Promotional products, also known as promotional ad specialties, allow you to get your company's message across on T-shirts, calendars, or even fine crystal, and your next promotion will make a lasting impression. This article describes critical issues, how to use imprinted products effectively, and where to find suppliers.
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INTRODUCTION
One of the most enduring tactics in the marketer's bag is imprinting a logo or message on a promotional product. Promotional products are so common that even marketing pros often take them for granted. That can be a problem if you use them carelessly, not only because it wastes money but because it means you're overlooking ways to use them creatively in your marketing program.
USES FOR PROMOTIONAL PRODUCTS
The range of products that can be imprinted for promotional purposes seems infinite. At the low end are ballpoint pens, T-shirts, and calendars. The high end typically includes such items as golf bags, cameras, and crystal bowls. Think of an item, and someone can probably put your logo on it. The various uses for imprinted promotional products is almost as broad. They're used as giveaways at trade shows and other events, on-pack and in-pack premiums, container premiums, mail-in premiums, door-openers, dealer-loaders, sales incentives, business gifts, contest prizes, direct-mail premiums, and awards. When the Promotional Products Association International (PPAI) surveyed distributors in 1997, for the first time the survey measured distributor sales by the type of program using the promotional products. Business gifts topped the list at 20%, followed by employee relations and events at 12.2%, trade shows at 8.7%, and public relations at 8.5%.
Here's how the survey found distributor reported their sales of promotional-products media:
- Wearables 27.2%
- Writing Instruments 11.8%
- Glassware/Ceramics 9.4%
- Calendars 7.3%
- Desk/Office/Business Accessories 5.6%
- Recognition Awards, Trophies, Jewelry, Clocks, Watches 5.5%.
- Textiles 5.3%
- Buttons/Badges/Ribbons/Magnets etc. 4.4%
- Automotive Accessories 3.3%
- Other 3.2%
- Sporting Goods/Leisure Products/Travel Accessories 3.1%
- Computer Products 3.0%
- Housewares/Tools 2.8%
- Personal/Pocket-Purse Products 2.7%
- Games/Toys/Inflatables 2.6%
- Food Gifts 2.0%
- Electronic Devices and Accessories 1.3%
EFFECTIVENESS
In 1994, Baylor University studied Mary Kay Cosmetics and American Income Life, two companies that had attempted to determine the value of using imprinted products as gifts to stimulate referrals from current customers. In both cases, customers who received moderately priced gifts bearing the company's logo had higher referral rates than those that didn't (22.3 percent higher for Mary Kay, 24.1 percent higher for American Income Life).
A 1992 survey of people who received advertising specialties revealed that 94 percent of recipients reported positive attitudes toward the advertising company. Some 87 percent were aware of the advertiser's message, and 83 percent reported that they used the advertiser's products or services. The survey was conducted by the Specialty Advertising Association of Greater New York.
CRITICAL ISSUES
To get those kinds of results from a promotion using promotional products, it will help to follow these guidelines:
- Determine overall goals. Promotional products can be used for almost all types of motivation. Some questions you need to ask are: What kind of response am I looking for? At what point will the response justify the budget? What are all the product options?
- Target your audience and determine the scope of the promotion. For instance, you can give away neat items at a trade show, but will you reach the right prospects or are you just clogging your booth with premium vultures?
- Devise strategies to ensure that only your target audience gets involved with the promotion. Sometimes this goal can be achieved through product selection, such as when you motivate golfers with imprinted golf tees and balls. In other cases the means of qualifying to receive the premium can do the trick, such as sending in proofs-of-purchase or requiring that a sales prospect sit through a product demonstration and fill out a questionnaire.
- Make sure the items support your marketing story. With consumer promotions, this usually means tying the promotional product to the lifestyle and self-image of the target audience. One example is Philip Morris's Marlboro Miles incentive. Consumers are rewarded for repeat purchases of Marlboro cigarettes by choosing items from a catalog that includes imprinted items with a rugged cowboy theme.
- Look for items with "legs." Too many promotional products get thrown away as soon as they're opened. Look for useful items that offer repeat opportunities to reinforce your message. This doesn't mean "expensive," as evidenced by the success of refrigerator magnets, Post-it notepads, pens, and calendars.
- Use a comprehensive approach. Many successful promotions involve several stages that build to a crescendo (see Doc. 3010, Premiums/Incentives Core Overview, and Doc. 3020, Strategies for Success). You may use an inexpensive premium in a mass promotion to get people involved, then follow up with other items and strategies. Example: A gasoline company gave away colorful antenna balls to customers who bought a certain amount of gas. Spotters then drove around the city, taking down the license numbers of cars sporting the balls. When a license number was called out at the end of a radio spot, the customer had 24 hours to call in and win a prize. Using this approach added excitement to the promotion, generated word-of-mouth, and ensured that the promotional item was displayed.
- Reinforce other promotions. A leading sporting goods manufacturer gave away imprinted ties to qualified prospects at a trade show. The prospects were invited to the company's suite party and told that if they wore the ties they'd get a door prize and be entered to win a trip to Hawaii. Not only was attendance high at the party, but the ties helped build a sense of community among the prospects.
- Make sure you can deliver. Nothing causes more grief than playing up an imprinted item in an ad campaign only to find that the premium is back ordered or otherwise delayed. Perhaps worse, when the item is defective or quality is inconsistent, you can irritate a lot of people. Such problems can cost you a fortune in rush charges, as you try to make up for lost time.
- Beware the pitfalls. Planning can help here. For instance, buying from an overseas supplier can save a bundle, but count on increased turnaround time. If you need something in a hurry, go for simple imprinting with an item that's readily available. Make sure there's an accountable party at all stages of the process, including fulfillment, and build in ample time for shipping and mailing.
- Consider all the costs. Sometimes an inexpensive item can make for an expensive promotion. For instance, shipping and mailing costs can turn a one-dollar calendar into a two-dollar calendar. A watch may fit your budget until you factor in the price of batteries. Use checklists and common sense, and get advice from your suppliers.
FINE POINTS
Excellent strategies for using promotional products are detailed in the Sales Promotion Handbook published by Dartnell Corp (312-561-4000). The chapter on specialty promotions, written by Richard Ebel of PPAI, was excerpted in the May 1995 issue of Potentials. Here are some highlights:
- Contingency fulfillment. A recipient receives only a part of the promotional item, (example: one half of a walkie-talkie set) and must show up in person or mail something in to receive the rest.
- Peer approval. Example: Top performers in a sales team are given special mouse pads, trophies, or calendars, raising their esteem among co-workers.
- Status conferral. Premiums are used to provide access to a special event or privilege (see "Reinforce other promotions" above).
- Curiosity arousal. Sometimes, the product is intended merely to pique the interest of the recipient. In one business-to-business mailing, executives were sent a small garbage can imprinted with, "Don't throw money away" and a phone number. By calling the number, they reached a recycling company and were told how to save 25 percent on waste disposal.
- Collector appeal. Certain imprinted items, such as prepaid calling cards, have become collectors items, thus increasing their value (see Doc. 3070, Prepaid Calling Cards).
- Influencing the influencers. If you doubt that this works, witness the millions of kids who bug their parents to go to Chevron stations so they can get toys modeled after the talking cars in the company's TV ads.
COSTS OF IMPRINTING
It's difficult to generalize about prices of imprinted products, because they're sold in batches. The number of items imprinted, the base price of the product, and the elaborateness of manufacture all determine the price. Rush service is usually available on a three- to five-day basis for 20-25 percent extra. Otherwise, count on a three-week turnaround. Some simple jobs can be done in 24 hours. Computer technology has made manufacturing simpler, faster, and cheaper, but you can still expect initial charges for any job. Here are the methods of imprinting products, with typical setup fees (charges you can expect to pay to prepare for a print run):
Silk screening, used on T-shirts, hats, mugs, bags, and pens, is the technique for just about anything that's incompatible with a printing press. Expect to pay screen costs of $35-$40 for each color used.
Offset lithography is the modern method for printing everything from calendars to scratch pads. Depending on the complexity of the job, plate charges range from $25 to $200 per color.
Laser engraving is used for imprinting wood or metal items, such as pens. Technology has both enhanced the quality and brought down the price for this process. Up-front costs range from $50 to $100.
Ball printing is used to imprint items with an uneven surface, such as cameras and tools. You can ball-print just about anything, and the initial costs are similar to those of laser engraving.
Embroidery is the fancy method for imprinting garments. Here you'll find "tape" charges of $100-$200.
Etching and engraving. Etching, which is done with chemicals, and engraving both entail cutting into such materials as glass, metal, or wood to achieve a luxurious, textured image. Make sure you have an experienced vendor, because poor workmanship in these two crafts can be all too obvious. Costs depend on the depth and area of the etching or engraving.
SELECTING A SUPPLIER
The scope of the promotion, your budget, and the level of in-house capability will determine what type of supplier to use. Some companies turn over the entire job to a promotion agency, while others deal with middlemen or directly with manufacturers. There's a dizzying array of options. Bear in mind that the types of companies listed here may combine a variety of promotional functions, including manufacture, imprinting, creative services, and fulfillment. Thus the categories should be used as a reference point, rather than as strict definitions of who does what.
- To find a supplier, go to #9520, Supplier Finder.
- Promotion agencies. The creme de la creme of suppliers for those who can afford them. Agencies can handle all facets of a promotion campaign, including the selection and manufacture of imprinted products. Most won't look at clients with budgets under $50,000.
- Wholesalers have become versatile players in the promotion game, offering a range of services. They may stock products from a number of sources and can customize them to meet your needs.
- Manufacturers typically have catalogs full of imprinted products. Makers of big-ticket items like electronics usually have special-markets departments that can customize products to your specs. Buying direct has its advantages, but because manufacturers usually represent only their own lines, you should talk to more than one.
- Master reps act as special-markets departments for a number of companies.
- Premium reps typically are smaller concerns that represent manufacturers or wholesalers. They often have relationships with dozens of suppliers and work on commissions.
- Promotional products distributors can both obtain promotional products and develop programs; they generally make money by marking up products.
- Fulfillment houses do everything from qualifying recipients to tracking results, though their principal function is shipping the items to recipients.
DIRECTORIES OF SUPPLIERS
- Incentive magazine's annual directory includes many imprinted-products suppliers. Call 212-592-6263.
- Potentials magazine's annual Buyer's Guide contains many imprinted-products suppliers. Call 612-333-0471 or 800-707-7749.
- Promo magazine's Sourcebook lists agencies and other resources. Call 203-358-4351 or 800-463-4054.
- The Motivation Show Directory provides the most comprehensive listing of premium and incentive suppliers. Call 630-434-7779.
- The Premium Incentive Show Directory is a comprehensive listing of imprinted-product suppliers. Call 800-765-7615.
TRADE SHOWS
For a list of Industry Events, go to #9510, Calendar of Industry Events.
ASSOCIATIONS
Promotional Products Association International (PPAI) is the first association you should call for information on suppliers of imprinted products. Call 972-252-0404; go to http://www.ppai.org.
Incentive Manufacturers Representatives Association (IMRA) represents factory-direct salespeople in the incentive business. Call 703-610-9021; go to http://www.imra1.org
The Incentive Federation was formed to protect the rights of organizations to motivate customers and employees through the intelligent and ethical use of incentive programs. Comprised of the leading associations, trade shows, and some of the top suppliers in the incentive field, the Federation monitors Federal regulations that could affect the proper use of incentive programs and lobbies against proposals that could hinder the ability of businesses to properly use incentive programs. As part of its industry services, the Federation also conducts the only regular research on use of incentives by U.S. organizations, and manages the Incentive Promotion Campaign, the industry-wide effort to promote professional use of incentives and that underwrote this Web site. For information, call 908-233-4009, e-mail hhenry333@aol.com.
PUBLICATIONS
Potentials publishes good articles on promotional-product uses, strategies, and trends. Lots of case studies. Call 612-333-0471.
Promo is a monthly magazine for people who make promotion marketing part of their job. Heavy packaged-goods emphasis. Call 203-358-4351 or 800-463-4054.
Promotional Products Business provides a timely education on all the topics vital to running a successful promotional-products business, trends and tips on selling products, strategies for penetrating new markets, how-tos on selling, managing, marketing, and technology; plus the latest on legislation, industry news, personnel changes, mergers and acquisitions. Distributed free to PPAI members ( both suppliers and distributors of promotional products). Call 972-258-3104.
Incentive magazine covers all aspects of incentives, from premiums to travel. Call 212-592-6263.
Wearables Business magazine, the educational authority for promotional apparel, serves as the premiere source of information for the wearables segment of the promotional products industry. With extensive information from sourcing to selling, it gives promotional products distributors nationwide the knowledge they need to aggressively sell wearable products in every market from small businesses to corporate America. Annual Directory of Wearables Suppliers is printed in June of each year. Subscriptions free to qualified Ad Specialty Distributors, Promotional/ Marketing Agencies, and Incentive companies. Call 800-441-0294.
