Promotional products - strategies and effects

"Suvenirka", №8 from July 2006

Gifts and promotional products are extremely common in the world of marketing. Whenever a company presents someone with a gifts or promotional giveaway, it communicates something special. Even so, many companies fail to see promotional products in strategic terms. So the Swedish corporation “New Wave Group AB ”, that is the one of leaders in the market of corporate, promo, work wear and giveaways, presented the book “Promotional Products strategies and effects”. The authors hope this book will demonstrate the true strategic significance of promotional products, and how they can best be deployed. This book is addressed to anyone connected with the industry, from end-customers, distributors, suppliers and advertising agencies to students of marketing and their lecturers. Some examples are based on Swedish perspective. This is deliberated: the Scandinavian promotional market is the most developed in Europe . The authors therefore believe these examples may well provide some useful guidelines in other markets too.

The promotional products industry

The promotional products industry defies easy definition. Present Service Institute GmbH defines promotional products as products used promotional purposes, given freely to specific target groups, with no reciprocal expectation.

Today, promotional products is a well-established industry, even though  knowledge of this medium is often limited. Compared with many other media, however, research in promotional products field is still relatively rare. At the same time, most of us have an opinion when it comes to giving and receiving presents. This is equally true of companies and organizations, which is why it is important to understand the strategic use of promotional products.

The promotional products as marketing communications

The use of promotional products in marketing communications is very common. The word “present” is not only synonymous with the word “gift”: it also means “near at hand” or “available”, which is precisely what a promotional products is about. Many of us have a pen, T-shirt, key ring, reflector, lighter, calendar, bag or umbrella displaying a company logo or slogan. Every time we use one of these products, we’re reminded of the brand or slogan. Promotional articles can be given to customers, employees, suppliers and others in the company.

To get the most out of a promotional product, it should be seen as an integral part of marketing strategy. It can be used as a form of advertising, as well as in direct mailing, personal selling, sales promotion and public relations. We mustn’t forget that the function of a promotional product is the same as any other media – to convey a message.

In 2001 New Wave Group R&D ordered to IMA (a Swedish marketing survey firm) to make marketing research named “Promotional products as a marketing tool”. The aim of this survey was to measure the impact of a theme communicated solely by promo wear. A theme was printed – front and back – on a number of sweatshirts in two different colours, bright yellow and beige. The theme chosen was fictitious and neutral – a simple abbreviation: “NWG”. The printed letters were 12 centimetres high. The site chosen for the survey was a street (some 15 metres wide and 60 metres long) in Ostra Nordstan shopping centre, in Gothenburg, Sweden. At the time of the survey, pedestrian flow averaged 123 people (walking at a relatively even pace) at any given time. The average time taken to walk the full length of the street was 90 seconds. A total of 1382 people were interviewed. The sample basically included every adult pedestrian at the survey site.

In the first phase, pedestrians were interviewed before anyone wearing the “NWG” sweatshirts had started circulation on the street. This was to check the ‘lie factor’ (people who claimed they had noticed the marketing theme, even before it was visible). On this occasion, no one said they had seen the group of letters, making the lie factor zero. This indicates that the other data should be fairly reliable.

In the next phase, people wearing sweatshirts bearing the “NWG” theme started to circulate amongst the crowds in the shopping centre. The numbers of sweatshirts wearers used were gradually increased in a controlled manner. Initially just two started circulating, after which the result was measured. The number was then increased to four, six, eight and finally ten, with  survey made after each increase. The question asked was: “Have you noticed any marketing of ‘NWG’ recently?” Measurements were also made, asking the same question, while simultaneously displaying the “NWG” logotype.

The survey was conducted under the conditions detailed below, which may have somewhat reduced the impact value of the promo wear:

•    The level of clutter from other forms of media at the Ostra Nordstan shopping centre was extremely high. This took the form of other advertising, brand promotion and many other types of information input.

•    Since the “NWG” theme was fictitious, there was no specific target group, making it less likely that people would be receptive.

•    The “NWG” theme was unknown, neutral, and mean anything to those exposed to it. Because no other form of marketing had been undertaken for “NWG”, those exposed to it had no points of reference either. Promo wear was the only medium used.

•    The exposure time per individual was very short. Pedestrians walking the length of this street had an average of only 90 seconds during which they were exposed to the theme. Each person had, in effect, probably only a single glimpse. We can assume the impact value would have been higher if individuals had been exposed to the theme more often.

The results of the surveys after each increase in the number of NWG wearers are summarized and commented on below.

This graph charts the total impact of the “NWG” theme. The horizontal axis shows the number of sweatshirts used before each of the individual surveys. The vertical axis shows the result, in terms of the number of people in each separate survey who said they had noticed the “NWG” theme.

The following ‘penetration levels’ were calculated (penetration level was based on the number of people wearing sweatshirts with the “NWG” theme, calculated as percentage of the average number of people at the site of the survey at any one time: 123 people). Two sweatshirts wearers gave a penetration level of 1.6%, four sweatshirts wearers gave a penetration level of 4.9%, eight sweatshirt wearers gave a penetration level of 6.5% and ten sweatshirt wearers gave a penetration level of 8.1%. A penetration level of 1.6% (in this case two sweatshirt wearers) in sufficient for approximately 8% of the people present to notice the marketing theme. At a penetration level of 8.1% (in this case 10 sweatshirts wearers) about half the people exposed to the theme are likely to notice it.

The difference between a strong colour and a neutral one proved insignificant. Sweatshirts of both colours achieved a high impact value, although the bright yellow sweatshirt did attain a higher value. This indicates that the number of people wearing similar clothes, not the colour, is the key factor in achieving an impact.

The results revealed little difference between men and women in noticing the promo wear theme. This is good news. If the results had revealed a significant discrepancy between men and women in this respect, promo wear might have been less suitable when marketing to a particular gender.

Differences in impact rating did emerge, however, when age groups were compared. The youngest age group (20 and less) were most observant. There was a relatively sharp fall-off in the impact made on the 21-30 age group, but then a fairly stable result in the 31-50 age group. One possible explanation is that young  people are more receptive to marketing theme in places with a high level of ‘media noise’, because they have become acclimatized. It would seem safe to assume that these age differences in impact level apply to all media, not just promo wear.

 So: what conclusions can be drawn from this survey? Promo wear as a promotional medium does have a high impact. Promo wear was the only medium used to communicate the “NWG” theme. The results reveal that that the level of impact was very high, despite other negative factors: the high level of noise from other media, brief exposure, a neutral, unknown theme and no specific target group. It is safe to assume that the impact level would be higher or even significantly higher if promo wear was used where media noise was lower, and if the target group could be exposed to the theme more often, or over a longer period. Impact would also be improved if the theme was genuine - more distinct, with real import and aimed at a real target group – and/or if those wearing the promo wear knew that members of their target group were in their aria. When comparing the results of this survey with other marketing media, it must be emphasized that this study merely showed how many people had actually noticed the NWG theme. Some types of media research reveal nothing more than the number of people who actually ‘consumed’ the specific medium, and ignore whether the members of the target group have noticed a particular theme. That the colour of the promo wear used in this case made little difference suggests room for flexibility in choice of colours. If survey respondents recognize one or more of a company’s colours, and if the promo wear us made in these colours, the impression will be reinforced and, presumably, the impact will be greater. The gender of individuals in the target group  makes little difference to their noticing the theme. The fact  that the members of the youngest age group polled were more likely  to notice the theme is probably a general tendency. The combination of these last two factors means that promo wear as a marketing medium has a high impact value, no matter what the target group.

The results of the survey can be used in practice. For example, imagine an entrance to some event, measuring some 15 metres across, with a flow of 40 people a minute (about the same as in the shopping centre, where 120 pedestrians were moving in two directions at any one time, taking around 90 seconds to walk the length of the street). According to the above survey, this would enable 10 people wearing promo wear to achieve a likely impact of at least 50%. If people continue to pass for over an hour, this would mean a total of 2400, of which at least 1200 would have noticed the marketing theme.

Date 2006/01/07

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