THE POWER OFPROMOTIONAL PRODUCTSPROMOTIONAL PRODUCTS
www gallantgifts com
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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
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SECTION ASECTION A
INDUSTRY INFORMATION AND STATISTICSINDUSTRY INFORMATION AND STATISTICS
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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.
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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
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Source: The PPAI 2006 Sales Volume Estimate
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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
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(2007 Top Buyers study)
SECTION BSECTION B
APPLICATIONS OFPROMOTIONAL PRODUCTSPROMOTIONAL PRODUCTS
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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%)
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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
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SECTION CSECTION C
RESEARCH STUDIES
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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
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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 )
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A 2006 Study by Louisiana State University and University of Texas at San Antonio
Group 7: TV-Print-Promotional (Experimental group)
Promotional ProductsPromotional ProductsPromotional ProductsPromotional ProductsA Key Ingredient to Integrated MarketingA Key Ingredient to Integrated Marketing
(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
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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.)
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%)
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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.)
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
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A 2006 Study by Louisiana State University and University of Texas at San Antonio
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
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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
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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
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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
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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%
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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
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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
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receiving the item.
I E d I flI E d I flImpact, Exposure and InfluenceImpact, Exposure and Influenceof Promotional Products of Promotional Products (contd.)(contd.)
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
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22% of participants kept the promotional product that they had received for at least six months.
I E d I flI E d I flImpact, Exposure and InfluenceImpact, Exposure and Influenceof Promotional Products of Promotional Products (contd.)(contd.)
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
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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)
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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
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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.
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A 1991 Study by Exhibit Surveys, Inc
Trade ShowsTrade ShowsBooth Visitation RatesBooth Visitation Rates
25%
15%
20%
11.6%10%
4.2%
0%
5%
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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
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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.
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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
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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.
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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.
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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
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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.
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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.
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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.
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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
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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
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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.
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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
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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.
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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
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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
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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
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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.
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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
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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.
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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
~ CREATING LASTING IMPRESSIONS ~www.gallantgifts.com 1-800-GALLANT (330-1343)
Trade Ad Ad Letter Ad Stress Ball Ad CalculatorIncentive
SECTION CSECTION C
CONCLUSION
~ CREATING LASTING IMPRESSIONS ~www.gallantgifts.com 1-800-GALLANT (330-1343)
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.
~ CREATING LASTING IMPRESSIONS ~www.gallantgifts.com 1-800-GALLANT (330-1343)
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
~ CREATING LASTING IMPRESSIONS ~www.gallantgifts.com 1-800-GALLANT (330-1343)
Orlando, Fl. 32811www.gallantgifts.com