The Power of Promotional Products   Promotional Products Association International
Table Of ContentsSection A: Industry Information andStatisticsSection B: Applications of PromotionalProductsSection C: Res...
SECTION AINDUSTRY INFORMATION AND       STATISTICS
What are Promotional Products?  Items used to promote a product, service or company  program, including advertising specia...
How big is the Promotional ProductsIndustry?                                                    .             $19,440,837,...
Growth of Industry Sales        (PPAI Sales Volume Estimates by Year)In Billions Of Dollars                               ...
Buttons/Badges/          Ribbons 1.82% (2.26%)                                                        Clocks & Watches    ...
Top Buyers of                   Promotional Products                       by Industry   1. Education: schools, seminars...
SECTION BAPPLICATIONS OF PROMOTIONAL  PRODUCTS
Safety                    Other                       Education/Incentive       2.73% (1.84%)                             ...
Advantages of Using Promotional Products Flexible Tangible and long-lasting Impact easily measured Higher perceived va...
SECTION CRESEARCH STUDIES
Promotional Products – A Key Ingredient to Integrated MarketingIn a study conducted in a controlled environment by researc...
Promotional Products – A Key Ingredient to Integrated Marketing (Contd.)     Seven groups of people were exposed to adver...
Promotional Products – A Key Ingredient to Integrated Marketing (Contd.)In particular, the questions in the study measured...
Promotional Products – A Key Ingredient to Integrated Marketing (Contd.)When comparing the effectiveness of promotional pr...
Promotional Products – A Key Ingredient to Integrated Marketing (Contd.) When examining the synergistic effects of promoti...
Promotional Products’ Impact on Brand/                Company Image   An experimental study                              ...
Promotional Products’ Impact on Brand/               Company Image (contd.)                                         Likeli...
Promotional Products’ Impact on Brand/           Company Image (contd.)                                       Perception O...
Promotional Product Incentives Produce          Valuable Referrals From Satisfied Customers          Accompanying a reque...
Effectiveness of Promotional Products at                     Tradeshows                                                  P...
Increase Booth Traffic with Promotional                      Products                                              45%Are ...
Impact, Exposure and Influence of Promotional    Products   Reach:                              Recall:                   ...
Impact, Exposure and Influence of PromotionalProducts (contd.)Impression of the Advertiser 52% of participants in the stu...
Impact, Exposure and Influence of PromotionalProducts (contd.)  Frequency of Exposure/Lower Cost Per Impression   73% of ...
Impact, Exposure and Influence of PromotionalProducts (contd.)  Why Keep the Promotional Product   75.4% of those who rec...
Clients Respond to Business Gifts        A study by Wayne State University demonstrated that business        gifts not onl...
Clients Respond to Business Gifts   5.0   4.5   4.0   3.5                                                         4.7   3....
Trade ShowsTo promote traffic at its booth, an exhibitor sent invitations to4900 trade show registrants. Registrants were ...
Trade Shows                       Booth Visitation Rates25%20%                           %                       76 ase   ...
The use of promotional products in this studyincreased: Booth visitation Remembrance of the invitation Feelings of good...
Improve Direct Mail Response Rates                 with Promotional Products    The use of promotional products in conjun...
Findings  15%  13%  11%   9%   7%   5%                                                         7.3%   3%                  ...
 The inclusion of a Promotional Product to a mail  promotion increased the response rate by 50% The use of Promotional P...
Repeat BusinessNew customers who receive promotional products, on average,return sooner and more frequently, and spend mor...
Total 8-Month Spending$250$200      $219$150                 $173$100                                  $92 $50 $0       Pr...
Employee Awards and IncentivesIn 1994 Baylor University randomly surveyed 1,500 people,asking their opinions regarding emp...
The survey found that:     Employees like awards and incentives     Employees are motivated to win awards     Employees...
Motivating through Incentives   A 1999 survey by the Incentive Federation Inc., revealed that    incentive programs are b...
How Incentives are Used90%80%70%            82%60%50%                                                     6 1%            ...
Percentage of Incentive Programs that Achieve              Established Goals  89.00%  88.00%                              ...
Generate Customer Referrals Using                Promotional ProductsA 1993 study by Baylor University found that customer...
Findings50%45%40%      44%35%30%         35.8%                                                 Gift25%                    ...
 Customers who received a promotional product were 14%  more likely to provide leads than those who did not Sales people...
Build Customer Goodwill with               Promotional Products   Promotional products foster customer goodwill    toward...
Feelings of Goodwill    Toward Company and Sales Representative6                                                        Sc...
The use of promotional products in this study resulted in:   An increase in feelings of goodwill toward the company and i...
Dimensional Mailings   The packaging of promotional products can evoke curiosity as well    as an increase in direct mail...
Dimensional Direct Mail Response Rates5%4%3%                                                     3.3%2%                   ...
Improve Response Rates to an AdvertisingCampaign With Promotional Product MailingsIn a 1996 study PPAI helped a national t...
Findings10%9%                                                    9.55%8%7%6%5%4%3%                                4.20%2% ...
SECTION DCONCLUSION
The value of Promotional Products is in their ability to carry amessage to a well-defined audience. Because the products a...
This information has been made available to you courtesyof Promotional Products Association International andDynamic Image...
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Power of Promotional Products

  1. 1. The Power of Promotional Products Promotional Products Association International
  2. 2. Table Of ContentsSection A: Industry Information andStatisticsSection B: Applications of PromotionalProductsSection C: Research StudiesSection D: Conclusion
  3. 3. SECTION AINDUSTRY INFORMATION AND STATISTICS
  4. 4. What are Promotional Products? Items used to promote a product, service or company program, including advertising specialties, premiums, incentives, business gifts, awards, prizes,commemoratives and other imprinted or decorated items.
  5. 5. How big is the Promotional ProductsIndustry? . $19,440,837,547 Source: The PPAI 2007 Sales Volume Estimate
  6. 6. Growth of Industry Sales (PPAI Sales Volume Estimates by Year)In Billions Of Dollars $19.44 $18.78 $18.01 20 $17.85 $17.31 18 $16.55 $16.34 $14.94 $15.62 16 $13.18 14 $11.88 12 $9.49 10 $8.04 $7.01 8 $6.22 $5.01$5.12 6 4 2 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
  7. 7. Buttons/Badges/ Ribbons 1.82% (2.26%) Clocks & Watches 2007 SALES BY Electronics 1.69% (1.74%) 1.62% (1.87%) PRODUCT CATEGORY (2006 Figures in parentheses) Stickers & Decals Food Personal 2.07% (2.58%) 1.75% 1.68% (1.91%) (1.86%) Games 2.21% (2.49%) Textiles 2.25% (2.05%) Wearables 30.71% Other 2.32% (30.78%) (2.34%)Housewares2.35% (2.64%) Magnets 2.37% (2.23%) Automotive 2.48% (2.31%) Sporting Goods 2.57% (2.95%) Writing Instruments 10.39% (9.95%) Computers 3.31% (2.28%) Recognition/Awards/ Source: 2007 PPAI Product and Program Trophies/Jewelry Category Surveys 3.55% (3.56%) Bags 7.05% Calendars 5.51% (5.81%) (6.47%) Desk/Office/ Drinkware 6.32% Business (5.64%) Accessories 6.19% (6.28%)
  8. 8. Top Buyers of Promotional Products by Industry 1. Education: schools, seminars 2. Financial: banks, credit unions, brokers 3. Not-for-profit: (e.g. charities, churches) 4. Health care: hospitals, nursing homes, clinics, pharmacies 5. Construction: building trades, building supplies 6. Trade, professional associations and civic clubs 7. Real Estate: agents, title companies 8. Government: public offices, agencies, political candidates 9. Professional: doctors, lawyers, CPAs, architects, etc. 10. Restaurants and bars(2007 Top Buyers study)
  9. 9. SECTION BAPPLICATIONS OF PROMOTIONAL PRODUCTS
  10. 10. Safety Other Education/Incentive 2.73% (1.84%) Marketing Research 2.78% (3.04%) 1.53% (1.36%) 2007 SALES BY Employee Service PROGRAM Awards 5.44% (5.43%) Employee Relations & Events CATEGORY 13.80% (8.46%) (2006 in parentheses) New Product/ Service Introduction 5.78% (5.29%) Brand Awareness 12.84% (8.87%)Dealer DistributorPrograms 6.16%(7.73%) Internal Promotions Trade Shows 6.30% (3.47%) 10.68% (11.36%) Customer Referral 6.76% (2.33%) Public Relations New Customer/Account 7.05% (8.75%) Not-For-Profit Generation 9.98% (7.61%) Programs 8.16% (5.89%) Source: 2007 PPAI Product and Program Category Surveys Note: (Business Gifts as a category has been eliminated in 2007)
  11. 11. Advantages of Using Promotional Products Flexible Tangible and long-lasting Impact easily measured Higher perceived value Complements targeted marketing Complements other advertising media
  12. 12. SECTION CRESEARCH STUDIES
  13. 13. Promotional Products – A Key Ingredient to Integrated MarketingIn a study conducted in a controlled environment by researchers atLouisiana State University and University of Texas at San Antonioresearchers explored: Effectiveness of promotional products when compared to other traditional forms of advertising such as television and print Synergistic effects of promotional products when used along with these other mediaA 2006 Study by Louisiana State University and University of Texasat San Antonio
  14. 14. Promotional Products – A Key Ingredient to Integrated Marketing (Contd.)  Seven groups of people were exposed to advertising for a new pizza product via the three mediums, namely, television, print and promotional products These groups were:  Group 1: TV Only (control group)  Group 2: Print Only (control group)  Group 3: TV-Print (control group)  Group 4: Promotional Product (Experimental group)  Group 5: TV-Promotional Product (Experimental group)  Group 6: Print-Promotional Product (Experimental group)  Group 7: TV-Print-Promotional (Experimental group)A 2006 Study by Louisiana State University and University of Texasat San Antonio
  15. 15. Promotional Products – A Key Ingredient to Integrated Marketing (Contd.)In particular, the questions in the study measured the following: Advertisement credibility Attitudes toward product, advertisement or promotional product Product purchase intention Referral value Impressions of the advertisement Perceptions about the productA 2006 Study by Louisiana State University and University of Texasat San Antonio
  16. 16. Promotional Products – A Key Ingredient to Integrated Marketing (Contd.)When comparing the effectiveness of promotional products with televisionand print, findings revealed: While the print ad came in first overall, the promotional product outperformed television across the board. Respondents preferred advertising through a promotional product to the television ad in terms of their: - Positive attitudes toward the ad (41% to 18%), - Positive attitude toward the product (20% to 16%), - Message credibility (54% to 33%) - Purchase intent (25% to 17%) - Referral value (26% to 16%) Adding a promotional product to the media mix generated favorable attitudes toward the ad in all cases (up to 44%)A 2006 Study by Louisiana State University and University of Texasat San Antonio
  17. 17. Promotional Products – A Key Ingredient to Integrated Marketing (Contd.) When examining the synergistic effects of promotional products when used along with other media, findings of the study revealed: Integrating a promotional product with television and print ads increased referral value as well as credibility of the message Groups who were exposed to promotional products tended to rate the advertising message more positively than those groups not exposed to a promotional productA 2006 Study by Louisiana State University and University of Texasat San Antonio
  18. 18. Promotional Products’ Impact on Brand/ Company Image An experimental study Overall Image conducted by Georgia Southern University shows 5.5 5 that recipients of promotional 4.5 products have a significantly 4 3.5 more positive image of a 3 company than those who do 2.5 not receive promotional 2 1.5 products. 1 0.5 0 For the study, the Product No Product researchers selected, as the Image Uniqueness test company, a restaurant Perception Lunch Patronage Likelihood located in a college town a Dinner Patronage Likelihood few miles from a university campus.A 2005 Study by Georgia Southern University
  19. 19. Promotional Products’ Impact on Brand/ Company Image (contd.) Likelihood To Recommend The Business The group receiving the 3.2 promotional product was 3 significantly more likely to recommend the business to 2.8 others than the group that 2.6 received nothing. 2.4 2.2 2 Product No Product
  20. 20. Promotional Products’ Impact on Brand/ Company Image (contd.) Perception Of The Business As Reflected By Positive Comments The group receiving the About The Company promotional product had a more positive image as 1.2 evidenced in their 1 comments about the 0.8 company than the non- 0.6 recipient control group. The difference was 0.4 statistically significant. 0.2 0 Product No Product
  21. 21. Promotional Product Incentives Produce Valuable Referrals From Satisfied Customers  Accompanying a request for referrals, an offer of a 0.05 promotional product incentive 0.045 4.80% 4.80% or an offer of a promotional 0.04 product incentive and 0.035 eligibility in a sweepstakes 0.03 drew as many as 500 percent 0.025 more referrals than an appeal 0.02 letter alone. 0.015 0.80% 0.01 0.005 0%  Offers of promotional product 0 incentives are likely to be substantially more effective Appeal Letter alone than enclosing free Letter plus free promotional product promotional products with an Letter + promotional product incentive for referral appeal letter. Letter + promotional product incentive + sweepstakesA 2005 Study by Louisiana State University and Glenrich Business Studies
  22. 22. Effectiveness of Promotional Products at Tradeshows PERCENT OF COMPANIES THAT  71.6% of attendees who REMEMBERED THE NAME OF THE COMPANY received a promotional product remembered the 80.00% 71.6% name of the company that 70.00% gave them the product 60.00%  76.3% of attendees had a 50.00% Yes favorable attitude toward 40.00% 28.4% No the company that gave 30.00% them the product 20.00% 10.00% 0.00%A 2003 Study by Georgia Southern University
  23. 23. Increase Booth Traffic with Promotional Products 45%Are Pre-show mailings with 41% 40%Promotional Product Offerings 36% 35%More Effective in Increasing BoothTraffic Than Mailings Without? 30% 23% 25% Including a promotional product with a 20% pre-show mailing or an offer of a promotional product increases the 15% likelihood of an attendee stopping by a tradeshow booth 10% As a general rule, promotional products 5% of greater value generate more sales leads than products of lower value 0% Mailer Only Mailer with Mailer with T- Magnet shirt OfferA 2004 study by Georgia SouthernUniversity
  24. 24. Impact, Exposure and Influence of Promotional Products Reach: Recall:  76.1% of participants could recall the  71% of business travelers name of the advertiser on the promotional randomly surveyed at DFW product that they received in the past 12 Airport reported receiving a months promotional product in the  In comparison only 53.5% of last 12 months participants could recall the name of an advertiser they had seen in a magazine or  33.7% of this group had the newspaper in the previous week. item on their person - a 80.00% coveted location for 70.00% 76.10% advertising 60.00% 50.00% 53.10% 40.00% 30.00% 20.00% 10.00%A 2004 Study by L.J Market Research 0.00% Print Media Promotional Products
  25. 25. Impact, Exposure and Influence of PromotionalProducts (contd.)Impression of the Advertiser 52% of participants in the study did business with the advertiser after receiving the promotional product. Of those who had not done business with the advertiser that gave them the product, almost half stated that they were more likely to do business with the company that gave them the item 52.1% of participants reported having a more favorable impression of the advertiser since receiving the item.
  26. 26. Impact, Exposure and Influence of PromotionalProducts (contd.) Frequency of Exposure/Lower Cost Per Impression  73% of those who used the promotional product that they had received stated that they used it at least once a week  45.2% used it at least once a day The greater the frequency of exposure, the lower the cost per Impression Repeated Exposure  55% of participants generally kept their promotional products for more than a year.  22% of participants kept the promotional product that they had received for at least six months.
  27. 27. Impact, Exposure and Influence of PromotionalProducts (contd.) Why Keep the Promotional Product  75.4% of those who received a promotional product stated that they thought the item was useful  20.2% kept the promotional product because they thought it was attractive Pass - Along Exposure  Participants of the study were asked what they do with promotional products that they do not keep. 26% of participants reported that they give the item to someone else.
  28. 28. Clients Respond to Business Gifts A study by Wayne State University demonstrated that business gifts not only improved sales but also customer attitudes. Results were compared among three groups: a) The letter Group -a group that received a letter of thanks b) The Silver Group - those that received a letter plus a silver desk set (a $20 value) c) The Gold Group - those that received a letter plus a gold desk set (A $40 value)A 1998 study by Wayne State University
  29. 29. Clients Respond to Business Gifts 5.0 4.5 4.0 3.5 4.7 3.0 4.2 3.7 2.5 Satisfaction 3.6 2.8 Intent to Buy 2.0 3.0 1.5 1.0 0.5 0.0 Letter Letter+ Silver Gift Letter + Gold Gift1 = Very Dissatisfied/Very unlikely to buy and 7 = Very Satisfied/Very likely to buy
  30. 30. Trade ShowsTo promote traffic at its booth, an exhibitor sent invitations to4900 trade show registrants. Registrants were further brokendown into smaller groups, each of which received from zeroto three gifts(before, at, and/or after the show).The researchers measured booth traffic, post-show memoryof having received the invitation and goodwill toward thecompany. A 1991 Study by Exhibit Surveys, Inc
  31. 31. Trade Shows Booth Visitation Rates25%20% % 76 ase 1 e r15% Inc10% 11.6%5% 4.2%0% Product + Offer for Mat ching I nvit at ion Only I ncent i ve at Show
  32. 32. The use of promotional products in this studyincreased: Booth visitation Remembrance of the invitation Feelings of goodwill
  33. 33. Improve Direct Mail Response Rates with Promotional Products The use of promotional products in conjunction with a sales letter can make a significant difference in direct mail response rates. The use of promotional products can also improve a business’ effectiveness in converting leads to sales appointments. A 1992 study by Silver Marketing Group
  34. 34. Findings 15% 13% 11% 9% 7% 5% 7.3% 3% 2.7% 1% 1.8% -1% Sales Letter Letter & Promotional Letter plus offer of Product Promotional Product Incentive * In terms of appointments secured
  35. 35.  The inclusion of a Promotional Product to a mail promotion increased the response rate by 50% The use of Promotional Products as an incentive to respond generated four times as many responses as a sales letter aloneThe use of a Promotional Product as an incentive to respond reduced the cost per response by two- thirds.
  36. 36. Repeat BusinessNew customers who receive promotional products, on average,return sooner and more frequently, and spend more money thannew customers who receive coupons. In two separate studies,SMU researchers tested whether promotional products wouldoutperform coupons in the area of repeat business and sales.Promotional product recipients spent 27% more than couponrecipients and 139% more than welcome letter recipients over an8-month period.Promotional product recipients were also 49% more likely thancoupon recipients and 75% more likely than letter recipients toreturn and patronize the business in each of the eight monthsstudied.A 1994 Study by Southern Methodist University
  37. 37. Total 8-Month Spending$250$200 $219$150 $173$100 $92 $50 $0 Promotional Coupon Sales Letter Product
  38. 38. Employee Awards and IncentivesIn 1994 Baylor University randomly surveyed 1,500 people,asking their opinions regarding employee awards andincentives.Survey recipients were asked to rate how most employeesfelt about awards and incentives. A 1994 Study by Baylor University
  39. 39. The survey found that:  Employees like awards and incentives  Employees are motivated to win awards  Employees work hard to win awards  Employees encourage their co-workers to work toward awards and incentives.
  40. 40. Motivating through Incentives A 1999 survey by the Incentive Federation Inc., revealed that incentive programs are both highly effective as well as cost efficient. The survey was sent to 4,000 executives in a cross section of American Companies. Respondents were current users of merchandise and travel items for motivation/incentive applications. The study revealed that American businesses spend $23 billion annually on merchandise and travel for motivational use.A 1999 Incentive Federation Study
  41. 41. How Incentives are Used90%80%70% 82%60%50% 6 1% 66%40% 48%30%20%10%0% Sales Incent iv es Consumer / User Non- Sales Dealer I ncent iv es Pr omot ions Recognit ion/ Mot iv at ion
  42. 42. Percentage of Incentive Programs that Achieve Established Goals 89.00% 88.00% 88.30% 87.00% 86.00% 85.00% 84.00% 83.00% 83.70% 82.00% 83.10% 81.00% 80.00% Dealer Pr ogr ams Consum er / User Pr ogr ams Sales Pr ogr am s
  43. 43. Generate Customer Referrals Using Promotional ProductsA 1993 study by Baylor University found that customers whoreceive promotional products are more willing to provide leadsthan customers who don’t receive promotional products.Twenty Mary Kay consultants participated in a study wherehalf of them distributed promotional gifts to customers and theother ten offered no promotional items to their customers. Bothgroups then asked customers (200 in all) to refer names ofacquaintances. A 1993 Study by Baylor University
  44. 44. Findings50%45%40% 44%35%30% 35.8% Gift25% No Gift20%15%10% 13.3% 11.7%5%0% Referrals Per Number of Customers Salesperson giving Referrals
  45. 45.  Customers who received a promotional product were 14% more likely to provide leads than those who did not Sales people who gave promotional gifts to their customers received 22% more referrals than sales people who did not use promotional products 40% of the salespeople who used gifts commented on how well the gifts were received by their customers
  46. 46. Build Customer Goodwill with Promotional Products Promotional products foster customer goodwill toward a company and its salespeople. A 1992 study by Baylor University, involved a textbook publisher sending 4000 educators either: 1) a pocket calculator plus a letter, 2) a lower priced highlighter pen plus a letter or 3) a letter only.A 1992 study by Baylor University
  47. 47. Feelings of Goodwill Toward Company and Sales Representative6 Scale: 1=negative/6=positive543 3.22 2.722 2.1210 More Expensive Gift Less Expensive Gift Sales Letter (Calculator) (Highlighter)
  48. 48. The use of promotional products in this study resulted in: An increase in feelings of goodwill toward the company and its salespeople A more positive attitude among those who received the calculator than for those who received the less expensive highlighter pen On questions relating to the customers’ personal feelings toward the company and its sales representatives, customers who received the calculator scored 52% higher than the letter only group.
  49. 49. Dimensional Mailings The packaging of promotional products can evoke curiosity as well as an increase in direct mail response rates. A 1993 Baylor University study revealed that the use of dimensional mailers can significantly improve response rates over direct mail alone. For this study 3000 school administrators were divided into three groups and received either: 1) sales letter and sales literature, 2) sales letter, literature and a promotional product, 3) the sales letter, sales literature and promotional product but delivered in a box with a die-cut slot. A 1993 Baylor University study
  50. 50. Dimensional Direct Mail Response Rates5%4%3% 3.3%2% 2.1% 1.9%1%0% Sales Letter Letter and Promotional Letter, Promotional Product Product & Dimensional Packaging
  51. 51. Improve Response Rates to an AdvertisingCampaign With Promotional Product MailingsIn a 1996 study PPAI helped a national tile distributor integrate the useof direct mail and promotional products into a print advertisingcampaign.One group of subscribers received only the trade ad.Other groups received a sales letter, a promotional product, or apromotional product incentive along with the trade ad. 1996 study by Dallas Marketing Group
  52. 52. Findings10%9% 9.55%8%7%6%5%4%3% 4.20%2% 2.30%1% .70%0% Trade Ad Ad+Letter Ad+ Stress Ball Ad + Calculator Incentive
  53. 53. SECTION DCONCLUSION
  54. 54. The value of Promotional Products is in their ability to carry amessage to a well-defined audience. Because the products areuseful to and appreciated by the recipients, they are retained andused, repeating the imprinted message many times without addedcost to the advertiser.The information contained within this presentation will provide agreater knowledge of promotional products, the industry and itsapplications.
  55. 55. This information has been made available to you courtesyof Promotional Products Association International andDynamic Image Marketing Systems, Inc.For more Information contact:Craig CavanaughCasa del Mar3910 Sorrento Valley Blvd. Suite 100San Diego, CA 92121

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