UNIT II THE STRUCTURES OF GLOBALIZATION

MARKET
INTEGRATION
GROUP 3
 MARKET INTEGRATION

Market integration refers to how easily two or more markets can trade with each
other It occurs when prices among different locations or related goods follow similar
patterns over a long period of time. Groups of prices often move proportionally to each
other and when this relation is very clear among different markets it is said that the
markets are integrated
.
The term is further used in identifying related phenomenon of market of goods
and services experiencing similar patterns of increase or decrease in prices of products.
It may also refer to the movement of prices of related goods and services sold in a
defined geographical location in similar patterns. When government implement certain
strategy to control the direction of economy then integration is intentional while shifting
in supply and demand that has a spillover effect on several markets is another factor of
market integration. One way of helping integration of market by reducing barriers to
trade and increasing fluidity between markets is through foreign trade.
Market integration exists when there are exerted effects that prompt similar
changes or shifts in other markets that focus on related goods on events occurring
within two or more markets.
PRESENTED BY REYMON JONAS MARCO
CAGUETE AND MARK ANGELO ESBIETO

THREE TYPES OF
MARKETING
INTEGRATION
 HORIZONTAL INTEGRATION

• This 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.
• ➢ Acquire a similar company in the same industry.
• ➢ Expanding company’s market
• ➢ Increasing market power
• ➢ Increasing product or service differentiation
• ➢ Lowering competition
HORIZONTAL INTEGRATION ILLUSTRATION:
 VERTICAL
TAL INTEGRATION

➢ THIS OCCURS WHEN A FIRM PERFORMS MORE THAN ONE ACTIVITY IN THE
SEQUENCE OF THE
marketing process.
➢ Strengthening company’s supply chain
➢ Lowering production costs
➢ Capturing upstream or downstream profits
• ➢ Gaining access to new distribution channels
VERTICAL INTEGRATION ILLUSTRATION:
 CONGLOMRATION

➢ THIS OCCURS WHEN A CORPORATE GROUP, WHICH IS MADE UP OF TWO OR MORE

BUSINESS
entities engaged in completely different or similar businesses, usually with a parent
company and numerous subsidiaries.
➢ Examples: Amazon, Procter & Gamble, Unilever, Johnson & Johnson, and Warner
• Media