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How Successful Brands Win at Local Marketing: 3 Modes of Local Marketing Execution White Paper
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How Successful Brands Win at Local Marketing: 3 Modes of Local Marketing Execution White Paper


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According to Gartner, by 2015, companies that focus on integrated processes for local marketing enablement will increase revenue by 15-20%*. …

According to Gartner, by 2015, companies that focus on integrated processes for local marketing enablement will increase revenue by 15-20%*.

Kimberly Collins, Gartner Research, “Top 10 Marketing Processes for 2012,” March 2012.
In this paper you will learn:
Why local marketing matters
The disconnect between the importance and execution of local marketing
Challenges marketers face with the always-connected consumer, as well as solutions
3 modes of local marketing execution
Plus, tips on how to get started, including a checklist to determine if an Enterprise-Level Local Marketing Automation Platform is the right solution for your business.

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  • 1. 1THREE MODES OF LOCAL MARKETING HOW SUCCESSFUL BRANDS WIN AT LOCAL MARKETING WHITEPAPER3 MODES OF LOCAL MARKETING EXECUTION PAPER INTENDED FOR: BUYING STAGE: » Education CONSIDERATION PHASE: » Local Marketing Technologies AUDIENCE: » Responsible for National Branding, Channel Marketing, and Advertising FOCUS: » Local Marketing Best Practices » Local Marketing Automation Implementation Planning ROLE: » Decision Maker » Influencer » LOCAL MARKETING MATTERS » 3 MODES OF LOCAL MARKETING EXECUTION » HOW TO GET STARTED
  • 2. 2THREE MODES OF LOCAL MARKETING WHITEPAPERLOCAL MARKETING MATTERS National brands have recognized that local marketing is a critical area of competitive advantage, and with good reason. According to Gartner, by 2015, companies that focus on integrated processes for local marketing enablement will increase revenue by 15-20%.1 Consider these facts: • 77% of smartphone-driven retail purchases are completed offline/in-store2 • 92% of searchers of local business info on social networking sites do so on Facebook3 • Just 22% of brands are able to measure and report ROI on the majority of their local marketing campaigns4 DISCONNECT BETWEEN IMPORTANCE AND EXECUTION OF LOCAL MARKETING These numbers are hard to ignore and while marketers have definitely taken notice, there is still a disconnect between how important they think local marketing is and their actions.The CMO Council found that 59 percent of marketers believe local marketing is essential to driving business growth and profitability, yet only 7 percent feel they have highly evolved local marketing campaigns, complete with measurements and analytics.5 So why the disconnect? Why are national brand marketers struggling with local marketing execution? One major reason is the overall complexity of marketing today, and how that complexity gets amplified when marketing at the local level. “BY 2015, COMPANIESTHAT FOCUS ON INTEGRATED PROCESSES FOR LOCAL MARKETING ENABLEMENT WILL INCREASE REVENUE BY 15-20%.” 1 Kimberly Collins, Gartner Research,“Top 10 Marketing Processes for 2012,”March 2012. 2 xAd/Telmetrics,“Mobile Path to Purchase Study 2013”conducted by Nielsen, 2013. 3 comScore, NeuStar Localeze and 15miles,“Local Search Usage Study,”2013. 4 Balihoo,“2014 Digital Marketing Study ,”January 2013. 5 CMO Council,“Brand Automation for Local Activation,”February 2013.
  • 3. 3THREE MODES OF LOCAL MARKETING R THE ALWAYS-CONNECTED CONSUMER IS IN THE DRIVER’S SEAT, MAKING MARKETING MORE COMPLICATED In today’s digitally fragmented world, the rise of the always-connected consumer has changed marketing forever. Gone are the days when consumers watched the same TV programs, read their local Sunday papers, and went to the yellow pages to find a plumber. Back then, marketing used to be driven by brands, and brands had it relatively easy. National brands relied on mass-market “push” advertising through a fairly limited number of traditional media channels to reach their target audience. Without the Internet, there were fewer ways for consumers to research brands and products – consumers obtained information through ads, word-of-mouth, and in-store visits – which meant brands had limited touch points they had to worry about for influencing consumers’purchase decisions. But marketing is much more complicated in today’s digital world. Now, the always-connected consumer drives marketing. Their shopping behavior has changed. They research products and make purchase decisions by actively“pulling,”or seeking out, relevant information – when they want it and where they want it – through a multitude of complex digital media channels and devices. The average consumer today checks 10.4 information sources before buying.6 This means the number of consumer touch points that brands must reach in order to influence consumers has skyrocketed, making the marketer’s job much more difficult, and requiring a higher level of marketing sophistication. REQUIREMENTS FOR SUCCESS REQUIREMENTS FOR SUCCESS HOW CUSTOMERS USED TO FIND LOCAL OUTLETS HOW CUSTOMERS FIND LOCAL OUTLETS TODAY • $$$$ • Limited creative • Limited time • No technology • $ • Web development • SEO • Paid search • Social media • Content marketing • Email marketing • Mobile marketing • Significant time & technology
  • 4. 4THREE MODES OF LOCAL MARKETING LOCALMARKETERSCAN’TKEEPUPWITHMORESOPHISTICATEDDIGITALMARKETING Whilenewdigitalmediachannelshavecreatedmoreopportunitiesfornationalbrandstobettertargetandreach consumers, they’ve created a huge headache at the local level. Local marketers (channel partners, franchisees, resellers, agents, etc.) simply can’t keep up. They don’t have the knowledge or the time to successfully plan or execute new, more sophisticated digital marketing capabilities. For national brands that rely on local marketers to play a key part in their marketing distribution model, this is a big problem. When surveyed, only 4% of national brands rank local affiliates as excellent at marketing.7 HOW CAN NATIONAL BRANDS OVERCOME THE CHALLENGE? LEARNING FROM THE RECENT PAST So how can national brands overcome the challenge of executing more sophisticated marketing at the local level? To answer this, it’s helpful to understand how leading brands – and Balihoo – have approached this in the recent past, and what lessons have been learned. Originally, the natural strategy was for national brands to help local marketers by providing them with the tools, education, and training necessary to easily customize and execute local marketing campaigns. This was done in an ad-hoc fashion by the brand or through brand-selected technology solutions, like Balihoo’s. But the results of this strategy were revealing: No matter how comprehensive the solution or how easy the tools were to use, only a small percentage of local marketers (usually far less than 20%) engaged with the national brands’ programs. And those local marketers that did engage chose the tactics that they were most comfortable executing – traditional media and in-store signage/ promotional materials. They were either stumped or too intimidated to engage in many of the newer, digital media channels, so they defaulted to using what they already knew and had used for years, thereby hindering the success of any local campaign. This major lesson caused leading national brands and Balihoo to adjust their strategies. As a result, a best practice has emerged that uses up to 3 different strategic, yet complimentary, modes for local marketing activation. Local Marketing Automation = The technology that allows national brands to execute, automate, and measure local marketing activity in conjunction with or on behalf of their distributed local channel to drive revenue. 6 Google/Shopper Sciences,“Zero Moment of Truth”Macro Study, April 2011. 7 Balihoo,“National Brand Use of Digital in Local Marketing Micro Study,”October 2012.
  • 5. 5THREE MODES OF LOCAL MARKETING 3 MODES OF LOCAL MARKETING EXECUTION To achieve real success with local marketing, especially when digital marketing tactics are involved, national brands need to empower local affiliates to contribute in the best ways they can – but not ask them to do too much – and combine that with what the national brand does best. When brands do this, they see high digital adoption in local campaigns from their distributed network, which leads to higher customer engagement and an increase in top-line growth at the local level. In fact, according to Gleanster’s Deep Dive “Scaling Digital Marketing at the Local Level,” companies that use both offline and online marketing local tactics see 2.5X the year over year (YoY) growth compared to YoY growth of companies that use offline only. Successful brands, depending on their corporate objectives, use one or a combination of the following three modes of local marketing: In the “By Local” mode, the lion’s share of decisions are made by the local marketer when executing a local campaign, but they do so within the guidelines set up by the national brand to ensure that campaign assets are brand-compliant. The local marketer adds local intelligence to the effort and makes the decisions on budget, timing, tactics, media channels, and frequency. Example: Local affiliates access a web-based Local Marketing Automation system and customize a newspaper ad for their local markets. They download the ad and place the media directly with the vendor themselves. The“With Local”mode combines a shared execution between the brand and the local affiliate in which the brand makes most of the sophisticated decisions and the affiliate makes some of the simpler, but often extremely valuable decisions in terms of a given tactic. Example:The national brand plans a paid search program at the local market level. Local affiliates access a web- based local marketing automation system one time to opt-in to the program. They can make selections based on their marketing needs, things like monthly budget limits or target offers. The program is then executed by the national brand and results are communicated back to each local affiliate. The“For Local”mode is used when brands have enough quality data and knowledge to act on behalf of the local affiliates. This mode works particularly well for digital tactics where the local marketer likely does not have the skill, resources, or time to properly plan and execute the campaign. Example: Local websites are published by the national brand for every local affiliate using known data. Affiliates have the option to access the web-based local marketing automation system to modify certain areas of the website, but it’s not required. BY LOCAL WITH LOCAL FOR LOCAL
  • 6. 6THREE MODES OF LOCAL MARKETING HOW TO GET STARTED (HINT: YOU’LL NEED LOCAL MARKETING TECHNOLOGY AND GOOD PLANNING) For national brands to execute local marketing well in today’s complicated media environment, some form of automation is required. Successful local marketing requires customization of messaging and graphics across a growing number of media channels, and the only way for a national brand to do this at scale is through the use of local marketing automation technology and data. Local marketing software can range from simple ad builders that automate the process of producing ads for limited media channels, to mid-level platforms that provide customization and basic tracking for a broader number of media channels, to enterprise-level SaaS platforms that enable a full suite of automation modules for all media channels, along with personalization, geo-specific targeting, system-wide metrics reporting and customer service. National brands that view successful local marketing execution as essential to business growth and profitability are moving to enterprise-level local marketing automation platforms to achieve higher efficiency and scale. On the next page is a checklist of questions to help determine if an enterprise-level local marketing automation platform is right for your brand. The answers to these questions will help you identify your needs and frame the discussions you l have internally with stakeholders and externally with potential technology partners and vendors.
  • 7. 7THREE MODES OF LOCAL MARKETING CHECKLIST ARE YOU READY FOR AN ENTERPRISE-LEVEL LOCAL MARKETING AUTOMATION PLATFORM? What is the state of your brand’s current local marketing activities? Do your customers purchase your product/service in their local markets? Do you have a distributed network of outlets, franchisees, channel partners, agents or reps? Is your distributed network capable of successfully marketing your product locally, both via traditional and digital tactics? Is your distributed network doing a good job of representing your brand in local campaigns? What are your objectives for implementing local marketing automation? Ask yourself: Is too much of your distributed marketing process still manual? Does your current system require your national marketers and/or your local affiliates to work with multiple vendors and platforms to execute a single campaign? Are affiliates resisting adoption of current systems and/or marketing strategies? Are there some campaigns your affiliates manage well, but other campaigns that are poorly executed and/ or not adopted? Are you trying to solve for this inconsistency? Are you seeking a solution that can be managed and executed by your corporate team? Do you have digital campaign goals or will you only be executing traditional tactics in local markets (in which case a simple ad builder may be an appropriate solution? What are your overall marketing goals? Increase revenue? Improve customer retention and upsell? Save money? Better support your channel partners and/or local affiliates? Improve marketing efficiency? If you currently use some form of automation, does your current system: Support all types of media relevant to your strategy? Enable consolidation of multiple systems into a single solution? Provide a single sign-on (SSO)? Provide controlled levels of customization to your local marketers/affiliates? Enable brand-managed execution? Deliver aggregated local marketing analytics and reporting to help you determine what is and isn’t working? Which processes are you looking to automate? What benefits will it provide to your brand at the corporate level? What benefits will it provide your local affiliates? How will you define and measure success of your local marketing programs?
  • 8. 8THREE MODES OF LOCAL MARKETING CONCLUSION Successful local marketing is more critical than ever in today’s digital world in which the always-connected consumer dictates when, where and how they want brand information. While national brands recognize how important local marketing has become, they’re failing when it comes to execution because local marketers are too overwhelmed to adopt the digital tactics required to successfully execute locally, no matter how easy national brands make it. National brands that have prevailed at local marketing have taken on the primary responsibility of digital marketing at the local level while empowering their local marketers to continue handling the local marketing tasks they do well. Threemodesofjointnationalbrand/localmarketerresponsibilityhaveemergedasbestpracticesforsuccessfully activating local marketing at scale: “By Local,”“With Local” and “For Local.” All three require an effective use of local marketing automation technology combined with local market data. National brands that have found the right combination of local marketing for their business have seen higher digital adoption in local campaigns across their distributed network, higher customer engagement and an increase in top-line growth at the local level. To learn how your brand can use local marketing activation to increase revenue, retain and upsell customers, save money, and support your local affiliates, schedule a personalized demo today. For more detailed guidance on how to select the right solution for your brand, read Balihoo’s whitepaper: LOCAL MARKETING AUTOMATION: 8 STEPS FOR SELECTION AND IMPLEMENTATION
  • 9. 9THREE MODES OF LOCAL MARKETING 2014 Balihoo, Inc. All rights reserved. @balihoo 866-446-9914 © ABOUT BALIHOO Balihoo is the premier provider of local marketing automation technology. Our cloud-based technology incorporates a full suite of solution modules allowing national brands and agencies to think big and execute precisely. By marrying powerful technology and data (yours and ours) brands and agencies are able to activate national campaigns at scale with personalized, geo-specific targeting and measurable results. Balihoo’s customers quickly realize decreased marketing expenses and increased local sales revenue.