Incentive - April 2008 - (Page 59) THE INCENTIVE MERCHANDISE BUYER’S HANDBOOK CHAPTER 5 finding the right partner A fter setting the goals, budget, and deciding on the kinds of merchandise you want to offer for an incentive program, the next step involves securing the awards that will motivate the target audience. Whether featuring the latest electronics, luxury leather goods, or a little bit from every product category, acquiring the actual goods requires finding a reliable resource. Fortunately, there are a number of key players in the incentive industry ready and willing to provide products and expertise for programs. Manufacturers, independent representatives, incentive companies, promotional products distributors, and other firms all work in tandem with buyers to deliver the best merchandise possible for a client’s campaign. You can turn to these different merchandise specialists to handle everything from basic requests such as pricing and product selection to the more complex tasks of developing communications strategies, handling fulfillment, tracking results, and more. Keep in mind that the roles are beginning to blur as businesses strive to offer customers greater value. But having a better understanding of the different channels of distribution can only be beneficial to incentive planners who are trying to determine the next partner for their merchandise awardsbased program. Whether an incentive initiative calls for a comprehensive product catalog or one coveted brand-name item, the following overview will help you maximize your experience working with the different parties that make up the merchandise marketplace. OUTSOURCING OPTIONS Anyone in charge of putting together items for an incentive program can easily find merchandise online or at retail. However, the do-it-yourself approach does not always deliver the best solutions. Outsourcing to expert organizations often opens up new possibilities for incentive programs that you simply cannot realize or execute on your own. Here are the major players: Manufacturers Generally, companies specializing in the production and distribution of their own brand-name products— whether watches, writing instruments, or other consumer goods— typically rely on outside representatives to handle their incentive business. However, some major manufacturers also have an in-house special markets division dedicated to corporate sales. The advantages of working directly with a manufacturer’s special markets division include access to exclusive pricing, creative customization, and convenient dropshipment arrangements. In addition, companies with a special markets division usually understand the needs of the incentive market and program execution. In most cases, a special markets division will pass an incentive lead to a designated manufacturer’s representative in the buyer’s respective territory. One major draw- Point of Purchase Program planners have several incentive merchandise channels to turn to for assistance and buying. Merchandise incentive respondents for the 2007 Incentive Federation Marketplace Study reported their buying preferences. Promotional products/specialty distributor .74% Direct from manufacturer/premium representative . . . . . . . . . . . . . . . . . . . . . . . .44% Local retail store . . . . . . . . . . . . . . . . . . . . . .31% Incentive company/incentive house . . . . . . .27% Sales promotion/advertising agency . . . . . . .17% Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16% Mail order house . . . . . . . . . . . . . . . . . . . . . .11% Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5% SPECIAL SECTION April 2008 | 59
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