What are the key steps in the procedure of personal selling?

Here are the solutions to your questions: 4. a) Procedure in personal selling: The procedure in personal selling typically involves several key steps: • Prospecting: This is the process of identifying potential customers (prospects) who have a need for the product or service and the financial capacity to purchase it. Salespeople use various methods like referrals, cold calling, and online research. • Pre-approach: Before contacting a prospect, the salesperson gathers information about them, such as their needs, preferences, background, and current situation. This helps in tailoring the sales presentation. • Approach: This is the initial contact with the prospect. The goal is to make a good first impression, build rapport, and gain the prospect's attention and interest to allow for a full presentation. • Presentation and Demonstration: The salesperson presents the product or service, highlighting its features and benefits, and demonstrating how it can meet the prospect's specific needs. This often involves visual aids or product trials. • Handling Objections: Prospects often raise concerns or questions. The salesperson must listen actively, understand the objection, and provide clear, convincing answers to overcome these hurdles. • Closing the Sale: This is the critical step where the salesperson asks for the order or commitment to purchase. Effective closing techniques aim to finalize the transaction and secure the customer's agreement. • Follow-up: After the sale, the salesperson maintains contact with the customer to ensure satisfaction, address any post-purchase issues, and build a long-term relationship for future business and referrals. 4. b) Difference between a movement and a shift in the demand curve: • Movement along the demand curve: This occurs when there is a change in the price of the good itself, leading to a change in the quantity demanded. All other factors affecting demand are assumed to remain constant. An increase in price causes a downward movement along the curve (decrease in quantity demanded), while a decrease in price causes an upward movement (increase in quantity demanded). Diagram 1: Movement Along the Demand Curve ` Price (P) ^ | D P1| . | . P2| . | . +----------------> Quantity (Q) Q1 Q2 ` Explanation: As price decreases from P1 to P2, the quantity demanded increases from Q1 to Q2, representing a movement along the existing demand curve (D). • Shift in the demand curve: This occurs when there is a change in non-price factors (e.g., consumer income, tastes, prices of related goods, expectations, population size), leading to a change in demand at every price level. An increase in demand shifts the entire curve to the right, while a decrease in demand shifts it to the left. Diagram 2: Shift in the Demand Curve ` Price (P) ^ | D1 D2 P | . . | . . | . . +----------------> Quantity (Q) Q1 Q2 ` Explanation: At the same price P, the quantity demanded increases from Q1 to Q2 due to a change in a non-price factor, causing the entire demand curve to shift from D1 to D2. 5. a) Five limitations of a trial balance as a tool of locating bookkeeping errors: A trial balance is useful for checking arithmetical accuracy but cannot detect all types of errors: • Errors of Omission: If a transaction is completely omitted from the books of accounts (i.e., neither a debit nor a credit entry is made), the trial balance will still balance, as the equality of debits and credits is maintained. • Errors of Commission: If an incorrect amount is entered on both the debit and credit sides of the ledger for a transaction (e.g., Sh 500 instead of Sh 5,000 for both entries), the trial balance will still balance. • Errors of Principle: If a transaction is recorded in the wrong class of account but with the correct amount (e.g., capital expenditure treated as revenue expenditure), the trial balance will balance, but the financial statements will be misleading. • Compensating Errors: If two or more errors cancel each other out (e.g., an over-debit in one account is offset by an over-credit in another account by the same amount), the trial balance will still balance, masking the individual errors. • Complete Reversal of Entries: If the correct accounts are used but the debit and credit entries are completely reversed (e.g., an expense is credited and cash is debited instead of the other way around), the trial balance will still balance. • Errors of Original Entry: If an error is made in the initial recording in a book of original entry (e.g., journal) and then posted correctly to the ledger, the trial balance will balance, but the original figure will be incorrect. 5. b) Five factors that could hasten economic development in Kenya: Economic development in Kenya can be accelerated by focusing on several key factors: • Investment in Infrastructure: Developing and improving critical infrastructure such as roads, railways, ports, energy supply, and communication networks reduces business costs, facilitates trade, and attracts both local and foreign investment. • Human Capital Development: Investing heavily in quality education, vocational training, and healthcare services improves the productivity, skills, and overall well-being of the workforce, fostering innovation and economic growth. • Good Governance and Rule of Law: Establishing stable political institutions, combating corruption, ensuring property rights, and enforcing contracts creates a predictable and trustworthy environment that encourages investment and reduces business risks. • Diversification of the Economy: Reducing over-reliance on a few primary sectors (like agriculture or tourism) and promoting growth in manufacturing, technology, and value-added services can create more resilient and higher-income economic opportunities. • Access to Finance and Credit: Ensuring that small and medium-sized enterprises (SMEs) and entrepreneurs have easier access to affordable loans, venture capital, and financial services enables them to expand, innovate, and create jobs. • Regional Integration and Trade: Actively participating in regional economic blocs and promoting international trade can expand market access for Kenyan products, foster competition, and attract foreign direct investment. 6. a) Five differences between a public warehouse and a private warehouse: | Feature | Public Warehouse | Private Warehouse | | :------------------ | :------------------------------------------------ | :------------------------------------------------ | | Ownership | Owned and operated by an independent company. | Owned and operated by a single business for its own use. | | Purpose/Clients | Offers storage services to multiple businesses for a fee. | Stores goods exclusively for the owning company. | | Capital Investment | Requires no capital investment from the user; users pay rent/fees. | Requires significant capital investment for land, construction, and equipment. | | Flexibility | Offers high flexibility in terms of space and duration; users can rent as needed. | Less flexible; space is fixed, potentially leading to underutilization or insufficient capacity. | | Control | Users have less control over operations, security, and handling procedures. | The owning company has full control over all operations, security, and handling. | | Cost Structure | Primarily variable costs for the user, based on space used and services rendered. | Involves high fixed costs (depreciation, maintenance, salaries) regardless of utilization, plus variable operating costs. |