Merger dynamics in the marketing field

Acquisitions and mergers have an impact on the different divisions that make up companies, including the marketing department, which can take advantage of this union to improve the marketing strategy and expand the reach of the firm’s brands.

Discover how inter-company merger dynamics drive growth and strategic innovation.

Merger dynamics offer fertile ground for innovation and growth in the marketing arena as they provide a unique opportunity for brands to expand their reach, diversify their offerings and strengthen their position in the marketplace.

From a marketing perspective, the integration of two business entities is not only a strategic and operational challenge, but also an opportunity to reimagine and revitalize brand presence.

In this environment, CMOs and chief marketing officers play a crucial role in the brand integration as responsible for ensuring that the union of the companies’ cultures, values and visions results in a coherent and attractive value proposition for the customer.

For this reason, merger communication, both internal and external, is one of the essential elements in the marketing strategy as it will allow customers, employees and partners to maintain confidence in the resulting new company.

Merger marketing strategy

The fusion marketing The marketing departments that the companies had before the merger have to work together in a collaborative way to achieve a benefit that translates into the definition of attractive offers and the customer loyalty during the M&A process (merger or acquisition).

This joint and collaborative work is fundamental to the success of the M&A strategic planning developed by marketing managers, but it is also necessary to take certain steps.

The first step

Even before a merger or acquisition process has been announced, marketing departments should conduct a preliminary analysis to find out what the merger synergies are. This study must be exhaustive in order to discover the strengths, weaknesses, opportunities and threats of both companies.

Within that strategy, it is important to begin to address organizational change management and to define the strategies to be followed once the merger is completed.

Brand communication and unified message

Organizational climate and culture management is one of the most important points to be monitored jointly by HR management and marketing departments. This communication should be directed externally, to partners and customers, and internally, to employees. External communication will focus on maintaining customer confidence and loyalty in the resulting company, while the latter will ensure employee delivery and productivity.

It is also important to provide accurate communication to shareholders. Stakeholder management in mergers is one of the most necessary aspects of the marketing and communication strategy.

In this sense, the merger of companies involves the combination of two distinct corporate cultures, so it is vital to align these cultures to present a cohesive brand to the market.

This business growth strategy may require the development and implementation of internal marketing campaigns to encourage adoption and engagement with the new brand. To this end, the use of a platform such as Digital Customer Engagement by aggity allows to engage employees and develop the new post-merger corporate culture.

Product strategy

When a merger of companies takes place, it is key to have knowledge of the brands and products that will be part of the new resulting company. For this reason, it is essential to evaluate and align the product and service offerings of the merged companies to identify complementarities, redundancies or gaps in the market.

This can lead to the optimization of the product portfolio and the identification of new business opportunities to strengthen customer engagement with innovative strategies.

In order to make the new product portfolio as attractive as possible, it is key to carry out a good analysis of the company’s customer base. For this reason, CMOs must understand how the merger will affect customer bases. The objective should be to manage customer expectations, to find out whether the new product offering convinces them or whether the corporate rebranding corporate rebranding rebranding is attractive to them.

Impact measurement

Once the merger is completed, it is important to measure the impact of the strategies that have been planned and implemented. This post-merger market analysis involves monitoring key performance indicators (KPIs) related to brand, customer engagement and sales performance.

An additional objective should be to discover the risks and opportunities in M&A and develop new competitive post-merger market strategies. The results of this analysis and the monitoring based on KPIs will make it possible to vary the product portfolio or incorporate new innovation processes.nnovation post-merger to build customer loyalty and attract customers.