Medical Technology Industry Enacts Gift Ban
On the heels of newly established pharmaceutical marketing restrictions, the world’s largest medical technology association is now also recommending limited use of promotional products among its member companies. The Advanced Medical Technology Association (AdvaMed) recently changed its code of ethics to prohibit the gifting of non-educational items to health care professionals. "We have worked very diligently on our ethics code for about 10 months, with the help of 80 attorneys from 40 member companies, representing small and large companies from every product sector,” says Debbie Harrison, spokesperson for AdvaMed.

AdvaMed and its predecessor, the Health Industry Manufacturers Association, have existed since 1974. AdvaMed includes firms that produce a variety of medical equipment, ranging from tongue depressors to software to MRI machines. Hundreds of companies, including Johnson & Johnson, Bausch & Lomb and Texas Instruments, belong to the association. The PhRMA and AdvaMed ethics codes are strictly voluntary guidelines, meaning member companies may choose not to comply.

Survey: Business Owners Expect Turnaround This Year
In spite of grim financial trends, a new survey shows small business owners are optimistic about an economic recovery. The survey, conducted by the UPS Business Monitor, shows 86% of small business owners expect their company to be in a similar or an improved financial position in one year. "Despite incredible changes in the economy, small businesses still see vibrant opportunities," says Jim Beach, a professor at the University of Tennessee. "That eternal optimism and entrepreneurial spirit in the face of adversity is an asset that bodes well for the future of our economy."

In addition, the majority of those surveyed (74%) anticipate keeping the same number of employees in 2009. Meanwhile, 13% of respondents expect to increase their staff and 12% expect to cut staff during this year. According to the survey, those who trade internationally are especially hopeful about an economic upswing. A full 62% of small business owners who trade across borders are positive about their financial futures. However, the survey reveals most small businesses (73%) are reluctant to export. "This survey shows that the vast majority of small-business owners are missing out on the key opportunities offered by international trade," says Alan Gershenhorn, UPS senior vice president of worldwide sales and marketing. "By expanding opportunities in new markets, cross-border trade can help small businesses diversify."

Q4 Sales Report Enhanced Online
Earlier this week, we reported on ASI's fourth-quarter industry sales survey. The data showed that the industry weathered a year-over-year decline of 3.6% in the fourth quarter. The number follows a 1.6% revenue drop in Q3 and a loss of $207 million in ad specialty sales compared to one year ago. Only 31% of distributors reported an increase in sales in the quarter, compared to nearly half (48%) who claimed a decrease. For full-year 2008, ASI is estimating industry revenues of $20 billion. While this number is subject to further analysis, ASI's 2008 revenue results puts the industry's growth for the calendar year at about 2%, an increase from $19.6 billion in 2007. The industry expanded by 3.4% in the first quarter of 2008 and by 3.7% in the second quarter.

Want to see all of 2008's quarterly sales reports in their entirety? Click here to go to the research section of our Web site. You'll find the first three quarterly reports for 2008, as well as expanded information on the fourth quarter survey.

ASI Internet Radio Is On The Air
Every Tuesday morning from 10:30am eastern time to 11:00am, a team of ASI editors will be debating the most important topics facing the industry. Oh, and we'll also be offering our own off-beat look at the market. This week, we broadcast live from our home studios in Trevose, PA. We celebrated the Presidential Inauguration and talked about the things you should never say to anyone. Plus, we helped callers handle their most difficult prospecting challenges.

If you missed the show, don't worry. A recording is now available at www.asicentral.com/radio. And, don't forget to join us next Tuesday morning, January 27, at 10:30 am eastern time. Of course, we'll also be taking calls from the audience, so please do give us a ring at 215-953-4979 to hear your voice on the air.

Trend Watch: Tightened T&E, Fewer In-Person Meetings
Looking to reduce overhead, many companies are restricting the amount of money employees can spend on travel and other expenses. For some distributor salespeople this means less face-to-face meetings. Many distributors began cutting back on personal visits last summer when gas prices reached a threshold of pain. These habits have remained even as gas prices have waned, thanks to a reluctance to spend money in what could be a difficult revenue year. Mike Koop, co-owner of MBK Promotions (asi/257911), says, "Everything is word-of-mouth," he says. "We get referrals all of the time so we don't need to be in the car a lot." Koop estimates he meets with clients once or twice a year to maintain relationships and will take advantage of meeting face-to-face when delivering merchandise to his end-users.

The Web has also reduced the necessity of the pressing-the-flesh sales call, says Koop. "People see our Web site and ask can I get something like this? We use a lot of e-mail." The one exception is apparel sales. "The only time I make personal sales calls anymore is for wearables. People still like to see that in person."

Larger corporations like Accenture, Cisco and Hewlett-Packard are increasingly looking to the Web as a place to hold their meetings or they are opting to use videoconferencing. The trend is taking hold not only because of economic constraints, but also because the technology has vastly improved. A recent report from the Global e-Sustainability Initiative and the Climate Group estimated that 20% of global business could be substituted with videoconferencing and Web-based meeting software.

Online Education: How To Survive & Thrive In '09
Don't let the uncertain economy stall your sales efforts. There are plenty of distributors who are surviving – and even thriving – as we head into 2009. In an online education session held this afternoon, we discussed:

• Selling secrets from successful distributors who are forecasting growth
• Strategies for working with clients who are cutting back on their marketing
• Tactics for selling to price-conscious prospects
• New markets and sectors that are projected to thrive in 2009
• Creative ideas for marketing your services in a difficult economy

In The News
Double Eagle Sports Marketing, Inc. (asi/182568) has announced, effective February 1, its new address will be: 9800 Shelard Parkway, Suite 310, Plymouth, MN 55441.

Gempire/Floral Promotions (asi/55610) has relocated its headquarters from New Jersey to Tampa, FL. All correspondence should go to: 6030 Benjamin Road, Tampa, FL 33634.

Legacy Buying Group has named SanMar (asi/84863) its "Preferred Supplier of the Year" and Sweda (asi/90305) as its "Most Improved Preferred Supplier" for 2008.

Noteworthy (asi/74360) is increasing its services for digital printing on plastic bags in 2009. The company now provides 48 stock designs, six bag styles and conceptual artwork design.

Prezents Inc. (asi/299279) has partnered with Chef Adam Navidi to provide clients with new gifting options, including homemade treats like fresh cookies.

Proforma Makay Print and Promotions (asi/300094) donated 3,500 bags to the Philadelphia Flyers' Fight For Lives Charity Carnival. The company then teamed with the Abilities Center for Southern New Jersey, a non-profit that trains disabled and disadvantaged workers, to stuff the bags.

People on the Move
MediaTree (asi/70303) has named Marcos Domiciano to the position of account executive and hired Kimberly Oppenheim and Christopher Astrella to work as part of its digital team of account executives.

The following are the dates and locations for The ASI Show in 2009:
Dallas: February 4-6
New York: March 8-10
Chicago: July 21-23
ASI Holiday & Incentives Expo, Las Vegas: September 16-17