Sales Promotion Services

The US sales promotion services industry includes about 4,500 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $13 billion. Major companies include subsidiaries of large marketing firms such as Carlson Marketing and subsidiaries of major advertising agencies such as Omnicom and WPP. The industry is fragmented: the top 50 companies account for less than 30 percent of industry revenue.

Companies in the sales promotion services industry provide promotional products imprinted with the name, logo, and/or marketing message of clients.

COMPETITIVE LANDSCAPE

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.

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.

Sales promotion services companies have offices with showrooms to display the products and services offered. Companies process a large number of small custom-imprinted orders. Customers place an order with the sales promotion firm, which then orders the items from various suppliers that engrave, imprint, or embroider the logo or marketing message. Turnaround time from final order to delivery is ...