Presented by:

Joseph G. Scott, MAS

VP – Scott & Associates, Inc.

Promotional ProductsIndustry Overview – Part 2

The Four Types ofDistributor Salespeople

• Order Takers• Wait for the Phone/e-mail

• Order Getters• Hey, wanna buy some pens?

• Order Makers• What about those trade shows? Let’s get things on

order in advance.• Promotional Consultant

• I noticed on your web site that you plan to exhibit at 23 trade shows next year. What are your desired outcomes? What is your Life Time Value of a client? What is the ROI of your advertising…*

Category Percentage

Wearables 30.62%

Writing Instruments 8.99%

Drinkware 7.63%

Bags 7.45%

Computer Prodsucts 5.94%

Desk/Office/Business 4.15%

Recognition Awards 3.76%

Calendars 3.73%

Electronic Devices 3.18%

Textiles 2.47%

Top Ten – 77.92%

SpecializedPromotional Programs

• Employee Service

• Safety

• Sales

• Process Improvement

• Six Sigma

• Distributor

• Purchase Incentive

People Who Can Help You

• Multi-Line Rep

• A salesperson who calls on promotional consultants on behalf of a number of suppliersSupplier Rep

• Works for a single supplier and helps them sell their products in a defined territory

Roles in the Supply Chain

• Supplier

• Manufacture/Import products and do/do not decorate

• Promotional Consultant

• Sells promotional products to Customer

How Promotional ProductsWent To Market – Back in “The Day”

Off-Shore Manufacturer

US-Based Supplier

Promotional Consultant

Customer

How Promotional ProductsGo To Market – Today

Off-Shore Manufacturer

US-Based Supplier

Promotional Consultant

Customer

Considered by the Federal Government to be “The Manufacturer” for Product Safety Laws

Supplier Order Components

• Don’t Assume Anything, especially w/reorders• Quantity (if it’s large, write it in words)• Product Number• Description• Price• Setup Charges• Logo file in proper format• Logo location, PMS colors, if applicable• Delivery Address• Delivery/Event Dat3• Your Contact information (phone, email, fax)

Changes in Promotional ProductMedia and Imprinting Methods

• Substrates

• Textiles – Bamboo, Technical Fabrics

• Recycled Plastics

• Imprinting Methods

• Laser on Fleece, Appliqué

• Four-color process printing

• Variable Data

Trend: Develop Promotional Product Solutions

• It’s not about “just selling stuff” anymore

• Promotional Products are an Advertising Medium – Sell them accordingly

Marketing Our Media vs. Others

• Ours is a $20.04 Billion industry• Advertisers bought more of our media in 2014 than:

– Radio: $18.46 Billion – Newspaper: $16.4 Billion– Outdoor Advertising: $7.0 Billion

• We can engage all five senses:– Touch – Weight or Texture– Sight– Sound – Sound Chip– Smell – Scented Products– Taste – Gimme Some Chocolate

• We Are Not An Interruption! We are Welcomed!

Move From Selling Stuff,To Promotional Products Solutions

• Sell Stuff

• Purchasing Department = Price

• Sell Solutions

• Decision Makers = Margin

• Integrated Marketing Plan

• Shows how your client will meet their objectives. A schedule showing all marketing activities, I.e. Promotions, Programs, Trade Shows, Print, Radio, TV, Events, Outdoor, Indoor, Mobile Marketing, Online Ads, Social Media

Developing Promotional Products Solutions

• Selling Promotional Products - How many competitors are there?

– In MSP there are hundreds

• Promotional Products Solutions

– In MSP there are only dozens

– Few of them call on $1MM - $10MM businesses

How to Change Your Comfort Zone

• Expand your offerings

– You don’t have to do them yourself

– Find a small marketing firm in your area

– Get acquainted

– Tap into their network

– Sell their work, mark it up, bill the client

– Get promotional product leads from them

Develop a Marketing Plan

• Quantify Client Objectives

• Quantify the Client’s Financial Benefit – LTV of Client

• Get Agreement on ROI Expectations

• Objectives + LTV + ROI = Client’s Investment

• Discuss Meeting/Exceeding/Falling Short

• Determine Message & Call-To-Action

• Determine Media That Will Deliver the Message

• How/When Will the Results Be Measured?

• Is There A Mechanism to Process the Leads?

Different Ways to MarketPromotional Products

• Market Yourself First!• Get to Meet as Many People as Possible • <10 Words: What do you do for a living?• Ask for Referrals• “Lumpy Mail” Using Promotional Products• Self-Promotion Pieces (hand ‘em out)• Speak to End-Buyer Groups• Volunteer First – The Business will Arrive Later• Mobile Marketing + Promotional Products

Strategic Marketing

• What are the client’s objectives?

• Who makes up the Target Market?

• Where has the client been positioned by the market?

• Target Market research, data collection & analysis

• Competitive assessment (show their competitor’s ads)

• Create marketing/advertising mix

• ROI

• ‘piggy-backing’, follow-up, “round two”

• The role of Promotional Products

OAR / MTV

• Objectives/Outcomes– What do you want to have happen? Dollars, Patients, Clients

• Analysis

– What does the Objective mean to your bottom line?

• Return On Investment

– What kind of ROI do you want?

OAR / MTV

• Message

– Why should anyone care your business exists?

• Target

– Who should get the Message?

• Vehicle

– How will the Message get to the Target?

Offer Inbound Marketing Services

• Sign-up for an Inbound Marketing Service

• Start with email marketing

– Import their list into the email service

– Use a template and craft their message w/links

– Send email

• Clicks connect with the client’s web traffic

• Automatically send relevant content based upon the prospect’s interest

Offer Inbound Marketing Services

Recipient clicks on Construction Law and receives the Construction Law Newsletter

Product Safety: Our Responsibility

• California Proposition 65 (Prop. 65)

• Consumer Product Safety Commission

• Lead Standards for Children’s Products

• Container Security

• Supply Chain Management

• Polycarbonate?

• www.ppa.org Click on PPAI Prod Safety Logo

Social Media’s Role and the Affect onSuppliers & Promotional Consultants

• Helps both to engage (prospective) clients

• Engaging content will be shared

• Inform, don’t sell

• (prospective) clients can easily reach you

• “Customer Service in Public”

• Collect Reviews

• Advertise

Current Industry Issues

• Product Safety (California’s Prop 65)• Requires the State to publish a list of chemicals known to

cause cancer or birth defects or other reproductive harm

• Products shipped to/used-in California must disclosure if the product/imprint contains any Prop 65-listed chemicals

• Safety Recalls• Make sure your products are safe, per CPSA

• Pharmaceutical Legislation• Limiting the influence of gifts from Pharma to physicians

Product Safety

• Become “Product Safety Aware” via PPAI• Take the necessary, free courses in PPAI’s on-demand library

• CAS Required Product Safety Basics (60-90 minutes)

• Undue Influence Training (60 minutes)

• Prop 65 and State Regulation (60 minutes)

• Select one additional course

• A really good idea – you can use this knowledge to more effectively differentiate you from your competition