MARKET DECISION-WIDER MARKET Lesson Note
A. Meaning of Market Decision
This SS3 Marketing lesson note covers MARKET DECISION-WIDER MARKET for First Term, Week 4.
Lesson Note
A. Meaning of Market Decision
A market decision is the choice a business makes about where and how to sell its goods or services.
A business may decide to sell only in its local area or enter a wider market where more customers can be reached.
B. Meaning of Wider Market
A wider market is a market that covers a larger area than the business’s immediate or local market.
For example, a business that sells only in Lagos may decide to sell its products in other states in Nigeria.
Examples of Wider Markets
Examples include:
Selling goods across different states in Nigeria.
Selling goods throughout Nigeria.
Selling goods to other African countries.
Selling goods to customers in Europe or America.
Selling products through online platforms to customers in different countries.
C. Reason for Choosing a Wider Market
1. To Escape from Competition
A business may enter a wider market when there is too much competition in its local area. By selling in other places, the business can find new customers and reduce its dependence on the crowded local market.
2. To Increase Sales
A wider market gives the business access to more customers, which can increase sales.
3. To Increase Profit
When sales increase, the business may make more profit.
4. To Find New Customers
The business can reach customers who have not bought its products before.
5. To Expand the Business
Entering new markets helps a business grow and become more widely known.
Summary
A business may choose a wider market to escape from strong competition, increase sales and profit, find new customers and expand its activities.
WEEKLY EVALUATIO
OBJECTIVE QUESTIONS
A market decision is a choice made by a business about where to ______ its goods.
A. sell
B. destroy
C. hide
D. store only
A wider market covers a ______ area.
A. smaller
B. larger
C. closed
D. limited
One reason for entering a wider market is to escape from ______.
A. customers
B. competition
C. workers
D. production
A business can increase its ______ by entering a wider market.
A. sales
B. problems
C. losses only
D. expenses only
Which of these is an example of a wider market?
A. Selling only to one neighbour
B. Selling goods across different states
C. Selling only to family members
D. Selling only in one street
A wider market gives a business access to more ______.
A. customers
B. buildings
C. machines
D. offices
Selling goods to other countries is an example of ______ market.
A. wider
B. local
C. personal
D. household
Entering a wider market can help a business to ______.
A. expand
B. close down
C. lose customers
D. stop production
When there are many competitors in a local market, a business may decide to ______.
A. enter a wider market
B. stop selling
C. destroy its goods
D. close immediately
One major benefit of a wider market is ______.
A. fewer customers
B. increased sales
C. reduced production
D. less business activity
Theory Questions
1a. What is a market decision?
1b. What is a wider market?
2a. State five reasons why a business may choose a wider market.
2b. Explain how entering a wider market can help a business escape competition.