The power of promotional products;corporate gifts; branded promo products; promotional products.

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. 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. How big is Promotional Products
Industry?

6. Growth of Industry Sales (PPAI Sales
Volume Estimates by Year)

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. SECTION B
APPLICATIONS OF PROMOTIONAL
PRODUCTS

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. SECTION C
RESEARCH STUDIES

13. Promotional Products – A Key Ingredient to
Integrated Marketing
In a study conducted in a controlled environment by
researchers at Louisiana State University and University of
Texas at San Antonio researchers 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 media
A 2006 study by Louisiana State University and University of Texas at San Antonio

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 Texas at San Antonio

15. Promotional Products – A Key Ingredient to
Integrated Marketing (Contd.)
In particular, the questions in the study measured the
following:
• Advertisement credibility
• Atittudes toward product, advertisement or
promotional product
• Product purchase intention
• Referral value
• Impressions of the advertisements
• Perceptions about the product
A 2006 Study by Louisiana State University and University of Texas at San Antonio

16. Promotional Products – A Key Ingredient to
Integrated Marketing (Contd.)
When comparing the effectiveness of promotional products with
television and 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 Texas at San Antonio

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 product
A 2006 Study by Louisiana State University and University of Texas at San Antonio

18. Promotional Products’ Impact on
Brand/Company Image
• An experimental study conducted by
Georgia Southern University shows
that recipients of promotional
products have significantly more
positive image of a company than
those who do not receive
promotional products
• For the study, the researchers
selected, as the test company, a
restaurant located in the college
town a few miles from a university
campus
A 2005 Study by Georgia Southern University

19. Promotional Products’ Impact on
Brand/Company Image (contd.)
• The group receiving the
promotional product was
significantly more likely to
recommend the business to
others than the group that
received nothing.

20. Promotional Products’ Impact on
Brand/Company Image (contd.)
• The group receiving the
promotional product had a
more positive image as
evidenced in their comments
about the company than the
non-recipient control group.
The difference was
statistically significant.

21. Promotional Product Incentives Produce
Valuable Referrals From Satisfied Customers
• Accompanying a request for
referrals, an offer of a promotional
product incentive or an offer of a
promotional product incentive and
eligibility in a sweepstakes drew as
many as 500 percent more referrals
thank an appeal letter alone.
• Offers of promotional product
incentives are likely to be
substantially more effective than
enclosing free promotional products
with an appeal letter.
A 2005 Study by Louisiana State University and Glenrich Business Studies

22. Effectiveness of Promotional Products at
Tradeshows
• 71.6% of attendees who
received a promotional
product remembered the
name of the company that
gave them the product
• 76.3% of attendees had a
favorable attitude toward the
company that gave them the
product
A 2003 Study by Georgia Southern University

23. Increase Booth Traffic with Promotional
Products
Are Pre-show mailings with Promotional
Product Offerings More Effective in
Increasing Booth Traffic Than Mailings
without?
• Including a promotional product with a
pre-show mailing or an offer of a
promotional product increases the
likelihood of an attendee stopping by a
tradeshow booth
• As a general rule, promotional products of
greater value generate more sales leads
than products of lower value
A 2004 Study by Georgia Southern University

24. Impact, Exposure and Influence of Promotional
Products
Reach:
• 71% of business
travelers randomly
surveyed at DFW
Airport reported
receiving a
promotional product
in the last 12 months
• 33.7% of this group
had the item on their
person – a coveted
location for
advertising
A 2004 Study by L.J. Market Research
Recall:
•76.1% of participants could recall the name of
the advertiser on the promotional product that
they received in the past 12 months
•In comparison only 53.5% of participants could
recall the name of an advertiser they had seen in
a magazine or newspaper in the previous week

25. Impact, Exposure and Influence of Promotional
Products (contd.)
Impressions 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. Impact, Exposure and Influence of Promotional
Products (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. Impact, Exposure and Influence of Promotional
Products (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 the
promotional products that they do not keep. 26% of participants
reported that they give the item to someone else.

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

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

32. The use of promotional products in this
study increased:
• Booth vision
• Remembrance of the invitation
• Feelings of goodwill

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. Findings

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. 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
researches 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

37. Total 8-Month Spending

38. Employee Awards and Incentives
In 1994 Baylor University randomly surveyed
1500 people, asking their opinions regarding
employee awards and incentives.
Survey recipients were asking to rate how most
employees felt about awards and incentives.
A 1994 Study by Baylor University

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. 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. How Incentives are Used

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

44. Findings

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 product
• 40% of the salespeople who used gifts commented
on how well the gifts were received by their
customers

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. Feelings of Goodwill Toward Company and Sales
Representative

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. 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 die-cut slot.
A 1993 Baylor University Study

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 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

52. Findings

53. SECTION D
CONCLUSION

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. If you require any further information, please contact the
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Phone: (61-3) 8645 3000
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