| What are Promotional Products?
|
| Promotional products - usually imprinted with
a company's name, logo or message - include useful or decorative articles
of merchandise that are utilized in marketing and communication programs.
* Imprinted products that are distributed free are called advertising
specialties.
* Imprinted items given as an incentive for a specific action are
known as premiums.
* Business gifts, awards and commemoratives are also considered promotional
products.
In a very broad sense, any product used to promote a business may
be considered a promotional product.
|
| Promotional
Product Categories |
Advertising Specialties
Ad specialties have these key elements: 1) display an advertising or
promotional message; 2) placed on (or with) a useful item, and 3) given
with no strings attached.
Premiums and Incentives
A promotional product is a premium when it is offered as an incentive
to produce a specific action. (e.g. buy this book and get a free bookmark)
Recognition Awards
Plaques, service pins, trophies, and other gifts that recognize an
individual's performance can be categorized as recognition awards.
Business Gifts
Typically given by businesses to customers and employees, and occasionally,
to suppliers. In the context used here, business gifts are not extravagant
gifts and trips. Gift-giving reasons cited by companies are: to thank
customers, to develop business, and to recognize employee performance
and longevity.
|
Why
Use Promotional Products? |
Promotional Products are increasingly positioned
as part of the promotion buyer's promotional and communications mix.
We live in an age of mass advertising, where people are bombarded with
visual advertisements on a daily basis. Promotional Products advertising
has proven to be much more effective in its unobtrusive, targeted, personalized
approach.
Due to its useful nature, promotional products tend to be kept and
used, leading to high visibility, recognition and retention of the advertiser's
name and/or message.
The use of promotional products is most effective when the target audience
is specifically identified. Items can then be selected to appeal to
that audience, creating a positive response and eliminating waste distribution.
Which products to choose when there are tens of thousands of products
to choose from? This task is most easily accomplished with the help
of a professional promotional product distributor.
|
The Distributor and the Promotion
Buyer/Client? |
| Distributor selling ranges from simply presenting
products to operating as sales promotion agencies for their clients.
The latter creates full-blown promotional programmes and offers such
services as copywriting, artwork, catalogue development, warehousing
and fulfillment.
By working with a distributor, promotion buyers can save time and
energy in their search for the right products at the right price.
The distributor's expertise allows him/her to easily find and bring
products to the client, thus providing a "one-stop shopping"
service.
This type of service also builds long-term relationships between
the distributor and the client. Through knowledge and experience,
the distributor is better able to ascertain the needs of the promotion
buyer in order to obtain the desired results.
|
| Product vs. Programme Advertising |
| Product sales are made on the basis of being
in the right place at the right time with the customer asking a have-you-got
question.
Idea or programme selling is rooted in product selling, as it requires
knowledge of what promotional products are appropriate. It also requires
an understanding of how a client's business works, including their
goals and obstacles. Idea selling requires having insight into specific
promotional or communication problems the client might be facing and
being able to solve these problems with promotional products applications.
|
| Size of the Industry |
| The promotional marketing industry is a $1.2
BILLION industry in Canada, according to recent independent research
conducted in 1999 by Professor Michel Laroche of Concordia University
in Montreal, Quebec.
(Update June 2001: $1.8 billion sales in Canada...)
The U.S. Promotional Products industry posted sales of $17,854,482,234
in 2000, according to the annual industry survey conducted for PPAl
in Irving, Texas. Based on the fact that Canadian figures have been
approximately 10% of those of the U.S., we could estimate the Canadian
industry posted sales of 1.8 billion dollars in 2000.
|
| Best Selling Promotional Products |
1. Wearables (Apparel) - 41.1%
2. Writing Instruments - 8.3%
3. Glassware/Ceramics - 6.9%
4. Recognition Awards (incl. Trophies, emblematic jewellery, clocks
and watches) - 6.2%
5. Textiles (incl. Tote bags, flags, umbrellas) - 5.9%
6. Calendars - 4.3%
7. Desk/Office/Business Accessories (include calculators) - 4.2%
8. Buttons/Badges/Ribbons/Stickers/Magnets (incl. signs/banners) - 3.9%
9. Sporting Goods/Leisure products/Travel Accessories (incl. picnic/party
products) - 3.5%
10. Automotive Accessories (incl. key tags, License plate frames) -
3.4%
11. Computer Products (include mouse pads, monitor frames) - 2.3%
12. Houseware/Tools (include measuring devices, tool kits, flashlights)
- 1.9%
13. Games/Toys/Playing Cards/Inflatables - 1.9%
14. Personal/Pocket-Purse products (include grooming aids, pocket knives,
wallets) - 1.8%
15. Food Gifts - 1.5%
16. Electronic Devices and Accessories (include music CDs, phone cards)
- 0.7%
17. Others - 2.3%
Source: Promotional Products Association of Canada (PPAC), Promotional
Products Association International (PPAI)
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