Why Companies Invest in Promotional Merchandise

When it comes to companies, especially in the corporate world, merchandise such as caps, shirts, and even USB thumb drives are very common. These are things that we get when we attend conferences and other corporate events. But when we look at such products, we notice that many of them are actually high-quality products. We also notice that the company logos on them aren’t just simply printed. Some of them are drawn on the products using a laser etching machine, ensuring the permanence of the logos.

They are the types of things that we purchase from stores for a high price. So it stands to question, why do companies invest in such merchandise? Surely, they can advertise in many other ways so why opt for purchasing quality products and putting their logos on them?

These are five reasons.

Building Company Pride and Loyalty

For many of us, our professional goals are tied to specific companies that we want to work for. If we are budding software engineers, it wouldn’t be surprising if it’s our dream to work at Google or Microsoft. If we’re rising comic book artists, then, without a doubt, it’s our dream to work at Marvel or DC. So, when we finally achieve such professional goals, we take advantage of the company merchandise that we can get at the office. And it’s because it’s a great way of showing how proud we are for working in our dream companies.

Through investing in merchandise, business owners effectively build on that company pride and turn it into loyalty. Thus, they are able to build and sustain a team of workers who, in many ways, help make their companies successful.

Offering Convenience to Workers and Customers

The great thing about company merchandise is that, more often than not, they are composed of products that people need to use every day. They are coffee mugs, bags, shirts, etc. Thus, employees can rely on these products for everyday use. Customers, as well, can benefit from this. This shows that companies don’t just invest in merchandise to promote their brand. They are also keeping people’s needs in mind.

Effective Marketing Strategies

people at the office

Investing in company merchandise is not an innovation. It’s been a standard marketing practice that crossed generations in the marketing industry. But there’s a reason why it prevailed through the years. And it’s because it’s one of the most effective marketing strategies and the return of investment can be unmatched — if done right, of course.

To ensure the effectiveness of the merchandise, companies ensure the quality of the products and that they would be useful to the people. For example, just think of one canvas bag with the company logo printed on it. Because this canvas bag is high-quality, an individual would use it every day. This means that this individual would be parading the company logo everywhere they go until they eventually retire the bag — which could take months or even years. That is a kind of long-term marketing that you may not be able to find anywhere else.

Cost-effectiveness of Company Merchandise

As said before, it takes much investment when companies opt to develop promotional merchandise. But, in many ways, it can also lead to cost-efficiency. For example, the rule of thumb when it comes to buying a bulk of the same product is that the more you buy, the less you pay. So the more you buy, say, baseball caps, the more you can give to people and have opportunities for promotion — all the way, paying less and less.

Moreover, because such merchandise promotes cost-efficiency, then companies will be able to save more money — money that can be used for something else, especially employee perks. So, if done right, suppliers are happy because they made a huge sale of merchandise. Business owners are happy because they are able to promote their companies more. And employees are happy because they would be granted more perks from their companies.

Standing out from Other Companies

Today, the most common ways of marketing are done online. Companies are investing thousands — if not millions — on social media marketing, influencer marketing, and website and mobile app developments. These are effective marketing strategies, too, of course. But since more and more companies are fighting for customers’ attention online, it has been good for other companies to capture attention offline. They are able to stand out to customers by offering company merchandise instead of trying to stand out online.

Through these five reasons, it’s clear that investing in company merchandise will lead to happier employees, business owners, and customers. Ultimately, this is the reason why this marketing strategy has prevailed through the years.

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