Local Store Marketing (LSM), also known as "neighborhood marketing", is a marketing term that refers to the application of different variables in a business' marketing mix dependent on localized specifications including the consumer, competition, and store characteristics.[1] Word for word, "local store marketing" can generally refer to any marketing techniques a localized business, in any industry, uses to market itself to the area it operates in. For the most part, within marketing and advertising circles, the term "Local Store Marketing" is instead taken as a whole to define the tactics used by a localized business to supplement a broader marketing initiative being implemented by its corporate owner, its franchisor, or some other conglomerated parent entity. In many businesses, this "parent entity" is responsible for national or regional marketing initiatives with which it has total control. For the localized business operating under this "parent entity", it specifically will control only marketing initiatives that affect the location itself, paying special attention in selecting those that meet efficiency requirements based on its local customer base, its capabilities, its resources, and the general business environment it operates in.[2]
Local Store Marketing includes a vast array of techniques utilized by businesses everywhere. Some of these include promotion of business in a local chamber of commerce, personlized direct mail or correspondence to local customers, issuing local press releases, hosting events, sponsoring promotions, purchasing ad space in print, outdoor, or local television, etc.[3]