Global marketing involves focusing a company's resources and objectives on global market opportunities. Companies engage in global marketing to take advantage of growth opportunities and to survive. There are advantages like cost reduction through economies of scale and improved quality from uniform products. However, there are also limitations such as cultural differences between markets and lack of global orientation. Industries become more globalized due to common customer needs, cost factors, government policies, and competitive pressures. Mergers and acquisitions allow companies to enter new markets, increase market share and resources, but can fail due to cultural clashes or paying too much for acquisitions.

1. GLOBAL MARKETING
• THE GLOBAL MARKETING IS THE PROCESS OF FOCUSSING THE
RESOURCES & OBJECTIVES OF A COMPANY ON GLOBAL MARKET
OPPORTUNITIES
COMPANIES ENGAGE IN GLOBAL MARKETING FOR TWO BASIC
REASONS:
• TO TAKE ADVANTAGE OF OPPORTUNITY FOR GROWTH & EXPANSION
• TO SURVIVE

2. Deepali Goel MBA (G)
POTENTIAL ADVANTAGES AND LIMITATIONS OF
A GLOBAL MARKETING STRATEGY
ADVANTAGES OF GLOBAL MARKETING
1. UNIT COST REDUCTION:
• Consolidation of the global marketing function
• Economies of scale
• Dilution of R&D and other fixed costs, etc..
2. IMPROVED QUALITY OF PRODUCT:
• Through concentration on key marketing activities
• Uniform products
3. ENHANCED CUSTOMER PREFERENCES
• Through global knowledge of products
• Global availability
• Global serviceability

3. Deepali Goel MBA (G)
4. INCREASED COMPETITIVE LEVERAGE:
By focusing resources and unifying the approach to competition
5. RISK REDUCTION:
• Through dependency on local demand
• Wider access to capital
6. GLOBAL KNOWLEDGE AND INFORMATION TRANFERS:
• Transfer of experience, practices, etc…

4. Deepali Goel MBA (G)
LIMITATIONS OF GLOBAL MARKETING
1. Company specific factors:
• Lack of resources and global orientation
• Higher costs of coordination
2. Environmental factors:
• Technology,Legal,Cultural
3. Market factors:
• Customer need differences
• Channel
4. Product factors:
• Over standardization may result in nobody’s satisfaction

5. Deepali Goel MBA (G)
INDUSTRY GLOBALIZATION DRIVERS
1. MARKET GLOBALIZATION DRIVERS:
It depends on the nature of customer behavior and the
structure of channels of distribution. Some common market
drivers are:
• Common customers needs
• Global customers and channels
2. COST GLOBALIZATION DRIVERS:
It depends on the economies of the business. These drivers
affect production location decisions, as well as global market
participation and global product development decisions.
Some of these cost drivers are:
• Global economies scale
• Fast changing technology
• Differences in country costs
• High product development costs

6. Deepali Goel MBA (G)
3. GOVERNMENT GLOBALIZATION DRIVERS:
Rules set by national governments can affect the use of
global strategic decision making, such as
• Favorable trade policies
• Compatible technical standards
4. COMPETITIVE GLOBALIZATION DRIVERS:
It raises the globalization potential of their industry and spur
the need for a response on the global strategy levels.
Common competitive drivers include:
• High exports and imports
• Competitors from different continents and countries
• Interdependent countries
• Global competitors

7. Deepali Goel MBA (G)
MERGERS AND ACQUISITION
DEFINITIONS:
• Merger: Two organizations agree to join together and
pool their assets in a new business entity. Both of the
previous ‘disappear’ into the new organization. Shares in
the previous entities are commuted into new
stock, usually revalued to account for the new market
value.
• Acquisition: It is a joining of unequal partners.
A large organization purchases all (or a controlling share
interest ) in a smaller business and then subsumes it into
its structure.

8. Deepali Goel MBA (G)
Difference
In the pure sense of the term, a merger happens
when two firms, often about the same size, agree to
go forward as a new single company rather than
remain separately owned and operated. This kind of
action is more precisely referred to as a "merger of
equals." Both companies' stocks are surrendered,
and new company stock is issued in its place. For
example, both Daimler-Benz and Chrysler ceased to
exist when the two firms merged, and a new
company, DaimlerChrysler, was created.
•CHRYSLER WD AMC—acquisition
•DAILMER N CHYRSLER---merger

9. Deepali Goel MBA (G)
• When a company takes over another one and clearly
becomes the new owner, the purchase is called an
acquisition. From a legal point of view, the target
company ceases to exist and the buyer "swallows" the
business, and stock of the buyer continues to be traded.
Few E.g. of successful M&As:
• P&G Acquires the Gillette Company: Under terms of the
agreement, unanimously approved by the board of directors of both
companies on January 27,2005 P&G has agreed to issue 0.975
shares of its common stock for each share of Gillette common stock.
The transaction is valued at approximately $57 billion (USD) making
it the largest acquisition in P&G history
• TISCO acquires Nat steel: Tata Iron and Steel Company Ltd (TISCO)
has acquired Singapore-based steel company Nat steel ltd by
subscribing to 100 per cent equity of its subsidiary Nat steel Asia
PTE Ltd (Nat steel Asia).
• SBC Acquires AT&T: SBC Communications Inc. has acquired AT&T
Corp. in a $16 billion deal that would create the nation's largest
communications company

10. Deepali Goel MBA (G)
Varieties of Acquisitions
• Agreed Acquisition: It is where the directors of the
target company accept that the offer for the shares are in the best
interest of the share-holders and they accordingly recommend that
shareholders accept the price offered . e.g -walls n Heinz….Colgate
n Palmolive…hotmail n Microsoft
• Hostile Acquisition: It is an attempt to acquire a
controlling shareholding in a public limited company which is not
recommended by the target company’s directors. In this
case, acceptance of the offer price by shareholders represents a
difference of opinion(….future capital structure or leveraging on
debit equity structure…voting rights e.g.: acquisition of ITC by
BAT…R&D e.g. d attempted acquisition of RANBAXY by ELI LILY
…German remedies acquisition of septica Indonesia between
directors and shareholders, and questions are often raised as to the
extent to which directors are or are not acting in the shareholders’
best interests.

11. Deepali Goel MBA (G)
Advantages of M&As
• Market Entry: M&As are often used as a method for entering and
servicing a new national market.
• Market Share: M&As can increase market share by combining the
market shares of the two businesses…e.g.-> lakme n lever LLL converted to
TRENT
• Product and Market portfolio: M&As can be used to increase an
organization’s product portfolio, thus rendering the business more robust in
the event of trauma in one or more of its product or market sectors….glaxo
smith Kline beecham
• Reduction of competition: Competition can be reduced if the
integration target is a competitor…coke over to Parle
• Leveraging of core competences: Control can be gained of key
inputs and brand names can be leveraged…glaxo smith Kline beecham….
ARZOO was sold to sabeer bhatia
• Access to supply or distribution channels: Backward and
forward integration can improve access to resources and customers
respectively.

12. Deepali Goel MBA (G)
• Product development: New products can often be acquired
more rapidly than could be achieved by the internal R&D function.
• Technology Acquisition: New technology can be
acquired, such as that employed in production or IT applications….new
Holland acquired CAT subsidy of Germany
• Economies of scale and scope: these can be
achieved, especially if the integration involves an increase in capacity.
• Resource utilization: Resources can be successfully and fruitfully
deployed, such as underused cash deposits.
• Reputation enhancement: Reputation can be enhanced if the
acquisition or merger is with a business of some repute in a key market or
with a key stakeholder group.

13. Deepali Goel MBA (G)
What causes Failure?
• Lack of research into the internal and external environmental
features of the target company( and hence incomplete knowledge).
• Cultural incompatibility between the acquirer and the target-
especially important when the two parties are in different countries…
COMPAQ n Hp lead to cultural diff leading to resign
• Lack of communication within and between the two parties.
• Loss of key Personnel in the target company after the
integration.
• Paying too much for the acquired company and
hence overexposing the acquiring company to financial risk…standard
chartered n ANZ grindley
• Assuming that growth in a target company’s
market will continue indefinitely- market trends can fall
as well as rise…. Smirnoff US are are in losses…