Promotional products work if used right

by  Emily Cade 
Pacific Business News

When times are tough, promotional products can be an economical way to promote business and merchandise and foster customer appreciation.

"To a large degree, promotional products are very cost effective," said Bill Prickett, spokesman for the Promotional Products Association International (PPAI), a trade association based in Irving, Tex.
Even with a smaller budget, promotional products enable a business to actually do promotion, Prickett said.

The concept of promotional products may strike one as kitschy, but the industry is a huge one -- $16.5 billion in revenue in the most recent survey in 2001 -- an indication of just how widespread demand really is. Indeed, all those logo T-shirts, mugs and mouse pads are part of some company's concerted effort to make you remember its name.

And it's more than just recall. A study performed by Baylor University in 1992 found that customers who received promotional products expressed more goodwill toward the company and its salespeople than those who did not. A similar experiment performed by Southern Methodist University in 1994 found that new customers who received promotional products spent 139 percent more than those who received only a welcome letter. This indicates that augmenting an advertising campaign with promotional products can positively impact both your company's image and your sales.

Promotional products also can be effective in generating customer referrals, increasing traffic at trade shows, publicizing new products or services and rewarding employees. One of the major benefits of promotional products is that they are items people use repeatedly, so they continue to have an effect every time someone picks them up.

On its Web site, www.BuildAPromotion.com, PPAI suggests several steps to building an effective campaign using promotional products.

· Define a specific objective. The uses for promotional products are numerous. Whether you are going to a trade show or introducing a new service, the kind of product you buy is determined by what you want to accomplish with the promotion.

· Determine a workable distribution plan. According to PPAI, research shows that a carefully executed distribution plan significantly increases the effectiveness of promotional products. Create a plan to ensure that the products reach the desired audience. This makes your promotion more effective in cost and in result.

· Create a central theme and develop a message to support the theme. PPAI suggests tying the campaign together with a common color, logo and message that complement each other. The logo should be simple, striking and recognizable. Also, choose a product that ties to your theme and the nature of your business to help solidify your message. "For example," Prickett said, "if you're a bank, you can give away a bank. You can use something that gives an image and carries a message."

·Use a qualified distributor. There are literally thousands of companies hawking promotional products on the Web, but a good promotional-products distributor not only can sell you an item, but can advise you on product ideas and the nature of your campaign, from distribution to packaging.

"The main advice that I have is ... utilize a professional distributor," Prickett said. "The reason is, you have someone who can work with you who knows the industry, the process, and the products."

The BuildAPromotion Web site features a search engine of promotional-products distributors throughout the country who are members of the association. Prickett cites the company's decision to join the association as a commitment to the quality and integrity of the industry. Part of this membership entails agreeing to a code of ethics and professionalism. Prickett also noted that some distributors specialize in particular products or markets while others are more general. He suggested looking into what kind of companies a distributor has worked with and compare that information with your company's aims.

Another important factor to consider is price. Promotional products run the gamut from the most basic -- ballpoint pens -- to the extravagant -- diamond-encrusted watches. Costs are a combination of both the type of product and quantity desired, as well as the style and design of the logo.

Overall, promotional products are most useful as business-building tools when they are incorporated into a well-thought-out advertising plan that is both creative and professional.