The experiences of the multinational market groups developed
since World War II point up both the successes and the hazards
such groups encounter. The various attempts at economic cooperation
represent varying degrees of success and failure, but almost
without regard to their degree of success, the economic market
groups have created great excitement among marketers. In the near
future these regional groupings will continue to form trade agreement
ties with other nations and regions, thus paving the way for
truly globalized markets where consumers dominate.
For companies the economic benefits possible through cooperation
relate to more efficient marketing and production. Marketing
efficiency is effected through the development of mass markets,
encouragement of competition, improvement of personal income,
and various psychological market factors. Production efficiency
derives from specialization, mass production for mass markets,
and the free movement of the factors of production. Economic integration
also tends to foster political harmony among the countries
involved; such harmony leads to stability and peace, which
are beneficial to the marketer.
The marketing implications of multinational market groups
may be studied from the viewpoint of firms located inside the market
or of firms located outside, which wish to sell to the markets.
For each viewpoint the problems and opportunities are somewhat
different; regardless of the location of the marketer, however,
multinational market groups provide great opportunity for the creative
marketer who wishes to expand volume. Market groupings
make it economically feasible to enter new markets and to employ
new marketing strategies that could not be applied to the
smaller markets represented by individual countries. At the same
time, market groupings intensify competition by protectionism
within a market group but may foster greater protectionism between
regional markets. Mercosur and ASEAN+3, for example,
suggest the growing importance of economic cooperation and integration.
Such developments will continue to confront the international
marketer by providing continually growing market
opportunities and challenges.
