CUSTOM BRANDED MERCHANDISE: TO MERCH OR NOT TO MERCH?
When should branded merchandise enter your marketing mix?
This post examines if and when this promotional tactic may be effective, as part of the overall marketing mix, for founders and more established small businesses.
During the startup phase, a business typically faces resource constraints, with the founder often also doubling as the in-house marketer. Many new companies enter the market as ‘challenger brands’, focusing first on proving the business concept. Once proven, the business may transition to a focus on steady growth or become a scale-up before maturing into an established player. So, when might investing in branded items be worthwhile?
What is branded merchandise?
Marketing industry associations identify branded merchandise as
“customised promotional items that serve as tangible marketing tools to build brand awareness, foster customer relationships, and drive business growth through sustained brand exposure.”
Typical examples of branded merchandise include promotional clothing, drinkware, bags, and tech accessories. Low-cost items, such as pens, are typically easy to source, and ordering in bulk often results in a discount.
It is used in marketing campaigns, employee engagement initiatives, trade shows, and customer loyalty programmes.
For businesses in the United Kingdom, the only limitation is your imagination and budget; just about anything can be sourced.
Benefits of branded merchandise
Is custom merchandising worth it for small businesses?
It’s a versatile and relatively low-cost promotional tool for small businesses, and you don’t need a huge budget to make custom-branded items part of your marketing mix.
However, before committing to spending any cash, as a business owner, you may want to consider
whether it resonates with your audience’s needs and preferences
is of good quality, and
complements your overall marketing mix
If the branded item is helpful to the recipient, it may prove effective as a regular reminder of your business, its work and/or the services available.
A fun and creative approach has a good chance of leaving a lasting impact and can be an effective tactic in an increasingly crowded marketing landscape.
I once met an energetic founder who consistently used a high-impact colour, wherever he went, as a conversation starter at events and when posting on social media channels. For that business, it seemed to work well and was a perfect match with the founder's personality, but it’s not for everyone.
For service-based businesses, branded giveaways don’t have to be boring. They could be a way of making the intangible, tangible. While some firms may choose to maintain a lower public profile and prioritise discretion over market visibility due to the nature of their work, others may want to consider using custom-branded items creatively.
When is custom-branded merchandise most effective?
Research suggests that this type of promotional approach is most effective once a business has moved beyond the initial challenger phase. Established businesses have more resources and are also in a better position to take advantage of the benefits available.
If you’re looking for custom merchandise for your team or business, I can help.
