Regional Economic Integration - Types, leading Economic Blocs

Regional Economic Integration - Types, leading Economic Blocs

 क्षेत्रीय आर्थिक एकीकरण 

Economic integration is an agreement between different nations that includes the reduction or elimination of trade barriers (tariffs or non-tariff) and the coordination of monetary and fiscal policies.

Regional economic integration occurs when countries come to the formation of free trade arrangements or customs unions, giving members preferential trade access to each other's markets.

Regional economic integration has enabled countries to focus on issues that are important for their development as well as to encourage trade relations between neighbouring countries.

Reasons for Regional Economic Integration

Geographic Proximity (भौगोलिक निकटता)

Similar Consumer's Taste, Needs and Preferences 

Easy Distribution Channels (सजिलो वितरण च्यानलहरू)

Common History and Interests

Common Economic Opportunities

Common Economic Problems and Challenges

Types (Stages - Phases) of Regional Economic Integration

1. PTA - Preferential Trading Area :(Reduces only tariffs rates for member nation{SAPTA- South Asian Preferential Trading Agreements})
2. FTA - Free trade Area :(Eliminating all tariffs and non-tariff barriers {SAFTA - South Asia Free Trade Area, NAFTA - North American Free Trade Area, BIMSTEC-FTA} 
3. Custom Union :(Common tariff and non-tariff barriers on imports from non member countries)
4. Economic Union ::(Greater economic harmonisation, Single currency like Euro for European Union (EU),Uniform Monetary System, Union of regulation authorities)
5. Political-Economic Union: Single Economic Political Identity- UAE (United Arab Emirates, and EU to emerge as the one soon)

Cultural Environment and its Impact on International Business ,Regional Economic Integration

  According to Terpstran (1987)

"Integrated sum of learned behavioural traits revealed and shared by members of society"

Diseases such as corona, and other problems like terrorism, ethnic violence, gender inequality, poverty have made societies uncertain about their future. International trade deals not only cross borders, they also cross cultures.

Trading on a global basis requires a good understanding of different cultures. The method that works in our country may not work properly in another country, and it can also be understood as an insult! 

As an international business professional, raising awareness of cultural issues within our organization is important to ensure effectiveness and acceptance.

Business culture refers to the beliefs, norms, and behaviours that determine how a company's employees and management conduct business activities inside and outside the organization. It also includes how they are affected by it.

The major elements of culture for the business world are: language, religion, values, customs, and history and each of them is equally important.

The basic elements of cultures are:

The values and attitudes (मान र दृष्टिकोण)

The manners and customs (शिष्टाचार र चलनहरू)

The law and politic (कानून और राजनीति)

The technology and material culture (प्रविधि र भौतिक संस्कृति{भौतिकवाद})

The aesthetic (aesthetic art, heritage, rituals, language, resources) {सौंदर्यबोध-सौन्दर्य (सौन्दर्य कला, विरासत, अनुष्ठान, भाषा, स्रोतहरू)}

                 Regional Economic Integration - Types, leading Economic Blocs

क्षेत्रीय आर्थिक एकीकरण 

Economic integration is an agreement between different nations that includes the reduction or elimination of trade barriers (tariffs or non-tariff) and the coordination of monetary and fiscal policies.

Regional economic integration occurs when countries come to the formation of free trade arrangements or customs unions, giving members preferential trade access to each other's markets.

Regional economic integration has enabled countries to focus on issues that are important for their development as well as to encourage trade relations between neighbouring countries.

Reasons for Regional Economic Integration

Geographic Proximity (भौगोलिक निकटता)

Similar Consumer's Taste, Needs and Preferences 

Easy Distribution Channels (सजिलो वितरण च्यानलहरू)

Common History and Interests

Common Economic Opportunities

Common Economic Problems and Challenges

Types (Stages - Phases) of Regional Economic Integration

1. PTA - Preferential Trading Area :(Reduces only tariffs rates for member nation{SAPTA- South Asian Preferential Trading Agreements})
2. FTA - Free trade Area :(Eliminating all tariffs and non-tariff barriers {SAFTA - South Asia Free Trade Area, NAFTA - North American Free Trade Area, BIMSTEC-FTA} 
3. Custom Union :(Common tariff and non-tariff barriers on imports from non member countries)
4. Economic Union ::(Greater economic harmonisation, Single currency like Euro for European Union (EU),Uniform Monetary System, Union of regulation authorities)
5. Political-Economic Union: Single Economic Political Identity- UAE (United Arab Emirates, and EU to emerge as the one soon)

Relationship Marketing

 The most expensive and challenging tasks facing by any business is acquiring new customers and sustaining existing customer. Relationship marketing mainly involves the improvement of internal operations.

Relationship marketing is a process of building long-term relationships with customers. 

Relationship marketing defines the framework for the company to reach out as well as and orient themselves to the outside markets, to the end customer as well as to the business partners, the suppliers and vendors too.

Importance of relationship marketing:

Long-Term Relation
Customer Satisfaction
Creat Brand Image
Increase in Sales Volume
Decrease Advertisement and Promotion Cost
Identification of Strength and Weakness   

Barriers to Integrated Marketing Communication

 

Introduction to Integrated Marketing Communications {Pokhara University} - (Advertising and Sales Promotion)

 It is essential for organizations to promote their brands well so that they not only outperform competitors but also survive longer. Brand promotion increases awareness of products and services among customers and ultimately increases sales and revenue for the organization. 

Brand communication is a process of promoting products and services among target consumers.

(IMC) Integrated marketing communication is a concept used by organizations to brand and coordinate their communication efforts.

Integrated marketing communication refers to integrating all methods of brand promotion to promote a particular product or service among the target audience.

The American Association of Advertising Agencies defines IMC as “a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency, and maximum communication impact.”

In integrated marketing communications, all aspects of marketing communications work together with cost effectiveness for sales and maximum profit.

The various components of integrated marketing communication are:

1. Market Research
2. Product research and Development
3. Brand Focus 
4. Communication Tools
5. Promotional Tools (प्रचार उपकरणहरु)
6. Customer Relationship Management Tool (ग्राहक सम्बन्ध व्यवस्थापन उपकरण)

1. Market Research 

The preliminary stage or foundation stage involves a detailed analysis and research of the target market.
We must know the needs, attitudes, and expectations of the target audience to make them our customers. In market research, we analyze demographics including population, age, gender, education, economic status, etc. 

2. Product Research and Development

As the name suggests, it involves a detailed analysis of product research and development. We must aware of the correct specifications of products and services.

3. Brand Focus

Brand focus is the concept where we decide what we have to say to our customers and what not.

Marketing Challenges in the 21st Century [Unit-1 {chapter-1} Pokhara University- BBA 4th Semester]

1. Increased competition  (बढेको प्रतिस्पर्धा)
2. Inefficient Marketing Campaign segmentation (अपर्याप्त मार्केटिंग अभियान विभाजन)
3. Lack of Brand Awareness (ब्रान्ड सचेतताको अभाव {जागरूकता})
4. Lack of resources (स्रोतहरूको अभाव) 
5. Language barriers (भाषा अवरोधहरू)
6. Local channels/ Medium (स्थानीय च्यानल / मध्यम)

1. Lack of Brand Awareness (ब्रान्ड सचेतताको अभाव {जागरूकता})

One of the main challenges facing marketing managers is the challenge of creating awareness. Most of the time we see that people lack knowledge or are misinformed about our product and service. This is happening due to low literacy or somehow maligning us by our competitors in illegal ways. Sometimes our employees have little knowledge of our product and service and sometimes some employees remain full of overconfident. That also leads to loss or challenges for organizations.

Introduction to Marketing and Marketing Management [Unit-1 {chapter-1} Pokhara University- BBA 4th Semester]

                    शताब्दी, दशक, र वर्षहरूमा बजार अवधारणा नाटकीय रूपमा परिवर्तन भएको छ।

In marketing, we do research and development as well as share information about our product and services with our respective parties, such as customers and other stakeholders who help us benefit in the market. We do research and development activities, we do advertising and other promotional activities such as public relations, sales promotion campaigns, direct marketing, sales personnel, CSR activities, etc.

Definition:- In simple terms marketing refers to the activities performed by a company to promote the purchase or sale of a product or service. Marketing involves advertising, selling, and distributing products to consumers or other businesses.

Marketing as a discipline involves all the functions that a company undertakes in order to attract customers and maintain a relationship with them for making profits. 

The market concept has changed dramatically over the centuries, decades, and years. The production-centric system has systematically changed into a relationship-centric system. Marketing has taken a modern form since the end of the 19th century after going through various development stages. Before the (20th) twentieth century, the production-oriented practice of marketing was conservative.

The new economy has seen the buying power of customer at all time. Consumers have reached easily to all types’ information for product and services because of the digital revolution. Developments of science & technology and especially the development of information technology have now changed the way people live, the way people do business, and the way people sell and buy.

The following is a brief description of various stages of the evolution of marketing.

Evolution of Marketing Concept

1. Production Orientation Era (युग) or Stage(चरणहरू) {1770-1820}
2. Product Orientation Era or Stage {1820-1930}
3. Sales Orientation Era Or Stage {1930-1950}
4. Marketing Orientation Era or Stage {1950-1970}
5. Relationship Marketing Orientation Era or Stage

The following sentences summarize the above developments in marketing.

1. Production era: 'Cut costs. Profits take care of themselves, we can sell'

2. Product era: 'Good products will sell themselves, we make what we can sell'

3. Sales era: 'Sales are keeping the bait for the customer, we sell what we make'

4. Marketing. Market age: 'Customer is king!'

5. Relations. Relationship Marketing Age: 'Relationships with customers determine the future of our firm'.

Holistic Marketing Concept

The definition of a holistic approach is relating to the concept that things should be studied as a whole not just as a part of the event.

Marketing Communication Mix (Pokhara University)

 Marketing is a broad business function related to product research and development, sales, distribution and pricing as well as promotion. The marketing communication mix refers to the specific methods used to promote a company name or products or services to target audiences. In this way, we can say that the marketing communication mix includes all the tools we use to communicate with our customers. This can be advertising, direct marketing, social media, product packaging and labeling, websites, events, sponsorship, exhibitions, etc.

Here are five key elements of the effective marketing communication mix:

1. Advertising (विज्ञापन)

2. Personal selling (व्यक्तिगत बिक्री)

3. Sales promotion (बिक्री पदोन्नति)

4. Public relations (सार्वजनिक सम्बन्ध)

5. Direct marketing (प्रत्यक्ष मार्केटिंग)

1. Advertising (विज्ञापन)

Advertising is a means of communicating with existing or potential users of a product or service. In simple terms, advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by marketers to the target audience.

2. Personal selling (व्यक्तिगत बिक्री)

Personal selling is known as face-to-face sales, in which a person who is a salesman or representative of a company tries to convince the customer to buy the product. In simple terms, it is a promotional method whereby the seller shows his skills and tries to sell the product to the customer. Thus, the company wants to spread awareness about the product for which it adopts a face-to-face approach and establish a person-to-person contact.

3. Sales promotion (बिक्री पदोन्नति)

Sales promotion is one of the core elements of the marketing communication mix. Promotion is an incentive tool that is used to increase short-term sales. sales promotion campaign can be launched for consumers, traders, and employees. Sales promotion activity can have many purposes, for example, to grab the attention of new customers and retain existing customers. Sometimes it increases the consumption of customers.

4. Public relations (सार्वजनिक सम्बन्ध)

Companies cannot survive by being isolated. Companies are required to interact regularly with customers, employees, and various stakeholders. Public relations help a business or individual to build a positive reputation with the public through various communications, including traditional media, social media, and other engagements with the public.

“Public relations is a strategic communication process that builds mutually beneficial relationships between organizations and their publics.”

-PRSA

Some topics/tasks within PR are given below:

• Crisis Communications (संकट संचार)
• Internal Communications (आन्तरिक संचार)
• Investor Relations Communications (लगानीकर्ता सम्बन्ध सञ्चार)
• Marketing Communications (मार्केटिंग संचार)
• Media Relations (मिडिया सम्बन्ध)
• Specific Events (विशिष्ट घटनाहरू)
• Social Media (सामाजिक संजाल)

5. Direct marketing (प्रत्यक्ष मार्केटिंग)

Face to face selling, direct mail, telemarketing, TV,  Online exhibition, and kiosks are media for direct marketing. Direct marketing is a promotional method that helps us to inform the audience about our company, product, or service without the use of an advertising middleman.

Components of Marketing ((Nepal Education Board 10+2))

 Marketing refers to the functioning of related products and services, including market research and advertising to promote and sell a product and service. The overall marketing system constitutes four major components that are coordinated and interdependent with each other to achieve the desired results.