Principles of Marketing

First Quarter Examination

NAME: __________________________________________________________________ SCORE: ___________

I. A. Multiple Choice:

Directions. Read each item very carefully. Encircle the letter that corresponds to the correct answer.

1. It is a social process by which individuals and groups

obtain what they need and want through creating and 8. ____________ is a state of felt deprivation of some
exchanging products and value with others. basic satisfaction.
a. Market a. Needs
b. Principles b. Wants
c. Strategies c. Demands
d. Marketing d. Products

1. It applies to anything that is being marketed, whether 9. It is the customer’s estimate of the product’s capacity
it is a tangible, an intangible good, a service, a place, to satisfy a set of goals.
or even a person. a. Needs
a. Service b. Wants
b. Product c. Demands
c. Need d. Value
d. Wants
10. A manufacturer of car batteries, who has been
2. It refers to the ability and need or desire to buy goods
selling through an automotive parts wholesaler to
and services.
a. Needs garages and service stations, decides to sell directly
b. Wants to retailers. Which of the following will necessarily
c. Demands occur?
d. Products
a. Elimination of the wholesaler’s profit will result in
3. It refers to the business itself: what are you selling, a lower price to the ultimate consumer.
how your organization is set up, what your b. Elimination of the wholesaler’s marketing
organization’s strengths and weaknesses are, and functions will increase efficiency.
essentially anything about your company that c. The total cost of distribution will be reduced
matters. because of the elimination of the wholesaler.
a. Internal Environment
b. External Environment d. The wholesaler’s marketing functions will be
shifted to or shared by the manufacturer and the
c. Industry
retailer.
4. These refer to alternative products or services your
markets might be considering rather than your core 11. In contrast to a selling orientation, a marketing
product. orientation seeks to
a. Alternative
b. Permanent a. increase market share by emphasizing
c. Substitute promotion
d. Secondary b. increase sales volume by lowering price
5. The set of procedures and sources used by c. lower the cost of distribution by direct marketing
managers to obtain everyday information about d. satisfy the needs of targeted consumers at a
developments in the marketing environment. profit
a. Market Research
b. Marketing Intelligence 12. All of the following are characteristics of
c. Research Methods services EXCEPT
d. Experimental Research
a. intangibility
6. ____________________is a means of answering a b. heterogeneity
hypothesis through the use of an experiment. c. perishability
a. Market Research d. Inflexibility
b. Marketing Intelligence
c. Research Methods
d. Experimental Research 13. In the marketing mix three of the 4P’s add to
7. It is also known as the serviceable available market. company costs. Which is the only P directly
This is the market that the company can actually concerned with producing revenues?
service with its current state of logistics. a. Promotion
a. Potential Market
b. Place
b. Available Market
c. Served market c. Product
d. Penetrated Market d. Price
 14. A fertilizer manufacturer who traditionally markets to 23. Missionary salespersons are most likely to do which
farmers through farm supply dealers and
of the following?
cooperatives decides to sell current products to
home gardeners through lawn and garden shops. a. Sell cosmetics directly to consumers in their own
This decision is an example of homes
a. market penetration
b. Take orders for air conditioners to be used in a
b. market development large institution
c. product development c. Describe drugs and other medical supplies to
d. diversification physicians
d. Secure government approval to sell heavy
15. A manufacturer who refuses to sell to dealers its machinery to a foreign government
popular line of office copiers unless the dealers also
agree to stock the manufacturer’s line of paper 24. The demand for industrial goods is sometimes
products would most likely be guilty of which of the called “derived” because it depends on
following?
a. Deceptive advertising a. economic conditions
b. Price discrimination b. demand for consumer goods
c. Price fixing c. governmental activity
d. Tying contracts d. availability of labor and materials

16. Which of the following is an intermediary in the 25. Behavioral research generally indicates that
distribution channel that moves goods without consumers’ attitudes
taking title to them?
a. Agent a. do not change very easily or quickly
b. Wholesaler b. are very easy to change through promotion
c. Merchant c. cannot ever be changed
d. Retailer d. can only be developed through actual experience
with products
18. In which of the following situations is the number
of buying influences most likely to be greatest? 26. A channel of distribution refers to the
a. A university buys large quantities of paper for
computer printers on a regular basis. a. routing of goods through distribution centers
b. A computer manufacturer is building a new b. sequence of marketing intermediaries from
headquarters and is trying to choose a line of office producer to consumer
furniture. c. methods of transporting goods from producer to
c. A consumer decides to buy a different brand of consumer
potato chips because they are on sale. d. suppliers who perform a variety of functions
d. A retail chain is searching for a vendor of lower-
priced cleaning supplies.
27. A major advantage of distributing products by truck is
19. Which of the following best describes the a. low cost relative to rail or water
process of selecting target markets in order to b. low probability of loss or damage to cargo
formulate a marketing mix? c. accessibility to pick-up and delivery locations
a. Strategic planning d. speed relative to rail or air
b. Product differentiation
c. Market segmentation
d. Marketing audit 28. If a firm is using penetration pricing, the firm is most likely
trying to achieve which of the following pricing objectives?
20. Cooperative advertising is usually undertaken by a. Product quality leadership
manufacturers in order to b. Market-share maximization
a. secure the help of the retailer in promoting a given c. High gross margin
product d. Status quo
b. divide responsibilities between the retailers and
wholesalers within a channel of distribution
29. If a company decides to allocate more resources to
c. satisfy legal requirements
personal selling and sales promotion by its resellers,
d. create a favorable image of a particular industry in
the minds of consumer which of the following strategies is it using?

a. Pull strategy
21. Marketer usually offers a noncumulative quantity b. Push strategy
discount in order to: c. Direct selling strategy
a. reward customers for repeat purchases
d. Indirect selling strategy
b. reduce advertising expenses
c. encourage users to purchase in large quantities
30. Marketing strategy planning includes
d. encourage buyers to submit payment promptly
a. supervising the activities of the firm’s sales force
22. Which of the following statements about secondary data b. determining the most efficient way to manufacture
is correct? products
a. Secondary data are usually more expensive to c. selecting a target market and developing the
obtain than primary data. marketing mix
b. Secondary data are usually available in a shorter d. determining the reach and frequency of advertising
period of time than primary data.
c. Secondary data are usually more relevant to a
research objective than are primary data.
d. Secondary data must be collected outside the firm
to maintain objectivity.
II. Writing

CASE STUDY:

In Denmark, environmentally friendly houses are common place but in the UK they are the exception. The
vision of two builders in Northern England, however, led to the building of a rare “green house.” The task of
building it was daunting but so too was the challenge advertising it to potential buyers.

Scientists have shown that conventional houses play a major part in global warming, depleting the ozone
layer and destroying tropical rain forests. Consequently, the builders believed that a new type of consumers was
emerging: one who is prepared to make choices based on what is best for the planet, but who demands that the
product does not cost too much.

The “greenhouse” emits only three tons of carbon dioxide a year, just half that of a traditional house.
There is also twice the regulatory amount of loft insulation and the walls and floor are three times better insulated
than a standard new home. The cavity walls have 15 cm (rather than the standard 5 cm) filled with rock wool. The
loft has 30 cm of non- irritant brown cellulose, made from recycled newsprint. Under the floor there is 10 cm layer
of CFC- free Polystyrene. The house also features a high efficiency gas condensing boiler which extracts more of
the flue gases and uses15 percent less gas for the amount of heat generated than the standard boiler, so only half
of the heating energy should be used. The home is built on a south- facing slope and more of its windows are on
the south side to take maximum advantage of sun. they are all double- glazed with Pilkington “K” glass which has
an extra copper film to reflect heat back into the room reducing heat loss by 40- 50 percent.

The efficiency of the house is reflected in the award by the National Home Energy Foundation, which
awarded the house almost its maximum rating (9.3 0ut of 10). The price of the home is Ļ105 000, which is Ļ5000
more expensive if it did not have all of these extras. But the builders believed that buyers will make big savings of
heating and lightning besides playing their part in making the world a healthier place.

1. Who is the type of buyer likely to be interested in buying a “greenhouse?” Why?

2. Develop an advertising platform to appeal to them.

3. Bearing in mind that funds restrict the advertisement to a maximum of 8 cm by 10 cm wide, design an
advertisement for the house.

PREPARED BY:
AGNES R. RAMO
Subject Teacher

CHECKED BY:
ETHEL P. FABIA
SHS Focal Person

NOTED:
JUPITER L. PETILLA, Ed.D.
Principal IV