subject: Gift Giving As a Marketing Technique [print this page] Gift Giving As a Marketing Technique Gift Giving As a Marketing Technique
Within the business world, gift giving is becoming an integral part to the successful running of any business. As part of a thoroughly considered marketing strategy, the distribution of promotional gifts can enhance recognition and reputation, as well as forging new working relationships. Moreover, businesses are able to achieve these aims in a cost-effective, time-efficient, manner. There are many considerations to take account of when using promotional gifts; this article aims to clarify some of the more important concerns.
Market research indicates that the majority of corporate gift giving happens between a business and its most important clients. Nonetheless, promotional items, such as promotional mugs are well suited to large corporate events, such as conferences and trade fairs, as a means to gain recognition with as many potential customers as possible, inexpensively. Beyond this, promotional gift giving can occur between the business and its employees, to act as an incentive to increase productivity to this end, gifts reflect the business appreciation of their employees and acts to affirm internal relations.
Although there are no direct links proven, between corporate gift giving and increased business sales, there is substantial evidence to indicate that promotional gift giving enhances the reputation of a company, making them much more likely to see a return on investment from the promotional merchandise. According to the PPAI (Promotional Products Association International), companies that frequently offer promotional gifts, such as promotional mugs, at large corporate events, are much more likely to forge contacts with potential customers, than those who do not make use of promotional materials. Therefore, as a marketing strategy, promotional gift giving is a lucrative practice.
The use of smaller promotional gifts is more successful than the use of larger items. This may seem counter intuitive, the belief being that the larger the present the happier the recipient and the more likely they are to make use of the services pertaining to the business that is giving the gifts. However, this does not work in practice, as individuals often view larger gifts as a type of bribery, making the client/employee feel as if the business is coercing them into forming a relationship, this has the reverse effect of the aim then, to increase and strengthen relationships. Larger gift giving is tantamount to the hard-sales technique, which experts have long since debunked as a useful strategy for businesses.
Therefore, businesses need to consider the advantages and disadvantages of different promotional merchandise. To this end, the promoted business must liaise with their chosen promotional gift manufacturer; the latter are marketing specialists that can provide invaluable insight into the best means of promoting the business, depending on the aim of the marketing.
