Promo - December 2007 - (Page 22)

LETTERS to the editor Continued from page 21 all pieces of the same puzzle—all are related and linked. For proof, look no further than the Incentive Federation, an organization comprised of associations, publications, tradeshows, incentive providers and others involved with all aspects of incentives, rewards, recognition and promotional products. Promotional Products Association International, the Incentive Marketing Association and the Promotion Marketing Association all serve on the Federation Board of Directors and work together to advance the entire industry. Our association has been working for the benefit of suppliers and distributors for more than 100 years. I wonder how many new words will be added to the promotional merchandise lexicon in the next 100 years. Steve Slagle, CAE Promotional Products Association International President & CEO P&I RedefineD (Justly Enriched, November) I was so pleased to see your survey on the use of premiums and incentives, and am a huge fan of your book. However, your definitions within the survey are incorrect and do not appropriately define this sector of the consumer promotions industry. My company, Rooks Marketing Group, specializes in premiums and premium promotions, and I have been in the industry for about 25 years, on both the client and agency side, prior to setting up my own company. We work extremely hard to convey the benefits. Premiums and incentives are probably one of the most underutilized strategies, yet are extremely impactful and measurable. Premiums can also be a tactic as well. Let me briefly explain. Premiums are not necessarily premium-priced items as you suggest, such as high-end merchandise or travel/experience rewards. In fact, they are frequently extremely low-priced items. Some of the biggest premium promotion programs we work on for major consumer packaged goods companies are highvolume, low-cost premiums. Conversely, ad specialty items are often more expensive per unit. Ad specialty items can be a type of premium, but they do not usually constitute an incentive program. They are merely a tactic. Both premiums and incentives range in value from high value (cash, travel) to lower value items. While both premiums and incentives are typically used strategically to meet a full array of marketing objectives, the primary distinction is whether or not the intended result is based on a past, present or future action. Incentives are a broader category of consumer promotions and are often performance based to induce/award/ reward individuals based on past or future actions. Premiums are an item of value, other than the product itself, that are offered to immediately incent a desired action, including product purchase. Premiums are typically used against a whole range of tactics, such as in-pack, on-pack, special packaging, SLO, loyalty offers, etc. The broader category, incentives, falls into two primary areas: performance and prizes. In general, marketers seem to use the term “incentive” as that which motivates employees or sales teams. The term premium is generally used when referring to a sales promotion that is intended to generate a more immediate customer or customer response. Nancy Rooks President Rooks Marketing Group WAKEUP CALL (Sticky Situations, October) Looks like your new editor-at-large [Brian Quinton] will be doing some good things for you guys. I’m in the promotional products industry and the lead paint scare with Mattel and others really put people on edge. I felt Promo made a good point about the manufacturing industry today and why in order for American consumers to get their lower prices manufacturers have to go overseas. Jacinta Langford PR Director, Absorbent, Ink. Correction An article in the October issue “Sticky Situations” misstated that most of the 21 million toys made in China recalled by Mattel were suspected of lead contamination. Mattel recalled 2.2 million toys for suspected lead, the rest due to potential small part hazards. 22 December 2007 / WWW.PROMOMAGAZINE.COM / Promo http://www.promomagazine.com

Table of Contents Feed for the Digital Edition of Promo - December 2007

Promo - December 2007 Contents Editor's Note Urban Refuge Digital Directive Soft Soap Voice Lessons Jordan's Monster Deal College Bowl Sprawl Good Deeds Commentary Blue Christmas Q&A: Clutter Cutter Widgets? They're Easy The Agency Center Resource Center Secret Weapon Index of Advertisers

Promo - December 2007

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