Localisation as a marketing strategy for small retailers

Abstract

PurposeGlobalisation as a competitive marketing strategy can only offer a limited explanation for the behaviour of organisations. This is particularly applicable in the case of business and marketing strategies for small and medium‐sized organisations in the retail sector. Terms such as “localisation” have been coined by researchers but the concept is yet to receive a valid interpretation as a marketing strategy from the perspective of the small retailer. This paper seeks first, to understand how “localisation” impacts on the business practices and marketing strategy of small retailers in Spain and Scotland. Second, the results should help lessen the gap between the concepts of globalisation and the localisation.Design/methodology/approachThis explorative, comparative qualitative paper explores business practices and marketing strategies by small retail business owners in Seville (Spain) and Perth (UK) and the role of localisation, using three key themes – place, people and promotion.FindingsThis paper suggests that place attractiveness, word‐of‐mouth customer‐to‐customer marketing, customer service beyond simple product advice, community embeddedness and informal but meaningful interpersonal relations between shop owner and customers are some of the key pillars of the “localisation” strategic marketing approach pursued by small retailers in Perth and Seville. This indicates a counterbalance to globalisation.Originality/valueThe pursuit of a deliberate localisation approach by small retailers may be key to their sustainable competitiveness in the knowledge that these elements would not be easily replicated by larger or global retailers.