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Advertising Specialties
The Best Markets for Advertising Specialties Products to Sell to Three Top Markets
BY D. ALAN CHRISTOPHER, CASFORM, July 1993
In this series on selling ad specialties, I've tried to point out the many similarities between selling forms and ad specialties. After all, my purpose is not to convince you to quit selling forms and sell ad specialties only. Instead, I want to demonstrate the potential for additional sales within your existing account base.
So, let's look at some of the major markets. These aren't the only markets to call on. In fact, I've seen many great sales come "out of the blue" with applications that I never would have thought of. That's one of the great things about this industry-you are limited only by your creativity and vision.
One reminder before we explore the markets. In selling forms, you spend most of your time with data processing managers and purchasing agents. When you approach these customers, ask for introductions to the heads of other departments. Most of the time, the buying decision for ad specialties is done at that level. By the time it gets to purchasing, it's already a done deal. On the flip side, when purchasing managers are asked to make a decision, they follow the "path of least persistence" and ask for bids.
This happened to me last week on a large flashlight deal. My distributor was working with a purchasing agent, who was looking for "something" for one of the sales managers. The distributor proposed flashlights. We sent 27 different lights by overnight mail for the client to look at. Finally, the purchasing agent selected what he thought was the best one for marketing. After we had priced his quantity, he said, "I have to go out for bid. After all, I have no clear specs on what marketing wanted." So, the light went out to bid. Another distributor low bid it, then substituted a different light. The lesson: the distributor and I lost a very nice order because she didn't get to the decision maker who could have specified the exact light.
The Medical Market
So what is the best market to approach? The hottest market right now by all accounts is the medical market. Several of my manufacturers have specific kits with samples in them for the major markets, and medical is the most predominant. In addition, the January 1993 issue of American Printer magazine listed health care as the top market for printers. The article pointed out that an aging population and cuts in Medicare and Medicaid have meant increased competition for many health care providers. Team this up with the growth of corner medical clinics, and hospitals are losing customers. Also, some medical tests, a once sure stream of revenue, aren't covered by many insurance carriers, so hospitals and clinics have to do something to attract customers.One of the best areas within any health care account is the maternity/child care section. There is intense competition to get expectant parents to go to a particular hospital to attend birthing classes, have a child, etc. Hospitals have gone from providing simple handouts such as decals and buttons to developing extensive marketing programs. For example, a parish hospital in Louisiana did a mailing to expectant parents, inviting them in for a tour. After the tour, if the parents decided to have their child there, they got an ID card that would expedite entry on the day the mother went into labor. In addition, the card was good for discounts at local merchants that specialized in maternity/infant items. After the baby was born, the parents received a bag filled with free samples from various companies-diapers, formula, wipes, etc. The bag could be used as a baby bag for the next year.
Recruiting and recognition of employees also presents opportunities. There is a shortage of nurses and some doctors. The nurses' shortage is the most acute, and hospitals have to recruit new graduates and fill voids in specialized areas. Bonuses are not uncommon, but several hospitals use specialties as initial contact items when recruiting. I have seen the Perfume Applicator, a small pen-shaped item that carries any one of several retail perfumes in it, used as a recruiting tool. Nurses also like lapel pins for recognition of specific events or achievements or for recognition as an important member of the hospital team. Another hot item is a writing instrument, such as a pen with four different colored inks in it on a neck cord. Many of these items work well for volunteers, whom the hospital must recruit and recognize.
When hospitals open a new department, care wing or service, they also need specialties. These new offerings have to be communicated to the public, and customers have to be enticed to come in. In addition, because many hospitals rely so heavily on doctors' referrals, hospitals often buy gifts to give doctors in the community, especially in larger areas where doctors could send patients to one of several hospitals.
The Pharmaceutical Market
The health care market also includes pharmaceutical companies. A friend of mine is a salesman in that field. His trunk contains as many different ad specialties as it does drug samples. Pharmaceutical companies have to compete for doctors' attention 24 hours a day, trying to influence which drugs will be prescribed. Office reminders such as pens, note pads, magnets, decals, clipboards and napkins are useful items that give maximum exposure.Some ad specialties carry a health care message to be used in the home. Emergency poison guides and emergency call lists can hang on the refrigerator as a constant reminder and an advertisement for the all night corner drug store, complete with phone number. First aid kits are welcome additions to any household and can be given out by any business or organization, such as banks, insurance companies and agents, non-profit groups, etc. Specific events and months carry health messages as well. Nurses Week is in May, and October is Breast Cancer Awareness Month. Women's organizations, clinics, radiology centers and hospitals all give out Breast Examination Cards to women to raise awareness about breast cancer and the proper techniques for self-examination.
The Financial Market
Healthy banks, credit unions and savings and loans are starting to spend some money again. Also, banking regulations have been relaxed in many states, allowing institutions entry into new areas of loans and financing. And when all else fails, anytime a bank changes its name or is bought, there is an opportunity for a sale.The most visible item for a bank is ATM cards, although this market seems to be shrinking a bit. Most of the larger banks buy direct from large card houses, but smaller community banks and credit unions offer opportunities. Banks are also some of the largest buyers of calendars. Everything from small wallet cards to large sheet calendars carry a message, theme or important phone numbers for the bank customer. In smaller rural areas, banks are the center of fund raising and donation efforts, so they look for every opportunity to put their name in front of the community. In addition to calendars, napkins are very popular. Every town has multiple events, fund raisers, auctions, fairs and general celebrations, and, usually food and drinks are served. The napkins can be donated to the event and used internally in the lobby by the new accounts area.
Another visible item is bank bags. Commercial accounts use these to take deposits to the bank every day. They provide a large copy area for the bank to advertise and are one of the most popular and useful items in small communities. They are extremely durable and advertise a bank for many years. The amortized cost of bags over several years brings the cost to pennies per month. When presented as a cost-effective item, very few banks can afford to pass them up.
Banks also look for the personal touch. One of my distributors in North Texas is on the board of his town bank. Every year, he sells lapel pins in various Christmas shapes-trees, wreaths, candles, etc.-that are attached to a stick pin. The board members take turns standing in the lobby of the bank, pinning one on every female customer. This is a nice repeat order that has been going on for several years.
Previously, I mentioned the Counterfeit Bill Detector, a new item in the ad specialty industry. I'm happy to report that this item is selling extremely well, and about half the orders I see in my territory are for banks and savings and loans. They give these away to commercial accounts. Banks also give away kid's incentives, such as die cut decals and stickers that kids can take home.
Travel/Hospitality Market
Airlines and travel agencies use luggage tags to identify their frequent travelers. Hotels and resorts also use luggage tags to identify their frequent stayers. These sales have a high repeat value. One of the best "reward" pieces I ever saw was for a resort, which sent guests that stayed three times in a specified period a nice travel bag in rich brown leather with the resort's name in gold imprint. A letter accompanying the bag suggested the guest use the bag on the next visit. When clients arrived, a limo driver picked them up and drove them to the hotel. A bellman would take the guest and his luggage to a special room for check-in.Most hotels buy commodity items through centralized purchasing, but many items are still bought locally. In addition to luggage tags and bags, there are door knob signs, amenity signs in the rooms, employee name badges, employee recognition programs and pens and pads for the desk. One distributor in Colorado sold a lapel pin to a hotel/conference center. As a group or convention checked into the hotel, two pins were given to the event coordinator. When anyone from the hotel saw these pins, they knew to respond quickly to whatever request the wearer was making.
I know another distributor in a large town who does a good amount of convention business. She gets a list of the contacts for booked events months in advance, then contacts the organizations and proposes specialties with regional flairs and themes.
Travel agents use a lot of specialties in their work too. Like those in the medical and financial fields, they must constantly get their name in front of a lot of buyers. Direct mail pieces, such as Rolodex(tm) cards, multi-year calendars and rulers are used in large quantities. Thank you gifts to corporate planners are also popular.
D. Alan Christopher, CAS, is a multiline factory representative for ad specialties in the Southwest. He is presenting ad specialties programs at selected NBFA Trade Marts this year. Call NBFA's Education Department at (703) 836-6224 for details.