Power Of Promotional Products Dims

Stephen Lalla
Stephen LallaCEO at Dynamic Image Marketing Systems, Inc
The Power of Promotional Products Promotional Products Association International
Table Of Contents Section A: Industry Information and Statistics Section B: Applications of Promotional Products   Section C: Research Studies Section D: Conclusion
SECTION A INDUSTRY INFORMATION AND STATISTICS
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. What are Promotional Products?
. How big is the Promotional Products Industry? $19,440,837,547   Source: The PPAI 2007 Sales Volume Estimate
Growth of Industry Sales (PPAI Sales Volume Estimates by Year)
2007 SALES BY PRODUCT CATEGORY  (2006 Figures in parentheses) Wearables 30.71% (30.78%) Writing Instruments 10.39% (9.95%) Calendars 5.51%  (6.47%) Drinkware 6.32%  (5.64%) Bags  7.05%  (5.81%) Desk/Office/ Business Accessories 6.19% (6.28%) Recognition/Awards/Trophies/Jewelry 3.55% (3.56%) Other  2.32% (2.34%) Textiles 2.25% (2.05%) Sporting Goods 2.57% (2.95%) Magnets 2.37% (2.23%) Housewares 2.35% (2.64%) Computers  3.31% (2.28%) Automotive 2.48% (2.31%) Clocks & Watches 1.62% (1.87%) Buttons/Badges/ Ribbons 1.82% (2.26%) Stickers & Decals 2.07% (2.58%) Electronics  1.69% (1.74%) Games 2.21% (2.49%) Food 1.75% (1.91%) Personal 1.68% (1.86%) Source: 2007 PPAI Product and Program Category Surveys
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Top Buyers of  Promotional Products by Industry
SECTION B APPLICATIONS OF PROMOTIONAL PRODUCTS
2007 SALES BY PROGRAM CATEGORY  (2006 in parentheses) Source: 2007 PPAI Product and Program Category Surveys Employee Relations & Events 13.80% (8.46%) Trade Shows  10.68% (11.36%) Brand Awareness  12.84% (8.87%) Dealer Distributor Programs 6.16% (7.73%) Public Relations 7.05% (8.75%) New Customer/Account Generation  9.98% (7.61%) New Product/ Service Introduction  5.78% (5.29%) Employee Service Awards  5.44% (5.43%) Not-For-Profit Programs  8.16% (5.89%) Internal Promotions  6.30% (3.47%) Customer Referral  6.76% (2.33%) Safety Education/Incentive  2.78% (3.04%) Marketing Research  1.53% (1.36%) Other  2.73% (1.84%) Note: (Business Gifts as a category has been eliminated in 2007)
Advantages of Using Promotional Products ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SECTION C RESEARCH STUDIES
Promotional Products – A Key Ingredient to Integrated Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products – A Key Ingredient to Integrated Marketing (Contd.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products – A Key Ingredient to Integrated Marketing (Contd.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products – A Key Ingredient to Integrated Marketing (Contd.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products – A Key Ingredient to Integrated Marketing (Contd.) ,[object Object],[object Object],[object Object],[object Object],A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products’ Impact on Brand/ Company Image ,[object Object],[object Object],A 2005 Study by Georgia Southern University
Promotional Products’ Impact on Brand/ Company Image (contd.) ,[object Object]
Promotional Products’ Impact on Brand/ Company Image (contd.) ,[object Object]
Promotional Product Incentives Produce Valuable Referrals From Satisfied Customers ,[object Object],[object Object],A 2005 Study by Louisiana State University and Glenrich Business Studies
Effectiveness of Promotional Products at Tradeshows ,[object Object],[object Object],A 2003 Study by Georgia Southern University
Increase Booth Traffic with Promotional Products  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A 2004 study by Georgia Southern University
Impact, Exposure and Influence of Promotional Products ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A 2004 Study by L.J Market Research
Impact, Exposure and Influence of Promotional Products (contd.) ,[object Object],[object Object],[object Object],[object Object]
Impact, Exposure and Influence of Promotional Products (contd.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Impact, Exposure and Influence of Promotional Products (contd.) ,[object Object],[object Object],[object Object],[object Object],[object Object]
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
Clients Respond to Business Gifts 1 = Very Dissatisfied/Very unlikely to buy and 7 = Very Satisfied/Very likely to buy
Trade Shows To promote traffic at its booth, an exhibitor sent invitations to 4900 trade show registrants. Registrants were further broken down into smaller groups, each of which received from zero to three gifts(before, at, and/or after the show). The researchers measured booth traffic, post-show memory of having received the invitation and goodwill toward the company. A 1991 Study by Exhibit Surveys, Inc
Trade Shows Booth Visitation Rates 176%  Increase
The use of promotional products in this study increased : ,[object Object],[object Object],[object Object]
Improve Direct Mail Response Rates with Promotional Products ,[object Object],[object Object],A 1992 study by Silver Marketing Group
Findings * In terms of appointments secured
[object Object]
Repeat Business New customers who receive promotional products, on average, return sooner and more frequently, and spend more money than  new customers who receive coupons. In two separate studies, SMU researchers tested whether promotional products  would outperform coupons in the area of repeat business and sales. Promotional product recipients spent 27% more than coupon recipients and 139% more than welcome letter recipients over an 8-month period. Promotional product recipients were also 49% more likely than coupon recipients and 75% more likely than letter recipients to return and patronize the business in each of the eight months studied. A 1994 Study by Southern Methodist University
Total 8-Month Spending
Employee Awards and Incentives In 1994 Baylor University randomly surveyed 1,500 people, asking their opinions regarding employee awards and incentives. Survey recipients were asked to rate how most employees felt about awards and incentives.  A 1994 Study by Baylor University
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Motivating through Incentives ,[object Object],[object Object],[object Object],A 1999 Incentive Federation Study
How Incentives are Used
Percentage of Incentive Programs that Achieve Established Goals
Generate Customer Referrals Using Promotional Products A 1993 study by Baylor University found that customers who receive promotional products are more willing to provide leads than customers who don’t receive promotional products. Twenty Mary Kay consultants participated in a study where half of them distributed promotional gifts to customers and the other ten offered no promotional items to their customers. Both groups then asked customers (200 in all) to refer names of acquaintances. A 1993 Study by Baylor University
Findings
[object Object],[object Object],[object Object],[object Object],[object Object]
Build Customer Goodwill with Promotional Products ,[object Object],[object Object],A 1992 study by Baylor University
  Feelings of Goodwill  Toward Company and Sales Representative
[object Object],[object Object],[object Object],[object Object]
Dimensional Mailings ,[object Object],[object Object],A 1993 Baylor University study
Dimensional Direct Mail Response Rates
Improve Response Rates to an Advertising Campaign With Promotional Product Mailings In a 1996 study PPAI helped a national tile distributor integrate the use of direct mail and promotional products into a print advertising campaign. One group of subscribers received only the trade ad. Other groups received a sales letter, a promotional product, or a promotional product incentive along with the trade ad. 1996 study by Dallas Marketing Group
Findings
SECTION D CONCLUSION
The value of Promotional Products is in their ability to carry a message to a well-defined audience. Because the products are useful to and appreciated by the recipients, they are retained and used, repeating the imprinted message many times without added cost to the advertiser. The information contained within this presentation will provide a greater knowledge of promotional products, the industry and its applications.
This information has been made available to you courtesy of Promotional Products Association International and Dynamic Image Marketing Systems, Inc. For more Information contact:  Dynamic Image Marketing Systems, Inc 1465 Sand Hill Rd Ste 1014 Candler, NC 28715 828.687.1893 - www.dynamicimage.biz
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Power Of Promotional Products Dims

  • 1. The Power of Promotional Products Promotional Products Association International
  • 2. Table Of Contents Section A: Industry Information and Statistics Section B: Applications of Promotional Products Section C: Research Studies Section D: Conclusion
  • 3. SECTION A INDUSTRY INFORMATION AND STATISTICS
  • 4. 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. What are Promotional Products?
  • 5. . How big is the Promotional Products Industry? $19,440,837,547 Source: The PPAI 2007 Sales Volume Estimate
  • 6. Growth of Industry Sales (PPAI Sales Volume Estimates by Year)
  • 7. 2007 SALES BY PRODUCT CATEGORY (2006 Figures in parentheses) Wearables 30.71% (30.78%) Writing Instruments 10.39% (9.95%) Calendars 5.51% (6.47%) Drinkware 6.32% (5.64%) Bags 7.05% (5.81%) Desk/Office/ Business Accessories 6.19% (6.28%) Recognition/Awards/Trophies/Jewelry 3.55% (3.56%) Other 2.32% (2.34%) Textiles 2.25% (2.05%) Sporting Goods 2.57% (2.95%) Magnets 2.37% (2.23%) Housewares 2.35% (2.64%) Computers 3.31% (2.28%) Automotive 2.48% (2.31%) Clocks & Watches 1.62% (1.87%) Buttons/Badges/ Ribbons 1.82% (2.26%) Stickers & Decals 2.07% (2.58%) Electronics 1.69% (1.74%) Games 2.21% (2.49%) Food 1.75% (1.91%) Personal 1.68% (1.86%) Source: 2007 PPAI Product and Program Category Surveys
  • 8.
  • 9. SECTION B APPLICATIONS OF PROMOTIONAL PRODUCTS
  • 10. 2007 SALES BY PROGRAM CATEGORY (2006 in parentheses) Source: 2007 PPAI Product and Program Category Surveys Employee Relations & Events 13.80% (8.46%) Trade Shows 10.68% (11.36%) Brand Awareness 12.84% (8.87%) Dealer Distributor Programs 6.16% (7.73%) Public Relations 7.05% (8.75%) New Customer/Account Generation 9.98% (7.61%) New Product/ Service Introduction 5.78% (5.29%) Employee Service Awards 5.44% (5.43%) Not-For-Profit Programs 8.16% (5.89%) Internal Promotions 6.30% (3.47%) Customer Referral 6.76% (2.33%) Safety Education/Incentive 2.78% (3.04%) Marketing Research 1.53% (1.36%) Other 2.73% (1.84%) Note: (Business Gifts as a category has been eliminated in 2007)
  • 11.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 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. Clients Respond to Business Gifts 1 = Very Dissatisfied/Very unlikely to buy and 7 = Very Satisfied/Very likely to buy
  • 30. Trade Shows To promote traffic at its booth, an exhibitor sent invitations to 4900 trade show registrants. Registrants were further broken down into smaller groups, each of which received from zero to three gifts(before, at, and/or after the show). The researchers measured booth traffic, post-show memory of having received the invitation and goodwill toward the company. A 1991 Study by Exhibit Surveys, Inc
  • 31. Trade Shows Booth Visitation Rates 176% Increase
  • 32.
  • 33.
  • 34. Findings * In terms of appointments secured
  • 35.
  • 36. Repeat Business New customers who receive promotional products, on average, return sooner and more frequently, and spend more money than new customers who receive coupons. In two separate studies, SMU researchers tested whether promotional products would outperform coupons in the area of repeat business and sales. Promotional product recipients spent 27% more than coupon recipients and 139% more than welcome letter recipients over an 8-month period. Promotional product recipients were also 49% more likely than coupon recipients and 75% more likely than letter recipients to return and patronize the business in each of the eight months studied. A 1994 Study by Southern Methodist University
  • 38. Employee Awards and Incentives In 1994 Baylor University randomly surveyed 1,500 people, asking their opinions regarding employee awards and incentives. Survey recipients were asked to rate how most employees felt about awards and incentives. A 1994 Study by Baylor University
  • 39.
  • 40.
  • 42. Percentage of Incentive Programs that Achieve Established Goals
  • 43. Generate Customer Referrals Using Promotional Products A 1993 study by Baylor University found that customers who receive promotional products are more willing to provide leads than customers who don’t receive promotional products. Twenty Mary Kay consultants participated in a study where half of them distributed promotional gifts to customers and the other ten offered no promotional items to their customers. Both groups then asked customers (200 in all) to refer names of acquaintances. A 1993 Study by Baylor University
  • 45.
  • 46.
  • 47. Feelings of Goodwill Toward Company and Sales Representative
  • 48.
  • 49.
  • 50. Dimensional Direct Mail Response Rates
  • 51. Improve Response Rates to an Advertising Campaign With Promotional Product Mailings In a 1996 study PPAI helped a national tile distributor integrate the use of direct mail and promotional products into a print advertising campaign. One group of subscribers received only the trade ad. Other groups received a sales letter, a promotional product, or a promotional product incentive along with the trade ad. 1996 study by Dallas Marketing Group
  • 54. The value of Promotional Products is in their ability to carry a message to a well-defined audience. Because the products are useful to and appreciated by the recipients, they are retained and used, repeating the imprinted message many times without added cost to the advertiser. The information contained within this presentation will provide a greater knowledge of promotional products, the industry and its applications.
  • 55. This information has been made available to you courtesy of Promotional Products Association International and Dynamic Image Marketing Systems, Inc. For more Information contact: Dynamic Image Marketing Systems, Inc 1465 Sand Hill Rd Ste 1014 Candler, NC 28715 828.687.1893 - www.dynamicimage.biz