List of Promotional Product Terms

There are a wide range of Promotional Products Terms used in our industry and we strongly advise clients to read below before planning a successful promotion.   Within these Promotional Product Terms lie 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 Merch & Effect fall into this category.

Trading Company: A company who assist 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.  This person must enjoy receiving and gain some (utility) value from the promotional gift.

Promotional Product Categories

Account Opener: Premium given to customers as a reward or thank you for opening an account.

Advance Premium: Premium given to new customers on 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, friends and the like. 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 catalogs, shelf cards, posters, specifications sheets and trade information materials.

Collectibles: 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 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.  Great for getting 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 amount 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 given to winner in a contest, sweepstakes or lottery, sometimes refered 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 Beer Promos by San Miguel using this option

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.