Market
FIRST TERM
LEARNING NOTES
CLASS: JSS 2 (BASIC 8)
SCHEME OF WORK WITH LESSON NOTES
Subject :
Business Studies
Term :
FIRST TERM
Week:
WEEK 8
Class :
JSS 2 (BASIC 8)
Previous lesson:
The pupils have previous knowledge of
Trade : Internal and International Trade
that was taught as a topic during the last lesson.
Topic :
Market
Behavioural objectives:
By the end of the lesson, the pupils should be able to
- Define market.
- Mention and explain types of market.
- List classification of operation in the commodity market.
- Say the methods of buying and selling?
Instructional Materials:
- Wall charts
- Pictures
- Related Online Video
- Flash Cards
Methods of Teaching:
- Class Discussion
- Group Discussion
- Asking Questions
- Explanation
- Role Modelling
- Role Delegation
Reference Materials:
- Scheme of Work
- Online Information
- Textbooks
- Workbooks
- 9 Year Basic Education Curriculum
- Workbooks
Content
MARKETS
A market is a place where buyers and sellers are in contact with one another to buy and sell goods and services. Examples are the local open-air markets in villages, the local markets with stalls, covered markets, shops and shopping complexes etc.
Market is “a means by which buyers and sellers are brought into contact with one another.”
What is significant for a market to exist are the following:
(i) goods or services
(ii) a buyer or buyers
(iii) a seller or sellers and
(iv) a medium of exchange (money).
Types of Markets
The following are some of the different types of markets:
Commodity Market
Commodity markets are made up of
(i) Markets for raw materials, which are used either as food or as input for industrial production. Examples are markets for cocoa, coffee, tea, crude oil, rubber, timber and fish.
(ii) Markets for finished products. These are markets for cars, television, doors, furniture and books.
Classification of Operations in the Commodity Markets
(i) Open-air Market
An open-air market is a market where sellers display their wares in the open air or under the tree for shade. Yams, vegetables, grains, agricultural equipment, some essential commodities like sugar and salt are usually sold in open-air markets. Goods are cheaper in open-air markets
(ii) Market Stalls
Is a place of contact for buyers and sellers. Stalls are small enclosures or rooms which usually have open fronts for the display of wares. They may even be kiosks stands within large walled area, usually in big towns and cities.
Examples of such markets include Tejuoso markets in Lagos, Kaduna
(iii) Shop
A shop may be a single room in a building, a number of shops in a location called a shopping center or multi-storey building containing many partitioned rooms for buying and selling.
Financial Markets
These are markets for borrowers of money and lenders of money for the purpose of aiding trade. They include the following:
Money Market
The money market is made up of institutions that lend out money for commercial purposes. These are commercial banks, merchant banks another finance houses. They give out money on short term basis and mainly for financing commerce.
Foreign Exchange Market
Our foreign exchange market since 1986 had been
(a) the Second-tier Foreign Exchange Market (SFEM) followed by
(b)Foreign Exchange Market (FEM)(use of Dutch auction Foreign Exchange method)
(c)The Bureau de change and Black market for foreign currencies.
Capital Market
Market for raising more money (new capital) for business purposes. It provides capital for
businessmen mainly on long term basis. In the capital market, stocks and shares are bought and sold.
Methods of Buying and Selling
Buying is the acquisition of goods by paying a certain amount of money as price.
Sellers carry their goods to the market for sale.
Buyers also go to the market with their money to buy goods. In order to exchange his money for goods, a price has to be negotiated. The buyer will like to exchange his money for goods from a seller who is ready to part with his goods at a price. The price must be acceptable and favorable to both the seller and the buyer.
Buying by Description or Grade:
Such goods are sold by description. Examples are as follows:
(a) Some sellers state the weight or quantity of their products – for example, a kilogram (kg) of gari, a bag of beans, a crate of eggs, a tin of milo a bottle of7-Up.
(b) Other sellers grade their products for sale. Goods sold by grade include eggs and cocoa. The size of eggs are used to classify them into grades while the quality of cocoa determines its own grade.
The products are usually graded A, B, and C or I, 2 and 3. Prices are according to the grade. Grade A or carries the highest price while Cor 3 carries the lowest price. In case the sellers’ claim is not true, the buyer can return the product in an ideal situation.
Buying by Sample
Buying by samples a method whereby sellers allow the consumers to taste or test their product before payingfor them. In some cases, a seller allows the consumer to use the product for some days or weeks and pays for it if the product satisfies the consumer tastes. Ifthe taste of the product or its performance is not satisfactory, the consumer may return it.
Goods commonly sold by sample include oranges, mango, cocoa, beans and garri. Sellers ofclothing materialscut small pieces for consumers to testy washing them. A dress-maker may allow a customer to try a shirt on for fitness before paying for it.
Buying by Inspection
Buying by inspection is the most popular method of buying and selling in Nigeria.
Goods are displayed for inspection in the open-air markets, stalls and shops. A buyer sees the goods he wants to buy and inspects them and in some cases tastes them. For example, a buyer can inspect yam tubers displayed in the openair market. Radios, televisions, fans and electrical appliances can be inspected and tested.
After the inspection and test, a customer can decide to buy or not to buy a product or determine whether the price put on the good is right.
Buying by Auction
Buying by auction requires that the prospective buyer makes an offer for the goods; that is, he bids for it. There is usually a large number of bidders and the goods will be sold to the highest bidder; that is, the person who offers the highest price will buy the good. The prospective buyers can inspect the goods before they bid for them.
Procedure for Buying and selling
- Cash transaction
- Credit Sales
- An Enquiry iv.
- Quotation or price list
- The order
- Invoice
- Proforma invoice
- Delivery note
- Payment and receipt
- mark-up price
- margin
- The Cooperative Store: Cooperative stores largely distribute essential commodities to members of the cooperative’s society. In cooperative stores, prices are generally lower than in markets or other stores because of bulk purchases.
- The Supermarkets: Supermarkets sell both food items and non-food items. It is usually a self-service shop with a large floorspace.
- Mail Order Stores: Mail order is concerned with buying through the post. The mail order operator distributes his catalogue to potential customers. The catalogue carries a description of the goods being sold with their prices. It will also state the terms of payment.
- The reasons for this include:
- Inadequate supply of goods for sale.
- Available goods are very costly; hence it will not be wise to add postage to the cost.
- Poor postal system.
- fraud and corruption.
Relationship between Cost and Selling Price
Cost is the monetary value of all resources used in producing a product. The cost price is the average monetary value of a unit of a product.
Profit is the difference between total revenue and total cost.
Loss is when the cost is higher than the total revenue.
Turnover is the total sales a seller makes per period of time. It may be for a day, a week, a month or a year. The higher the turnover, the higher the profit.
Presentation
The topic is presented step by step
Step 1:
The class teacher revises the previous topics
Step 2.
He introduces the new topic
Step 3:
The class teacher allows the pupils to give their own examples and he corrects them when the needs arise
EVALUATION:
- Define market.
- Mention and explain types of market.
- List classification of operation in the commodity market.
- What are the methods of buying and selling?
- What is trade?
- List three importance of trade.
- Explain in writing why home trade is important.
- Who supervises the activities of the Custom and Excise department?
- Define aid to trade
-
specify market.
-
Mention and describe several market kinds.
-
List the several types of commodities market operations.
-
What techniques of purchasing and selling are there?
- Explain internal trade
- What is international trade?
- Write four distinctions between domestic and international trade should be noted.
- How is commitment to duty reflected in performance?
- Describe four advantages of commitment to duty.
Conclusion
The class teacher wraps up or conclude the lesson by giving out short note to summarize the topic that he or she has just taught.
The class teacher also goes round to make sure that the notes are well copied or well written by the pupils.
He or she does the necessary corrections when and where the needs arise.
