is that retailers do not always pass along the savings to customers. There is no skill involved when picking a sweepstakes winner, so requiring payment to play in a sweepstake is a lottery. will stay with a brand and don't need a promotion to make a purchase. Another 40% would have purchased the product anyway. Enticing a consumer to take the final step and make a purchase constitutes a primary goal for consumer promotions. Word essayWhat is the primary difference between a contest and a sweepstakes? Extrinsic value is the attractiveness of the prize. What most Americans would refer to as a sweepstakes, many Canadians would simply call a contest. The biggest difference between sweepstakes and contests comes down to what determines the winner. Sweepstakes began as a form of lottery that were tied to products sold. It may be a percentage off of the retail price, or absolute amount. Consumers are selective on which ones they enter. Sweepstakes, contests, and lotteries all offer people the chance to win prizes. Winners will be selected at random. It is important to target the right audience at the right venue to ensure success. Problem 6RQ from Chapter 12: What is the difference between a contest and a sweepstakes? The goals of contests and sweepstakes should be to encourage traffic to a website or to a retail location. guide to Sweepstakes and contest Promotions Ty w a n d a H. Lo r d a n d La u r a C. Mi LL er tywanda H. Lord Laura c. miller Tywanda H. Lord is a partner with Kilpatrick Stockton LLP and practices in Atlanta. Where an entrant in a sweepstake is allocated, for example, a horse or a football team purely by the operation of chance, this is likely to fall within the definition of a "lottery" under the Gambling Act. A few will enter because of the prizes. _____________ means that a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products, a ________ refers to a sales promotion that is a short-term price reduction which can take several forms, including "featured price" or "buy one get one free", coupons, contests, and samples are forms of consumer-oriented sales __________, sales promotions can either be trade-oriented or __________-oriented, a ____________ -service advertising agency provides a complete range of services, including research, media selection, copy and artwork development, and campaign coordination, trade-oriented sales promotions differ from consumer-oriented ones in that trade promtions, are directed at intermediaries in the channel, advocacy advertisements state the position of a company on an issue. Trade allowances permit retailers to schedule promotions and promote deals to their customers. They can be prizes in kid's meals at a fast food restaurant or a golf bag with the purchase of a new set of clubs. The terms refund and rebate are used interchangeably, but do have different meanings. Big Sweepstakes: Sweepstakes with prizes worth over $10,000. It is a form of ___________ advertising, consumer-oriented sales promotions are used to support, a company's advertising and personal selling, free samples and point-of-purchase displays are known as consumer-oriented _________ promotions, as a sales promotion, a ____________ is offering some type of merchandise for free or at significant savings, _________ tools are methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost, during the early stages of product's life cycle, ___________ advertisements help a firm to achieve its primary objective to inform the target market. are incentives given to channel members to push products through the channel. But, what, exactly, is the difference between a contest and sweepstakes? The two types of prize promotions that businesses can typically run in the U.S. are sweepstakes and contests. Car Sweepstakes: Want a new car? Free-in-the-mail premiums are free to consumers who mail in X number of box tops or labels. Placing a branded product in a scene of a video game is an example of which type of sales promotion, a(n) ______________ is a type of promotion that offers an item for free or at an extreme bargain price to reward a specific buyer behavior such as collectible toys given away in McDonald's Happy Meals. At times, companies combine two or more consumer promotions into a single campaign, are when two or more companies or products are promoted within a single campaign. The Internet was relatively new, so … In a contest, the winners’ entries are usually judged and are based on a skill or criteria. Such shows make it easier for companies to locate good prospects, and the costs are much lower. For manufacturers, trade promotions account for about 70% of the marketing budget. If you think that sweepstakes laws can be confusing and expensive to adhere to in the US, just try running an international sweepstakes or contest. Think of a contest as a game of skill. A contest is defined as ‘an event in which people try to win by doing something better than others’. which of the following is a disadvantage of using television advertising, especially on broadcast networks? is an excellent means of introducing a new product. State Specific Sweepstakes & Contest Laws. a contest differs from a sweepstakes in that it requires skill or thinking on the part of the participant a(n) ______________ or bust advertising schedule combines the continuous and flighting schedules together by maintaining a consistent base level of advertising but periodically increases in advertising intensity at strategic time periods. is a formal agreement between a manufacturer and a channel member (normally a retailer) that specifies the marketing functions the channel member will perform in exchange for the financial incentive. However, these terms can easily get confused with one another, especially across the borders. Contest promotions typically require a skill or criteria to be fulfilled by entrants. Often corporate reward structures push sales, and an easy way to stimulate sales is some type of consumer or trade promotion. Mass sampling is not cost effective. which involves retailers purchasing additional merchandise when it is on-deal to sell later when it is off-deal. The number of international trade shows has increased as global competition has increased. A sweepstakes winner is chosen by luck of the draw, whether that is a literal drawing from a bin of paper entries or a digitally randomly chose winner. A contest can require payment to play as long as there is skill involved when picking the winner (without which, the contest is a lottery). Someone who is brand loyal for ketchup may be price-sensitive for coffee. product advertisement takes three forms: pioneering, ____________ and reminder. involves delivering a free good or service with the hope the person or business will like the brand and purchase it in the future. Sweepstakes rely on random chance. Generally speaking, a sweepstakes refers to a promotion in which prizes are awarded based on chance, whereas a contest awards prizes based primarily on skill. However, they are not the same thing—a sweepstake isn’t a contest, a contest isn’t a lottery, and a lottery is certainly not any of the two. Whether your practice is starting with 100 or 1,000 “Likes” on your Facebook page, contests and sweepstakes offer a proven way to significantly increase your number of contacts. This is a more time-effective option for businesses that are more interested in the marketing benefits of a sweepstake. The Difference between a Sweepstakes and Contest The major difference between sweepstakes and contests is in how people enter and how people are selected to win. involve two or more companies working together. A small number of retailers will charge an exit fee instead, which is payment of monies to remove an item if it does not sell and has to be removed from inventory. Coupons can be delivered in a variety of ways. Since promotional law is specific to the type of promotion you are running, how you articulate your promotion to your audience is one of the most important aspects of execution. Another trade incentive is the premium or bonus pack, which is free additional merchandise with an order. If your business is going to offer a contest or a sweepstakes, you must create official rules and you must make sure the sweepstakes is legitimately different from a private lottery. Simply put: a contest is a competition in which entries are judged on merit; a sweepstakes winner is determined by random chance. publicity is considered to be integral to which part of the promotional mix? Sweepstakes definition, a race or other contest for which the prize consists of the stakes contributed by the various competitors. How is a sweepstakes different than a lottery? When an additional or extra number of items are placed in a special package. offer a price reduction to the consumer. If consumers have extra potato chips, they are likely to eat more. In- or on-package premiums are located in the package or on the package and are received upon purchase. Retailers like them because they can schedule calendar promotions to ensure one brand is always on sale. While trade promotions can boost sales, it often results in higher costs and lower profits. is a temporary price reduction. purchase only one particular brand of a product and will not substitute a competing brand regardless of the type of promotion being offered, have a small set ofpurchase only one particular brand of a product and will not substitute a competing brand regardless of the type of promotion being offered brands for which they have a strong preference. sandlee09 sandlee09 Answer: main difference between a contest and a sweepstakes is the way that the winner(s) are chosen. They are popular with manufacturers because the retailer must perform some marketing functions, manufacturers have control, and it is a long-term commitment. Sweepstakes are games of chance, where winners are chosen at random. The end result is a potential erosion of brand image. Sweepstakes and contests are a great channel for building your online audience. Trade promotions can be classified into four groups: trade allowances, trade incentives, trade contests, and trade shows. Contests usually provide a purchase incentive by requiring a proof of purchase to enter or an entry form is available from a dealer or advertisement. ___________ advertising has been used by companies like Texaco, Pfizer, and IBM to build confidence in the company name, reinforcing previous knowledge of a product is the objective of ____________ advertisements, __________ advertising is often used to support a firm's public relations plan or counter adverse publicity, a(n) __________ is a type of sales promotion that offers prices based on a chance of drawing an entrant's name and requires nothing more than the purchase of a filled-out form on the part of the consumer, ____________ advertising is generally used during the introductory stage of a product's life cycle to explain what it is, what is can do, and where it can be found, an advertising agency that specializes in one aspect of the creative process is known as a(n) ____________ agency, Messages on the interior and exterior of buses, subway cars, and taxis are referred to as, as part of a sales promotion, __________ programs are specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time, a __________ test is similar to a portfolio test, except that the test advertisement is not hidden within other ads. The problem is that retailers want the price allowance - just give us the discount, we don't want to perform any marketing functions! A contest winner is chosen based on skill, usually by a popular vote or a panel of judges. a(n) ______________ or bust advertising schedule combines the continuous and flighting schedules together by maintaining a consistent base level of advertising but periodically increases in advertising intensity at strategic time periods. The amount paid usually covers the cost of the item and may even pay for shipping. regularly respond to various consumer promotions and like to purchase products when they are on-deal. A sweepstake is a type of contest where a prize or prizes may be awarded to a winner or winners. Manufacturers issue about 80% of all coupons. When thinking about online promotions, the first thing that comes to of mind is a sweepstakes or contest. It allows buyers to compare merchandise of various manufacturers and to see vendors for their stores. Their practices concentrate on … It is more of an opportunity to meet, look, and learn. The key to premiums is that consumers pay full price for the product. Laura C. Miller is an associate in the firm’s Winston-Salem office. Promotions for one of these select brands will impact which brand is purchased. If an online giveaway demands a code, don't assume that your entry was accepted just because the form went through without one. There has also been a movement away from really large national shows to smaller regional and niche shows. But, if the rebate is for more than $50, the redemption rate jumps up to 65%. in addition to fear appeal and sex appeal, on what other common appeal could a commercial message rely? Advertising often creates the interest and excitement that brings consumers to the store. Thus, using sweepstakes and contest as a platform for any product can be beneficial to the companies with low costs and higher profits.Hiring a good sweepstakes management services helps you to explore through this multi- dimensional marketing platform more effectively. A sweepstake tends to be far simpler to set up than a contest, as it doesn’t need to determine stringent rules for the applicants (such as how long an essay should be, or how many photographs should be entered). The Internet and social media have become popular venues for sweepstakes and contests. deals are most commonly used as a sales promotion for which two reasons? Two of the most common promotions are Sweepstakes (games of chance) and Contests (games of skill). Too often I see contest/sweepstake promotions run where there is very little thought put into the “Why” a company wants to run the promotion. For a promotion to be deemed a contest, entries must pertain to skills and winners chosen on merit. How are they different? While it can be an incentive for salespeople to push a brand, some organizations do not allow trade contests because they see them as a conflict of interest. Why not win one? New Sweepstakes: The latest sweepstakes added to The Balance. in advertising, the number of times a person in the target audience is exposed to a message or advertisement is referred to as: each medium of communication varies in its _________ and __________ and by multiplying these it gives the advertising the gross rating points, ___________ are increasingly popular because they can be both informative and entertaining, and often the cost of airing of a 30-minute block of television time is reasonable, an advertising ___________ may follow one of three basic approaches: continuous, flighting, and pulse, when a company's advertising focuses on selling a good or service rather than building goodwill, the company is using ______________ advertisements. which is buying a product on-deal in one part of the country and shipping it to another part of the country where it is off-deal. Funds used in trade contests are known as "spiff money." The Internet allows for interactive games, which increase the intrinsic value of playing. If a prize is awarded on the basis of skill the promotion is considered a contest. First, it helps to understand the difference between a sweepstakes, contest and lottery. Trade promotions often are not part of the IMC plan. For a contest, for example, the criteria that is being scored and judged must be outlined in your rules to ensure that the judging process is fair for all entries. While promotions will boost sales from these two groups, neither group is loyal and as a result not attractive in the long run. In a lottery, winners are chosen at random, but in order to enter, the participant must pay. Plus 648 winners receive a bag … purchase whichever brand has the lowest price and use promotions that reduce the price. This does not occur nearly as often as forward buying because of the cost of shipping. reminder advertisements are used at which stage of the product life cycle? For example, for every 100 cases ordered another 5 are given free. They can require a purchase to enter, at least in most states. Rewards for winning can be cash, but prizes seem to work better. People often use the words sweepstakes and contest interchangeably, but the words have different meanings. Running a Contest. Companies are giving customers a reduction in price, which means they earn less money. International attendees, however, want to make deals so American companies must be aware of this difference. 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