Description
Promotion is one of the market mix elements, and a term used frequently in marketing. The specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity.
STUDY REPORTS ON PROMOTIONAL PRODUCT
A quantitative study about which promotional products are the best to be used in general and specific industrie
ABSTRACT
Title: Promotional Products - A quantitative study about which promotional product are the best to be used in general and specific industries Authors: Philip Andersson and Kristiana Malinova Supervisor: Jean-Charles Languilaire Examiner: Christine Tidåsen End seminar: 2012-06-04 Level: Bachelor Dissertation in Marketing, 15 Swedish credits, Spring 2012 Key words: promotional products, promotional items, promotional gifts, product advertising, promotion, promotion methods and swag. Question:"Which are the best promotional products to be used by companies in general and in specific industries?" Purpose: The purpose of this study is to describe and analyze the use and the importance of promotional products for companies. What we want to achieve with this study is to find out which promotional product is the best in general and in specific industries. We will explore the power of promotional items and how to achieve the best results when it comes to saving time and money. Theoretical framework: The theoretical framework includes theories regarding what companies need to consider when choosing to use promotional products. The theories which are used are based to on the four hypotheses which we have chosen to analyze. Methodology and Method: This dissertation is a quantitative study with a deductive and extensive approach.
Empirical framework: The empirical framework present findings and statistics of the research. Analysis: The four hypotheses are analyzed and critical examined. Conclusion: If companies learn how use promotional products they will gain a great advantage on the market. The type of the industry is of great importance when it comes to choosing the right promotional products.
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CO N T E N T
1. INTRODUCTION ......................................................................................................................... 1 1.2 BACKGROUND ............................................................................................................................... 1 1.3 PROBLEM AREA ............................................................................................................................. 2 1.4 RESEARCH QUESTION.................................................................................................................... 4 1.5 PURPOSE OF THE STUDY ...............................................................................................................4 1.6 DELIMITATIONS ............................................................................................................................. 4 1.7 CENTRAL CONCEPTS ...................................................................................................................... 4 1.8 DISPOSITION.................................................................................................................................. 5 2. THEORETICAL FRAMEWORK............................................................................................... 6 2.1.1 AN OVERALL DEFINITION OF PROMOTIONAL PRODUCTS.......................................................... 6 2.1.2 STRENGHTS................................................................................................................................. 6 2.1.3 WEAKNESSES .............................................................................................................................. 7 2.2 INTEGRATING PROMOTIONAL PRODUCTS IN ONE´S MARKETING ACTIVITIES ............................. 7 2.2.1 THE WHY..................................................................................................................................... 7 2.2.2 THE WHO.................................................................................................................................... 8 2.2.2.1 SEGMENTATION ...................................................................................................................... 8 2.2.2.2 TARGETING .............................................................................................................................. 9 2.2.2.2.1 TARGET MARKETING STRATEGIES...................................................................................... 10 2.2.2.3 POSITIONING ......................................................................................................................... 11 2.2.3 THE WHERE............................................................................................................................... 12 2.2.4 THE WHAT ................................................................................................................................ 13 2.3 HYPOTHESIS................................................................................................................................. 14 2.3.1 HYPOTHESIS 1........................................................................................................................... 14 2.3.2 HYPOTHESIS 2........................................................................................................................... 14 2.3.3 HYPOTHESIS 3........................................................................................................................... 14 2.3.4 HYPOTHESIS 4........................................................................................................................... 14 3. METHODOLOGY AND METHOD ......................................................................................... 15 3.1 POSITIVISM OR HERMANEUTIC................................................................................................... 15 3.1.1 RESEARCH APPROACH.............................................................................................................. 15 3.1.2 INTENSIVE OR EXTENSIVE......................................................................................................... 16 3.1.3 QUALITATIVE OR QUANTITATIVE ............................................................................................. 17 3.1.4 COLLECTION OF DATA .............................................................................................................. 17 3.1.4.1 THE SELECTION AND COLLECTION OF SECONDARY DATA .................................................... 18 3.1.4.2 THE SELECTION AND COLLECTION OF PRIMARY DATA ......................................................... 18 3.1.5 THE CREDIBILITY OF THE RESEARCH......................................................................................... 19
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3.1.5.1 RELIABILITY ............................................................................................................................ 19 3.1.5.2 VALIDITY ................................................................................................................................ 20 3.1.6 MOTIVES FOR THE CHOICE OF METHODOLOGY ...................................................................... 20 3.1.7 CRITICAL REVIEW OF THE CHOSEN METHODOLOGY ............................................................... 20 3.1.9 METHOD TO ANALYZE .............................................................................................................. 21 3.2 METHOD...................................................................................................................................... 22 3.2.1 DESIGN OF QUESTIONNAIRE .................................................................................................... 22 3.2.2 CHOICE OF QUESTIONS ............................................................................................................ 22 3.2.3 RESPONSE OPTIONS ................................................................................................................. 23 3.2.4 TEST GROUP ............................................................................................................................. 23 3.2.5 THE RESEARCH PROCESS .......................................................................................................... 24 3.2.6 INTERPRETIVE TOOLS ............................................................................................................... 24 3.2.7 RESPONSE RATE........................................................................................................................ 24 3.2.8 SAMPLING METHOD................................................................................................................. 24 3.2.8.1 SAMPLING MATERIAL............................................................................................................25 4. EMPIRICAL MATERIAL......................................................................................................... 26 4.1 RESEARCH RESULTS AND STATISTICS .......................................................................................... 26 4.1.1 GENERAL AND KNOWLEDGE BASED QUESTIONS..................................................................... 26 4.1.2 ETHICAL QUESTIONS................................................................................................................. 28 5. ANALYSIS................................................................................................................................... 34 5.1 THE WHY...................................................................................................................................... 34 5.2 THE WHO ..................................................................................................................................... 36 5.3 THE WHERE.................................................................................................................................. 43 5.4 THE WHAT ................................................................................................................................... 45 6. CONCLUSION............................................................................................................................ 49 6.1 PURPOSE OF THIS STUDY ............................................................................................................ 50 6.2 CONTRIBUTION TO RESEARCH AND PRACTICE ........................................................................... 50 6.3 FURTHER RESEARCH.................................................................................................................... 51 RESOURCES............................................................................................................................... 52 BIBLIOGRAPHY................................................................................................................................... 52 INTERNET ARTICLES........................................................................................................................... 54 INTERNET RESOURCES....................................................................................................................... 56 MISCELLANEOUS ............................................................................................................................... 57 APPENDIX 1 APPENDIX 2
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1. INTRODUCTION
The first chapter of the dissertation serves as an introduction of this research which also gives the reader a good insight about the subject. The introduction opens with a background of the subject, followed by a description of the problem area, the research question and the purpose of the paper. The chapter also includes delimitations and disposition of the thesis.
1.2 BACKGROUND There is a war out there, where companies fight for their lives to get consumers attention (Ries & Trout, 2005). The marketing in the beginning of the 21st century differs from the marketing in the past. The broad market outlook is the old way for companies to market their products, while the direct interaction with customers is the new way (Nelson & Kanso, 2002). A way to reach out to customers nowadays is the integrated marketing communication (IMC) which has become a very important trend as it is a communication process which involves the planning, creation, integration and implementation of different marketing communication tools to send a consistent message to the target audience (Shimp, 2008). Integrated marketing communication differs from traditional marketing as it does not only focus on persuasion and brand building, but also focuses on building a relationship with customers (Hutton, 1996). Building a relationship with its customers is an important aspect for the company´s development and success. Therefore, in order to provide a clear and consistent message to the customers different marketing communication tools are used such as advertising, direct marketing, sales promotion, public relations and personal selling. These tools are also called the promotional mix (Shad & D`Souza, 2009).
A more common way of promotion which helps other marketing activities to be more effective and efficient is the sales promotion. Sales promotion is a nonpersonal promotional effort which is a part of the promotional mix and which stimulates customers to buy more. Sales promotion is done by using tools such as coupons, discounts and sales, contests, exhibitions, free samples, gifts and promotional products (Carson, 2009). A sales promotion tool that has become increasingly popular and which is used by many companies is the promotional products. Promotional products have an important characteristic that exceeds all other forms of advertising which is their staying power (Thorne 2011). Even though promotional products are being used by many companies, they may still wonder how promotional products can benefit their particular business in the best way. Whether companies are looking to increase their profits motivate staff, encourage customers to visit a store/website or to introduce a new product to the market, promotional products are the answer. It was not until late nineteenth century that a wide variety of promotional products were promoted, which contributed to creating the industry as it is known today (Carson, 2009). "Believe it or not, promotional products hold the key to quantifying the performance of every marketing medium you see. In short, you can use them to keep all of your other advertising honest!" (Carlton & Blaise, 2004, p.7).
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1.3 PROBLEM AREA Most of the companies on the market are small and medium enterprises and have limited resources therefore they need to consider how they want to spend their money. The product options are becoming more and more homogeneous and the customers are becoming more spoiled while the competition is becoming more intensifying and the prices are forced to decrease (HUI, 2010). Changes in media channels and an increase in use of media have today contributed to making it more difficult for companies to convey their message to the consumers. Consumers are being exposed to an increasing degree of competing messages so that they become more inclined to avoid and distrust companies marketing communication (Rosengren, 2008). Customers often see the different marketing tools companies use in order to market their business. Some of those tools include; advertising, personal selling or even promotional products in order to reach out to their customers. If customers are not satisfied with the company's way of marketing there is a big chance that the customers will not make a purchase from this company. Therefore, it is important for companies to use the right marketing tool for their business (Morris, Barnes & Lynch (1999).
It all depends on how the product will be discovered and consumed by its customers. Therefore it is very important to find the right combination between the message companies try to convey to the customers, target groups which companies try to reach and suitable marketing channels they use in order to convey the message (Dahlén & Lange, 2003). Companies are fighting to establish business relationships with their customers but what many companies do not know is that promotional products can be used as an auxiliary factor for customers to make it easier for them to work. Instead to be seen as a working organization, companies can be seen as a partner to the customers (Thorne, 2009). Therefore, what is important when it comes to building a brand or to have a business relationship is to demonstrate to their customers that "we are here when you need us and we will help you get the job done!"(Thorne, 2011, p.14). Gifts like promotional products cannot create a relationship between companies, but it can contribute to build a solid relationship. To give a gift to a customer is more than the gift itself. It is a communication tool where the company's symbol is involved. The selection of the perfect gift of a huge importance for the business relationship. It is also important to know how to use promotional products correctly (Beltramini, 2002). If the effect of using promotional products is such that it becomes an incentive for companies to ensure their businesses and with the help of specified payments or gifts speed up negotiations quickly, then such type of effect can be seen as a bribe to make a safe sale (Jobber & Lancaster, 2009). Promotional products are the key for companies to improve the results of all marketing strategies they use (Carlton & Blaise, 2004). Companies use promotional products to spread the word about their organization, products and services. Despite the fact, many people, including marketing professionals do not have enough knowledge about promotional products, what they are, what they do and how to use them in the most effective manner (Carson, 2009). It is necessary for companies to have some knowledge about promotional products in order to avoid using them incorrectly (Jobber & Lancaster, 2009). It is easy to buy
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promotional products, but it is also easy to make mistakes when buying promotional products. The mistakes can be costly for the companies, not only in pounds, but in forms of companies, brands and images (Thorne, 2011). As mentioned earlier in the background, promotional products have been here for a long time and are an important factor for companies when it comes to promoting themselves (Carson, 2009). Companies use promotional products in order to advertise and promote their business, as well as create awareness and leave traces. The promotional products industry today offers more than 15 000 different types of objects with more than 650 000 individual products (Nelson & Kanso, 2002). Choosing the right promotional product is the key to its effectiveness (Pennington, 2002). Many industries in general use the same promotional products and the most popular promotional product used by all industries is the pen (Carson, 2009). Companies still do not know which promotional products are the best for promoting their particular business. It may be due to companies in various industries possess too little information about promotional products (Carlton & Blaise, 2004). Therefore, lack of knowledge may be the reason for why companies are using the same types of products. Another reason why companies use the same promotional products could be because they may believe that these specific promotional products are the most efficient because all companies are using them. Therefore, before choosing what kind of promotional products they are going to use companies first need to consider what kind of industry they are in and what their target market is (Thorne, 2011). For example if you have a fishing industry and your target market is fishermen and your products are boating and fishing equipment then you would probably not send a fluffy soft toy as a promotional product (Carlton & Blaise, 2004). Customers who receive promotional products return sooner and more frequent to businesses (Carson, 2009). When a customer receives a gift from a company, especially a gift that is personally imprinted or has any impact on the customer, makes the customer feel appreciated and valuable to the company (Shanka & Handley, 2011). This leads to a better relationship between the customer and the company and also increases the customers' loyalty for the company for a longer time (Carlton & Blaise, 2004). If the promotional product does not satisfy the customer then he or she may not use the product and usually throws it in the trash bin, which thereby harms the company´s investment in both time and money (Thorne, 2011).
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1.4 RESEARCH QUESTION A strong indication that companies marketing may not be working is the lack of knowledge about promotional products so our question is as followed;
"Which are the best promotional products to be used by companies in general and in specific industries?"
1.5 PURPOSE OF THE STUDY The purpose of this study is to describe and analyze the use and the importance of promotional products for companies. What we want to achieve with this study is to find out which promotional products are the best in general and in specific industries. We will explore the power of promotional products and how companies can achieve the best results when it comes to saving time and money.
We want to help strengthen organizations ability when it comes to choosing the right promotional products and also to provide them with advice regarding investment in promotional product based on customers' reactions and thus help them to become more successful in their selection of promotional products.
1.6 DELIMITATIONS Promotional products are used in several ways but the main core objectives are motivating staff and increasing business profits (Carson, 2009). Although we mention these matters in our dissertation we have chosen to focus on which promotional products are most preferable by the customers.
We have also chosen not to go into depth about customers' psychological thinking about promotional products and also on their reaction when they receive a promotional product.
1.7 CENTRAL CONCEPTS Advertising which is a non- personal presentation of a particular product or service and tries to draw the attention of potential and current customers via newspapers, magazines, television, radio etc. (Kotler & Keller 2012).
Direct Marketing which is trying to create a relationship between the company and its customers. In direct marketing companies use people´s names to make them feel personally chosen and connected to the company when they send advertisement via mail, telephone, email or the Internet (Kotler & Keller 2012). Personal selling to have face to face contact with a customer. Unlike the other promotional tools personal selling permits a direct contact between a buyer and a seller. The seller identifies needs and problems of the buyer, to conveying the features, the benefits and advantages of the product or service they sell. To close the sales and to follow up the customer so that they stay satisfied (Kotler & Keller, 2012). Public relations are used for the management to communicate and build relationship to establish a strong understanding between the company and its employees, customers, other firms, the government and media in that way to promote or to protect the company´s image (Kotler & Keller 2012).
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Sales promotion is encouragement of trial or purchase achieved through contests, demonstrations, discounts, exhibitions, giveaways, merchandising, special offers etc. (Kotler & Keller 2012). Target group is a set of buyers sharing common needs and characteristics that the company decides to serve (Kotler & Armstrong, 2009). Marketing channels are avenues used by the marketers in order to make products available to customers (Jobber, 2009).
1.8 DISPOSITION This dissertation consists of seven chapters excluding the reference and appendices list. The chapters are presented below.
Chapter 1: Introduction The above pages serve as an introduction to this study. It includes background, problem area, purpose and research question, delimitations, disposition and definitions. Chapter 2: Theoretical framework This chapter presets previous research and relevant theories which will help to analyze the collected data and information. Chapter 3: Methodology and Method The third chapter of this thesis will describe the applied methodology and applied methods. This chapter gives the reader a deeper understanding of the chosen research approach, how the selection process was preceded and how the questionnaire was designed. Chapter 4: Empirical Material This chapter presents all gathered information collected through our questionnaire. Chapter 5: Analysis In chapter five analyzes and interpret the collected data with the help of the theoretical framework. Chapter 6: Conclusion In this chapter of the dissertation we sum up all the analyzed data providing the reader with a conclusion and an answer to the research question. We also give recommendations and suggestions on further research.
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2. THEORETICAL FRAMEWORK
This chapter is called theoretical framework and it presents previous research and theories which are relevant to our research and which are also a great help regarding the validity of this study. The structure that is chosen is overall definitions, strengths and weaknesses, of promotional products, followed by marketing activities and finally the thesis hypotheses which are going to be analyzed later on in the analysis chapter.
2.1.1 AN OVERALL DEFINITION OF PROMOTIONAL PRODUCTS What is promotion? Promotion is one of the four P´s; product, price, promotion, place, in the product marketing mix. The marketing mix is a framework for the management to be tactical when it comes to customers' relationship and to gain a competitive advantage over its competitors (Kotler & Keller, 2012). Jobber (2010) describes promotion as the marketing communication activities which consist of; advertising, personal selling, sales promotion, public relations and direct marketing. Usually organizations use a combination of promotional strategies to achieve the best results possible (Rowley, 1998). Companies use promotion to spread the word about their organization, product or services. Research is showing that a good way to spread the word is to use promotional products (Carson, 2009). 2.1.2 STRENGHTS Promotional products are decorated or imprinted items which are used to promote services, products or company programs (Carson, 2009). Promotional products have the power to get an effective, targeted message straight in the hands of the potential customers (Carlton and Blaise, 2004). Thorne (2011) states that promotional products have one important characteristic which is different from other advertising methods and that is their staying power. Promotional products are products which can be used for years and every time the customers use the product they are being reminded of the company (ibid).
According to Donald R. Self (2001) promotional products´ have seven main strengths; which are presented below; Target ability is similar to direct mail. It is common for companies to use direct mail for distributing promotional products when the advertiser has control over it. The products are also used to add a motivational lasting ability to direct mail. The waste of the distribution can be eliminated. Lasting ability means that promotional products may have a long life. It is hard to say how many exponents a product gets per lifetime. Creative impact is the high use value for the most promotional products which often involves the user. The involvement is combined with good targeting and creative design. The impact can be based on size, value, personalization or artistic flairs. It can be imprinted on balloons and pens etc. The creative possibilities can be endless of ideas. Goodwill implies that promotional products are the only promotional mediums which have obsequiousness built in. Most of the people like to receive a gift. The word FREE is a very powerful word in copywriting. The goodwill may results in repeated purchases. Loyal customers will recommend the products to others. Free products may be given to solve any simulations of the customer. Tangibility for organizations is to have the ability to have a tangible symbol such as a promotional product which makes a bond between the customer and the organization. The relationship can be seen as proof from a T-
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shirt or a plaque. Flexibility can offer a wide range of promotional products and can be used to demonstrate and in order to represent other media. Motivation may change people´s behavior in response to rewards which can be reinforced though promotional products.
2.1.3 WEAKNESSES Nelson and Kanso (2002) argue that the strengths of promotional products can also be their weaknesses. To have the company´s name and logo on their promotional products may result in the company having too much confidence in the product. For example if the seller relies too much on that the customer will call them back because the customer has received a promotional product, instead of closing the deal directly on the place (ibid).
Imprinted promotional products can have a high production cost, it can vary from £0, 08 to £1276 per unit depending on what the company's goal of the product is (4imprint.co.uk, 2012). If a company gives away a "cheap" pen to a customer which does not reach the customers' expectations could easily result into customer throwing the pen in the garbage can or not use it again which will result in that the pen will lose its long lasting value (Brown, 2008). Using a promotional product which does not reach the expectations of the customer may also indicate that the company does not have the resources to invest in something with better quality which could make the customers think that the company is not successful which may lead to that they do not make a purchase (Thorne, 2011).
2.2 INTEGRATING PROMOTIONAL PRODUCTS IN ONE´S MARKETING ACTIVITIES According to Thorne (2011) the first question companies need to consider before they choose a promotional product is WHY they want to use promotional products. There are several reasons for why a company would want to use promotional products such as; to make the company´s name visible, to influence people to work for them or to say "thank you" to the customers for buying from them. After that companies need to consider WHO they want to serve; families, teenagers, students or colleagues. Once they decide WHO they want to serve companies need to decide WHERE their customers will be using the products. By knowing where their customer will be using the products will help them define what products will be the best fit. Knowing WHO their potential customers are companies can easily decide WHAT their promotional product will be and also help them decide investments (ibid). In this section we will develop all of these factors and give a clearer description of each of them.
2.2.1 THE WHY
Thorne (2011) argues that before companies decide which promotional product they are going to buy, they need to consider WHY they are using promotional products and what purpose they use. Two reasons are addressed in this research: A reason can be that the company´s ultimate goal is to grow revenue by handing out promotional products so that customers will remember the company which will eventually lead to additional purchases and increased revenue (Carson, 2009). McCarthy and Eugene (2008) state that a direct mail which includes a promotional product could increase the
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customer´s response rate by 30%. Carson (2009) argues that results which have been enhanced after repeated doses of the promotional products have led to that people have tried new products which have never tried before. Therefore, surrounding the potential customers with promotional products through repeated mailings can increase the name and the brand recognition for the company (ibid). Another reason for using promotional products which Carson (2009) argues can be to retain current customers. Receiving something like a card holder, clip board or coffee mug will not only make customers come back to the company, it will give referrals. The marketing strategy that the organization uses with the promotional products should include customer appreciation programs. For example for the consumer to receive a coffee mug with a personal note were the company thanking for their purchase and loyalty. The receiver will appreciate the individual touch and the product; it will also leave a long-term impression (ibid). Increased the attention of the availability of a product and positive evaluation of a product can also lead to repeat purchases (Porter & Claycomb, 1997; Bagozzi, 1998; Raghubir, 2004). Muhammed Ali once said," I figured that if I said it enough I would convince the world that I really was the greatest" perhaps "saying it enough" is the key" (Carson, 2009, p.7).
2.2.2 THE WHO
Before companies choose which promotional product they are going to buy, they need to think about WHO it is that is going to receive the product. Therefore companies must determine the characteristics of their potential customers such as; age, gender and occupation (Thorne, 2011). In order to be able to identify those characteristics, to help companies select appealing promotional products which will encourage customers to respond fast to their promotion, companies need to build a solid marketing strategy. To create and support such marketing strategy companies need to be aware of market segmentation, target market and positioning (Carson, 2009).
2.2.2.1 SEGMENTATION
According to Jobber (2010), market segmentation is about identifying individuals or organizations with similar characteristics to thereby facilitate the choice of market strategy. Market segmentation consists of dividing the market into smaller and more similar submarkets. The goal of market segmentation is to identify customers with similar requirements so with the right product or service to obtain the highest rate of return for a product (ibid). Jobber and Lancaster (2009) state that the most common basis for segmentation are age, sex and occupation. Kotler and Armstrong (2008) argue that customer needs and wants change with age. Therefore companies need to identify the age of their potential customers which will enable them to select the right promotional product. Carson (2009) gives an example that teenagers the ages of 13-19 may prefer a free video game or a DVD but may not respond to a CD of classical music. Therefore, dividing the potential customers into different groups based on gender reduces the selection of promotional products. If the company´s potential customers only consist of females, aromatherapy gifts are a good choice rather than golf or barbeque accessories which male customers would be very satisfied to receive. To be able to identify
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the potential customers occupation can facilitate the choice of the right promotional product. Students may want necessary products such as computer accessories, calculators or dictionaries and thesauruses and business professionals may want more luxurious products such as leather computer bags, jewelry and watches (ibid).
2.2.2.2 TARGETING
As mentioned above, target marketing means that companies divide the market into smaller segments with customers who have similar characteristics (Jobber, 2010). According to Blatteberg, Py?ng-do, Byung-Do and Neslin (2008) targeting means to select relevant segments that companies will invest their resources in order to obtain its customers. Companies must then evaluate these segments and decide which they want to serve. As companies evaluate the market segments, they should examine two problems: the market attractiveness and its ability to compete in the segment. The market attractiveness can be assessed by companies looking at market factors, competitive factors, political, social and environmental factors (Jobber, 2010). Jobber (2010) indicates that when companies choose how they should proceed when marketing themselves, they should think about whom they want to target, the number of people they want to reach and how often they are going to encounter with the company's advertisement. Carlton and Blaise (2004) state that for companies to deliver their advertising messages as efficiently as possible, clients need to hear or see the advertisements at least three times before they are ready to respond to it. According to Carlton and Blaise (2004) before choosing a targeting group companies should think carefully of if they are the decision makers and how many they are because that will determine how much the company can afford to spend on each product. When sending promotional products to customers in a specific target market companies should consider gender, occupation and environmental differences. By sending a product which is useful to the customers and which has a good quality will result in a quick respond to the promotion (Carlton & Blaise, 2004).
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2.2.2.1 TARGET MARKETING STRATEGIES
There are four general marketing strategies which companies can choose from when they choose which and how many segments they want to compete in. Those are: undifferentiated marketing, differentiated marketing, focused marketing and customized marketing (Jobber, 2010).
Undifferentiated marketing
Customizes marketing
Target marketing strategies
Differentiated marketing
Figure 2.1 Market Segmentation Andersson & Malinova 2012
Focused marketing
Undifferentiated marketing is a sales-growth strategy which ignores the differences between the segments and develops instead a single marketing mix for the entire market (Jobber,2010; Louis E Bonne & David L Kurtz, 2011 ). Differentiated marketing is a sales growth strategy which is developed when the market segmentation shows several potential targets and such strategy is then developed to appeal to some or all of the segments. (Jobber, 2010; Havaldar, 2010) Unlike undifferentiated marketing there is a disadvantage of the differentiated marketing which is the loss of economic cost but the use of flexible manufacturing systems man minimize such problems (Jobber,2010). Focused marketing is a growth strategy and means that companies are developing a marketing mix that aims at one target market. The main idea of focused marketing is that companies should focus their efforts on the relatively small proportion of customers who account for a disproportionate share of the sales of a product. This strategy is most appropriate for companies with limited resources (Jobber, 2010). Customized marketing means that companies are trying to adapt the product or the service messages to the unique needs of the customer. This type of marketing is often related to companies have a very close relationship with their customers and that these customers can be extremely wealthy (Jobber, 2010).
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2.2.2.3 POSITIONING
According to Jobber (2010) positioning is the process by which companies create and try to maintain a clear image or identity their target market for their products, services, brand or the organization itself. A successful positioning is often associated with products and services which have a good impression among customers (ibid). Ries and Trout (2001) indicate that companies position their product in the mind of the potential prospect. Companies which are successful in their target market have different advantage compared to their competitors with providing customer with special advantages. Jobber (2010) states that successful positioning is mostly connected with products processing positive associations to its customers. Such positioning is generally difficult to achieve and relies on four factors, the 4´Cs (ibid). Arora (2006) argues that knowing what consumers prefer is essential for positioning. Fuchs and Diamantopolous (2010) state that the aim of positioning is to find the highest utility for the most profitable customer segment or to differentiate itself from the competitors.
Clarity
Credibility
Successful positioning
Consistency
Figure 2.2 Market Segmentation Andersson & Malinova 2012
Competitiveness
Clarity: Jobber (2010) states that the positioning idea must be clear about the target market and the differential advantage as complicated positioning statements are difficult and not likely to be remembered. Consistency: Everyday people are met by some form of advertising with a message and to be different and be remembered by customers, companies need to create consistent messages Jobber, 2010). Credibility: The differential benefit which is chosen must be credible with the target customer (Jobber, 2010). Competitiveness: According to Jobber (2010) the differential benefit should have a competitive advantage which should offer something of value to the customer that competitors cannot.
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2.2.3 THE WHERE
Thorne (2011) states that the third decision is to decide WHERE the customers will use the products. By knowing where they will use the product the company can determine where it will fit in best, for example on the desk or in the kitchen. Carlton and Blaise (2004) say that the companies should be aware of where the customers will mainly be using the product and by that give the company advantage on the market. According to Pennington (2002), the successful selection of promotional products depends on how high their value is for the customers. Products can be necessary, convenient or luxurious. Therefore is the selection of right promotional products essential to getting the most effective impact on customers as possible (Pennington, 2002). Carlton and Blaise (2004) give an example in their study of the product value of the customer itself. " Four wheel drive, luxury vehicle owners may ski or hunt, wear top of the line clothing, expect to travel in comfort and style, and want to look good while doing so" (Carlton & Blaise, 2004, p.55). So why not give the customers a "good" sports bag with the company logo when he or she buys a £100.000 vehicle? Since promotional products reflect the company´s image it is therefore important for the companies to choose products based on what the consumers consider as a good product (Carlton &Blaise, 2004). Additionally, Pennington (2002) says that regardless the choice of product is mainly based on functional or appealing depends on the determined value of the product on the situation of the advertising and the goal of it. When promotional products are used as a way for the company to advertise itself, the functional value should be balanced with the attractive value. By combining these two factors companies may satisfy both those who want functional product that are useful for them as well as those who just want an appealing product with an attractive design (ibid). According to Thorne (2011) to work with people in the trade markets and not to give them a good promotional item that they have used to is just waste of money. They will not appreciate it. The problem is that the good promotional products are expensive and getting appropriate products is tough. Thorne (2011) gives two examples to consider when analyzing the customers values. Firstly, is to dig deeper and try to find out more about the markets values and activities. Secondly, is to help them in their job environment by doing their jobs cheaper, better and faster by for example giving them a free coffee coupon or to fill up their gas tank (ibid). Pennington (2002) argues that when companies give away promotional products their customers should not see the company as a giver of things but as a giver of quality and value. Such product that reflects these characteristics invites the customer into establishing a relationship with the company (ibid). Pennington (2002) says that the value of the product is often related to its functional category. Necessary products have a minimum value and luxury products have the greatest value. The reason for this is that the necessary products are widely available and because lack tends to increase the value, the available products have less value than the less available (ibid).
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2.2.4 THE WHAT
When companies find out WHY they are going to use promotional products, WHO they are going to target and WHERE the customers are going to use the products they need to know WHAT promotional products they are going to use to promote themselves with. Two major studies have addressed this issue. First, in 2005 the PPAI (Promotional Product Association International) made a study based on 839 American business people. The study showed that companies spend more than £18 billion on promotional products in only the United States. 95 per cent of this survey says that they use promotional products in promoting their businesses (Carson, 2009). The study displays the top ten bestselling individual promotional products; 1. 2. 3. 4. 5. Pens Mugs and cups Golf and polo shirts T-shirts Caps and hats 6. 7. 8. 9. 10. Calendars Jackets Key tags and rings Tote bags Mouse pads
Second, Carlton and Blaise (2004) display a survey which was also made in the U.S to find out which products that are the most popular. Carlton and Blaise (2004) argue that there are over 650 000 promotional products offered by promotional products suppliers and the 11 topselling are: 1. Wearable's 29,3 % 2. Writing instrument 10.6% 3. Desk/office/business accessories 7,6% 4. Calendars 7.0% 5. Bags 5,9% 6. Glassware/ceramics 5,5% 7. Recognition awards /watches & clocks 4.0% 8. Magnets/buttons/badges/ribbon/stic kers 3.5% 9. Automotive accessories 3.5% 10. Sporting goods/leisure products/travel acc. 3.3% 11. Computer Products 3.1%
Beyond this list, it is a central to understand that a couple of products are no longer as useful now as they were before. Thorne (2011) argues that for example mouse pads are still useful but as the technology continues to develop fast and as the mobile computing is rapidly growing into a dominant market position, people are using desktop computers less which contributes to that the mouse pads are not used as much any longer. Technology is developing rapidly and therefore is the USB drive probably one of the greatest promotional products to use for companies nowadays. USB is environment-friendly if they are made of recycled materials and they also eliminate the need of distribution of paper (ibid). Thorne (2011) also states that magnets are becoming less useful because we have less metallic surfaces on which to place them. It is time to think about other materials that can replace the metal magnet which can be attached to other surfaces also. Finally, T-shirts are perhaps one of
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those promotional products which will not disappear soon. T-shirts are one of the few products that are always needed and can be used anytime (ibid).
2.3 HYPOTHESIS Based on the presentation of our theoretical review, four hypotheses are developed.
2.3.1 HYPOTHESIS 1
The WHY theory has indicated that by handing out promotional products the company´s name and brand recognition increases which also increases customers response rate and therefore we want to test the following hypothesis in order to test whether customers positively relate the promotional they have received to the company. Hypothesis 1: People who have received a promotional product positively relate the product to the company.
2.3.2 HYPOTHESIS 2
Grounded on the previous theory, the WHO, segmentation of customers with similar characteristics that helps companies to choose which segment they want to target and which promotional product is fits this target market best. Based on this theory we have developed the following hypothesis: Hypothesis 2: Customers within the same target market want the same promotional products.
2.3.3 HYPOTHESIS 3
Based on the WHERE theory, the value of the promotional product has usually a high impact on how often the product will be used by the customer. In order to fulfill those values, the companies need to have in mind where those products will be used. We want to examine whether necessary products such as computer bag, calculator, pen, calendar and towel are most often used at the workplace. Hypothesis 3: Students and workers want necessary products for their workplace.
2.3.4 HYPOTHESIS 4
The WHAT theory has shown that writing instruments are the top bestselling promotional products and also that they have a high value when it comes to what companies prefer to use as promotional products. Therefore we have decided to test the following hypothesis to see whether the respondents also think that the writing instruments are the best promotional products. Hypothesis 4: The respondents prefer pens over all other promotional products in diverse industries
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3. METHODOLOGY AND METHOD
In this chapter we give the reader an overall understanding of how we proceeded to collect the data, which research methods we have used, and also argue why we have chosen to use those methods. Furthermore, we explain the design of the questionnaire and how we proceeded to get our questionnaire to reach as many respondents as possible. Finally, we discuss the non-response of the survey.
3.1 POSITIVISM OR HERMANEUTIC Two scientific approaches of how we can understand and know something about reality are: positivism and hermeneutic:
Positivism has its roots in science which means that the ambition is to create a secure "positive" knowledge of a research (Thurén, 2007). It is a science theory with an ontological vision that the world can be described by legislation and laws. Positivism can gather data about an objective reality and it can be studied with objective methods and measurements (Jacobsen, 2002). Jacobsen (2002) states that positivism focuses on quantitative method which is a way to collect information through numbers. It has a strong emphasis on deductive approaches which means that the researcher goes from theory to empirics and is mostly used in quantitative studies. Positivism has also a theory of knowledge that the research would be cumulative. Cumulative means that the research is built on previous studies. The research is also always looking for a relationship between cause and effect known as causal explanations/ causal relationships (ibid). The person who uses positivism as an approach examines things, but has always in mind that it is possible that the results could be wrong (Thurén, 2007). A positivism examination should be performed and described in numbers (Jacobsen, 2002). Jacobsen (2002) explains that hermeneutic could be seen as an opposite of positivism in the sense of trying to understand the reality. The knowledge theory of hermeneutic is that the research should be unique and peculiar. Humans have constructed reality and it must be studied and examined how people perceive reality. Hermeneutic focuses on qualitative data and has a strong emphasis on inductive approaches. A hermeneutic examination should be performed and described in words, qualitative research (ibid).
3.1.1 RESEARCH APPROACH
According to Jacobsen (2002) methodology is used to give a description of the so called reality which we are living in. Methodology is also used as a tool to collect empirical data. Empirical data can also be called "data about reality" and it can be reflected back to ontology. Ontology is a science of how the world actually looks like (ibid). Choosing the right method is of great importance for our study because it says how we are going to collect data about the reality and according to Jacobsen (2002), there are two different approaches to choose from; inductive and deductive approach. Therefore, we decided to work with the deductive approach. As mention in the previous section the deductive approach means that the researcher goes from theory to empirics and is mostly used in quantitative studies. Unlike the inductive approach in the deductive the
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researcher has already gained some expectations about reality, and he or she collects empirical evidence to see if those expectations are in compliance with reality. These expectations are based on previous empirical research and previous theories (Jacobsen, 2002). When the researcher uses inductive approach he/she is working from empiricism to theory. The researcher has absolutely no expectations about reality and collects all relevant data. After the researcher has collected the data, he or she systematizes the data and then formulates the theories. The purpose of the inductive approach is that nothing will limit what and how much information the researcher collects. The inductive approach is mostly used in qualitative studies because this method is more open to new information (Jacobsen, 2002).
3.1.2 INTENSIVE OR EXTENSIVE
There are two different approaches that can be used when the issue is clearly defined. These two are intensive approach and extensive approach. According to Jacobsen (2002) intensive approach means that the study will go in depth with a problem and try to show as many conditions as possible in one or more cases. The purpose of such an intensive study is to obtain a picture that is as complete as possible of a situation, an event or a phenomenon. Intensive approach is a good opportunity to collect relevant data, but an impossible way to generalize to a larger population. Such a study is also very costly because it takes time to collect data and it requires enormous amount of analytical work. Intensive approach is most likely to be used when a qualitative research is done and therefore we consider the most appropriate and relevant approach to be the extensive approach (ibid). Jacobsen (2002) states that the extensive approach is broad and examines many units, but does not grasp so many variables. Such a study allows generalization, but it can be shallow as the data becomes less relevant. The extensive approach can see how a phenomenon occurs in different contexts. Extensive approach also obtains an exact description of the phenomenon´s scope and different relationships between the phenomenon and other variables. To carry out such a research of many devices, increases the likelihood that they may produce results which can be generalized to the entire population (ibid). We want to conduct a survey on a small segment and to generalize the results to a larger population. Therefore, an extensive approach suits our research better. It examines the differences and similarities between several units, and is therefore suitable if we want to identify the relationship between different conditions. An important connection for intensive and extensive approach is qualitative and quantitative method which will be explained in the section below.
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3.1.3 QUALITATIVE OR QUANTITATIVE
Qualitative method is a method to collect information in terms of words. It is a data-gathering technique which focuses on understanding of social phenomena in their natural environment (Thomas, 2003). Qualitative research involves studying and collecting empirical material through such as case studies, life stories, interviews or observations (Denzin & Lincoln, 1994). The information which is collected is often written down in notes or recorded. The qualitative collection of information is almost always intense and goes in depth with a few units (Jacobsen, 2002). Qualitative research is often used when researchers have a little knowledge about on the topic or when there is a problem which needs to be explored in detail (Liamputtong, 2009). Nevertheless, we have chosen to use quantitative method in our thesis which is a way of collecting information through numbers (Jacobsen, 2002). Jacobsen (2002) states that quantitative method is used when the researcher has good knowledge about the subject, when he or she is testing theories and hypothesis. The quantitative research goes in line with the deductive approach which means that we already have some expectations about the reality which we want to test in order to see if those expectations are consistent with the reality (ibid). Thomas (2003) argues that quantitative research differs from qualitative research in that the quantitative seeks general descriptions or tests casual hypothesis. It searches measurements, and analyzes which can be easily replaced by other researchers. Jacobsen (2002) says that the quantitative collection of information is used when the researcher wants to know a little about several units. The quantitative collection of information is in compliance with the extensive approach which the same as the quantitative research is broad and examines many units (ibid). Jacobsen (2002) also states that unlike qualitative method which is used when the researcher want to know what a phenomenon contains, the quantitative method is rather used when we want to know how often a phenomenon occurs. The collection of the quantitative data is done by developing and designing questionnaires with given answer options. They are usually in the form of postal questionnaires or telephone interviews (ibid). Jacobsen (2002) argues that the quantitative approach has the advantage that we can reach numerous respondents to get a good selection of people and it is easier for us to generalize the people we are interested in. We can also describe a relationship relatively exact. It is easier to structure the information which we collect and it is also easier to keep distance from the people we investigate so our investigation becomes impersonal as the respondents are not affected in the same way as they do in a qualitative research (Jacobsen, 2002).
3.1.4 COLLECTION OF DATA
In order to collect the information which is needed for such analytical dissertation, two different types of data can be used; primary data and secondary data. Primary data is data that is collected through interviews, observations or questionnaires. The researcher collects the research data for the first time from the information sources he or she uses. (Jacobsen 2002)
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According to Jacobsen (2002) secondary data is not collected by the researcher himself/ herself from the very source but it is data collected by other researchers for other purposes. Such secondary data can be marketing reports, statistics, financial statements etc. Jacobsen (2002) also argues that secondary data cannot always be relied on and before using this data, the researcher must always lay down great emphasis on how credible the sources are, where the data is collected from and who collected it.
3.1.4.1 THE SELECTION AND COLLECTION OF SECONDARY DATA
The collection of secondary data was found by studying general information on promotional products in books and articles in our university library at University of Westminster. By studying the existing literature, we found that there is a lack of books and articles which dealt specifically with promotional products. Yet we managed to find some keywords which facilitated our search for data that was relevant to our research. Some of those keywords are; promotional products, promotional items, promotional gifts, product advertising, promotion, promotion methods and swag. With the help of those keywords, we were able to find journals and articles in databases such as Emerald, Jstor and Taylor and Francis Online. During the collection of secondary data, we kept in mind Jacobsen´s (2002) advice which was to make sure to collect information with a given author and that the information was relevant to our research. We were also careful with not trusting only one source so we have validated our findings by testing them against other sources.
3.1.4.2 THE SELECTION AND COLLECTION OF PRIMARY DATA
The primary data that was collected, was in form of an online-questionnaire. As we mentioned earlier in our thesis, according to Jacobsen (2002), by using quantitative research we can reach a large scale of respondents in order to get a good selection of people. Therefore, the reason why we chose to conduct an online-questionnaire was because we believe that it is the easiest way to reach as many potential customers as possible. We also believe that we had a bigger chance of collecting more data through an online-questionnaire. Making such questionnaire made us more comprehensible of how customers think. Jacobsen (2002) says that it is important to avoid technical terms which not everyone understands or which could force the respondent to think for unnecessarily long time. Therefore, we made the questionnaire queries easy and understandable for everybody so they easily could follow our idea and also that no misunderstanding could occur. According to Jacobsen (2002) it is costly to send out postal surveys because a questionnaire for every respondent needs to be printed out. Therefore, we consider our study price-cheap with the motive that we do not need to print out a questionnaire for every respondent and also that larger scale of people could be reached. We posted the questionnaire to our friends on Facebook, Twitter, Skype and Hotmail as the intention is to identify potential customers for the future and we have mostly young people as friends on those social networks. The reason for not choosing any other methods for sending out the questionnaire was because the method
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we chose reaches the respondents instantly and is very time-saving compared to postal surveys and visit or telephone interviews. When we collected the primary data through the online-questionnaire we gave the respondent some preference around a given formulation. We began with an introduction of our research and the aim of it. Jacobsen (2002) claims that many people refuse to answer the questions because they fear that their answers will be linked to them personally and therefore it is very important to guarantee the respondent full immunity. Therefore, we made it clear to our participants that they are guaranteed full anonymity. We pointed out how the information they provide is an important basis for our investigation and also thank them for taking time to participate in our survey (Wärneryd, 1993). We had subsequently a 1:5 and 1:7 scale categories as well as "Yes" and "No" questions with open follow up questions which provided us with better results as well as better prognosis. We have used a 1:11 scale categories where we wanted to see where promotional products are mostly used, included "other" choice. On the questions about which promotional products were the best overall and used by certain industries we had list of 20 promotional items and other. The answer choices were both ranked and categorized (Wärneryd, 1993).
3.1.5 THE CREDIBILITY OF THE RESEARCH
Jacobsen (2002) states that the survey is used as a method to collect empirical data. Such empirical data should meet two important requirements which have an effect to minimize problem in the survey.
3.1.5.1 RELIABILITY
According to Jacobsen (2002) reliability means that the survey must be able to rely on. It must also be conducted in a credible way, a way which arouses trust. If we do the same research over and over again and we receive the same results then we know that it has high reliability (Jacobsen, 2002). When we made the survey we tried to keep the language easy to understand, we were also being careful to not use misleading questions in our investigation to mislead the respondents in a certain way. Jacobsen (2002) argues that it is important to test the questionnaire before sending it out. Hence, to be sure that the questionnaire met these requirements, we conducted the questionnaire on a small test group of eight people in order to see if they understood the questions and their implications. Simpler English words would help the respondents which had limited vocabulary of the English language to understand the questions better so that the questionnaire would not become misleading. We were also being careful not to use misleading questions in our questionnaire in order not to mislead the respondents in a certain way. To mislead the respondents can lead to specific response which can lead to errors in the results (Jacobsen, 2002).
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3.1.5.2 VALIDITY
According to Jacobsen (2002) validity is used to determine whether the obtained results meet the requirements of the scientific research. Often can results received from a small study based on smaller segments be transferable to bigger groups of interest such as population (ibid). We believe that the validity of our study increased since we did an online survey where our participants could do the survey whenever they had time for it, without feeling pressured or stressed. Compared to a personal interview when a qualitative research is applied where the interviewee can feel stressed because he does not have enough time to think through his/hers response which can lead to a decrease of the validity. Since we are writing this dissertation on distance to Halmstad University, Sweden, from the University of Westminster, United Kingdom our survey will consist of Swedes, other Europeans and people from outside Europe. We are aware of this and it can mean that it will be some distortions of culture and results. Dolnicar and Grün (2007) indicate that the fact that the respondents are from different cultural backgrounds could distort results and cause misinterpretations of the data. A reason for this result could be that cultural values which influence the answer patterns are not the same among the respondents (ibid).
3.1.6 MOTIVES FOR THE CHOICE OF METHODOLOGY
Because we based the study on previous theory we are going to use quantitative research when we go through with our study. Jacobsen (2002) indicates that we should use quantitative research when many units are being investigated in order to draw conclusion about a larger population. We are interested in a more broad area of collecting information and we therefore think that this sort of research suits us best. During our research we have noticed that there is a slight study of quantitative researches on the promotional products. We are interested to ask a broader area of people what they think about promotional products. We will use both primary and secondary data in our research process which is needed for us to be able to find answers to our gap in this study. We will be critical and carful with the secondary data that we use to avoid that our study will be based on misunderstandings.
3.1.7 CRITICAL REVIEW OF THE CHOSEN METHODOLOGY
Jacobsen (2002) argues that the weakness of using a quantitative approach towards using qualitative is that the questionnaire in most ways has solid answers. The quantitative approach consists of numbers with answers given by the responses. The qualitative method consist of words and it works from an open discussion between the investigator and there respondent. This makes the qualitative method more open than the quantitative (ibid). According to Jacobsen (2002) the advantage with the qualitative method is that the researcher can go more into details with the respondent. The investigator works close with the respondent and has the change to go "under the skin" of the respondent to understand a phenomenon or a situation better. It makes the qualitative approach more flexible and it gets a chance to change the problem and data collection method investigation under the time. Quantitative method is relatively closed compared to the qualitative. It does not go in depth with the problem but is broad and examines many units and gives us at the same time a more exact answer of the problem (ibid).
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3.1.8 METHOD TO ANALYZE
1. Research subject
2.Slight litterature study
3. Problem statement
4. Deeper litterature study
8. Representation of the data
7. Collection of data
6. Design of questionnaire
5. Formulation of theories
9. Analysis
10. Conclusion
11. Recommendations
Figure 3.1 Model of method to analyze Andersson & Malinova, 2012 1. The process started with a discussion on areas we thought were interesting to work with and if we could find that something was not discovered yet. 2. We selected a topic and started to look for purpose and problems, through a broad literature. 3. When the problem was discovered, the structure of our process changed. 4. In order to assess the theoretical framework, a deeper study of the subject was made. 5. The literature that was collected was designed to determine which theories were needed for the theoretical framework. 6. We were able to design the questions based on the theoretical framework we had collected. A pre-questionnaire did it possible to get feedback on our chosen questions. 7. The questionnaires were sent to the respondents via Facebook, Twitter, Skype and Hotmail. 8. The data was summarized in excel and SPSS to get a better overview of the necessary charts and graphs in the survey. 9. The analysis was determined by the weaknesses and the strengths of the theoretical findings and what the questionnaire states. 10. The conclusion concludes the results of the analysis. 11. Recommendations were given for further research.
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3.2 METHOD In this section we describe the structure of the survey and the design of the questions, the answer choices, and the test group.
3.2.1 DESIGN OF QUESTIONNAIRE
As we mentioned earlier in the methodology chapter we have chosen to conduct a quantitative research which means that we can conduct the survey through a questionnaire to collect the primary data. According to Jacobsen (2002), there are both positive and negative aspects of the use of a questionnaire. A positive aspect is that we can reach a wider range of respondents and thereby acquire as many consumer opinions as possible about promotional products. One negative aspect which Jacobsen (2002) describes is that respondents will be affected by how the questionnaire is conducted and there are risks that relevant information can be lost because it was not asked in the questionnaire, which we could have done if we made a qualitative research (ibid). As we have mentioned earlier, we believe that the validity of our study increased as we conduct an online survey, in that way we give our respondents more time to think through their answers without feeling stressed or pressured. Jacobsen (2002) indicates that the design of the questionnaire must be very well thought through to be able get as good results as possible. Jacobsen (2002) also says that when designing a questionnaire it is important that the questionnaire is not too long, the shorter the better and the questions must be easy to understand. Many and long questions will only tire out the respondent which may result in that the respondent does not complete the questionnaire. To get the best results possible, we have taken all these facts in consideration (ibid). After careful deliberation and evaluation of different survey websites we chose to go with www.freeonlinesurveys.com for our research questionnaire. We paid a small amount of money to use the site and its extra features like for example, to be able to have more than 50 respondents. Our survey consisted of 16 questions which were made by 205 respondents. The final version of the questionnaire is to be found in appendix 1.
3.2.2 CHOICE OF QUESTIONS
According to Jacobsen (2002) whatever research questions the researcher chooses between, there are some rules to remember before configuring those questions. To formulate the questions is of great importance to create the questionnaire, which will be significant to establish and analyze of the result (ibid). Our questions have been established to strive simplicity by using easy English language and by having short questions and termini sentences. To determine whether the questionnaire was relevant to our research a pre-survey was done. We chose to have eight individuals who tested our investigation based on our theories. The pre-survey study made it possible for us to change the questionnaire so the survey would be more relevant to the theories we had.
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The questionnaire was designed to have "harmless" questions in the beginning and sensitive questions in the end of the survey where we dealt with sensitive areas such as asking about age, gender, country and occupation. We have also designed the questions to be neutral to reduce any leading directions of the respondents. Although some questions are considered as leading answers such yes, no and I do not know. In order not to mislead the respondent completely we chose to have a middle class i.e. I do not know as a middle choice for the respondent to not force him or her to just choose a question (Jacobsen, 2002). The questionnaire began with general questions concerning if the respondents have received, are using and why they think that they received a promotional product as well as questions as if they remember the company that gave them the promotional product. The second part considered what type of product they choose between and where they believe it is most useful. The third part considered sensitive questions such as age, gender, occupation and country.
3.2.3 RESPONSE OPTIONS
Jacobsen (2002) argues that the questions in the survey must be designed as accurately as possible to avoid issues to provide undesirable results. To minimize the impact of undesired results we have used one open question. Jacobsen (2002) says that the open questions should be used when the investigator does not have an overview of all possible options, which is the case here. The open question may also have a backside and can be the biggest cause to a blank answer. Due to the fact that the respondents do not have the right knowledge or it may be so that they do not care enough about the survey to give a relevant answer (ibid). However open questions may also make it difficult for the researcher if he/she receives many different answers. That is why we chose just to analyze a few of our answers of the open question. Wärneryd (1993) argues that in order to achieve the best results possible it is best to use a 1:7or 1:11 response scale. We have on two occasions used a 1:7 or 1:11 scale when we could cover the most of the interrogation area with it. However we chose to not use any of these scales when we wanted answers on what promotional product that suit the respondents' best in respective industry. We felt that it would limit our response options too much and that our survey would not be as broad if we used 1:7 or 1:11 responses. To vary the size of our options we also felt that we could generalize better than only using a scale of 1:7 or 1:11. The respondents had the choice to choose between maximum three options on promotional products which suited them best in general and in different industries. We chose to have 20 options on products respondents could choose from as well as other if they did not like the alternatives and not to force the respondents to select an option they did not like.
3.2.4 TEST GROUP
Jacobsen (2002) states that the only way to really find out whether the questionnaire is fully understandable and properly structured is to test it against a small group. Performing such a test could be of great importance because it reduces the risk of getting answers which are unusable. Jacobsen (2002) recommends testing the questionnaire on four to six respondents. Therefore, in order to obtain as high validity as possible, we chose to test our questionnaire on
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eight respondents. After all eight respondents completed the questionnaire; they were encouraged to identify errors and other confusions such as punctuations, spelling mistakes and other aspects that we could improve. Considering that English is not our mother tongue, we had obviously some punctuation and spelling mistakes which we later corrected. In general, the respondents found that the questionnaire was easy to understand and also very interesting.
3.2.5 THE RESEARCH PROCESS
In order to reach as many people as possible, we used several social networks such as Facebook, Twitter, Skype and Hotmail, to send out our questionnaire. We considered that using those social networks was the easiest way for us to reach as many people as possible. In order to do so, we took the help from our closest friends in order to help us promote the survey. The survey was conducted by 205 people. All respondents were anonymous throughout the process.
3.2.6 INTEPRETIVE TOOLS
For the purpose of interpreting the collected data we used software tools such as Excel and SPSS. Excel is a software which helps create, edit and analyze data which is organized in lists and tables (MacDonald, 2010). SPSS (Statistical Package for the Social Sciences) is a software which manages and carries out basic statistical analysis (Wagner, 2009). To begin with, we interpreted the collected data in SPSS. Later were graphs and charts made in Excel from the collected and interpreted data. We also tested our hypotheses in SPSS were we inter alia used the Chi-square test. Chi-square test is usually used with discontinuous data involving counts of individuals or units divided into mutually exclusive categories (Nesbitt, 2008). Some of the analyses of our hypotheses were then were made again in SPSS, in form of tables, as it was easier to interpret the data.
3.2.7 RESPONSE RATE
Of these, 205 who conducted the questionnaire, it was 188 or 91.7% who completed the entire questionnaire. The major reason that 17 or 8.3% of the respondents did not complete the entire survey could be that we used overlapping systems, where the respondents who answered "No" to the first question had to jump directly to the sixth question, the reason of that was that the following questions were not relevant to them. Another possibility could also be that the non-responding respondents did not feel that they had time to answer the questions properly or that they did not have any interest to answer the questions. Yet another reason could be that the respondents' lack knowledge of the subject or that they did not understand the question so they left it unanswered.
3.2.8 SAMPLING METHOD
We used the random sampling method where each member of the population had equal chance to be selected (Jacobsen, 2002). Jacobsen (2002) argues in one of his rules of how a large sample should be that a range between 400-600 units is sufficient to achieve good precision, and to process the information in a good way. And since Jacobsen (2002) also states that a selection of less than 100 units complicates the analysis of information simultaneously as errors increases. We consider a range of 150-250 to be sufficient to ensure
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the reliability of the results. The number of our sample was 205 respondents, which was within the limits of what we expected.
3.2.8.1 SAMPLING MATERIAL
Of all respondents in Q13, 64,2% (124) were from Sweden, 18,1% (35) were from outside Europe and 17,6 (34) were from other European country.
Q13: What Country
Sweden 18,1% 17,6% 64,2% Other European country Outside Europe
Q15: Occupation
1,5% 3,1% Worker 28,1% Student Unemployed Other
67,3%
Pie Chart 3.1 Country Andersson & Malinova 2012
Pie Chart 3.2 Occupation Andersson & Malinova 2012
Q14, Q15 and Q16 were about the respondents' age, occupation and gender. The respondents age group was a range from 16- 64, where 80% (156) of those who completed the survey were between 16-24 years old. The majority of the respondents were students of 67,3% (132) followed by workers of 28,1% (55). The division between the genders was very equal with a slight advantage for the female gender with 50,3% (99) and 49,7% (98) with respondents of the male gender.
Q14: Age
5,1%
Q16: Gender
14,9%
16-24 25-44 80,0% 45-64 49,7% 50,3%
Male Female
Pie Chart 3.3 Age Andersson & Malinova 2012
Pie Chart 3.4 Gender Andersson & Malinova 2012
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4. EMPIRICAL MATERIAL
In the following section, we explain the questionnaire design, the choice of questions, the response options, and the testing of questionnaires followed by the result from the collected data in form of text and diagrams.
4.1 RESEARCH RESULTS AND STATISTICS This section displays the data results from the online questionnaire in form of graphs as an explanation over the answers and outcomes (see appendix 2).
4.1.1 GENERAL AND KNOWLEDGE BASED QUESTIONS
As we mentioned earlier, the questionnaire begins with general questions to test the respondents' actual conditions of receiving and using of promotional products. All of the 205 respondents answered the two first questions in the questionnaire. In Q1, 93,9 % (184) of the people answered that they have received a promotional product from a company. 5,1% (10) had never received a promotional product before and only 1,0% (2) of the respondents did not remember. Furthermore, in Q2, 41,5% (78) of those who have received a promotional product said that they use it rarely, while 39,4% (74) use it often and 16,0% (30) use it every day.
Q1: Have you ever received a promotional product from a company?
Yes No Do not remember 0% 5,1% 1,0% 20% 40% Do not remember 60% Yes 80% 100% 93,9%
No
Diagram 4.1 Receiving promotional products Andersson & Malinova 2012
Q2. Are you using the promotional product that you received?
41,50% 39,40% 16,00% 3,20% 0 0 0,05 0,1 Other 0,15 Never 0,2 0,25 Yes,in everyday lfe 0,3 Often 0,35 Rarely 0,4 0,45
Diagram 4.2 Use of promotional product Andersson & Malinova 2012
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Q3, Q4 and Q5 were constructed in order to measure the knowledge of the respondents based on promotional products. When we asked the respondents in Q3 why they think that they received a promotional item in, 76,6% (144) answered because they thought companies wanted to promote their business. Additionally, in Q4, 74,5% (140) of the respondents remembered which company gave it to them. Q3: Why do you think that you received a promotional product?
76,6% 8,5% 6,9% 3,2% 2,1% 1,6% 1,1% 0,0% 10,0% 20,0% 30,0% Other To promote an upcoming event To encourage a purchase To promote their business 40,0% 50,0% 60,0% 70,0% 80,0% 90,0% To promote an existing product To introduce a new product As a "thank you" for making a purchase
Diagram 4.3 Reason Andersson & Malinova 2012
Q4: Do you remember which company you received it from?
Yes 74,5%
No
25,5%
0,00%
10,00%
20,00%
30,00%
40,00% No Yes
50,00%
60,00%
70,00%
80,00%
Diagram 4.4 Remember the company Andersson & Malinova 2012
Q5 was designed as a follow-up question for those who answered "NO" to Q4. The reason for this was because we wanted to know why they did not remember which company it was that gave them the promotional product. Some of the respondents said that it was a long time ago they received the product, they have received products from too many companies and they do not remember the names of all of them, the company did not interest them or that the gift was insignificant.
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4.1.2 ETHICAL QUESTIONS
Q6 to Q12 have measured the respondents' feelings, attitudes and opinions on various conditions and what they think of the phenomenon. 41,0% (80) of the respondents in Q6 said they would prefer to receive a necessary promotional product and only 12,3% wanted to get an attractively designed product from a company. Q6: What type of promotional product would you prefer?
41,0% 27,2% 16,9% 12,3% 2,6% 0,0% 5,0% 10,0% 15,0% Other A luxury product A necessary product 20,0% 25,0% 30,0% 35,0% 40,0% A attractively designed product A convinient product 45,0%
Diagram 4.5 Preference Andersson & Malinova 2012
When we asked the respondents in Q7 where it would be most beneficial for them to use a promotional product, 33,0% (64) of them said the office would be the most beneficial place and 25,3% (49) would want a product which they could use in school.
Q7: Where would it be the most beneficial for you to use a promotional product?
33% 25,3% 12,4% 6,7% 4,6% 4,6% 4,6% 4,1% 3,6% 1 % 0 % 0% 5% In the garden In the badthroom Other 10% 15% 20% In the garage In the livingroom In the kitchen Diagram 4.6 Beneficial Andersson & Malinova 2012 25% 30% 35% In the bedroom In the car For exercising/doing sports
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In Q8, 16,0 % (99) of the respondents said that they would like to receive a USB from a general industry and 13,1% (81) of them would like to receive a Pen. The least popular product was the Cap which only 1,0% (6) of the respondents could consider receiving.
Q8: Which of the following promotional items would you like receive from a company?
16% 13,1% 7,1% 6,9% 6 % 5,5% 5,5% 5,5% 5 % 3,7% 3,6% 3,6% 3,4% 2,7% 2,4% 2,3% 2,1% 1,9% 1,5% 1,3% 1 % 0% 2% Cap pack golf Jewlery Water bottle USB 4% Other Wallet Jacket T-shirt 6% 8% 10% Alarm clock Tote bag Mug Computer bag 12% 14% Key chain Watch Calendar Umbrella 16% 18% Mouse pad 6 Calculator Towel Pen
Diagram 4.7 General Industry Andersson & Malinova 2012
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17,5% (99) of the respondents would prefer to receive a T-shirt as a promotional product from a CLOTHING & ACCESSOERIES company, whereas 13,2% (75) would like to receive a Jacket and according to 0,2% (1) respondent, the most unbeneficial product is a calculator.
Q9: Which of the following promotional items would you like to receive if it is a CLOTHING&ACCESSORIES company?
17,5% 13,2% 9,2% 9,2% 7,6% 5,6% 5,1% 5,1% 5,0% 4,8% 3,7% 3,4% 1,9% 1,9% 1,6% 1,2% 1,1% 1,1% 0,7% 0,7% 0,2% 0,0% 2,0% 4,0% 6,0% Mouse pad Key chain Computer bag Umbrella 8,0% 10,0% Mug Calendar USB Towel 12,0% 14,0% 16,0% 18,0% 20,0%
Calculator Other Cap Wallet T-shirt
Alarm clock Water bottle Tote bag Jewlery
6 pack golf balls Pen Watch Jacket
Diagram 4.8 Clothing & Accessories Industry Andersson & Malinova 2012
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In Q10, the most popular promotional products to receive from a HEALTH CARE company are Water Bottle 14,9% (78) and Towel which 13,2% (69) and the least attractive product was the Cap 0,6% (3).
Q10: Which of the following promotional items would you like to receive if it is a HEALTH CARE company?
14,9% 13,2% 12,8% 7,8% 7,6% 6,3% 5,0% 4,6% 4,4% 3,4% 2,9% 2,5% 2,3% 2,3% 2,1% 2,1% 1,7% 1,5% 1,1% 1 % 0,6% 0,0% 2,0% 4,0% Mouse pad Watch Tote bag Mug 6,0% 8,0% Wallet 6 golf balls T-shirt USB 10,0% 12,0% Jewlery Key chain Other Pen 14,0% 16,0%
Cap Alarm clock Jacket Calendar Water bottle
Calculator Computer bag Umbrella Towel
Diagram 4.9 Health Care Industry Andersson & Malinova 2012
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The most popular promotional product to receive from an ELECTRONICS company in Q11 is the USB 27,9% (153) followed by the Computer bag 13,8% (76) and the least popular is Jewelry 0,2% (1).
Q11: Which of the following promotional items would you like to receive if it is an ELECTRONICS company?
27,9% 13,8% 11,1% 9,3% 8,7% 6,2% 4,7% 2,4% 2,2% 2,0% 1,8% 1,5% 1,5% 1,3% 1,3% 1,3% 0,90% 0,7% 0,7% 0,5% 0,2% 0,0% 5,0% Jewlery 6 pack golf balls Towel Pen USB 10,0% Cap Jacket Key chain Alarm clock 15,0% Tote bag Other Water bottle Calculator 20,0% Wallet Calendar Umbrella Mouse pad 25,0% 30,0% T-shirt Mug Watch Computer bag
Diagram 4.10 Electronic Industry Andersson & Malinova 2012
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11,2% (59) of the respondents who completed the survey would like to receive a Key chain from an AUTOMOBILE company, again followed by the Pen with 11,0% (58) of the respondents. The least attractive promotional product to receive from an automobile company is the Calculator with 1,5% (8).
Q12:Which of the following promotional items would you like to receive if it is an AUTOMOBILE company?
11,2% 11,0% 8,0% 7,6% 6,9% 6,3% 5,7% 5,1% 4,4% 4,0% 3,8% 3,6% 3,4% 3,0% 2,9% 2,7% 2,7% 2,3% 1,9% 1,9% 1,5% 0,0% Calculator Mouse pad Jacket Umbrella Key chain 2,0% Jewlery Wallet Other Cap 4,0% 6,0% Tote bag Computer bag Water bottle T-shirt 8,0% 6 pack golf balls Calendar Towel USB 10,0% Alarm clock Watch Mug Pen 12,0%
Diagram 4.11 Automobile Industry Andersson & Malinova 2012
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5. ANALYSIS
In this chapter we analyze the collected data and test our hypotheses. The results will be explained with the help of the theories which are represented in the theoretical framework chapter and our own possible explanations. This procedure will apply to each hypothesis.
5.1 THE WHY Hypothesis 1: People who have received a promotional product positively relate the product to the company.
The table 5.1 below shows how many of the respondents who conducted the survey actually answered the two questions concerning the hypothesis. The table shows that 188 (91,7%) of the respondents answered those two questions, whereas 17 (8,3%) of the respondents did not answer those two questions.
Case Processing Summary Cases Valid N Have you ever received a promotional item from a company? * Do you remember which company you received it from? 188 Percent 91.7% N 17 Missing Percent 8.3% N 205 Total Percent 100.0%
Table 5.1 Response Rate Andersson & Malinova 2012
Carson (2009) argues that surrounding potential customers with promotional products increases the brand recognition for the company. From the table 5.2 below we can read that 138 from the respondents which answered that they have received a promotional product also remembered which company they received it from, whereas 46 of those who have received a promotional product do not remember which company they received it from.
Have you ever received a promotional item from a company? * Do you remember which company you received it from? Crosstabulation Count Do you remember which company you received it from? Yes No Have you ever received a promotional item from a company? Total Yes No (go to question 6) Do not remember 138 0 0 138 46 2 2 50
Total 184 2 2 188
Table 5.2 Answer Similarity Andersson & Malinova 2012
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Most important for our investigation is to focus on the Pearson Chi-Square in order to be able to read the relationship between the variables. In order to have a positive relationship between the two variables the Pearson Chi-Square value needs to be below 0,05 (Farell, 2011). We can read from the table below that our Pearson Chi-Square value is 0,038 which means that there is a positive relationship between our two variables.
Chi-Square Tests Value 6.546a 6.668 3.249 188 Df Asymp. Sig. (2sided) 2 .038 2 .036 1 .071
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases a.
4 cells (66.7%) have expected count less than 5. The minimum expected count is .51.
Table 5.3 Chi-Square Results Andersson & Malinova 2012
The first hypothesis was directed to see whether there is a positive relationship whether the respondents who received a promotional product also remembered which company they received it from. The results which were obtained are complied with Carson´s (2009) theory about costumers who receive a promotional product remember the company better and eventually make a purchase from it. The results show that there is a positive relationship between the respondents who received a promotional product and whether they remembered the company they received it from, but the results do not show whether these respondents have a positive or negative perception of the company. One reason why they can have a negative perception of the company may be that they were not satisfied with the product. Another reason could be as Thorne (2011) indicates that good promotional products can be expensive and instead of using the promotional product the customers may instead throw it in the garbage can. Another reason for this action may be that the promotional product might not have met their expectations, needs or wants.
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5.2 THE WHO Hypothesis 2: Customers within the same target market want the same promotional products.
When the survey was conducted the respondents were given the opportunity to choose three promotional products which they would most likely want to receive from a company. The table below (table 5.4) shows that USB, which received 99 votes, was most preferable by all ages.
Case Processing Summary Cases Valid N Age * Pen Age * Mug Age * Golfball Age * Tshirt Age * Cap Calendar Age * Keychain Age * Mousepad Age * USB Age * Totebag Age * Computerbag Age * Jewlery Age * Waterbottle Age * Jacket Age * Umbrella Age * Wallet Age * Alarmclock Age * Calculator Age * Watch Age * Other 81 30 14 37 62.9% 33 12 13 99 17 42 22 34 23 44 15 94.4% 34 22 21 83.9% Percent 39.5% 14.6% 6.8% 18.0% 199 16.1% 5.9% 6.3% 48.3% 8.3% 20.5% 10.7% 16.6% 11.2% 21.5% 7.3% 196 16.6% 10.7% 10.2% 197 N 124 175 191 168 97.1% 172 193 192 106 188 163 183 171 182 161 190 95.6% 171 183 184 96.1% Missing Percent 60.5% 85.4% 93.2% 82.0% 205 83.9% 94.1% 93.7% 51.7% 91.7% 79.5% 89.3% 83.4% 88.8% 78.5% 92.7% 205 83.4% 89.3% 89.8% 205 N Total Percent 205 100.0% 205 100.0% 205 100.0% 205 100.0% 100.0% Age * 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 100.0% Age * Towel 205 100.0% 205 100.0% 205 100.0% 100.0%
Table 5.4 Age Answer Andersson & Malinova 2012
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If we take a closer look on table 5.5, which shows the age groups more specifically, we can see that the ages between 16-24 gave 77 votes to the USB and the ages between 25-44 gave it 19 votes. We had on average, very low units on respondents between 45-64 and hence we cannot generalize as good. We can however see that this age group preferred the computer bag. The tables 5.5.1, 5.5.2 and 5.5.3 below we can see a more specific description of which promotional products the different age groups prefer.
AG E PROMOTIONAL PRODUCTS Pen Mug 0-15 16-24 67 29 14 T-shirt 37 Cap 5 4 1 1 3 1 3 13 USB 6Calendar 33 Key chain 77 33 5 30 3 35 11 1 3 2 1 1 4 9Towel 34 Calculator 22 Watch 21 8 26 83 93 19 11 54 1 31 2 72 15 29 17 19 25-44 11 1 31 45-64 3 30 Golf Ball 4 65TOTAL 81 14 2
12 Mouse Pad 99 Tote bag 15
17 Computer bag 42 Jewlery 16 22 Water bottle 34 Jacket 23 Umbrella 44 Wallet Alarm clock 8 2 3 1 Other 7 18
Table 5.5 Age Specific Answer Andersson & Malinova 2012
AGE 16-24 77 67 35 AGE 25-44 19 11 7
PROMOTIONAL PRODUCTS USB Pen Umbrella
PROMOTIONAL PRODUCTS USB Pen Umbrella
Table 5.5.1 Age Specific Answer Andersson & Malinova 2012
Table 5.5.2 Age Specific Answer Andersson & Malinova 2012 AGE 45-64 43 3 33
PROMOTIONAL PRODUCTS Computer bag USB Towel Calendar Pen
Table 5.5.3 Age Specific Answer Andersson & Malinova 2012
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Here in table 5.6 we can see that USB received the most votes as well, which was 99 votes once again. We can also see a similarity between females and males when it comes to choosing promotional products as we received nearly equal answers from both which were 50 females versus 49 males (table 5.7).
Case Processing Summary Cases Valid N Gender * Pen Gender * Mug Gender * Golfball Gender * Tshirt Gender * Cap Gender * Calendar Gender * Keychain Gender * Mousepad Gender * USB Gender * Totebag Gender * Computerbag Gender * Jewlery Gender * Waterbottle Gender * Jacket Gender * Umbrella Gender * Wallet Gender * Alarmclock Gender * Towel Gender * Calculator Gender * Watch Gender * Other 81 31 14 37 6 34 12 13 99 17 43 22 34 23 44 15 9 34 22 21 8 Percent 39,5% 15,1% 6,8% 18,0% 2,9% 16,6% 5,9% 6,3% 48,3% 8,3% 21,0% 10,7% 16,6% 11,2% 21,5% 7,3% 4,4% 16,6% 10,7% 10,2% 3,9% N 124 174 191 168 199 171 193 192 106 188 162 183 171 182 161 190 196 171 183 184 197 Missing Percent 60,5% 84,9% 93,2% 82,0% 97,1% 83,4% 94,1% 93,7% 51,7% 91,7% 79,0% 89,3% 83,4% 88,8% 78,5% 92,7% 95,6% 83,4% 89,3% 89,8% 96,1% N 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 Total Percent 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%
Table 5.6 Gender Answer Andersson & Malinova 2012
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Gender PROMOTIONAL PRODUCTS Pen Mug Golf Ball T-shirt Cap Calendar Key chain Mouse Pad US B Tote bag Computer bag Jewlery Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other FEMALE 43 14 2 13 1 20 5 3 50 15 23 19 20 12 26 6 6 16 11 9 2 MAL E 38 17 12 24 5 14 7 10 49 2 20 3 14 11 18 9 3 18 11 12 6 81 31 14 37 6 34 12 13 99 17 43 22 34 23 44 15 9 34 22 21 8 TOTAL
Table 5.7 Gender Specific Answer Andersson & Malinova 2012
The tables below (5.7.1 and 5.7.2) display a more specific description of the top three promotional products preferred by the female and the male gender.
GENDER FEMALE 50 43 26 GENDER MALE 49 38 24
PROMOTIONAL PRODUCTS USB Pen Umbrella
PROMOTIONAL PRODUCTS USB Pen T-shirt
Table 5.7.1 Gender Specific Answer Andersson & Malinova 2012
Table 5.7.2 Gender Specific Answer Andersson & Malinova 2012
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In the table (table 5.8) below we can once again see that the USB received the most votes, 99.
Case Processing Summary Cases Valid N Occupation * Pen Occupation * Mug Occupation * Golfball Occupation * Tshirt Occupation * Cap Occupation * Calendar Occupation * Keychain Occupation * Mousepad Occupation * USB Occupation * Totebag Occupation * Computerbag Occupation * Jewlery Occupation * Waterbottle Occupation * Jacket Occupation * Umbrella Occupation * Wallet Occupation * Alarmclock * Towel Occupation * Calculator Occupation * Watch Occupation * Other 81 31 14 37 62.9% 34 12 13 99 17 43 22 34 23 44 15 94.4% 34 22 21 83.9% Percent 39.5% 15.1% 6.8% 18.0% 199 16.6% 5.9% 6.3% 48.3% 8.3% 21.0% 10.7% 16.6% 11.2% 21.5% 7.3% 196 16.6% 10.7% 10.2% 197 N 124 174 191 168 97.1% 171 193 192 106 188 162 183 171 182 161 190 95.6% 171 183 184 96.1% Missing Percent 60.5% 84.9% 93.2% 82.0% 205 83.4% 94.1% 93.7% 51.7% 91.7% 79.0% 89.3% 83.4% 88.8% 78.5% 92.7% 205 83.4% 89.3% 89.8% 205 N Total Percent 205 100.0% 205 100.0% 205 100.0% 205 100.0% 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 100.0% Occupation 205 100.0% 205 100.0% 205 100.0% 100.0%
Table 5.8 Occupation Answer Andersson & Malinova 2012
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In table 5.9, which displays a more specified explanation of the occupation, we can see that USB received 22 votes from workers and 72 votes from students. In tables 5.9.1, 5.9.2, 5.9.3 and 5.9.4 we can more specifically see which top three promotional products the different target groups prefer.
PROMOTIONAL PRODUCTS Pen Mug Golf Ball Cap Calendar Key chain USB Tote bag bag Jewlery Jacket
WORKER 21 6 2 25 1 8 6 6 22 3 7 8 11 10 11 11 5 18 4 13 3
OCCUPATION STUDENT UNEMPLOYED 57 23 11 4 3 25 5 5 72 13 33 13 21 11 32 1 3 1 16 1 3
OTHER 3 1 14 T-shirt
TOTAL 81 31 8
1 1 37
Alarm clock
Other
1 1 1 1 1 1 1 2 1 15 1 1 2 2 1
2 6 1 34 12 Mouse Pad 1 13 4 99 17 Computer 2 43 22 Water bottle 1 34 23 Umbrella 44 Wallet 3 9Towel 14 34 Calculator 22 Watch 5 21 1 8
Table 5.9 Occupation Specific Answer Andersson & Malinova 2012
PROMOTIONAL PRODUCTS USB Pen Umbrella
OCCUPATION WORKER 22 21 14
PROMOTIONAL PRODUCTS USB Pen Computer bag
OCCUPATION STUDENT 72 57 33
Table 5.9.1 Occupation Specific Answer Andersson & Malinova 2012 OCCUPATION UNEMPLOYED 11 1 1 1 1 1 1
Table 5.9.2 Occupation Specific Answer Andersson & Malinova 2012 OCCUPATION OTHER 44 3
PROMOTIONAL PRODUCTS Mug Mouse pad USB Computer bag Water bottle Towel Watch Other
PROMOTIONAL PRODUCTS USB T-shirt Pen
Table 5.9.4 Occupation Specific Answer Andersson & Malinova 2012
Table 5.9.3 Occupation Specific Answer Andersson & Malinova 2012
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The relationship which can be seen when looking at the various target groups is that USB and pens are rated highly in all industries, which also according to this survey can be seen as the most attractive promotional products in our study. The study has also shown that a broad distribution of promotional products made by the respondents which makes it difficult to certify a correlation of this hypothesis. A possible explanation for our findings is as Thorne (2011) argues that technology is developing rapidly as well as people´s minds. It is very important for businesses to keep up with technology developments. The USB can also be seen as a relatively new product, unlike many other on the list this might be the reason why people choose USB and that they might be curious about this product and therefore this particular product might fulfill their expectations, needs or wants. Kotler and Armstrong (2008) argue that customers want and needs change with their age. USB was the most popular promotional product in our survey, it is perhaps because we had a majority age group between the ages of 16-24 and that these are more interested in technology than another age group than for example those who have an age of 25-44 or 45-64. If we have instead chosen to focus and specify on a particular group, for example to examine which promotional products women in the ages of 16-24 are interested in. We would probably have been able to get a more accurate picture of what this specific target group wants and thus be able to generalize better than as we now tested many target groups at once.
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5.3 THE WHERE Hypothesis 3: Students and workers want necessary products for their workplace.
In the table (table 5.10) below we can see how many of respondents who conducted the survey answered those two questions in our hypothesis. We can see that 193 (94,1%) of the respondents answered both questions, while 12 (5,9%) did not answer the questions.
Case Processing Summary Cases Valid N Where would it be the most beneficial for you to use a promotional product? * What type of promotional product would you prefer? 193 Percent 94.1% N 12 Missing Percent 5.9% N 205 Total Percent 100.0%
Table 5.10 Chi-Square Answer Andersson & Malinova 2012
As mentioned in paragraph 2.2.3 THE WHERE, companies need to know WHERE the customers will be using the product (Thorne, 2011), which will give them an advantage on the market (Carlton & Blaise, 2004). Table 5.11 shows that 33 (17,1%) of the 193 respondents think that a necessary product is most beneficial in the office. We can also see that using a necessary product in school has received second highest number of votes, which is 20 (10,3%) votes.
What type of promotional product would you prefer? A A luxury A Other convinient product attractively product designed product 19 4 8 0 4 1 2 1 2 4 2 0 3 2 1 0 1 0 0 0 2 3 1 0 7 5 2 1 2 1 2 1 11 9 6 2 1 4 0 0 52 33 24 5
Where would it be the most beneficial for you to use a promotional product? In the office In the kitchen In the livingroom In the bathroom In the garage In the bedroom For exercising/doing sports In the car In school Other TOTAL
A necessary product 33 5 1 2 1 1 9 3 20 4 79
Total
64 13 9 8 2 7 24 9 48 9 193
Table 5.11 Chi-Square Specific Answer Andersson & Malinova 2012
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From the table below (table 5.12) we can read that there is no positive relationship between a necessary product and the workplace. The value needed for a positive relationship is 0,05 and our value is 0,513 which clearly shows that here is no relationship between the two variables.
Chi-Square Tests Value 35.057a 37.039 1.914 193 Df Asymp. Sig. (2sided) 36 .513 36 .421 1 .166
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
a. 39 cells (78.0%) have expected count less than 5. The minimum expected count is .05.
Table 5.12 Chi-Square Person Answer Andersson & Malinova 2012
Even though the Chi-square test did not show a positive relationship between the two variables, we can from the table before (table 5.11) see that necessary product were most useful in the office/school. The reason our test did not show a positive relationship can be that the answers were very scattered. A reason why the office and school showed highest results may be because the majority of our respondents were workers or students. The results may have been different if we had a majority of retirees or unemployed people. Another potential reason why we did not get different results may depend on income. If we had more respondents with higher income the results may have shown that they preferred luxury products. Carlton and Blaise (2004) suggests that companies should choose promotional products that customers consider to be a good product. Therefore, a person with higher income may prefer a luxury product because it may have a higher value for him or her.
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5.4 THE WHAT Hypothesis 4: The respondents prefer pens over all other promotional product in diverse industries
PROMOTIONAL PRODUCTS Pen Mug Golf Ball T-shirt Cap Calendar Key chain Mouse Pad USB Tote bag Computer bag Jewlery Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other TOTAL GENERAL INDUSTRIES CARE 13,1% 5.0% 2,3% 6,0% 1,0% 5,5% 1,9% 2,1% 16,0% 2,7% 6,9% 3,6% 5,5% 3,7% 7,1% 2,4% 1,5% 5,5% 3,6% 3,4% 1,3% 100% CLOTHING & ASSECCORIES 3,4% 0,7% 1,1% 17,5% 3,7% 1,9% 1,6% 0,7% 5,1% 5,1% 4,8% 9,3% 1.9% 13,2% 7,6% 5,6% 1,1% 9,2% 0,2% 5,1% 1,2% 100% HEALTH ELECTRONIC AUTOMOBILE
12,8% 7,6% 2,3% 4,4% 0,6% 6,3% 2,3% 1,0% 7,8% 3,4% 2,5% 1,5% 14,9% 2,9% 5,0% 1,1% 2,1% 13,2% 1,7% 2,1% 4,6% 100%
6,2% 1,5% 1,3% 0,9% 0,5% 1,5% 2,0% 11,1% 27,9% 0,7% 13,8% 0,2% 2,2% 1,3% 2,4% 0,7% 8,7% 1,8% 9,3% 4,7% 1,3% 100%
11,0% 5,7% 2,3% 7,6% 6,9% 3,4% 11,2% 2,7% 8,0% 1,9% 3,0% 1,9% 4,4% 3,8% 6,3% 2,9% 2,7% 5,1% 1,5% 3,6% 4,0% 100%
Table 5.13 Specific results of the alternatives Andersson & Malinova 2012
According PPAI´s study which is shown in one of our theories (The WHAT) are pens the most popular promotional product used by companies (PPAI, 2005). The interesting aspect of our survey is that the results differ from our theories. The survey says that pens are on second place of preference in general industries with 11%, which also means that a little more than 1 of 10 respondents would prefer a pen as a promotional product from a company.
PPAI´s (2005) study: 1. Pens 2. Mugs and cups 3. Golf and polo shirts
Calton and Blaise´s (2004) study: 1. Wearable's 29,3% 2. Writing instruments 10,6% 3. Desk/office/business accessories 7,6%
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PROMOTIONAL PRODUCTS USB Pen Umbrella
GENERAL INDUSTRIES 16,0% 13,1% 7,1%
If we look at the top three items which customers prefer to receive as promotional products from general industries we can see that the USB received most votes with 16,0% followed by the pen with 13,1% and the umbrella with 7,1%. Our top three winning items are not in compliance with PPAI´s (2005) top winning items from their study. Nevertheless, the pen was the closest item in compliance with their results because the pen was on second place in our study and on first place in their study. However, if we compare the results to Carlton and Blaise´s (2004) study we can see that the only item in compliance with their study is the pen which is on second place in our study and the writing instruments which are on second place in their study as well. Even though those three items were the most preferable in general industries those results do not indicate that customers would prefer those items from specific industries as well. Therefore we will take a closer look at the results from a couple of specific industries.
PROMOTIONAL PRODUCTS T-shirt Jacket Jewlery
CLOTHING &ACCESSORIES 17,5% 13,2% 9,3%
If we go into depth and look at which promotional product the respondents prefer to receive from specific industries we can see that for instance in clothing and accessories industries the pens only received 3,4% of the votes, which is low compared to T-shirt which received 17,5% of the votes, the jacket which received 13,2% of the votes and the jewelry which received 9,3% of the votes. Pens are clearly not a good promotional product for clothing and accessories industries. Thorne (2011) argues in one of our previous theories (The WHAT), that T-shirts are one of those promotional products that are not going to disappear any soon and are one of the few products which are always needed and which can be used anytime. Therefore this type of industry should focus on promotional product made of textile because it is apparent that customers associate textile products such as T-shirts and jackets with clothing and accessories industries.
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Our top three winning products were not in compliance with PPAI´s (2005) study but T-shirt and Jacket were in compliance with Carlton and Blaise´s (2004) study where wearable´s were on first place.
PROMOTIONAL PRODUCTS Water bottle Towel Pen
HEALTH CARE 14,9% 13,2% 12,8%
The pen was voted on third place in health care industries with 12,8%. On the first and second place were the water bottle with 14,9% followed by the towel with 13,2%. Once again we believe that reason the water bottle and the towel received higher votes may be because people associate them with health care where the water bottle may make them think of exercising and the towel of swimming or showering. The conclusion of this is that pens can be used as a promotional product by health care industries but it is probably preferable if they use promotional products which can be associated with health care such as a water bottle and a towel. Compared to PPAI´s (2005) and Carlton and Blaise´s (2004) studies none of our winning products was in compliance with their results. However, pen was the closest where it was on third place in our study and on first place in their study.
PROMOTIONAL PRODUCTS USB Computer bag Mouse pad ELECTRONIC 27,9% 13,8% 11,1%
In the electronics industries the pens only received 6,2% of the votes which is low compared to the USB which received 27,9% of the votes followed by the computer bag with 13,8% and the mouse pad with 11,1%. A reason why such high percentage of the respondents preferred those three items as a promotional product from an electronics industry may be because they associate them with electronics, especially computers. However the USB received the highest votes and according to Thorne (2011) the technology is developing fast and therefore may the USB be one of the greatest promotional products to use. Based on the results electronics industries should not use pens as promotional products and instead focus on products such as USB. If we look back at our theories we can see that none of our winning products are in compliance with any of the displayed results in the previous studies.
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PROMOTIONAL PRODUCTS Key chain Pen USB
AUTOMOBILE 11,2% 11,0% 8,0%
Lastly, in automobile industry pens were on the second place by preference choice which is the closest to our theories of all industries. The most preferable promotional product in the automobile industry was the key chain which had only 0,2% of the votes more than the pen and on the third place we have the USB. A good reason why we believe that the respondents preferred key chains, pens and USBs in this industry is because they probably associate the key chains with car keys, pens with signing of contracts and USBs with car radios, where all of these three items can be very useful. To conclude this we can say that all of these items are great promotional product for this industry to use. If we compare our results with to PPAI´s (2005) study which is displayed in our fourth theory, THE WHAT, we can see that the only item which is partially in compliance with our results is that they had pen on first place and that we had pen on second place with only 0,2% difference from the winning product. If we then compare our results with Carlson and Blaise´s (2004) theory we can see that the only item which is in compliance with our results is that they had the writing instruments on second place and we had the pen on second place as well. The results clearly indicate that no pens have received the highest votes in any kind of industry and therefore disproves what the PPAI produced in their investigation. Nevertheless, what we can see is that the pens have had relatively good grades even though they did not win. Pens come on second place in general industries, on third place in health care industries and were ranked second in the automobile industries. The only industries that the pens received low rankings in were the electronics industries and the clothing and accessories industries. The reason why pens received such high ranking in the general, health care and automobile industries might be because people may in general reflect the pens as a useful and necessary object while in automobile and health care people may reflect the pen as a tool to sign a contract to a car or to a gym. However, the reason why pens received such low rankings in clothing and accessories industries and in electronics industries could be that people simply do not relate pens to those industries, where in clothing and accessories people might rather relate a T-shirt or a jacket which are typical for this type of industry. As in electronics industries people might rather think of product related to computers such as mouse pads, USBs and computer bags.
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6. CONCLUSION
The last section of the thesis concludes the findings of the research and summarizes the conclusion drawn from the analysis. The findings aim to answer the purpose of the thesis and the research question.
In order to conclude this thesis we are going to give and answer to our research question: "Which are the best promotional products to be used by companies in general and in specific industries?" The results give a clear picture of the power of promotional products, that it is a great tool to be used by companies as a marketing strategy and an important medium to be remembered by, which makes it even more important for companies to aim to satisfy customers´ needs and wants. The research has shown that the USB received the highest rankings in the general industry which can also be considered as the best promotional product among the examples of promotional products provided in our survey. The research has also shown that customers prefer different promotional products depending on the type of industry. Therefore, it is important for companies to take into consideration which industry they are in and what preferences their potential customers have, what they want and where it is most beneficial for the customers to use the promotional products. The goal is not just to be remembered by the customers but it is also to satisfy customers' needs and wants through the chosen products. Therefore, if companies want to be secure that they will receive the best results, they should focus on choosing promotional products which reflect the type of industry they are in, which also makes it easier for the customers to associate the promotional products to the business. If we take a closer look on the specific industries, we can clearly see that the promotional products which received the highest ranking were also those products which could easiest be associated with the different industries. The promotional product which could be easiest associated with clothing and accessories industries are the T-shirt which obviously reflect the industry best. The same applies to the other industries such as health care where the water bottle is the best promotional product which reflects the company best. I the electronics industry, once again the USB was the best promotional products associated with this particular industry and the key chain was the best promotional product to be used by automobile industries. Even though our research shows which promotional products are the best to use in general and in specific industries it does not certify that those promotional products are the best to use in reality where companies have hundreds of thousands of promotional products to choose between. Despite the fact, our research has clearly shown that companies need to take into consideration which industry they are in and which their target market is in order to choose the best promotional product which is most beneficial for their business.
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6.1 PURPOSE OF THIS STUDY The purpose of this study was to describe and analyze the use and the importance of promotional product for companies. What we want to achieve with this study is to find out which promotional products is the best in general and in specific industries. We will explore the power of promotional products and how companies can achieve the best results when it comes to saving time and money.
We want to help strengthen organizations ability when it comes to choosing the right promotional products and also to provide them with advice regarding investment in promotional product based on customers' reactions and thus help them to become more successful in their selection of promotional products. We believe that we have fulfilled the purpose of our research. We have described and analyzed the importance of promotional products for companies and how they can select the best promotional product for their industries. By using WHY, WHO, WHERE and WHAT, companies can more easily select the best promotional product. The research has also shown the promotional product which is mostly preferred over other products which we have examined. Through gaining knowledge about their own market, its customers and the right promotional product can companies save time and money. The advice which we can provide for companies is that they can use both researches or theories or just follow the development of technology when they are going to choose promotional products. Companies can for example use USBs, or something which is typical for their industries such as T-shirts or water bottles, depending if it is a clothing and accessories company or a health care company.
6.2 CONTRIBUTION TO RESEARCH AND TO PRACTICE As we have mentioned earlier, there is lack of research on this subject and in contrast to other research papers, is our research showing that companies clearly demonstrate lack of knowledge in terms of promotional products by selecting similar products when they choose to market their businesses. Through this research companies can see that the respondents prefer different promotional products depending on which industry they belong to. This research also shows that companies need to take into consideration which industry they belong to when it comes to choosing promotional products.
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6.3 FURTHER RESEARCH Recommendations for further research on the subject.
Some interesting aspects concerning promotional products which we did not discuss in our thesis is how companies can use promotional products in order to motivate staff, to introduce a new product and increase trade show traffic. Another aspect which we found during the process, which was very interesting, is the psychology of promotional products; which impact promotional products have on customers and how customers react on promotional products. Another suggestion on further research could be to investigate whether there is a difference between men and women's needs when it comes to choosing promotional products. Our thesis showed no difference between men and women´s needs when it comes to choosing promotional products which could have been due to our respondents were almost equally divided between men and women. If other men and women conducted the survey the results would possibly have been different.
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RESOURCES
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MacDonald M. (2010) Excel 2010: The Missing Manual. 1st edition. United States: O'Reilly Media, Inc. Murray R T.(2003) Blending Qualitative and Quantitative Research Methods in Thesis and Dissertations. 1st edition. London: Corwin Press Nesbitt E J. (2008) Chi-Square. 2nd edition. United Kingdom: Manchester U.P. Norman K., Lincoln S Y. (1994) Handbook of qualitative research. 1st edition. United States: Sage Publications Ries A., Trout J. (2001) Positioning: The Battle for Your Mind. 2nd edition. United States: McGraw Hill Professional Ries A.,Trout J. (2005) Marketing Warfare. 20th edition. London: McGraw-Hill Rosengren S. (2008) Facing Clutter: On Message Competition in Marketing Communications. 1st edition. Stockholm: School of Economics (EFI) Shah K., D´Souza A. (2009) Advertisement and Promotions: An IMC Perspective. New Delhi: McGraw-Hill Education Shimp A. T. (2008) Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. 8th edition. Canada: Cengage Learning Thorne H. (2011) SWAG:How to choose and use promotional products for marketing your business. 1st edition. United States: Booklocker.com,Inc Thurén T. (2007) Vetenskapsteori för nybörjare. 2nd edition. Sweden: Liber Wagner E W. (2009) Using SPSS for Social Statistics and Research Methods. 2nd edition. New Delhi: Pine Forge Press Wärneryd B. (1993) Att Fråga. 5th edition. Sweden: SCB-Tryck Örebro
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INTERNET ARTICLES Arora, R (2006), "Product positioning based on search, experience and credence attributes using conjoint analysis". Journal of Product & Brand Management [Online] vol. 15, no. 5 pp. 285-292. Available from:http://dx.doi.org/10.1108/10610420610685695 (Date viewed 25th of April 2012)
Beltramini R. F. (2002): "Impact Gifting", Journal of Promotion Management, [Online] vol.8, no.1, pp. 67-71. Available from:http://www.tandfonline.com/doi/pdf/10.1300/J057v08n01_06 (Date viewed 3rd of August 2012) Dolnicar, S., Grün, B. (2007), "Cross-cultural differences in survey response patterns". International Marketing Review [Online] vol. 24, no.2 pp.127 - 143. Available from:http://www.emeraldinsight.com/journals.htm?articleid=1598044&show=abstract (Date viewed 10th of May). Donald, R S. (2001), "Promotional Products: Adding Tangibility to Your nonprofit promotions". Nonprofit & Public Sector Marketing [Online] vol.9, no.9 pp.205-212. Available from:http://dx.doi.org/10.1300/J054v09n01_13 (Date viewed 23rd of March). Fuchs, C., Diamantopoulos, A. (2010), "Evaluating the effectiveness of brand-positioning strategies from a consumer perspective". European Journal of Marketing [Online] vol.44, no.11 pp.1763 - 1786. Available from:http://dx.doi.org/10.1108/03090561011079873 (Date viewed 26th of April). McCarthy, M S., Eugene, H. (2008), "Synergies of Promotional Products and Print Advertising in Building Brand Equity for a New Bran". Journal of Promotion Management [Online] vol. 14, no.8 pp. 3-15. Available from:http://dx.doi.org/10.1080/10496490802501661 (Date viewed 19th of April). Morris D.S , Barnes R. B, Lynch E. J. (1999): "Relationship marketing needs total quality management", Total Quality Management [Online] vol.10, no. 4-5, pp. 659-665. Available from:http://www.tandfonline.com/doi/pdf/10.1080/0954412997659 (Date viewed 5th of August 2012) Nelson, R A., Kanso, A. (2002),"Today's Promotional Products Industry". Promotion Management [Online] vol.8, no.8 pp.3-22. Available from:http://www.tandfonline.com/doi/abs/10.1300/J057v08n01_02 (Date viewed 23rd of March). Pennington, R. (2002),"Developing Recipient-Based Strategies for Promotional Product Selection". Journal of Promotion Management [Online] vol.8, no.1 pp.53-66. Available from:http://dx.doi.org/10.1300/J057v08n01_05 (Date viewed 29th of March).
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Porter, S S., Claycomb, C. (1997), "The influence of brand recognition on retail store image". Journal of Product& Brand Management [Online] vol.6, no.6 pp.373-87. Available from:http://dx.doi.org/10.1108/13612020910957680 (Date viewed 18th of April). Raghubir, P. (2004), "Free gift with purchase: promoting or discounting the brand?". Jounal Of Consumer Psychology [Online] vol.14, no.1 pp.181-186. Available from:http://groups.haas.berkeley.edu/marketing/PAPERS/PRIYA/paper2.pdf (Date viewed 30th of April). Rowley, J. (1998),"Promotion and marketing communications in the information marketplace" Library Review [Online] vol.47, no.8 pp.383-387. Available from:http://www.emeraldinsight.com/journals.htm?articleid=859538&show=pdf (Date viewed 22nd of March). Shanka T. , HandleyB. (2011): Gift Giving: An Exploratory Behavioural Study, Asia Pacific Journal of Tourism Research,[Online] vol. 16, no. 4, pp. 359-377. Available from:http://www.tandfonline.com/doi/pdf/10.1080/10941665.2011.588865 (Date viewed 4th of August 2012)
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INTERNET RESOURCES
Brown I. (2008). Strengths and Weaknesses of Promotional Gifts [Online]. Available from:
ts&id=1753003 Last accessed 15th April 2012. PPAI. (2012). The Power Of Promotional Products. Available:http://www.ppai.org/insideppai/research/documents/trial2010.pptx. Last accessed 2nd April 2012. Rämme U., Gustafsson N., Vestin H., Lindblom J., Kilander K. (2010). Härifrån till framtiden [Online]. Available from: www.hui.se/MediaBinaryLoader.axd?MediaArchived Last accessed 1st April 2012.
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MISCELLANEOUShttp://freeonlinesurveys.com/http://twitter.com/ www.facebook.com www.hotmail.com www.skype.comhttp://www.emeraldinsight.com/http://www.jstor.org/http://www.tandfonline.com/
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APPENDIX 1
BACHELOR THESIS ON PROMOTIONAL PRODUCTS
Thank you for participating in our research. The aim of this research is to gain knowledge about how consumers perceive promotional products and which, according to the consumers is the best promotional product. The survey consists of a number of questions which we want you to answer by clicking on the option that fits you best. We guarantee you full anonymity. Kristiana and Philip
1
A promotional item is such as a bag, a calendar, a pen e tc. which carries the name or the address of the company. Have you ever received a promotional item from a company?
Yes No (go to question 6 ) Do not remember
2
Are you using the promotional product that you received?
Yes, in everyday life Often Rarely Never Other
3
Why do you think that you received a promotional product?
To promote their business To encourage a purchase As a "thank you" for making a purchase To introduce a new product To promote an upcoming event To promote an existing product Other
4
Do you remember which company you received it from?
Yes No
5
(If you answered no on the previous question) Why don´t you re member which company it was?
6
What type of promotional product would you prefer?
A necessary product A convenient product A luxury product A attractively designed product Other
7
Where would it be the most beneficial for you to use a promotional product?
In the office In the kitchen In the living room In the bathroom In the garage
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In the bedroom In the garden For exercising/doing sports In the car In school Other
Survey provided by
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Which of the following promotional items would you like to receive from a company? (Multiple choice , max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
9
Which of the following promotional items would you like to receive if it is a CLOTHING&ACCESSORIES company? (Multiple choice , max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
10 Which of the following promotional items would you like to receive if it is a HEALTH CARE company? (Multiple choice max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
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11 Which of the following promotional items would you like to receive if it is an ELECTRONICS company? (Multiple choice, max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
12 Which of the following promotional items would you like to receive if it is an AUTOM OBILE company? (Multiple choice, max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
13 Where are you from?
Sweden Other European country Outside Europe
14 Age :
-1 5 16-24 25-44 45-64 65-
15 Occupation:
Worker Student Unemployed Other
16 Gender:
Male
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Female
Survey provided by
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Free Online Surveys
THANK YOU!
THANK YOU for taking your time to fill out our questionnaire! If you have any questions about our thesis, do not hesitate to contact us; [email protected]
Y
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APPENDIX 2
Results for: HALMSTAD UNIVERSITY
1) A promotional item is such as a bag, a calendar, a pen etc. which carries the name or the address of the company. Have you ever received a promotional item from a company?
Yes 184 (93.9%)
No (go to question 6 ) 10 (5.1%)
Do not remember 2 (1.0%)
2) Are you using the promotional product that you received?
Yes, in everyda y life 30 (16.0%)
Often 74 (39.4%)
Rarely 78 (41.5%)
Never 6 (3.2%)
Other 0 (0.0%)
3) Why do you think that you received a promotional product?
To promote their business 144 (76.6%)
To encourage a purchase 13 (6.9%)
As a "tha nk you" for making a purchase 16 (8.5%)
To introduce a new product 6 (3.2%)
To promote an upcoming event 4 (2.1%)
To promote an existing product 3 (1.6%)
Other 2 (1.1%)
4) Do you remember which company you received it from?
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Yes
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140 (74.5%)
No 48 (25.5%)
5) (If you answered no on the previous question) Why don´t you remember which company it was?
6) What type of promotional product would you prefer?
A necessary product 80 (41.0%)
A convenient product 53 (27.2%)
A luxury product 33 (16.9%)
A attra ctively de signe d product 24 (12.3%)
Other 5 (2.6%)
7) Where would it be the most beneficial for you to use a promotional product?
In the office 64 (33.0%)
In the kitchen 13 (6.7%)
In the living room 9 (4.6%)
In the bathroom 8 (4.1%)
In the garage 2 (1.0%)
In the bedroom 7 (3.6%)
In the garden 0 (0.0%)
For e xercising/doing sports 24 (12.4%)
In the car 9 (4.6%)
In school 49 (25.3%)
Other 9 (4.6%)
8) Which of the following promotional items would you like to receive from a company? (Multiple choice, max 3)
Pe n 81 (13.1%)
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Mug 31 (5.0%)
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6 pack Golf balls 14 (2.3%)
T-shirt 37 (6.0%)
Ca p 6 (1.0%)
Calendar 34 (5.5%)
Key chain 12 (1.9%)
Mouse pad 13 (2.1%)
USB 99 (16.0%)
Tote bag 17 (2.7%)
Computer bag 43 (6.9%)
Jew elry 22 (3.6%)
Water bottle 34 (5.5%)
Jacket 23 (3.7%)
Umbrella 44 (7.1%)
W allet 15 (2.4%)
Alarm clock 9 (1.5%)
Tow el 34 (5.5%)
Calculator 22 (3.6%)
Watch 21 (3.4%)
Other 8 (1.3%)
9) Which of the following promotional items would you like to receive if it is a CLOTHING&ACCESSORIES company? (Multiple choice, max 3)
Pe n 19 (3.4%)
Mug 4 (0.7%)
6 pack Golf balls 6 (1.1%)
T-shirt 99 (17.5%)
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Ca p 21 (3.7%)
Free Online Surveys
Calendar 11 (1.9%)
Key chain 9 (1.6%)
Mouse pad 4 (0.7%)
USB 29 (5.1%)
Tote bag 29 (5.1%)
Computer bag 27 (4.8%)
Jew elry 53 (9.3%)
Water bottle 11 (1.9%)
Jacket 75 (13.2%)
Umbrella 43 (7.6%)
W allet 32 (5.6%)
Alarm clock 6 (1.1%)
Tow el 52 (9.2%)
Calculator 1 (0.2%)
Watch 29 (5.1%)
Other 7 (1.2%)
10) Which of the following promotional items would you like to receive if it is a HEALTH CARE company? (Multiple choice, max 3)
Pe n 67 (12.8%)
Mug 40 (7.6%)
6 pack Golf balls 12 (2.3%)
T-shirt 23 (4.4%)
Ca p 3 (0.6%)
Calendar 33 (6.3%)
Key chain
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12 (2.3%) Mouse pad 5 (1.0%)
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USB 41 (7.8%)
Tote bag 18 (3.4%)
Computer bag 13 (2.5%)
Jew elry 8 (1.5%)
Water bottle 78 (14.9%)
Jacket 15 (2.9%)
Umbrella 26 (5.0%)
W allet 6 (1.1%)
Alarm clock 11 (2.1%)
Tow el 69 (13.2%)
Calculator 9 (1.7%)
Watch 11 (2.1%)
Other 24 (4.6%)
11) Which of the following promotional items would you like to receive if it is an ELECTRONICS company? (Multiple choice, max 3)
Pe n 34 (6.2%)
Mug 8 (1.5%)
6 pack Golf balls 7 (1.3%)
T-shirt 5 (0.9%)
Cap 3 (0.5%)
Calendar 8 (1.5%)
Key chain 11 (2.0%)
Mouse pad 61 (11.1%)
USB 153 (27.9%)
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Tote bag 4 (0.7%)
Free Online Surveys
Computer bag 76 (13.8%) Jew elry 1 (0.2%)
Water bottle 12 (2.2%)
Jacket 7 (1.3%)
Umbrella 13 (2.4%)
W allet 4 (0.7%)
Alarm clock 48 (8.7%)
Tow el 10 (1.8%)
Calculator 51 (9.3%)
Watch 26 (4.7%)
Other 7 (1.3%)
12) Which of the following promotional items would you like to receive if it is an AUTOMOBILE company? (Multiple choice, max 3)
Pe n 58 (11.0%)
Mug 30 (5.7%)
6 pack Golf balls 12 (2.3%)
T-shirt 40 (7.6%)
Ca p 36 (6.9%)
Calendar 18 (3.4%)
Key chain 59 (11.2%)
Mouse pad 14 (2.7%)
USB 42 (8.0%)
Tote bag 10 (1.9%)
Computer bag 16 (3.0%)
Jew elry 10 (1.9%)
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Water bottle 23 (4.4%)
Free Online Surveys
Jacket 20 (3.8%)
Umbrella 33 (6.3%)
W allet 15 (2.9%)
Alarm clock 14 (2.7%)
Tow el 27 (5.1%)
Calculator 8 (1.5%)
Watch 19 (3.6%)
Other 21 (4.0%)
13) Where are you from?
Sw e de n 124 (64.2%)
Other European country 34 (17.6%)
Outside Europe 35 (18.1%)
14) Age:
-15 0 (0.0%)
16-24 156 (80.0%)
25-44 29 (14.9%)
45-64 10 (5.1%)
650 (0.0%)
15) Occupation:
W ork e r 55 (28.1%)
Student 132 (67.3%) Unemployed 3 (1.5%)
Other 6 (3.1%)
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16) Gender:
Ma l e 98 (49.7%)
Fe m a l e 99 (50.3%)
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doc_321266340.docx
Promotion is one of the market mix elements, and a term used frequently in marketing. The specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity.
STUDY REPORTS ON PROMOTIONAL PRODUCT
A quantitative study about which promotional products are the best to be used in general and specific industrie
ABSTRACT
Title: Promotional Products - A quantitative study about which promotional product are the best to be used in general and specific industries Authors: Philip Andersson and Kristiana Malinova Supervisor: Jean-Charles Languilaire Examiner: Christine Tidåsen End seminar: 2012-06-04 Level: Bachelor Dissertation in Marketing, 15 Swedish credits, Spring 2012 Key words: promotional products, promotional items, promotional gifts, product advertising, promotion, promotion methods and swag. Question:"Which are the best promotional products to be used by companies in general and in specific industries?" Purpose: The purpose of this study is to describe and analyze the use and the importance of promotional products for companies. What we want to achieve with this study is to find out which promotional product is the best in general and in specific industries. We will explore the power of promotional items and how to achieve the best results when it comes to saving time and money. Theoretical framework: The theoretical framework includes theories regarding what companies need to consider when choosing to use promotional products. The theories which are used are based to on the four hypotheses which we have chosen to analyze. Methodology and Method: This dissertation is a quantitative study with a deductive and extensive approach.
Empirical framework: The empirical framework present findings and statistics of the research. Analysis: The four hypotheses are analyzed and critical examined. Conclusion: If companies learn how use promotional products they will gain a great advantage on the market. The type of the industry is of great importance when it comes to choosing the right promotional products.
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CO N T E N T
1. INTRODUCTION ......................................................................................................................... 1 1.2 BACKGROUND ............................................................................................................................... 1 1.3 PROBLEM AREA ............................................................................................................................. 2 1.4 RESEARCH QUESTION.................................................................................................................... 4 1.5 PURPOSE OF THE STUDY ...............................................................................................................4 1.6 DELIMITATIONS ............................................................................................................................. 4 1.7 CENTRAL CONCEPTS ...................................................................................................................... 4 1.8 DISPOSITION.................................................................................................................................. 5 2. THEORETICAL FRAMEWORK............................................................................................... 6 2.1.1 AN OVERALL DEFINITION OF PROMOTIONAL PRODUCTS.......................................................... 6 2.1.2 STRENGHTS................................................................................................................................. 6 2.1.3 WEAKNESSES .............................................................................................................................. 7 2.2 INTEGRATING PROMOTIONAL PRODUCTS IN ONE´S MARKETING ACTIVITIES ............................. 7 2.2.1 THE WHY..................................................................................................................................... 7 2.2.2 THE WHO.................................................................................................................................... 8 2.2.2.1 SEGMENTATION ...................................................................................................................... 8 2.2.2.2 TARGETING .............................................................................................................................. 9 2.2.2.2.1 TARGET MARKETING STRATEGIES...................................................................................... 10 2.2.2.3 POSITIONING ......................................................................................................................... 11 2.2.3 THE WHERE............................................................................................................................... 12 2.2.4 THE WHAT ................................................................................................................................ 13 2.3 HYPOTHESIS................................................................................................................................. 14 2.3.1 HYPOTHESIS 1........................................................................................................................... 14 2.3.2 HYPOTHESIS 2........................................................................................................................... 14 2.3.3 HYPOTHESIS 3........................................................................................................................... 14 2.3.4 HYPOTHESIS 4........................................................................................................................... 14 3. METHODOLOGY AND METHOD ......................................................................................... 15 3.1 POSITIVISM OR HERMANEUTIC................................................................................................... 15 3.1.1 RESEARCH APPROACH.............................................................................................................. 15 3.1.2 INTENSIVE OR EXTENSIVE......................................................................................................... 16 3.1.3 QUALITATIVE OR QUANTITATIVE ............................................................................................. 17 3.1.4 COLLECTION OF DATA .............................................................................................................. 17 3.1.4.1 THE SELECTION AND COLLECTION OF SECONDARY DATA .................................................... 18 3.1.4.2 THE SELECTION AND COLLECTION OF PRIMARY DATA ......................................................... 18 3.1.5 THE CREDIBILITY OF THE RESEARCH......................................................................................... 19
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3.1.5.1 RELIABILITY ............................................................................................................................ 19 3.1.5.2 VALIDITY ................................................................................................................................ 20 3.1.6 MOTIVES FOR THE CHOICE OF METHODOLOGY ...................................................................... 20 3.1.7 CRITICAL REVIEW OF THE CHOSEN METHODOLOGY ............................................................... 20 3.1.9 METHOD TO ANALYZE .............................................................................................................. 21 3.2 METHOD...................................................................................................................................... 22 3.2.1 DESIGN OF QUESTIONNAIRE .................................................................................................... 22 3.2.2 CHOICE OF QUESTIONS ............................................................................................................ 22 3.2.3 RESPONSE OPTIONS ................................................................................................................. 23 3.2.4 TEST GROUP ............................................................................................................................. 23 3.2.5 THE RESEARCH PROCESS .......................................................................................................... 24 3.2.6 INTERPRETIVE TOOLS ............................................................................................................... 24 3.2.7 RESPONSE RATE........................................................................................................................ 24 3.2.8 SAMPLING METHOD................................................................................................................. 24 3.2.8.1 SAMPLING MATERIAL............................................................................................................25 4. EMPIRICAL MATERIAL......................................................................................................... 26 4.1 RESEARCH RESULTS AND STATISTICS .......................................................................................... 26 4.1.1 GENERAL AND KNOWLEDGE BASED QUESTIONS..................................................................... 26 4.1.2 ETHICAL QUESTIONS................................................................................................................. 28 5. ANALYSIS................................................................................................................................... 34 5.1 THE WHY...................................................................................................................................... 34 5.2 THE WHO ..................................................................................................................................... 36 5.3 THE WHERE.................................................................................................................................. 43 5.4 THE WHAT ................................................................................................................................... 45 6. CONCLUSION............................................................................................................................ 49 6.1 PURPOSE OF THIS STUDY ............................................................................................................ 50 6.2 CONTRIBUTION TO RESEARCH AND PRACTICE ........................................................................... 50 6.3 FURTHER RESEARCH.................................................................................................................... 51 RESOURCES............................................................................................................................... 52 BIBLIOGRAPHY................................................................................................................................... 52 INTERNET ARTICLES........................................................................................................................... 54 INTERNET RESOURCES....................................................................................................................... 56 MISCELLANEOUS ............................................................................................................................... 57 APPENDIX 1 APPENDIX 2
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1. INTRODUCTION
The first chapter of the dissertation serves as an introduction of this research which also gives the reader a good insight about the subject. The introduction opens with a background of the subject, followed by a description of the problem area, the research question and the purpose of the paper. The chapter also includes delimitations and disposition of the thesis.
1.2 BACKGROUND There is a war out there, where companies fight for their lives to get consumers attention (Ries & Trout, 2005). The marketing in the beginning of the 21st century differs from the marketing in the past. The broad market outlook is the old way for companies to market their products, while the direct interaction with customers is the new way (Nelson & Kanso, 2002). A way to reach out to customers nowadays is the integrated marketing communication (IMC) which has become a very important trend as it is a communication process which involves the planning, creation, integration and implementation of different marketing communication tools to send a consistent message to the target audience (Shimp, 2008). Integrated marketing communication differs from traditional marketing as it does not only focus on persuasion and brand building, but also focuses on building a relationship with customers (Hutton, 1996). Building a relationship with its customers is an important aspect for the company´s development and success. Therefore, in order to provide a clear and consistent message to the customers different marketing communication tools are used such as advertising, direct marketing, sales promotion, public relations and personal selling. These tools are also called the promotional mix (Shad & D`Souza, 2009).
A more common way of promotion which helps other marketing activities to be more effective and efficient is the sales promotion. Sales promotion is a nonpersonal promotional effort which is a part of the promotional mix and which stimulates customers to buy more. Sales promotion is done by using tools such as coupons, discounts and sales, contests, exhibitions, free samples, gifts and promotional products (Carson, 2009). A sales promotion tool that has become increasingly popular and which is used by many companies is the promotional products. Promotional products have an important characteristic that exceeds all other forms of advertising which is their staying power (Thorne 2011). Even though promotional products are being used by many companies, they may still wonder how promotional products can benefit their particular business in the best way. Whether companies are looking to increase their profits motivate staff, encourage customers to visit a store/website or to introduce a new product to the market, promotional products are the answer. It was not until late nineteenth century that a wide variety of promotional products were promoted, which contributed to creating the industry as it is known today (Carson, 2009). "Believe it or not, promotional products hold the key to quantifying the performance of every marketing medium you see. In short, you can use them to keep all of your other advertising honest!" (Carlton & Blaise, 2004, p.7).
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1.3 PROBLEM AREA Most of the companies on the market are small and medium enterprises and have limited resources therefore they need to consider how they want to spend their money. The product options are becoming more and more homogeneous and the customers are becoming more spoiled while the competition is becoming more intensifying and the prices are forced to decrease (HUI, 2010). Changes in media channels and an increase in use of media have today contributed to making it more difficult for companies to convey their message to the consumers. Consumers are being exposed to an increasing degree of competing messages so that they become more inclined to avoid and distrust companies marketing communication (Rosengren, 2008). Customers often see the different marketing tools companies use in order to market their business. Some of those tools include; advertising, personal selling or even promotional products in order to reach out to their customers. If customers are not satisfied with the company's way of marketing there is a big chance that the customers will not make a purchase from this company. Therefore, it is important for companies to use the right marketing tool for their business (Morris, Barnes & Lynch (1999).
It all depends on how the product will be discovered and consumed by its customers. Therefore it is very important to find the right combination between the message companies try to convey to the customers, target groups which companies try to reach and suitable marketing channels they use in order to convey the message (Dahlén & Lange, 2003). Companies are fighting to establish business relationships with their customers but what many companies do not know is that promotional products can be used as an auxiliary factor for customers to make it easier for them to work. Instead to be seen as a working organization, companies can be seen as a partner to the customers (Thorne, 2009). Therefore, what is important when it comes to building a brand or to have a business relationship is to demonstrate to their customers that "we are here when you need us and we will help you get the job done!"(Thorne, 2011, p.14). Gifts like promotional products cannot create a relationship between companies, but it can contribute to build a solid relationship. To give a gift to a customer is more than the gift itself. It is a communication tool where the company's symbol is involved. The selection of the perfect gift of a huge importance for the business relationship. It is also important to know how to use promotional products correctly (Beltramini, 2002). If the effect of using promotional products is such that it becomes an incentive for companies to ensure their businesses and with the help of specified payments or gifts speed up negotiations quickly, then such type of effect can be seen as a bribe to make a safe sale (Jobber & Lancaster, 2009). Promotional products are the key for companies to improve the results of all marketing strategies they use (Carlton & Blaise, 2004). Companies use promotional products to spread the word about their organization, products and services. Despite the fact, many people, including marketing professionals do not have enough knowledge about promotional products, what they are, what they do and how to use them in the most effective manner (Carson, 2009). It is necessary for companies to have some knowledge about promotional products in order to avoid using them incorrectly (Jobber & Lancaster, 2009). It is easy to buy
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promotional products, but it is also easy to make mistakes when buying promotional products. The mistakes can be costly for the companies, not only in pounds, but in forms of companies, brands and images (Thorne, 2011). As mentioned earlier in the background, promotional products have been here for a long time and are an important factor for companies when it comes to promoting themselves (Carson, 2009). Companies use promotional products in order to advertise and promote their business, as well as create awareness and leave traces. The promotional products industry today offers more than 15 000 different types of objects with more than 650 000 individual products (Nelson & Kanso, 2002). Choosing the right promotional product is the key to its effectiveness (Pennington, 2002). Many industries in general use the same promotional products and the most popular promotional product used by all industries is the pen (Carson, 2009). Companies still do not know which promotional products are the best for promoting their particular business. It may be due to companies in various industries possess too little information about promotional products (Carlton & Blaise, 2004). Therefore, lack of knowledge may be the reason for why companies are using the same types of products. Another reason why companies use the same promotional products could be because they may believe that these specific promotional products are the most efficient because all companies are using them. Therefore, before choosing what kind of promotional products they are going to use companies first need to consider what kind of industry they are in and what their target market is (Thorne, 2011). For example if you have a fishing industry and your target market is fishermen and your products are boating and fishing equipment then you would probably not send a fluffy soft toy as a promotional product (Carlton & Blaise, 2004). Customers who receive promotional products return sooner and more frequent to businesses (Carson, 2009). When a customer receives a gift from a company, especially a gift that is personally imprinted or has any impact on the customer, makes the customer feel appreciated and valuable to the company (Shanka & Handley, 2011). This leads to a better relationship between the customer and the company and also increases the customers' loyalty for the company for a longer time (Carlton & Blaise, 2004). If the promotional product does not satisfy the customer then he or she may not use the product and usually throws it in the trash bin, which thereby harms the company´s investment in both time and money (Thorne, 2011).
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1.4 RESEARCH QUESTION A strong indication that companies marketing may not be working is the lack of knowledge about promotional products so our question is as followed;
"Which are the best promotional products to be used by companies in general and in specific industries?"
1.5 PURPOSE OF THE STUDY The purpose of this study is to describe and analyze the use and the importance of promotional products for companies. What we want to achieve with this study is to find out which promotional products are the best in general and in specific industries. We will explore the power of promotional products and how companies can achieve the best results when it comes to saving time and money.
We want to help strengthen organizations ability when it comes to choosing the right promotional products and also to provide them with advice regarding investment in promotional product based on customers' reactions and thus help them to become more successful in their selection of promotional products.
1.6 DELIMITATIONS Promotional products are used in several ways but the main core objectives are motivating staff and increasing business profits (Carson, 2009). Although we mention these matters in our dissertation we have chosen to focus on which promotional products are most preferable by the customers.
We have also chosen not to go into depth about customers' psychological thinking about promotional products and also on their reaction when they receive a promotional product.
1.7 CENTRAL CONCEPTS Advertising which is a non- personal presentation of a particular product or service and tries to draw the attention of potential and current customers via newspapers, magazines, television, radio etc. (Kotler & Keller 2012).
Direct Marketing which is trying to create a relationship between the company and its customers. In direct marketing companies use people´s names to make them feel personally chosen and connected to the company when they send advertisement via mail, telephone, email or the Internet (Kotler & Keller 2012). Personal selling to have face to face contact with a customer. Unlike the other promotional tools personal selling permits a direct contact between a buyer and a seller. The seller identifies needs and problems of the buyer, to conveying the features, the benefits and advantages of the product or service they sell. To close the sales and to follow up the customer so that they stay satisfied (Kotler & Keller, 2012). Public relations are used for the management to communicate and build relationship to establish a strong understanding between the company and its employees, customers, other firms, the government and media in that way to promote or to protect the company´s image (Kotler & Keller 2012).
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Sales promotion is encouragement of trial or purchase achieved through contests, demonstrations, discounts, exhibitions, giveaways, merchandising, special offers etc. (Kotler & Keller 2012). Target group is a set of buyers sharing common needs and characteristics that the company decides to serve (Kotler & Armstrong, 2009). Marketing channels are avenues used by the marketers in order to make products available to customers (Jobber, 2009).
1.8 DISPOSITION This dissertation consists of seven chapters excluding the reference and appendices list. The chapters are presented below.
Chapter 1: Introduction The above pages serve as an introduction to this study. It includes background, problem area, purpose and research question, delimitations, disposition and definitions. Chapter 2: Theoretical framework This chapter presets previous research and relevant theories which will help to analyze the collected data and information. Chapter 3: Methodology and Method The third chapter of this thesis will describe the applied methodology and applied methods. This chapter gives the reader a deeper understanding of the chosen research approach, how the selection process was preceded and how the questionnaire was designed. Chapter 4: Empirical Material This chapter presents all gathered information collected through our questionnaire. Chapter 5: Analysis In chapter five analyzes and interpret the collected data with the help of the theoretical framework. Chapter 6: Conclusion In this chapter of the dissertation we sum up all the analyzed data providing the reader with a conclusion and an answer to the research question. We also give recommendations and suggestions on further research.
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2. THEORETICAL FRAMEWORK
This chapter is called theoretical framework and it presents previous research and theories which are relevant to our research and which are also a great help regarding the validity of this study. The structure that is chosen is overall definitions, strengths and weaknesses, of promotional products, followed by marketing activities and finally the thesis hypotheses which are going to be analyzed later on in the analysis chapter.
2.1.1 AN OVERALL DEFINITION OF PROMOTIONAL PRODUCTS What is promotion? Promotion is one of the four P´s; product, price, promotion, place, in the product marketing mix. The marketing mix is a framework for the management to be tactical when it comes to customers' relationship and to gain a competitive advantage over its competitors (Kotler & Keller, 2012). Jobber (2010) describes promotion as the marketing communication activities which consist of; advertising, personal selling, sales promotion, public relations and direct marketing. Usually organizations use a combination of promotional strategies to achieve the best results possible (Rowley, 1998). Companies use promotion to spread the word about their organization, product or services. Research is showing that a good way to spread the word is to use promotional products (Carson, 2009). 2.1.2 STRENGHTS Promotional products are decorated or imprinted items which are used to promote services, products or company programs (Carson, 2009). Promotional products have the power to get an effective, targeted message straight in the hands of the potential customers (Carlton and Blaise, 2004). Thorne (2011) states that promotional products have one important characteristic which is different from other advertising methods and that is their staying power. Promotional products are products which can be used for years and every time the customers use the product they are being reminded of the company (ibid).
According to Donald R. Self (2001) promotional products´ have seven main strengths; which are presented below; Target ability is similar to direct mail. It is common for companies to use direct mail for distributing promotional products when the advertiser has control over it. The products are also used to add a motivational lasting ability to direct mail. The waste of the distribution can be eliminated. Lasting ability means that promotional products may have a long life. It is hard to say how many exponents a product gets per lifetime. Creative impact is the high use value for the most promotional products which often involves the user. The involvement is combined with good targeting and creative design. The impact can be based on size, value, personalization or artistic flairs. It can be imprinted on balloons and pens etc. The creative possibilities can be endless of ideas. Goodwill implies that promotional products are the only promotional mediums which have obsequiousness built in. Most of the people like to receive a gift. The word FREE is a very powerful word in copywriting. The goodwill may results in repeated purchases. Loyal customers will recommend the products to others. Free products may be given to solve any simulations of the customer. Tangibility for organizations is to have the ability to have a tangible symbol such as a promotional product which makes a bond between the customer and the organization. The relationship can be seen as proof from a T-
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shirt or a plaque. Flexibility can offer a wide range of promotional products and can be used to demonstrate and in order to represent other media. Motivation may change people´s behavior in response to rewards which can be reinforced though promotional products.
2.1.3 WEAKNESSES Nelson and Kanso (2002) argue that the strengths of promotional products can also be their weaknesses. To have the company´s name and logo on their promotional products may result in the company having too much confidence in the product. For example if the seller relies too much on that the customer will call them back because the customer has received a promotional product, instead of closing the deal directly on the place (ibid).
Imprinted promotional products can have a high production cost, it can vary from £0, 08 to £1276 per unit depending on what the company's goal of the product is (4imprint.co.uk, 2012). If a company gives away a "cheap" pen to a customer which does not reach the customers' expectations could easily result into customer throwing the pen in the garbage can or not use it again which will result in that the pen will lose its long lasting value (Brown, 2008). Using a promotional product which does not reach the expectations of the customer may also indicate that the company does not have the resources to invest in something with better quality which could make the customers think that the company is not successful which may lead to that they do not make a purchase (Thorne, 2011).
2.2 INTEGRATING PROMOTIONAL PRODUCTS IN ONE´S MARKETING ACTIVITIES According to Thorne (2011) the first question companies need to consider before they choose a promotional product is WHY they want to use promotional products. There are several reasons for why a company would want to use promotional products such as; to make the company´s name visible, to influence people to work for them or to say "thank you" to the customers for buying from them. After that companies need to consider WHO they want to serve; families, teenagers, students or colleagues. Once they decide WHO they want to serve companies need to decide WHERE their customers will be using the products. By knowing where their customer will be using the products will help them define what products will be the best fit. Knowing WHO their potential customers are companies can easily decide WHAT their promotional product will be and also help them decide investments (ibid). In this section we will develop all of these factors and give a clearer description of each of them.
2.2.1 THE WHY
Thorne (2011) argues that before companies decide which promotional product they are going to buy, they need to consider WHY they are using promotional products and what purpose they use. Two reasons are addressed in this research: A reason can be that the company´s ultimate goal is to grow revenue by handing out promotional products so that customers will remember the company which will eventually lead to additional purchases and increased revenue (Carson, 2009). McCarthy and Eugene (2008) state that a direct mail which includes a promotional product could increase the
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customer´s response rate by 30%. Carson (2009) argues that results which have been enhanced after repeated doses of the promotional products have led to that people have tried new products which have never tried before. Therefore, surrounding the potential customers with promotional products through repeated mailings can increase the name and the brand recognition for the company (ibid). Another reason for using promotional products which Carson (2009) argues can be to retain current customers. Receiving something like a card holder, clip board or coffee mug will not only make customers come back to the company, it will give referrals. The marketing strategy that the organization uses with the promotional products should include customer appreciation programs. For example for the consumer to receive a coffee mug with a personal note were the company thanking for their purchase and loyalty. The receiver will appreciate the individual touch and the product; it will also leave a long-term impression (ibid). Increased the attention of the availability of a product and positive evaluation of a product can also lead to repeat purchases (Porter & Claycomb, 1997; Bagozzi, 1998; Raghubir, 2004). Muhammed Ali once said," I figured that if I said it enough I would convince the world that I really was the greatest" perhaps "saying it enough" is the key" (Carson, 2009, p.7).
2.2.2 THE WHO
Before companies choose which promotional product they are going to buy, they need to think about WHO it is that is going to receive the product. Therefore companies must determine the characteristics of their potential customers such as; age, gender and occupation (Thorne, 2011). In order to be able to identify those characteristics, to help companies select appealing promotional products which will encourage customers to respond fast to their promotion, companies need to build a solid marketing strategy. To create and support such marketing strategy companies need to be aware of market segmentation, target market and positioning (Carson, 2009).
2.2.2.1 SEGMENTATION
According to Jobber (2010), market segmentation is about identifying individuals or organizations with similar characteristics to thereby facilitate the choice of market strategy. Market segmentation consists of dividing the market into smaller and more similar submarkets. The goal of market segmentation is to identify customers with similar requirements so with the right product or service to obtain the highest rate of return for a product (ibid). Jobber and Lancaster (2009) state that the most common basis for segmentation are age, sex and occupation. Kotler and Armstrong (2008) argue that customer needs and wants change with age. Therefore companies need to identify the age of their potential customers which will enable them to select the right promotional product. Carson (2009) gives an example that teenagers the ages of 13-19 may prefer a free video game or a DVD but may not respond to a CD of classical music. Therefore, dividing the potential customers into different groups based on gender reduces the selection of promotional products. If the company´s potential customers only consist of females, aromatherapy gifts are a good choice rather than golf or barbeque accessories which male customers would be very satisfied to receive. To be able to identify
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the potential customers occupation can facilitate the choice of the right promotional product. Students may want necessary products such as computer accessories, calculators or dictionaries and thesauruses and business professionals may want more luxurious products such as leather computer bags, jewelry and watches (ibid).
2.2.2.2 TARGETING
As mentioned above, target marketing means that companies divide the market into smaller segments with customers who have similar characteristics (Jobber, 2010). According to Blatteberg, Py?ng-do, Byung-Do and Neslin (2008) targeting means to select relevant segments that companies will invest their resources in order to obtain its customers. Companies must then evaluate these segments and decide which they want to serve. As companies evaluate the market segments, they should examine two problems: the market attractiveness and its ability to compete in the segment. The market attractiveness can be assessed by companies looking at market factors, competitive factors, political, social and environmental factors (Jobber, 2010). Jobber (2010) indicates that when companies choose how they should proceed when marketing themselves, they should think about whom they want to target, the number of people they want to reach and how often they are going to encounter with the company's advertisement. Carlton and Blaise (2004) state that for companies to deliver their advertising messages as efficiently as possible, clients need to hear or see the advertisements at least three times before they are ready to respond to it. According to Carlton and Blaise (2004) before choosing a targeting group companies should think carefully of if they are the decision makers and how many they are because that will determine how much the company can afford to spend on each product. When sending promotional products to customers in a specific target market companies should consider gender, occupation and environmental differences. By sending a product which is useful to the customers and which has a good quality will result in a quick respond to the promotion (Carlton & Blaise, 2004).
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2.2.2.1 TARGET MARKETING STRATEGIES
There are four general marketing strategies which companies can choose from when they choose which and how many segments they want to compete in. Those are: undifferentiated marketing, differentiated marketing, focused marketing and customized marketing (Jobber, 2010).
Undifferentiated marketing
Customizes marketing
Target marketing strategies
Differentiated marketing
Figure 2.1 Market Segmentation Andersson & Malinova 2012
Focused marketing
Undifferentiated marketing is a sales-growth strategy which ignores the differences between the segments and develops instead a single marketing mix for the entire market (Jobber,2010; Louis E Bonne & David L Kurtz, 2011 ). Differentiated marketing is a sales growth strategy which is developed when the market segmentation shows several potential targets and such strategy is then developed to appeal to some or all of the segments. (Jobber, 2010; Havaldar, 2010) Unlike undifferentiated marketing there is a disadvantage of the differentiated marketing which is the loss of economic cost but the use of flexible manufacturing systems man minimize such problems (Jobber,2010). Focused marketing is a growth strategy and means that companies are developing a marketing mix that aims at one target market. The main idea of focused marketing is that companies should focus their efforts on the relatively small proportion of customers who account for a disproportionate share of the sales of a product. This strategy is most appropriate for companies with limited resources (Jobber, 2010). Customized marketing means that companies are trying to adapt the product or the service messages to the unique needs of the customer. This type of marketing is often related to companies have a very close relationship with their customers and that these customers can be extremely wealthy (Jobber, 2010).
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2.2.2.3 POSITIONING
According to Jobber (2010) positioning is the process by which companies create and try to maintain a clear image or identity their target market for their products, services, brand or the organization itself. A successful positioning is often associated with products and services which have a good impression among customers (ibid). Ries and Trout (2001) indicate that companies position their product in the mind of the potential prospect. Companies which are successful in their target market have different advantage compared to their competitors with providing customer with special advantages. Jobber (2010) states that successful positioning is mostly connected with products processing positive associations to its customers. Such positioning is generally difficult to achieve and relies on four factors, the 4´Cs (ibid). Arora (2006) argues that knowing what consumers prefer is essential for positioning. Fuchs and Diamantopolous (2010) state that the aim of positioning is to find the highest utility for the most profitable customer segment or to differentiate itself from the competitors.
Clarity
Credibility
Successful positioning
Consistency
Figure 2.2 Market Segmentation Andersson & Malinova 2012
Competitiveness
Clarity: Jobber (2010) states that the positioning idea must be clear about the target market and the differential advantage as complicated positioning statements are difficult and not likely to be remembered. Consistency: Everyday people are met by some form of advertising with a message and to be different and be remembered by customers, companies need to create consistent messages Jobber, 2010). Credibility: The differential benefit which is chosen must be credible with the target customer (Jobber, 2010). Competitiveness: According to Jobber (2010) the differential benefit should have a competitive advantage which should offer something of value to the customer that competitors cannot.
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2.2.3 THE WHERE
Thorne (2011) states that the third decision is to decide WHERE the customers will use the products. By knowing where they will use the product the company can determine where it will fit in best, for example on the desk or in the kitchen. Carlton and Blaise (2004) say that the companies should be aware of where the customers will mainly be using the product and by that give the company advantage on the market. According to Pennington (2002), the successful selection of promotional products depends on how high their value is for the customers. Products can be necessary, convenient or luxurious. Therefore is the selection of right promotional products essential to getting the most effective impact on customers as possible (Pennington, 2002). Carlton and Blaise (2004) give an example in their study of the product value of the customer itself. " Four wheel drive, luxury vehicle owners may ski or hunt, wear top of the line clothing, expect to travel in comfort and style, and want to look good while doing so" (Carlton & Blaise, 2004, p.55). So why not give the customers a "good" sports bag with the company logo when he or she buys a £100.000 vehicle? Since promotional products reflect the company´s image it is therefore important for the companies to choose products based on what the consumers consider as a good product (Carlton &Blaise, 2004). Additionally, Pennington (2002) says that regardless the choice of product is mainly based on functional or appealing depends on the determined value of the product on the situation of the advertising and the goal of it. When promotional products are used as a way for the company to advertise itself, the functional value should be balanced with the attractive value. By combining these two factors companies may satisfy both those who want functional product that are useful for them as well as those who just want an appealing product with an attractive design (ibid). According to Thorne (2011) to work with people in the trade markets and not to give them a good promotional item that they have used to is just waste of money. They will not appreciate it. The problem is that the good promotional products are expensive and getting appropriate products is tough. Thorne (2011) gives two examples to consider when analyzing the customers values. Firstly, is to dig deeper and try to find out more about the markets values and activities. Secondly, is to help them in their job environment by doing their jobs cheaper, better and faster by for example giving them a free coffee coupon or to fill up their gas tank (ibid). Pennington (2002) argues that when companies give away promotional products their customers should not see the company as a giver of things but as a giver of quality and value. Such product that reflects these characteristics invites the customer into establishing a relationship with the company (ibid). Pennington (2002) says that the value of the product is often related to its functional category. Necessary products have a minimum value and luxury products have the greatest value. The reason for this is that the necessary products are widely available and because lack tends to increase the value, the available products have less value than the less available (ibid).
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2.2.4 THE WHAT
When companies find out WHY they are going to use promotional products, WHO they are going to target and WHERE the customers are going to use the products they need to know WHAT promotional products they are going to use to promote themselves with. Two major studies have addressed this issue. First, in 2005 the PPAI (Promotional Product Association International) made a study based on 839 American business people. The study showed that companies spend more than £18 billion on promotional products in only the United States. 95 per cent of this survey says that they use promotional products in promoting their businesses (Carson, 2009). The study displays the top ten bestselling individual promotional products; 1. 2. 3. 4. 5. Pens Mugs and cups Golf and polo shirts T-shirts Caps and hats 6. 7. 8. 9. 10. Calendars Jackets Key tags and rings Tote bags Mouse pads
Second, Carlton and Blaise (2004) display a survey which was also made in the U.S to find out which products that are the most popular. Carlton and Blaise (2004) argue that there are over 650 000 promotional products offered by promotional products suppliers and the 11 topselling are: 1. Wearable's 29,3 % 2. Writing instrument 10.6% 3. Desk/office/business accessories 7,6% 4. Calendars 7.0% 5. Bags 5,9% 6. Glassware/ceramics 5,5% 7. Recognition awards /watches & clocks 4.0% 8. Magnets/buttons/badges/ribbon/stic kers 3.5% 9. Automotive accessories 3.5% 10. Sporting goods/leisure products/travel acc. 3.3% 11. Computer Products 3.1%
Beyond this list, it is a central to understand that a couple of products are no longer as useful now as they were before. Thorne (2011) argues that for example mouse pads are still useful but as the technology continues to develop fast and as the mobile computing is rapidly growing into a dominant market position, people are using desktop computers less which contributes to that the mouse pads are not used as much any longer. Technology is developing rapidly and therefore is the USB drive probably one of the greatest promotional products to use for companies nowadays. USB is environment-friendly if they are made of recycled materials and they also eliminate the need of distribution of paper (ibid). Thorne (2011) also states that magnets are becoming less useful because we have less metallic surfaces on which to place them. It is time to think about other materials that can replace the metal magnet which can be attached to other surfaces also. Finally, T-shirts are perhaps one of
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those promotional products which will not disappear soon. T-shirts are one of the few products that are always needed and can be used anytime (ibid).
2.3 HYPOTHESIS Based on the presentation of our theoretical review, four hypotheses are developed.
2.3.1 HYPOTHESIS 1
The WHY theory has indicated that by handing out promotional products the company´s name and brand recognition increases which also increases customers response rate and therefore we want to test the following hypothesis in order to test whether customers positively relate the promotional they have received to the company. Hypothesis 1: People who have received a promotional product positively relate the product to the company.
2.3.2 HYPOTHESIS 2
Grounded on the previous theory, the WHO, segmentation of customers with similar characteristics that helps companies to choose which segment they want to target and which promotional product is fits this target market best. Based on this theory we have developed the following hypothesis: Hypothesis 2: Customers within the same target market want the same promotional products.
2.3.3 HYPOTHESIS 3
Based on the WHERE theory, the value of the promotional product has usually a high impact on how often the product will be used by the customer. In order to fulfill those values, the companies need to have in mind where those products will be used. We want to examine whether necessary products such as computer bag, calculator, pen, calendar and towel are most often used at the workplace. Hypothesis 3: Students and workers want necessary products for their workplace.
2.3.4 HYPOTHESIS 4
The WHAT theory has shown that writing instruments are the top bestselling promotional products and also that they have a high value when it comes to what companies prefer to use as promotional products. Therefore we have decided to test the following hypothesis to see whether the respondents also think that the writing instruments are the best promotional products. Hypothesis 4: The respondents prefer pens over all other promotional products in diverse industries
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3. METHODOLOGY AND METHOD
In this chapter we give the reader an overall understanding of how we proceeded to collect the data, which research methods we have used, and also argue why we have chosen to use those methods. Furthermore, we explain the design of the questionnaire and how we proceeded to get our questionnaire to reach as many respondents as possible. Finally, we discuss the non-response of the survey.
3.1 POSITIVISM OR HERMANEUTIC Two scientific approaches of how we can understand and know something about reality are: positivism and hermeneutic:
Positivism has its roots in science which means that the ambition is to create a secure "positive" knowledge of a research (Thurén, 2007). It is a science theory with an ontological vision that the world can be described by legislation and laws. Positivism can gather data about an objective reality and it can be studied with objective methods and measurements (Jacobsen, 2002). Jacobsen (2002) states that positivism focuses on quantitative method which is a way to collect information through numbers. It has a strong emphasis on deductive approaches which means that the researcher goes from theory to empirics and is mostly used in quantitative studies. Positivism has also a theory of knowledge that the research would be cumulative. Cumulative means that the research is built on previous studies. The research is also always looking for a relationship between cause and effect known as causal explanations/ causal relationships (ibid). The person who uses positivism as an approach examines things, but has always in mind that it is possible that the results could be wrong (Thurén, 2007). A positivism examination should be performed and described in numbers (Jacobsen, 2002). Jacobsen (2002) explains that hermeneutic could be seen as an opposite of positivism in the sense of trying to understand the reality. The knowledge theory of hermeneutic is that the research should be unique and peculiar. Humans have constructed reality and it must be studied and examined how people perceive reality. Hermeneutic focuses on qualitative data and has a strong emphasis on inductive approaches. A hermeneutic examination should be performed and described in words, qualitative research (ibid).
3.1.1 RESEARCH APPROACH
According to Jacobsen (2002) methodology is used to give a description of the so called reality which we are living in. Methodology is also used as a tool to collect empirical data. Empirical data can also be called "data about reality" and it can be reflected back to ontology. Ontology is a science of how the world actually looks like (ibid). Choosing the right method is of great importance for our study because it says how we are going to collect data about the reality and according to Jacobsen (2002), there are two different approaches to choose from; inductive and deductive approach. Therefore, we decided to work with the deductive approach. As mention in the previous section the deductive approach means that the researcher goes from theory to empirics and is mostly used in quantitative studies. Unlike the inductive approach in the deductive the
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researcher has already gained some expectations about reality, and he or she collects empirical evidence to see if those expectations are in compliance with reality. These expectations are based on previous empirical research and previous theories (Jacobsen, 2002). When the researcher uses inductive approach he/she is working from empiricism to theory. The researcher has absolutely no expectations about reality and collects all relevant data. After the researcher has collected the data, he or she systematizes the data and then formulates the theories. The purpose of the inductive approach is that nothing will limit what and how much information the researcher collects. The inductive approach is mostly used in qualitative studies because this method is more open to new information (Jacobsen, 2002).
3.1.2 INTENSIVE OR EXTENSIVE
There are two different approaches that can be used when the issue is clearly defined. These two are intensive approach and extensive approach. According to Jacobsen (2002) intensive approach means that the study will go in depth with a problem and try to show as many conditions as possible in one or more cases. The purpose of such an intensive study is to obtain a picture that is as complete as possible of a situation, an event or a phenomenon. Intensive approach is a good opportunity to collect relevant data, but an impossible way to generalize to a larger population. Such a study is also very costly because it takes time to collect data and it requires enormous amount of analytical work. Intensive approach is most likely to be used when a qualitative research is done and therefore we consider the most appropriate and relevant approach to be the extensive approach (ibid). Jacobsen (2002) states that the extensive approach is broad and examines many units, but does not grasp so many variables. Such a study allows generalization, but it can be shallow as the data becomes less relevant. The extensive approach can see how a phenomenon occurs in different contexts. Extensive approach also obtains an exact description of the phenomenon´s scope and different relationships between the phenomenon and other variables. To carry out such a research of many devices, increases the likelihood that they may produce results which can be generalized to the entire population (ibid). We want to conduct a survey on a small segment and to generalize the results to a larger population. Therefore, an extensive approach suits our research better. It examines the differences and similarities between several units, and is therefore suitable if we want to identify the relationship between different conditions. An important connection for intensive and extensive approach is qualitative and quantitative method which will be explained in the section below.
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3.1.3 QUALITATIVE OR QUANTITATIVE
Qualitative method is a method to collect information in terms of words. It is a data-gathering technique which focuses on understanding of social phenomena in their natural environment (Thomas, 2003). Qualitative research involves studying and collecting empirical material through such as case studies, life stories, interviews or observations (Denzin & Lincoln, 1994). The information which is collected is often written down in notes or recorded. The qualitative collection of information is almost always intense and goes in depth with a few units (Jacobsen, 2002). Qualitative research is often used when researchers have a little knowledge about on the topic or when there is a problem which needs to be explored in detail (Liamputtong, 2009). Nevertheless, we have chosen to use quantitative method in our thesis which is a way of collecting information through numbers (Jacobsen, 2002). Jacobsen (2002) states that quantitative method is used when the researcher has good knowledge about the subject, when he or she is testing theories and hypothesis. The quantitative research goes in line with the deductive approach which means that we already have some expectations about the reality which we want to test in order to see if those expectations are consistent with the reality (ibid). Thomas (2003) argues that quantitative research differs from qualitative research in that the quantitative seeks general descriptions or tests casual hypothesis. It searches measurements, and analyzes which can be easily replaced by other researchers. Jacobsen (2002) says that the quantitative collection of information is used when the researcher wants to know a little about several units. The quantitative collection of information is in compliance with the extensive approach which the same as the quantitative research is broad and examines many units (ibid). Jacobsen (2002) also states that unlike qualitative method which is used when the researcher want to know what a phenomenon contains, the quantitative method is rather used when we want to know how often a phenomenon occurs. The collection of the quantitative data is done by developing and designing questionnaires with given answer options. They are usually in the form of postal questionnaires or telephone interviews (ibid). Jacobsen (2002) argues that the quantitative approach has the advantage that we can reach numerous respondents to get a good selection of people and it is easier for us to generalize the people we are interested in. We can also describe a relationship relatively exact. It is easier to structure the information which we collect and it is also easier to keep distance from the people we investigate so our investigation becomes impersonal as the respondents are not affected in the same way as they do in a qualitative research (Jacobsen, 2002).
3.1.4 COLLECTION OF DATA
In order to collect the information which is needed for such analytical dissertation, two different types of data can be used; primary data and secondary data. Primary data is data that is collected through interviews, observations or questionnaires. The researcher collects the research data for the first time from the information sources he or she uses. (Jacobsen 2002)
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According to Jacobsen (2002) secondary data is not collected by the researcher himself/ herself from the very source but it is data collected by other researchers for other purposes. Such secondary data can be marketing reports, statistics, financial statements etc. Jacobsen (2002) also argues that secondary data cannot always be relied on and before using this data, the researcher must always lay down great emphasis on how credible the sources are, where the data is collected from and who collected it.
3.1.4.1 THE SELECTION AND COLLECTION OF SECONDARY DATA
The collection of secondary data was found by studying general information on promotional products in books and articles in our university library at University of Westminster. By studying the existing literature, we found that there is a lack of books and articles which dealt specifically with promotional products. Yet we managed to find some keywords which facilitated our search for data that was relevant to our research. Some of those keywords are; promotional products, promotional items, promotional gifts, product advertising, promotion, promotion methods and swag. With the help of those keywords, we were able to find journals and articles in databases such as Emerald, Jstor and Taylor and Francis Online. During the collection of secondary data, we kept in mind Jacobsen´s (2002) advice which was to make sure to collect information with a given author and that the information was relevant to our research. We were also careful with not trusting only one source so we have validated our findings by testing them against other sources.
3.1.4.2 THE SELECTION AND COLLECTION OF PRIMARY DATA
The primary data that was collected, was in form of an online-questionnaire. As we mentioned earlier in our thesis, according to Jacobsen (2002), by using quantitative research we can reach a large scale of respondents in order to get a good selection of people. Therefore, the reason why we chose to conduct an online-questionnaire was because we believe that it is the easiest way to reach as many potential customers as possible. We also believe that we had a bigger chance of collecting more data through an online-questionnaire. Making such questionnaire made us more comprehensible of how customers think. Jacobsen (2002) says that it is important to avoid technical terms which not everyone understands or which could force the respondent to think for unnecessarily long time. Therefore, we made the questionnaire queries easy and understandable for everybody so they easily could follow our idea and also that no misunderstanding could occur. According to Jacobsen (2002) it is costly to send out postal surveys because a questionnaire for every respondent needs to be printed out. Therefore, we consider our study price-cheap with the motive that we do not need to print out a questionnaire for every respondent and also that larger scale of people could be reached. We posted the questionnaire to our friends on Facebook, Twitter, Skype and Hotmail as the intention is to identify potential customers for the future and we have mostly young people as friends on those social networks. The reason for not choosing any other methods for sending out the questionnaire was because the method
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we chose reaches the respondents instantly and is very time-saving compared to postal surveys and visit or telephone interviews. When we collected the primary data through the online-questionnaire we gave the respondent some preference around a given formulation. We began with an introduction of our research and the aim of it. Jacobsen (2002) claims that many people refuse to answer the questions because they fear that their answers will be linked to them personally and therefore it is very important to guarantee the respondent full immunity. Therefore, we made it clear to our participants that they are guaranteed full anonymity. We pointed out how the information they provide is an important basis for our investigation and also thank them for taking time to participate in our survey (Wärneryd, 1993). We had subsequently a 1:5 and 1:7 scale categories as well as "Yes" and "No" questions with open follow up questions which provided us with better results as well as better prognosis. We have used a 1:11 scale categories where we wanted to see where promotional products are mostly used, included "other" choice. On the questions about which promotional products were the best overall and used by certain industries we had list of 20 promotional items and other. The answer choices were both ranked and categorized (Wärneryd, 1993).
3.1.5 THE CREDIBILITY OF THE RESEARCH
Jacobsen (2002) states that the survey is used as a method to collect empirical data. Such empirical data should meet two important requirements which have an effect to minimize problem in the survey.
3.1.5.1 RELIABILITY
According to Jacobsen (2002) reliability means that the survey must be able to rely on. It must also be conducted in a credible way, a way which arouses trust. If we do the same research over and over again and we receive the same results then we know that it has high reliability (Jacobsen, 2002). When we made the survey we tried to keep the language easy to understand, we were also being careful to not use misleading questions in our investigation to mislead the respondents in a certain way. Jacobsen (2002) argues that it is important to test the questionnaire before sending it out. Hence, to be sure that the questionnaire met these requirements, we conducted the questionnaire on a small test group of eight people in order to see if they understood the questions and their implications. Simpler English words would help the respondents which had limited vocabulary of the English language to understand the questions better so that the questionnaire would not become misleading. We were also being careful not to use misleading questions in our questionnaire in order not to mislead the respondents in a certain way. To mislead the respondents can lead to specific response which can lead to errors in the results (Jacobsen, 2002).
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3.1.5.2 VALIDITY
According to Jacobsen (2002) validity is used to determine whether the obtained results meet the requirements of the scientific research. Often can results received from a small study based on smaller segments be transferable to bigger groups of interest such as population (ibid). We believe that the validity of our study increased since we did an online survey where our participants could do the survey whenever they had time for it, without feeling pressured or stressed. Compared to a personal interview when a qualitative research is applied where the interviewee can feel stressed because he does not have enough time to think through his/hers response which can lead to a decrease of the validity. Since we are writing this dissertation on distance to Halmstad University, Sweden, from the University of Westminster, United Kingdom our survey will consist of Swedes, other Europeans and people from outside Europe. We are aware of this and it can mean that it will be some distortions of culture and results. Dolnicar and Grün (2007) indicate that the fact that the respondents are from different cultural backgrounds could distort results and cause misinterpretations of the data. A reason for this result could be that cultural values which influence the answer patterns are not the same among the respondents (ibid).
3.1.6 MOTIVES FOR THE CHOICE OF METHODOLOGY
Because we based the study on previous theory we are going to use quantitative research when we go through with our study. Jacobsen (2002) indicates that we should use quantitative research when many units are being investigated in order to draw conclusion about a larger population. We are interested in a more broad area of collecting information and we therefore think that this sort of research suits us best. During our research we have noticed that there is a slight study of quantitative researches on the promotional products. We are interested to ask a broader area of people what they think about promotional products. We will use both primary and secondary data in our research process which is needed for us to be able to find answers to our gap in this study. We will be critical and carful with the secondary data that we use to avoid that our study will be based on misunderstandings.
3.1.7 CRITICAL REVIEW OF THE CHOSEN METHODOLOGY
Jacobsen (2002) argues that the weakness of using a quantitative approach towards using qualitative is that the questionnaire in most ways has solid answers. The quantitative approach consists of numbers with answers given by the responses. The qualitative method consist of words and it works from an open discussion between the investigator and there respondent. This makes the qualitative method more open than the quantitative (ibid). According to Jacobsen (2002) the advantage with the qualitative method is that the researcher can go more into details with the respondent. The investigator works close with the respondent and has the change to go "under the skin" of the respondent to understand a phenomenon or a situation better. It makes the qualitative approach more flexible and it gets a chance to change the problem and data collection method investigation under the time. Quantitative method is relatively closed compared to the qualitative. It does not go in depth with the problem but is broad and examines many units and gives us at the same time a more exact answer of the problem (ibid).
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3.1.8 METHOD TO ANALYZE
1. Research subject
2.Slight litterature study
3. Problem statement
4. Deeper litterature study
8. Representation of the data
7. Collection of data
6. Design of questionnaire
5. Formulation of theories
9. Analysis
10. Conclusion
11. Recommendations
Figure 3.1 Model of method to analyze Andersson & Malinova, 2012 1. The process started with a discussion on areas we thought were interesting to work with and if we could find that something was not discovered yet. 2. We selected a topic and started to look for purpose and problems, through a broad literature. 3. When the problem was discovered, the structure of our process changed. 4. In order to assess the theoretical framework, a deeper study of the subject was made. 5. The literature that was collected was designed to determine which theories were needed for the theoretical framework. 6. We were able to design the questions based on the theoretical framework we had collected. A pre-questionnaire did it possible to get feedback on our chosen questions. 7. The questionnaires were sent to the respondents via Facebook, Twitter, Skype and Hotmail. 8. The data was summarized in excel and SPSS to get a better overview of the necessary charts and graphs in the survey. 9. The analysis was determined by the weaknesses and the strengths of the theoretical findings and what the questionnaire states. 10. The conclusion concludes the results of the analysis. 11. Recommendations were given for further research.
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3.2 METHOD In this section we describe the structure of the survey and the design of the questions, the answer choices, and the test group.
3.2.1 DESIGN OF QUESTIONNAIRE
As we mentioned earlier in the methodology chapter we have chosen to conduct a quantitative research which means that we can conduct the survey through a questionnaire to collect the primary data. According to Jacobsen (2002), there are both positive and negative aspects of the use of a questionnaire. A positive aspect is that we can reach a wider range of respondents and thereby acquire as many consumer opinions as possible about promotional products. One negative aspect which Jacobsen (2002) describes is that respondents will be affected by how the questionnaire is conducted and there are risks that relevant information can be lost because it was not asked in the questionnaire, which we could have done if we made a qualitative research (ibid). As we have mentioned earlier, we believe that the validity of our study increased as we conduct an online survey, in that way we give our respondents more time to think through their answers without feeling stressed or pressured. Jacobsen (2002) indicates that the design of the questionnaire must be very well thought through to be able get as good results as possible. Jacobsen (2002) also says that when designing a questionnaire it is important that the questionnaire is not too long, the shorter the better and the questions must be easy to understand. Many and long questions will only tire out the respondent which may result in that the respondent does not complete the questionnaire. To get the best results possible, we have taken all these facts in consideration (ibid). After careful deliberation and evaluation of different survey websites we chose to go with www.freeonlinesurveys.com for our research questionnaire. We paid a small amount of money to use the site and its extra features like for example, to be able to have more than 50 respondents. Our survey consisted of 16 questions which were made by 205 respondents. The final version of the questionnaire is to be found in appendix 1.
3.2.2 CHOICE OF QUESTIONS
According to Jacobsen (2002) whatever research questions the researcher chooses between, there are some rules to remember before configuring those questions. To formulate the questions is of great importance to create the questionnaire, which will be significant to establish and analyze of the result (ibid). Our questions have been established to strive simplicity by using easy English language and by having short questions and termini sentences. To determine whether the questionnaire was relevant to our research a pre-survey was done. We chose to have eight individuals who tested our investigation based on our theories. The pre-survey study made it possible for us to change the questionnaire so the survey would be more relevant to the theories we had.
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The questionnaire was designed to have "harmless" questions in the beginning and sensitive questions in the end of the survey where we dealt with sensitive areas such as asking about age, gender, country and occupation. We have also designed the questions to be neutral to reduce any leading directions of the respondents. Although some questions are considered as leading answers such yes, no and I do not know. In order not to mislead the respondent completely we chose to have a middle class i.e. I do not know as a middle choice for the respondent to not force him or her to just choose a question (Jacobsen, 2002). The questionnaire began with general questions concerning if the respondents have received, are using and why they think that they received a promotional product as well as questions as if they remember the company that gave them the promotional product. The second part considered what type of product they choose between and where they believe it is most useful. The third part considered sensitive questions such as age, gender, occupation and country.
3.2.3 RESPONSE OPTIONS
Jacobsen (2002) argues that the questions in the survey must be designed as accurately as possible to avoid issues to provide undesirable results. To minimize the impact of undesired results we have used one open question. Jacobsen (2002) says that the open questions should be used when the investigator does not have an overview of all possible options, which is the case here. The open question may also have a backside and can be the biggest cause to a blank answer. Due to the fact that the respondents do not have the right knowledge or it may be so that they do not care enough about the survey to give a relevant answer (ibid). However open questions may also make it difficult for the researcher if he/she receives many different answers. That is why we chose just to analyze a few of our answers of the open question. Wärneryd (1993) argues that in order to achieve the best results possible it is best to use a 1:7or 1:11 response scale. We have on two occasions used a 1:7 or 1:11 scale when we could cover the most of the interrogation area with it. However we chose to not use any of these scales when we wanted answers on what promotional product that suit the respondents' best in respective industry. We felt that it would limit our response options too much and that our survey would not be as broad if we used 1:7 or 1:11 responses. To vary the size of our options we also felt that we could generalize better than only using a scale of 1:7 or 1:11. The respondents had the choice to choose between maximum three options on promotional products which suited them best in general and in different industries. We chose to have 20 options on products respondents could choose from as well as other if they did not like the alternatives and not to force the respondents to select an option they did not like.
3.2.4 TEST GROUP
Jacobsen (2002) states that the only way to really find out whether the questionnaire is fully understandable and properly structured is to test it against a small group. Performing such a test could be of great importance because it reduces the risk of getting answers which are unusable. Jacobsen (2002) recommends testing the questionnaire on four to six respondents. Therefore, in order to obtain as high validity as possible, we chose to test our questionnaire on
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eight respondents. After all eight respondents completed the questionnaire; they were encouraged to identify errors and other confusions such as punctuations, spelling mistakes and other aspects that we could improve. Considering that English is not our mother tongue, we had obviously some punctuation and spelling mistakes which we later corrected. In general, the respondents found that the questionnaire was easy to understand and also very interesting.
3.2.5 THE RESEARCH PROCESS
In order to reach as many people as possible, we used several social networks such as Facebook, Twitter, Skype and Hotmail, to send out our questionnaire. We considered that using those social networks was the easiest way for us to reach as many people as possible. In order to do so, we took the help from our closest friends in order to help us promote the survey. The survey was conducted by 205 people. All respondents were anonymous throughout the process.
3.2.6 INTEPRETIVE TOOLS
For the purpose of interpreting the collected data we used software tools such as Excel and SPSS. Excel is a software which helps create, edit and analyze data which is organized in lists and tables (MacDonald, 2010). SPSS (Statistical Package for the Social Sciences) is a software which manages and carries out basic statistical analysis (Wagner, 2009). To begin with, we interpreted the collected data in SPSS. Later were graphs and charts made in Excel from the collected and interpreted data. We also tested our hypotheses in SPSS were we inter alia used the Chi-square test. Chi-square test is usually used with discontinuous data involving counts of individuals or units divided into mutually exclusive categories (Nesbitt, 2008). Some of the analyses of our hypotheses were then were made again in SPSS, in form of tables, as it was easier to interpret the data.
3.2.7 RESPONSE RATE
Of these, 205 who conducted the questionnaire, it was 188 or 91.7% who completed the entire questionnaire. The major reason that 17 or 8.3% of the respondents did not complete the entire survey could be that we used overlapping systems, where the respondents who answered "No" to the first question had to jump directly to the sixth question, the reason of that was that the following questions were not relevant to them. Another possibility could also be that the non-responding respondents did not feel that they had time to answer the questions properly or that they did not have any interest to answer the questions. Yet another reason could be that the respondents' lack knowledge of the subject or that they did not understand the question so they left it unanswered.
3.2.8 SAMPLING METHOD
We used the random sampling method where each member of the population had equal chance to be selected (Jacobsen, 2002). Jacobsen (2002) argues in one of his rules of how a large sample should be that a range between 400-600 units is sufficient to achieve good precision, and to process the information in a good way. And since Jacobsen (2002) also states that a selection of less than 100 units complicates the analysis of information simultaneously as errors increases. We consider a range of 150-250 to be sufficient to ensure
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the reliability of the results. The number of our sample was 205 respondents, which was within the limits of what we expected.
3.2.8.1 SAMPLING MATERIAL
Of all respondents in Q13, 64,2% (124) were from Sweden, 18,1% (35) were from outside Europe and 17,6 (34) were from other European country.
Q13: What Country
Sweden 18,1% 17,6% 64,2% Other European country Outside Europe
Q15: Occupation
1,5% 3,1% Worker 28,1% Student Unemployed Other
67,3%
Pie Chart 3.1 Country Andersson & Malinova 2012
Pie Chart 3.2 Occupation Andersson & Malinova 2012
Q14, Q15 and Q16 were about the respondents' age, occupation and gender. The respondents age group was a range from 16- 64, where 80% (156) of those who completed the survey were between 16-24 years old. The majority of the respondents were students of 67,3% (132) followed by workers of 28,1% (55). The division between the genders was very equal with a slight advantage for the female gender with 50,3% (99) and 49,7% (98) with respondents of the male gender.
Q14: Age
5,1%
Q16: Gender
14,9%
16-24 25-44 80,0% 45-64 49,7% 50,3%
Male Female
Pie Chart 3.3 Age Andersson & Malinova 2012
Pie Chart 3.4 Gender Andersson & Malinova 2012
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4. EMPIRICAL MATERIAL
In the following section, we explain the questionnaire design, the choice of questions, the response options, and the testing of questionnaires followed by the result from the collected data in form of text and diagrams.
4.1 RESEARCH RESULTS AND STATISTICS This section displays the data results from the online questionnaire in form of graphs as an explanation over the answers and outcomes (see appendix 2).
4.1.1 GENERAL AND KNOWLEDGE BASED QUESTIONS
As we mentioned earlier, the questionnaire begins with general questions to test the respondents' actual conditions of receiving and using of promotional products. All of the 205 respondents answered the two first questions in the questionnaire. In Q1, 93,9 % (184) of the people answered that they have received a promotional product from a company. 5,1% (10) had never received a promotional product before and only 1,0% (2) of the respondents did not remember. Furthermore, in Q2, 41,5% (78) of those who have received a promotional product said that they use it rarely, while 39,4% (74) use it often and 16,0% (30) use it every day.
Q1: Have you ever received a promotional product from a company?
Yes No Do not remember 0% 5,1% 1,0% 20% 40% Do not remember 60% Yes 80% 100% 93,9%
No
Diagram 4.1 Receiving promotional products Andersson & Malinova 2012
Q2. Are you using the promotional product that you received?
41,50% 39,40% 16,00% 3,20% 0 0 0,05 0,1 Other 0,15 Never 0,2 0,25 Yes,in everyday lfe 0,3 Often 0,35 Rarely 0,4 0,45
Diagram 4.2 Use of promotional product Andersson & Malinova 2012
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Q3, Q4 and Q5 were constructed in order to measure the knowledge of the respondents based on promotional products. When we asked the respondents in Q3 why they think that they received a promotional item in, 76,6% (144) answered because they thought companies wanted to promote their business. Additionally, in Q4, 74,5% (140) of the respondents remembered which company gave it to them. Q3: Why do you think that you received a promotional product?
76,6% 8,5% 6,9% 3,2% 2,1% 1,6% 1,1% 0,0% 10,0% 20,0% 30,0% Other To promote an upcoming event To encourage a purchase To promote their business 40,0% 50,0% 60,0% 70,0% 80,0% 90,0% To promote an existing product To introduce a new product As a "thank you" for making a purchase
Diagram 4.3 Reason Andersson & Malinova 2012
Q4: Do you remember which company you received it from?
Yes 74,5%
No
25,5%
0,00%
10,00%
20,00%
30,00%
40,00% No Yes
50,00%
60,00%
70,00%
80,00%
Diagram 4.4 Remember the company Andersson & Malinova 2012
Q5 was designed as a follow-up question for those who answered "NO" to Q4. The reason for this was because we wanted to know why they did not remember which company it was that gave them the promotional product. Some of the respondents said that it was a long time ago they received the product, they have received products from too many companies and they do not remember the names of all of them, the company did not interest them or that the gift was insignificant.
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4.1.2 ETHICAL QUESTIONS
Q6 to Q12 have measured the respondents' feelings, attitudes and opinions on various conditions and what they think of the phenomenon. 41,0% (80) of the respondents in Q6 said they would prefer to receive a necessary promotional product and only 12,3% wanted to get an attractively designed product from a company. Q6: What type of promotional product would you prefer?
41,0% 27,2% 16,9% 12,3% 2,6% 0,0% 5,0% 10,0% 15,0% Other A luxury product A necessary product 20,0% 25,0% 30,0% 35,0% 40,0% A attractively designed product A convinient product 45,0%
Diagram 4.5 Preference Andersson & Malinova 2012
When we asked the respondents in Q7 where it would be most beneficial for them to use a promotional product, 33,0% (64) of them said the office would be the most beneficial place and 25,3% (49) would want a product which they could use in school.
Q7: Where would it be the most beneficial for you to use a promotional product?
33% 25,3% 12,4% 6,7% 4,6% 4,6% 4,6% 4,1% 3,6% 1 % 0 % 0% 5% In the garden In the badthroom Other 10% 15% 20% In the garage In the livingroom In the kitchen Diagram 4.6 Beneficial Andersson & Malinova 2012 25% 30% 35% In the bedroom In the car For exercising/doing sports
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In Q8, 16,0 % (99) of the respondents said that they would like to receive a USB from a general industry and 13,1% (81) of them would like to receive a Pen. The least popular product was the Cap which only 1,0% (6) of the respondents could consider receiving.
Q8: Which of the following promotional items would you like receive from a company?
16% 13,1% 7,1% 6,9% 6 % 5,5% 5,5% 5,5% 5 % 3,7% 3,6% 3,6% 3,4% 2,7% 2,4% 2,3% 2,1% 1,9% 1,5% 1,3% 1 % 0% 2% Cap pack golf Jewlery Water bottle USB 4% Other Wallet Jacket T-shirt 6% 8% 10% Alarm clock Tote bag Mug Computer bag 12% 14% Key chain Watch Calendar Umbrella 16% 18% Mouse pad 6 Calculator Towel Pen
Diagram 4.7 General Industry Andersson & Malinova 2012
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17,5% (99) of the respondents would prefer to receive a T-shirt as a promotional product from a CLOTHING & ACCESSOERIES company, whereas 13,2% (75) would like to receive a Jacket and according to 0,2% (1) respondent, the most unbeneficial product is a calculator.
Q9: Which of the following promotional items would you like to receive if it is a CLOTHING&ACCESSORIES company?
17,5% 13,2% 9,2% 9,2% 7,6% 5,6% 5,1% 5,1% 5,0% 4,8% 3,7% 3,4% 1,9% 1,9% 1,6% 1,2% 1,1% 1,1% 0,7% 0,7% 0,2% 0,0% 2,0% 4,0% 6,0% Mouse pad Key chain Computer bag Umbrella 8,0% 10,0% Mug Calendar USB Towel 12,0% 14,0% 16,0% 18,0% 20,0%
Calculator Other Cap Wallet T-shirt
Alarm clock Water bottle Tote bag Jewlery
6 pack golf balls Pen Watch Jacket
Diagram 4.8 Clothing & Accessories Industry Andersson & Malinova 2012
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In Q10, the most popular promotional products to receive from a HEALTH CARE company are Water Bottle 14,9% (78) and Towel which 13,2% (69) and the least attractive product was the Cap 0,6% (3).
Q10: Which of the following promotional items would you like to receive if it is a HEALTH CARE company?
14,9% 13,2% 12,8% 7,8% 7,6% 6,3% 5,0% 4,6% 4,4% 3,4% 2,9% 2,5% 2,3% 2,3% 2,1% 2,1% 1,7% 1,5% 1,1% 1 % 0,6% 0,0% 2,0% 4,0% Mouse pad Watch Tote bag Mug 6,0% 8,0% Wallet 6 golf balls T-shirt USB 10,0% 12,0% Jewlery Key chain Other Pen 14,0% 16,0%
Cap Alarm clock Jacket Calendar Water bottle
Calculator Computer bag Umbrella Towel
Diagram 4.9 Health Care Industry Andersson & Malinova 2012
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The most popular promotional product to receive from an ELECTRONICS company in Q11 is the USB 27,9% (153) followed by the Computer bag 13,8% (76) and the least popular is Jewelry 0,2% (1).
Q11: Which of the following promotional items would you like to receive if it is an ELECTRONICS company?
27,9% 13,8% 11,1% 9,3% 8,7% 6,2% 4,7% 2,4% 2,2% 2,0% 1,8% 1,5% 1,5% 1,3% 1,3% 1,3% 0,90% 0,7% 0,7% 0,5% 0,2% 0,0% 5,0% Jewlery 6 pack golf balls Towel Pen USB 10,0% Cap Jacket Key chain Alarm clock 15,0% Tote bag Other Water bottle Calculator 20,0% Wallet Calendar Umbrella Mouse pad 25,0% 30,0% T-shirt Mug Watch Computer bag
Diagram 4.10 Electronic Industry Andersson & Malinova 2012
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11,2% (59) of the respondents who completed the survey would like to receive a Key chain from an AUTOMOBILE company, again followed by the Pen with 11,0% (58) of the respondents. The least attractive promotional product to receive from an automobile company is the Calculator with 1,5% (8).
Q12:Which of the following promotional items would you like to receive if it is an AUTOMOBILE company?
11,2% 11,0% 8,0% 7,6% 6,9% 6,3% 5,7% 5,1% 4,4% 4,0% 3,8% 3,6% 3,4% 3,0% 2,9% 2,7% 2,7% 2,3% 1,9% 1,9% 1,5% 0,0% Calculator Mouse pad Jacket Umbrella Key chain 2,0% Jewlery Wallet Other Cap 4,0% 6,0% Tote bag Computer bag Water bottle T-shirt 8,0% 6 pack golf balls Calendar Towel USB 10,0% Alarm clock Watch Mug Pen 12,0%
Diagram 4.11 Automobile Industry Andersson & Malinova 2012
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5. ANALYSIS
In this chapter we analyze the collected data and test our hypotheses. The results will be explained with the help of the theories which are represented in the theoretical framework chapter and our own possible explanations. This procedure will apply to each hypothesis.
5.1 THE WHY Hypothesis 1: People who have received a promotional product positively relate the product to the company.
The table 5.1 below shows how many of the respondents who conducted the survey actually answered the two questions concerning the hypothesis. The table shows that 188 (91,7%) of the respondents answered those two questions, whereas 17 (8,3%) of the respondents did not answer those two questions.
Case Processing Summary Cases Valid N Have you ever received a promotional item from a company? * Do you remember which company you received it from? 188 Percent 91.7% N 17 Missing Percent 8.3% N 205 Total Percent 100.0%
Table 5.1 Response Rate Andersson & Malinova 2012
Carson (2009) argues that surrounding potential customers with promotional products increases the brand recognition for the company. From the table 5.2 below we can read that 138 from the respondents which answered that they have received a promotional product also remembered which company they received it from, whereas 46 of those who have received a promotional product do not remember which company they received it from.
Have you ever received a promotional item from a company? * Do you remember which company you received it from? Crosstabulation Count Do you remember which company you received it from? Yes No Have you ever received a promotional item from a company? Total Yes No (go to question 6) Do not remember 138 0 0 138 46 2 2 50
Total 184 2 2 188
Table 5.2 Answer Similarity Andersson & Malinova 2012
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Most important for our investigation is to focus on the Pearson Chi-Square in order to be able to read the relationship between the variables. In order to have a positive relationship between the two variables the Pearson Chi-Square value needs to be below 0,05 (Farell, 2011). We can read from the table below that our Pearson Chi-Square value is 0,038 which means that there is a positive relationship between our two variables.
Chi-Square Tests Value 6.546a 6.668 3.249 188 Df Asymp. Sig. (2sided) 2 .038 2 .036 1 .071
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases a.
4 cells (66.7%) have expected count less than 5. The minimum expected count is .51.
Table 5.3 Chi-Square Results Andersson & Malinova 2012
The first hypothesis was directed to see whether there is a positive relationship whether the respondents who received a promotional product also remembered which company they received it from. The results which were obtained are complied with Carson´s (2009) theory about costumers who receive a promotional product remember the company better and eventually make a purchase from it. The results show that there is a positive relationship between the respondents who received a promotional product and whether they remembered the company they received it from, but the results do not show whether these respondents have a positive or negative perception of the company. One reason why they can have a negative perception of the company may be that they were not satisfied with the product. Another reason could be as Thorne (2011) indicates that good promotional products can be expensive and instead of using the promotional product the customers may instead throw it in the garbage can. Another reason for this action may be that the promotional product might not have met their expectations, needs or wants.
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5.2 THE WHO Hypothesis 2: Customers within the same target market want the same promotional products.
When the survey was conducted the respondents were given the opportunity to choose three promotional products which they would most likely want to receive from a company. The table below (table 5.4) shows that USB, which received 99 votes, was most preferable by all ages.
Case Processing Summary Cases Valid N Age * Pen Age * Mug Age * Golfball Age * Tshirt Age * Cap Calendar Age * Keychain Age * Mousepad Age * USB Age * Totebag Age * Computerbag Age * Jewlery Age * Waterbottle Age * Jacket Age * Umbrella Age * Wallet Age * Alarmclock Age * Calculator Age * Watch Age * Other 81 30 14 37 62.9% 33 12 13 99 17 42 22 34 23 44 15 94.4% 34 22 21 83.9% Percent 39.5% 14.6% 6.8% 18.0% 199 16.1% 5.9% 6.3% 48.3% 8.3% 20.5% 10.7% 16.6% 11.2% 21.5% 7.3% 196 16.6% 10.7% 10.2% 197 N 124 175 191 168 97.1% 172 193 192 106 188 163 183 171 182 161 190 95.6% 171 183 184 96.1% Missing Percent 60.5% 85.4% 93.2% 82.0% 205 83.9% 94.1% 93.7% 51.7% 91.7% 79.5% 89.3% 83.4% 88.8% 78.5% 92.7% 205 83.4% 89.3% 89.8% 205 N Total Percent 205 100.0% 205 100.0% 205 100.0% 205 100.0% 100.0% Age * 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 100.0% Age * Towel 205 100.0% 205 100.0% 205 100.0% 100.0%
Table 5.4 Age Answer Andersson & Malinova 2012
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If we take a closer look on table 5.5, which shows the age groups more specifically, we can see that the ages between 16-24 gave 77 votes to the USB and the ages between 25-44 gave it 19 votes. We had on average, very low units on respondents between 45-64 and hence we cannot generalize as good. We can however see that this age group preferred the computer bag. The tables 5.5.1, 5.5.2 and 5.5.3 below we can see a more specific description of which promotional products the different age groups prefer.
AG E PROMOTIONAL PRODUCTS Pen Mug 0-15 16-24 67 29 14 T-shirt 37 Cap 5 4 1 1 3 1 3 13 USB 6Calendar 33 Key chain 77 33 5 30 3 35 11 1 3 2 1 1 4 9Towel 34 Calculator 22 Watch 21 8 26 83 93 19 11 54 1 31 2 72 15 29 17 19 25-44 11 1 31 45-64 3 30 Golf Ball 4 65TOTAL 81 14 2
12 Mouse Pad 99 Tote bag 15
17 Computer bag 42 Jewlery 16 22 Water bottle 34 Jacket 23 Umbrella 44 Wallet Alarm clock 8 2 3 1 Other 7 18
Table 5.5 Age Specific Answer Andersson & Malinova 2012
AGE 16-24 77 67 35 AGE 25-44 19 11 7
PROMOTIONAL PRODUCTS USB Pen Umbrella
PROMOTIONAL PRODUCTS USB Pen Umbrella
Table 5.5.1 Age Specific Answer Andersson & Malinova 2012
Table 5.5.2 Age Specific Answer Andersson & Malinova 2012 AGE 45-64 43 3 33
PROMOTIONAL PRODUCTS Computer bag USB Towel Calendar Pen
Table 5.5.3 Age Specific Answer Andersson & Malinova 2012
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Here in table 5.6 we can see that USB received the most votes as well, which was 99 votes once again. We can also see a similarity between females and males when it comes to choosing promotional products as we received nearly equal answers from both which were 50 females versus 49 males (table 5.7).
Case Processing Summary Cases Valid N Gender * Pen Gender * Mug Gender * Golfball Gender * Tshirt Gender * Cap Gender * Calendar Gender * Keychain Gender * Mousepad Gender * USB Gender * Totebag Gender * Computerbag Gender * Jewlery Gender * Waterbottle Gender * Jacket Gender * Umbrella Gender * Wallet Gender * Alarmclock Gender * Towel Gender * Calculator Gender * Watch Gender * Other 81 31 14 37 6 34 12 13 99 17 43 22 34 23 44 15 9 34 22 21 8 Percent 39,5% 15,1% 6,8% 18,0% 2,9% 16,6% 5,9% 6,3% 48,3% 8,3% 21,0% 10,7% 16,6% 11,2% 21,5% 7,3% 4,4% 16,6% 10,7% 10,2% 3,9% N 124 174 191 168 199 171 193 192 106 188 162 183 171 182 161 190 196 171 183 184 197 Missing Percent 60,5% 84,9% 93,2% 82,0% 97,1% 83,4% 94,1% 93,7% 51,7% 91,7% 79,0% 89,3% 83,4% 88,8% 78,5% 92,7% 95,6% 83,4% 89,3% 89,8% 96,1% N 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 205 Total Percent 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%
Table 5.6 Gender Answer Andersson & Malinova 2012
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Gender PROMOTIONAL PRODUCTS Pen Mug Golf Ball T-shirt Cap Calendar Key chain Mouse Pad US B Tote bag Computer bag Jewlery Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other FEMALE 43 14 2 13 1 20 5 3 50 15 23 19 20 12 26 6 6 16 11 9 2 MAL E 38 17 12 24 5 14 7 10 49 2 20 3 14 11 18 9 3 18 11 12 6 81 31 14 37 6 34 12 13 99 17 43 22 34 23 44 15 9 34 22 21 8 TOTAL
Table 5.7 Gender Specific Answer Andersson & Malinova 2012
The tables below (5.7.1 and 5.7.2) display a more specific description of the top three promotional products preferred by the female and the male gender.
GENDER FEMALE 50 43 26 GENDER MALE 49 38 24
PROMOTIONAL PRODUCTS USB Pen Umbrella
PROMOTIONAL PRODUCTS USB Pen T-shirt
Table 5.7.1 Gender Specific Answer Andersson & Malinova 2012
Table 5.7.2 Gender Specific Answer Andersson & Malinova 2012
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In the table (table 5.8) below we can once again see that the USB received the most votes, 99.
Case Processing Summary Cases Valid N Occupation * Pen Occupation * Mug Occupation * Golfball Occupation * Tshirt Occupation * Cap Occupation * Calendar Occupation * Keychain Occupation * Mousepad Occupation * USB Occupation * Totebag Occupation * Computerbag Occupation * Jewlery Occupation * Waterbottle Occupation * Jacket Occupation * Umbrella Occupation * Wallet Occupation * Alarmclock * Towel Occupation * Calculator Occupation * Watch Occupation * Other 81 31 14 37 62.9% 34 12 13 99 17 43 22 34 23 44 15 94.4% 34 22 21 83.9% Percent 39.5% 15.1% 6.8% 18.0% 199 16.6% 5.9% 6.3% 48.3% 8.3% 21.0% 10.7% 16.6% 11.2% 21.5% 7.3% 196 16.6% 10.7% 10.2% 197 N 124 174 191 168 97.1% 171 193 192 106 188 162 183 171 182 161 190 95.6% 171 183 184 96.1% Missing Percent 60.5% 84.9% 93.2% 82.0% 205 83.4% 94.1% 93.7% 51.7% 91.7% 79.0% 89.3% 83.4% 88.8% 78.5% 92.7% 205 83.4% 89.3% 89.8% 205 N Total Percent 205 100.0% 205 100.0% 205 100.0% 205 100.0% 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 205 100.0% 100.0% Occupation 205 100.0% 205 100.0% 205 100.0% 100.0%
Table 5.8 Occupation Answer Andersson & Malinova 2012
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In table 5.9, which displays a more specified explanation of the occupation, we can see that USB received 22 votes from workers and 72 votes from students. In tables 5.9.1, 5.9.2, 5.9.3 and 5.9.4 we can more specifically see which top three promotional products the different target groups prefer.
PROMOTIONAL PRODUCTS Pen Mug Golf Ball Cap Calendar Key chain USB Tote bag bag Jewlery Jacket
WORKER 21 6 2 25 1 8 6 6 22 3 7 8 11 10 11 11 5 18 4 13 3
OCCUPATION STUDENT UNEMPLOYED 57 23 11 4 3 25 5 5 72 13 33 13 21 11 32 1 3 1 16 1 3
OTHER 3 1 14 T-shirt
TOTAL 81 31 8
1 1 37
Alarm clock
Other
1 1 1 1 1 1 1 2 1 15 1 1 2 2 1
2 6 1 34 12 Mouse Pad 1 13 4 99 17 Computer 2 43 22 Water bottle 1 34 23 Umbrella 44 Wallet 3 9Towel 14 34 Calculator 22 Watch 5 21 1 8
Table 5.9 Occupation Specific Answer Andersson & Malinova 2012
PROMOTIONAL PRODUCTS USB Pen Umbrella
OCCUPATION WORKER 22 21 14
PROMOTIONAL PRODUCTS USB Pen Computer bag
OCCUPATION STUDENT 72 57 33
Table 5.9.1 Occupation Specific Answer Andersson & Malinova 2012 OCCUPATION UNEMPLOYED 11 1 1 1 1 1 1
Table 5.9.2 Occupation Specific Answer Andersson & Malinova 2012 OCCUPATION OTHER 44 3
PROMOTIONAL PRODUCTS Mug Mouse pad USB Computer bag Water bottle Towel Watch Other
PROMOTIONAL PRODUCTS USB T-shirt Pen
Table 5.9.4 Occupation Specific Answer Andersson & Malinova 2012
Table 5.9.3 Occupation Specific Answer Andersson & Malinova 2012
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The relationship which can be seen when looking at the various target groups is that USB and pens are rated highly in all industries, which also according to this survey can be seen as the most attractive promotional products in our study. The study has also shown that a broad distribution of promotional products made by the respondents which makes it difficult to certify a correlation of this hypothesis. A possible explanation for our findings is as Thorne (2011) argues that technology is developing rapidly as well as people´s minds. It is very important for businesses to keep up with technology developments. The USB can also be seen as a relatively new product, unlike many other on the list this might be the reason why people choose USB and that they might be curious about this product and therefore this particular product might fulfill their expectations, needs or wants. Kotler and Armstrong (2008) argue that customers want and needs change with their age. USB was the most popular promotional product in our survey, it is perhaps because we had a majority age group between the ages of 16-24 and that these are more interested in technology than another age group than for example those who have an age of 25-44 or 45-64. If we have instead chosen to focus and specify on a particular group, for example to examine which promotional products women in the ages of 16-24 are interested in. We would probably have been able to get a more accurate picture of what this specific target group wants and thus be able to generalize better than as we now tested many target groups at once.
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5.3 THE WHERE Hypothesis 3: Students and workers want necessary products for their workplace.
In the table (table 5.10) below we can see how many of respondents who conducted the survey answered those two questions in our hypothesis. We can see that 193 (94,1%) of the respondents answered both questions, while 12 (5,9%) did not answer the questions.
Case Processing Summary Cases Valid N Where would it be the most beneficial for you to use a promotional product? * What type of promotional product would you prefer? 193 Percent 94.1% N 12 Missing Percent 5.9% N 205 Total Percent 100.0%
Table 5.10 Chi-Square Answer Andersson & Malinova 2012
As mentioned in paragraph 2.2.3 THE WHERE, companies need to know WHERE the customers will be using the product (Thorne, 2011), which will give them an advantage on the market (Carlton & Blaise, 2004). Table 5.11 shows that 33 (17,1%) of the 193 respondents think that a necessary product is most beneficial in the office. We can also see that using a necessary product in school has received second highest number of votes, which is 20 (10,3%) votes.
What type of promotional product would you prefer? A A luxury A Other convinient product attractively product designed product 19 4 8 0 4 1 2 1 2 4 2 0 3 2 1 0 1 0 0 0 2 3 1 0 7 5 2 1 2 1 2 1 11 9 6 2 1 4 0 0 52 33 24 5
Where would it be the most beneficial for you to use a promotional product? In the office In the kitchen In the livingroom In the bathroom In the garage In the bedroom For exercising/doing sports In the car In school Other TOTAL
A necessary product 33 5 1 2 1 1 9 3 20 4 79
Total
64 13 9 8 2 7 24 9 48 9 193
Table 5.11 Chi-Square Specific Answer Andersson & Malinova 2012
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From the table below (table 5.12) we can read that there is no positive relationship between a necessary product and the workplace. The value needed for a positive relationship is 0,05 and our value is 0,513 which clearly shows that here is no relationship between the two variables.
Chi-Square Tests Value 35.057a 37.039 1.914 193 Df Asymp. Sig. (2sided) 36 .513 36 .421 1 .166
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
a. 39 cells (78.0%) have expected count less than 5. The minimum expected count is .05.
Table 5.12 Chi-Square Person Answer Andersson & Malinova 2012
Even though the Chi-square test did not show a positive relationship between the two variables, we can from the table before (table 5.11) see that necessary product were most useful in the office/school. The reason our test did not show a positive relationship can be that the answers were very scattered. A reason why the office and school showed highest results may be because the majority of our respondents were workers or students. The results may have been different if we had a majority of retirees or unemployed people. Another potential reason why we did not get different results may depend on income. If we had more respondents with higher income the results may have shown that they preferred luxury products. Carlton and Blaise (2004) suggests that companies should choose promotional products that customers consider to be a good product. Therefore, a person with higher income may prefer a luxury product because it may have a higher value for him or her.
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5.4 THE WHAT Hypothesis 4: The respondents prefer pens over all other promotional product in diverse industries
PROMOTIONAL PRODUCTS Pen Mug Golf Ball T-shirt Cap Calendar Key chain Mouse Pad USB Tote bag Computer bag Jewlery Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other TOTAL GENERAL INDUSTRIES CARE 13,1% 5.0% 2,3% 6,0% 1,0% 5,5% 1,9% 2,1% 16,0% 2,7% 6,9% 3,6% 5,5% 3,7% 7,1% 2,4% 1,5% 5,5% 3,6% 3,4% 1,3% 100% CLOTHING & ASSECCORIES 3,4% 0,7% 1,1% 17,5% 3,7% 1,9% 1,6% 0,7% 5,1% 5,1% 4,8% 9,3% 1.9% 13,2% 7,6% 5,6% 1,1% 9,2% 0,2% 5,1% 1,2% 100% HEALTH ELECTRONIC AUTOMOBILE
12,8% 7,6% 2,3% 4,4% 0,6% 6,3% 2,3% 1,0% 7,8% 3,4% 2,5% 1,5% 14,9% 2,9% 5,0% 1,1% 2,1% 13,2% 1,7% 2,1% 4,6% 100%
6,2% 1,5% 1,3% 0,9% 0,5% 1,5% 2,0% 11,1% 27,9% 0,7% 13,8% 0,2% 2,2% 1,3% 2,4% 0,7% 8,7% 1,8% 9,3% 4,7% 1,3% 100%
11,0% 5,7% 2,3% 7,6% 6,9% 3,4% 11,2% 2,7% 8,0% 1,9% 3,0% 1,9% 4,4% 3,8% 6,3% 2,9% 2,7% 5,1% 1,5% 3,6% 4,0% 100%
Table 5.13 Specific results of the alternatives Andersson & Malinova 2012
According PPAI´s study which is shown in one of our theories (The WHAT) are pens the most popular promotional product used by companies (PPAI, 2005). The interesting aspect of our survey is that the results differ from our theories. The survey says that pens are on second place of preference in general industries with 11%, which also means that a little more than 1 of 10 respondents would prefer a pen as a promotional product from a company.
PPAI´s (2005) study: 1. Pens 2. Mugs and cups 3. Golf and polo shirts
Calton and Blaise´s (2004) study: 1. Wearable's 29,3% 2. Writing instruments 10,6% 3. Desk/office/business accessories 7,6%
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PROMOTIONAL PRODUCTS USB Pen Umbrella
GENERAL INDUSTRIES 16,0% 13,1% 7,1%
If we look at the top three items which customers prefer to receive as promotional products from general industries we can see that the USB received most votes with 16,0% followed by the pen with 13,1% and the umbrella with 7,1%. Our top three winning items are not in compliance with PPAI´s (2005) top winning items from their study. Nevertheless, the pen was the closest item in compliance with their results because the pen was on second place in our study and on first place in their study. However, if we compare the results to Carlton and Blaise´s (2004) study we can see that the only item in compliance with their study is the pen which is on second place in our study and the writing instruments which are on second place in their study as well. Even though those three items were the most preferable in general industries those results do not indicate that customers would prefer those items from specific industries as well. Therefore we will take a closer look at the results from a couple of specific industries.
PROMOTIONAL PRODUCTS T-shirt Jacket Jewlery
CLOTHING &ACCESSORIES 17,5% 13,2% 9,3%
If we go into depth and look at which promotional product the respondents prefer to receive from specific industries we can see that for instance in clothing and accessories industries the pens only received 3,4% of the votes, which is low compared to T-shirt which received 17,5% of the votes, the jacket which received 13,2% of the votes and the jewelry which received 9,3% of the votes. Pens are clearly not a good promotional product for clothing and accessories industries. Thorne (2011) argues in one of our previous theories (The WHAT), that T-shirts are one of those promotional products that are not going to disappear any soon and are one of the few products which are always needed and which can be used anytime. Therefore this type of industry should focus on promotional product made of textile because it is apparent that customers associate textile products such as T-shirts and jackets with clothing and accessories industries.
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Our top three winning products were not in compliance with PPAI´s (2005) study but T-shirt and Jacket were in compliance with Carlton and Blaise´s (2004) study where wearable´s were on first place.
PROMOTIONAL PRODUCTS Water bottle Towel Pen
HEALTH CARE 14,9% 13,2% 12,8%
The pen was voted on third place in health care industries with 12,8%. On the first and second place were the water bottle with 14,9% followed by the towel with 13,2%. Once again we believe that reason the water bottle and the towel received higher votes may be because people associate them with health care where the water bottle may make them think of exercising and the towel of swimming or showering. The conclusion of this is that pens can be used as a promotional product by health care industries but it is probably preferable if they use promotional products which can be associated with health care such as a water bottle and a towel. Compared to PPAI´s (2005) and Carlton and Blaise´s (2004) studies none of our winning products was in compliance with their results. However, pen was the closest where it was on third place in our study and on first place in their study.
PROMOTIONAL PRODUCTS USB Computer bag Mouse pad ELECTRONIC 27,9% 13,8% 11,1%
In the electronics industries the pens only received 6,2% of the votes which is low compared to the USB which received 27,9% of the votes followed by the computer bag with 13,8% and the mouse pad with 11,1%. A reason why such high percentage of the respondents preferred those three items as a promotional product from an electronics industry may be because they associate them with electronics, especially computers. However the USB received the highest votes and according to Thorne (2011) the technology is developing fast and therefore may the USB be one of the greatest promotional products to use. Based on the results electronics industries should not use pens as promotional products and instead focus on products such as USB. If we look back at our theories we can see that none of our winning products are in compliance with any of the displayed results in the previous studies.
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PROMOTIONAL PRODUCTS Key chain Pen USB
AUTOMOBILE 11,2% 11,0% 8,0%
Lastly, in automobile industry pens were on the second place by preference choice which is the closest to our theories of all industries. The most preferable promotional product in the automobile industry was the key chain which had only 0,2% of the votes more than the pen and on the third place we have the USB. A good reason why we believe that the respondents preferred key chains, pens and USBs in this industry is because they probably associate the key chains with car keys, pens with signing of contracts and USBs with car radios, where all of these three items can be very useful. To conclude this we can say that all of these items are great promotional product for this industry to use. If we compare our results with to PPAI´s (2005) study which is displayed in our fourth theory, THE WHAT, we can see that the only item which is partially in compliance with our results is that they had pen on first place and that we had pen on second place with only 0,2% difference from the winning product. If we then compare our results with Carlson and Blaise´s (2004) theory we can see that the only item which is in compliance with our results is that they had the writing instruments on second place and we had the pen on second place as well. The results clearly indicate that no pens have received the highest votes in any kind of industry and therefore disproves what the PPAI produced in their investigation. Nevertheless, what we can see is that the pens have had relatively good grades even though they did not win. Pens come on second place in general industries, on third place in health care industries and were ranked second in the automobile industries. The only industries that the pens received low rankings in were the electronics industries and the clothing and accessories industries. The reason why pens received such high ranking in the general, health care and automobile industries might be because people may in general reflect the pens as a useful and necessary object while in automobile and health care people may reflect the pen as a tool to sign a contract to a car or to a gym. However, the reason why pens received such low rankings in clothing and accessories industries and in electronics industries could be that people simply do not relate pens to those industries, where in clothing and accessories people might rather relate a T-shirt or a jacket which are typical for this type of industry. As in electronics industries people might rather think of product related to computers such as mouse pads, USBs and computer bags.
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6. CONCLUSION
The last section of the thesis concludes the findings of the research and summarizes the conclusion drawn from the analysis. The findings aim to answer the purpose of the thesis and the research question.
In order to conclude this thesis we are going to give and answer to our research question: "Which are the best promotional products to be used by companies in general and in specific industries?" The results give a clear picture of the power of promotional products, that it is a great tool to be used by companies as a marketing strategy and an important medium to be remembered by, which makes it even more important for companies to aim to satisfy customers´ needs and wants. The research has shown that the USB received the highest rankings in the general industry which can also be considered as the best promotional product among the examples of promotional products provided in our survey. The research has also shown that customers prefer different promotional products depending on the type of industry. Therefore, it is important for companies to take into consideration which industry they are in and what preferences their potential customers have, what they want and where it is most beneficial for the customers to use the promotional products. The goal is not just to be remembered by the customers but it is also to satisfy customers' needs and wants through the chosen products. Therefore, if companies want to be secure that they will receive the best results, they should focus on choosing promotional products which reflect the type of industry they are in, which also makes it easier for the customers to associate the promotional products to the business. If we take a closer look on the specific industries, we can clearly see that the promotional products which received the highest ranking were also those products which could easiest be associated with the different industries. The promotional product which could be easiest associated with clothing and accessories industries are the T-shirt which obviously reflect the industry best. The same applies to the other industries such as health care where the water bottle is the best promotional product which reflects the company best. I the electronics industry, once again the USB was the best promotional products associated with this particular industry and the key chain was the best promotional product to be used by automobile industries. Even though our research shows which promotional products are the best to use in general and in specific industries it does not certify that those promotional products are the best to use in reality where companies have hundreds of thousands of promotional products to choose between. Despite the fact, our research has clearly shown that companies need to take into consideration which industry they are in and which their target market is in order to choose the best promotional product which is most beneficial for their business.
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6.1 PURPOSE OF THIS STUDY The purpose of this study was to describe and analyze the use and the importance of promotional product for companies. What we want to achieve with this study is to find out which promotional products is the best in general and in specific industries. We will explore the power of promotional products and how companies can achieve the best results when it comes to saving time and money.
We want to help strengthen organizations ability when it comes to choosing the right promotional products and also to provide them with advice regarding investment in promotional product based on customers' reactions and thus help them to become more successful in their selection of promotional products. We believe that we have fulfilled the purpose of our research. We have described and analyzed the importance of promotional products for companies and how they can select the best promotional product for their industries. By using WHY, WHO, WHERE and WHAT, companies can more easily select the best promotional product. The research has also shown the promotional product which is mostly preferred over other products which we have examined. Through gaining knowledge about their own market, its customers and the right promotional product can companies save time and money. The advice which we can provide for companies is that they can use both researches or theories or just follow the development of technology when they are going to choose promotional products. Companies can for example use USBs, or something which is typical for their industries such as T-shirts or water bottles, depending if it is a clothing and accessories company or a health care company.
6.2 CONTRIBUTION TO RESEARCH AND TO PRACTICE As we have mentioned earlier, there is lack of research on this subject and in contrast to other research papers, is our research showing that companies clearly demonstrate lack of knowledge in terms of promotional products by selecting similar products when they choose to market their businesses. Through this research companies can see that the respondents prefer different promotional products depending on which industry they belong to. This research also shows that companies need to take into consideration which industry they belong to when it comes to choosing promotional products.
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6.3 FURTHER RESEARCH Recommendations for further research on the subject.
Some interesting aspects concerning promotional products which we did not discuss in our thesis is how companies can use promotional products in order to motivate staff, to introduce a new product and increase trade show traffic. Another aspect which we found during the process, which was very interesting, is the psychology of promotional products; which impact promotional products have on customers and how customers react on promotional products. Another suggestion on further research could be to investigate whether there is a difference between men and women's needs when it comes to choosing promotional products. Our thesis showed no difference between men and women´s needs when it comes to choosing promotional products which could have been due to our respondents were almost equally divided between men and women. If other men and women conducted the survey the results would possibly have been different.
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RESOURCES
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MacDonald M. (2010) Excel 2010: The Missing Manual. 1st edition. United States: O'Reilly Media, Inc. Murray R T.(2003) Blending Qualitative and Quantitative Research Methods in Thesis and Dissertations. 1st edition. London: Corwin Press Nesbitt E J. (2008) Chi-Square. 2nd edition. United Kingdom: Manchester U.P. Norman K., Lincoln S Y. (1994) Handbook of qualitative research. 1st edition. United States: Sage Publications Ries A., Trout J. (2001) Positioning: The Battle for Your Mind. 2nd edition. United States: McGraw Hill Professional Ries A.,Trout J. (2005) Marketing Warfare. 20th edition. London: McGraw-Hill Rosengren S. (2008) Facing Clutter: On Message Competition in Marketing Communications. 1st edition. Stockholm: School of Economics (EFI) Shah K., D´Souza A. (2009) Advertisement and Promotions: An IMC Perspective. New Delhi: McGraw-Hill Education Shimp A. T. (2008) Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. 8th edition. Canada: Cengage Learning Thorne H. (2011) SWAG:How to choose and use promotional products for marketing your business. 1st edition. United States: Booklocker.com,Inc Thurén T. (2007) Vetenskapsteori för nybörjare. 2nd edition. Sweden: Liber Wagner E W. (2009) Using SPSS for Social Statistics and Research Methods. 2nd edition. New Delhi: Pine Forge Press Wärneryd B. (1993) Att Fråga. 5th edition. Sweden: SCB-Tryck Örebro
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INTERNET ARTICLES Arora, R (2006), "Product positioning based on search, experience and credence attributes using conjoint analysis". Journal of Product & Brand Management [Online] vol. 15, no. 5 pp. 285-292. Available from:http://dx.doi.org/10.1108/10610420610685695 (Date viewed 25th of April 2012)
Beltramini R. F. (2002): "Impact Gifting", Journal of Promotion Management, [Online] vol.8, no.1, pp. 67-71. Available from:http://www.tandfonline.com/doi/pdf/10.1300/J057v08n01_06 (Date viewed 3rd of August 2012) Dolnicar, S., Grün, B. (2007), "Cross-cultural differences in survey response patterns". International Marketing Review [Online] vol. 24, no.2 pp.127 - 143. Available from:http://www.emeraldinsight.com/journals.htm?articleid=1598044&show=abstract (Date viewed 10th of May). Donald, R S. (2001), "Promotional Products: Adding Tangibility to Your nonprofit promotions". Nonprofit & Public Sector Marketing [Online] vol.9, no.9 pp.205-212. Available from:http://dx.doi.org/10.1300/J054v09n01_13 (Date viewed 23rd of March). Fuchs, C., Diamantopoulos, A. (2010), "Evaluating the effectiveness of brand-positioning strategies from a consumer perspective". European Journal of Marketing [Online] vol.44, no.11 pp.1763 - 1786. Available from:http://dx.doi.org/10.1108/03090561011079873 (Date viewed 26th of April). McCarthy, M S., Eugene, H. (2008), "Synergies of Promotional Products and Print Advertising in Building Brand Equity for a New Bran". Journal of Promotion Management [Online] vol. 14, no.8 pp. 3-15. Available from:http://dx.doi.org/10.1080/10496490802501661 (Date viewed 19th of April). Morris D.S , Barnes R. B, Lynch E. J. (1999): "Relationship marketing needs total quality management", Total Quality Management [Online] vol.10, no. 4-5, pp. 659-665. Available from:http://www.tandfonline.com/doi/pdf/10.1080/0954412997659 (Date viewed 5th of August 2012) Nelson, R A., Kanso, A. (2002),"Today's Promotional Products Industry". Promotion Management [Online] vol.8, no.8 pp.3-22. Available from:http://www.tandfonline.com/doi/abs/10.1300/J057v08n01_02 (Date viewed 23rd of March). Pennington, R. (2002),"Developing Recipient-Based Strategies for Promotional Product Selection". Journal of Promotion Management [Online] vol.8, no.1 pp.53-66. Available from:http://dx.doi.org/10.1300/J057v08n01_05 (Date viewed 29th of March).
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Porter, S S., Claycomb, C. (1997), "The influence of brand recognition on retail store image". Journal of Product& Brand Management [Online] vol.6, no.6 pp.373-87. Available from:http://dx.doi.org/10.1108/13612020910957680 (Date viewed 18th of April). Raghubir, P. (2004), "Free gift with purchase: promoting or discounting the brand?". Jounal Of Consumer Psychology [Online] vol.14, no.1 pp.181-186. Available from:http://groups.haas.berkeley.edu/marketing/PAPERS/PRIYA/paper2.pdf (Date viewed 30th of April). Rowley, J. (1998),"Promotion and marketing communications in the information marketplace" Library Review [Online] vol.47, no.8 pp.383-387. Available from:http://www.emeraldinsight.com/journals.htm?articleid=859538&show=pdf (Date viewed 22nd of March). Shanka T. , HandleyB. (2011): Gift Giving: An Exploratory Behavioural Study, Asia Pacific Journal of Tourism Research,[Online] vol. 16, no. 4, pp. 359-377. Available from:http://www.tandfonline.com/doi/pdf/10.1080/10941665.2011.588865 (Date viewed 4th of August 2012)
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INTERNET RESOURCES
Brown I. (2008). Strengths and Weaknesses of Promotional Gifts [Online]. Available from:
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APPENDIX 1
BACHELOR THESIS ON PROMOTIONAL PRODUCTS
Thank you for participating in our research. The aim of this research is to gain knowledge about how consumers perceive promotional products and which, according to the consumers is the best promotional product. The survey consists of a number of questions which we want you to answer by clicking on the option that fits you best. We guarantee you full anonymity. Kristiana and Philip
1
A promotional item is such as a bag, a calendar, a pen e tc. which carries the name or the address of the company. Have you ever received a promotional item from a company?
Yes No (go to question 6 ) Do not remember
2
Are you using the promotional product that you received?
Yes, in everyday life Often Rarely Never Other
3
Why do you think that you received a promotional product?
To promote their business To encourage a purchase As a "thank you" for making a purchase To introduce a new product To promote an upcoming event To promote an existing product Other
4
Do you remember which company you received it from?
Yes No
5
(If you answered no on the previous question) Why don´t you re member which company it was?
6
What type of promotional product would you prefer?
A necessary product A convenient product A luxury product A attractively designed product Other
7
Where would it be the most beneficial for you to use a promotional product?
In the office In the kitchen In the living room In the bathroom In the garage
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In the bedroom In the garden For exercising/doing sports In the car In school Other
Survey provided by
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Which of the following promotional items would you like to receive from a company? (Multiple choice , max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
9
Which of the following promotional items would you like to receive if it is a CLOTHING&ACCESSORIES company? (Multiple choice , max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
10 Which of the following promotional items would you like to receive if it is a HEALTH CARE company? (Multiple choice max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
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11 Which of the following promotional items would you like to receive if it is an ELECTRONICS company? (Multiple choice, max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
12 Which of the following promotional items would you like to receive if it is an AUTOM OBILE company? (Multiple choice, max 3)
Pen Mug 6 pack Golf balls T-shirt Ca p Calendar Key chain Mouse pad USB Tote bag Computer bag Jewelry Water bottle Jacket Umbrella Wallet Alarm clock Towel Calculator Watch Other
13 Where are you from?
Sweden Other European country Outside Europe
14 Age :
-1 5 16-24 25-44 45-64 65-
15 Occupation:
Worker Student Unemployed Other
16 Gender:
Male
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Female
Survey provided by
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Free Online Surveys
THANK YOU!
THANK YOU for taking your time to fill out our questionnaire! If you have any questions about our thesis, do not hesitate to contact us; [email protected]
Y
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APPENDIX 2
Results for: HALMSTAD UNIVERSITY
1) A promotional item is such as a bag, a calendar, a pen etc. which carries the name or the address of the company. Have you ever received a promotional item from a company?
Yes 184 (93.9%)
No (go to question 6 ) 10 (5.1%)
Do not remember 2 (1.0%)
2) Are you using the promotional product that you received?
Yes, in everyda y life 30 (16.0%)
Often 74 (39.4%)
Rarely 78 (41.5%)
Never 6 (3.2%)
Other 0 (0.0%)
3) Why do you think that you received a promotional product?
To promote their business 144 (76.6%)
To encourage a purchase 13 (6.9%)
As a "tha nk you" for making a purchase 16 (8.5%)
To introduce a new product 6 (3.2%)
To promote an upcoming event 4 (2.1%)
To promote an existing product 3 (1.6%)
Other 2 (1.1%)
4) Do you remember which company you received it from?
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Yes
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140 (74.5%)
No 48 (25.5%)
5) (If you answered no on the previous question) Why don´t you remember which company it was?
6) What type of promotional product would you prefer?
A necessary product 80 (41.0%)
A convenient product 53 (27.2%)
A luxury product 33 (16.9%)
A attra ctively de signe d product 24 (12.3%)
Other 5 (2.6%)
7) Where would it be the most beneficial for you to use a promotional product?
In the office 64 (33.0%)
In the kitchen 13 (6.7%)
In the living room 9 (4.6%)
In the bathroom 8 (4.1%)
In the garage 2 (1.0%)
In the bedroom 7 (3.6%)
In the garden 0 (0.0%)
For e xercising/doing sports 24 (12.4%)
In the car 9 (4.6%)
In school 49 (25.3%)
Other 9 (4.6%)
8) Which of the following promotional items would you like to receive from a company? (Multiple choice, max 3)
Pe n 81 (13.1%)
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Mug 31 (5.0%)
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6 pack Golf balls 14 (2.3%)
T-shirt 37 (6.0%)
Ca p 6 (1.0%)
Calendar 34 (5.5%)
Key chain 12 (1.9%)
Mouse pad 13 (2.1%)
USB 99 (16.0%)
Tote bag 17 (2.7%)
Computer bag 43 (6.9%)
Jew elry 22 (3.6%)
Water bottle 34 (5.5%)
Jacket 23 (3.7%)
Umbrella 44 (7.1%)
W allet 15 (2.4%)
Alarm clock 9 (1.5%)
Tow el 34 (5.5%)
Calculator 22 (3.6%)
Watch 21 (3.4%)
Other 8 (1.3%)
9) Which of the following promotional items would you like to receive if it is a CLOTHING&ACCESSORIES company? (Multiple choice, max 3)
Pe n 19 (3.4%)
Mug 4 (0.7%)
6 pack Golf balls 6 (1.1%)
T-shirt 99 (17.5%)
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Ca p 21 (3.7%)
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Calendar 11 (1.9%)
Key chain 9 (1.6%)
Mouse pad 4 (0.7%)
USB 29 (5.1%)
Tote bag 29 (5.1%)
Computer bag 27 (4.8%)
Jew elry 53 (9.3%)
Water bottle 11 (1.9%)
Jacket 75 (13.2%)
Umbrella 43 (7.6%)
W allet 32 (5.6%)
Alarm clock 6 (1.1%)
Tow el 52 (9.2%)
Calculator 1 (0.2%)
Watch 29 (5.1%)
Other 7 (1.2%)
10) Which of the following promotional items would you like to receive if it is a HEALTH CARE company? (Multiple choice, max 3)
Pe n 67 (12.8%)
Mug 40 (7.6%)
6 pack Golf balls 12 (2.3%)
T-shirt 23 (4.4%)
Ca p 3 (0.6%)
Calendar 33 (6.3%)
Key chain
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12 (2.3%) Mouse pad 5 (1.0%)
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USB 41 (7.8%)
Tote bag 18 (3.4%)
Computer bag 13 (2.5%)
Jew elry 8 (1.5%)
Water bottle 78 (14.9%)
Jacket 15 (2.9%)
Umbrella 26 (5.0%)
W allet 6 (1.1%)
Alarm clock 11 (2.1%)
Tow el 69 (13.2%)
Calculator 9 (1.7%)
Watch 11 (2.1%)
Other 24 (4.6%)
11) Which of the following promotional items would you like to receive if it is an ELECTRONICS company? (Multiple choice, max 3)
Pe n 34 (6.2%)
Mug 8 (1.5%)
6 pack Golf balls 7 (1.3%)
T-shirt 5 (0.9%)
Cap 3 (0.5%)
Calendar 8 (1.5%)
Key chain 11 (2.0%)
Mouse pad 61 (11.1%)
USB 153 (27.9%)
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Tote bag 4 (0.7%)
Free Online Surveys
Computer bag 76 (13.8%) Jew elry 1 (0.2%)
Water bottle 12 (2.2%)
Jacket 7 (1.3%)
Umbrella 13 (2.4%)
W allet 4 (0.7%)
Alarm clock 48 (8.7%)
Tow el 10 (1.8%)
Calculator 51 (9.3%)
Watch 26 (4.7%)
Other 7 (1.3%)
12) Which of the following promotional items would you like to receive if it is an AUTOMOBILE company? (Multiple choice, max 3)
Pe n 58 (11.0%)
Mug 30 (5.7%)
6 pack Golf balls 12 (2.3%)
T-shirt 40 (7.6%)
Ca p 36 (6.9%)
Calendar 18 (3.4%)
Key chain 59 (11.2%)
Mouse pad 14 (2.7%)
USB 42 (8.0%)
Tote bag 10 (1.9%)
Computer bag 16 (3.0%)
Jew elry 10 (1.9%)
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Water bottle 23 (4.4%)
Free Online Surveys
Jacket 20 (3.8%)
Umbrella 33 (6.3%)
W allet 15 (2.9%)
Alarm clock 14 (2.7%)
Tow el 27 (5.1%)
Calculator 8 (1.5%)
Watch 19 (3.6%)
Other 21 (4.0%)
13) Where are you from?
Sw e de n 124 (64.2%)
Other European country 34 (17.6%)
Outside Europe 35 (18.1%)
14) Age:
-15 0 (0.0%)
16-24 156 (80.0%)
25-44 29 (14.9%)
45-64 10 (5.1%)
650 (0.0%)
15) Occupation:
W ork e r 55 (28.1%)
Student 132 (67.3%) Unemployed 3 (1.5%)
Other 6 (3.1%)
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16) Gender:
Ma l e 98 (49.7%)
Fe m a l e 99 (50.3%)
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