Download Local Marketing Strategies and Measures

Local marketing strategies
and measures
Intensive Internship Program 6.0 ECTS
“Sustainability and Innovation in Rural Development" (SIRD)
2016-05-03, Akademija
Lect. Rasa Rukuiziene
ASU Institute of Business and Rural Development Management
Content
1. Conceptional outlook to local marketing
2. Smart strategies for local marketing development
(http://gaia.adage.com/images/bin/pdf/AALocalMarketingwpWeb2.pdf)
3. Local marketing measures
1. Conceptional Outlook to Local Marketing
What is Local Marketing?
• Local marketing— also referred to as neighborhood marketing —
specifically targets the Community around a physical place.
• Promotional messages are directed to the local population, rather than the
mass market.
• Local marketing types:
• Local business directly contact consumers through mail, in-town events, local
team sponsorships, or advertisements in the town paper.
• Attract new customers, but to drive repeat business, a successful local
marketing push allows a to stake out a significant presence in local consumers’
mental maps of their communities.
1. Conceptional Outlook to Local Marketing
If it’s possibility to make place branding,
then local marketing is working!
What is LOCAL MAREKTING?
… is a merely application
of product brand in place
Products’ differentiation → Products’ positioning → Unique products
2. Types of Local Marketing Strategies – Global, Local, Glocal
„Think global, act local“
Types of Local Marketing Strategies –
Global, Local, Glocal
„Think global, act local“
• Local marketing strategy has orientation on adapting a
product/service to a particular culture, language, developing a local
appeal and satisfying local needs.
• Differentiation - differences in customer preferences and income
across target countries takes into account specific demand.
• Localism
• Quality and values
• Local brand recognition
• Competition from both successful domestic products and
international brands
• High costs of trade create separate markets
Types of Local Marketing Strategies –
Global, Local, Glocal
„Think global, act local“
• Global marketing strategy has orientation on maximized standardization,
homogenization and integration of marketing activities across markets
throughout the world (Kotler, 2009).
• Global marketers address a number of issues in their marketing strategy
to ensure their brand will be successful worldwide.
• Examples of such issues include differences in the economic, political,
social and cultural environment around the world.
Types of Local Marketing Strategies –
Global, Local, Glocal
„Think global, act local“
GLOBAL MARKETING STRATEGY BUILDS:
• Undifferentiation and convergence in customer preferences and
income across target countries with economic development and
trade.
• Takes into account mass demand.
• Globalism.
• Quantity.
• International brand awareness.
• Cost benefits from standardization.
• Falling costs of trade with greater globalization.
Types of Local Marketing Strategies – Global, Local, Glocal
„Think global, act local“
• Glocalization - a way to supplement globalization and
localization synergy ally and strategically;
• a system to manage the approach to the glocal market
(global/local market);
• the capacity to remain rooted strongly in the local reality,
also facing the global market;
• the chance of articulating in global and local (glocal) key
the chain of the value (system of activities developed by
the enterprise to plan, produce, sell his products or
services);
• a method, which allows the local or global enterprise to
arrive in optimum way respectively to the global or the
local market.
Types of Local Marketing Strategies – Global, Local, Glocal
„Think global, act local“
Maxims for Local, Global and Glocal
Local
Thinking locally, acting locally
Global
Thinking globally, acting globally
Glocal
Thinking globally, acting locally
GLOCALIZATION appeared in the late 1980s in Harvard Business Review
articles, written by Japanese economists, and comes from the Japanese word
dochakuka.
The Japanese ideographs “do”, “chaku” and “ka” means respectively
“land”, “arrive” and “process of”.
Roland Robertson, credited with popularizing the term, describes glocalization
as „the tempering effects of local conditions on global pressures” and that it
means “the simultaneity – the co-presence – of both universalizing and
particularizing tendencies” (Khondker, 2004).
Types of Local Marketing Strategies – Global, Local, Glocal
„Think global, act local“
Thomas Friedman (Friedman, 1999)
defines glocalization as „...“:
• the ability of a culture, when it encounters other strong
cultures, to absorb influences that naturally fit into and can
enrich the culture, to resist those things that are truly alien,
and to compartmentalize those things that, while different, can
nevertheless be enjoyed and celebrated as different”.
• the art of attaining a fine balance of assimilating foreign
influences into a society that add to its diversity without
overwhelming it.
Types of Local Marketing Strategies – Global, Local, Glocal
„Think global, act local“
COMMUNICATION STRATEGY
PRODUCT STRATEGY
Standardized
communication
Localized
communication
Global strategy:
Glocal strategy:
uniform product/uniform uniform
Standardized product info
product/customized info
Localized product
Glocal strategy:
Local strategy:
customized
customized
product/uniform info
product/customized info
Glocal strategy: customized product/customized
info
Types of Local Marketing Strategies – Global, Local, Glocal
„Think global, act local“
Phillip Kotler (2009) elaborated certain advantages
of glocal marketing:
• Consumers feel that the brand is relevant to them and is tailored
to their needs and wants.
• There is harmony and balance between the different levels of
marketing activity: strategic, tactical and operative.
• Brands gain greater market share.
3. Territory (spatial) marketing & Place brand theory
Place marketing is largely dependent on construction,
communication and management tools of place image.
Place branding constructs are active in population minds through these
elements (Crang 1998; Holloway & Hubbard 2001):
1. Place plan, urban design and convenient infrastructure.
2. Variety of activities (entertainment) in place.
3. Population habits to use specific places.
4. Variety of information about place representation – TV news, statistic
reports, Internet sites for tourism, films, novels, paintings, etc.
3. Territory (spatial) marketing tools
for regional development
Territorial (spatial) planning tools
Place branding
Place image
National Rural Development Program
2014-2020
Sustainable development tools
3. Territorial (spatial) planning
Spatial planning of regions is based on sustainable development, and
ensures a rational use of territories, as an effective social–economical
development with max preservation of natural resources and
landscape.
The basic components of spatial composition are (Kavaliauskas 1995):
1) nature frame as an integrated network of natural ecological compensation
territories ensuring ecological equilibrium of landscape, natural links
between preserved territories and other environmentally important areas
for wild life migration;
2) urban frame as a territorial system of centres and axes of active
economical-cultural development with strongly transformed natural
environment and highly developed technical engineering infrastructure.
Conclusions of observation territorial (spatial) development
in Lithuania
3.a & 3.b
Conclusions for
Territorial (spatial) Development in Lithuania ...
... stands on a concept of Sustainable Regional Development
as a key for regional planning
•
•
•
•
•
•
to facilitate the elaboration of the general local development and land use priorities;
to determine the environmental protection conditions;
to form a system of residential, productive and infrastructural areas;
to regulate employment of the population;
to reserve the territories for expansion of activity of private and business entities;
to provide measures and restrictions ensuring a rational use of natural resources,
ecological equilibrium in formation of natural frame, preservation of natural and cultural
heritage;
• to envisage means for improving the urban territories under buildings and living and
environment quality and formation of a system of green areas for public use;
• to reserve territories for developing the objects necessary for communication corridors,
engineering and service infrastructure (ex., FEZ) and other public needs.
Let’s return to local marketing!
and place branding
Local marketing uses powerful management tools
Local marketing mix – 7P
1P- PLACE&PRODUCT
Products’ brand
Products’ variety
Quality of products
Location of products
Services
Cultural objects
Safety
Quarantees
3P- DISTRIBUTION
Sales places
Communication network
Logistics network
5P - POPULATION
People
Education
Activity
Entrepreneurship
6P- PROCESSES
Infrastructural
coherence and efficiency
Welfare
2P- PRICING
Infrastructural investments
Real estate price
Salaries
Taxes
Investment to industries
Credit loans
4P- STIMULATION
7P- PHISICAL EVIDENCE
Advertising
Promotional events
Personel selling
Public relations
Buildings
Surroundings
Colors & Symbols
Local marketing tools – Place branding
Place branding - a tool to build regional reputation
Place brand is not immutable,
and can be changed by the actions of it’s leaders and local people
(Shimp, 2010).
Place branding includes 3 things in local marketing:
1. Reference to designed identity of a region (the look of the place,
products, its logo, its livery and communications, etc.).
2. Reference to regional culture.
3. Reference to the regional reputation (senses about region).
3. Local marketing measures
3. Local marketing measures
Nations Brand Index (NBI)
– Barometer of global opinion about country upon 6
dimensions (compounded by British investigation company in
2001):
•
•
•
•
•
•
•
exports;
people;
governance;
tourism;
culture and heritage;
imigration;
investments.
Source: http://bavconsulting.com/nationbranding/?gclid=CJaRn8advcwCFU4o0wodD7EDEw
Avoid “city boosterism” sindrom in rich
cultural territories!
Thank You for attention …
Kaunas sharing …
LITERATURE REFERENCES
• Faludi, A. (ed.). 2002. European spatial planning. Lincoln institute of land policy, Cambridge.
• Kavaliauskas, P.2008. A concept of sustainable development for regional land use planning: Lithuanian
experience. Technological and economic development of economy Baltic journal on sustainability. No.
14(1), p. 51–63. http://www.tpa.vgtu.lt/upload/ukis_zurn/2008_01_psl_51_63.pdf
• Place branding theory. Chapter 4.
http://dissertations.ub.rug.nl/FILES/faculties/rw/2008/m.kavaratzis/05-c4.pdf
• Shimp, T. A. 2010. Advertising, promotion and other aspects of integrated marketing communications.
Textbook, 6th edition. USA: Cengage Learning. (key words for e-search: simon anholt six areas of
national image)
• Anholt, S. 2010. Nation brand.
http://www.exchangediplomacy.com/wp-content/uploads/2011/10/1.-SimonAnholt_Beyond-the-Nation-Brand-The-Role-of-Image-and-Identity-in-InternationalRelations.pdf