Marketing localization

Dave Kaup | Nov 8, 2011

Name of the Game

In a recent study "Localize to maximize Channel effectiveness" The Chief Marketing Officer Association notes the following :

“Localization is the name of the game for national brands with significant field, channel, or network marketing organizations,”states Donovan Neale-May, executive director of the CMO Council. “The CtoB mindset of today’s market requires brands to move to digital platforms that allow them to customize messages or images,  governance and deliver multi-lingual, multi-cultural campaign executions to diverse audiences that can vary by household, street, neighborhood, postal code, community or county line.”

Marketers, agencies today have over 32 channels of communication available vs only a dozen ten years ago. Choosing the optimum mix of channels combined with the process of selecting the appropriate media mix, especially across multinational markets, is a herculean task and one that today's CMO are accountable for driving results.


“Today’s CMO is presented with a growing number of unique challenges and opportunities. The proliferation of digital media is allowing national brands to connect one-on-one with consumers at a local level, but communicating the brand promise cost-effectively and in a timely manner at the micro-level remains a challenge,” said Philip Alexander, President and CEO of Brand Muscle. “By the time the consumer enters your store, it’s likely he or she has already made a decision based on some form of online research. This presents a significant opportunity for companies with field, channel or network marketing organizations to improve the value of their creative and marketing assets by impacting consumer demand prior to purchase. As the report suggests, we too have seen an escalation in our client’s demand for our technology based tools to easily create local microsites, social media content, electronic messaging, local events and online advertising.”


The challenge of developing an effective creative strategy that resonate withing multicultural markets especially with new products at the micro level is essentially the key effective communication especially through digital media.


According to a recent press release from the CMO Council...


— Nearly 50 percent of marketers believe localized marketing is essential to business growth and profitability, particularly as it relates to demand generation and sell-through of products and services. — Just 27 percent of marketers have embraced local marketing automation platforms, resources and tools compared to 62 percent who either don’t have or only now evaluating these options. — a significant 24 percent of marketing respondents allocate over 50 percent of their marketing and merchandising budgets to local programs; another 42 percent spend between 20 and 50 percent of the budgets on local marketing. — only 36 percent of marketers have a formalized process or system for tracking the impact of national brand advertising on local market development and customer acquisition. some 61 percent either don’t measure this or have an ad hoc system for tracking national advertising effectiveness. — Cable and broadcast television, local magazines, and radio reportedly deliver the least return on spend compared to top performers like local events, direct mail or FSIs, local partner or channel web sites, social networks and electronic messaging. — Factors that most influence localization of marketing messages include demographic (45 percent); geography/location (43 percent); socio-economic (30 percent); psychographic (27 percent); cultural (22 percent); shopper-graphic or buying history and behavior (20 percent); as well as language (19 percent). — Major obstacles or challenges to marketing localization include understanding local market dynamics or variables (31 percent); finding knowledgeable local market resources or experts (23 percent); and determining the right cost/benefit models when it comes to spend (23 percent). — Top benefits and competitive advantages from localized marketing strategies and programs include: 1) greater customer relevance, response and return (67 percent); 2) better customer conversations and connectivity (40 percent); 3) improved loyalty and advocacy (29 percent); 4) brand differentiation, distinction and preference (27 percent).


“The CMO Council’s Localize to Optimize findings are in exact alignment with the advantages that our breakthrough ‘human kiosk’ solution delivers,” said Simon Wilson, CEO of The MediaTile Company. “We deliver the fusion of interactive digital signage and remote expert agents available for live face-to-face consumer engagement: a brand solution for localized, personalized and interactive marketing.”Wilson added that, “The Human Kiosk cost-effectively and efficiently facilitates digital distribution of not just marketing content, but also the ‘power of persuasion’ of expert human conversation. In so doing, it also overcomes the top ranked obstacles to localization –finding knowledgeable local market experts and affordably understanding local market dynamics even down to the individual consumer level.”


The CMO Council notes that advances in media, buying, tracking and reporting systems using the Internet are introducing higher levels of transparency, accountability, reporting and measurement to co-op, localized and network marketing programs on a grassroots level. Centralizing the origination of localized marketing content and programs also delivers significant cost savings, assures greater brand integrity, reduces errors and improves time-to-market. In addition, localized marketing support drives participation, interestand enthusiasm in the field, boosting sales effectiveness and closure.