Scribd
Upload
3K views13 pages

Market Integration Powerpoint

This document discusses different types of market integration: horizontal, vertical, and conglomeration. [1] Horizontal integration involves combining similar firms to reduce competition, like Facebook acquiring Instagram. [2] Vertical integration links functions in the marketing process under single ownership, such as a wholesaler taking on retailing. [3] Conglomeration combines unrelated activities under unified management, exemplified by Hindustan Unilever's vegetables and soaps business.

Uploaded by

lester
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
3K views13 pages

Market Integration Powerpoint

This document discusses different types of market integration: horizontal, vertical, and conglomeration. [1] Horizontal integration involves combining similar firms to reduce competition, like Facebook acquiring Instagram. [2] Vertical integration links functions in the marketing process under single ownership, such as a wholesaler taking on retailing. [3] Conglomeration combines unrelated activities under unified management, exemplified by Hindustan Unilever's vegetables and soaps business.

Uploaded by

lester
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 13

MARKETING

INTEGRATION
MARKET INTEGRATION

• Integration shows the relationship firms in a


market. The extent of integration influences
the market conduct of the firms and
consequently their marketing efficiency.
• Markets differ in the extent of integration;
therefore, there is a variation in their degree
of efficiency.
TYPES OF MARKET
INTEGRATION
There are three basic kind of Market Integration:

HORIZONTAL
INTEGRATION

VERTICAL INTEGRATION

CONGLOMERATION
HORIZONTAL INTEGRATION

In this type of integration,


HORIZONTAL INTEGRATION
some marketing agencies
combine to form a union to
reduce their effective number FIRM 1 FIRM 2

and the extent of actual


competition in the market.
e.g. Facebook with Instagram
Primary milk producers
EXAMPLE OF HORIZONTAL INTEGRATION

Both Facebook and Instagram operated in


the same industry and were in similar
production stages in regard to their
PHOTO-SHARING SERVICES.

Facebook looking to strengthen its


position in the social media and sharing
space, saw the acquisition of Instagram
as an opportunity to grow its market
share, increase its product line, reduce
competition and access potential new
markets.
VERTICAL INTEGRATION
• Vertical Integration occurs when a firm performs more than one
activity in the sequence of the marketing process.
• It is linking together of two or more functions in the marketing
process with in a single firm or under a single ownership.
• For e.g. if a firm assumes wholesale as well as retailing, it is a
vertical integration or rice processor under taking retailing.
FORWARD INTEGRATION-
takes activities close to consumption function.
e.g. WHOLESALER ASSUMING THE FUNCTION OF RETAILING

BACKWARD INTERGRATION-
combination of source of supply
e.g. PROCESSING FIRM ASSUMES THE FUNCTION OF
ASSEMBLING/PURCHASING
CONGLOMERATION

A combination of agencies or activities not directly related


to each other
may operate under a unified management.

WHAT: involved in a number of different and frequently


unrelated activities.
Most of the business firms have some degree of vertical,
horizontal and conglomeration .
Meeting the multiple needs of their customers.
E.G. HINDUSTAN UNILIVER
LIMITED (processed vegetables and
soaps)

It is an Indian wing of the


Multinational consumer goods
company Lever International
REASONS FOR MARKET INTEGRATION

• TO REMOVE TRANSACTION COSTS


• FOSTER COMPETITION
• PROVIDE BETTER SIGNALS
• IMPROVE SECURITY OF SUPPLY

You might also like