results of their analyses. The full busi- ness analysis team will review all recommendations. • By July 31, develop a marketing information system to monitor client reorder patterns and customer satisfaction.
  • 28. • By July 31, implement any changes in billing practices as recommended by the business analysis team. • By July 31, make initial contact with new potential clients for the current product line. Each sales manager is responsible. • By August 31, develop a plan for one new-product offering, along with an analysis of its potential customers. The business analysis team is responsible. • By August 31, finalize a customer satisfaction survey for current clients. In addition, the company will contact those customers who did not reorder this year’s product line to dis- cuss their concerns. The marketing director is responsible. • By December, implement the customer satisfaction survey with a random sample of 20 percent of current clients who reordered this year’s product line. The marketing director is responsible. • By February, implement a new-product offering, advertising to current customers and to a sample of potential clients. The business analysis team is responsible.
  • 29. • By March, analyze and report the results of all customer satisfaction surveys and evaluate the new-product offering. The marketing director is responsible. • Reestablish the objectives of the business analysis team for the next fiscal year. The mar- keting director is responsible. VII. PERFORMANCE EVALUATION A. Performance Standards and Financial Controls A comparison of the financial expenditures with the pl an goals will be included in the project report. The following performance standards and financial controls are suggested: • The total budget for the billing analysis, new -product research, and the customer survey will be equal to 60 percent of the annual promotional budget for the … Section 6.4: Logarithmic Equations and Inequalities, from College Algebra: Corrected Edition by Carl Stitz, Ph.D. and Jeff Zeager, Ph.D. is available under a Creative Commons Attribution- NonCommercial-ShareAlike 3.0 license. © 2013, Carl Stitz. UMGC has modified this work and it is available under the original license.
  • 30. http://www.stitz-zeager.com/szca07042013.pdf http://www.stitz-zeager.com/szca07042013.pdf http://creativecommons.org/licenses/by-nc-sa/3.0/deed.en_US http://creativecommons.org/licenses/by-nc-sa/3.0/deed.en_US 6.4 Logarithmic Equations and Inequalities 459 6.4 Logarithmic Equations and Inequalities In Section 6.3 we solved equations and inequalities involving exponential functions using one of two basic strategies. We now turn our attention to equations and inequalities involving logarithmic functions, and not surprisingly, there are two basic strategies to choose from. For example, suppose we wish to solve log2(x) = log2(5). Theorem 6.4 tells us that the only solution to this equation is x = 5. Now suppose we wish to solve log2(x) = 3. If we want to use Theorem 6.4, we need to rewrite 3 as a logarithm base 2. We can use Theorem 6.3 to do just that: 3 = log2 ( 23 ) = log2(8). Our equation then becomes log2(x) = log2(8) so that x = 8. However, we could have arrived at the same answer, in fewer steps, by using Theorem 6.3 to rewrite the equation log2(x) = 3 as 2 3 = x, or x = 8. We summarize the two common ways to solve log
  • 31. equations below. Steps for Solving an Equation involving Logarithmic Functions 1. Isolate the logarithmic function. 2. (a) If convenient, express both sides as logs with the same base and equate the arguments of the log functions. (b) Otherwise, rewrite the log equation as an exponential equation. Example 6.4.1. Solve the following equations. Check your solutions graphically using a calculator. 1. log117(1 − 3x) = log117 ( x2 − 3 ) 2. 2 − ln(x− 3) = 1 3. log6(x + 4) + log6(3 −x) = 1 4. log7(1 − 2x) = 1 − log7(3 −x) 5. log2(x + 3) = log2(6 −x) + 3 6. 1 + 2 log4(x + 1) = 2 log2(x) Solution .
  • 32. 1. Since we have the same base on both sides of the equation log117(1 − 3x) = log117 ( x2 − 3 ) , we equate what’s inside the logs to get 1 − 3x = x2 − 3. Solving x2 + 3x − 4 = 0 gives x = −4 and x = 1. To check these answers using the calculator, we make use of the change of base formula and graph f(x) = ln(1−3x) ln(117) and g(x) = ln(x2−3) ln(117) and we see they intersect only at x = −4. To see what happened to the solution x = 1, we substitute it into our original equation to obtain log117(−2) = log117(−2). While these
  • 33. expressions look identical, neither is a real number,1 which means x = 1 is not in the domain of the original equation, and is not a solution. 2. Our first objective in solving 2−ln(x−3) = 1 is to isolate the logarithm. We get ln(x−3) = 1, which, as an exponential equation, is e1 = x − 3. We get our solution x = e + 3. On the calculator, we see the graph of f(x) = 2 − ln(x − 3) intersects the graph of g(x) = 1 at x = e + 3 ≈ 5.718. 1They do, however, represent the same family of complex numbers. We stop ourselves at this point and refer the reader to a good course in Complex Variables. 460 Exponential and Logarithmic Functions y = f(x) = log117(1 − 3x) and y = f(x) = 2 − ln(x− 3) and y = g(x) = log117 (
  • 34. x2 − 3 ) y = g(x) = 1 3. We can start solving log6(x+ 4) + log6(3−x) = 1 by using the Product Rule for logarithms to rewrite the equation as log6 [(x + 4)(3 −x)] = 1. Rewriting this as an exponential equation, we get 61 = (x + 4)(3 −x). This reduces to x2 + x− 6 = 0, which gives x = −3 and x = 2. Graphing y = f(x) = ln(x+4) ln(6) + ln(3−x) ln(6) and y = g(x) = 1, we see they intersect twice, at x = −3 and x = 2. y = f(x) = log6(x + 4) + log6(3 −x) and y = g(x) = 1
  • 35. 4. Taking a cue from the previous problem, we begin solving log7(1 − 2x) = 1 − log7(3 −x) by first collecting the logarithms on the same side, log7(1−2x) + log7(3−x) = 1, and then using the Product Rule to get log7[(1 − 2x)(3 −x)] = 1. Rewriting this as an exponential equation gives 71 = (1−2x)(3−x) which gives the quadratic equation 2x2−7x−4 = 0. Solving, we find x = −1 2 and x = 4. Graphing, we find y = f(x) = ln(1−2x) ln(7) and y = g(x) = 1− ln(3−x) ln(7) intersect only at x = −1 2 . Checking x = 4 in the original equation produces log7(−7) = 1
  • 36. − log7(−1), which is a clear domain violation. 5. Starting with log2(x + 3) = log2(6 − x) + 3, we gather the logarithms to one side and get log2(x + 3) − log2(6 −x) = 3. We then use the Quotient Rule and convert to an exponential equation log2 ( x + 3 6 −x ) = 3 ⇐⇒ 23 = x + 3 6 −x This reduces to the linear equation 8(6 −x) = x + 3, which gives
  • 37. us x = 5. When we graph f(x) = ln(x+3) ln(2) and g(x) = ln(6−x) ln(2) + 3, we find they intersect at x = 5. 6.4 Logarithmic Equations and Inequalities 461 y = f(x) = log7(1 − 2x) and y = f(x) = log2(x + 3) and y = g(x) = 1 − log7(3 −x) y = g(x) = log2(6 −x) + 3 6. Starting with 1 + 2 log4(x + 1) = 2 log2(x), we gather the logs to one side to get the equation 1 = 2 log2(x) − 2 log4(x + 1). Before we can combine the logarithms, however, we need a common base. Since 4 is a power of 2, we use change of base to convert
  • 38. log4(x + 1) = log2(x + 1) log2(4) = 1 2 log2(x + 1) Hence, our original equation becomes 1 = 2 log2(x) − 2 ( 1 2 log2(x + 1) ) 1 = 2 log2(x) − log2(x + 1) 1 = log2
  • 39. ( x2 ) − log2(x + 1) Power Rule 1 = log2 ( x2 x + 1 ) Quotient Rule Rewriting this in exponential form, we get x 2 x+1 = 2 or x2 − 2x− 2 = 0. Using the quadratic formula, we get x = 1 ± √
  • 40. 3. Graphing f(x) = 1 + 2 ln(x+1) ln(4) and g(x) = 2 ln(x) ln(2) , we see the graphs intersect only at x = 1 + √ 3 ≈ 2.732. The solution x = 1 − √ 3 < 0, which means if substituted into the original equation, the term 2 log2 ( 1 − √ 3
  • 41. ) is undefined. y = f(x) = 1 + 2 log4(x + 1) and y = g(x) = 2 log2(x) 462 Exponential and Logarithmic Functions If nothing else, Example 6.4.1 demonstrates the importance of checking for extraneous solutions2 when solving equations involving logarithms. Even though we checked our answers graphically, extraneous solutions are easy to spot - any supposed solution which causes a negative number inside a logarithm needs to be discarded. As with the equations in Example 6.3.1, much can be learned from checking all of the answers in Example 6.4.1 analytically. We leave this to the reader and turn our attention to inequalities involving logarithmic functions. Since logarithmic functions are continuous on their domains, we can use sign diagrams.
  • 42. Example 6.4.2. Solve the following inequalities. Check your answer graphically using a calculator. 1. 1 ln(x) + 1 ≤ 1 2. (log2(x)) 2 < 2 log2(x) + 3 3. x log(x + 1) ≥ x