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Is the sweepstakes a good marketing move? - Serbia Business

Is the sweepstakes a good marketing move?

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“Sweepstakes are an extremely effective instrument of marketing communication. If they are well designed in relation to the target groups of the products being promoted, they almost as a rule lead to an increase in sales “, says for professor of marketing and communication at the Faculty of Organizational Sciences, Dr. Tamara Vlastelica.

She explains that it is also an interesting psychological phenomenon – people like to compete (just look at the popularity of sports from ancient times to the present day, which by its nature is a kind of competition with oneself or with others).

And even if that competition does not require much effort (it is free or costs little, it takes little or no time) and if it includes a factor of happiness that can bring a profit disproportionately greater than the stakes, then this type of competition is even more attractive.

All products on the free market need to be promoted, regardless of whether they belong to the big brands that have been present on the market for a long time or are new in their category. No matter how big you are, at some point there will be a “challenger” who can take part of your market share and that is why brands are continuously working on their promotion and positioning.

Continuous communication with consumers is necessary

“There are two basic ways to increase sales and market share. The first is that your existing customers buy more or more often, and the second is to win new customers, who have not used that product before or have bought a competing brand. Even the big Coca-Cola has to continuously communicate with consumers. First, there are new generations where the image of the brand has yet to be built. Secondly, existing customers can always buy more – if the product was used only in summer when it is warm, the marketing campaign can position it as ideal for cold winter days. Or if the product was consumed only outside the house, in cafes and restaurants, the campaign can “introduce” it into the house, ie gradually include it in the standard consumer basket as an indispensable part of the family lunch, “explains Tamara Vlastelica.

Another question is whether the prize game is an adequate way of promotion for all brands.

“Certainly not. But there is no difference between big and small brands, but luxury and consumer brands. In that sense, one Chanel or Dior will never organize a prize game or will very rarely have special prices, because part of the image of luxury brands is in limited accessibility and exclusivity, which is achieved in addition to quality and high price, “said Vlastelica.

If the prize games are well designed, properly targeted and with carefully selected incentives for this particular target group of consumers – they benefit both manufacturers and retail chains and customers. It is important to note that prize games are characterized by a quick but short-term result. Namely, after buying a product just to participate in the prize game, customers can continue to buy it regularly only if its other characteristics (quality, packaging, price) meet their needs and meet expectations.

When is the prize game organized?

“Most often, the reason or goal of the prize game is to improve sales. But this instrument is often used when introducing a product to the market, when it is necessary to quickly raise public awareness of its existence, to attract attention and create a desire for that product. However, somewhat more permanent product positioning is done with other instruments of marketing communication and various loyalty programs “, our interlocutor believes.

Of course, the strategies of organizing prize games depend on the type of product or service that is promoted in this way, as well as on the specifics of the target group for which it is intended.

“Basically, they differ in two key things: what is expected of the participants (to buy one or more products, send a code, recycle an old product or its packaging) and what is offered as a reward. There are already many options, but they come down to two approaches – one or less valuable prizes or many less valuable prizes. “Marketing experts are assessing the best combination of” roles “by buyers and rewards by sellers,” says Tamara Vlastelica.

Just as the rule applies to physical products or offline services that purchases will continue after the prize game only if they meet the needs and meet customer expectations, the same applies to such actions on social networks.

“In this case, the product is the content that the influencer or brand places on its profile. The prize game will certainly increase the number of followers, but it depends on the attractiveness and quality of the content that is placed whether the interaction will continue “, concludes Vlastelica, Biznis writes.