Is the current businesses climate affecting the promotional products industry?
It is, in both good and bad ways. From a positive perspective, as marketing budgets get tighter, clients have to find more creative ways to make their budget stretch further. Creative marketers are using promotional products as an integral part of their marketing strategies because the value of promotional products retains the 'message' in the market place longer than traditional forms of advertising. In comparison to traditional above the line advertising expenditures, promotional products are normally less expensive.
The negative side to that is that many marketers are looking to spend very conservatively, so all forms of advertising is highly calculated and if the client is unaware of the power of promotional products, could just write the profession off as 'give-a-ways'. Also, as there are more companies claiming to sell promotional products, so the likelihood of finding unethical or unprofessional companies is higher than ever before.
What are the latest sales figures for promotional products?
Promotional Product Sales in Australia –
$2.02 billion (an increase of 45% in the last 5 years)
Promotional Product Sales in New Zealand –
$234 million (an increase of 40% in the last 5 years)
What are the current trends in the industry?
Green Products are a trend. Most clients want to soften their carbon footprint. There are environmentally friendly products that are responsible, creative and still inexpensive through APPA members. BUT there is a lot of misinformation about what constitutes a ‘green’ product. Calling something 'Eco' doesn't mean it has any particular environmental value. APPA is available for advice on the subject.
Other trends:
• On-line focus groups to ensure a consumer driven promotions
• On-line based purchasing and logistical tracking of corporate merchandise ranges
• Products that plug into today’s technology – Products activated by digital signals or exposure to the sun.
• Increased time lines, well thought out applications of the advertising medium
• High perceived value over cheap and nasty.
On the topic of ‘High perceived value’, are people spending more on their products?
Yes, for two main reasons. First, research shows that consumers who are given promotional products that fail to work or aren't useful to the recipient directly connect a negative connotation to the company who has given it out.
Second, our culture has already experienced the 'glut' of inexpensive promotional products. We have refined our tastes and now it isn't good enough to simply give something away, it needs to have a more intrinsic value to work. People want promotions to challenge and entertain them. Engagement is crucial, that takes a professional who know the industry to properly implement a successful promotion.
Is there an increased awareness among marketers of the advantages of working with promotional products professionals? It is important to consider the promotional product professional as a creative extension of your marketing department, more than just commodity suppliers.
What should I ask my promotional products company?
• How long have they been in the promotions industry?
• How long have they been APPA Members?
• What is their policy on return of products?
• What is their policy on timely delivery of goods?
• What is their policy on quantity-short product deliveries?
• Have they received any APPA awards for creativity?
What should I tell my promotional products company?
• The audience and objectives of your promotion. (To reward consumers? Increase sales? Acknowledge external business partners or internal staff? To brand or increase attendance to an event?)
• The response you want from the recipients of these products.
• The information about your brand that you want to communicate.
• The information from the recipients you would find useful, if you were able to obtain it.
• Historically, some of the other promotions done by your company.
• What would you like the recipients to think about your company after the promotion is finished?
What shouldn’t I hear from my promotional products company?
• That they will undercut any price.
• That promotional products are so cheap they can not be guaranteed to work.
• That there is no reason for them to be an APPA member.
• That there is no reason to sign off on art work approvals.
Understanding the medium:
A product is just a product until it is linked with a promotion, it then becomes an advertisement. The most successful advertising campaigns are the result of a planed strategy and roll out. Throwing products at your target market without that planning is a waste your marketing dollars.
The product is only one component in the whole campaign. The creativity used to illicit a response is the key to increasing profits and promoting brands.
Local knowledge, experience and mistakes no company can afford:
APPA members understand cultural subtleties and differences that can be crucial in the success of a promotional campaign. APPA members are experienced importers and manufactures who are educated and in touch with the styles, trends, potential pitfalls, safety and international labour standards and the newest products on the market.
The risks of getting products directly from overseas are many, and as many marketers have found out, can cost thousands of dollars in mistakes.
These potential pitfalls include:
• Sizing and quality inferiority
• Late deliveries
• Lack of duty, safety and custom requirements
• Payment in advance without delivery guarantees
• Human rights infringements |
