Contests and product marketing and brand promotion

Service Business

Contests are one of the most effective ways to convince customers to the brand you choose. It is hardly surprising, since participation often gives the opportunity to win attractive material prizes, and even a large sum of money. Most of those involved are aware that they have little chance of winning. However, this does not stop other applicants from further attempts. Simple questions that can be answered after a while on the Internet and the prospect of a huge win - these are the main arguments for the growing interest in competitions.

What are prize contests organized for? It turns out to be a simple way to make money, and also one of the most important marketing elements. And it is in terms of marketing that we will develop the issue of organizing competitions in the article below. We can list here a few marketing strategies that would not be possible if it were not for all kinds of attractions for customers.

Pure profit contests - Lotto

These types of contests are the most popular among recipients. It is all the more interesting that participation in such events is associated with the necessity to pay a fee. So why is there still a demand for them? The answer is simple: you are paying a pittance to be able to win millions. The most popular and, according to the general opinion, the most "fair" (is it sure?) Competition of this type is Lotto - a lottery organized by the company Totalizator Sportowy. It is also the oldest activity of this type in Poland, starting on January 25, 1956. It is worth mentioning the most popular game called Lotto (known as Big Lotek until 2009). The player's task is to choose 6 numbers (randomly - so-called "hit or miss" or by marking) on ​​special forms, and then go to the lottery office to confirm participation in the game - the cost of one six is ​​currently PLN 3.

The amount seems small, considering the possibility of winning from a few to several million zlotys. You can earn money when you hit at least 3 digits, which is an additional stimulus to play. In practice, it is very difficult to win, because the system has been so well thought out that it is impossible to find an effective way to hit the "six". It turns out that even in the case of jackpots reaching over PLN 30 million, Totalizator Sportowy still tempts with new opportunities to win. It is not surprising if we look at the company's financial results for 2012, which turned out to be record-breaking.

In just 12 months, the company generated revenues of PLN 3.4 billion, while the net profit was PLN 318 million. As you can see, even the record sums (which do not appear so regularly) are just a drop in the sea of ​​real earnings, which, however, has not bothered players for 58 years.

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Competitions focused on pure profit - Teleaudio

With the development of new mobile technologies, all kinds of Teleaudio competitions have gained popularity. The principle is simple: we watch a specific entertainment program (e.g. all kinds of talent-shows that select the best musicians or dancers), then, after a few episodes, the selected participants go to the semi-finals and from that moment the jury consisting mostly of well-known show business people no longer decides voice. It is the viewers who choose their candidates (although this issue still raises a lot of doubts) by sending an SMS to the number assigned to the selected candidate. What can you get in return? Of course, there is no shortage of lures in the form of cash or attractive material prizes. It is not difficult to guess that their value is still at least several times lower than the actual profit generated by TV viewers.

A similar tactic has been used by the most popular radio stations for several years. If we send one text message (or more, which allegedly increases the chance), we are faced with a real chance of a response from the host of the program. Sometimes you have to answer a selected question, other times you have to say the password aloud after answering the phone - however, you have to take into account that we can pay up to a dozen or so zlotys and as a result we will not get a response anyway. It does not change the fact that attractive prizes, adrenaline and a unique chance to answer a phone call from the lecturer have become an addiction for many.

Competitions focused on interaction with the client

Competitions focused on two-way communication are becoming more and more popular. Most often they concern various types of products.To participate, you need to buy a certain number of product X, make purchases in the chain of stores Y for the amount indicated by the organizer and you must present a proof of purchase in the form of a receipt or invoice. Often, the task of the participants is, for example, to create a catchy advertising slogan for selected products or to share a favorite recipe with other kitchen enthusiasts. One example is the birthday contest organized by the Bricomarche chain of stores on the occasion of their 14th anniversary. To participate, you need to do shopping for a minimum amount of PLN 50, and then create and send 3 advertising slogans for products sold exclusively on this network.

These kinds of competitions give producers a double advantage. First of all, they tempt with attractive prizes with increased likelihood of purchases. Secondly, within a short time, they gain a large number of marketing slogans that originators can use to promote their own products - all with the full approval of the participants. It is worth adding that, as a rule, it is the winning slogans that become a promotional hit remembered by users, which at the same time strengthens the brand's position in society.

Contests on social networks

Contests appearing regularly on social networking sites cannot be omitted. In particular, Facebook and Instagram are in the lead. Contrary to those discussed above, participation is usually free of charge, but several conditions must be met that, in retrospect, may bring new customers to the brand. In the case of Facebook, sharing and liking a selected activity related to the competition turned out to be a popular model. Just like the selected post and share it further to become a participant in the fun. The campaign is free for both the participants and the producer, but thanks to the use of viral marketing, information about the competition, and thus - the promoted product / service, is disseminated instantly. Instagram is doing no worse in this respect, as it enables the community to be engaged in a creative and unconventional way by motivating the publication of interesting photos presenting the brand or product.

Competitions and crisis marketing

Although there are common elements of this form of competitions with those already mentioned, it is worth distinguishing them due to the spontaneous nature and ingenuity of the people responsible for the campaign. Imagine a situation where a recognized brand releases a product that turned out to be defective as a result of unexpected errors and ended up in the store.

If customers find out that this type of product has been approved for sale, they will probably never return to it again. Such a situation happened in 2001, the company producing Łaciate milk, popular in our country. Unexpectedly, several thousand packages were sold, which contained water instead of milk.

Therefore, it was enough to buy any number of products and count on a win (e.g. a car). And although the manufacturer has not officially admitted it to this day, according to various leaks, the competition resulted from the need to react quickly to a crisis situation - in other words, the water in the cartons was there by accident and was not planned at all. However, the campaign turned out to be a bull's eye, and the Łaciate brand increased its market share, becoming the leader in this sector. Interestingly, two years later the action was repeated - this time exactly 4,444 cartons with water instead of milk were sold - which repeated the success of the first edition.

Competitions and their future

Competitions are an indispensable element of the marketing strategy. The prospect of receiving a prize in cash or in kind every day tempts the public to take part in them. The need to incur costs related to participation is small and this is the assumption made by the manufacturer - to allow all interested parties to have fun, regardless of the wealth of the portfolio.

In the following years, this form of fun will enter the web more and more, which is already visible on social networking sites or official websites of certain companies. Two-way communication is also important here, by engaging participants to play, sending their own ideas or sharing knowledge with others. It is worth using common sense, carefully reading the competition rules and conditions of participation - this is especially important if you have to pay a fee. The competition can be fun, but it is worth taking care of the security of your wallet, as well as your privacy on the Internet - more and more often there are attempts to extort it by winning an attractive prize. If we are not sure about the source of the brand or product, it is better to avoid this type of competition from a distance.

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