Summative Test – Principles of Marketing

1. It is the study on how a person behaves towards the purchase of goods and services.
A. buying behaviour C. consumer buying behavior
B. business buying behaviour D. consumer preference
c
2. When a customer buys a product, he or she initially identifies a need, weighs his or her options and finally
chooses a specific product or service. This process is referred to as
A. decision C. purchase decision process
B. preference D. thought process
c
3. Jennifer realized that she has an unfulfilled need or want so she bought an Iphone X. What step in the
consumer decision making process did Jennifer exhibit?
A. evaluation of alternatives C. problem recognition
B. information search D. purchase decision

1.The study on how a person behaves towards the A. Consumer buying behavior
purchase of goods and services.
B. Purchase decision process
2. A customer initially identifies a need, weighs his or
her options and finally chooses a specific product or C. Problem recognition
service
D. Goods
3. Mark realized that he needed a car so he bought a
Mazda.

4. Tangible products are also called ____

5.

c
b4. Lamborghini cars; Iphone X A. Convenience products
a5. Milk; canned goods; soap; toothpaste B. Specialty products
c6. Furniture; clothing C. Shopping products
D. Unsought products

7. When a seller sells tangible products to the buyer, those products are referred to as
A. experiences B. goods C. ideas D. services

Matching Type:
a7. The first step to consider when developing new products and A. Idea generation
services. B. Market testing
c8. The stage where the prototype is produced. C. Product development
d9. The most important factor when setting the price. D. Product cost
e10. The element in the marketing mix that generates return for E. Price
the business

Matching Type:
c11. The pricing strategy where the company first determines the A. Bundle pricing
production cost plus a set amount based on the profit the
company wants to generate. B. Competition pricing
d12. Hermes and Louis Vuitton bags use this type of pricing.
C. Markup pricing
b13. Business make use of the ongoing price of products
generally being sold. D. Premium pricing

e14. A seller acquires products at P120 and sold at P200. E. Psychological pricing

f15. A business should not make use of this pricing strategy. F. Incremental pricing

16. It is a chain of businesses or intermediaries through which a good or a service passes through until it
reaches the end customers.
A. distribution channel C. distribution structure
B. distribution function D. distribution strategy

17. The following are examples of a distribution channel EXCEPT

A. distributors B. marketing C. retailers D. wholesalers

18. Under which element in the marketing mix does the distribution belong?
A. place B. product C. price D. promotion

19. These people have a business relationship with the manufacturers they are going to represent. They
become the manufacturers’ direct point of contact.
A. distributors? B. franchisers C. retailers D. wholesalers

20. A promotional tool that is a one-on-one interaction between the seller and the prospective buyer.
A. advertising B. personal selling C. public relations D. sales promotion
21. Companies use this incentive tool to increase short term sales.
A. advertising B. personal selling C. public relations D. sales promotion

c22. Hire an expert to improve the company’s image A. Advertising

and products to the public. B. Direct marketing
a23. Hiring the local newspapers to carry ads to C. Public relations
make people aware of your new product. D. Sales promotion
d24. 50% off or buy-one-take-one

24. In this stage of the marketing process, it is important to first clarify the vision of the business and what the
business wants to achieve.
A. analysis B. evaluation C. goal-setting D. planning

25. Market analysis includes the ff EXCEPT

A. market profitability B. market penetration C. market trends D. market size

26. Which of the ff is NOT an important tool for a marketing plan.

A. analysis B. control C. evaluation D. implementation

27. Key success factors are elements necessary in order for the firm to be successful in achieving its
objectives. All of the statements below is an example of this EXCEPT:
A. achieve economics of scale C. stable financial resources
B. short product life cycles D. technological progress

28. In market analysis, _________ is considered to be important because it is the source of new opportunities
and threats brought about by changing customer behaviour.
A. market demand C. market size
B. market structure D. market trend

29. It is a comprehensive, systematic, independent, and periodic examination of the company’s marketing
environment, objectives, strategies and activities with a view to determining problem areas and opportunities.
A. marketing audit C. marketing plan
B. marketing strategy D. marketing analysis

30. A tool used in marketing audit where the key is understanding which among the company’s strengths are
also important to the customers and which among the company’s weaknesses affect customer relationship.
A. branding B. PESTLE analysis C. segmentation D. SWOT analysis

31. The P in the PESTEL model stands for

A. Pharmacy B. Personal C. Political D. Professional

32. In the internal marketing environment, the company is concerned in these factors EXCEPT
A. marketing and advertising tools C. revolutionary technologies
B. people and budget D. time and promotions

33. Which of the following is not an aspect of marketing audit?

A. competitor analysis
B. customer and prospect research
C. marketing overview assessing internal factors
D. The reach of the communication channel used

34. It is a group of customers within the serviceable available market that the business has decided to aim.
A. target market B. market segment C. financial market D. night market

35. All of these are types of market segmentation EXCEPT

A. geographic B. behavioural C. demographic D. physiologic

36. When the company is targeting a new market, this market can be separated in terms of ____________.
A. competition B. distribution channel C. geographic D. price wars
37. When defining a target market, these factors are usually taken into consideration EXCEPT
A. Affiliations B. Age C. Income D. Lifestyle

38. This factor in identifying a target market includes age, race and sex.
A. demographic B. geographic C. psychographic D. socio-cultural

39. It is a business document outlining the strategy and tactics of a company.

A. marketing plan C. marketing objectives
B. marketing tactics D. marketing strategy

40. The following are key elements of a marketing plan EXCEPT

A. packaging B. product C. price D. place

41. Which of the following shows a benefit of a marketing plan?

A. It emphasizes strict adherence to the objectives.
B. It allows employees to keep motivated in their work.
C. It emphasizes the internal activities of the company.
D. It allows a company to clearly identify their market.

42. In order to entice the market to purchase the product, the product should have
A. The right features such that it is physically appealing but also works well.
B. The right features such that it is physically appealing but also works well and the right price such that it is
charged high but the product works above average and the appearance is average.
C. The right price such that it is charged high but the product works above average and the appearance is
average.
D. The right price such that it is charged high and the appearance is above average.

43. The following shows the importance of market planning EXCEPT

A. It helps the coordination and communication among departments.
B. It helps avoid future uncertainties.
C. It helps in the alignment of goals and strategies.
D. It helps in developing rewards and incentives for employees.

44. The first step in the market planning process is

A. assessing organizational resources C. evaluating risks and opportunities
B. determining the organizational objective D. marketing strategy

45. The overall strategy of an organization that combines all of its marketing goals into one comprehensive
plan.
A. market positioning B. market targeting C. market segmentation D. marketing strategy

46. Its objective is to occupy a clear, unique and advantageous position in the consumer’s mind.
A. market positioning C. market segmentation
B. market targeting D. marketing strategy

47. It is important that marketers need to subdivide a large market into clearly identifiable segments having
similar needs, wants or demand characteristics. It objective is to design a marketing mix that precisely matches
the expectations of customers in the targeted segment.
A. market positioning C. market segmentation
B. market targeting D. marketing strategy

a48.The set of actions or tactics that a company uses

to promote its brand or product in the market. A. 4 P’s
d49. The point of sale making the product available to B. Executive summary
target consumers. C. Marketing audit
b50. The summary of the main goals and D. Place
recommendations of the plan for management review.