Glossary of Terms

Advertiser (Buyer): The company that buys the product from the distributor to use as a promotional
tool; the promotional consultant’s client.

Promotional Consultant (Distributor): The promotional consultant develops solutions to marketing challenges through the innovative use of promotional products and is a resource to corporate buyers, marketing professionals and others. There are more than 20,000 promotional consultant firms in the industry. To find one in your area, use the search tool at www.ppa.org and click on buyer or visit www.buildapromotion.com.

Supplier: A promotional products company that manufactures, imports, converts, imprints or otherwise produces or processes promotional products offered for sale through promotional consultants.

What’s What
Account Opener: Premium given to customers as a reward or thank you for opening an account.

Advance Premium: Premium given to new customers on condition they will earn it by later purchases.

Award: Recognition merchandise, often personalized, used to acclaim performance or milestones; may be useful objects (paperweights, clocks) or for display only (plaques, trophies).

Bonded Premium: Point-of-purchase premium attached to a product by a bond of plastic, paper or tape.

Business Gift: Merchandise given by a business in goodwill, without obligation to its customers, employees, friends and the like. Often, this business gift is not imprinted with the advertiser’s identification. Some companies prohibit employees from accepting business gifts.

Collateral Materials: Advertising materials that are not transmitted to consumers via advertising media. Collateral materials include catalogs, shelf cards, posters, specifications sheets and trade information materials.

Collectibles: Premiums designed to have inherent value based upon their perceived “collectibility.”
Commemorative: A merchandise keepsake used to mark a ceremony, anniversary, event
or milestone.

Container Premium: A product container, which when empty, may be used as a container for
other items. These items are usually partially or completely self-liquidating since the consumer pays for the product.

Continuity Premiums: A series of related premiums offered over a period of six to eight weeks.

Dealer Incentive: Premium or other reward given by a manufacturer to retailers or distributors in return for a specified bulk purchase.

Dealer Premiums/Dealer Programs: Premiums offered to retailers who meet certain sales or performance standards.

Direct Premium: An item given free with a purchase at the time of the purchase. These include on-packs, in-packs and container premiums as well as those given separately.

Door Opener: An item of value offered by a salesperson to persuade potential buyers to listen to a sales presentation or to initiate interest in a product or service for a sales call follow-up.

Giveaway: Direct premium given free of charge or obligation to generate awareness and/or goodwill.
Host Gifts/Hosts Incentives: A gift or premium given by a party plan operator to a consumer who agrees to be the host for a demonstration party. The value of the gift is usually proportional to the amount of sales at the party.

Incentive: Reward for a purchase or performance.

In-Pack: A premium offered inside a product package.

Keeper: A premium offered in direct-mail marketing for accepting a free trial of the sale merchandise and to be kept by the consumer even if the trial item is returned.

On-Pack: A direct premium attached to the exterior of a product package or sometimes riding with it in a special sleeve, carton or film wrap.

Premium: A product or service offered free or at a reduced price if the recipient performs some task, such as purchasing an item or meeting a sales quota.

Prize: Reward given to winner in a contest, sweepstakes or lottery, sometimes refered to as a sales incentive award.

Recognition Merchandise:
Award, often personalized, used to acclaim performance or milestones; may be useful objects (paperweights, clocks) or for display only (plaques, trophies).

Referral Premium:
A premium offered to customers for helping sell a product or service to friends or associates.

Gewgaws, doodads, and tshakastzotchkes: Difficult to spell and often derogative terms occasionally employed to describe promotional items. These terms should be used sparingly, if at all.

How It’s Done
Advocacy Advertising: Advertising that is specifically designed to induce, discourage or advocate some specific kind of action on the part of a corporate, social or government entity.

Bounce Back: An advertisement sent along with an already ordered self-liquidating premium to sell other premiums on a self-liquidating basis.

Combination Sale: A tie-in of a premium with a purchase at combination prices; sometimes
self-liquidating; often an on-pack.

Contest: A competition based on skill, in which prizes are offered.

Continuity Program: An offer of products
over time.

Direct Mail: A mailing of a package, other print collateral or materials that are targeted directly to a predefined list of customers.

Marketing Mix: Combining marketing elements, including advertising, promotional products, direct mail and public relations, into one cohesive marketing
program.

Perceived Value: What someone believes merchandise to be worth. To successfully sell premiums, the consumer must be convinced the proposed premium is worth putting forth the extra effort required to earn the item.

Traffic Builder: A promotional product or premium designed to get consumers to come to a store or a tradeshow.