Promotional items are merchandise given away or sold by organizations to promote branding and marketing. This guide discusses the benefits of promotional items, tips for purchasing them, and how to calculate costs. It provides examples of ideal promotional items for different objectives like sales, rewards, and employee motivation. The most popular items are pens, mugs, keychains, hats, and t-shirts due to their low costs and ability to be imprinted with logos.

1. BUSINESS.COM GUIDE TO PROMOTIONAL ITEMS

2. CONTENTS
OVERVIEW OF PROMOTIONAL ITEMS 3
BENEFITS 6
PURCHASING TIPS 8
CALCULATING COSTS 12
COMPARISON CHECKLIST 13
GLOSSARY OF TERMS 14

3. 3
WHY
A promotional item is a piece of merchandise that features an
organization’s name, logo, slogan, and/or message. The organization
gives these items away or sells them as a form of branding, marketing,
and/or sales.
The idea is to raise awareness of the organization’s name, brand, or
mission and to keep the brand in front of existing and potential customers.
Promotional items are usually part of the marketing or advertising budget,
although many companies have discovered that branded merchandise can
be sold at a profit.
OVERVIEW OF PROMOTIONAL ITEMS
“THE IDEA IS TO RAISE AWARENESS OF THE ORGANIZATION’S NAME,
BRAND, OR MISSION AND TO KEEP THE BRAND IN FRONT OF EXISTING
AND POTENTIAL CUSTOMERS.”

4. 4
WHAT
Other names for promotional items include
giveaways, tchotchkes, swag, loot, trinkets, bling,
goodies, gift bags, goodie bags, and prizes. Some
typical promotional items are caps or hats; T-shirts,
sweatshirts, jackets, and other apparel; notepads,
message pads, blank cards, and postcards;
pens, pencils, markers, and other office supplies;
calendars, datebooks, and planners; and tote bags,
boxes, and containers.
Virtually any item can be utilized in a promotional
manner. However, most of these items are low cost, with
little resale value, and are given away for free.
Even in the age of the Internet, promotional items offer
a business a major advantage in getting customers
to remember them. Companies work hard to find
promotional items that have an everyday use, such as
a pen or clock, or which hold a prominent position in
the home that is viewable daily, such as a refrigerator
magnet or a scratch pad. If a business wants to stand
out, it will try to offer gifts that will be used in the
workplace, such as USB sticks, pens, calculators,
and calendars.
“VIRTUALLY ANY ITEM CAN BE UTILIZED IN A
PROMOTIONAL MANNER. HOWEVER, MOST OF
THESE ITEMS ARE LOW COST, WITH LITTLE RESALE
VALUE, AND ARE GIVEN AWAY FOR FREE.”

5. 5
HOW
Another use for promotional items involves offering
the items as incentives to employees for reaching
and exceeding targets and goals, as well as for
inspiring productivity and loyalty.
Some promotional items are restricted to those who’ve
reached a certain level of employment or who’ve
achieved specific goals. Many companies recognize
high performers with lapel pins, for example, which
have a low cost but carry great symbolism.
“SOME PROMOTIONAL ITEMS ARE
RESTRICTED TO THOSE WHO’VE REACHED A
CERTAIN LEVEL OF EMPLOYMENT OR WHO’VE
ACHIEVED SPECIFIC GOALS.”

6. 6
There are numerous benefits for gifting promotional
items to existing or potential customers, or to long-
term or high-performing employees. However, a
few of these benefits are cited as the main reasons
organizations use these items. Promotional items can
help a business improve sales, bolster a reputation,
and perform better financially.
Making an impact on a customer. Almost everyone
likes to receive free items; it makes people feel as
if they’ve gotten something for nothing. That’s why
organizations use promotional items as incentives—to
draw in new customers and hold on to existing ones.
A promotional item that is durable and useful serves a
dual purpose: not only will the initial impact of receiving
it reflect well on the business, but the item will act as
a constant reminder of that company. The imprinted
name, logo, and possibly even a message will be seen
daily. Items can also be used as thank-you gifts for
customers who’ve just become affiliated with a business
or who’ve been dealing with that company for a long
period of time. This serves to help cement a beneficial
relationship between a business and its customers.
BENEFITS
“ALMOST EVERYONE LIKES TO RECEIVE FREE
ITEMS; IT MAKES PEOPLE FEEL AS IF THEY’VE
GOTTEN SOMETHING FOR NOTHING.”

7. 7
Selling a product through samples. A sample of
an item that a business is selling is considered a
promotional item, as it is given away to potential or
existing customers in an attempt to acquire or retain
their business. Sample items draw attention to an
item that may be new on the market, highlighting its
advantages over competing products. If customers
are impressed with the samples they receive, this can
boost sales. Promotional items are often used (regifted)
by customers to recommend a business to their family,
friends, or colleagues.
Motivating employees to reach their maximum
potential. Contrary to popular belief, promotional
items are not only for customers or clients; they can
also be offered to employees for reaching impressive
milestones or for high levels of performance. They’re
often used to reward team members for attaining
a targeted goal or for reaching some other sort of
business milestone. Offering items as incentives helps
motivate employees to work to their full potential, and
can boost loyalty.
“SAMPLE ITEMS DRAW ATTENTION TO AN ITEM
THAT MAY BE NEW ON THE MARKET, HIGHLIGHTING
ITS ADVANTAGES OVER COMPETING PRODUCTS.”

8. 8
PURCHASING TIPS
The promotional item chosen will depend on the
motivation behind its use. First, look at the objectives
of the promotional effort—are they designed to
increase sales, strengthen branding, or retain top
talent? Then consider how the array of promotional
items available fits into the purpose of the campaign.
Here are some examples.
Sales Objectives. This is one of the most common
objectives related to giving away promotional items. As
such, it’s important to determine the specific sales goal of
the promotion. For example:
• Increase overall sales?
• Increase the sales of a specific item?
• Promote a new line or range of products?
• Increase brand or name recognition?
• Increase traffic to a website or trade show?
• Generate phone calls and email communications?
• Stimulate donations or volunteer commitments?
Next, it’s important to determine how the promotional item
will be delivered to customers or clients. Different situations
often require different items. For example, a mug cannot be
as easily or inexpensively mailed as a pen or keychain. Will
the promotional item be delivered:
• By mail?
• In person?
• Online?
• At a retail establishment?
• At a convention or trade show?
• At a public-awareness or community event?
Once the delivery method of the promotional item has been
determined, a business can begin to focus on the types of
items that will work best for that promotion.
Promotional Objectives. Promotional items are a
more subtle approach to branching out and reaching
more customers than advertising. Promotional gifts or
giveaways are offered to loyal customers in the hopes
that they’ll recommend the organization to others. These

9. 9
gifts are sometimes offered as incentives for customers
who purchase or upgrade a product or service. Other
situations where a gift can be offered to existing or potential
customers include:
• Souvenirs from an event that was
sponsored by the business.
• Milestone markers for customers who have
been with the firm for a number of years.
• Commemorative awards resulting from an
organization receiving recognition (such as
a customer-satisfaction commendation).
Investing in promotional items that will be given away in
circumstances such as these can generate revenue for
a business by improving the company’s image among
existing customers and building a reputation that attracts
new ones. Choosing suitable items for these circumstances
can help the company remain in the front-of-mind of
existing customers while enabling their current satisfied
customers to more easily generate referrals.
Employee Motivation Objectives. Keeping employees
motivated and working to their highest capabilities is
important in any business. Offering gifts for exceeding
personal goals can motivate many employees to work
even harder than they normally would. Such promotional
items should have an everyday use, and a personal or
unique slant. Some objectives of employee-motivation
campaigns are:
• Increasing productivity through the use of incentives.
• Boosting company spirit.
• Celebrating loyalty and dedication.
• Recognizing and rewarding exceptional performance.
“CHOOSING SUITABLE ITEMS FOR THESE
CIRCUMSTANCES CAN HELP THE COMPANY REMAIN
IN THE FRONT-OF-MIND OF EXISTING CUSTOMERS.”

10. 10
Choosing items suitable for these circumstances is easier
once the manner in which they’ll be awarded has been
determined. Items can be personalized in advance if
the receiver’s identity is known. Rewarding long-term
employees for exceptional performance motivates other
team members to aim high in an attempt to also benefit
from these incentive programs.
Examples of Ideal Promotional Items
There are thousands of promotional items that could be
used in any situation, so it’s essential to refer back to the
specific objectives for the promotional campaign.
Sales Objectives. Ideal items related to this objective
can vary greatly with the particular situation. If the item
is being mailed directly to a potential customer, then
sending a pen, fridge magnet, or keychain may be best,
as they’re all items that are small and inexpensively sent
via snail mail, but are also objects that someone can
view or use on a daily basis.
If the objective is to boost sales of a specific product,
handing out clearly labeled product samples is a
reliable and effective promotion. Look for vendors who
can assist you with packaging or labeling your own
product for free distribution.
Handing out items at live events may require something
more original, such as tote bags or hats with the business

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name, logo, and slogan clearly printed on them that people
can begin using instantly. Similar ideas include handing
out sunscreen samples at the beach, or branded plastic
ponchos during a rainstorm.
Rewards Objectives. Promotional items used as
customer rewards are generally more expensive,
because the organization doesn’t want to appear to
be “cheap.” In these circumstances, something like a
desktop calendar, or an alarm clock with the business
name and logo on it, can be ideal.
Relating the promotional item to the business can also
be beneficial; for example, a business that sells skin-care
products could offer a free item after a certain number
of purchases; or a computing business could offer USB
memory sticks as an incentive to customers to continue
doing business with them. The ideal promotional gift is not
only useful, but reinforces the company’s brand.
Employee Motivation Objectives. These items can be tricky
to purchase because they must serve the objective of
motivating future behavior, not just rewarding past behavior.
Overly lavish gifts or decidedly underwhelming gifts can
send the wrong message, discouraging employees rather
than motivating them.
The Most Popular Promotional Items. Anything that can be
imprinted can be used as a promotional item, so the range
of choices is enormous. However, most promotional-item
vendors stock those that are high in demand and offer
competitive rates for imprinting them.
Here is a list of the top 10 most popular promotional items
according to a leading trade magazine:
1. Pens
2. Cups and mugs
3. Keychains
4. Hats
5. T-shirts
6. Calendars
7. Tote bags
8. Stress balls
9. Water bottles
10. Insulated drink sleeves (“koozies”)
These just represent a selection of
promotional items, and are not the
only items that can be offered as
gifts or giveaways. It’s important
to remember that conceiving of
unique promotional items is a way for
businesses to truly stand out.

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CALCULATING COSTS
As a general guide, most promotional items will
cost from 50 cents up to $15. Ask the vendor for a
portfolio of previous work to ensure the imprinting or
embroidery that’s being ordered is of a high quality
and is clear to read. Paying slightly more may result in
a better-produced item, reflecting well on the business
handing it out, especially at trade shows or events
where there’s competition with other companies.
Often merchants will offer small discounts for larger
bulk orders, with the discounts increasing in tiers as
the order size increases. It’s worthwhile to find out what
the discount levels are for any particular item. Many
merchants offer discounts if a business orders from them
regularly; this can add an extra discount on top of the
bulk discount. It’s worth checking out more than just the
list price for the item that is needed.
“OFTEN MERCHANTS WILL OFFER SMALL
DISCOUNTS FOR LARGER BULK ORDERS, WITH
THE DISCOUNTS INCREASING IN TIERS AS THE
ORDER SIZE INCREASES.”

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This checklist will help you quickly assess
the best vendor for your needs.
Cost
Cost For The Chosen Individual Item
Shipping Costs
Excess Charge for Colored Items
Cost for Sample Packaging
Discounts Offered
1st-tier Bulk Discount Amount
2nd-tier Bulk Discount Amount
3rd-tier Bulk DiscountAmount
Frequent Customer Discount
Item Imprinting
Imprinted With Business Name
Imprinted With Business Logo
Imprinted With Slogan
Pricing on Front And Back
Extra Charge for Color Printing
Options Available
Packaging for Sample Items
Shirt-color Choices
Shirt Sizes Available
People to Hand Out Freebies
My Needs Vendor 1 Vendor 2 Vendor 2
PROMOTIONAL ITEMS CHECKLIST

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Employee Motivation Objectives: A set of goals that
an organization is attempting to achieve by giving staff
members recognition and/or gifts to promote a more
efficient and loyal workforce.
Promotional Campaign: A marketing strategy that a
business uses; it offers promotional items to generate
interest from both new and existing customers in the
products and services the company is offering.
Promotional Items: Offered by a business to potential
or existing customers as part of a promotional campaign.
Promotional Objectives: The goals that a business
sets in an attempt to acquire new customers or retain
old customers.
Sales Objectives: Offering free promotional items to
attract customers, with the goal of reaching a specific
minimum increase in sales.
Trade Show: An organized event where businesses
in a certain industry can showcase products and
services. Promotional items are frequently purchased for
distribution at such shows.
GLOSSARY OF TERMS