How Big Is The Promotional Products Industry? What Is PPAI ...
Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional...
Transcript of Promotional Products Industry Overview Part 2 › Sessions › handouts › Promotional...
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Presented by:Joseph G. Scott, MAS
VP – Scott & Associates, Inc.
Promotional ProductsIndustry Overview – Part 2
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The Four Types ofDistributor Salespeople
• Order Takers• Wait for the Phone/e‐mail
• Order Getters• Hey, wanna buy some pens?
• Order Makers• What about those trade shows? Let’s get things on
order in advance.• Promotional Consultant
• I noticed on your web site that you plan to exhibit at 23 trade shows next year. What are your desired outcomes? What is your Life Time Value of a client? What is the ROI of your advertising…*
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Category Percentage
Wearables 30.62%
Writing Instruments 8.99%
Drinkware 7.63%
Bags 7.45%
Computer Products 5.94%
Desk/Office/Business 4.15%
Recognition Awards 3.76%
Calendars 3.73%
Electronic Devices 3.18%
Textiles 2.47%
Top Ten – 77.92%
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SpecializedPromotional Programs
• Employee Service• Safety• Sales• Process Improvement• Six Sigma• Distributor• Purchase Incentive
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People Who Can Help You
• Multi‐Line Rep• A salesperson who calls on promotional consultants on behalf of a number of suppliersSupplier Rep
• Works for a single supplier and helps them sell their products in a defined territory
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Roles In The Supply Chain
• Supplier• Manufacture/Import products and do/do not decorate
• Promotional Consultant• Sells promotional products to Customer
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How Promotional ProductsWent To Market – Back in “The Day”
Off‐Shore Manufacturer
US‐Based Supplier
Promotional Consultant
Customer
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How Promotional ProductsGo To Market – Today
Off‐Shore Manufacturer
US‐Based Supplier
Promotional Consultant
CustomerConsidered by the Federal Government to be “The Manufacturer” for Product Safety Laws
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Supplier Order Components• Don’t Assume Anything, especially w/reorders
• Quantity (if it’s large, write it in words)• Product Number• Description• Price• Setup Charges• Logo file in proper format• Logo location, PMS colors, if applicable• Delivery Address• Delivery/Event Dat3• Your Contact information (phone, email, fax)
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Changes in Promotional ProductMedia and Imprinting Methods
• Substrates• Textiles – Bamboo, Technical Fabrics• Recycled Plastics
• Imprinting Methods• Laser on Fleece, Appliqué• Four‐color process printing• Variable Data
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Trend: Develop Promotional Product Solutions
• It’s not about “just selling stuff” anymore• Promotional Products are an Advertising Medium – Sell them accordingly
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Marketing Our Media vs. Others• Ours is a $20.04 Billion industry• Advertisers bought more of our media in 2014 than:
– Radio: $18.46 Billion – Newspaper: $16.4 Billion– Outdoor Advertising: $7.0 Billion
• We can engage all five senses:– Touch – Weight or Texture– Sight– Sound – Sound Chip– Smell – Scented Products– Taste – Gimme Some Chocolate
• We Are Not An Interruption! We are Welcomed!
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Move From Selling Stuff,To Promotional Products Solutions
• Sell Stuff• Purchasing Department = Price
• Sell Solutions• Decision Makers = Margin
• Integrated Marketing Plan• Shows how your client will meet their objectives. A schedule showing all marketing activities, I.e. Promotions, Programs, Trade Shows, Print, Radio, TV, Events, Outdoor, Indoor, Mobile Marketing, Online Ads, Social Media
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Developing Promotional Products Solutions
• Selling Promotional Products ‐ How many competitors are there?– In MSP there are hundreds
• Promotional Products Solutions – In MSP there are only dozens– Few of them call on $1MM ‐ $10MM businesses
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Expanding Your Comfort Zone
• Expand your offerings– You don’t have to do them yourself– Find a small marketing firm in your area– Get acquainted– Tap into their network– Sell their work, mark it up, bill the client– Get promotional product leads from them
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Develop a Marketing Plan
• Quantify Client Objectives• Quantify the Client’s Financial Benefit – LTV of Client• Get Agreement on ROI Expectations• Objectives + LTV + ROI = Client’s Investment• Discuss Meeting/Exceeding/Falling Short• Determine Message & Call‐To‐Action• Determine Media That Will Deliver the Message• How/When Will the Results Be Measured?• Is There A Mechanism to Process the Leads?
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Different Ways to MarketPromotional Products
• Market Yourself First!• Get to Meet as Many People as Possible • <10 Words: What do you do for a living?• Ask for Referrals• “Lumpy Mail” Using Promotional Products• Self‐Promotion Pieces (hand ‘em out)• Speak to End‐Buyer Groups• Volunteer First – The Business will Arrive Later• Mobile Marketing + Promotional Products
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Strategic Marketing
• What are the client’s objectives?• Who makes up the Target Market?• Where has the client been positioned by the market?• Target Market research, data collection & analysis• Competitive analysis (show their competitor’s ads)• Create marketing/advertising mix• ROI• ‘piggy‐backing’, follow‐up, “round two”• The role of Promotional Products
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OAR / MTV
• Objectives/Outcomes– What do you want to have happen? Dollars, Patients, Clients
• Analysis– What does the Objective mean to your bottom line?
• Return On Investment– What kind of ROI do you want?
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OAR / MTV
• Message– Why should anyone care your business exists?
• Target– Who should get the Message?
• Vehicle– How will the Message get to the Target?
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Offer Inbound Marketing Services
• Sign‐up for an Inbound Marketing Service• Start with email marketing
– Import their list into the email service– Use a template and craft their message w/links– Send email
• Clicks connect with the client’s web traffic• Automatically send relevant content based upon the prospect’s interest
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Offer Inbound Marketing Services
Recipient clicks on Construction Law and receives the Construction Law Newsletter
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Product Safety: Our Responsibility
• California Proposition 65 (Prop. 65)• Consumer Product Safety Commission• Lead Standards for Children’s Products• Container Security• Supply Chain Management• Polycarbonate?• www.ppa.org Click on PPAI Prod Safety Logo
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Social Media’s Role and the Affect onSuppliers & Promotional Consultants
• Helps both to engage (prospective) clients• Engaging content will be shared
• Inform, don’t sell• (prospective) clients can easily reach you• “Customer Service in Public”• Collect Reviews• Advertise
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Current Industry Issues
• Product Safety (California’s Prop 65)• Requires the State to publish a list of chemicals known to
cause cancer or birth defects or other reproductive harm• Products shipped to/used‐in California must disclosure if
the product/imprint contains any Prop 65‐listed chemicals
• Safety Recalls• Make sure your products are safe, per CPSA
• Pharmaceutical Legislation• Limiting the influence of gifts from Pharma to physicians
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Product Safety
• Become “Product Safety Aware” via PPAI• Take the necessary, free courses in PPAI’s on‐demand
library • CAS Required Product Safety Basics (60‐90 minutes)• Undue Influence Training (60 minutes)• Prop 65 and State Regulation (60 minutes)• Select one additional course
• A really good idea – you can use this knowledge to more effectively differentiate you from your competition