PR Fuel: When Expanding, Go Local

Why did a Los Angeles-based retailer hire a New York-based boutique public relations firm to handle the launch of its stores in a Southern city?

That's the question my friend, a Southern public relations professional who lost out on the account, brought up in a recent conversation.

"I got the impression that the company thought we were all hicks down here," my friend said. "Clearly, they don't understand the culture or the media landscape in the area."

My friend brought all of this to my attention because she was gloating.

"The store is empty, and I should know because it's two blocks from my office. [The retailer] has received two small media mentions. I would have gotten them on local television, some exposure in the newspaper, and probably a few radio spots. You have to go local if you're going to succeed in a town like this," my friend said.

I can't argue with my friend's logic. Hiring a local PR firm in this instance would have made sense because the retailer does not have a national presence, thus it's unlikely that the vast majority of its new market's population is familiar with the company. It's not like when Krispy Kreme expanded throughout the country, causing a media sensation. In that case, the company already had national brand recognition and its PR simply snowballed from one area to the next.

Hiring a local PR firm when expanding into a new region makes sense for a number of reasons, including:
1. Every state, city, town and county has its own personality, but there's one thing that people typically have in common: They're provincial. I've lived in rural areas, the suburbs and the city, and the level of provincialism has been the same everywhere. At heart, people are "locals" wherever they live, and that means a distinct, collective personality has evolved. It makes sense for a local, rather than an out-of-towner, to come up with a strategy to promote and market to this personality.

2. A good deal of public relations is about relationships. Local PR people have relationships with the local media. They know the television and radio producers, and they know the reporters and editors. An out-of-town firm may have contacts in the area, but it's doubtful it will have strong relationships built by face-to-face time with the local media. The out-of-town firm is not there to watch the local news, listen to the local radio or hear people talk about what is in the local newspaper. The firm may discount the power of one local media outlet while believing another is more powerful because the firm is looking in from the outside. Would you ask a New Yorker what the best local media outlet in Dallas is?

3. Because journalists are locals, they're also provincial. They may question why an out-of-town company expanding to their area is not utilizing local service providers such as PR firms. They may wonder why they're suddenly being called by a PR firm in Chicago working for a Seattle-based company opening a store in Orlando. Again, it's about relationships, and journalists don't see much need in cultivating relationships for PR people if it's a one-shot deal.

4. Local PR firms can act more quickly if there are problems because they're already on the ground. They can tap their resources more easily to resolve problems, saving time because they don't need to search for the right contacts to remedy a situation. I was at an event a number of years ago in Baltimore and a New York-based PR firm was handling the details. The DJ hired to work the event failed to show up and the PR people were on the phone to New York. The PR people in New York were calling back to other people in Baltimore looking for a DJ. By the time the situation was fixed it was too late and the event had pretty much failed. A Baltimore-area PR rep I was hanging out with got a good chuckle out of all of this. "I could have had a DJ here in 20 minutes," he said.

5. It's typically cheaper to hire a local PR firm. There are little to no travel costs and fewer long distance calls to be billed for. The locals already have relationships with the local media, so you can bet they won't be spending as much money on wining and dining journalists whom they already know. The locals also know where to obtain services more cheaply, something that is particularly true when you're looking to rent out some kind of space for an event. And, of course, pricing for PR services varies from area-to-area. Chances are the locals are going to be cheaper than the alternatives of a national firm or an out-of-town boutique.

6. Locals know more people in the area. I know that sounds simple, but imagine a restaurant or store opening. You want to pack people in to create a buzz. PR people help you bring people in by inviting friends, family and professional contacts. If I had to do PR for a nightclub opening in Seattle I could invite about five people I know. Do it in New York and I've got the place packed.
Expanding a business to a new region can be an exhilarating, exhausting and scary process. By hiring a local PR firm, you can at least have the peace of mind that someone intimately familiar with the market is in charge of one of the most important facets of the expansion.


Ben Silverman is currently the Director of Development and a Contributing Editor for Indie Research (http://www.indieresearch.com), an independent investment research service. Previously, Ben was a business news columnist for The New York Post and the founder/publisher of DotcomScoop.com. He can be reached via email at bensilverman@gmail.com.


   
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