Joliza Maurin L.

Batino
T1A

MARKET INTEGRATION

According to Restoy, F. (2019), “Market integration has a range of social and economic

advantages, including increased global competition in the provision of financial services and

investment opportunities for consumers.” Furthermore, integrated financial markets perform

as personal risk-sharing processes, facilitating the regularization of domestic financial and

economic periods. Moreover, market integration allows for more derivative instruments,

which contributes to better management and financial stability.

Regulation is undeniably essential in supporting market integration. In particular, the

persistence of requirements laid down on internationally operating organizations and the

uniformity of financial regulation all over the states may also provide a strong incentive for

combining financial transactions and activities. Similarly, inaccurate regulations or any type

of regulation discriminating against foreign competitors in domestic industries often seem to

stifle financial activity's internationalization.

Market integration takes place when prices in multiple places or for similar products

automation of activities brought consistency patterns throughout time. Organizations of

goods tend to move in ratio to one another, and whenever this relationship is indeed

evident among various markets, the industries are said to be incorporated. Thus, market

integration is an important index that describes how strongly linked different market

segments are to one another. A marketing company is an aggregator in the way that he

gathers input and vital input prices from other group members and clients and supplying

solutions to clients by organizing diverse organizational operations.

one another and experience similar patterns of cost either increasing or decreasing. It's about

a type of scenario that occurs when the price levels of produced products and services retailed

in a specific region start to keep moving in a similar trend. In some instances, the integration

may be deliberate, with a government implementing specific strategies to exert control over

the economy's direction. At times, market integration may be influenced by factors including

shift patterns in both supply and demand, which have a pull impact on many industries.

Tatum, M. (2022) stated that the market integration exists when activities in two or more

marketplaces produce similar improvements or shift patterns in other industries that

concentrate on primary products. He made an example that if trend for doll toys in a specified

geographic market falls by 50%, there is a good possibility that supply for doll accessories

will fall in percentage within that exact market. If the doll market grows, it is likely that the

industry for doll accessories will grow as well. Neither markets would be capable of changing

costing in response to the changing factors that cause requirement, as well as additional

variables such as manufacturing.

He also stated that market integration can happen with almost any kind of market. Similar

results in rates of exchange for investments associated with a specific market could well be

discovered in two or even more markets all over the world thanks to integration of stock

markets. Likewise, global financial integration may take place once financing costs in

different markets start to change in full agreement with each other. In some instances, the

occurrence of specific patterns within such a nation's capital, supply, and financial markets

may lead in those developments combining to impose a powerful effect on that country ’s

economic growth.
Market integration is commonly a very positive situation, particularly if the evolving retail

prices trend implies a progressively successful society. In addition, evaluating market

integration may be a beneficial framework for describing unacceptable patterns and needing

the opportunity to start reconsidering some these patterns when there's still time. Like a

consequence, financial experts and economic experts will regularly check operation in

markets, recognize any indications of integration, and offer suggestions on how to best

capitalize on the arising circumstance.

According to Sivam (n.d.), there are three basic kinds of market integration. The first type of

integration is horizontal integration, which occurs when one firm or agency gains control of

another firm or agency requiring similar marketing operations within the same standard in the

promotional pattern. In this type of integration, a few marketing companies join forces to

form a group in order to reduce their efficient amount and the extensiveness of competition in

the market. It advantages the people in the group who participate. Horizontal integration has

effects: first, it buys out a competitor in a time-bound manner to reduce competition.

Following that, increasing market share and profits. Then there will be economies of scale.

And lastly, specialize in your field.

Vertical integration is the next type of market integration, which occurs when a company is

performing more than one operation in the marketing. It is the integration of two or more

marketing functions within a single company or under a sole ownership. This type of

integration enables oversight over both the value and quantity of the merchandise from the

start of the manufacturing process till the product is ready for the client. It decreases the

number of intermediaries in the promotional strategy. Vertical integration has the effect of

increasing profits by taking on additional functions. It reduces risk by improving market

coordination. Also, increased bargaining strength and the ability to influence prices. And

lowering costs by improving operating effectiveness

organizations or operations that are not specifically linked to each other but continue

operating under successful integration. Conglomeration has the effects of reducing risk

through diversification and acquiring financial leverage. Also, the desire to build an empire.

According to Sivam (n.d.), there are factors for market integration. The first step is to reduce

transaction costs and increase competition. The next step is to improve transmissions for ideal

generation and utilization choices. Finally, to enhance security and sustainability. The

importance of market integration offers a variety of welfare programs, such as growing

competition in the financial service industry and market opportunities for customers.

Integrated marketing aids in the optimization of spending by directing the appropriate amount

of resources to the most promising strategies that produce the greatest results.

A group of goods frequently moves in proportion to one another, and when this relationship

is very clear among different markets, the markets are said to be integrated. Therefore,

market integration is indeed an obvious indicator that discusses how closely related market

segments are to one another.

According to Leadspace, the goal of integrated marketing is to present consumers with a

good branding expertise throughout all networks, both paid and organic. Integrated marketing

techniques, then, rely on consistent communication of brand identity through systems and

methods that enhance one another and shape a truly united, integrated unity. Obviously, there

are many variables involved in an effective integrated approach to marketing, but the

outcomes are remarkable whenever it appears to work. The four examples listed below have

achieved excellent performance with integrated marketing.

 Apple’s Immersive Website and Storefronts. Few companies in the world have the

level of brand recognition that Apple has, and the company has consistently provided
 a high level of brand integration regardless of where consumers encounter it. Have

you ever noticed how every Apple storefront has a look and feel that is nearly

identical to that of the company's website? Few companies are capable of integrating

the physical location with the online presence in such a thorough manner, providing

consumers with an identifiable customer experience wherever it occurs.

 Chicago’s Field Museum Brings Art into the Urban Core. As the Field Museum

demonstrated with an integrated marketing campaign that brought art to people in

order to increase special exhibit attendance, brands can be both cultural and

commercial. Paid digital media and traditional advertising (such as billboards) were

used alongside social media posts announcing surprise "pop-up" art locations, and

many videos of people interacting with exhibits were captured, creating a full 360-

degree experience in marketing that left people wanting to see the museum to further

quench their cultural thirst.

 Domino’s Helps People Order from Anywhere. To emphasize the ease of ordering

wherever a customer may be, the ubiquitous pizza chain named their ordering

software "AnyWare." The Pizza Profile, which was created to save customer

information and expedite ordering, was the key to making it work. People could use

this data to place orders online, via text, via tweet, or even via a smartwatch. Getting

the word out about AnyWare required an integrated marketing strategy that included

press releases, television, digital, and social advertising, with the goal of having one-

half of all orders placed digitally (which they reached handily).

 Southwest Brings Transparency to Airline Tickets. People don't expect airline

ticket prices to make sense, but Southwest believes they shouldn't. To that end, they

developed "Transfarency," an integrated marketing strategy designed to entertain and

educate consumers about airline fees and, in some cases, how to avoid them. This was
 a way for Southwest to differentiate themselves by emphasizing their simple fee

structure while also providing customers with multiple convenient ways to pay for

things like flight changes and onboard snacks. Their "we're different" approach made

it ideal for social media, where it received a lot of attention.

All of these successful integrated marketing strategies have one thing in common: they are

powered by customer data.

References:

Restoy, F. (2019, April 15). Market integration: the role of regulation. Retrieved September

28, 2022, from https://www.bis.org/speeches/sp190415.htm

Sivam, J. (n.d.). Market integration. Retrieved September 28, 2022, from

https://www.slideshare.net/jpsivam/market-integration

Team, L. (2022, June 8). 4 Examples of Integrated Marketing Done Right. Leadspace.

Retrieved September 28, 2022, from https://www.leadspace.com/blog/4-examples-of-

integrated-marketing-done-right/

What Is Market Integration? (2022a, August 26). Smart Capital Mind. Retrieved September

28, 2022, from https://www.smartcapitalmind.com/what-is-market-integration.htm

What Is Market Integration? (2022b, August 26). Smart Capital Mind. Retrieved September

28, 2022, from https://www.smartcapitalmind.com/what-is-market-integration.htm