Sales Promotion Services
Brief Excerpt from Industry Overview Chapter:
Companies in this industry provide promotional products imprinted with the name, logo, or marketing message of clients. Major companies include subsidiaries of large marketing firms such as Aimia and subsidiaries of major advertising agencies such as Omnicom and WPP.
Worldwide revenue for the advertising and marketing industry, including sales promotion, exceeds $500 billion, according to Magna Global. The US is the largest ad market, accounting for about 40% of total worldwide spending; other major markets include China, Germany, India, and the UK.
The US sales promotion services industry includes about 7,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $17 billion.
Demand is driven by economic growth and by corporate profits. The profitability of individual companies depends on efficient order fulfillment and marketing. Large companies have economies of scale in procurement and the ability to offer other marketing services. Small companies specialize by type of sales promotion product and differentiate themselves on customer service, particularly speed of delivery. The US industry is fragmented: the top 50 companies account for about 40% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are shirts, writing instruments, desk/office accessories, glassware, and caps/headgear, all customized with the customer’s name, logo, and/or message. Other products include sporting goods, bags, magnets, and stickers and decals. Many sales promotion products are imported, primarily from Asia.
Sales promotion services companies have offices with showrooms to display the products and services offered. Companies process...
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