In this day and age, business has it tough. A heavily globalized economy and free trade agreements mean that business confidence runs on the whim of overseas markets. To balance these clear volatilities, there are so many modern tools that businesses can use that there are some clear gains. Despite all of these new digital tools, promotional products remain a tried-and-true method of brand building.

1. Cost-Effective for Smaller Businesses

Despite the fact that the Internet has levelled the playing field in terms of barriers to entry for business owners as a whole, the biggest hurdle for smaller businesses is the marketing budget. The simple fact is that most small businesses cannot compete with the much larger marketing budgets of established businesses and corporations.

Free or low-cost gift items can help a small business to build its brand in a cost-effective way. By handing out free or low-cost items such as mugs and caps, a business can build positive influence and engage with potential customers.

2. Brand Recognition

A key part of any marketing strategy is building brand recognition. Large businesses can afford to spend millions of dollars on building this type of recognition and can even afford to make some mistakes along the way. A smaller business has no such luxury and must make clever, careful decision with regard to marketing budgets.

By handing out free or low-cost products to customers, the idea is to help in terms of brand recognition. It is well known that many customers retain such marketing gifts, especially if they are considered attractive or useful. This ensures that the brand of a business gets out into the community and spreads by word of mouth.

Just imagine that your mascot, website, or brand name is on a t-shirt that is worn by hundreds or even thousands of potential customers. This places your brand right in front of the eyes of potentially thousands of people for a low-cost investment.

3. Positive Perceptions

It is very important to ensure that the gift or low-cost items are of high quality. A premium-quality product, such as a cap, will signal to potential customers that your brand is also of high quality. By associating your business with high-quality goods and services, you gain the influence of people in the community.

4. Potential Customer Engagement

Even though social media platforms have skyrocketed customer engagement and feedback to a whole new level, the fact remains that a low-cost investment in some gifts for customers can also improve engagement.

Imagine handing out free branded t-shirts to people in the local shopping mall. Not only does this get your brand out there but it also provides a real-time face-to-face opportunity to chat to people and build a positive brand image. This is all a crucial part of the complex set of factors that determines brand identity, brand positioning, and brand perception in the community.