Initao College

P-2A, Jampason, Initao

Misamis Oriental, 9022 Philippines
S.Y. 2023 - 2024

FP 3: Entrepreneurial Marketing
Strategies
Name: __________________________________________________
MIDTERM EXAMINATION Course and Group: _________________
Instructor: Angelou C. Entia, LPT Date: ____________________________
I. Read carefully the statement. Shade your answer on the separate answer sheet. STRICTLY NO ERASURE. (50
points)

1. Which of these best describes the mindset of an entrepreneur using the creation approach?
A) Risk-averse
B) Calculative
C) Flexible and adaptive
D) Rigid and structured

2. The creation approach emphasizes which of the following?

A) Fixed business models
B) A mindset for dealing with unpredictability
C) Strict adherence to plans
D) Historical data analysis

3. Which approach to entrepreneurship is characterized by a linear process and predictable outcomes?

A) Creation Approach
B) Predictive Approach
C) Innovative Approach
D) Disruptive Approach

4. Which statement aligns with the creation approach?

A) Success can be predicted through data analysis.
B) Entrepreneurs should be prepared to adopt as new information arises.
C) There is a one-size-fits-all model for startups.
D) Business plans should be static and followed strictly.

5. Which approach is more suited for navigating complex and rapidly changing environments?
A) Predictive Approach
B) Creation Approach
C) Both are equally effective.
D) Neither approach is suited for complex environments.

6. Which of the following is NOT part of the major marketing functions?

A. exchange function
B. distribution function
C. facilitating function
D. pricing function

7. Which is defined as selling the offerings of the business.

A. Market
B. Price
C. Marketing
D. Entrepreneurship

8. Who defined e marketing as a set of human activities directed at facilitating and consummating
exchange?
A. Prof. Kotler
B. Prof. Stanton
C. B. F. Skinner
 D. Prof. William

9. An entrepreneur is planning to open a bakery. What should they first analyze to determine if the location
is viable?
A) Local demographics
B) Market demand and competition
C) Personal baking skills
D) Historical sales data of other bakeries

10. A farmer has a keen interest in poultry. What should they ensure before starting a poultry business?
A) Access to land only
B) Matching their interests with business opportunities
C) High investment funds
D) A large customer base

11. When a car dealership gives customers a trade-in amount for their old vehicle, what type of pricing are
they using?
A) Promotional pricing
B) Allowances
C) Segmented pricing
D) Competition-based pricing

12. A new café hires employees without checking their experience. What risk does the owner take?
A) Improved customer service
B) Inefficient operations and poor service quality
C) High employee morale
D) Increased sales

13. A furniture store relies on a specific supplier for wood. What should the owner consider to ensure
steady production?
A) Relying solely on one supplier
B) Ensuring a reliable and consistent supply chain
C) Reducing costs at any expense
D) Ignoring supplier relationships

14. A tech entrepreneur wants to develop an app. What is crucial for their success?
A) A strong marketing strategy
B) Having the necessary technical skills
C) A large team of employees
D) A unique idea only

15. A smartphone manufacturer wants to stay competitive. What should they focus on?
A) Investing in new technologies and innovations
B) Reducing product prices
C) Keeping the same product line
D) Expanding to rural areas only

16. A regional chain charges different prices for the same product in the East and West Coast markets.
This pricing strategy is known as:
A) Segmented pricing
B) Discount and allowance pricing
C) Allowances
D) Promotional pricing

17. A startup in the food industry is struggling to find quality ingredients. What should they prioritize?
A) Lowering prices to attract customers
B) Building relationships with reliable suppliers
C) Hiring more sales staff
D) Focusing on marketing only
18. What is the main objective of penetration pricing?
A) To maximize short-term profits
B) To gain market share by setting a low initial price
C) To target premium customers
D) To reduce production costs

19. An entrepreneur considers starting a gardening business. What should they do first?
A) Purchase all necessary equipment
B) Research market demand and competition
C) Set up a store immediately
D) Start hiring employees

20. A local restaurant is facing stiff competition. What should the owner analyze?
A) Their favorite recipes
B) Competitors' pricing and quality of service
C) The size of their dining area
D) Their suppliers

21. A clothing manufacturer is looking to reduce costs. What should they not compromise on?
A) Marketing budget
B) Quality of raw materials and suppliers
C) Employee salaries
D) Packaging costs

22. A startup business lacks of skilled employees. What is a viable alternative?

A) Invest in training programs for new hires
B) Hire untrained staff
C) Reduce the number of employees drastically
D) Focus on online marketing only

23. Which pricing strategy is most likely used by fast-food outlets when they offer "value menus"?
A) Cost-plus pricing
B) Value pricing
C) Skimming pricing
D) Competition-based pricing

24. An electronics manufacturer adopts the latest software to streamline production. What strength does
this demonstrate?
A) Lack of innovation
B) Availability of technology
C) Inefficient processes
D) High labor costs

25. A startup has secured a substantial investment from venture capitalists. How does this benefit the
company?
A) Increased competition
B) Sufficient funds for growth and development
C) Limited market access
D) Higher operating costs

26. A new beverage company is able to source fruit locally at low prices. What is this an example of?
A) High marketing costs
B) Cheap and abundant raw materials
C) Limited product variety
D) Poor quality control
27. A construction firm hires workers with specialized training and experience. What advantage does this
provide?
A) Increased hiring costs
B) Presence of skilled workers
C) Limited workforce options
D) Reduced project scope

28. An entrepreneur has years of experience in managing similar businesses. How does this impact their
new venture?
A) Management and technical expertise of the entrepreneur
B) Increased operational risk
C) Limited business knowledge
D) High turnover rates

29. A luxury brand charges significantly more than its competitors but fails to deliver exceptional quality.
What is this an example of?
A) Strong branding
B) High price and poor quality/service
C) Effective marketing
D) Customer loyalty

30. A software company struggles to meet project deadlines due to inexperienced staff. What weakness
does this indicate?
A) Effective communication
B) Lack of skilled workers
C) High employee morale
D) Strong teamwork

31. A restaurant frequently runs out of popular menu items due to inconsistent suppliers. What issue does
this represent?
A) High customer satisfaction
B) Irregular supply
C) Strong vendor relationships
D) Efficient inventory management

32. When using a skimming strategy, a company will typically:

A) Set high prices initially to recover research and development costs
B) Set low prices to drive out competitors
C) Offer discounts to attract a large market
D) Focus on increasing market share quickly

33. A manufacturing firm faces rising costs due to inefficient production processes. What weakness does
this reflect?
A) Low employee turnover
B) High cost of production
C) Strong market demand
D) Effective resource management

34. A car manufacturer acquires a steel plant to control the production of raw materials. What type of
integration is this?
A) Horizontal integration
B) Backward integration
C) Forward integration
D) Conglomerate integration
35. A coffee producer opens a chain of retail cafés to sell its products directly to customers. What kind of
integration is this?
A) Backward integration
B) Forward integration
C) Vertical integration
D) Lateral integration

36. Which of the following is an example of backward integration?

A) A mobile phone company opening its own stores
B) A bakery buying a wheat farm to supply its flour
C) A retail store starting its own delivery service
D) A software company acquiring a design agency

37. A clothing manufacturer acquires a distribution company to deliver its products directly to stores. This is
an example of:
A) Horizontal integration
B) Forward integration
C) Backward integration
D) Diversification

38. Why might a company engage in backward integration?

A) To increase control over its marketing and sales
B) To secure a steady supply of raw materials
C) To enhance brand recognition
D) To focus more on retail sales

39. Why is analyzing population trends important when selecting a business location?
A) It helps determine the availability of raw materials
B) It provides insight into the size and growth of the customer base
C) It ensures proximity to competitors
D) It reflects the area's tax policies

40. An area with high-income growth may be a good location for which type of business?
A) Low-cost convenience stores
B) Luxury goods and services
C) Discount retail outlets
D) Warehouse distribution centers

41. What role do consumer characteristics play in choosing a business location?

A) They help determine if the local population is likely to purchase certain products
B) They dictate government regulations
C) They reflect the cost of transportation
D) They ensure the business has no competition

42. During the holiday season, a supermarket sells turkeys at a price lower than cost to attract customers.
This is an example of:
A) Promotional pricing
B) Segment pricing
C) Allowances
D) Discount pricing

43. What is the key principle behind cost-plus pricing?

A) Setting prices based on customer perceptions
B) Adding a fixed mark-up to the cost of the product
C) Setting prices based on competitors' prices
D) Offering the best quality at the lowest price
44. A. company emphasizes its needs and sales then uses aggressive sales tactics to promote its existing
products, regardless of consumer feedback. This is an example of:
A) Marketing concept
B) Selling concept
C) Customer relationship management
D) Market segmentation

45. A startup is focused on understanding and addressing specific customer needs before developing its
offerings. What principle are they following?
A) Selling concept
B) Marketing concept
C) Product concept
D) Production concept

46. A business develops a new line of shoes based on trends it has identified, ensuring they meet customer
desires. What strategy are they using?
A) Marketing concept
B) Selling concept
C) Product concept
D) Pricing concept

47. Why is it crucial for a business to consider costs when setting prices?
A) To impress competitors
B) To ensure that selling prices cover production costs and fixed expenses
C) To follow market trends
D) To increase customer loyalty

48. Which of the following is not part of marketing strategies?

A) product strategy
B) price strategy,
C) distribution strategy.
D) people strategy

49. How do competitors impact a business's pricing strategy?

A) They have no influence
B) They can dictate whether a business sets prices independently or follows market trends
C) They always offer lower prices
D) They only affect product quality

50. This refers to the outline of actions designed to achieve a specific set of goals. It must be compatible
with marketing resources and the external environment of the enterprise.
A) Marketing concept
B) Marketing plan
C) Marketing strategies
D) Marketing analysis