Promotional merchandise are products branded with a logo or slogan and distributed at little or no cost to promote a brand, corporate identity, or event. Such products, which are often informally called promo products, swag[1] (mass nouns), tchotchkes, or freebies (count nouns), are used in marketing and sales. They are given away or sold at a loss to promote a company, corporate image, brand, or event. They are often distributed as handouts at trade shows, at conferences, on sales calls (that is, visits to companies that are purchasing or might purchase), and as bonus items in shipped orders. They are often used in guerrilla marketing campaigns.
The first known promotional products in the United States were commemorative buttons dating back to the election of George Washington in 1789. During the early 19th century, there were some advertising calendars, rulers, and wooden specialties, but there was no organized industry for the creation and distribution of promotional items until later in the 19th century.
Jasper Meek, a printer in Coshocton, Ohio, is considered by many to be the originator of the industry when he convinced a local shoe store to supply book bags imprinted with the store name to local schools. Henry Beach, another Coshocton printer and a competitor of Meek, picked up on the idea, and soon the two men were selling and printing marble bags, buggy whips, card cases, fans, calendars, cloth caps, aprons, and even hats for horses.[2]
In 1904, 12 manufacturers of promotional items got together to found the first trade association for the industry. That organization is now known as the Promotional Products Association International or PPAI, which currently has more than 10,000 global members.[3] PPAI represents the promotional products industry of more than 22,000 distributors and approximately 4,800 manufacturers.
Swiss parking disk (early 1970s). Selected arrival time shows at the left window, departure at the right. Other side of disk is used for afternoon parking. Disk was a sales promotion for UBS bank.
The UK and Ireland promotional merchandise industry formally emerged as corporate marketing became more sophisticated during the late 1950s. Before this, companies may have provided occasional gifts, but there was no recognised promotional merchandise industry. The real explosion in the growth of the promotional merchandise industry took place in the 1970s. At this time an ever-increasing number of corporate companies recognised the benefits gained from promoting their corporate identity, brand or product, with the use of gifts featuring their own logo. In the early years, the range of products available was limited; however, in the early 1980s demand grew from distributors for a generic promotional product catalogue they could brand as their own and then leave with to their corporate customers.
In later years, these catalogues could be over-branded to reflect a distributor's corporate image; distributors could then give them to their end user customers as their own. In the early years, promotional merchandise catalogues were very much sales tools and customers would buy the products offered on the pages.
In the 1990s, new catalogue services emerged for distributors from various sources. The nineties also saw the emergence of ‘catalogue groups’ - groups that offered a unique catalogue to a limited geographical group of promotional merchandise distributor companies. Membership in a Catalogue Group could also offer improved buying terms, a network of fellow distributor companies, and provide other support services. Examples of catalogue groups include Trade Only Spectrum Catalogue, Page Group and the Envoy Group, offering discounted products to a select group of distributors who have all been in the industry for over three years. Members of the Envoy Group have regional exclusivity as one of their perks providing some protection to the low entry barrier of the market
A woman dressed as a member of the fictional Dharma Initiative from TV series Lost throws a water bottle branded with the series' Oceanic Airlines logo to attendees at a 2008 convention.
Before the 1990s, the industry had a peak season in which the majority of promotional products were sold. The season featured around Christmas and the giving of gifts. This changed significantly in the early 1990s as Christmas gifts became less appropriate in a multicultural society. Companies were also becoming more inventive in their marketing and were now using promotional merchandise throughout the year to support the promotion of brands, products and events. In the early 21st century the role of a promotional merchandise catalogue started to change, as it could no longer fully represent the vast range of products in the market place. By 2007, catalogues were being mailed to targeted customer lists, rather than the blanket postal mailings that had taken place before. The catalogue had now become seen more as a ‘business card’ demonstrating the concept of what a company did, rather than a critical sales tool. In 2009 published results from research involving a representative group of distributor companies, which indicated the usage of hard copy catalogues was expected to fall up to 25% in 2010.
Distributor companies are experts in sourcing creative promotional products. Traditionally, to ensure that they had an effective manufacturer network, they kept themselves aware of the trade product ranges available from mailings received from manufacturers themselves and by attending trade exhibitions across the world, for example the Trade Only National Show in the UK, the Promotional Product Service Institute (PSI) show in Europe and the Promotional Products Association International (PPAI) Show in Las Vegas.
In 2004, the way the trade sourced promotional products began to change with the launch an online trade sourcing service, which united distributors with manufacturers worldwide. This service is purely for vetted trade promotional merchandise distributor companies and is not available to corporate end user companies.
By 2008 almost every distributor had a website demonstrating a range of available promotional products. Very few offer the ability to order products online mainly due to the complexities surrounding the processes to brand the promotional products required.
Sourcing
In the United States, Canada, the United Kingdom, Ireland, Australia and New Zealand companies and corporations mainly purchase their merchandise through promotional merchandise distributor companies. These distributors are called "promotional consultants" or "promotional product distributors".
Promotional products by definition are custom printed with a logo, company name, or message usually in specific PMS colors. Distributors help end-users gather artwork in the correct format, and in some cases also create artwork for end-users. Distributors then send the artwork to the manufacturers, printers, or suppliers along with instructions on where and how to print the logo.
Many distributors operate on the internet and/or in person. Many suppliers wish not to invest in the staffing to service end-users' needs, which is the purpose of merchandise distributor companies.
Products and uses
Electronic calculator, given out during the Novell BrainShare computer conference for 1995A coffee mug is a classical merchandising article employed by a broad range of entities from very small businesses up to multinational companies like IBM, and is also frequently used by musical groups.
Promotional merchandise is used globally to promote brands, products, and corporate identity. They are also used as giveaways at events, such as exhibitions and product launches. Promotional products can be used for non-profit organizations to promote their cause, as well as promote certain events that they hold, such as walks or any other event that raises money for a cause.
Almost anything can be branded with a company's name or logo and used for promotion. Common items include T-shirts, caps, keychains, posters, bumper stickers, pens, mugs, koozies, toys or mouse pads. The largest product category for promotional products is wearable items, which make up more than 30% of the total. Eco-friendly promotional products such as those created from recycled materials and renewable resources have been experiencing a significant surge in popularity.
Most promotional items are relatively small and inexpensive, but can range to higher-end items; for example celebrities at film festivals and award shows are often given expensive promotional items such as expensive perfumes, leather goods, and electronics items. Companies that provide expensive gifts for celebrity attendees often ask that the celebrities allow a photo to be taken of them with the gift item, which can be used by the company for promotional purposes. Other companies provide luxury gifts such as handbags or scarves to celebrity attendees in the hopes that the celebrities will wear these items in public, thus garnering publicity for the company's brand name and product.
Brand awareness is the most common use for promotional items. Other objectives that marketers use promotional items to facilitate include employee relations and events, tradeshow traffic-building, public relations, new customer generation, dealer and distributor programs, new product introductions, employee service awards, not-for-profit programs, internal incentive programs, safety education, customer referrals, and marketing research.[4]
Promotional items are also used in politics to promote candidates and causes. Promotional items as a tool for non-commercial organizations, such as schools and charities are often used as a part of fund raising and awareness-raising campaigns. A prominent example was the Livestrong wristband, used to promote cancer awareness and raise funds to support cancer survivorship programs and research.
Unusual water bottle-like promotional item showcased by Micro Focus at their exhibitor booth during a 2017 conference
Using promotional merchandise in guerrilla marketing involves branding in such a way as to create a specific visual effect, attracting more attention.
The giving of corporate gifts vary across international borders and cultures, with the type of product given often varying from country to country.
Promotional merchandise is rarely bought directly by corporate companies from the actual manufacturers of promotional products. A manufacturer's expertise lies in the physical production of the products, but getting a product in front of potential customers is a completely different skill set and a complex process. Within the UK and Ireland, the promotional merchandise industry a comprehensive network of promotional merchandise distributor companies exist. A promotional merchandise distributor is defined as a company who "has a dedicated focus to the sale of promotional merchandise to end-users". (An 'end-user' is a corporate company or organization that purchases promotional merchandise for their own use.) These distributor companies have the expertise to not only take the product to market but are also to provide the expert support required. The unique aspect of promotional merchandise is that on most occasions the product is printed with the logo, or brand, of a corporate organization. The actual manufacturers rarely have the set up to actually print the item. Promotional merchandise distributor companies are experts in artwork and printing processes. In addition to this, the promotional merchandise distributors also provide full support in processing orders, artwork, proofing, progress chasing and delivery of promotional products from multiple manufacturing sources.
Trade associations
In the UK, the industry has two main trade bodies, Promota (Promotional Merchandise Trade Association) founded in 1958, and the BPMA (British Promotional Merchandise Association) established in 1965. These trade associations represent the industry and provide services to both manufacturers and distributors of promotional merchandise. The BPMA provides a range of services including market research into the UK promotional merchandise industry.[5] Since 2010 the BPMA has partnered with Trade Only, A UK company that organizes the primary UK Trade Show for the Promotional Product Industry, this takes place at the Ricoh Arena in Coventry usually the third week of January. The BPMA host an awards dinner and banquet on the middle night of the exhibition which is called the Trade Only National Show.
In the United States, PPAI (the Promotional Products Association International) is the not for profit association, offering the industry's largest tradeshow (The PPAI Expo), as well as training, online member resources, and legal advocacy. Another organization, the Advertising Specialty Institute, promotes itself as the largest media and marketing organization serving the advertising specialty industry.[6]
In Europe, the existing EPPA will be replaced by a new organization setup by the key countries welcoming all other countries to join. The new umbrella organization will be called EPMO or PME (Product Media Europe).
Market statistics
United Kingdom
According to research completed and published in 2008 the UK and Ireland promotional merchandise industry had an overall value of £850m. By mid-2009 the market had decreased to £712m as the UK's worst-ever recession took a grip. In July 2009 published research demonstrated that the top 10 promotional merchandise products were promotional pens, bags, clothing, plastic items, USB memory sticks, mugs, leather items, polyurethane conference folders, and umbrellas. The July research from a representation industry focus group also found that the current fastest-growing product was hand sanitiser, which at the time coincided with the outbreak and growth of swine flu in the UK.[citation needed]
United States
A promotional bottle of water from Porsche of Ocala in Ocala, Florida
Sales of the US promotional products industry totaled $24 billion in 2017 and growing at a rate of 2.5 percent since 2012, according to statistics released by IBISWorld.[7] There are 26,413 business in this category and they employ 392,820 people across the United States.[7]
The most common promotional items include T-shirts (25% of the market), writing instruments, tech accessories,[7] bags, keychains, brochures, bookmarks and notepads.[7]
Australia and New Zealand
The Australasian Promotional Products Association (APPA) has conducted research to show the value of the promotional merchandise industry in Australia and New Zealand. According to APPA the industry has a turnover of AUD$1340m in Australia and NZ$144m in New Zealand [8] APPA states the effectiveness of promotional merchandise is demonstrated by their research which shows that 52% of recipients of promotional merchandise say their impression of a company is more positive after receiving a promotional product, 76% recall the name advertised on the product, 55% keep the item for more than one year, nearly 50% of recipients use them daily and 52% of people do business with a company after receiving a promotional product. Other considerations and benefits of promotional merchandise include product definition, residual value marketing, accountability, "The Power of Purpose", product types, such as printing and artwork.[9]
Distribution is the process of making a product or service available for the consumer or business user who needs it, and a distributor is a business involved in the distribution stage of the value chain. Distribution can be done directly by the producer or service provider or by using indirect channels with distributors or intermediaries. Distribution is one of the four elements of the marketing mix: the other three elements being product, pricing, and promotion.
In marketing, a product is an object, or system, or service made available for consumer use as of the consumer demand; it is anything that can be offered to a domestic or an international market to satisfy the desire or need of a customer. In retailing, products are often referred to as merchandise, and in manufacturing, products are bought as raw materials and then sold as finished goods. A service is also regarded as a type of product.
In marketing, brand management begins with an analysis on how a brand is currently perceived in the market, proceeds to planning how the brand should be perceived if it is to achieve its objectives and continues with ensuring that the brand is perceived as planned and secures its objectives. Developing a good relationship with target markets is essential for brand management. Tangible elements of brand management include the product itself; its look, price, and packaging, etc. The intangible elements are the experiences that the target markets share with the brand, and also the relationships they have with the brand. A brand manager would oversee all aspects of the consumer's brand association as well as relationships with members of the supply chain.
Merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to displaying products that are for sale in a creative way that entices customers to purchase more items or products.
In marketing, promotion refers to any type of marketing communication used to inform target audiences of the relative merits of a product, service, brand or issue, persuasively. It helps marketers to create a distinctive place in customers' mind, it can be either a cognitive or emotional route. The aim of promotion is to increase brand awareness, create interest, generate sales or create brand loyalty. It is one of the basic elements of the market mix, which includes the four Ps, i.e., product, price, place, and promotion.
Mail order is the buying of goods or services by mail delivery. The buyer places an order for the desired products with the merchant through some remote methods such as:
Once the strategic plan is in place, retail managers turn to the more managerial aspects of planning. A retail mix is devised for the purpose of coordinating day-to-day tactical decisions. The retail marketing mix typically consists of six broad decision layers including product decisions, place decisions, promotion, price, personnel and presentation. The retail mix is loosely based on the marketing mix, but has been expanded and modified in line with the unique needs of the retail context. A number of scholars have argued for an expanded marketing, mix with the inclusion of two new Ps, namely, Personnel and Presentation since these contribute to the customer's unique retail experience and are the principal basis for retail differentiation. Yet other scholars argue that the Retail Format should be included. The modified retail marketing mix that is most commonly cited in textbooks is often called the 6 Ps of retailing.
Loyalty marketing is a marketing strategy in which a company focuses on growing and retaining existing customers through incentives. Branding, product marketing, and loyalty marketing all form part of the customer proposition – the subjective assessment by the customer of whether to purchase a brand or not based on the integrated combination of the value they receive from each of these marketing disciplines.
Food marketing is the marketing of food products. It brings together the food producer and the consumer through a chain of marketing activities.
The following outline is provided as an overview of and topical guide to marketing:
A brand ambassador is a person paid by an organization or company to represent its brand in a positive light, helping to increase brand awareness and sales. The brand ambassador is meant to embody the corporate identity in appearance, demeanor, values and ethics. The key element of brand ambassadors is their ability to use promotional strategies that will strengthen the customer-product-service relationship, influence a large audience to buy and consume more.
A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products get to the end-user, the consumer; and is also known as a distribution channel. A marketing channel is a useful tool for management, and is crucial to creating an effective and well-planned marketing strategy.
An incentive program is a formal scheme used to promote or encourage specific actions or behavior by a specific group of people during a defined period of time. Incentive programs are particularly used in business management to motivate employees and in sales to attract and retain customers. Scientific literature also refers to this concept as pay for performance.
Corporate film refers to any type of non-advertisement based film/video content created for and commissioned by a business, company, corporation, or organization. Today, the vast majority of corporate film content is hosted online and is published on the company’s website page and distributed through social media or email marketing.
Skateboarding sponsorship is the commercial sponsorship of an individual or team of people who participate in skateboarding, competitions or public activities. Typically, the individual or team will receive cash payments, reduced-price or free merchandise or equipment from a sponsor in return for public and in-competition use of that sponsor's merchandise or equipment for promotional purposes and recipient testimonial or endorsement. Skateboarding sponsorship may also extend to the sponsorship of major competitions or venues by larger distributors or manufacturers of skateboarding equipment and merchandise.
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and store value as brand equity for the object identified, to the benefit of the brand's customers, its owners and shareholders. Brand names are sometimes distinguished from generic or store brands.
Affinity marketing is a concept that consists of a partnership between a company (supplier) and an organization that gathers persons sharing the same interests to bring a greater consumer base to their service, product or opinion. This partnership is known as an affinity group.
Promotional apparel is clothing imprinted with a company's name, logo or message. They include shirts, gloves, hats, jackets and any piece of clothing that can be incorporated in marketing and communication campaigns. Promotional clothing is used to endorse a product, service or company agenda. The importance of promotional apparel lies in the relationship that is generated between businesses and the public. Businesses require promotional items to help reach potential customers and clients. With promotional apparel, businesses are able to obtain exposure and brand recognition. Promotional apparel is usually distributed as handouts or shipped as bonus items to accompany a purchase.
In business and marketing, “trade” refers to the relationship between manufacturers and retailers. Trade Promotion refers to marketing activities that are executed in retail between these two partners. Trade Promotion is a marketing technique aimed at increasing demand for products in retail stores based on special pricing, display fixtures, demonstrations, value-added bonuses, no-obligation gifts, and more.
Promotional Products Association International (PPAI) is an international not-for-profit trade association serving the promotional products industry. The association was founded in 1903 and presently has more than 14,000 members.
References
↑ "swag2(def 1c)". Dictionary.com Unabridged. Random House. Retrieved April 19, 2019.
↑ "Association History". ppai.org. Promotional Products Association International. Retrieved 27 January 2014.
↑ "Association Profile". ppai.org. Promotional Products Association International. Retrieved 27 January 2014.
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