SUMMATIVE TEST 3

ENTREPRENEURSHIP Q

Name: __________________________________ Section: ________ Score: _________

A. Read each item carefully then answer the question that follows. Write your answer on the
space provided before each number.

Remembering (1 – 8) For item number 1 - 8. Refer to the choices in the box

A. Arranging E. People I. Promotion

B. Identifying F. Place J. Strategy
C. Marketing G. Price
D. Marketing Strategy H. Product

____1. What is the most effective method to persuade or convince your target customer?
____2. Which component of the marketing mix is paid by the consumer in exchange for the
product?
____3. Which of the following is the position and distribution channel of the product to make it
accessible to the potential buyers?
____4. Which of the following refers to a goods or services that is offered as a solution to
satisfy the needs of your customer?
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____5. What are the two activities used to the elements of marketing mix to allows a business
____6. to make profitable marketing decisions at every level.
____7. Which of the following helps to fix the advertising budget in advance, and it also
develops a method which determines the scope of the plan?
____8. It helps in developing goods and services with best profit-making potential.

Understanding (9 – 13)
____9. What does the overall marketing mix of a firm determine?
A. Marketing objective B. Marketing strategy
C. Profit from marketing D. All of the Above
____10. Which of the following is NOT an element in the marketing mix?
A. Price B. Product C. Profit D. Promotion
____11. Which is NOT included in the promotion?
A. Sales Promotion B. Advertising
C. Customer service D. Marketing
____12. What does the overall marketing mix of a firm determine?
A. Marketing strategy B. Marketing objective
C. Profit from marketing C. All of the above
____13. What two things should market strategy reflect?
A. Business goals and the reality of business operations.
B. Business situation and it’s economic status.
C. Product and promotion.
D. Mission and vision.

Applying (14 - 18)

____14. Management is deciding whether or not to offer the entire new line of athletic
equipment. This is an example of which marketing mix element?
A. Price B. Product C. Profit D. Promotion
____15. When is a business most likely to adjust the marketing mix of a product?
A. If costs change B. If location change
 C. If customer needs change D. If management changes
____16. What does the overall marketing mix create?
A. Customer needs B. Business objectives
C. A unique selling point for a product C. C. All of the above

____17. What is the main reason why a computer manufacturer decides to open a chain of
shops to sell products?
A. Existing shops were prepared to accept lower profit margins.
B. The manufacturer wants to control the product marketing.
C. It is much cheaper to open and run a chain of shops
D. None of this.
____18. Many consumers now ask other consumers for advice on products rather than
consulting manufacturers or retailers. What makes it easier for them to do this?
A. Modern mobile phones have internet connections to ask for advices.
B. Manufacturers delegate this responsibility to other consumers in order to save
costs.
C. Some manufacturers no longer have exclusive rights to give advice and guidance
about their products.
D. Social networking sites reviews have made it easier and cheaper for consumers to
self-publish and communicate.

Analyzing (19 -20)

____19. If a product is said to have a price inelastic demand curve, what does this mean?
A. If you the price down, sales volume will fall.
B. To sell more products, you should raise the price.
C. To make more sales revenue, you should lower the price.
D. If you change the price, sales volume will change very little.
____20. Gerry is the product manager for a fruit drink. Competition is building and so his
strategy is to encourage existing customers to become more regular purchasers and to build
brand loyalty. He is introducing different flavors, different sized bottles and low calorie options.
He is trying hard to keep the price down and this has helped him to find more distribution outlets
for his product. It sounds like this drink is at what stage of the product life cycle?
A. Introduction B. Growth C. Launch D. Maturity

Evaluating (21 – 23)

____21. Finder Bike Company claims their sportive bicycle as the road’s highest optimized
performer. How are their products recognized this way in the market place?
A. Promotion by Personal Selling
B. By Sales Market Positioning
C. By Product Distributing
D. By Unique Packaging
____22. It is often said that marketing is about managing the exchange process. In an
exchange one person or organization gives up something of value (e.g. a product) in return for
something else of value (e.g. money). If an exchange is based on good marketing strategies,
who benefits most and how?
A. The seller persuades the customer that the product is better than it really is.
B. The seller manages to overcharge the customer without them realizing it.
C. It is a fair exchange that makes both seller and buyer happy.
D. It is the most profitable exchange for the seller.
____23. Visto is a much loved Filipino drink, widely available in but nowhere else. Lately sales
have been falling and the big supermarkets have cut back on their orders. Which of the
following is most likely to be a successful extension strategy for this well-established drink?
A. Increasing the price
B. Advertising it on the Internet
 C. Exporting it to other countries
D. Offering the supermarkets special deals as incentives to stock it

Creating (24 – 25)

____24. How would you promote a product?
A. By offering Free Gifts, Free Samples, Free Trial, Customer, Contests, Special
Pricing
B. By offering Brochure, Catalogues, Fliers, Newsletters
C. By offering Post cards, Coupons, Email, Phone calls, Text messages
D. None of the above
____25. It is generally recognized that one of the best ways to get an advertising message
across is through word of mouth, that is, getting people to pass on the message to friends and
family. Why is this such a successful way to get messages heard?
A. It is free as there is no need to do any advertising.
B. The message keeps being passed on forever and so more people hear it.
C. The message reaches lots of people fast and is more likely to be believed.
D. The message is not wasted on people who will not buy your products anyway.