Market Integration

Market Integration
This lesson will discuss the following:
This lesson will discuss the following:
Concept/Definition of Market Integration
This lesson will discuss the following:
 Concept/Definition of Market Integration
 Different Types of Market Integration
This lesson will discuss the following:
 Concept/Definition of Market Integration
 Different Types of Market Integration
 The International Financial Institution and their Role in the Global
Economy
•Concept/Definition of Market
Integration​

Understanding of what a
Market Integration
 Integration shows the relationship of the firm in a market. The
extent of integration influences the conduct of the firms and
consequently their marketing efficiency

Understanding of what a Market Integration

 Integration shows the relationship of the firm in a market. The
extent of integration influences the conduct of the firms and
consequently their marketing efficiency
Market Integration is a situation in which separate markets
for the same products become one single market.

Understanding of what a Market Integration

Market Integration
 What is Market
Integration?
Market Integration
 What is Market Integration?

Is define as a process of expansion of firms by

consolidating additional marketing functions
and activities under a single management.
Market Integration
 What is Market Integration?

An example of market integration are the corporations

that established another firm across borders and
setting up of another marketing functions and
activities. Hence, there is a concentration of decision
making in the hands of a single management.(i.e.,
Market Integration
wholesaler retailer)
Market Integration
 INTEGRATION MAY BE
DONE EITHER BY:

Market Integration
 INTEGRATION MAY BE DONE EITHER BY:

1. Merging- joining of two or more companies to make

one

Market Integration
 INTEGRATION MAY BE DONE EITHER BY:

1. Merging- joining of two or more companies to make

one
2.Acquisition- purchase of another company

Market Integration
 INTEGRATION MAY BE DONE EITHER BY:

1. Merging- joining of two or more companies to make

one
2. Acquisition- purchase of another company
3. Hostile Takeover- is the acquisition of another company
that does not want to be taken over. This process is always
accompanied by a lot of cases, lawsuits, and scandals. An
extraordinary amount of money is offered in a hostile
Market Integration

takeover.
•Different Types of Market Integration​

   Types of Market Integration

    Types of Market Integration
Horizontal Integration
    Types of Market Integration
Horizontal Integration
Kohls and Uhl defined Horizontal integration as a process of integrating
with the competitors or leading business that providessame goods or
services.
→Horizontal Integration is a strategy that helps the expansion of a
business to a profitable level. The main purpose is to increasethe product
level, grow the size and name of the company.
    Types of Market Integration
Horizontal Integration
Kohls and Uhl defined Horizontal integration as a process of integrating
with the competitors or leading business that providessame goods or
services.
→Horizontal Integration is a strategy that helps the expansion of a
business to a profitable level. The main purpose is to increasethe product
level, grow the size and name of the company.
    Types of Market Integration

GOOD EXAMPLE OF 

Horizontal Integration
    Types of Market Integration
GOOD EXAMPLE OF Horizontal Integration

1. Social Media–both engaged in

the same services
    Types of Market Integration
GOOD EXAMPLE OF Horizontal Integration

2. Toys Company–both engaged

in the same entertainment
    Types of Market Integration
GOOD EXAMPLE OF Horizontal Integration

3. Entertainment like DISNEY–

both engaged in entertainment
    Types of Market Integration
Vertical Integration
    Types of Market Integration
Vertical Integration

Vertical integration is a strategy that allows a

company to streamline its operations by taking
direct ownership of various stages of its
production process rather than relying on
external contractors or suppliers.
    Types of Market Integration
Vertical Integration
A company may achieve vertical integration by
acquiring or establishing its own suppliers,
manufacturers, distributors, or retail locations rather
than outsourcing them. However, vertical integration
may be considered risky potential disadvantages due
to the significant initial capital investment required.
    Types of Market Integration

How It Works
Vertical Integration
    Types of Market Integration
How It Works Vertical Integration

Vertical integration occurs when a company

attempts to broaden its footprint across the 
supply chain or manufacturing process. Instead
of sticking to a single point along the process, a
company engages in vertical integration to
become more self-reliant on other aspects of the
process. For example, a manufacturing may want
to directly source its own raw materials or sell
directly to consumers.
3 Types of Vertical
Integration
3 Types of Vertical Integration

Backward Integration​
 3 Types of Vertical Integration
Backward Integration

A company that chooses backward

integration moves the ownership
control of its products to a point earlier
in the supply chain or the production
process.
3 Types of Vertical Integration

Forward Integration
 3 Types of Vertical Integration
Forward Integration

A company that decides

on forward integration expands by
gaining control of the distribution
process and sale of its finished
products.
3 Types of Vertical Integration

Balance Integration
 3 Types of Vertical Integration
Balance Integration
A balanced integration is a vertical integration
approach in which a company aims to merge with
companies both before it and after it along the
supply chain. A company must be "the middleman"
and manufacture a good to engage in a balanced
integration, as it must both source a raw material as
well as work with retailers to delivery the final
product.
• The International Financial Institution and their Role in the Global Economy​

International
Financial
Institutions
 • International Financial Institutions
are established and owned by several
governments and international
institutions.

International Financial Institutions​
 • They are members of the World Bank Group
(i.e. International Finance Corporation),
Regional Development Banks (i.e. Asian
Development Bank), and export credit
agencies of individual country governments
(i.e. US Export Import Band)

International Financial Institutions​
 • They are subject to
International Law

International Financial Institutions​​
• The International Financial Institution and their Role in the Global Economy​

Goals of International
Financial Institutions
• The International Financial Institution and their Role in the Global Economy​

Help reduce global poverty and improve living

conditions and standards

Goals of International Financial Institutions

• The International Financial Institution and their Role in the Global Economy​

Help reduce global poverty and improve living

conditions and standards

Support sustainable economic, social, and

institutional development 

Goals of International Financial Institutions

• The International Financial Institution and their Role in the Global Economy​

Help reduce global poverty and improve living

conditions and standards

Support sustainable economic, social, and

institutional development 
Promote regional and/or global cooperation
and integration

Goals of International Financial Institutions

• The International Financial Institution and their Role in the Global Economy​

Focus Areas of International

Financial Institutions
• The International Financial Institution and their Role in the Global Economy​

Support the social and economic

development programs of nations
with developing or transitional
economies

Focus Areas of International Financial Institutions

• The International Financial Institution and their Role in the Global Economy​

Provide technical and advisory

assistance in the implementation
of large scale infrastructure
projects in emerging markets

Focus Areas of International Financial Institutions

• The International Financial Institution and their Role in the Global Economy​

Provide capital to increase the

participation of other players
such as sub-national
government entities, as well as
the private sector

Focus Areas of International Financial Institutions

• The International Financial Institution and their Role in the Global Economy​

In addition to International Financial

Institutions, there are many International
Organizations and Alliances which were
established to foster stronger economic,
political or security ties among nations. They
also play important roles in global market
integration.
THANK
YOU
-ADIOS-