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On July 10, the news broke about the PhRMA trade organization restricting the use of promotional products. This story was reported by all the major industry resources, but in addition to presenting the story, we would like to offer further clarification and stimulate dialog on some solutions to this new problem.

Our industry is facing many challenges: higher prices, tighter budgets, increased shipping costs, environmental concerns - and now sales opportunities in a key category are being restricted. Even balloons are coming under attack in California. The economy is so bad that coffee-giant Starbucks announced it is closing 600 stores. As a person of faith, I believe there are always opportunities and ways we can succeed when others may choose to look at the negative.

The following suggestions came from a colleague who is very involved in marketing to the health care industry.

The changes in the PhRMA code are not a ban on promotional products. It’s restricting their use to educational purposes. For several years, as long as branded products were useful in doctors’ offices, any reminders were permitted. Now, they have to have value to the patient in the form of educational items.

For example, pens with banners that pull out would be permitted under the new PhRMA code if they address health issues and aren’t just covered in logos. Post-it notes with diagrams that doctors can use to illustrate conditions and treatments work. Of course, there is very little space left to write notes, so they are mostly illustrative.

A pen with a drug brand logo is just not sufficient anymore. This change is not an attack on the items. The PhRMA board knows the items are good and work. It’s a redirection of the goal. If the doctor can hand it to the patient and there is benefit beyond the blank good in the form of a message to educate or reinforce instructions to the patient, it’s probably fine.

On the list of approved items will be models, illustrative posters, books, flip charts, interactive displays, etc. Think classroom. We’ve been thinking office, and now we need to switch mental locales. The usual stuff will also be applicable in some cases, when the imprint matches the goal.

Items with large imprint areas to convey the educational message may work - items such as oversized pens and clipboards with health tips; water bottles with a message about the value of drinking water, in combination with the drug message; beach balls with each panel educating people on the benefits of cardiovascular activity when using a specific drug. These items should be acceptable.

Isa Cocallas, one of the great thinkers in our industry, says: Promotions work, and while a pen itself is not a good way to judge a drug’s effectiveness, obviously having a brand plastered all over every office supply item does get some kind of message across.

Brands that are familiar are selected more often. That is why advertising of any sort works. Even if you don’t believe bunny rabbits drink canned beverages, the current 7UP commercial puts that brand in your head and you might just choose it over Sprite the next time you buy a soda.

Advertising works, and we should be proud of it. How can we say it doesn’t work, and lobby to have those sales continue? We would be denying our own effectiveness. I see the challenges to our industry now as:

• How can you shift the sales from office supplies to educational materials?

• For the distributor: Put on that creative hat and find other products to replace the ones you can no longer sell to PhRMA members.

• For the supplier: Get to work on sourcing more educational products that can handle a larger message space or contain data in new and creative ways.

This article was written by Jeffrey Solomon, CAS for Corporate Logo Magazine. Reprinted with permission.

What suggestions do you have? Do you have some thoughts on this attack on our industry? We welcome your comments at www.freepromotips.com.

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