Cost, Value, And Perceived Value Of Promotional Items
The value of promotional items is not necessarily a simple concept. In fact, when it comes to promotional items, there are three inter-related concepts to consider that will help you choose the best promotional items for your purpose, and will also help you to get the most out of the items that you buy.
Cost
The cost of a promotional item is simply what it costs you to buy—no big mystery here. Don’t forget to factor in extra costs when choosing promotional items. Most prices include the cost of a single color printed design, but there are small extra charges if you want additional print colors. There is usually also an additional one-time set-up charge for each design you choose.
Remember, also, to account for any costs involved in distributing your promotional items. For example, if you’re planning to distribute items via direct mail, you’ll need to include the costs of packaging and shipping.
Value
This concept refers to the benefits that you get from using the promotional items you choose. For example, you might be offering promotional items as purchase incentives in a retail store, to attract potential customers at a trade show, or to motivate your employees. Paying some attention to this concept can help ensure that you select the right items for your purpose. When choosing promotional items, ask yourself these questions:
• Who are these items intended for—clients, business associates, customers, employees?
• How will the items be distributed—within the company, in a retail store, via the mail, at trade shows?
• If you are targeting retail customers, who is your target audience? Usually they’ll be the same people who shop at your store—your items will need to be chosen to appeal to the people you are trying to reach.
Perceived Value
Perceived value has nothing to do with the costs and benefits to you of distributing promotional items. Instead, this term describes the value of the items to the recipients, and in fact, perceived value does not necessarily have anything to do with the actual cost of the items. You might give out ¤10.00 laptop bags as promotional items, but if your target audience is a demographic group that does not tend to own high-tech items, your money is essentially wasted, because laptop bags are not perceived as valuable, desirable items by this demographic.
The key to giving even the least expensive promotional item successfully is to give it in a way that increases its perceived value. A ¤0.09 pen can have a high perceived value if you offer it to a client or customer at a time when they particularly need a pen and don’t have one. By giving an item that there is an immediate need for, you create a bigger impact that is more likely to be remembered by the recipient. Another great example is that of a rain umbrella—not particularly useful when the sun is shining, but an essential item with a high perceived value to a person caught in the rain without one.
Georgia Brown is the marketing director for Clickpromogifts one of the UK's leading suppliers of promotional items and custom printed promotional items.
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