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Promotional Products 101

Written by: Phillip Ross

Article Overview: Promotional products (also called advertising specialties and identity products) are usually, but not always, imprinted with a company's name, logo or message. They include useful or decorative articles of merchandise that are used in marketing, educational, and communication programs. Most anything that can be imprinted is imprinted.

Promotional Products 101

Promotional products (also called advertising specialties and identity products) are usually, but not always, imprinted with a company's name, logo or message. They include useful or decorative articles of merchandise that are used in marketing, educational, and communication programs. Most anything that can be imprinted is imprinted.

There are four categories of promotional products:

Imprinted products that are given away for free are called advertising specialties.
Imprinted products that are sold at cost are sometimes called loss leaders. They can provide free advertising.
Imprinted items that are given as an incentive for some action are known as premiums.
Business gifts, awards, and commemoratives are also considered to be promotional products.
Product Uses
Promotional products have a variety of uses. They can be used alone or integrated with other media in a variety of interesting and effective ways. Popular uses include: Business gifts, employee relations, orientation programs, corporate communications, incentives (for work, safety programs, and purchasing), and trade show handouts. They excel at encouraging specific actions like responding to a survey, filling out a form, etc.

Other effective uses include:

Sales or distribution programs
Company stores
Co-op programs
Generating new customers or new accounts
Nonprofit fundraising
Public awareness campaigns
Promotion of brand awareness
Encouraging brand loyalty
New product or service introductions
Incentive programs
Marketing research
Available Products
There are literally tens of thousands of different types and styles of promotional products. If you would like a list of product categories, contact Business Specialties or visit our LogoMall site. Examples of common items include: pens, calendars, T-shirts, caps, cups, mugs, napkins, calculators, key chains, desk and computer accessories, bags, totes, bumper stickers, yard signs, labels, decals, etc.

Industry Stats
Advertisers spent more than $14.9 billion in 1999 and more than $17 billion in 2000 on products purchased through professional promotional products distributors. According to the Promotional Products Association, the top product categories and the percentage of the market are:

Business Gifts - 17.6%
Dealer/Distributor Programs - 14.9%
Employee Relations & Events - 10%
New Product/Service Introduction - 8.7%
Brand Awareness - 8.3%
Public Relations - 7.1%
Employee Service Awards - 6.4%
Trade Shows - 5.7%
New Customer/Account Generation - 4.8%
Safety Education/Incentives - 4.4%
Internal Promotions - 4.6%
Non-Profit Programs - 3.2%
Customer Referral - 2.8%
Marketing research - 1%
Why Promotional Products?
Promotional products marketing fits easily into any advertising budget. Promotional products complement and actually increase the effectiveness of other advertising media. They can be directed to selected audiences, which dramatically increases their effectiveness. And they remain in use for long periods of time to repeat the advertising message each time the product is used, without extra cost per exposure. People like to receive them. And since the items are useful and appealing, they are effective as incentives and motivators. Because there are so many products available, there is a lot of flexibility in planning a successful promotion.

Limitations
On many products such as pens, lapel pins, etc., the imprint area is limited. Production time can range from days to as much as eight weeks depending on the product, the quantity ordered, and the complexity of the imprint. And, unlike broadcast or other media, where there is automatic distribution, with promotional products advertising, you must plan a distribution method.

But Effective!
A study by Schreiber & Associates (Peoria, IL) showed that 39 percent of the people receiving a promotional product could recall the name of the advertiser as long as six months after they received it.

Southern Methodist University conducted a study to measure attendee awareness of product demonstrations in three university communities. They found that selective distribution of promotional products drew more booth traffic than school newspaper advertising by two-to-one.

Promotional products, used in direct mail solicitations, can boost response rates by up to 75 percent, according to a study by Baylor University.

In a study by Southern Methodist University, customers receiving promotional products reordered up to 18 percent sooner than those who received coupons and up to 13 percent sooner than those who received no promotion.

A Baylor University study of month-long sales contests in retail establishments indicates that contests reinforced by periodic distribution of promotional products were cost-effective and outperformed non-stimulated contests by up to 50 percent.

How does the industry work?
Supplier factories import, manufacture, convert, imprint or otherwise produce or process products offered for sale only through promotional products distributors. There are more than 5,000 supplier companies in the promotional products industry. Most distributors act as independent agents and sell products, and sometimes promotional programs, to their clients. Some distributors represent factories or franchise distributorships. There are over 20,000 distributor firms in the industry.

Business Specialties is a member of the Advertising Specialties Institute (ASI), and an independent promotional products distributor, with a variety of special arrangements with many factories and other promotional products companies that have been structured to provide great prices and great service.

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