Why Promotional Products Work

“Let’s get more customers. Let’s get better customers. Let’s spend less money to do so.”

This is the battle cry of any business owner, marketer or sales person. Whether you are Vice President of Sales for a Fortune 100 company, or a small business owner in Middle America, the goal is still the same. You want to drive more customers into your funnel. Then once you have them there…you want to keep them!

And of course if you are this VP of Sales or anyone else who is charged with marketing their company, you also understand that there are a LOT of ways to advertise and market your company (or product or service). Between radio, newspaper, magazines, television and the internet, each of these media is working to show you why their way is the best to reach your potential clients. And let’s face it…sometimes they might be right.

A mistake some business marketers make is to focus solely on these mass media advertising elements when marketing their company. Though they may utilize promotional products in some cases, these dollars are spent only after the “real” advertising is done. Though many savvy business marketers are really beginning to understand the power of the promotional product, many are still utilizing them like “trinkets and trash.”

Let’s face it. If you consider this promotional tool this way, those are the kind of results you will get.

In today’s marketing mix, well utilized promotional product campaigns can bring powerful, measurable results. But why do these imprinted items bring positive results? And more importantly to you, how can you utilize them to create real results in your marketing plan? That’s what we will show you in this book.

First let’s talk about why promotional products work. There are many reasons for the many different situations, but let’s focus on three simple reasons why they are effective.
1) Promotional Products are Targeted!
2) Promotional Products are Cost Effective Per Impression!
3) Humans Appreciate Receiving Valuable Prizes!

Let’s elaborate just a bit.

Promotional Products are Targeted – This is one of the oldest reasons to utilize Promotional Products…and still a viable one. Done correctly, you are giving your promotional product (whatever that product might be) directly to the customer or potential customer. You are reaching out into their office, kitchen, car or yard and greeting them with your “who, what, where” message! As one of my first teachers told me, you are taking your business card and putting it on their wall (or desk or pocket). Since you are reaching directly to the people you want reach, there is little or no waste.

That same teacher handed me a calendar and asked me, “What is the worst thing that can happen to this when you give it to a client?”

I looked over the calendar for a moment, turned and cavalierly through it in the waste basket. I waited for him to be upset, but he simply laughed and said, “Exactly!”

Smiling at the confused look on my face he explained, “You looked at the calendar—the advertising message—considered it, then discarded it. That’s the worst thing that can happen. But consider this, that is the BEST thing that can happen to nearly all other kinds of advertising! If someone listens or sees an ad long enough to consider it, that ad has succeeded. But with our advertising that is your worst case scenario! Most likely that calendar will be hanged and give you valuable advertising space on the customer’s wall all year.”

Which leads nicely into…

Promotional Products are Cost Effective – When considering many advertising venues you will hear terms like range, frequency, circulation to showcase the overall power or effectiveness of the medium. And although those can be impressive statistics, they are not always totally accurate. Just because 100,000 people CAN listen to a radio station doesn’t mean they ARE.

When measuring the effectiveness of a well-executed promotional product campaign, I like to consider the CPI or Cost Per Impression of an item. Measuring the CPI of an item gives you a stronger understanding about the power of an individual product. It also quantifies the value to you, the marketing professional, of that same product.

Let’s take a promotional watch for example. A decent watch for a customer might cost you $20 (less or more but let’s go with this for this example, you can do the math for other price ranges). Initially $20 might sound like a lot to reach this customer. But consider that the average person looks at their watch about twice per hour, 10 hours per day. Let’s also assume they wear this watch for the better part of year, or 300 days. That customer has now looked at your branding message 20 times per day for 300 days…or 6000 times! Now if you divide that $20 watch by the 6000 times your branding message was in front of your customer you realize the CPI on this watch was $.0033 per impression! Not a bad investment for your marketing dollar!

Of course you can easily think through the math on any promotional item. You don’t need to know any fancy statistics, common sense will do the trick. That’s why some of the classic staples of the promotional products industry are products that have lasting power. The more long term usefulness a product has, the more value it has to your brand!

Humans Appreciate Receiving Valuable Prizes – Though this sounds like sort of the “duh” moment of the book, it’s deeper than that too. It is true that many people like to receive things that are free. Unfortunately sometimes that leads us to think of the lowest common denominator of mooch out there that only comes to trade shows for the free stuff. Those folks are out there…but that is not what I am talking about.

Studies show that giving your customers (or potential customers) a promotional “gift,” you actually create a sense of obligation in that person to do business with you. That’s right. Studies prove that by giving that $5 item, your customer will actually feel like they owe you or your company the opportunity to do business. And those same studies show that this effect increases over time. So the more often you present that prospect with a promotional “gift” the more likely they are to give you an order. They subconsciously feel like they owe you!

And though that might not “exactly” be the intention, it is a wonderful added benefit.

I make it a habit. Each time I go to visit one of my customers; I make sure I bring “goodies.” As I tell them, I don’t want them to say, “Oh no, Kirby is coming.” I want them to be excited for my visit saying, “Oh, Kirby is coming! I wonder what he will bring me!” I am NOT above gift giving to gain business. I will trade a $5 promotional item for $1000 worth of business every day!

So remember…promotional products work for three simple reasons. They are a very targeted form of advertising, they are cost effective and people love free stuff!
If you want to get more customers, get better customers and spend less money doing it, then a well-though out promotional product strategy had better be a part of your marketing mix!

A New Book Project

I have decided that it is time to jump into another book writing adventure...and I have decided to begin this process here on the HMC blog. I want to write book on how best to market utilizing the medium we know as promotional products. I will focus on product areas and themes within the industry, but hopefully focus on how this can best help the business marketer.

But I would love your help!

I am going to post this content, in it's rough form, here on the HMC blog. I would love to get your feedback on the content AND get examples of ways what I say works (or has not worked) for you. I would love to have some real world examples and case studies for readers to enjoy. I know I learn best when I have a "real life" story to pull from.

So please be on the lookout for more consistent content here on the HMC blog. And PLEASE get ready to participate. I hope when I am through I will have a book that we can all be proud of!

Consumer Sentiment Rises In December

From Counselor Magazine...Analysts are now forecasting the best holiday shopping season in four years as confidence, spending and expectations among consumers are all continuing to trend higher, according to a pair of new surveys. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment in December has risen to 74.2, reaching its highest point since June. Meanwhile, separate findings from a CNBC survey show 60% of Americans plan to spend more for holiday gifts this year, a 10% improvement compared to 2009.

With consumers' optimism increasing, the National Retail Federation is now predicting that November-to-December sales will rise by 2.3% this year, compared to 2009. The International Council of Shopping Centers recently said it expects December sales to improve as much as 3.5%.

"I would generally say that the core customer is absolutely back shopping," said Neiman Marcus CEO Karen Katz.

Believing the economy is strengthening, consumers are more likely to buy big-ticket items this year, data also shows. For example, one in six Americans expects to give or receive an Apple product, like an iPad or an iPhone. Only matched by Wal-Mart, electronics retailer Best Buy is now a top choice for purchases, with 48% of Americans saying they will spend money at a big box store this holiday season. Internet sales have reached watershed marks this year as well, with roughly 25% of consumers in the U.S. saying that shopping on the Internet is one of their top two choices for spending, the largest percentage ever.

Looking beyond December, data from the surveys shows 37% of Americans expect the economy will improve in 2011, while just 20% believe it will get worse. Optimism about wages is increasing, too, with workers expecting earnings gains of 2.1% in 2011, up from 1.3% a year ago. For the first time since 2007, the majority of Americans feel the value of their homes will rise in the next year as well.

HMC Incentives for 2011

Hasseman Marketing & Communications is excited to announce its sales incentive plan for 2011. HMC Account Executives have the opportunity to win an all expense paid trip to Jamaica for their sales efforts next year! It's going to be a great trip. Want more information? Keep reading!

Hasseman Marketing & Communications is looking to add dynamic, goal driven people to our sales team. Responsibilities include business prospecting, meeting with businesses to help create targeted marketing campaigns with promotional products, and servicing the client after the sale.

The position is straight commission and has UNLIMITED income potential! No promotional products sales experience is required. We will train the right person (or persons) in the industry. Veterans of the promotional products industry are welcome as well!

And now we have a fantastic incentive trip to add to your motivation! Any Account Executive that reaches $150,000 in sales with HMC in 2011 will win! If you are interested...now is a great time to join us!
We are only looking for the best. If you are interested in creating a business of your own and a career for your life, contact us today. (We currently have sales coverage in Coshocton, Muskingum, Licking, Tuscarawas, Holmes counties and are looking for Account Exectutives OUTSIDE of those areas).

If you are interested please email Kirby at kirby@hassemanmarketing.com

Consumer Confidence Hits Five-Month High

Consumer confidence in November reached its highest point since June, easily beating analysts' forecasts and further lifting the hopes of retailers at the start of the holiday shopping season. The monthly index provided by the Conference Board showed consumer confidence climbed to a 54.1 rating last month, up from 49.9 in October.

"Expectations, the main driver of this month’s increase in confidence, are now at the highest level since May," said Lynn Franco, director of the Conference Board's research center. "Hopefully, the improvement in consumers’ moods will continue in the months ahead."

Along with an improvement in overall confidence, the Conference Board reports consumers are also slightly more upbeat about future job prospects. Those expecting fewer jobs in the months ahead declined to 19% from 22% in November, while 16% now believe there will soon be more employment opportunities. This optimism could be a precursor to actual growth, as a separate report last week showed 93,000 private sector jobs were added in November, the majority of them (54%) tied to small businesses. In the last nine months, small businesses have hired back 200,000 workers.

On the holiday shopping front, several major retailers, including JC Penney, Macy's and Abercrombie reported significant year-over-year November sales increases. On Black Friday weekend alone, shoppers spent $45 billion, focusing less on discounters and more on department stores and apparel shops.

Overall, the economy expanded at a 2.5% pace in the third quarter, more than first thought, according to a new U.S. Commerce Department report. Consumer spending rose at its highest rate in almost four years, while salary gains have been revised upward for the past two quarters.

Study Illustrates the Power of Promotional Products

TREVOSE, PA - November 8, 2010 - The Advertising Specialty Institute today released a landmark study that proves advertising specialties beat out prime-time TV, radio and print advertising as the most cost-effective advertising medium available.
The most significant findings of the 2010 Global Advertising Specialties Impressions Study show advertising specialties are less expensive per impression than most other media* and are very affordable and effective when compared to other forms of media.


To complete its research, ASI conducted a total of 3,332 online and in-person surveys, including interviews with businesspeople in New York, Chicago, Los Angeles, Philadelphia, London, Sydney, Toronto and Montreal metro areas.
The 2.0 study, a follow-up to the definitive 2008 survey, includes new demographic information on politics, ethnicity, gender and age, since knowing the likely recipient of products is paramount for an advertiser. This year, the comprehensive report also adds global markets and includes more products, such as automotive accessories and food.
The study was released at the fourth annual ASI Power Summit in Aventura, Florida. Among key findings, results show:
• Cost per Impression. In the U.S., the cost per impression of a promotional product stayed virtually the same from 2008 to 2010, at .005 cents.
• Product Usage. Bags have the highest number of impressions in a month, over 1,000, and over one-third (36%) of those with incomes under $50,000 own bags.
• Gender Preferences. Males are more likely than females to own shirts and caps, while females are more likely to have bags, writing instruments, calendars and health and safety products.
• Ethnic Preferences. African Americans have more promotional products on average (11.3) than any other group.
• Positive Reinforcement. Seventy-five percent of independent voters prefer consumer-branded products; nearly 1.5 times more than Democrats or Republicans.
• Identifying the Advertiser. Eighty-three percent in the U.S. say they can identify the advertiser on a promotional item they own.
• Influencing User Opinions. Forty-one percent of U.S. respondents say their opinion of the advertiser is more favorable after receiving a promotional product.
• Global Reach. Nearly two-thirds (63%) of respondents from Great Britain have received and kept a pen in the last 12 months. In the U.S., writing instruments are used the most often, an average of 18.2 times per month.
• Popular Products. The most commonly owned promotional products among U.S. respondents are writing instruments (46%), followed by shirts (38%) and calendars (24%).
• Promo Product Capital. Los Angeles has the highest average number of items owned, at 12.7.

Small Businesses Forcast Growth

New data released by payroll firm ADP shows 52% of small businesses expect to grow over the coming 12 months, with 35% believing their volumes will at least stay the same. The results demonstrate an increase in optimism among business owners who now closely link operational efficiency with improved sales. "In today's economy, small business owners are watching cash flow more closely than ever," said Regina Lee, president of ADP's small business services. "That reality, combined with ever-growing time pressures, means small business owners are looking to spend more time growing their businesses and less time on the administrative burdens of running them."

The ADP survey also shows the lifestyle of many small business owners is changing, with 90% of respondents saying they spend some time working outside of the office during the week. Further, about 30% of respondents said they're spending a larger amount of time working away from the office, on average about nine hours every week.
Complementing their busy lifestyles, small business owners are using more Smartphones to increase the efficiency of their operations, according to ADP data. Six out of 10 executives surveyed own a Smartphone, with 80% of respondents using them for business. Mobile devices are primarily used by business owners to help with customer relations (77%) and time management (53%), according to ADP. "Companies serving the small business sector need to adapt with them, leveraging new technologies like Smartphones and faster networks to bring trusted resources to clients wherever they choose to work," said Lee.