What is “Local Marketing”?

While I’ve heard the term “Local Marketing” used widely in our industry, there isn’t a consensus as to what it means. Generally, retail marketers define their Local Marketing initiatives based on the specific tactic they are using, such as local media advertising, local charities, store-specific promotions or direct marketing. Some organizations even have complete departments or field organizations dedicated to this purpose; however, whenever I ask about the details of these programs, I am met with wide-ranging descriptions of what constitutes Local Marketing. Almost always, these interpretations are far too limiting and ultimately, hamper the programs’ effectiveness.

I define Local Marketing as the strategy and actions that communicate to your customers in a manner, and with a message, that is relevant and meaningful based upon localized differences. The goal of Local Marketing is to drive favorable customer behavior as a result of this more targeted communication.

The key dimensions of Local Marketing are: Segmentation, Media and Messaging. Segmentation refers to how one group of customers is differentiated from another. Media refers to the form of communication to be used – local advertising, POP signage, coupons, direct marketing, etc. Messaging is what you say and how you say it in a manner that compels the targeted customers to act.

The success of any Local Marketing initiative depends on these elements working together, yet the sequence by which each is developed plays a key role in the initiative’s long-term effectiveness. Segmentation comes first, followed by Media selection, and then Messaging. A fourth dimension, Measurement, is essential to drive the growth and evolution of the Local Marketing effort.

1. Segmentation identifies “who” you are targeting.
2. Media selection determines “how” you will deliver your message.
3. Messaging establishes “what” you are communicating.
4. Measurement collects data that can be used to guide future cycles of the program.

Local Marketing programs can be initiated without complex segmentation and messaging, while using a single media type. However, these programs should be designed to support a more sophisticated, data-driven messaging system that will evolve over time.

Too many companies are failing in their Local Marketing initiatives because they start with mass-marketing tools and processes but can’t support further segmentation as the need becomes apparent. Local Marketing is not an event or a campaign, but instead should be a continual and evolving process.

In my next blog post, I will explore each of the Local Marketing dimensions, along with my thoughts about state-of-the-art of Local Marketing tools and processes.