There is a wide range of Promotional Products Terms used in our industry and we strongly advise clients to read below before planning a successful promotion. These terms will definitely help you understand and simplify the process of creating promotional products. Within this Promotional Product Glossary lies a great number of tools to tweak and improve your next campaign. Which options will you choose?
Promotional Product Terms Explained
The Players
Advertiser (Buyer): The company that buys the product from the distributor to use as a promotional tool; the promotional consultant’s client.
Promotional Consultant (Distributor): The promotional consultant develops solutions to marketing challenges through the innovative use of promotional products and is a resource to corporate buyers, marketing professionals and others.
Supplier: A promotional products company that manufactures, imports, converts, imprints or otherwise produces or processes promotional products offered for sale through promotional consultants. The ODM Group falls into this category.
Trading Company: A company that assists customers to purchase products from factories. This term is one which we do not like to use much since trading implies little added value, buying low and selling high. Most HK trading companies offer design, development, quality control and will have some unique products that they have developed in-house. Factories may also act as trading houses in that they may outsource some materials to complete a set.
End Customer: This is who we are all ultimately working to please. The end customer should enjoy receiving and gain some (utility) value from the promotional product.
Promotional Product Categories
Account Opener: Premium given to customers as a reward or thank you for opening an account.
Advance Premium: Premium is given to new customers on the condition they will earn it by later purchases.
Award: Recognition merchandise, often personalized, used to acclaim performance or milestones; may be useful objects (paperweights, clocks) or for display only (plaques, trophies).
Bonded Premium: Point-of-purchase premium attached to a product by a bond of plastic, paper, or tape.
Business Gift: Merchandise given by a business in goodwill, without obligation to its customers, employees, and friends, etc. Often, this business gift is not imprinted with the advertiser’s identification. Some companies prohibit employees from accepting business gifts.
Collateral Materials: Advertising materials that are not transmitted to consumers via advertising media. Collateral materials include catalogues, shelf cards, posters, specifications sheets, and trade information materials.
Collectables: Premiums designed to have inherent value based upon their perceived “collectibility”.
Commemorative: A merchandise keepsake used to mark a ceremony, anniversary, event, or milestone.
Container Premium: A product container, which when empty, may be used as a container for other items. These items are usually partially or completely self-liquidating since the consumer pays for the product.
Continuity Promos: A series of related premiums offered over a period of six to eight weeks.
Covermount: Gift with Purchase promotions where the gift is packaged on the cover of books and magazines.
Dealer Incentive: Premium or other reward is given by a manufacturer to retailers or distributors in return for a specified bulk purchase.
Dealer Premiums/Dealer Programs: Premiums offered to retailers who meet certain sales or performance standards.
Direct Premium: An item given free with a purchase at the time of the purchase. These include on-packs, in-packs, and container premiums, as well as those given separately.
Door Opener: An item of value offered by a salesperson to persuade potential buyers to listen to a sales presentation or to initiate interest in a product or service for a sales call follow-up.
Gift with Purchase: Buy a product and get a free gift with it. These are especially useful for enticing consumers to make impulse purchases.
Giveaway: Direct premium given free of charge or obligation to generate awareness and/or goodwill.
Host Gifts/Hosts Incentives: A gift or premium given by a party plan operator to a consumer who agrees to be the host for a demonstration party. The value of the gift is usually proportional to the number of sales at the party.
Incentive: Reward for a purchase or performance.
In-Pack: A premium offered inside a product package.
Keeper: A premium offered in direct-mail marketing for accepting a free trial of the sale merchandise and to be kept by the consumer even if the trial item is returned.
On-Pack: A direct premium attached to the exterior of a product package or sometimes riding with it in a special sleeve, carton, or film wrap.
Premium /Promo: A product or service offered free or at a reduced price if the recipient performs some task, such as purchasing an item or meeting a sales quota.
Prize: Reward is given to the winner in a contest, sweepstakes, or lottery, sometimes referred to as a sales incentive award.
Purchase with Purchase: When buying a product, you can add a little extra to get a free gift. Check out this blog on how Nescafe managed to stay on top of their game with their GWP tumbler with logo
Recognition Merchandise: Award, often personalized, used to acclaim performance or milestones; may be useful objects (paperweights, clocks) or for display only (plaques, trophies).
Referral Premium: A premium offered to customers for helping refer/sell a product or service to friends or associates.
Promotional Product Terms – The Mechanisms.
Advocacy Advertising: Advertising that is specifically designed to induce, discourage or advocate some specific kind of action on the part of a corporate, social, or government entity.
Bounce Back: An advertisement sent along with an already ordered self-liquidating premium to sell other premiums on a self-liquidating basis.
Combination Sale: A tie-in of a premium with a purchase at combination prices; sometimes self-liquidating; often an on-pack.
Contest: A competition based on skill, in which prizes are offered.
Continuity Program: An offer of products over time.
Direct Mail: A mailing of a package, other print collateral, or materials that are targeted directly to a predefined list of customers.
Marketing Mix: Combining marketing elements, including advertising, promotional products, direct mail, and public relations, into one cohesive marketing program.
Perceived Value: What someone believes merchandise to be worth. To successfully sell premiums, the consumer must be convinced the proposed premium is worth putting forth the extra effort required to earn the item.
Traffic Builder: A promotional product or premium designed to get consumers to come to a store or a tradeshow.
Promotional Product Terms – Shipping / Logistics
Incoterms: Terms of trade for selling products to customers. Is this the price delivered to a client like DDP, or does the client need to go to your factory and pick up Ex Works?
Material Safety Data Sheet: Listing of components of the product so that we can see if any harmful substances for consumers or shippers.
How can ODM help?
If have any further enquiries, feel free to contact ODM and we will provide you with more information. We can also help you brainstorm new product ideas to vastly improve your business. Our product designers will be able to provide you with multiple unique and interesting ideas to wow your audience and increase brand recognition. Our specialists will assist you throughout every process to ensure the desired outcome of every design and marketing project. Contact ODM now!
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