ABELLON, ARTHEA CHAILE C.

GE223-TWC BSA 2A CUBAO

DR. NOEL F. ANTIJENDRA February 21, 2021

MARKET INTEGRATION

According to Bellon (2010), market integration means the strength of trading

networks that link different market outlets, i.e., market-sheds. The term market-shed is
used to give the sense of a system or network of market flows within a given area (e.g.,
it is not just a zone with some markets located in it, but rather, it is a trading network
with links between market outlets) (Anderson et al. 2010). By assessing market
integration, it is significant to express the relations between the different sectors of the
value chain that affects the economy and to be able to vary the gathered information
and depend on them. Thus, market integration is a measure that describes the degree
to which different markets are interconnected.

This kind of integration happens when prices over a long period of time follow
similar patterns between different locations or related items. Groups of goods also move
in proportionally to each other and when this relation is very clear among different
markets it is said that the markets are integrated. A marketer plays an integrator's
position in the sense that he receives feedback or critical insights from other members
of the channel and consumers and provides customers with product solutions by
managing various organizational functions. A marketer is described as a person or a
company that advertises or promotes something. In the process of market integration,
simply put, the marketer is known to be the integrator or the one who gathers multiple
vital inputs and is tasked to give back solutions by coordinating multiple functions of
organization.

In this topic, it involves four key elements (the 4c’s) for integrating several
marketing platforms in order to convey a single and consistent brand message. It aims
to develop a course, both online and offline, between all your marketing channels. The
four said elements consist of: (1) coherence, (2) consistency, (3) continuity and (4)
complementary. The first element, coherence, is concerned about maintaining the
logical relation of your marketing messages through all your platforms. It requires the
unification of the said marketing messages to regard it as a uniformed whole. Second is
consistency, which entails reinforcing the same message throughout all of your
marketing platforms. It shows how a market is capable of being fair and accurate. The
third element, continuity, means that over time, the primary marketing message should
be linked. In simpler terms, it is the maintenance of a continuous action or operation
wherein it can consistently go through a long period of time. Lastly, complementary
shows how the various marketing platforms should work together in order to create an
even stronger message.

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 Market integration has three types: (1) horizontal integration, (2) vertical
integration and (3) conglomeration. The first one, horizontal integration, occurs when a
firm or agency gains control of other firms or agencies performing similar marketing
functions at the same level in the marketing sequence. In this type of integration, some
marketing agencies combine to form a union with a view to reducing their effective
number and the extent of actual competition in the market. It is advantageous for the
members who join the group. In short, horizontal integration is when a business grows
by acquiring a similar company in their industry at the same point of the supply chain.
Second is vertical integration, which occurs when a firm performs more than one activity
in the sequence of the marketing process. It is a linking together of two or more
functions in the marketing process within a single firm or under a single ownership. This
type of integration makes it possible to exercise control over both quality and quantity of
the product from the beginning of the production process until the product is ready for
the consumer. It reduces the number of middle men in the marketing channel. To make
it simple, vertical integration is when a business expands by acquiring another company
that operates before or after them in the supply chain. Under vertical integration, there
are two types: (a) forward integration, which involves acquiring a business further up in
the supply chain and (b) backward integration, which involves acquiring a business
operating earlier in the supply chain. Lastly, conglomeration, which is referred to as a
combination of agencies or activities not directly related to each other may, when it
operates under a unified management, be considered conglomerate.

Marketing integration, in a nutshell, is the communication and collaboration of

multiple market channels to achieve and spread a single message. Integrating markets
is indeed an important phenomenon in the industry. It is because it allows marketers to
spread their marketing messages through various channels through integrating
marketing platforms that meet the 4c’s criteria. Since marketing is constantly evolving,
being present in multiple market channels allows you to create different strategies that
can adapt to such changes and may lessen the root of problems.

References:

https://www.researchgate.net/figure/Two-examples-of-seed-and-grain-value-
chains_fig1_239846854

https://en.wikipedia.org/wiki/Market_integration#:~:text=Market%20integration
%20occurs%20when%20prices,that%20the%20markets%20are%20integrated.

https://www.bluestardirect.com.au/blog/5-reasons-why-your-business-needs-an-
integrated-marketing-campaign/

https://www.tutor2u.net/business/reference/types-of-integration

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