Importance of market Lesson Note
Learning Objectives
This SS3 Marketing lesson note covers Importance of market for First Term, Week 2.
Lesson Note
Learning Objectives
By the end of the lesson, students should be able to:
Explain the meaning of an international market.
State the importance of international markets.
Explain the meaning of a domestic market.
Differentiate between domestic and international markets.
Importance of International Markets
Provides a wider market: It allows businesses to sell their products to customers in other countries.
Increases sales: Businesses can increase their sales by reaching customers outside their home country.
Increases profit: Access to more customers can help businesses make more profit.
Creates employment: International business activities can provide jobs for people.
Earns foreign exchange: Countries can earn foreign currency by selling goods and services to other countries.
Encourages economic growth: International trade contributes to the development of a country’s economy.
Encourages competition: Businesses compete with foreign companies, which can encourage them to improve their products and services.
Provides more choices: Consumers can have access to goods and services that may not be produced in their own country.
Differences Between Domestic Market and International Market
| Domestic Market | International Market |
|---|---|
| It operates within one country. | It operates between two or more countries. |
| Customers are mainly within the home country. | Customers may come from different countries. |
| It mainly uses the currency of the home country. | It may involve different currencies. |
| It is affected mainly by the laws of one country. | It is affected by the laws of different countries. |
| Cultural differences are usually fewer. | There may be differences in culture, language and customs. |
| Transportation is usually easier and cheaper. | Transportation may be more difficult and expensive. |
| Competition is mainly from local businesses. | Competition may come from businesses in different countries. |
| Marketing activities are usually simpler. | Marketing activities may be more complex. |
Evaluation
OBJECTIVE Questions
A market is important because it provides a place where ______ meet. A. teachers and students B. buyers and sellers C. drivers and passengers D. farmers and teachers
One major importance of the market is that it helps to ______. A. prevent buying and selling B. facilitate the exchange of goods and services C. stop production D. increase unemployment
The market helps producers to know the ______ of consumers. A. needs and wants B. names and ages C. schools and homes D. salaries only
Which of the following is an importance of the market to producers? A. It provides information about customers. B. It prevents production. C. It stops competition. D. It reduces the number of buyers.
The market provides consumers with ______. A. different goods and services B. only one product C. free houses D. employment in schools
The market encourages ______ among sellers. A. cooperation only B. competition C. laziness D. disagreement
One importance of the market to the economy is that it ______. A. creates employment opportunities B. stops economic activities C. reduces trade D. prevents production
Market information helps buyers and sellers to make ______ decisions. A. poor B. informed C. careless D. wrong
The market helps in determining the ______ of goods and services. A. colour B. price C. shape D. size
Which of the following is NOT an importance of the market? A. It facilitates buying and selling. B. It provides employment. C. It provides market information. D. It prevents consumers from buying goods.
Theory Questions
1a. What is an international market?
1b. State five importance of international markets.
2a. What is a domestic market?
2b. Mention five differences between domestic and international markets.
3a. State two challenges of operating in an international market.
3b. Differentiate between a domestic market and an international market.
3c. Explain the meaning of foreign exchange.