If a prize is awarded on the basis of skill the promotion is considered a contest. Promotions for one of these select brands will impact which brand is purchased. It can generate interest and leads, especially for B-to-B operations. Simply put: a contest is a competition in which entries are judged on merit; a sweepstakes winner is determined by random chance. Companies are giving customers a reduction in price, which means they earn less money. I take a closer look below. A few will enter because of the prizes. 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. It now accounts for about 17.4% of the gross sales of a manufacturer. While trade promotions can boost sales, it often results in higher costs and lower profits. It allows sellers to display merchandise and to seek prospects. 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. Add your answer and earn points. aided recall and sales tests are two common approaches to _______________. Matching the premium to the target market is important. The goals of contests and sweepstakes should be to encourage traffic to a website or to a retail location. That means only 9% of consumers purchased the item because of the price-off. 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. Self-liquidating premiums require a small amount of money with the proof-of-purchase. the means by which the message is communicated to the target audience are known as the advertising, the number of different people or households exposed to an advertisement, television and radio stations refer to their reach using the term. Trade promotions often are not part of the IMC plan. offer a price reduction to the consumer. However, these terms can easily get confused with one another, especially across the borders. It then becomes difficult to reduce their usage because competitors are using promotions to keep up with each other. There is no skill involved when picking a sweepstakes winner, so requiring payment to play in a sweepstake is a lottery. In a sweepstakes, winners are chosen randomly from all participants. Premiums are prizes, gifts, or other special offers that consumers receive when purchasing a product. 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. For some products, rebates have been used for so long that customers expect them and will hardly make a purchase without one. Contests rely more on skill, and winners are typically chosen upon fulfilling certain criteria. This does not occur nearly as often as forward buying because of the cost of shipping. 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. It is the second largest expense after cost-of-goods sold. Car Sweepstakes: Want a new car? The end result is a potential erosion of brand image. 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. Why not win one? Four different types of premiums are used. If mail-in sweepstakes say to send an entry by postcard, don't mail your entries in an envelope. It is most effective for new products, new versions of products, and current products to new markets. Big Sweepstakes: Sweepstakes with prizes worth over $10,000. Word essayWhat is the primary difference between a contest and a sweepstakes? 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). The Internet allows for interactive games, which increase the intrinsic value of playing. But, what, exactly, is the difference between a contest and sweepstakes? _____________ 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. When an additional or extra number of items are placed in a special package. firms must always support the brand image and position strategy and choose promotions that reinforce the image and position that is desired. The terms refund and rebate are used interchangeably, but do have different meanings. 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. Consumers can be divided into four groups based on their propensity to use promotions. New Sweepstakes: The latest sweepstakes added to The Balance. involve two or more companies working together. It is important to target the right audience at the right venue to ensure success. Running a Contest. 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. The more attractive, the more likely to enter. Problem 6RQ from Chapter 12: What is the difference between a contest and a sweepstakes? Trade promotions can be classified into four groups: trade allowances, trade incentives, trade contests, and trade shows. A contest is an event in which people try to win by doing something better than others. Trade contests can be designed for various channels, or for various companies within one channel. The objective of ________ advertisements is to build goodwill or an image for an organization rather than promote a specific good or service. ___________ 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. Such shows make it easier for companies to locate good prospects, and the costs are much lower. For example, for every 100 cases ordered another 5 are given free. reminder advertisements are used at which stage of the product life cycle? The most controversial form of trade allowance, Retailers have four reasons for charging slotting fees which can amount to millions of dollars. How is a sweepstakes different than a lottery? 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, contests, and lotteries all offer people the chance to win prizes. when a group of consumers are shown an ad and asked if they remember seeing it before, and if so, how much of it they read previously, their _________ recall is being tested, when a test ad is placed with a group of other ads and stories for a consumer to examine, and then the subjects are asked for their impressions of the ads, it is known as a ____________ test. Sweepstakes rely on random chance. It may be a percentage off of the retail price, or absolute amount. Think of a sweepstakes as a game of luck. Laura C. Miller is an associate in the firm’s Winston-Salem office. See answer MarbleMonkey309 is waiting for your help. There’s a difference between Sweepstakes and Contests – Unlike sweepstakes, contests winners are … Enticing a consumer to take the final step and make a purchase constitutes a primary goal for consumer promotions. This is more important in contests than sweepstakes. deals are most commonly used as a sales promotion for which two reasons? _____________________ takes three forms:(1) pioneering (or informational), (2) competitive (or persuasive), (3) reminder, the objective of _____________________ advertisements is to build goodwill or an image for an organization rather than promote a specific product or service. The key to premiums is that consumers pay full price for the product. Trade promotions encourage an over-reliance on promotions to push merchandise with channel members and with consumers. This is where the firm gives out trial versions of the product or service with the hope that the consumer will eventually purchase the entire item. in addition to fear appeal and sex appeal, on what other common appeal could a commercial message rely? Comsumers provided proof of purchase in exchange for a ________. They do not enter every contest or sweepstake they see. If an online giveaway demands a code, don't assume that your entry was accepted just because the form went through without one. For example, New York, Florida, and Rhode Island all require promotions to be registered and bonded and nearly a quarter of all states have restrictions on offering alcohol as a prize. A contest winner is chosen based on skill, usually by a popular vote or a panel of judges. Consumers tend to fall into one of the four groups, but it will also vary by product. In- or on-package premiums are located in the package or on the package and are received upon purchase. radio listening time reaches its peak during which of these time periods? There has also been a movement away from really large national shows to smaller regional and niche shows. Salespeople may not do what is best for customers, or for the company. Another 40% would have purchased the product anyway. Intrinsic rewards usually draw people back, not the extrinsic rewards. 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