Big Picture
'I don't want to sound like I'm complaining, but…'
As the trade magazine for the incentive business, Motivation Strategies talks to people in this field almost every day, and collectively its management has been part of this lively and lucrative conversation for more than 50 years. Still, we can honestly say that we've never seen so much excitement and potential in our industry as we do today. Incentive and recognition companies large and small tell us that business has never been better. Most veterans say they've never seen a better climate for rewards and incentives (or more competition because of the compelling potential). Distributors and fulfillment companies generally report strong revenues, despite their own ever-growing competition. The latest industry census puts incentive spending at close to $50 billion.
So who's complaining? Ironically, the players that own the brand-name products and services that power rewards and recognition programs – specifically, the special market managers for the leading manufacturers – who say they aren't reaping the benefits of the industry's exciting growth.
The problem is simple: The demand for branded products and services for use in corporate America has skyrocketed, but the special markets managers whose divisions handle this aspect of the business get little credit for it. In fact, they often have to fight for recognition, budget and market share with other divisions in their own companies. Many major brands have advertising or promotion agencies – or employees – who literally give the product or service away to be part of marketing programs or gain exposure, while the special markets department has to charge for what it sells.
Odd as it may sound, the people who sell stuff rather than giving it away tend to get less support and respect than product-placement initiatives, "street teams" and sampling efforts whose profits are a lot less measurable and concrete.
If more brands understood how much of their business moved through the corporate market – and the powerful marketing value they get by having their brands featured in incentive and marketing programs – they'd make sure their special markets departments had the resources they need to fully advocate for their brand in the corporate marketplace the way their counterparts do in retail and promotions.
Perhaps with new research showing the incentive industry generating close to $50 billion in sales and the increasing need for marketers to find powerful new ways to extend their brands to targeted audiences, more companies will re-examine their special markets departments and give them the support they deserve. After all, what other marketing opportunity enables a company to have its product or service featured as a reward to a highly targeted and desirable audience of businesspeople or consumers – and to get paid for the privilege?
For decades, suppliers of branded products and services have worked with their retail and other distribution partners to make sure they maximized the presence of their brands in the consumer marketplace through whatever means available. No less should hold true for the corporate market, which is proving itself a sufficiently large segment to warrant a similar approach. Special markets managers should have the resources not only to maximize potential sales through authorized outlets, but also to make sure their brand always shows up in the right places.
The truth is, numerous opportunities exist for brands to work more closely with their incentive company partners to mutually expand the industry and advocate the power of brands. We just need to take better advantage of them. A few examples: The Forum for People for Performance Management and Measurement is open to major brands that want to become involved in supporting research and education, and the Incentive Performance Center – the cooperative arm of the Incentive Federation – offers leading brands important exposure opportunities on its Web site (http://www.incentivecentral.org) while helping to get the message out to an ever larger audience.
The time has never been better for brands and their partners in the incentive business to sit down and discuss how they can work together – just as their counterparts in retail do – to help build the power of brands in internal and external marketing. The benefits are obvious and simply too compelling to ignore in the current business environment, where every brand deserves the best possible opportunity to gain a competitive edge.
So let's stop complaining, roll up our sleeves and get down to work.
