Friday, October 30, 2009

Promotional Marketing - Effective Promotion Vs a Cheap Giveaway

The notion that simply giving stuff away at a trade show is effective promotional marketing may be one of the biggest myths ... one of the biggest bottles of snake oil ever sold to business owners and marketers. In order to craft a more effective trade show program you must first divest yourself from "giveaway" thinking. To that end, it's vital that you understand the difference between a giveaway and a promotion.

A giveaway is a one-way street. You basically spend your money to fill up people's junk drawers. A business gives away some cheap "doodad" thinking it will create goodwill and effectively promote their business, mindless of the fact that the item is irrelevant to their business or the wants, needs or desires of the person to whom the item is given. The recipient takes the item home and:

1) puts it in a drawer,
2) gives it to the kids,
3) throws it away,
4) uses the item but never does business with your company,
5) is so beholden to you that they fall all over themselves to do business with you and they go out of their way to tell everyone they know about your existence.

With a giveaway you cannot measure your return on investment. You gain practically nothing meaningful, certainly nothing you can actively follow up on. And as far as building business? Few will say, "Wow! They gave me a cheap piece of junk with their name on it! I've really got to do business with them." Seriously. #5 rarely happens as a result of handing out inexpensive "giveaways" at trade shows.
Full article.

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