How to Budget for a Promotional Product Strategy

It doesn’t matter if you’re an employee of a large corporation or a co-founder of a start-up, you’ll always be working with a budget.

Usually, the marketing budget of any company is around 10% to 20% of the annual expenditure, and around 15% to 20% of that marketing budget is spent on promotional products campaign.

However, a number allocated to promotional products isn’t something that should be put entirely into making promotional products.

Here’s a brief guide that will help you in budgeting efficiently:

Identify the Segments of the Campaign

There is more to a promotional products strategy than just the cost of the products. You may need to spend a considerable amount on formulating custom designs if you want to go with something over the top.

On the other hand, logistics and distribution will also cost you a hefty amount, which is why it must be included in the budget.

Research budget

No marketing campaign is complete without adequate research.

You will need to put in research for identifying your target audience in detail. This includes their like, preferences and lifestyle. Research your competitors’ promotional product strategies, to ensure you aren’t falling behind.

The more thorough your research, the less it will cost you. So make sure that come up with an accurate estimate of the research cost and incorporate it into our budget.

Testing

Testing a promotional strategy is a must.

Get several variations of the promotional products to see how each of them is looking. You might even need to conduct focus groups in order to determine which product to go with.

Prepare estimates for the testing phase and include it into the budget.

Essentials to Include in the Budget

Now it all comes down the products itself.

You are planning for the coming year, and may not exactly know which products your company may be going with. However, there are several essentials that must be included in the budget.

Giveaways for Trade Shows

Promotional products are extremely important in trade shows to increase traffic. There must be an adequate amount dedicated for giveaways for all tradeshows that your company will be attending in the coming year.

Apparels

Apparels should always be included in the budget; they’re used throughout the year.

Apparels are something that are mainly used for employees, but are sometimes also given away to customers.

Employee Giveaways

Employees are provided different products to make them feel like a team and reinforce the brand message. These usually include USBs and power banks, which aren’t as cheap as other types of giveaways.

A good way to go about it is to look at the past trends. However, this is just to get an idea. Innovation and coming up with something new is important to keep the employees interested and happy.

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