High Value Promotional Items - Is it always the best option?
Marketers spend on promotional items is expected to grow to grow at a healthy rate globally for the next three years. FBT & CPG companies drive the global demand with a contribution of 60 - 70 % of demand. Organizations are increasingly shifting from procuring low cost giveaway items to utility / functional items that are generic keeping in mind that usefulness is the highest priority that are given by consumers in order to retain a promotional product. It is suggested that the procurement of these items can be carried out by engaging with regional suppliers / manufacturers who host e-platforms & web shops or with global purchase organizations (GPOs). The shift is based on factors like ease of procurement due to innovative best practices, relevance to the core business activity & consumer, longevity of the promotional item & average impressions per use. This article also suggests that opting for generic utility items helps in the use of the same product across multiple domains or categories, pooling the demand and better cost saving opportunities through effective negotiations. Shift from Cost to Utilityï¿½ Marketers are gradually shifting from procuring low cost items to value or utility based relevant products. According to studies the main reason to retain a promotional product is its usefulness. Giving away a low cost item that is of very little use has a possibility of bringing down the value of the brand. Hence marketers aim for high return on impressions which is possible only when the product is made relevant and useful. High Utility items such as computer devices, bags, writing instruments and desk stationeries etc. are not only a mixed bag in terms of cost but marketers procure these items keeping in mind that these products have more contacts with the consumer. Sourcing of these products is not only easy but majority of the high impression utility products are also low in cost due to minimal customization. Author: Karthik S
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