8/8/2019 The Benefits of Promotional Products

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The Benefits of Promotional

Products

Submitted by Jessica Cumbie

Until recently, the use of promotional products for business marketing has been kept to aminimum. Promotional products are now gaining more popularity and because of the benefitsassociated with promotional product marketing, more businesses are flourishing as well.

In 2005, Georgia Southern University conducted a study to see the reaction of consumers whoreceived a business gift. Those who received a promotional product had a significantly higherpositive image and perception of the company than those who did not receive a promotionalproduct. The experiment was conducted using a restaurant located a few miles from a university.

Also, those who received the promotional product were more inclined to recommend thebusiness to others than those who did not receive a promotional product.

A 2003 study by Georgia Southern University on benefits of promotional products at tradeshows,confirmed that 71.6% of recipients of a promotional product remembered the name of thecompany that gave them the product and 76.3% of the attendees were more favorable to thecompany that gave them the product as well.

Business travelers were randomly surveyed in an airport and were asked if they had received apromotional product in the last 12 months. According to a study conducted by L.J. MarketResearch, 71% claimed they had received a product and out of those, 33.7% were carrying the

product on them. Also 76.1% of those who claimed they had received a promotional product inthe last 12 months remembered the name of the company and only 53.1% of those participatingin the survey could remember the name of an advertiser in a magazine or newspaper they hadseen the previous week. Furthermore, 52% of those participants who had received a productproceeded with doing business with the company and 52.1% claimed to have a more positiveimage of the company.

The participants also were making use of the products given. On a daily basis, 45.2% used theproduct and 73% stated they made use of the product at least once a week. Those, however, whodid not keep the product, were asked what they did with it and 26% responded with giving theproduct to someone else.

Promotional products also increase sales and customer attitudes, according to a 1998 study byWayne State University. The study used three groups, each given a different reward from acompany and then were compared with each other. The letter group received a letter of thanksfrom the company, while the silver and gold groups received a thank you letter along with asilver desk set (worth $20) or a gold desk set (worth $40). On a scale of 1to 7 for satisfactionrating, 1 being very dissatisfied and 7 being very satisfied, those participating in the letter groupreceived a 3.0 for satisfaction, while the silver and gold groups received a 3.6 and a 4.2 for

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satisfaction, significantly higher than the letter group. On a scale from 1 to 7 for intent to buy, 1being very unlikely to buy and 7 being very likely to buy, the letter group scored a 2.8 while thesilver and gold groups scored a 3.7 and 4.7. The silver and gold groups’ intent to buy was greaterby 10 to 20% than that of the letter group’s.

In 1993, Baylor University conducted a survey involving 20 Mary Kay representatives. Ten weregiven promotional products to give to their customers and the other ten offered no promotionalproducts to their customers. Results showed that 13.3% of customers who received a gift referredMary Kay products, while only 11.7% of those customers not to receive a gift referred Mary Kayproducts. Also 44% of Mary Kay representatives referred Mary Kay products, while only 35.8%of representatives made Mary Kay product referrals and 40% of Mary Kay consultants whohanded out the promotional products commented on how well the products were received.

Promotional products have a wide range of benefits for businesses including increased sales,increased product referrals, improved image to customers, as well as continual advertising for thecompany by way of recipient. The use of promotional products can affect the success of a

business, and because of recipients’ positive attitude towards promotional products a businesscan flourish more effectively.

For more information, please visit ppa.org.