SCHEME OF WORK
WEEK:
1. Revision of last term`s work/ Introduction to Marketing
Meaning, Importance and Functions
Marketing Concept: Consumer orientation and sovereignty.
2. Marketing Mix (4ps)
Product, Price, Promotion and place.
Market segmentation and Types.
3. Advertising
Meaning, Concepts and Role
Types and methods of advertising
Advertising media, print media, Press, Newspaper, magazine, Journal and Brokers stic.
Television, Radio, Cenima
Bill board, Window Display, Catalogue, Exhibitions and trade Fairs, Tree Sample etc.
Advantages and Disadvantages of each medium.
4. Public Relation and Customer service
Meaning and Importance
Legal aspect of Business
Law of Contract
Meaning, Essential characteristics
Types of Contract
Termination of Contract
Remedies for Breach of Contract.
5. Law of Agency
Meaning appointment, Duties and Right of Agent
Termination of agency
6. Sales of Goods Contract
Sales of goods meaning
Contract of sales terms
Sales of goods art 1893 provision
Some terms used in the contract of sale.
7. Rights and obligations of Employers and Employee
Government Regulates of Business and method e.g.
Registrations of Business patent trade mark and copy right etc Negotiable instruments.
Definition, Characteristics, Types
Some terms used in negotiable instrument.
8. Intervention and Communication Technology (ICT)
Meaning and Functions
Advantages and Disadvantages
Terms, Internet browsing, Password, E-mail, Worldwide Web Sight (WWW) com/yahoo./org. Search, Cyber cafe, Local area network etc.
9. E- Commerce
E- Banking e.g online
E- Business
E- Payment
10. Revision
2ND TERM
WEEK 1
Topic: Business Law
(i) Difference between Law and business law (ii) major branches of Business law;
i) Law of contract
ii) Sale of goods
iii) Agency
iv) Hire purchase
outlines of Instructional Content:
i) Definitions of Law.
ii) Definition of Business law
iii) Branches of business law
iv) Measuring of a contract
v) The eight essential elements of a valid contract
vi) Parties to a contract
vii) Types of contract.
Behavioral objective: At the end of the lessons students should be able to understand the various types of contract and the essential elements of a valid contract.
Definition of law: Law can be defined as rules that society enforces to govern its people and to ensure its survival and smooth functioning.
Definition of business law: this refers to all the aspects of law that govern business transaction.
Branches of business law: There are four major branches of business law viz: Law of contract, sale of goods, agency, and hire purchase.
Meaning of Contract: A contract can be defined as an agreement between two or more persons which is intended by them to have legal consequences.
The Eight essential elements of a valid contract
(i) An offer and unqualified acceptance
(ii) An intention to create legal relations
(iii) Valuable consideration
iv) Contractual capacity of the parties
v) Genuiness of consent
vi) Legality of objects of the contract
vii) possibility of performance
viii) Certainty of terms.
a) Offer and acceptance:- in a valid contract, there must be an offer and
unqualified acceptance by the two parties.
b) Genuiness of consent:- for a contract to exist the consent of the parties
must be genuine. It must not be under dues, undue influence or
misrepresentation
c) Intention to create legal relations: it must be quite clear from the terms of
the agreement that the parties intended to create a legally binding
contract.
d) Valuable consideration:- Consideration can be defined as the price for
which a promise is bought. i.e. some elements of exchange which is
measurable in money's worth.
e) legality of objects of the contract:- the contract must be undertaken for
legal purpose. Any contract in which the objective is to commit crime or
civil wrong cannot be enforced by the court.
f) Contractual capacity of the parties:- Those entering into a contract must
have contractual capacity. An adult only or corporation can enter into a
valid contract while a minor (drunkard, underage and an insane person)
cannot enter into a contract.
The following contracts are binding on a minor (under 18) (a) the sales of goods act 1893 says that a minor must pay a reasonable price for the basic necessity sold and delivered. (b) Contract for the infants benefit e.g. education training.
g) Certainty of terms of contract:- The terms of the contract must be clearly
stated. A contract may contain two types of clauses namely; express and
implied terms.
h) Possibility of performance: The parties to a contract can enter into a
contract once they are sure that they can do the job. It must be possible
to carryout the contract.
- Promisor: This is the person who makes a promise in a contract
agreement.
- Promise: This is the person to whom a promise in a contract agreement is made to
- Obligator: This is a promisor whom a binding promise imposes a duty or obligation.
- Obligee: Obligee is the promise who can claim the benefit of the obligation.
- Landlord or Lessor: This is a arty in a contract who agrees that another will
occupy his house upon payment of an agreed amount for a given period of time.
- Tenant or Lessee: This is a party in a contract who agrees to pay an agreed amount in order to occupy the house of another party for a given period of time.
- Vendee: the party that offers to buy something in a sales contract.
- insurer: The party that agrees in an insurance contract to insure another persons objects.
- insured: The party whose object was insured in an insurance contract.
Types of contract
(i) Formal and informal contract: formal contract can be divided into contract under each and (b) contract of record.
A contract under seal:
This is carried out by affixing a seal on it. Also, by making an impression such as wax upon the paper, the contract this becomes contract under seal.
A contract can be called a contract of record: it is acknowledged before a proper court.
An informal contract: otherwise called simple contract can be oral or written but lack all the qualifies and evidences found in the formal contract.
(2) Oral and written contracts: Oral contract is contract entered into through the use of spoken words not written down, Oral contract has the same effect as the written one if only its evidence of terms is readily available. A written contract on the other hand is a contract documented down a written contract may be either formal or informal. The law requires certain documents like deeds to be accompanied by prescribed formalities in a written contract. Also in order to lend dignity and to establish clear - cut evidence of the intent of the parties to create an agreement, written contracts are required to be under oath and under seal.
(3) Expressed and implied contracts: A contract in which the parties involved have made Oral or written declarations of their intentions and of the terming of the transactions is known as an expressed contract. On the other hand, if the evidence of the agreement is not shown by words written or spoken but by the acts and conduct of the parties such as called an implied contract.
(4) Valid and voidable contracts and void agreement: These contracts are classified based on their enforceability or validity. An agreement with all the essential requirements that is binding and enforceable is known as a valid contract. On the other hand, an agreement may be binding and enforceable but may be rejected by one of the parties as a result of the circumstances surrounding its execution or the capacity of the other party, such a contract is called the voidable contract. E.g. an agreement which one of the parties signed under duress which he will avoid liability on the contract.
A void agreement is without legal effects because, it is usually incapable of enforcement e.g. an agreement contemplating to perform an act prohibited by law.
(5) Executed and executing contracts: These are contracts classified in terms of the extent to which they have been performed. If the contract has been completely performed or arrived out i.e. nothing remains to be done by either party, it is known as an executed contract. This types of contract may be executed or performed at once in future. A executing contract: on the other hand, is the one that has not been completely performed or carried out and in which something remains to be done.
(6) Bilateral and unilateral contract: A bilateral contract is one in which one promise is given in exchange for another. That is to say, if the offer or extends a promise and asks for a promise in return and if the offeree accepts the offer by making the promise. Each party in a bilateral contract is bound by the obligation to perform his promise, and there is said to be a mutuality of obligation.
Unilateral contract on the other hand, one promise is not given in exchange for another, only one party is obligated to perform after the contract has been made. In this type of contract therefore, it is only when something is done by the offeree that the offeror may agree to obligate himself. Since the offeree has performed all that is required of him when a unilateral contract arises, no mutuality of obligation exists e.g. if one loses his property and promise, to reward anyone who may find the lost property and if the property is found and returned to the offeror, his offer is accepted, a contract arises and the offeree has performed all that is required of him, therefore, no mutuality of obligations exists.
Assignment: (i) what is misrepresentation? (ii) state two types of misrepresentation.
(i) Difference between Law and business law (ii) major branches of Business law;
i) Law of contract
ii) Sale of goods
iii) Agency
iv) Hire purchase
outlines of Instructional Content:
i) Definitions of Law.
ii) Definition of Business law
iii) Branches of business law
iv) Measuring of a contract
v) The eight essential elements of a valid contract
vi) Parties to a contract
vii) Types of contract.
Behavioral objective: At the end of the lessons students should be able to understand the various types of contract and the essential elements of a valid contract.
Definition of law: Law can be defined as rules that society enforces to govern its people and to ensure its survival and smooth functioning.
Definition of business law: this refers to all the aspects of law that govern business transaction.
Branches of business law: There are four major branches of business law viz: Law of contract, sale of goods, agency, and hire purchase.
Meaning of Contract: A contract can be defined as an agreement between two or more persons which is intended by them to have legal consequences.
The Eight essential elements of a valid contract
(i) An offer and unqualified acceptance
(ii) An intention to create legal relations
(iii) Valuable consideration
iv) Contractual capacity of the parties
v) Genuiness of consent
vi) Legality of objects of the contract
vii) possibility of performance
viii) Certainty of terms.
a) Offer and acceptance:- in a valid contract, there must be an offer and
unqualified acceptance by the two parties.
b) Genuiness of consent:- for a contract to exist the consent of the parties
must be genuine. It must not be under dues, undue influence or
misrepresentation
c) Intention to create legal relations: it must be quite clear from the terms of
the agreement that the parties intended to create a legally binding
contract.
d) Valuable consideration:- Consideration can be defined as the price for
which a promise is bought. i.e. some elements of exchange which is
measurable in money's worth.
e) legality of objects of the contract:- the contract must be undertaken for
legal purpose. Any contract in which the objective is to commit crime or
civil wrong cannot be enforced by the court.
f) Contractual capacity of the parties:- Those entering into a contract must
have contractual capacity. An adult only or corporation can enter into a
valid contract while a minor (drunkard, underage and an insane person)
cannot enter into a contract.
The following contracts are binding on a minor (under 18) (a) the sales of goods act 1893 says that a minor must pay a reasonable price for the basic necessity sold and delivered. (b) Contract for the infants benefit e.g. education training.
g) Certainty of terms of contract:- The terms of the contract must be clearly
stated. A contract may contain two types of clauses namely; express and
implied terms.
h) Possibility of performance: The parties to a contract can enter into a
contract once they are sure that they can do the job. It must be possible
to carryout the contract.
- Promisor: This is the person who makes a promise in a contract
agreement.
- Promise: This is the person to whom a promise in a contract agreement is made to
- Obligator: This is a promisor whom a binding promise imposes a duty or obligation.
- Obligee: Obligee is the promise who can claim the benefit of the obligation.
- Landlord or Lessor: This is a arty in a contract who agrees that another will
occupy his house upon payment of an agreed amount for a given period of time.
- Tenant or Lessee: This is a party in a contract who agrees to pay an agreed amount in order to occupy the house of another party for a given period of time.
- Vendee: the party that offers to buy something in a sales contract.
- insurer: The party that agrees in an insurance contract to insure another persons objects.
- insured: The party whose object was insured in an insurance contract.
Types of contract
(i) Formal and informal contract: formal contract can be divided into contract under each and (b) contract of record.
A contract under seal:
This is carried out by affixing a seal on it. Also, by making an impression such as wax upon the paper, the contract this becomes contract under seal.
A contract can be called a contract of record: it is acknowledged before a proper court.
An informal contract: otherwise called simple contract can be oral or written but lack all the qualifies and evidences found in the formal contract.
(2) Oral and written contracts: Oral contract is contract entered into through the use of spoken words not written down, Oral contract has the same effect as the written one if only its evidence of terms is readily available. A written contract on the other hand is a contract documented down a written contract may be either formal or informal. The law requires certain documents like deeds to be accompanied by prescribed formalities in a written contract. Also in order to lend dignity and to establish clear - cut evidence of the intent of the parties to create an agreement, written contracts are required to be under oath and under seal.
(3) Expressed and implied contracts: A contract in which the parties involved have made Oral or written declarations of their intentions and of the terming of the transactions is known as an expressed contract. On the other hand, if the evidence of the agreement is not shown by words written or spoken but by the acts and conduct of the parties such as called an implied contract.
(4) Valid and voidable contracts and void agreement: These contracts are classified based on their enforceability or validity. An agreement with all the essential requirements that is binding and enforceable is known as a valid contract. On the other hand, an agreement may be binding and enforceable but may be rejected by one of the parties as a result of the circumstances surrounding its execution or the capacity of the other party, such a contract is called the voidable contract. E.g. an agreement which one of the parties signed under duress which he will avoid liability on the contract.
A void agreement is without legal effects because, it is usually incapable of enforcement e.g. an agreement contemplating to perform an act prohibited by law.
(5) Executed and executing contracts: These are contracts classified in terms of the extent to which they have been performed. If the contract has been completely performed or arrived out i.e. nothing remains to be done by either party, it is known as an executed contract. This types of contract may be executed or performed at once in future. A executing contract: on the other hand, is the one that has not been completely performed or carried out and in which something remains to be done.
(6) Bilateral and unilateral contract: A bilateral contract is one in which one promise is given in exchange for another. That is to say, if the offer or extends a promise and asks for a promise in return and if the offeree accepts the offer by making the promise. Each party in a bilateral contract is bound by the obligation to perform his promise, and there is said to be a mutuality of obligation.
Unilateral contract on the other hand, one promise is not given in exchange for another, only one party is obligated to perform after the contract has been made. In this type of contract therefore, it is only when something is done by the offeree that the offeror may agree to obligate himself. Since the offeree has performed all that is required of him when a unilateral contract arises, no mutuality of obligation exists e.g. if one loses his property and promise, to reward anyone who may find the lost property and if the property is found and returned to the offeror, his offer is accepted, a contract arises and the offeree has performed all that is required of him, therefore, no mutuality of obligations exists.
Assignment: (i) what is misrepresentation? (ii) state two types of misrepresentation.
WEEK 2
Topic: Business law
Aim/General Purpose: To teach students the following;
1. terminologies used in contract
2. termination of contract
3. definition of contract of sale of good
4. revision of the sale of goods act 1893
5. terminologies used in the contract of sale of goods.
Outlines of instructional Content:
1. various terminologies used in contract
2. various ways in which contract can be terminated
3. definition of contract of sale of good
4. revision of the sale of goods act 1893
5. various terminologies used in the contract of sale of goods.
Behavioral Objective: At the end of the lesson, student should be able to explain the termination of a contract and the contract of the sales of goods.
Previous knowledge: Student have been able to explain the meaning of the contract and the essential elements of a valid contract.
Audio visual Materials: Charts and illustration
Colour personality: Blue, Green, Orange, and Gold. Both written and oral questions. Group studies and assignment will be used to impart to students.
Instructional Procedures/Teaching Learning Activities.
Step I terminologies used in contract
i) counter offer:- This refers to an offer which is made after the original offer. This implies that the new offer automatically rejects the original offer.
ii) tender: A tender is an estimate submitted in response to a prior request. It does not amount to an offer.
iii) Conveyance: A conveyance is the document which transfer the title of unregistered land.
iv) Quantum merit: It means “as much as you deserve”
v) Quasi contract: This occurs when the law imposes obligations of a contractual nature even when no true agreement exists between the parties.
vi) Privity of contract: This is the relationship that exists between parties to contract.
vii) Ex post fasto warranties: This refers to conditions of a contract turned into warranties.
viii) Auction: In auction sales bids are made by prospective buyers and the commodity would be sold to the person making the highest bid.
ix) Invitation of threat: This is an invitation to another person to make an offer. it is not an offer therefore cannot be accepted.
x) ultra vires: simply put as (beyond its power). A registered company can only give contracts readily written the memorandum of association. Therefore any contract which is ultra vires is void.
xi) Damages: This is compensation awarded by a court of law to a plaintiff who ahs suffered loss as a result of an act of defendant.
Step II termination of Contract: A contract can be discharge or brought to an end in the following ways: (i) By Performance: The general rule is that when both parties have performed their obligations or duties, the contract can come to an end.
(2) By breach: A contract can be discharged when one of the parties failed
to perform his own part of the contract.
(3) By voluntary agreement of the parties: A contract can come to an end
when both parties agree to release each other from contractual
obligations. It can be bilateral or unilateral.
(4) By frustration: A contract can be discharged when the subject matter or
basis of the contract has been destroyed or frustrated by an act of God
e.g. flood, war etc.
(5) By lapse of time: A contract can be brought to end when the period fixed
for the agreement comes to an end.
(6) Death or insanity of the party: The death or insanity of one of the parties
will automatically bring a contract to an end.
7) Bankrupt:- A contract can be brought to an and when either of the parties
is bankrupt.
8) illegality of Object: If the subject matter is illegal e.g. prostitution. The
contract can be terminated.
STEP III Remedies for Breach of Contract: The injured parties can sue for:
1. Damages: The injured party has a right to sue and claim damages.
2. Action for an agreed sum: The innocent party may sue for an agreed sum of money.
3. Quantum merit: (As much as he Deserves): Under this remedy, the plaintiff will be awarded as much as is earned.
4. Injunction: This is a discretionary court orders which may be prohibitory or mandatory.
5. Rescission: In granting rescission, the court must be satisfied that it is possible to restore the parties to their pre-contractual positions.
STEP IV: CONTRACT OF SALE OF GOODS
Definition: The sales of goods Act 1893 defines sale of goods as: “A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called “the price”. The sale of goods is governed by the law of contract. The seller is called vendor o transfer while the buyer is called transferee or vendee
PROVISION OF THE SALE OF GOODS ACT 1893
Duties of a seller:
1. Right to sale: The seller has a right to pass a good title. It is an
implied condition that he ha a right to sell the goods.
2. Merchantable quality goods: The goods sold are to be of merchantable quality.
3. Goods must correspond with description: Where goods are sold by description, there is an implied condition that the goods will correspond with the description.
4. Enjoyment of quiet possession by the buyer: The buyer shall enjoy quiet possession of the goods and the goods should be free from any encumbrance not known to the buyer.
5. Bulk must correspond with samples: Where goods are sold by sample, the bulk must correspond with sample and buyer must opportunity of comparing bulk with sample.
6. Fitness for purpose: The goods supplied are reasonably fit to the purpose for which it was meant.
7. Delivery and Acceptance: It is the duty of the seller to deliver the goods and of the buyer to accept and pay in accordance with the terms of agreement.
STEP V: Condition that constitute acceptance: A buyer is deemed to have
accepted the goods under the following conditions.
1. When he signifies his approval or acceptance to the seller.
2. When he does any other act adopting the transaction.
3. If he retains the goods without giving notices of rejection within a reasonable time.
4. When he does something inconsistent with the title of the seller.
STEP VI: remedies for the seller: the act confers rights on the unpaid seller namely;
1. He has lien on the goods for the price when he is in possession of them.
2. He has the right to resale as limited by the Act.
3. If the buyer becomes insolvent, he has a right to stop the goods in transit
after he has parted with possession.
4. The seller can maintain an action for the price.
5. He can sue for damages for non-acceptance of the goods.
Remedies for the Buyer:
1. The buyer can sue for damages for none delivery of the goods.
2 The buyer can sue for specific performance.
3. He may maintain an action conversion.
4. When there is a breach of warranty (subsidiary minor terms), the buyer
can set up a claim against the seller (supplier)
STEP VII: Terminologies Associated with Contract of Sale:
Lien: A lien is the right to retain possession of goods (but not to sell until the
contract price has been paid).
Stoppage in Transit: This refers to the right to stop the goods and retake possession.
Unpaid Seller: A seller of goods been paid.
Contract of bailment: This is the temporary transfer of property, including cash from the owner (bailor) to some other person (bailee) to be employed for a specific purpose.
Gifts: A gift is a transfer of property without any consideration attached. It is not binding but executory.
Contract of skill and labour: If the main purpose is not for the sale of goods but provision of labour, the contract of sales act does not apply.
Agreement to sell: This is executor with ownership being transferred at later date.
Assignment/Evaluation: Students to explain the following: (a) differentiate between warranty and condition (b) explain two conditions that constitute acceptance in the contract of sale of goods.
Aim/General Purpose: To teach students the following;
1. terminologies used in contract
2. termination of contract
3. definition of contract of sale of good
4. revision of the sale of goods act 1893
5. terminologies used in the contract of sale of goods.
Outlines of instructional Content:
1. various terminologies used in contract
2. various ways in which contract can be terminated
3. definition of contract of sale of good
4. revision of the sale of goods act 1893
5. various terminologies used in the contract of sale of goods.
Behavioral Objective: At the end of the lesson, student should be able to explain the termination of a contract and the contract of the sales of goods.
Previous knowledge: Student have been able to explain the meaning of the contract and the essential elements of a valid contract.
Audio visual Materials: Charts and illustration
Colour personality: Blue, Green, Orange, and Gold. Both written and oral questions. Group studies and assignment will be used to impart to students.
Instructional Procedures/Teaching Learning Activities.
Step I terminologies used in contract
i) counter offer:- This refers to an offer which is made after the original offer. This implies that the new offer automatically rejects the original offer.
ii) tender: A tender is an estimate submitted in response to a prior request. It does not amount to an offer.
iii) Conveyance: A conveyance is the document which transfer the title of unregistered land.
iv) Quantum merit: It means “as much as you deserve”
v) Quasi contract: This occurs when the law imposes obligations of a contractual nature even when no true agreement exists between the parties.
vi) Privity of contract: This is the relationship that exists between parties to contract.
vii) Ex post fasto warranties: This refers to conditions of a contract turned into warranties.
viii) Auction: In auction sales bids are made by prospective buyers and the commodity would be sold to the person making the highest bid.
ix) Invitation of threat: This is an invitation to another person to make an offer. it is not an offer therefore cannot be accepted.
x) ultra vires: simply put as (beyond its power). A registered company can only give contracts readily written the memorandum of association. Therefore any contract which is ultra vires is void.
xi) Damages: This is compensation awarded by a court of law to a plaintiff who ahs suffered loss as a result of an act of defendant.
Step II termination of Contract: A contract can be discharge or brought to an end in the following ways: (i) By Performance: The general rule is that when both parties have performed their obligations or duties, the contract can come to an end.
(2) By breach: A contract can be discharged when one of the parties failed
to perform his own part of the contract.
(3) By voluntary agreement of the parties: A contract can come to an end
when both parties agree to release each other from contractual
obligations. It can be bilateral or unilateral.
(4) By frustration: A contract can be discharged when the subject matter or
basis of the contract has been destroyed or frustrated by an act of God
e.g. flood, war etc.
(5) By lapse of time: A contract can be brought to end when the period fixed
for the agreement comes to an end.
(6) Death or insanity of the party: The death or insanity of one of the parties
will automatically bring a contract to an end.
7) Bankrupt:- A contract can be brought to an and when either of the parties
is bankrupt.
8) illegality of Object: If the subject matter is illegal e.g. prostitution. The
contract can be terminated.
STEP III Remedies for Breach of Contract: The injured parties can sue for:
1. Damages: The injured party has a right to sue and claim damages.
2. Action for an agreed sum: The innocent party may sue for an agreed sum of money.
3. Quantum merit: (As much as he Deserves): Under this remedy, the plaintiff will be awarded as much as is earned.
4. Injunction: This is a discretionary court orders which may be prohibitory or mandatory.
5. Rescission: In granting rescission, the court must be satisfied that it is possible to restore the parties to their pre-contractual positions.
STEP IV: CONTRACT OF SALE OF GOODS
Definition: The sales of goods Act 1893 defines sale of goods as: “A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called “the price”. The sale of goods is governed by the law of contract. The seller is called vendor o transfer while the buyer is called transferee or vendee
PROVISION OF THE SALE OF GOODS ACT 1893
Duties of a seller:
1. Right to sale: The seller has a right to pass a good title. It is an
implied condition that he ha a right to sell the goods.
2. Merchantable quality goods: The goods sold are to be of merchantable quality.
3. Goods must correspond with description: Where goods are sold by description, there is an implied condition that the goods will correspond with the description.
4. Enjoyment of quiet possession by the buyer: The buyer shall enjoy quiet possession of the goods and the goods should be free from any encumbrance not known to the buyer.
5. Bulk must correspond with samples: Where goods are sold by sample, the bulk must correspond with sample and buyer must opportunity of comparing bulk with sample.
6. Fitness for purpose: The goods supplied are reasonably fit to the purpose for which it was meant.
7. Delivery and Acceptance: It is the duty of the seller to deliver the goods and of the buyer to accept and pay in accordance with the terms of agreement.
STEP V: Condition that constitute acceptance: A buyer is deemed to have
accepted the goods under the following conditions.
1. When he signifies his approval or acceptance to the seller.
2. When he does any other act adopting the transaction.
3. If he retains the goods without giving notices of rejection within a reasonable time.
4. When he does something inconsistent with the title of the seller.
STEP VI: remedies for the seller: the act confers rights on the unpaid seller namely;
1. He has lien on the goods for the price when he is in possession of them.
2. He has the right to resale as limited by the Act.
3. If the buyer becomes insolvent, he has a right to stop the goods in transit
after he has parted with possession.
4. The seller can maintain an action for the price.
5. He can sue for damages for non-acceptance of the goods.
Remedies for the Buyer:
1. The buyer can sue for damages for none delivery of the goods.
2 The buyer can sue for specific performance.
3. He may maintain an action conversion.
4. When there is a breach of warranty (subsidiary minor terms), the buyer
can set up a claim against the seller (supplier)
STEP VII: Terminologies Associated with Contract of Sale:
Lien: A lien is the right to retain possession of goods (but not to sell until the
contract price has been paid).
Stoppage in Transit: This refers to the right to stop the goods and retake possession.
Unpaid Seller: A seller of goods been paid.
Contract of bailment: This is the temporary transfer of property, including cash from the owner (bailor) to some other person (bailee) to be employed for a specific purpose.
Gifts: A gift is a transfer of property without any consideration attached. It is not binding but executory.
Contract of skill and labour: If the main purpose is not for the sale of goods but provision of labour, the contract of sales act does not apply.
Agreement to sell: This is executor with ownership being transferred at later date.
Assignment/Evaluation: Students to explain the following: (a) differentiate between warranty and condition (b) explain two conditions that constitute acceptance in the contract of sale of goods.
WEEK 3
Topic: Contract of Agency
- Definition of Agency
- Agent and Duties of an Agent and Rights of an Agent and opportunity.
- Principal and Duties of the principals and Rights of the Principal
- termination of Agency
- Types of Agents.
Behavioral objective: At the end of lesson, students should be able to explain the contract of Agency.
Definition of Agency: An agency can be defined as a legal relationship that exist between two parties, when one called the agent is employed by another called the principal to bring the principal into a legal relationship with the third party.
Who is an Agent? An agent is a person who is given the authority by the principal to enter into a contract on his behalf to bring him to a legal relationship with the third party.
Duties of an Agent:
1. To perform his work according to their terms of agreement.
2. To keep proper book of account on behalf of his principal
3. To carry out his duties within the authority delegated to him
4. The agent must carry out his duties with all amount of caution, steady
effort and showing care.
5. The agent must at all times keep his principal informed.
6. To present statement of accounts to his principal at stated periods.
7. To carry out his duties within the authority delegated to him in person
without delegating them to another person unless with the consent of his
principal.
8. The agent has no right to make secret profit at the expense of his
principal.
9. The agent should not allow his personal interest to conflict with his
principal's interest.
10. Not to convert the property of his principal allocated to him to enable
him carry out his duties to his personal use.
11. To keep his principal's secret from his competitions.
Appointment of Agents: Agent can be appointed in the following ways:
(i) By Necessity: when an emergency situation arises especially when one is in possession of another person's property has to do something to
preserve the property, then we have agency by necessity.
(ii) By Ratification: This arises when the principal ratifies or approves the actions of a person having no authority to act as his agent.
(iii) By implication: An agent can be appointed implied where the principal, without expressly conferring authority on him, places him in a situation in which it is understood by them that he can acts on behalf of the principal e.g. partnership auctioneer.
(iv) This arises when somebody by conduct or words allows another party to believe that somebody is acting as his authorized agent even where no agency was intended. He will be stopped from denying the agency if the other party rely on such representation.
(v) Expressly: This arises when an agent is appointed verbally or in writing by the principal. The agent can now enter into contract on behalf of the principal.
Rights of an Agent:
a) A right of lien (right to retain possession)
b) Stoppage in transit of goods to the principal of the purchase price.
c) Right to receive commission or remuneration
d) To be indemnified for losses during the course of the agency.
e) Right to be reimbursed for any expenses incurred on behalf of the principal.
STEP II Who is a principal? A principal is the person who employ another person called agent to act on his behalf. A principal contracting through an agent must have contractual capacity.
Duties of a principal:
(i) To pay the agent as at when due, the agreed commission.
(ii) The principal must pay the agent all approved expenses he incurred in
the course of carrying out his duties.
(iii) To make all necessary facilities available to the agent in order to enable
him carry out his duties effecting.
(iv) Not to constitute a stumbling bock on the way of the agent while
carrying out his legitimate duties.
(v) The principal must abide by the terms of their contract.
(vi) The principal is obliged to accept responsibility of all actions the agent
takes on his behalf.
Rights of the principal:
The principal can sue the third party for damages
The principal can sue the agent for default
He can recover any secret profit form the agent
He can summarily dismiss the agent
He can refuse to pay the agent his agreed commission.
Types of Agent
Universal Agent: This is an agent who has unrestricted authority to enter into a contract on behalf of the principal. This kind of agent is appointed by a deed known as POWER OF ATTORNEY.
General Agent: This agent has the authority to act on behalf of his principal in all matters pertaining to a particular business e.g. Accountant and Manager.
Special Agent: This is an agent appointed for a particular purposes, normally not part of his normal business activities, and is therefore given only limited powers.
Del-Credere Agent:
He takes possession of the goods
He can sell in his own name
He undertakes to indemnify his principal agents any loss
He receives higher commission called, del-credere commission
Commission Agent: This is a merchant who buys and sells goods on commission. This agent usually exercises physical control over and negotiates the sale of the goods which are handled by him.
Factor Agent: Factor Agent is employed to sell goods delivered to him by the principal for a commission. He has possession of the goods and can sell in his own name.
Broker: This is an agent who brings the principal into a contractual relationship to buy or sell goods or services with the third party. He links the principal with the third party and receives commission termed BROKEAGE.
Auctioneers: These are agents authorized or empowered by the law to sell goods for their principal at a public auction to the highest bidder.
Advertising Agent: These are agents whose roles include assisting the firm in planning and executing them advertising programmes ranging from advertising strategies, creation of advertising copy, supervision of advertising production to buying of air time and media space.
Manufacturers Agents:- These are representatives or firms chosen by a manufacturer to market its goods in a certain area for a commission.
Shipping and Forwarding Agents: They act on behalf of the principal to clear and receive goods from the seaports or airports. The agents will arrange for the delivery of the goods to a particular place through the air, sea or land.
TERMINATION OF AGENCY:
An agency can be terminated on the following grounds:
i. By Frustrated: Agency can be terminated when the subject matter of the agency has been destroyed or frustrated, and for which neither party is responsible.
ii. By Performance: An agency can be terminated when the principal and agent have performed their duties and obligations.
iii. By breach: The principal or agent can breach the terms of agreement, hence the agency is automatically terminated in such a situation.
iv. By Agreement: The principal an agent can agree to bring the agency to an end i.e. the parties may at any time mutually agree to terminate the agency.
v. Death of the principal or agent: When any of them dies, the agency is automatically brought to an end.
vi. By Completion of the Agency: The agency can core to an end when the period fixed for the agreement has expired.
vii. Bankruptcy: Where the principal is bankrupt, the agency agreement will automatically come to an end.
viii. by operation of law: if the law of a country can render a trade or service illegal. In such a situation, any agency agreement with respect to such trade is terminated.
ix. insanity of the parties: Agency can be brought to an end if any of the parties has mental disability.
Evaluation/Assignment: (i) Differentiate between a factor and a broker (ii) what are the factors that can bring agency to an end? (iii) state and explain five ways by which agency can be crated.
- Definition of Agency
- Agent and Duties of an Agent and Rights of an Agent and opportunity.
- Principal and Duties of the principals and Rights of the Principal
- termination of Agency
- Types of Agents.
Behavioral objective: At the end of lesson, students should be able to explain the contract of Agency.
Definition of Agency: An agency can be defined as a legal relationship that exist between two parties, when one called the agent is employed by another called the principal to bring the principal into a legal relationship with the third party.
Who is an Agent? An agent is a person who is given the authority by the principal to enter into a contract on his behalf to bring him to a legal relationship with the third party.
Duties of an Agent:
1. To perform his work according to their terms of agreement.
2. To keep proper book of account on behalf of his principal
3. To carry out his duties within the authority delegated to him
4. The agent must carry out his duties with all amount of caution, steady
effort and showing care.
5. The agent must at all times keep his principal informed.
6. To present statement of accounts to his principal at stated periods.
7. To carry out his duties within the authority delegated to him in person
without delegating them to another person unless with the consent of his
principal.
8. The agent has no right to make secret profit at the expense of his
principal.
9. The agent should not allow his personal interest to conflict with his
principal's interest.
10. Not to convert the property of his principal allocated to him to enable
him carry out his duties to his personal use.
11. To keep his principal's secret from his competitions.
Appointment of Agents: Agent can be appointed in the following ways:
(i) By Necessity: when an emergency situation arises especially when one is in possession of another person's property has to do something to
preserve the property, then we have agency by necessity.
(ii) By Ratification: This arises when the principal ratifies or approves the actions of a person having no authority to act as his agent.
(iii) By implication: An agent can be appointed implied where the principal, without expressly conferring authority on him, places him in a situation in which it is understood by them that he can acts on behalf of the principal e.g. partnership auctioneer.
(iv) This arises when somebody by conduct or words allows another party to believe that somebody is acting as his authorized agent even where no agency was intended. He will be stopped from denying the agency if the other party rely on such representation.
(v) Expressly: This arises when an agent is appointed verbally or in writing by the principal. The agent can now enter into contract on behalf of the principal.
Rights of an Agent:
a) A right of lien (right to retain possession)
b) Stoppage in transit of goods to the principal of the purchase price.
c) Right to receive commission or remuneration
d) To be indemnified for losses during the course of the agency.
e) Right to be reimbursed for any expenses incurred on behalf of the principal.
STEP II Who is a principal? A principal is the person who employ another person called agent to act on his behalf. A principal contracting through an agent must have contractual capacity.
Duties of a principal:
(i) To pay the agent as at when due, the agreed commission.
(ii) The principal must pay the agent all approved expenses he incurred in
the course of carrying out his duties.
(iii) To make all necessary facilities available to the agent in order to enable
him carry out his duties effecting.
(iv) Not to constitute a stumbling bock on the way of the agent while
carrying out his legitimate duties.
(v) The principal must abide by the terms of their contract.
(vi) The principal is obliged to accept responsibility of all actions the agent
takes on his behalf.
Rights of the principal:
The principal can sue the third party for damages
The principal can sue the agent for default
He can recover any secret profit form the agent
He can summarily dismiss the agent
He can refuse to pay the agent his agreed commission.
Types of Agent
Universal Agent: This is an agent who has unrestricted authority to enter into a contract on behalf of the principal. This kind of agent is appointed by a deed known as POWER OF ATTORNEY.
General Agent: This agent has the authority to act on behalf of his principal in all matters pertaining to a particular business e.g. Accountant and Manager.
Special Agent: This is an agent appointed for a particular purposes, normally not part of his normal business activities, and is therefore given only limited powers.
Del-Credere Agent:
He takes possession of the goods
He can sell in his own name
He undertakes to indemnify his principal agents any loss
He receives higher commission called, del-credere commission
Commission Agent: This is a merchant who buys and sells goods on commission. This agent usually exercises physical control over and negotiates the sale of the goods which are handled by him.
Factor Agent: Factor Agent is employed to sell goods delivered to him by the principal for a commission. He has possession of the goods and can sell in his own name.
Broker: This is an agent who brings the principal into a contractual relationship to buy or sell goods or services with the third party. He links the principal with the third party and receives commission termed BROKEAGE.
Auctioneers: These are agents authorized or empowered by the law to sell goods for their principal at a public auction to the highest bidder.
Advertising Agent: These are agents whose roles include assisting the firm in planning and executing them advertising programmes ranging from advertising strategies, creation of advertising copy, supervision of advertising production to buying of air time and media space.
Manufacturers Agents:- These are representatives or firms chosen by a manufacturer to market its goods in a certain area for a commission.
Shipping and Forwarding Agents: They act on behalf of the principal to clear and receive goods from the seaports or airports. The agents will arrange for the delivery of the goods to a particular place through the air, sea or land.
TERMINATION OF AGENCY:
An agency can be terminated on the following grounds:
i. By Frustrated: Agency can be terminated when the subject matter of the agency has been destroyed or frustrated, and for which neither party is responsible.
ii. By Performance: An agency can be terminated when the principal and agent have performed their duties and obligations.
iii. By breach: The principal or agent can breach the terms of agreement, hence the agency is automatically terminated in such a situation.
iv. By Agreement: The principal an agent can agree to bring the agency to an end i.e. the parties may at any time mutually agree to terminate the agency.
v. Death of the principal or agent: When any of them dies, the agency is automatically brought to an end.
vi. By Completion of the Agency: The agency can core to an end when the period fixed for the agreement has expired.
vii. Bankruptcy: Where the principal is bankrupt, the agency agreement will automatically come to an end.
viii. by operation of law: if the law of a country can render a trade or service illegal. In such a situation, any agency agreement with respect to such trade is terminated.
ix. insanity of the parties: Agency can be brought to an end if any of the parties has mental disability.
Evaluation/Assignment: (i) Differentiate between a factor and a broker (ii) what are the factors that can bring agency to an end? (iii) state and explain five ways by which agency can be crated.
WEEK 4
Topic: Business - law: Hire purchase and Employment
Outlines of Instructional content:
Definition of hire purchase
Methods of effective hire purchase
Advantages to the seller
Disadvantages to the seller
Advantages to the buyer
Disadvantages to the buyer
Definition of Contract of Employment
Duties of the employer/rights of the employer
Duties of the employee/rights of the employee
Behavioral Objective: At the end of the lesson, students should be able to explain the difference between contract of hire purchase and contract of employment.
Definition of hire purchase contract: This is a contract of installment payment whereby the seller allows the buyer to take possession of the product on hire basis after making initial deposit. Under this system, the goods are under hire with the hire having the intention of buying the goods by paying for them installment. The goods will continue to be under hire and will not belong to the buyer until he pays the final instalment.
Methods of effecting hire purchase
Hire purchase agreement can be reached through the following ways:
(a) Private agreement: In this case, the seller agrees with the buyer to sell the goods under hire purchase to the buyer.
(b) Multi-lateral agreement: Under this, four parties are involved and they include the seller, a finance company, the buyer and his accredited guarantor. Under this system, a finance company that deals in hire purchase buys the goods from the seller and pays cash and then sells the goods under hire purchase to the buyer who must provide an accredited guarantor. If the buyer and subsequently his guarantor default in making all the payments, the seller will repossess the goods. The seller will have to sell the goods, and if he fails to realize the amount remaining before the buyer defaults, the buyer will be called upon to pay the balance and the same happens in the private agreement.
Advantages of hire purchase to the seller:
It enables the seller to sell more goods
The seller increases his selling price as a result of hire purchase.
Increase of selling price leads to increase in profit
The debt can never be turned into bad debt since the goods serves as
security which the seller can repossess if the buyer defaults.
Increase in demand for goods will lead to mass production.
Hire purchase leads to job security since what is produced is
demanded by the people.
Disadvantages of hire purchase of the seller:
Hire purchase has down a lot of sellers capital
Attempt to repossess the goods may lead to squabbles
It may creates bad debts to the seller
The seller may find it difficult to re-sell the goods if they are reposed,
because of peoples negatives attitude to second hand products.
It may lead to court case thereby disturbing the business of the seller.
The buyer can abscond with the goods especially if it was private agreement they reached.
Advantages of hire purchase to the buyer:
It makes the buyer to get and enjoy a product he has got the full money to buy.
The seller renders more after-sale service to goods purchased under hire purchase.
It forces buyers to save money in order to own durable goods.
Hire purchase encourages prudent spending on the part of the buyer in order to meet up with the payment of final installment.
It leads to improvement in standard of living of the people because it makes more goods available to them.
Poor buyers benefit more by getting durable goods they may not afford with immediate cash.
Disadvantages of hire purchase to the buyer.
He pays more than he would have paid in cash purchase.
It entices the buyer to buy goods beyond his means.
Hire purchase makes the buyer to fall in great debt which may linger on for a very long time.
The buyer will bear the brunt if the goods are damaged or stolen even before the completion of payments.
Since the ownership belongs to the seller until the final installments, the buyer may lose the goods and any installment paid to the seller as a result of his inability to make the final payment.
The buyer may be given inferior product since he is not paying cash immediately.
Since string is attached to hire purchase, it does not create favourable climate for the buyer to negotiate for better condition of sales .
It reduces the scope of choice of the buyer since not all sellers sell on hire purchase.
Contract of Employment: The contract of employment is between the employer and the employee. The employer is somebody or an institution that hires or provides work for another person called, employee for an agreed remuneration. The employee is accountable to his employer. The employer can hire anybody he pleases and relieve any of his employees of work if he misbehaves contrary to the laid down rules and regulations.
Duties of the Employer:
1. The employer has a duty to pay his employees remuneration according to the terms of the contract.
2. He must provide a very safe place for his workers in order to carry out duties assigned to them without fear of injury.
3. He must provide all necessary tools and equipment for prayer execution of his employers duties.
4. The employer must indemnify his employee against any loss arising from the proper performance of his duties.
5. He must accept responsibility for personal injury sustained by an employee during the course of carrying out his obligation.
6. The employer must provide training facilities as well as incentives to motivate his employee in order to increase productivity.
7. the employer must provide adequate job security for his employee by assuring him that his employment is permanent.
Right of the Employer
He has every right to make use of anything invented by the employee with his facilities and more especially during the working period.
The employer has right to fix wages and salaries of his employee
He can terminate the appointment of his employee after giving due notice.
The employer has the right to hire whoever he pleases without being
questioned.
Duties of the Employee
The employee must perform all his duties and obligations according to the terms stated in the contract.
He must not under any circumstances reveal confidential and secret information regarding the employment trade.
He must obey orders and instructions from his employer in respect of the work assigned to him.
The employee must serve faithfully and honestly. His own interest must not conflict with the interest of his employer.
The employee has a duty to act in good faith when discharging his duties for the benefits of the employer.
He must be accountable to his employer for the discharge of his responsibilities, proper account must be kept.
He is not to delegate the performance of his duties to another person without the authority of the employer.
The employee is under obligation not to accept bribe and not to use his employer's equipment for secret profit.
Right of the Employee:
The employee has a right to receive compensation for liability or loss suffered in the course of business.
He has the right to either reject or accept offer of employment.
He must receive his agreed remuneration. He must be paid wages or salaries for performing his duties.
He must be given annual leave to rest once in a year.
Evaluation/Assignment: (i) Who is an employer? (ii) Who is an employee? (iii) Describe four obligations of the employer to employee (iv) state four duties of the employee to the employer.
Outlines of Instructional content:
Definition of hire purchase
Methods of effective hire purchase
Advantages to the seller
Disadvantages to the seller
Advantages to the buyer
Disadvantages to the buyer
Definition of Contract of Employment
Duties of the employer/rights of the employer
Duties of the employee/rights of the employee
Behavioral Objective: At the end of the lesson, students should be able to explain the difference between contract of hire purchase and contract of employment.
Definition of hire purchase contract: This is a contract of installment payment whereby the seller allows the buyer to take possession of the product on hire basis after making initial deposit. Under this system, the goods are under hire with the hire having the intention of buying the goods by paying for them installment. The goods will continue to be under hire and will not belong to the buyer until he pays the final instalment.
Methods of effecting hire purchase
Hire purchase agreement can be reached through the following ways:
(a) Private agreement: In this case, the seller agrees with the buyer to sell the goods under hire purchase to the buyer.
(b) Multi-lateral agreement: Under this, four parties are involved and they include the seller, a finance company, the buyer and his accredited guarantor. Under this system, a finance company that deals in hire purchase buys the goods from the seller and pays cash and then sells the goods under hire purchase to the buyer who must provide an accredited guarantor. If the buyer and subsequently his guarantor default in making all the payments, the seller will repossess the goods. The seller will have to sell the goods, and if he fails to realize the amount remaining before the buyer defaults, the buyer will be called upon to pay the balance and the same happens in the private agreement.
Advantages of hire purchase to the seller:
It enables the seller to sell more goods
The seller increases his selling price as a result of hire purchase.
Increase of selling price leads to increase in profit
The debt can never be turned into bad debt since the goods serves as
security which the seller can repossess if the buyer defaults.
Increase in demand for goods will lead to mass production.
Hire purchase leads to job security since what is produced is
demanded by the people.
Disadvantages of hire purchase of the seller:
Hire purchase has down a lot of sellers capital
Attempt to repossess the goods may lead to squabbles
It may creates bad debts to the seller
The seller may find it difficult to re-sell the goods if they are reposed,
because of peoples negatives attitude to second hand products.
It may lead to court case thereby disturbing the business of the seller.
The buyer can abscond with the goods especially if it was private agreement they reached.
Advantages of hire purchase to the buyer:
It makes the buyer to get and enjoy a product he has got the full money to buy.
The seller renders more after-sale service to goods purchased under hire purchase.
It forces buyers to save money in order to own durable goods.
Hire purchase encourages prudent spending on the part of the buyer in order to meet up with the payment of final installment.
It leads to improvement in standard of living of the people because it makes more goods available to them.
Poor buyers benefit more by getting durable goods they may not afford with immediate cash.
Disadvantages of hire purchase to the buyer.
He pays more than he would have paid in cash purchase.
It entices the buyer to buy goods beyond his means.
Hire purchase makes the buyer to fall in great debt which may linger on for a very long time.
The buyer will bear the brunt if the goods are damaged or stolen even before the completion of payments.
Since the ownership belongs to the seller until the final installments, the buyer may lose the goods and any installment paid to the seller as a result of his inability to make the final payment.
The buyer may be given inferior product since he is not paying cash immediately.
Since string is attached to hire purchase, it does not create favourable climate for the buyer to negotiate for better condition of sales .
It reduces the scope of choice of the buyer since not all sellers sell on hire purchase.
Contract of Employment: The contract of employment is between the employer and the employee. The employer is somebody or an institution that hires or provides work for another person called, employee for an agreed remuneration. The employee is accountable to his employer. The employer can hire anybody he pleases and relieve any of his employees of work if he misbehaves contrary to the laid down rules and regulations.
Duties of the Employer:
1. The employer has a duty to pay his employees remuneration according to the terms of the contract.
2. He must provide a very safe place for his workers in order to carry out duties assigned to them without fear of injury.
3. He must provide all necessary tools and equipment for prayer execution of his employers duties.
4. The employer must indemnify his employee against any loss arising from the proper performance of his duties.
5. He must accept responsibility for personal injury sustained by an employee during the course of carrying out his obligation.
6. The employer must provide training facilities as well as incentives to motivate his employee in order to increase productivity.
7. the employer must provide adequate job security for his employee by assuring him that his employment is permanent.
Right of the Employer
He has every right to make use of anything invented by the employee with his facilities and more especially during the working period.
The employer has right to fix wages and salaries of his employee
He can terminate the appointment of his employee after giving due notice.
The employer has the right to hire whoever he pleases without being
questioned.
Duties of the Employee
The employee must perform all his duties and obligations according to the terms stated in the contract.
He must not under any circumstances reveal confidential and secret information regarding the employment trade.
He must obey orders and instructions from his employer in respect of the work assigned to him.
The employee must serve faithfully and honestly. His own interest must not conflict with the interest of his employer.
The employee has a duty to act in good faith when discharging his duties for the benefits of the employer.
He must be accountable to his employer for the discharge of his responsibilities, proper account must be kept.
He is not to delegate the performance of his duties to another person without the authority of the employer.
The employee is under obligation not to accept bribe and not to use his employer's equipment for secret profit.
Right of the Employee:
The employee has a right to receive compensation for liability or loss suffered in the course of business.
He has the right to either reject or accept offer of employment.
He must receive his agreed remuneration. He must be paid wages or salaries for performing his duties.
He must be given annual leave to rest once in a year.
Evaluation/Assignment: (i) Who is an employer? (ii) Who is an employee? (iii) Describe four obligations of the employer to employee (iv) state four duties of the employee to the employer.
WEEK 5
Topic: Govt. regulation of Business
Outlines of Instructional contents:
Why govt. needs to regulate business
Methods of govt. regulation of business
Behavioral objective: At the end of lesson, students should be able to explain the various ways in which govt. regulates businesses.
Why Government needs to regulate businesses:
The govt. lays down certain rules and regulation that will help to control and regulate business activities in a country. There is need to ensure uniformity in commercial policies and to regulate business activities so as to encourage smooth operations because of the inhernt infricacies and complexities in the commercial world.
Reasons for government regulation of Business
To ensure uniformity in commercial and economic policies
To ensure industrial harmony between the employers and workers.
To ensure provision of question products.
To ensure the development of the economy
To raise revenue through tax imposition for certain purposes e.g. educational tax, value added tax etc.
Methods of government regulation of Business
Ownership of business can be regulated through some policies like indigenization, commercialization and privatization.
Business are also mandated to introduce measures to dispose their waste in such a way that there will be no environmental pollution.
Another way is to ensure that goods offered for consumption are safe and of high quality.
All business enterprises are mandated to use standard weights and measures for the product offered for sale. E.g. in soft drinks industry are 25cl, 30cl, 35cl, etc.
Under the coy Act, all business must be registered either as sole trading, partnership, public coy or cooperative. It is mandatory for all business enterprises to be registered with the corporate affairs commission (C.A.C.) before commencing operation. A certificate of incorporation will be issued to any business incorporated.
Govt. grants an exclusive right to a person to make use or sell an invention for a certain period of years. This gives he owner some degree of monopoly of the invention. Nobody can make use of such invention without permission from the right owner. This encourages innovation and allows the inventor to recoup his research cost.
Govt. allows a product differentiation mark; once a producer has registered a trade mark, any infringement will attract the wrath of the law. E.g. Jik, parozone trade marks for clearing materials.
An exclusive or sole right may be granted to writers of literary works (authors), musicians and artist by the govt. to produce his work for a specified period of time. Another person cannot reproduce such work without a written permission form the copyright owner. Literary copyright will last 50 years after the death of the author while musical right will only last for 50yrs after its realize.
Govt. can also control and regulates biz by giving approval for the location of a biz enterprises by establishing industrial estate.
Public liability coys are mandated to publish their annual accounts for public consumption. This is to prevent fraudulent practices.
Business can also be regulated by introducing tax on the profit of some business enterprises while poor coys may have their tax reduced through concession in order to encourage them.
Evaluation/Assignment:- Explain four ways by which govt. regulates biz.
Outlines of Instructional contents:
Why govt. needs to regulate business
Methods of govt. regulation of business
Behavioral objective: At the end of lesson, students should be able to explain the various ways in which govt. regulates businesses.
Why Government needs to regulate businesses:
The govt. lays down certain rules and regulation that will help to control and regulate business activities in a country. There is need to ensure uniformity in commercial policies and to regulate business activities so as to encourage smooth operations because of the inhernt infricacies and complexities in the commercial world.
Reasons for government regulation of Business
To ensure uniformity in commercial and economic policies
To ensure industrial harmony between the employers and workers.
To ensure provision of question products.
To ensure the development of the economy
To raise revenue through tax imposition for certain purposes e.g. educational tax, value added tax etc.
Methods of government regulation of Business
Ownership of business can be regulated through some policies like indigenization, commercialization and privatization.
Business are also mandated to introduce measures to dispose their waste in such a way that there will be no environmental pollution.
Another way is to ensure that goods offered for consumption are safe and of high quality.
All business enterprises are mandated to use standard weights and measures for the product offered for sale. E.g. in soft drinks industry are 25cl, 30cl, 35cl, etc.
Under the coy Act, all business must be registered either as sole trading, partnership, public coy or cooperative. It is mandatory for all business enterprises to be registered with the corporate affairs commission (C.A.C.) before commencing operation. A certificate of incorporation will be issued to any business incorporated.
Govt. grants an exclusive right to a person to make use or sell an invention for a certain period of years. This gives he owner some degree of monopoly of the invention. Nobody can make use of such invention without permission from the right owner. This encourages innovation and allows the inventor to recoup his research cost.
Govt. allows a product differentiation mark; once a producer has registered a trade mark, any infringement will attract the wrath of the law. E.g. Jik, parozone trade marks for clearing materials.
An exclusive or sole right may be granted to writers of literary works (authors), musicians and artist by the govt. to produce his work for a specified period of time. Another person cannot reproduce such work without a written permission form the copyright owner. Literary copyright will last 50 years after the death of the author while musical right will only last for 50yrs after its realize.
Govt. can also control and regulates biz by giving approval for the location of a biz enterprises by establishing industrial estate.
Public liability coys are mandated to publish their annual accounts for public consumption. This is to prevent fraudulent practices.
Business can also be regulated by introducing tax on the profit of some business enterprises while poor coys may have their tax reduced through concession in order to encourage them.
Evaluation/Assignment:- Explain four ways by which govt. regulates biz.
WEEK 6
Topic: Credit Union and Thrift Society
Outlines of Instructional contents:
Credit unions and Thrift society
Behavioral objective: At the end of lesson, students should be able to explain the various ways in which govt. regulates businesses.
Definition of credit union and thrift Society:
This is an association of low income earners who jointly pool large resources or fund together by contributing on a weekly or monthly basic. It grants loan to the members out of the accumulated fund. The loan attracts a low rate of interest. At the end of the year, surplus will be distributed to members as dividend. The members can also be afforded the opportunity of purchasing household needs like television, fridge etc.
Aims of Credit Unions and thrift Societies.
To encourage saving habit among members
To provide loan at a very low interest rate
To assist in asset acquisition by members
To ensure payment of dividend to members
To assist members who are in need
Formation of credit unions and Thrift Societies.
Credit unions and thrift societies are formed by a group of people with a common objectives. It is formed voluntarily and is opened to anybody who is interested. They are not incorporated but may be registered. The society is a democratic associate in which members contribute according to their ability and capacity. Members will elect officers to run the affairs of the societies.
Sources of fund to credit unions and thrift societies.
1. Shares purchased by the members
2. registration fees paid by new or incoming members.
3. Fines imposed on defaulting members, e.g. absence from meeting may attract a fine.
4. Loan can be obtained from financial institutes.
5. Deposits of members.
6. Part of dividend called, retained earning.
7. Interest on loan given to members
Services provided to members:
The societies encourage members to save part of their income
The societies grant loan to members who may want to borrow money at a very low interest rate.
Members are enlightened about the latest development in thrift operation through constant meetings.
Another service provided to members is the payment of dividend from surplus fund.
The society can act as entity to obtain loan from financial institutions to finance business.
Credit union ensures close relationship between members as a result of personal interactions.
Members are helped by the societies in time of need.
Members can save and obtain large loan to finance businesses which can increase their standard of living.
Evaluation/Assignment: (i) List five sources of fund. (ii) state three aims for setting it up.
Outlines of Instructional contents:
Credit unions and Thrift society
Behavioral objective: At the end of lesson, students should be able to explain the various ways in which govt. regulates businesses.
Definition of credit union and thrift Society:
This is an association of low income earners who jointly pool large resources or fund together by contributing on a weekly or monthly basic. It grants loan to the members out of the accumulated fund. The loan attracts a low rate of interest. At the end of the year, surplus will be distributed to members as dividend. The members can also be afforded the opportunity of purchasing household needs like television, fridge etc.
Aims of Credit Unions and thrift Societies.
To encourage saving habit among members
To provide loan at a very low interest rate
To assist in asset acquisition by members
To ensure payment of dividend to members
To assist members who are in need
Formation of credit unions and Thrift Societies.
Credit unions and thrift societies are formed by a group of people with a common objectives. It is formed voluntarily and is opened to anybody who is interested. They are not incorporated but may be registered. The society is a democratic associate in which members contribute according to their ability and capacity. Members will elect officers to run the affairs of the societies.
Sources of fund to credit unions and thrift societies.
1. Shares purchased by the members
2. registration fees paid by new or incoming members.
3. Fines imposed on defaulting members, e.g. absence from meeting may attract a fine.
4. Loan can be obtained from financial institutes.
5. Deposits of members.
6. Part of dividend called, retained earning.
7. Interest on loan given to members
Services provided to members:
The societies encourage members to save part of their income
The societies grant loan to members who may want to borrow money at a very low interest rate.
Members are enlightened about the latest development in thrift operation through constant meetings.
Another service provided to members is the payment of dividend from surplus fund.
The society can act as entity to obtain loan from financial institutions to finance business.
Credit union ensures close relationship between members as a result of personal interactions.
Members are helped by the societies in time of need.
Members can save and obtain large loan to finance businesses which can increase their standard of living.
Evaluation/Assignment: (i) List five sources of fund. (ii) state three aims for setting it up.
WEEK 7
Topic: Marketing
Outlines of Instructional contents:
Define of marketing
Marketing segmentation
Importance of marketing in an economy
Functions of marketing
Marketing concept
Marketing mix.
Public relations.
Behavioral objective: At the end of lesson, students should be able to explain each contents under the instructional contents.
Definition of marketing: Marketing consists of the performance of business activities that direct the flow of goods and services from the producer to the consumer or users in order to satisfy customers and accomplish the company's objectives.
Marketing creates time, place and possession. It arranges for production and making goods available at the right time, in the right place and form.
A market is a place, point or any means of communication whereby the transfer of title or ownership of goods and services can be effected.
Types of market
Consumer market: It consists of the consumers who intend to benefit from the purchased products and not for the purpose of making profit.
Industrial market: It consists of consumes of a specific kind of product for direct use in producing other products.
Producer market: It consists of individuals or biz that purchase products for the purpose of making profit by using them to produce other products.
Market segmentation: this is the process of diving a total market into market groups, consisting of people who have relatively similar product need.
Types of market segmentation
(a) Concentration segmentation: this is when an organization directs its marketing efforts toward a single market through one marketing mix e.g. Roll Royce produces luxurious cars.
(b) Multi-segment strategy: this is one where the organization directs its effort at two or more segments by developing a mire for each selected segment.
Differences between marketing and selling
1. Marketing covers the process of distribution of goods and services but Selling is a part or an aspect of marketing
2. It creates various types of utilities e.g. possession, time and place but selling creates only possession utility
3. Marketing is highly specialized and requires professionalism but Selling is simple and can be performed by anybody
4. This is the overall process of creating demand and facilitating distribution of goods of goods and services but Selling involves the actual exchange of goods and services.
Importance of marketing in an Economy:
It contributes to an increased standard of living of the people
It provides job opportunities for the people
It ensures effective and efficient resource utilization in the production of goods and services.
It stimulates demand for a product.
It serves as a key to the growth of the economy of a country by making goods/services available at the right time and place.
It leads to healthy competition among firms thereby resulting in price reduction.
It ensures that the consumers are satisfied in terms of pricing, quality and availability of the needed products.
Functions of marketing
Exchange function: marketing activities ensure the exchange of goods and services between the buyer and seller.
Market research function: marketing research provides valuable information to the producers for the planning of the marketing mix and production policies.
Storage function: Marketing ensures that goods are made available at the right time as warehousing makes it possible for goods to be produced and stored ahead of demand.
Transporting: This ensures effective and efficient distribution of goods and services to the consumers for their satisfaction. Goods and services are moved from production ground to areas where they are wanted. This creates place utility.
Standardizing and Grading: This function ensures that goods and services to be distributed to consumers are of good quality and that they conform to the required grade and standard.
Pricing function: Marketing ensures the placement of appropriate price that will suit the consumers and fetch sufficient revenue on a product.
Facilitating function: Marketing also facilitates demand through the instrumentality of braiding packaging and advertising.
Market Research: market research is the study of consumers demand by a firm in order to assist it in expanding its output and the marketing of its product. It is the systematic and objective search for the analysis of information to guide managers in production and marketing.
Market planning and problem - solving research provide valuable information for the planning of the marketing mix- product, price, distribution and promotion. It can tell which product features are popular which price ranges are acceptable to buyers etc. marketing research is conducted through the following ways personal, interview, telephone, questionnaires and observation.
Evaluation/Assignment: (i) Differentiate between marketing and a market.
Outlines of Instructional contents:
Define of marketing
Marketing segmentation
Importance of marketing in an economy
Functions of marketing
Marketing concept
Marketing mix.
Public relations.
Behavioral objective: At the end of lesson, students should be able to explain each contents under the instructional contents.
Definition of marketing: Marketing consists of the performance of business activities that direct the flow of goods and services from the producer to the consumer or users in order to satisfy customers and accomplish the company's objectives.
Marketing creates time, place and possession. It arranges for production and making goods available at the right time, in the right place and form.
A market is a place, point or any means of communication whereby the transfer of title or ownership of goods and services can be effected.
Types of market
Consumer market: It consists of the consumers who intend to benefit from the purchased products and not for the purpose of making profit.
Industrial market: It consists of consumes of a specific kind of product for direct use in producing other products.
Producer market: It consists of individuals or biz that purchase products for the purpose of making profit by using them to produce other products.
Market segmentation: this is the process of diving a total market into market groups, consisting of people who have relatively similar product need.
Types of market segmentation
(a) Concentration segmentation: this is when an organization directs its marketing efforts toward a single market through one marketing mix e.g. Roll Royce produces luxurious cars.
(b) Multi-segment strategy: this is one where the organization directs its effort at two or more segments by developing a mire for each selected segment.
Differences between marketing and selling
1. Marketing covers the process of distribution of goods and services but Selling is a part or an aspect of marketing
2. It creates various types of utilities e.g. possession, time and place but selling creates only possession utility
3. Marketing is highly specialized and requires professionalism but Selling is simple and can be performed by anybody
4. This is the overall process of creating demand and facilitating distribution of goods of goods and services but Selling involves the actual exchange of goods and services.
Importance of marketing in an Economy:
It contributes to an increased standard of living of the people
It provides job opportunities for the people
It ensures effective and efficient resource utilization in the production of goods and services.
It stimulates demand for a product.
It serves as a key to the growth of the economy of a country by making goods/services available at the right time and place.
It leads to healthy competition among firms thereby resulting in price reduction.
It ensures that the consumers are satisfied in terms of pricing, quality and availability of the needed products.
Functions of marketing
Exchange function: marketing activities ensure the exchange of goods and services between the buyer and seller.
Market research function: marketing research provides valuable information to the producers for the planning of the marketing mix and production policies.
Storage function: Marketing ensures that goods are made available at the right time as warehousing makes it possible for goods to be produced and stored ahead of demand.
Transporting: This ensures effective and efficient distribution of goods and services to the consumers for their satisfaction. Goods and services are moved from production ground to areas where they are wanted. This creates place utility.
Standardizing and Grading: This function ensures that goods and services to be distributed to consumers are of good quality and that they conform to the required grade and standard.
Pricing function: Marketing ensures the placement of appropriate price that will suit the consumers and fetch sufficient revenue on a product.
Facilitating function: Marketing also facilitates demand through the instrumentality of braiding packaging and advertising.
Market Research: market research is the study of consumers demand by a firm in order to assist it in expanding its output and the marketing of its product. It is the systematic and objective search for the analysis of information to guide managers in production and marketing.
Market planning and problem - solving research provide valuable information for the planning of the marketing mix- product, price, distribution and promotion. It can tell which product features are popular which price ranges are acceptable to buyers etc. marketing research is conducted through the following ways personal, interview, telephone, questionnaires and observation.
Evaluation/Assignment: (i) Differentiate between marketing and a market.
WEEK 8
Topic: marketing contd
Marketing concept: marketing concept refers to the principal which states that the consumer is sovereign, that is, that the satisfaction of the consumer's wants is to be emphasized at all stages of production and distribution.
Marketing concepts involves these fundamental prepositions:
Consumer needs: Ask the consumer about their needs
Product Development: Develop of products to suit the consumers needs
Planning and Organization: Planning and organizing a marketing programme to bring the product the customers.
Post sales activities: carry out post sales activities that will ensure that the products are satisfactory in use.
Consumerism: Is the view of having the interest of consumers in production and distribution of goods and services. Consumers need to be protected in the course of consuming goods and services produced. The consumer is "the king" A recognition of the principles suits consumer, producing goods that consumer likes.
Marketing mix: According to Neil Bordon and Mc. Carthy refers to " the four Ps " which spells out the marketers, strategy to satisfy the needs of the consumers and to increase the sales of the goods.
These " four Ps " are product, price, promotion and place.
PRODUCT: is anything that satisfies a consumers need. The firm must make a decision as to what product it will sell. Other decisions are branding, packaging, labeling etc. product include raw materials, manufactured goods, services etc.
PRICE: is defined as the exchange value for the goods and services supplied. It determines the extent goods will be demanded and serves as the mechanism of exchange.
The components of price mix include allowances, discount structure, financial services, and credit terms etc. it is the most important factors in the marketing mix. Pricing policies are demand and supply curve, product, line promotion, marketing skimming etc.
PROMOTION: This is the communications dimension of the marketing mix. It deals with how the business should inform their customers about its products.
It stimulates demand and increase sales. Promotion includes advertising, trade fairs and exhibition, personal selling.
PLACE: This is concerned with the distribution of goods and services to consumers at required place. Distributed goods should be packaged in such a way as to create and maintain demand for the product. The place, as a marketing mix concerns such variables as location, channel strategy, transport facilities etc.
There are two aspect of distribution; physical distribution and institutional distribution. Physical distribution deal with transportation and institutional distribution deals with the enterprises and individual active in transportation associated with the movement of goods or provision of services.
Basic pricing policies (principal) (price mix) from the producers to the ultimate consumers.
Market penetrating strategy whereby the price of the product is set relatively low in order to gain instant dominance of the market.
Market skimming strategy whereby the price is set relatively high to appeal to the more affluence segment of the market. this is done to make affluent segment of the market. This is done to make much profit in the short run. The skimmer can start with high price and then lower it as competition increases.
Target return pricing policy: It aims at securing in a given period of time a predetermined rate of returns on investment.
Product line pricing policy: whereby a firm selling a wide range of products ear pricing to a range of products rather then to individual product.
Variable pricing policy: It is mostly applied to products or services with known variable time demand. It may be used to take advantage of period to reduce production and overhead cost by stimulating demand in non-peak period e.g. soft drink, fruits and cold water may be high prices during the dry season and low in the raining season.
Bid pricing policy: This is used when contracts are awarded as a result of tender e.g. government contracts. Such organizations must clearly attempts to determine the level of competitive bids. If the object is to obtain the determine the level of minimum price.
Pricing with the market leader: A new company entering into the market will have to follow the price levels set by old coys in the industry.
Pricing above the market: This is a policy whereby a firm will charge prices that are higher than those of the competing firms. This normally used for goods sold to wealthy individuals.
CHANNEL OF DISTRIBUTION (place mix)
This is the combination of institutions through which a seller markets his products to the buyers.
A) Producer - Consumer
B) Producer - Wholesaler - Retailer - Consumer
C) Producer - Agent - Consumer
D) Producer - Retailer - Consumer
E) Producer - Wholesaler - Consumer
Note: A channel is good for technical and perishable.
Forms of promotion (promotion mix): A marketing executive may choose any of the following forms of production
Personal selling
Sales promotion
Publicity
Public population
Product differentiation and branding packaging
Advertising
Marketing concept: marketing concept refers to the principal which states that the consumer is sovereign, that is, that the satisfaction of the consumer's wants is to be emphasized at all stages of production and distribution.
Marketing concepts involves these fundamental prepositions:
Consumer needs: Ask the consumer about their needs
Product Development: Develop of products to suit the consumers needs
Planning and Organization: Planning and organizing a marketing programme to bring the product the customers.
Post sales activities: carry out post sales activities that will ensure that the products are satisfactory in use.
Consumerism: Is the view of having the interest of consumers in production and distribution of goods and services. Consumers need to be protected in the course of consuming goods and services produced. The consumer is "the king" A recognition of the principles suits consumer, producing goods that consumer likes.
Marketing mix: According to Neil Bordon and Mc. Carthy refers to " the four Ps " which spells out the marketers, strategy to satisfy the needs of the consumers and to increase the sales of the goods.
These " four Ps " are product, price, promotion and place.
PRODUCT: is anything that satisfies a consumers need. The firm must make a decision as to what product it will sell. Other decisions are branding, packaging, labeling etc. product include raw materials, manufactured goods, services etc.
PRICE: is defined as the exchange value for the goods and services supplied. It determines the extent goods will be demanded and serves as the mechanism of exchange.
The components of price mix include allowances, discount structure, financial services, and credit terms etc. it is the most important factors in the marketing mix. Pricing policies are demand and supply curve, product, line promotion, marketing skimming etc.
PROMOTION: This is the communications dimension of the marketing mix. It deals with how the business should inform their customers about its products.
It stimulates demand and increase sales. Promotion includes advertising, trade fairs and exhibition, personal selling.
PLACE: This is concerned with the distribution of goods and services to consumers at required place. Distributed goods should be packaged in such a way as to create and maintain demand for the product. The place, as a marketing mix concerns such variables as location, channel strategy, transport facilities etc.
There are two aspect of distribution; physical distribution and institutional distribution. Physical distribution deal with transportation and institutional distribution deals with the enterprises and individual active in transportation associated with the movement of goods or provision of services.
Basic pricing policies (principal) (price mix) from the producers to the ultimate consumers.
Market penetrating strategy whereby the price of the product is set relatively low in order to gain instant dominance of the market.
Market skimming strategy whereby the price is set relatively high to appeal to the more affluence segment of the market. this is done to make affluent segment of the market. This is done to make much profit in the short run. The skimmer can start with high price and then lower it as competition increases.
Target return pricing policy: It aims at securing in a given period of time a predetermined rate of returns on investment.
Product line pricing policy: whereby a firm selling a wide range of products ear pricing to a range of products rather then to individual product.
Variable pricing policy: It is mostly applied to products or services with known variable time demand. It may be used to take advantage of period to reduce production and overhead cost by stimulating demand in non-peak period e.g. soft drink, fruits and cold water may be high prices during the dry season and low in the raining season.
Bid pricing policy: This is used when contracts are awarded as a result of tender e.g. government contracts. Such organizations must clearly attempts to determine the level of competitive bids. If the object is to obtain the determine the level of minimum price.
Pricing with the market leader: A new company entering into the market will have to follow the price levels set by old coys in the industry.
Pricing above the market: This is a policy whereby a firm will charge prices that are higher than those of the competing firms. This normally used for goods sold to wealthy individuals.
CHANNEL OF DISTRIBUTION (place mix)
This is the combination of institutions through which a seller markets his products to the buyers.
A) Producer - Consumer
B) Producer - Wholesaler - Retailer - Consumer
C) Producer - Agent - Consumer
D) Producer - Retailer - Consumer
E) Producer - Wholesaler - Consumer
Note: A channel is good for technical and perishable.
Forms of promotion (promotion mix): A marketing executive may choose any of the following forms of production
Personal selling
Sales promotion
Publicity
Public population
Product differentiation and branding packaging
Advertising
WEEK 9
Topic: Forms of promotion in marketing
Outlines of instructional contents.
Personal selling
Sales promotion
Publicity
Public population
Product differentiation and branding packaging
Advertising
Behavioral Objective: At the end of the lesson, students should be able to state five forms of promotion.
Personal selling: involves the direct personal contact of sellers with the potential buyers with the view to making sales. E.g. door - to - door selling.
Importance: A manufacturer engages in personal selling for the following reasons:
It is a form of sales promotion which encourages on the spot purchase and orders.
It makes personal contact between buyer and seller possible, thus facilitating immediate feedback.
It is used for selling technical goods which requires demonstration on the usage and installation.
It is used for introducing a new product to the market.
It affords the marketer the opportunity of explaining the qualities and usefulness of the products to customer.
The product can be modified to suit the personal needs of the consumers.
It helps to receive customer interest in the old products of the form.
It is used for custom-made expensive or perishable goods.
Lack of active selling by intermediaries can propel a firm to sell directly to the customer.
Disadvantages of personal selling:
It will not be useful when there are large numbers of potential buyers who are geographically scattered.
Communication with customers directly results in high cost
Personal selling leads to involvement of unskilled markets in effecting final distribution.
Sales Promotion: is any activity that is used to stimulate sales of a product. It is a special promotion technique designed to encourage brand patronage. It may be directed at customers in the form of consumer promotion or to middlemen as trade promotion. It usually lasts for a period.
Consumer promoters: The following are examples of consumer promotion.
(a) free-goods (b) special discount (c) cooperative advert
(d) sales competition for sales staff.
Reasons for the use of sales promotion
To encourage slow selling lines
To create dealers interest and encourage stocking
To encourage more frequently use of a product
To stimulate off peak period sales
To introduce a new product
To boost sales in a particular geographic area
To offset price competition.
Publicity: This may be defined as news about products or companies in the press, on radio or television etc.
FORMS OF PUBLICITY
(a) photographs (b) Feature stories (c) News conference (d) work visits (e) Press release or news items
USES OF PUBLICITY
It accords credibility to a coy
It dramatizes a coy and its products or services
It secures a favourable public image for the firm
It creates awareness for a company and its products or services.
Public relations: This is a deliberate but sustained effort by a firm to establish a good image for the organization in the eye of its numerous public and by so doing create goodwill and favourable trading (business) environment for the coy and its products or service.
PRS can take many forms. it could be for initiating and executing A development project e.g. provision of pipe borne water, electricity etc for the host community scholarship awards to some students form the community.
Product Differentiate and Branding: Product differentiation is any means by which a producer attempts to distinguish his product from similar products. Made by rival producer.
It is the practice by which a company offers its product in unique colours, different brands and packaging in order to make it looks different from that of other products. They hope to establish in customer's minds that their products are superior and preferable to competing brands.
Branding: is a general term covering brand names designs, trade marks. Symbols which may be used to distinguish one firm's product form that of another. Branding is the act of giving a distinctive label or name to a product. The brand name may be registered as a trade mark; this protecting it from competitions. The main aim of branding is to distinguish one manufacturer's products from similar product of other manufacturers e.g. coke, fanta.
Reasons for branding (advantages)
It encourage standardized pricing
It facilitates self selection
It ensures easy recognition of product
Brand loyalty may give a producer greater control over the market
It is useful for introducing new products
It prevents the adulteration of the branded product
It leads to a more readily acceptance of a product
It allows the producer to enjoy some form of monopoly
It is an assurance that the quality of the product will be maintained.
It makes market segmentation easier as different brands of similar products may be developed to meet specific categories of people.
It helps to differentiate products
It informs the customers about the existence of a product
Disadvantages of Branding:
The cost of branding may be prohibitive
It is disadvantageous to the retailer in that he will have to stock many varieties of the same product in order to please all his customers.
Too many brands may confuse customers
It creates false buying on the part of the consumers.
Packaging: this involves the development of a container and a graphic design for a product. Packaging makes the product more versatile, safer or easier to use. It influences consumers attitudes which in turn affect their purchasing decision.
Reason why manufacturers prepackaging their goods:
The middlemen are relieved of the burden of having to prepackage the goods.
False measuring and weighing by unscrupulous retailers are minimized where producers have prepackaged their goods
Branding and labeling are possible with packaged goods
It protects the products as they move from the producers to sellers and to the final users
Since prepackaged goods are standardized, it facilitates self service, retailing and mail order business.
It makes advertising easy
There is possibility of recycling the package
It makes for easy handling
For corrosive products, prepackaging protects both buyers and sellers from any harm.
Disadvantages:
Prepackaging makes the product to be more expenses and the cost are borne by the consumers.
Information on prepackaged goods may be deceitful to buyers.
Buyers are compelled to rely on the information stated on the package.
Actual inspection of the goods is not possible unless the packaging is to be destroyed.
End users often litter the environment with wrappers and empty cans.
Advertising: which is nay paid form of non-personal communication which is directed to the customers a target audience through various media in order to present and promote products, services and ideas.
Evaluation/Assignments: why do produces engage in personal selling?
Outlines of instructional contents.
Personal selling
Sales promotion
Publicity
Public population
Product differentiation and branding packaging
Advertising
Behavioral Objective: At the end of the lesson, students should be able to state five forms of promotion.
Personal selling: involves the direct personal contact of sellers with the potential buyers with the view to making sales. E.g. door - to - door selling.
Importance: A manufacturer engages in personal selling for the following reasons:
It is a form of sales promotion which encourages on the spot purchase and orders.
It makes personal contact between buyer and seller possible, thus facilitating immediate feedback.
It is used for selling technical goods which requires demonstration on the usage and installation.
It is used for introducing a new product to the market.
It affords the marketer the opportunity of explaining the qualities and usefulness of the products to customer.
The product can be modified to suit the personal needs of the consumers.
It helps to receive customer interest in the old products of the form.
It is used for custom-made expensive or perishable goods.
Lack of active selling by intermediaries can propel a firm to sell directly to the customer.
Disadvantages of personal selling:
It will not be useful when there are large numbers of potential buyers who are geographically scattered.
Communication with customers directly results in high cost
Personal selling leads to involvement of unskilled markets in effecting final distribution.
Sales Promotion: is any activity that is used to stimulate sales of a product. It is a special promotion technique designed to encourage brand patronage. It may be directed at customers in the form of consumer promotion or to middlemen as trade promotion. It usually lasts for a period.
Consumer promoters: The following are examples of consumer promotion.
(a) free-goods (b) special discount (c) cooperative advert
(d) sales competition for sales staff.
Reasons for the use of sales promotion
To encourage slow selling lines
To create dealers interest and encourage stocking
To encourage more frequently use of a product
To stimulate off peak period sales
To introduce a new product
To boost sales in a particular geographic area
To offset price competition.
Publicity: This may be defined as news about products or companies in the press, on radio or television etc.
FORMS OF PUBLICITY
(a) photographs (b) Feature stories (c) News conference (d) work visits (e) Press release or news items
USES OF PUBLICITY
It accords credibility to a coy
It dramatizes a coy and its products or services
It secures a favourable public image for the firm
It creates awareness for a company and its products or services.
Public relations: This is a deliberate but sustained effort by a firm to establish a good image for the organization in the eye of its numerous public and by so doing create goodwill and favourable trading (business) environment for the coy and its products or service.
PRS can take many forms. it could be for initiating and executing A development project e.g. provision of pipe borne water, electricity etc for the host community scholarship awards to some students form the community.
Product Differentiate and Branding: Product differentiation is any means by which a producer attempts to distinguish his product from similar products. Made by rival producer.
It is the practice by which a company offers its product in unique colours, different brands and packaging in order to make it looks different from that of other products. They hope to establish in customer's minds that their products are superior and preferable to competing brands.
Branding: is a general term covering brand names designs, trade marks. Symbols which may be used to distinguish one firm's product form that of another. Branding is the act of giving a distinctive label or name to a product. The brand name may be registered as a trade mark; this protecting it from competitions. The main aim of branding is to distinguish one manufacturer's products from similar product of other manufacturers e.g. coke, fanta.
Reasons for branding (advantages)
It encourage standardized pricing
It facilitates self selection
It ensures easy recognition of product
Brand loyalty may give a producer greater control over the market
It is useful for introducing new products
It prevents the adulteration of the branded product
It leads to a more readily acceptance of a product
It allows the producer to enjoy some form of monopoly
It is an assurance that the quality of the product will be maintained.
It makes market segmentation easier as different brands of similar products may be developed to meet specific categories of people.
It helps to differentiate products
It informs the customers about the existence of a product
Disadvantages of Branding:
The cost of branding may be prohibitive
It is disadvantageous to the retailer in that he will have to stock many varieties of the same product in order to please all his customers.
Too many brands may confuse customers
It creates false buying on the part of the consumers.
Packaging: this involves the development of a container and a graphic design for a product. Packaging makes the product more versatile, safer or easier to use. It influences consumers attitudes which in turn affect their purchasing decision.
Reason why manufacturers prepackaging their goods:
The middlemen are relieved of the burden of having to prepackage the goods.
False measuring and weighing by unscrupulous retailers are minimized where producers have prepackaged their goods
Branding and labeling are possible with packaged goods
It protects the products as they move from the producers to sellers and to the final users
Since prepackaged goods are standardized, it facilitates self service, retailing and mail order business.
It makes advertising easy
There is possibility of recycling the package
It makes for easy handling
For corrosive products, prepackaging protects both buyers and sellers from any harm.
Disadvantages:
Prepackaging makes the product to be more expenses and the cost are borne by the consumers.
Information on prepackaged goods may be deceitful to buyers.
Buyers are compelled to rely on the information stated on the package.
Actual inspection of the goods is not possible unless the packaging is to be destroyed.
End users often litter the environment with wrappers and empty cans.
Advertising: which is nay paid form of non-personal communication which is directed to the customers a target audience through various media in order to present and promote products, services and ideas.
Evaluation/Assignments: why do produces engage in personal selling?
