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Presented by: Joseph G. Scott, MAS VP – Scott & Associates, Inc. Promotional Products Industry Overview – Part 2

Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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Page 1: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

Presented by:Joseph G. Scott, MAS

VP – Scott & Associates, Inc.

Promotional ProductsIndustry Overview – Part 2

Page 2: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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…*

Page 3: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

Category Percentage

Wearables 30.62%

Writing Instruments 8.99%

Drinkware 7.63%

Bags 7.45%

Computer Products 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%

Page 4: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

SpecializedPromotional Programs

• Employee Service• Safety• Sales• Process Improvement• Six Sigma• Distributor• Purchase Incentive

Page 5: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Page 6: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

Roles In The Supply Chain

• Supplier• Manufacture/Import products and do/do not decorate

• Promotional Consultant• Sells promotional products to Customer

Page 7: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Off‐Shore Manufacturer

US‐Based Supplier

Promotional Consultant

Customer

Page 8: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

How Promotional ProductsGo To Market – Today

Off‐Shore Manufacturer

US‐Based Supplier

Promotional Consultant

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

Page 9: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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)

Page 10: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Page 11: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

Trend: Develop Promotional Product Solutions

• It’s not about “just selling stuff” anymore• Promotional Products are an Advertising Medium – Sell them accordingly

Page 12: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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!

Page 13: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Page 14: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Page 15: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

Expanding 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

Page 16: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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?

Page 17: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Page 18: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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 analysis (show their competitor’s ads)• Create marketing/advertising mix• ROI• ‘piggy‐backing’, follow‐up, “round two”• The role of Promotional Products

Page 19: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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?

Page 20: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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?

Page 21: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Page 22: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

Offer Inbound Marketing Services

Recipient clicks on Construction Law and receives the Construction Law Newsletter

Page 23: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Page 24: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Page 25: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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

Page 26: Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional Product… · Promotional Products Industry Overview –Part 2. The Four Types of Distributor

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