The Power of Promotional Products

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The Power of Promotional Products

• Promotional Products Association International

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Table Of ContentsSection A Industry
Information and StatisticsSection B
Applications of Promotional Products
Section C Research StudiesSection D
Conclusion
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SECTION AINDUSTRY INFORMATION AND STATISTICS
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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.

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How big is the Promotional Products Industry?
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18,013,763,752
Source The PPAI 2005 Sales Volume Estimate
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Growth of Industry Sales(PPAI Sales Volume
Estimates by Year)
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2005 SALES BY PRODUCT CATEGORY (2004 Figures in
parentheses)
Games 1.77 (2.72)
Stickers Decals 2.02 (2.12)
Personal 1.58 (1.31)
Electronics 1.95 (1.71)
Food 1.74 (1.73)
Buttons/Badges/ Ribbons 2.12 (1.53)
Clocks Watches 2.20 (2.16)
Automotive 2.27 (2.15)
Computers 2.28 (1.96)
Housewares 2.36 (2.30)
Wearables 29.16 (29.98)
Magnets 2.40 (1.84)
Sporting Goods 2.44 (2.34)
Textiles 2.60 (2.60)
Writing Instruments 10.39 (10.61)
Other 2.74 (3.76)
Recognition/Awards/Trophies/Jewelry 4.54 (4.32)
Calendars 7.20 (7.46)
Desk/Office/ Business Accessories 6.02 (5.69)
Drinkware 6.20 (6.25)
Bags 6.02 (5.46)
Source 2005 PPAI Product and Program Category
Surveys
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Top Buyers of Promotional Productsby Industry

• 1. Education
• 2. Financial
• 3. Healthcare
• 4. Not for Profit
• 5. Construction
• 6. Government
• 7. Trade, Professional Associations etc.
• 8. Real Estate
• 9. Automotive
• 10. Professional Doctors, Lawyers, CPAs etc

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SECTION B APPLICATIONS OF PROMOTIONAL PRODUCTS
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2005 SALES BY PROGRAM CATEGORY (2004 in
parentheses)
Safety Education/Incentive 3.05
(3.39)
Marketing Research 1.18 (1.21)
Other 1.69 (1.13)
Customer Referral 3.15 (3.61)
Internal Promotions 4.31 (5.63)
Business Gifts 18.22 (17.84)
Not-For-Profit Programs 4.69 (4.99)
Employee Service Awards 5.45 (5.46)
Trade Shows 12.18 (12.14)
New Product/ Service Introduction 5.94
(5.78)
New Customer/Account Generation 7.25
(6.53)
Brand Awareness 9.29 (9.70)
Dealer/ Distributor Programs 7.60 (6.91)
Employee Relations Events 8.39 (8.76)
Public Relations 7.62 (6.92)
Source 2005 PPAI Product and Program Category
Surveys
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Advantages of Using Promotional Products

• Flexible
• Tangible and long-lasting
• Impact easily measured
• Higher perceived value
• Complements targeted marketing
• Complements other advertising media

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SECTION CRESEARCH STUDIES
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Promotional Products Impact on Brand/ Company
Image

• An experimental study conducted by Georgia
  Southern University shows that recipients of
  promotional products have a 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 a college
  town a few miles from a university campus.

A 2005 Study by Georgia Southern University
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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.

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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.

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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 than 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
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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
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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
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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

• 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.

A 2004 Study by L.J Market Research
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Impact, Exposure and Influence of Promotional
Products (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.

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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.

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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 promotional products that they do not keep.
  26 of participants reported that they give the
  item to someone else.

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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
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Clients Respond to Business Gifts
1 Very Dissatisfied/Very unlikely to buy and 7
Very Satisfied/Very likely to buy
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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
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Trade ShowsBooth Visitation Rates
176 Increase
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The use of promotional products in this study
increased

• Booth visitation
• Remembrance of the invitation
• Feelings of goodwill

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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
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Findings
In terms of appointments secured
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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.
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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
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Total 8-Month Spending

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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
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• 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.

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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
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How Incentives are Used
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Percentage of Incentive Programs that Achieve
Established Goals
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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
dont 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
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Findings
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• 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

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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
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Feelings of Goodwill Toward Company and Sales
Representative
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• 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.

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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
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Dimensional Direct Mail Response Rates
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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
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Findings
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SECTION DCONCLUSION
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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.
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This information has been made available to you
courtesy of Promotional Products Association
InternationalFor more Information
contact PPAI, 3125 Skyway Circle North, Irving,
Texas 75038 www.ppa.orgUPIC PPAI