Small businesses need to fine-tune their local marketing strategy because it’s no longer a case of local supplier A versus local supplier B: it’s about local versus national, small versus big. Large companies – including Vodafone, HP, Parcelforce and Barclays – are actively targeting local audiences through local mediums. They are on the airwaves, in print and meeting your prospects at regional exhibitions. They also have teams of professional marketers focusing on these customers – experts exploiting superior data and tools.
Though all is not lost: local businesses have an edge over the national competition: they’re ‘streetwise’, knowledgeable, informed of what’s going on in the locality and this can be very advantageous. But it needs to be leveraged and any one of the following areas may be where you’re slipping.
The local wide web
Having a website is crucial – 85 per cent of business people have access to the Internet, according to research carried out by NOP – but a website’s not worth the expense of setting up and running if you’re not driving people to it. Search engine marketing is complex but Yahoo, Google, Kellysearch et al have made a concerted effort to come up with simple solutions.
That search is becoming more pertinent on a local level is evident by Overture’s (Yahoo’s business arm) move into this market with the development of a specially designed product. Ruud Smeets, general manager for Local at Overture, comments, “We know that people are using search engines to look for local content – 30 per cent of searches are basically Yellow Pages queries.”
According to Smeets, with Overture’s current ‘precision match’ technique it’s difficult to target searchers in their area. He explains, “if you input ‘plumber, Manchester’ it will pick up on plumber and return plumbers in London as well as Manchester. Our new local service will target more directly and lead to higher conversion rates for SMEs.”
Smeets continues, “The aim is to establish a situation which can determine the intent of the user and then direct them either into Overture Local or the web.”
A launch date has not been set but with Google already active in this market in the US it’s unlikely that Overture will delay. Smeets adds, “We’re in the business of driving traffic to websites, we’re good at this, but now we want to drive foot traffic into stores and offline outlets on a huge scale. This will be a killer medium for small businesses.”
Doorstep advertising
Advertising in the regional and local press is a formidable medium for targeting local audiences (see box out on effectiveness page 56). Robert Ray, marketing manager for The Newspaper Society, enthuses, “The main thing for the B2B community is that regional press scores highly in terms of its relevance, and its coverage of real issues. Advertisers have a captive business audience so this is a great place to take the message to market.” Ray states how the increasing sophistication of regional press – reproduction quality and product layering ie. specialist sections, magazines and supplements – is making it increasingly attractive to advertisers.
Advertising in a local directory is another worthwhile investment. In terms of local marketing, BT’s Phone Book has relaunched with a classified section and 171 regional variations. Marc Tonnon, head of marketing and production for The Phone Book is candid about its – or indeed any directory’s – role in a local marketing campaign: “Advertising in the local press or other mediums creates awareness but that ad or leaflet is transient; that’s where The Phone Book comes in: it leverages other marketing to the max.” All companies get a free listing but anything else – from putting the company’s name in bold, to taking out a full page – is advertising, though Tonnon is quick to cite the advantages: “It distinguishes you when a customer needs a certain product or service.”
The wireless approach Like the regional press, radio is a trusted medium but one, it seems, that is under-used amongst local businesses. Brent Coulsons is sales centre manager for Essex FM where he states the ratio between national and local advertisers is 60:40. Coulsons attributes this, in part, to the station’s proximity to London, but adds, “National businesses tend to book airtime earlier, which is squeezing local advertisers out. The former tend to plan ahead and use the medium more effectively whereas a lot of local business advertising is tactical and they tend to come to market too late.” Frequent national advertisers on Essex FM include Dell, HP, Vodafone, Orange, BT and British Gas who’s campaigns are a mixture of B2B and B2C according to Coulsons.
Expense is the main deterrent for local advertisers using the radio but Coulsons is keen to point out its advantages for local businesses, “It allows penetration of the target audience either at work or commuters driving home. Ads can be rotated for different audiences and the content is always more interesting than press ads.”
Finding the sweet spot
Buying lists and building an elaborate database may seem like unnecessary hassle when you’re literally targeting the business around the corner but do you know the business around the corner or what its needs are? Data suppliers are increasingly recognising this need. Take data provider Conduit’s White Van Man database, a nationwide list comprised of 300,000 records, focusing on sole traders, SOHO businesses and SMEs with a propensity to own a van or van fleet.
Steve Willcocks, managing director of Conduit, comments, “This list was created because there was a demand from major van manufacturers and fuel card operators for information on this market. We get large businesses looking for local type information, like how many people in the Hertfordshire area with vans.” Further proof that large, possibly global organisations are swooping in on local prey.
Instead of watching from the sidelines, talk to data houses. Willcocks says, “In the data industry size is the be-all-and-end-all, you must have two or three million prospects but I argue that smaller lists are easier for understanding and analysis which allows you to build empathy with the businesses you’re targeting. DM will be more focused and ultimately you will be in a much better position to start dialogue with those in the sweet spot.” Encouraging news for SMEs lacking the resources to buy or manage extensive data capture.
Exhibitions go regional
In recent months there’s been an addition to the exhibition circuit but you probably didn’t hear about it unless you work in Bristol. B2B West took place last September and was the first of its kind: a platform for companies of all sizes and from all sectors to promote their products and services to SMEs in the local area. B2B West featured 120 exhibitors – including national and local businesses – and over 2000 visitors, 84 per cent of which were senior managers, directors or owners of small businesses in the area.
Bron Ellis, marketing director for Envelope (the organiser), comments, “Trying to target SMEs is challenging but this event brings to you already qualified sales leads who have made an effort to come and meet you. It’s also about regional sourcing, why should you have to go to London when the companies you need to do business with are around the corner?”
The next B2B exhibition is in London (24-25 May) and thereafter will be in Thames Valley (14-15 June), Bristol (20-21 September), Coventry (18-19 October) and Brighton (25-26 October).
Large organisations are already using this medium to great avail. Companies including Parcelforce, Smart, Barclays and RBS are exhibiting at the London event, but the organisers are mindful of this: “We try to keep it a level playing field, no-one’s allowed a huge stand so for a couple of thousand pounds a SME can compete alongside Barclays bank,” says Ellis.
Local marketing has traditionally lacked the sophistication and verve of its national counterpart. But now with national advertisers increasingly targeting local audience, it’s time the homeboys upped their game. To do this,they must use all of the tools and techniques mentioned, as well as the priceless local knowledge that comes with working and living in a community. This doesn’t guarantee your chance of winning the business down the street, but it puts you in the running.
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