Business Tips
How To Kill Your Business in Then easy Steps
1. Don’t Advertise. Just pretend everybody knows what you have to offer.
2. Don’t Advertise. Tell yourself you don’t have the time to spend thinking about promoting your business.
3. Don’t Advertise. Just assume everybody knows what you sell.
4. Don’t Advertise. Convince yourself that you’ve been in business so long customers will automatically come to you.
5. Don’t Advertise. Forget that there are new potential customers who would do business with you if they were urged to do so.
6. Don’t Advertise. Forget that you have competition trying to attract your customers away from you.
7. Don’t Advertise. Tell yourself it costs too much to advertise and that you don’t get enough out of it.
8. Don’t Advertise. Overlook the fact that advertising is an investment in selling—not an expense.
9. Don’t Advertise. Be sure not to provide an adequate advertising budget for business.
10. Don’t Advertise. Forget that you have to keep reminding your established customers that you appreciate their business.
Why T-Shirts & Pens Can Out-Do TV & Internet
Research on the $16.9 Billion Promo Products Industry
By Research Analyst Hope Hopkins
76.1% of consumers studied said they could remember the brand name of a company that gave them a promotional item in the past year -- versus 53% who could remember a TV or print ad from the past month, and only 27% recalled an online ad.
Promotional products -- from logo t-shirts to brand-stamped rose petals -- really work. And there's plenty of research data to prove it.
Which explains why in a search-marketing-mad world the promo products industry is quietly raking in nearly three times more ad dollars. More data and tips:
They’re on your desk, on backs at the gym, on nightstands and breakfast tables, and each time a free promotional product is put to use it’s causing an impression.
Promo products from logo-ed mugs to baseball hats are the advertisement that keeps on messaging … in some cases for years.
Consider this recall rate data:
Banner ads 27%
Print & TV ads 53.5%
Promo products 76.1%
So, although the average promo product -- basically anything you give away with your logo on it -- often costs more per unit than any other ad unit CPM, the extra impressions and branding warm-fuzzies make promo products more cost effective than you may think.
That's why at $16.9 billion spent per year, US marketers are investing almost three times as much in promotional products than they are in much-hyped search marketing.
Research data round-up: The numbers behind promo products
Whether the goal is to increase consumer loyalty, warm up business prospects, or encourage your biggest brand fans' evangelism, a promotional product campaign can work harder for you than almost any other type of messaging.
Here's the data organized by campaign goal for you:
Long-lasting/repeat exposure
73% of those who used the promotional product that they had received stated that they used it at least once a week
45.2% used it at least once a day
Source: L.J Market Research, DFW Airport Study, 2004
An increase of company image
52.1% of participants reported having a more favorable impression of the advertiser since receiving the item.
Source: L.J Market Research, DFW Airport Study, 2004
76.3% of attendees had a favorable attitude toward the company that gave them the product.
Source: Georgia Southern University, 2003
Generation of business
52% of participants in the study did business with the advertiser after receiving the promotional product.
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 item.
Source: L.J Market Research, DFW Airport Study, 2004
Increase in referrals
Accompanying a request for referrals, an offer of a promotional product incentive or an offer of a promotional product incentive and eligibility in a sweepstakes drew as many as 500% more referrals than an appeal letter alone.
Source: Louisiana State University and Glenrich Business Study, 2005
Customers who received a promotional product were 14% more likely to provide leads than those who did not.
Source: Baylor University, Mary Kay Study 1993
Salespeople who handed out promo items received 22% more referrals than those who did not give out free gifts.
Source: Baylor University, Mary Kay Study 1993
Higher recall
76.1% of participants could recall the name of the advertiser on the promotional product that they received in the past 12 months. In comparison only 53.5% of participants could recall the name of an advertiser they had seen in a magazine or newspaper in the previous week
Source: L.J. Market Research, DFW Airport study 2004
Recall at Tradeshows
71.6% of attendees who received a promotional product remembered the name of the company that gave them the product
Source: Georgia Southern University Study, 2003
Greater Reach
71% of business travelers randomly surveyed at DFW Airport reported receiving a promotional product in the last 12 months
33.7% of this group had the item on their person - a coveted location for ad messages
0 55% of participants generally kept their promotional products for more than a year.
22% of participants kept the promotional product that they had received for at least six months.
Source: L.J Market Research, DFW Airport Study, 2004
MAGNETS, A PROMOTION WITH REAL STAYING POWER
BY KAREN BUTLER
Recently, my parents spent a small fortune renovating their kitchen. No expense was spared as stylish cabinets, countertops and flooring found a new home — gorgeous stainless-steel appliances rounding out the makeover. There was only one drawback ... the new fridge had lost its magnetic superpowers, thereby rendering it useless as a holder of the family calendar, photos, beloved drawings by grandchildren, and treasured magnetic memorabilia. If mom had known this was going to be the case, I believe she would have sacrificed beauty for function, or at least searched for a stainless-steel appliance that was also magnetic. For the record, they do exist.
Magnets are an important component of applications such as motors, generators, recording, data storage, credit cards and even the average car (which has more than 20 magnetic systems in place, including the cruise control, fuel pump motor and windshield washer pump). Besides these “hidden” magnetic systems, the visible power of magnets on everything from refrigerators to office filing cabinets cannot be overemphasized. Offer a consumer a magnet with the right information and appeal, and you’ve found a place in the family’s home or office for good. Talk about return on an advertising investment.
One of the biggest drawbacks to magnets is inferior product that has made a negative impression on potential buyers. “Molenaar has always specialized in 35mil and 55mil magnets because ownership believes in selling real functional note holders,” explains Kevin Gilbertson, MAS, office manager for Willmar, Minn.-based The M-i Line. “Anything less really doesn’t do the job.”
Richard Ouellette, president of Zoogee World Inc. in Calais, Maine, agrees. “Poor magnetic products with poor printing and no packaging are available everywhere, but we do not offer these products. I guess the secret is in which supplier you work with.”
Another secret is to choose a multifunction magnetic product to increase usability — and visibility. “Magnets may sound chintzy, but they have a lot of face power,” maintains Brian Padian, director of inside sales for Logomark Inc. The Tustin, Calif.-based supplier’s magnetic Beverage Buddy features a bottle opener, soda can opener and pen, making it a strong candidate for repeated use — and coveted refrigerator placement.
Zoogee World offers an interesting twist to two old standbys — the magnet and the lapel pin. Rather than poking a hole in the garment, Magic Magnet stays in place because of two strong magnets that attract to each other through the apparel. Designs such as the American flag or a cause awareness ribbon are likely to receive twice the exposure, as they can easily be displayed on a magnetic surface or worn by individuals.
Stick with It
Thanks to a relatively low price point and increasing demand, most manufacturers have continued expanding their magnetic offerings. Debora Racho, who does graphic design for Universal Promotions Inc. in Rogers, Minn., says her company has had great success with a 4x4 promotional magnet, particularly in the medical industry. The product features an ideal space for diabetes information, CPR guidelines or proper lifting procedures.
“Distributors can utilize our health observances calendar — diabetes awareness month, breast cancer awareness month (breast self-exam magnet) — to market to other companies from insurance to car dealerships,” she explains.
Racho also has some important advice for magnet customers, including:
Keep imprints simple for pre-designed magnets with a fixed imprint area. If you have more imprint information than will fit on a predesigned magnet, choose to custom design your own with no limits.
Remember, most magnets are not suitable for outside use.
Avoid a font size smaller than 7 point or 8 point.
Be careful not to clash colors.
Make sure customers know not to use magnets on computers.
Toronto’s Artmetal Promotional Products has been riding the wave of magnet popularity for years, and Vice President of Operations and Marketing, Harris Krofchick, contends, “There is no sign of a decrease in growth in the next fiscal year.”
One of the company’s recent creations is a magnet with a scratch-off area — which, if it reveals a winning message, can be torn off to redeem a prize. The end user is likely to handle and view the magnet since it involves a contest. Other promotions that draw attention include mailers, which Krofchick says magnets are perfect for, thanks to their light weight and four-color process capabilities. “An alarm company used magnets designed to look exactly like an alarm code panel with their name in the digital display,” he says. “This magnet was used as a mailer and 85 percent of their current clients visited after the campaign had the magnet on their fridge or filing cabinet. What was more surprising was that even potential clients, who were not using their services, had the magnet up.”
Krofchick distributors should put some brainpower into these types of promotions. “Magnets start as a blank canvas. It is up to distributors to work with their clients — along with their suppliers — to create a promotion that will have the most effective R.O.O., return on objective. A simple one-color magnet may not be the right fit for a Ferrari dealership. They will probably want to have artwork that will represent the quality of the cars they sell.”
In closing, he reminds distributors that “A magnet can be so much more than a business card. Try selling a calendar magnet, it will be a fraction of the cost of a traditional 12-month calendar and your client will not have to contend with competing for wall space.”
Increase sales by getting in your customer's face.
They'll love you for it.
By Valleri Sauro
There is only one kind of advertising that lets you get in your customer's face, week in, week out, for months or even years and leaves them loving you and remembering your name: promotional advertising products. Customers who receive promotional advertising products love them, use them and keep them for a long time.
Unlike other forms of advertising which leave people lukewarm or downright cold, promotional advertising products give people a warm, fuzzy feeling and cause the customer to be grateful to the business owner giving the gift. Then, the customer takes the gift home and uses it and remembers you for a long time because your name is right there in front of them every day. If you do your homework and choose a gift which reflects what your business does, there's an added bonus because the type of product is linked to the product or service you provide, so that when the customer needs the kind of product or service your business offers, they think of you first.
So, if your business sells coffee, obviously, you would give away coffee mugs with your name on them. If you repair cars, you can give away tins shaped like cars with candy in them. If you sell pet supplies, you can give away Frisbees for people to throw for their dogs.
Studies have shown that promotional advertising products make customers:
- 39% more likely to remember you
- 50% more likely to respond to your direct mailings
- 14% more likely to provide additional business referrals
- 18% quicker at re-ordering
Promotional products are also one of the most cost effective ways of advertising your business. On the surface, they may seem more costly. The effectiveness of advertising is measured in CPM (Cost per Thousand). Print advertising CPM figures are based on one-time exposure by however many viewers (circulation figures are used, for example), the medium is able to provide. While few businesses are likely to advertise on television, the following shows clearly how CPM is calculated.
The average television network program achieves about an 11.0 rating, which means it reaches eleven percent of the 94,000,00 homes in America with television sets, or approximately 10,300,000 homes. If an advertiser were to buy ten commercials each with a rating of 11.0 on a network (ABC, for example), then it would make 10 times 10,300,000, or 103,000,000, Gross Impressions.
If ABC charged an average of $150,000 per 30-second commercial (the typical television commercial length), the total cost of a ten-commercial schedule would be $1,500,000. The CPM of the schedule would be:
CPM =$1,500,000
103,000 (103,000,000 Gross Impressions / 1,000)
CPM = $14.56 (the cost of making 1,000 impressions)
The same approach would work for print media. Let's say the ad costs $50.00. The circulation of the publication is 10,000.00. And, it comes out three times week.
CMP = 10,000 * 3 = 30000 / 1000 = 30 (30,000 gross impressions / 1000)
CMP = 50 * 3 / 30 = $.011 (the cost of making 1,000 impressions)
That seems relatively inexpensive on first glance. On the other hand, since a reader generally has to see an ad seven to nine times before they remember your name, perhaps it's not quite such a bargain.
But think about a wall clock advertising a soft drink in a restaurant. If the clock costs $10 and lasts only three years, its daily cost is less than a penny. Even if the restaurant serves only 100 people a day, its CPM would be under a dime. If the wall clock lasts 6 years, its CPM would be $.05. Plus, the customers would be looking at the message week in and week out, passively memorizing the name of the soft drink company. When you think about a ll the kinds of products Coke and Pepsi put their names on and how much pop they sell world wide, it makes sense.
Pepsi is good but Coke is the master. Coke now has an online store selling all kinds of products with their name on them because Coke items are collectibles. And it's well known, that anywhere you go in the world, you can pretty much put out your hand and find a coke. Coke has always been big on putting their name on things. There is even an urban legend that credits Coke with inventing Santa Claus with an advertising campaign back in the 1930's. While the story isn't true, the Santa from this Coke ad is one of the most recognizable images of Santa in the minds of the public. It also serves the purpose of forever linking the drinking of Coke and Christmas in the minds of people, particularly children, an extremely important target demographic.
Here's an example of how promotional products pay for themselves. A carwash owner makes an initial investment of $1.30 for pens that he passes out to a customer. The customer spends $1.50 to wash his car. But because no other carwash owner was giving people a free pen and because the customer was satisfied with the experience, he returned on five other occasions in the next three months spending a total of $10.50. This means the owner had a return on his investment of $9.20. If he has a thousand customers like that over three months, his return would be $9200.00. Also, these customers will be using the pens for some time to come and will be reminded over and over again about this company. Some of them may be customers for years.
Promotional products are effective marketing tools which create a positive impression for your company and its sales representatives. A study conducted at Baylor University, indicated that customers who receive a promotional product with a marketing letter will review you and your staff 52% more favourably than customers who receive materials with no product.
Further, the study indicated that customers who received a promotional product with their letter thought the company's representatives were 16% to 34% more competent than those of the company who did not include a gift item.
Studies have shown that promotional products have a proven ability to boost sales.These studies were done for the Promotional Products Association International, a non-profit organization for the promotional products industry.
Here of some of the findings of these studies:
- Schreiber & Associates of Peoria, IL, found that 39 percent of people receiving promotional products could recall the name of the advertiser as long as six months after they received it.
- Nearly three quarters-72 percent- of business travelers surveyed in a poll at Chicago's O'Hare and Dallas/Fort Worth International airports had in their possession at least one promotional product. Remarkably, 73 percent of those carrying a promotional product could recall the name of the advertiser's name or message prior to showing the item to the pollster. And, 61 percent carried on their trip two or more imprinted items such as key tags, pens, calculators, notepads, pocket mirrors, or a wearable such as a sweater, jacket or shirt.
- Southern Methodist University in Dallas found that selective distribution of promotional products out-pulled newspaper advertising by two-to-one.
- Baylor University in Waco, Texas, found that retailers that use promotional products as part of sales contests out-perform sales contests without incentives by up to 50 percent.
- Additionally Baylor found that promotional products boost direct mail response rates by up to 75 percent.
- Another study by SMU found that customers receiving promotional products reorder up to 18 percent sooner than those who received coupons and 13 percent faster than those without any incentive.
Here are the top ranked promotional products
as reported by large promotional products distributors (based on sales):
1. Wearables - 29.5%
2. Writing instruments - 9.4%
3. Desk/Office/Business Accessories - 6.6%
4. Calendars - 6.4%
5. Bags - 6.1%
However, the fact that an item is popular doesn't necessarily mean it's the best product for your business. If you sell computers, will baseball hats with your name on them, really do the trick?
The most effective use of promotional products is among those companies that can identify and reach their predetermined target audience. The process for selecting promotional products is more of an art than a science. A promotional products distributor can ease the process of choosing among tens of thousands of items. The selection criteria varies greatly from situation to situation.
By targeting advertising product to your specific demographic, you show that you understand your business and the needs of your customers. You are also saying that you really appreciate their patronage. If your service lives up to their expectations, you can expect to enjoy repeat business for many years to come.
A national survey by the Promotional Products Association International sheds some light on how recipients generally perceive receiving promotional products.
Recipients report they look for the following characteristics in receiving a specialty:
- Usefullness - 98.3%
- Quality - 71.8%
- Attractiveness-61.5%
- Tastefulness - 59.8%
- Convenience - 45.4%
- Uniqueness-43.7%
- Longevity- 28.2%
Although recipients think favorably of a company of brand that gives them specialities, they tend to be impressed most if the item is presented in person. For certain products, apparently higher priced ones, people are more likely to keep or use the items if the imprint is subtle or unimposing. With other promotional items, the conspicuousness of the imprint has no influence on whether or not the items are kept or used.
If a company or brand distributes promotional items but its competitors do not, recipients tend to think more highly of that company or brand. However, recipients tend to think less favourably of a company or brand that used to distribute promotional items but discontinued doing so.
Overall, people have a positive image of promotional products as long as they are useful and are perceived to be of good quality.
Following are a few examples of companies who were creative and cost effective in the use of promotional products. In all of these cases, the items utilized were inexpensive and were something that would remain in front of the customer or potential customer for a long time.
1. A retirement community, with a limited budget, calls itself, "The home with a heart". To keep its name in the mind of potential residents, who inquire or visit, they present them with a heart-shaped magnet bearing its name, logo, slogan and phone number. Small and inexpensive, yet something likely to be used and seen frequently.
2. A company which holds annual picnics for its employees gave Frisbees to employee children to be used as a paper plate holder.
3. Send thank you cards after an order is delivered and include a magnet with the company logo and phone number. This magnet will be around longer than the thank you card!
4. A company soliciting new business sent a direct mail piece along with an imprinted ruler. The ruler was imprinted with the company logo and name as well as a tag line "Measure our success".
5. A company distributed ballpoint/highlighter combo pens imprinted with the message, "Safety Pays" to its factory workers to sign off their production time and to highlight important order information. the pens eliminated the need to carry two separate writing instruments. A nice way to develop good employee relations in a simple and safe promotion.
6. A newspaper sent a pink or blue baby t-shirt, gift-wrapped in newspaper to new parents. the promotion was to solicit new business, targeting a particular population segment.
All in all, promotional products make sense if you want everybody to know your name. These could be the most important advertising dollars you spend and if each gift you give, gets or keeps a customer, you will see your sales grow year after year. So, start today and get in your customer's face.
How to pick the best promo product for your campaign
5 Considerations
Biggest mistake: when you're selecting a promo product to offer your marketplace, don't assume the most unusual or most costly item will work the best. Here's what will work:
1. Your target demographic
Just because you think something is ultra-neat or beyond-dull doesn't mean they do. (Example, IT professionals surveyed in March 2005 said they yearned for iPods, although most tech marketers were bored of offering them.) Consider what they are likely to throw away, what they'll keep, what they'll give to the kids, and what will make them run around the office showing absolutely everyone.
2. Value
Promo products can have one of three values (not necessarily tied to the price you pay for them); either they are:
a. extremely useful so the prospect will keep them close and refresh the impression frequently; (think mugs, t-shirt, pens, oversized chip bag clips)
b. lavishly valuable so the prospect will be impressed by the value you place in your relationship with them; (think consumer electronics, leather-bound books, etc.)
c. unique and cool so your prospect will start a viral "look what I got" campaign on your behalf with their friends and colleagues (think roses with logo-embossed petals, light-up ice cubes, etc.)
3. Your brand
Think over your brand and campaign to see if there is a tie-in you can make. The more you can relate the item to the rest of your messaging, the more powerful the campaign as a whole becomes.
4. Logos
Many brands' logos, in particular in B-to-B, were not designed with promotional items in mind. Will the logo be big enough within the limited print-space to stand out at a reasonable distance? (Example: MarketingSherpa is too long to fit well on items such as mugs.) Also, do you have logo colors restrictions you must obey? And don't forget your URL or toll-free phone number along with (or in place of) your tagline.
5. Distribution
How heavy is the item? What type of shipping will work and has it been tested? (Some pens have been rejected by the post office because they broke through envelopes when mail sorting equipment bent them.) Plus, can you brand the shipping carrier and also is it possible to insert additional materials such as a note? What are the additional costs associated with this?
Also, if you are planning to mail the item to prospects and consumers, how do you intend to make sure that only "qualified" prospects get it? Do you need to clean your database beforehand, or add rules, regs and deadlines onto on online form?