It occurred to me that my previous posts on the subject of Local Marketing have been directed at the ‘what’ and ‘how’ of local marketing, but really didn’t address the ‘why.’ It is easy to assume that most people appreciate the value of local marketing; however, I think in reality many are far less certain.

Most local marketing activities are initiated by individual store managers or franchisees on trial and error basis to increase revenue during slow periods or increase loyalty with the local consumer. Their methods are often not ideal, and their means to measure results are limited; however, when they find something that works for them, they stick with it.

I see the rationale for local marketing falling into several distinct categories:

• Coverage: Some local marketing approaches provide an added medium for communicating with customers that aren’t covered by national campaigns (i.e. flyers handed out to local businesses or schools)
• Conditions: Local marketing provides a means to speak to specific market conditions (i.e. competitor is offering a special across the street, local high school makes the playoffs, etc.)
• Community: Local marketing enables store managers to customize the store experience to match the interest and tastes of local customers. (i.e. Spanish signage in heavily Hispanic areas, etc.)

While the first two reasons tend to be the primary drivers for campaigns, I am beginning to believe that the third may be the most important. Changing consumer interests, fed by social media trends, are leading buyers to expect a more personalized experience at the retail locations they frequent. These ‘New Consumers’ are favoring locations that have a buzz; how you create and maintain the buzz is the challenge.

In my next post, I will share ideas that I have collected about New Consumers. While much of this information offered by ‘experts’ is speculative, it does raise some interesting possibilities. And now, I’d love to hear from you—what are your thoughts on the ‘whys’ of local marketing?

If you liked this post, you may want to take a look at my commentary on Local Marketing – Setting Goals.