THE POWER OF PROMOTIONAL PRODUCTS - Gallant Gifts › pdf › promotional-products-information.pdf · Promotional Products’ Impact on Brand/Company Image An experimental study conducted

THE POWER OFPROMOTIONAL PRODUCTSPROMOTIONAL PRODUCTS

www gallantgifts com

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www.gallantgifts.com1-800-GALLANT (330-1343)

S i A I d I f i d S i i

Table Of ContentsTable Of Contents

Section A: Industry Information and Statistics

Section B: Applications of Promotional Products

Section C: Research Studies

Section D: ConclusionSection D: Conclusion


SECTION ASECTION A

INDUSTRY INFORMATION AND STATISTICSINDUSTRY INFORMATION AND STATISTICS


What are Promotional Products?What are Promotional Products?

Items used to promote a product, service or company program, including advertising specialties, premiums, incentives, business gifts, awards, prizes, commemoratives incentives, business gifts, awards, prizes, commemoratives and other imprinted or decorated items.


How big is theHow big is theP i l P d I d ?P i l P d I d ?Promotional Products Industry?Promotional Products Industry?

.

$$19,440,837,000


Source: The PPAI 2006 Sales Volume Estimate


Industry Sales Volume In Billions

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

5.13 5.226.22

7.018.04

9.49

11.88

13.18

14.94

17.8516.55

15.6316.34

17.3118.01

2006

18.80

2007

19.44

2007 SALESBY PRODUCT CATEGORY(2006 Figures in parentheses)

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Source: 2007 PPAI Productand Program Category Surveys

Wearables30.71% (30.78%)

Electronics 1.69% (1.74%)

Personal 1.68% (1.86%)

Clocks & Watches 1.62% (1.87%)

Food 1.75% (1.91%)

Textiles 2.25% (2.05%)

Writing Instruments10.39% (9.95%)

Calendars 5.51% (6.47%)

Desk/Office/ Business

Accessories

Magnets 2.37% (2.23%)

Buttons/Badges/ Ribbons

1.82% (2.26%)

Computers 3.11% (2.28%)

Automotive 2.48% (2.31%)

Other 2.32% (2.34%)

Games/Toys/Playing Cards/Inflatables

2.21% (2.49%)

Stickers & Decals 2.07% (2.58%)

Bags7.05% (5.81%)Drinkware

6.32% (5.64%)

Housewares 2.35% (2.64%)

Sporting Goods 2.57% (2.95%)

WEIGHT FOR 200748.04% for companies with $2.5

million or more in sales51.96% for companies with less

than $2.5 million in sales

Recognition Awards/Trophies/Jewelry

3.55% (3.56%)

Top Buyers ofTop Buyers ofPromotional Products by IndustryPromotional Products by Industry

1. Education

2. Financial

Promotional Products by IndustryPromotional Products by Industry

3. Not For Profit

4. Healthcare

5. Construction

6. Trade, Professional Associations etc.

7. Real Estate

8. Government

9. Professional: Doctors, Lawyers, CPA’s etc

10. Restaurants & Bars


(2007 Top Buyers study)

SECTION BSECTION B

APPLICATIONS OFPROMOTIONAL PRODUCTSPROMOTIONAL PRODUCTS


2006 SALESBY PROGRAM CATEGORY

(2005 in parentheses)Customer Referral

Internal Promotions

Customer Referral 2.33% (3.15%)

Safety Education/Incentive 3.04% (3.05%)

Marketing Research 1.36% (1.18%)

Other 1.84% (1.69%)

Business Gifts 18.57% (18.22%)New Product/

Service Introduction 5.29% (5.94%)

Internal Promotions 3.47% (4.31%)

Trade Shows 11.36% (12.18%)

Employee Service Awards 5.43% (5.45%)

Not-For-Profit Programs 5.89% (4.69%)

Brand Awareness 8.87% (9.29%)

Dealer/ Distributor

New Customer/Account Generation 7.61% (7.25%)


Source: 2006 PPAI Productand Program Category Surveys

Employee Relations & Events 8.46% (8.39%)

Public Relations 8.75% (7.62%)

Programs 7.73% (7.60%)

Advantages of UsingAdvantages of UsingPromotional ProductsPromotional Products

Flexible

Tangible and long lasting

Promotional ProductsPromotional Products

Tangible and long-lasting

Impact easily measured

Higher perceived value

Complements targeted marketing

Complements other advertising media


SECTION CSECTION C

RESEARCH STUDIES


Promotional ProductsPromotional ProductsA K I di I d M k iA K I di I d M k i

In a study conducted in a controlled environment by researchers at

A Key Ingredient to Integrated MarketingA Key Ingredient to Integrated Marketing

Louisiana State University and University of Texas at San Antonio researchers explored:

Effecti eness of promotional prod cts hen compared to other Effectiveness of promotional products when compared to other traditional forms of advertising such as television and print

Synergistic effects of promotional products when used along with these other mediawith these other media


A 2006 Study by Louisiana State University and University of Texas at San Antonio

Promotional ProductsPromotional ProductsPromotional ProductsPromotional ProductsA Key Ingredient to Integrated MarketingA Key Ingredient to Integrated Marketing

(Contd.)(Contd.)

Seven groups of people were exposed to advertising for a new pizza product via the three mediums, namely, television, print and promotional products.

These groups were:Group 1: TV Only (control group)Group 2: Print Only (control group)Group 3: TV-Print (control group)Group 4: Promotional Product (Experimental group)Group 4: Promotional Product (Experimental group)Group 5: TV-Promotional Product (Experimental group)Group 6: Print-Promotional Product (Experimental group)G 7 TV P i t P ti l (E i t l )



Group 7: TV-Print-Promotional (Experimental group)


(Contd.)(Contd.)

In particular, the questions in the study measured the following:

Advertisement credibility

Attitudes toward product, advertisement or promotional product

Product purchase intention

Referral value

Impressions of the advertisement

Perceptions about the product




(Contd.)(Contd.)

When comparing the effectiveness of promotional products with television and print, findings revealed:

While the print ad came in first overall, the promotional product outperformed television across the board.

Respondents preferred advertising through a promotional product to the television ad in terms of their:

- Positive attitudes toward the ad (41% to 18%)- Positive attitudes toward the ad (41% to 18%)

- Positive attitude toward the product (20% to 16%)

- Message credibility (54% to 33%)

- Purchase intent (25% to 17%) Purchase intent (25% to 17%)

- Referral value (26% to 16%)

Adding a promotional product to the media mix generated favorable attitudes toward the ad in all cases (up to 44%)




(Contd.)(Contd.)

When examining the synergistic effects of promotional products

when used along with other media, findings of the study revealed:revealed:

Integrating a promotional product with television and print ads increased referral value as well as credibility of the message.increased referral value as well as credibility of the message.

Groups who were exposed to promotional products tended to rate the advertising message more positively than those groups not exposed to a promotional product



Promotional Products’Promotional Products’Impact on Brand/Company ImageImpact on Brand/Company Image

An experimental study conducted by Georgia Southern University

5 5

Overall Image

Impact on Brand/Company ImageImpact on Brand/Company Image

y g yshows that recipients of promotional products have a significantly more positive image of a company than those who do not receive promotional products. 3

3.54

4.55

5.5

p p

For the study, the researchers selected, as the test company, a restaurant located in a college town a few miles from a university 0.5

11.5

22.5

3

town a few miles from a university campus.

0Product No Product

Image UniquenessPerception Lunch Patronage LikelihoodDi P t Lik lih d


Dinner Patronage LikelihoodA 2005 Study by Georgia Southern University

P i l P d ’P i l P d ’Promotional Products’Promotional Products’Impact on Brand/ Company Image Impact on Brand/ Company Image (contd.)(contd.)

The group receiving the promotional product was significantly more likely to

Likelihood To Recommend The Business

recommend the business to others than the group that received nothing.

2 8

3

3.2

2.4

2.6

2.8

2

2.2

Product No Product


Product No Product

P i l P d ’P i l P d ’Promotional Products’Promotional Products’Impact on Brand/ Company Image Impact on Brand/ Company Image (contd.)(contd.)

The group receiving the promotional product had a more positive image as

Perception Of The Business As Reflected By Positive Comments

Ab t Th Cevidenced in their comments about the company than the non-recipient control group. The difference was 1

1.2

About The Company

statistically significant.

0.4

0.6

0.8

0

0.2

Product No Product


Product No Product

Promotional Product IncentivesPromotional Product IncentivesProduce Valuable ReferralsProduce Valuable ReferralsFrom Satisfied CustomersFrom Satisfied Customers

Accompanying a request for referrals, an offer of a promotional product incentive or

4.80% 4.80%0 04

0.05

From Satisfied CustomersFrom Satisfied Customers

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

0.80%

0%0.01

0.02

0.03

0.04

than an appeal letter alone.

Offers of promotional product incentives are likely to be substantially more effective than

l i f ti l

0

Appeal Letter alone

Letter plus free promotional productenclosing free promotional products with an appeal letter

Letter plus free promotional product

Letter + promotional product incentive for referral

Letter + promotional product incentive +sweepstakes


A 2005 Study by Louisiana State Universityand Glenrich Business Studies

sweepstakes

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** Source: 2004 study of business travelers at DFW Airport, conducted by L.J. Market Research*** Source: 2005 study titled Promotional Products Impact On Brand/Company Image conducted by Georgia Southern University**** Source: 2004 study titled The Effectiveness Of Promotional Products In Tradeshow Settings conducted by Georgia Southern University

Promotional Products Increase Tradeshow Traffic

Percent Of Recipients That Remembered The Company Name

Inform

Remind

Persuade

• 72% of tradeshow attendees who received a promotional product remembered the name of the company that gave them the product. • 76% of attendees had a favorable attitude toward the company that gave them the product. • Includingapromotionalproductwithapre-showmailingincreasesthe likelihood of an attendee stopping by the booth. • Asarule,promotionalproductsofgreatervaluegeneratemoresalesleads than products of lower value.****

80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%

71.6%

28.4%

Yes No

Effectiveness ofEffectiveness ofPromotional ProductsPromotional Products

at Tradeshowsat Tradeshows

71.6% of attendees who received a promotional product

PERCENT OF COMPANIES THAT REMEMBERED THE NAME OF THE

at Tradeshowsat Tradeshows

remembered the name of the company that gave them the product

76.3% of attendees had a 71.6%

70.00%80.00%

COMPANY

favorable attitude toward the company that gave them the product 28.4%

30.00%40.00%50.00%60.00%70.00%

YesNo

0.00%10.00%20.00%30.00%


A 2003 Study by Georgia Southern University

Impact, Exposure and InfluenceImpact, Exposure and Influenceof Promotional Productsof Promotional Products

76 10%70 00%

80.00%

Reach:

71% of business travelers randomly surveyed at DFW Airport reported receiving a promotional product in

53.10%

76.10%

50.00%

60.00%

70.00%g p pthe last 12 months.

33.7% of this group had the item on their person - a coveted location for advertising.

20.00%

30.00%

40.00%Recall:

76.1% of participants could recall the name of the advertiser on the promotional product that they

0.00%

10.00%

Print Media PromotionalProducts

p p yreceived in the past 12 months.

In comparison only 53.5% of participants could recall the name of an advertiser they had seen in a


Productsmagazine or newspaper in the previous week.

A 2004 Study by L.J Market Research

I E d I flI E d I flImpact, Exposure and InfluenceImpact, Exposure and Influenceof Promotional Products of Promotional Products (contd.)(contd.)

Impression of the Advertiser

52% f ti i t i th t d did b i ith 52% of participants in the study did business with the advertiser after receiving the promotional product.Of th h h d t d b i ith th 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 itemwith the company that gave them the item52.1% of participants reported having a more favorable impression of the advertiser since receiving the item


receiving the item.


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 had received stated that they used it at least once a week45.2% used it at least once a day

h h f f h l h 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


22% of participants kept the promotional product that they had received for at least six months.


Why Keep the Promotional Product

75 4% of those who received a promotional product 75.4% of those who received a promotional product stated that they thought the item was useful20.2% kept the promotional product because they thought it was attractiveg

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 t l


to someone else.

Clients RespondClients Respondto Business Giftsto 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:

h l h da) 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)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

Clients RespondClients Respondto Business Giftsto Business Gifts

4.0

4.5

5.0

3 6

3.74.2

4.7

2.5

3.0

3.5

Satisfaction

3.02.8 3.6

1.0

1.5

2.0 Intent to Buy

0.0

0.5

Letter Letter+Silver Gift Letter + Gold Gift


1 = Very Dissatisfied/Very unlikely to buy and 7 = Very Satisfied/Very likely to buy

Trade ShowsTrade 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).

h h d b h ff hThe researchers measured booth traffic, post-show memory of having received the invitation and goodwill toward the company.


A 1991 Study by Exhibit Surveys, Inc

Trade ShowsTrade ShowsBooth Visitation RatesBooth Visitation Rates

25%

15%

20%

11.6%10%

4.2%

0%

5%


0%Product + Offer for Matching

Incentive at ShowInvitation Only

The use of promotional productsThe use of promotional productsin this study increased:in this study increased:

Booth visitation

Remembrance of the invitation

Feelings of goodwill


Improve Direct Mail Response RatesImprove Direct Mail Response Rateswith Promotional Productswith Promotional Products

The use of promotional products in conjunction with a sales letter can make a significant difference in direct sales letter can make a significant difference in direct mail response rates.

The use of promotional products can also improve a The use of promotional products can also improve a business’ effectiveness in converting leads to sales appointments.


A 1992 study by Silver Marketing Group

FindingsFindings

11%

13%

15%

7%

9%

11%

1 8%2.7%

7.3%

1%

3%

5%

1.8%

-1%

1%

Sales Letter Letter &Promotional Product

Letter plus offer ofPromotional Product


Incentive* In terms of appointments secured

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 respond generated four times as many responses as a sales letter alone.

The use of a Promotional Product as an incentive to The use of a Promotional Product as an incentive to respond reduced the cost per response by two-thirds.


Repeat BusinessRepeat 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 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

Total 8Total 8--Month SpendingMonth Spending

$219$200

$250

$173$150

$

$92$50

$100

$0

$50

Promotional Coupon Sales Letter


PromotionalProduct

Coupon Sales Letter

Employee AwardsEmployee Awardsand Incentivesand Incentives

In 1994 Baylor University randomly surveyed 1,500 people asking their opinions regarding employee awards people, asking their opinions regarding employee awards and incentives.

Survey recipients were asked to rate how most employees Survey recipients were asked to rate how most employees felt about awards and incentives.


A 1994 Study by Baylor University

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 Employees encourage their co-workers to work toward awards and incentives.


Motivating through IncentivesMotivating 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 current users of merchandise and travel items for motivation/incentive applications.

The study revealed that American businesses spend $23 The study revealed that American businesses spend $23 billion annually on merchandise and travel for motivational use.


A 1999 Incentive Federation Study

How Incentives are UsedHow Incentives are Used

70%

80%

90%

82%

66%61%50%

60%

70%

66%

48%

20%

30%

40%

0%

10%

Sales Incentives Non-Sales


Recognition/Motivation

Percentage of IncentivePercentage of IncentivePrograms that AchievePrograms that Achieve

Established GoalsEstablished Goals

88 00%

89.00%

Established GoalsEstablished Goals

88.30%

86.00%

87.00%

88.00%

83 10%83.70%

83.00%

84.00%

85.00%

83.10%83. 0%

80.00%

81.00%

82.00%

Dealer Programs Consumer/User Programs Sales Programs


Dealer Programs Consumer/User Programs Sales Programs

Generate Customer ReferralsGenerate Customer ReferralsUsing Promotional ProductsUsing Promotional Products

A 1993 study by Baylor University found that customers who receive promotional products are more willing to

id l d h h d ’ i provide leads than customers who don’t receive promotional products.

Twenty Mary Kay consultants participated in a study 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 items to their customers. Both groups then asked customers (200 in all) to refer names of acquaintances.


A 1993 Study by Baylor University

FindingsFindings

44%40%

45%

50%

44%

35.8%

25%

30%

35%

Gift

N Gif

13 3%10%

15%

20%No Gift

13.3%11.7%

0%

5%

10%

Referrals Per Salesperson Number of Customers giving


p g gReferrals

Customers who received a promotional product were 14% more likely to provide leads than those who did notwho did not.

Sales people who gave promotional gifts to their customers received 22% more referrals than sales customers received 22% more referrals than sales people who did not use promotional products.

40% of the salespeople who used gifts commented p p gon how well the gifts were received by their customers.


Build Customer GoodwillBuild Customer Goodwillwith Promotional Productswith 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 letter2. a lower priced highlighter pen plus a letter 3. a letter only.y


A 1992 study by Baylor University

Feelings of Goodwill TowardFeelings of Goodwill TowardCompany and Sales RepresentativeCompany and Sales Representative

5

6Scale:

1 negative/6 positive

Company and Sales RepresentativeCompany and Sales Representative

4

5 1=negative/6=positive

3.222.72

2.122

3

0

1

More Expensive Gift Less Expensive Gift Sales Letter


More Expensive Gift(Calculator)

Less Expensive Gift(Highlighter)

Sales Letter

The use of promotional products in this study resulted in:

An increase in feelings of goodwill toward the company An increase in feelings of goodwill toward the company and its salespeople.

A more positive attitude among those who received the 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.

Dimensional MailingsDimensional 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 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 d i d ith groups and received either:

1. sales letter and sales literature2. sales letter, literature and a promotional product, p p3. the sales letter, sales literature and promotional product

but delivered in a box with a die-cut slot.


A 1993 Baylor University study

Dimensional Direct MailDimensional Direct MailResponse RatesResponse Rates

4%

5%

3.3%3%

1.9% 2.1%

1%

2%

0%Sales Letter Letter and Promotional

ProductLetter, Promotional

Product & Dimensional


Packaging

Improve Response RatesImprove Response Ratesto an Advertising Campaignto an Advertising Campaign

with Promotional Product Mailingswith Promotional Product Mailingswith Promotional Product Mailingswith Promotional Product Mailings

In a 1996 study PPAI helped a national tile distributor i h f di il d i l integrate the use of direct mail and promotional products into a print advertising campaign.

One group of subscribers received only the trade adOne group of subscribers received only the trade ad.

Other groups received a sales letter, a promotional product or a promotional product incentive along product, or a promotional product incentive along with the trade ad.


1996 study by Dallas Marketing Group

FindingsFindings

9.55%8%

9%

10%

5%

6%

7%

4.20%

2%

3%

4%

5%

.70%

2.30%

0%

1%

2%

Trade Ad Ad+Letter Ad+ Stress Ball Ad + Calculator


Trade Ad Ad Letter Ad Stress Ball Ad CalculatorIncentive

SECTION CSECTION C

CONCLUSION


The value of Promotional Products is in their ability to carry a message to a well-defined audience. Because the products g pare 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 i d t d it li tiindustry and its applications.


This information has been made available to you courtesy ofs o at o as bee ade ava lable to you cou tesy oGallant, Inc.

For more information contact:Gallant, Inc.

775 S. Kirkman Road #117O l d Fl 32811


Orlando, Fl. 32811www.gallantgifts.com

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THE POWER OF PROMOTIONAL PRODUCTS - Gallant Gifts › pdf › promotional-products-information.pdf · Promotional Products’ Impact on Brand/Company Image An experimental study conducted