SY 2017-2018 Tangos National High School Grade 11 2nd Sem Midterm Exam SENIOR HIGH

SCHOOL Marketing Principles

Name: ________________________________________ Score: _____________
High Order Thinking Skills Examination for Principles of Marketing
I. Analyze and identify if the said feature of a SWOT below is a Strength, Opportunity, Weakness, or
Threat.
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 promotion. Star’s 18
employees face scheduling challenges, as Star’s business is highly seasonal, with its 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 opportunities and threats served as the foundation for this strategic analysis and marketing
plan. The plan focuses on the company’s growth strategy, suggesting ways in which 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 promotional tool by
its clients, it currently is considered a business-to-business marketer.
___________1. Star Software’s product differentiation strategy is the result of a strong marketing
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 customers. The relatively small size of the staff promotes camaraderie with coworkers and clients, and
fosters communication and quick response to clients’ needs.
___________ 3. 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 is spent on specialty
advertising. The potential for Star Software’s growth is significant in this market.
___________4. Theft of trade secrets and software piracy through unauthorized copying are
difficult to control.
___________ 5. Star’s current facilities are crowded. There is little room for additional employees or new
equipment
___________ 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. Computer-based calendars are easily distributed nationally and globally. The globalization
of business creates an opportunity to establish new client relationships in foreign markets.
___________ 8. 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.
___________ 9. 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.
___________ 10. The seasonal nature of the product line creates bottlenecks in productivity and cash flow,
places excessive stress on personnel, and strains the facilities.
II. Multiple choice. Choose and write beside each number the most appropriate answer.
_____11. Through categorizing, the accounting and finance function includes
a. transporting products. c. implementing business plans.
b. answering customer questions. d. developing budgets.
____ 12. Recalling the early part of the 20th century, the primary way to sell more products was
a. to advertise. c. to be able to deliver them to a larger number of customers.
b. to make more products. d. all of the above.
_____13. A marketing mix is the blending of which marketing elements?
a. location, distribution, price, and product c. product, price, distribution, and promotion
b. price, product, customer, and location d. market, product, promotion, and price SY 2017-2018 Tangos
National High School Grade 11 2nd Sem Midterm Exam SENIOR HIGH SCHOOL Marketing
Principles
_____14. In conclusion of marketing lessons, effective marketing relies on the principles and concepts of
a. advertising. c. economics.
b. creativity. d. all of the above.
_____15. Applying business strategies in real life, money spent on marketing is
a. simply an expense. c. wasted when the market is poor.
b. wasted when the market is good. d. an investment in the company’s future
_____16. The most difficult type of competition businesses face is a market in which they compete with
other businesses offering
a. similar products. c. lower quality products.
b. different products. d. more expensive products.
_____17. Competition between businesses is beneficial because
a. product demand stabilizes. c. it encourages product improvements.
b. it limits the variety of products available. d. all of the above.
____ 18. Shop at your competitor’s business to
a. attract customers to your business. c. evaluate the competitor’s financial status.
b. find information about current pricing and promotions. d. find information about suppliers.
____ 19. Using elements of competitive strategies, the purpose of collecting information about your
competitors is to
a. predict their future actions. c. assess their current marketing strategies.
b. identify their strengths and weaknesses. d. all of the above.
____ 20. Today, a business will miss some customers if it has not placed information on the Internet about
its
a. location. c. expenses.
b. officers. d. employees.
____ 21. Convenience goods include and associate with
a. staple goods. c. emergency goods.
b. impulse goods. d. all of the above.
____ 22. The marketing plan is based on
a. a marketing strategy. c. the behavior of competitors.
b. the current environment. d. available funds.
____ 23. To simplify, Marketing is a direct link between a business and its
a. investors. c. employees.
b. customers. d. all of the above.
____ 24. By evaluating the world business community, choose which of the following that completes the
sentence: Multinational companies hire employees, including managers, from ____________________
a. the main country where they operate. c. all countries where they operate.
b. countries where they hope to do business. d. all of the above.
____ 25. Many of the citizens of a country with a preindustrial economy
a. provide for all of their own needs. c. are employed by large companies.
b. sell manufactured goods. d. all of the above.
____ 26. Analyzing the history of the business world, it appears that in a preindustrial country it is difficult
to
a. produce products. c. sell products.
b. distribute products. d. all of the above.
____ 27. In applying and observing business participants in the real world you have learned, it may be
concluded that Advertising is performed by
a. businesses. c. political organizations.
b. churches. d. all of the above
_____28. While the decisions of the individual consumers are often guided by emotion, business
purchasing is usually
a. impulsive. c. unplanned.
b. rational. d. regulated. SY 2017-2018 Tangos National High School Grade 11 2nd Sem Midterm
Exam SENIOR HIGH SCHOOL Marketing Principles
_____29. From among the options, which among the choices that support the marketing mix that provides
protection and security for the product until the consumer can use it?
a. any associated services. c. packaging.
b. features. d. options
____30. From a selling perspective using application and understanding, a salesperson’s expenses can
include
a. product development. c. product packaging.
b. customer service. d. travel.
____ 31. Through critical evaluation of a salesperson, answering questions will often help to
a. give a demonstration.
b. identify the customer’s needs.
c. determine if the customer has the authority to make a purchase.
d. all of the above.
____ 32. Over the last few decades recall that the leading advertising media have been
a. radio and television. c. television and newspaper.
b. radio and newspaper. d. radio and billboards
____ 33. In synthesizing and categorizing selling process will be much more productive if the salesperson
knows
a. the needs of the prospective customer. c. the location of the prospective customer.
b. how to contact each customer. d. all of the above.
____ 34. For selling to be effective, salespeople must receive support from
a. other marketing personnel. c. customer service.
b. production. d. all of the above.
____ 35. It is a form of communicating or promoting value of a product, service of brand to the consumers.
a. brand equity c. marketing
b. branding d. advertising
____36. The buying process starts when the buyer recognizes a _________.
a. product c. a salesperson from a previous visit
b. an advertisement for the product d. problem or need
____37. The act of trading a desired product or service to receive something of value in return is
known as which key concept in marketing?
a. product c. production
b. exchange d. customer
____38.The promotion “P” of marketing is also known as ________.
a. Product Differentiation c. Cost
b. Distribution d. Marketing Communication
____39.Which of the following is NOT considered a type of reseller?
a. wholesaler c. manufacturer
b. retailer d. distributor
____40. Anything that can be offered to a market for attention, acquisition, use, or consumption that
might satisfy a want or need is called a(n):
a. idea. c. product.
b. demand. d. service.
____41. Public relations is creating and maintaining ___________ of an organization's various publics
(customers, employees, investors, etc) through ___________ and other non-paid forms of communications.
a. advertising/medium c. promotion/boost
b. goodwill/publicity d. none of the above
____42. Mark-up pricing is a pricing strategy that allows the seller a ______________ mark up every time
the product is ________________.
a. Target return pricing c. Product/packaging
b. Fixed/Sold d. None of the above
____43. The formula for obtaining a product's target return price is
a. MUP= __UC__ c. TRP= UC + (PRxTC)/US
(1- DMU) SY 2017-2018 Tangos National High School Grade 11 2nd Sem Midterm Exam SENIOR
HIGH SCHOOL Marketing Principles
b. UC= VC/U + FC/US d. None of the above
____44. Advertising, in classification of cost, is in what category which this item is normally classified?
a. Direct materials c. Promotion cost
b. Direct labor d. Raw materials
____45. Marketing is both an “art” and a “science” there is constant tension between the formulated
side of marketing and the ________ side.
a. creative c. management
b. selling d. behavior
III. Compute for the market COMPANY REVENUE INDUSTRY REVENUE
shares of the following given
annual revenues of industry
and company. MARKET
SHARE
1) Php 600 500 000 Php 950 000 000
2) Php 350 000 000 Php 765 000 000
3) Php 156 000 000 Php 845 000 000
4) Php 65 000 000 Php 487 000 000
5) Php 120 000 000 Php 355 000 000