Theory question 106
MarketingCommerce 2 (answer any five questions)
(a) Explain five reasons why a manufacturer may engage in personal selling.
(b) Explain five characteristics of Sole Proprietorship.
Show the model answer
(a) Any five, explained: to explain and demonstrate technical or complex products; to get immediate feedback on customers' needs and complaints; to persuade customers and answer their objections on the spot; to build personal relationships and customer loyalty; to negotiate price and terms with large buyers; to introduce new products; to give after-sales advice and service; to reach buyers who are few in number (industrial buyers).
(b) Any five, explained: owned and controlled by one person; capital provided by the owner (savings, loans from family); unlimited liability – owner's private property can be taken to pay debts; owner takes all profit and bears all losses; quick decision making and flexibility; few legal formalities to start; personal contact with customers and staff; no separate legal entity – the business ends with the owner's death (lack of continuity); usually small in size.
Each point needs a short explanation.