Trade promotions encourage an over-reliance on promotions to push merchandise with channel members and with consumers. Store or manufacturer premiums can vary in how they are delivered. Car Sweepstakes: Want a new car? 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. Sweepstakes rely on random chance. deals are most commonly used as a sales promotion for which two reasons? Most consumers, 51%, were not aware the item was on sale when they purchased it. one type of sales promotion involves the use of __________. Think of a contest as a game of skill. If mail-in sweepstakes say to send an entry by postcard, don't mail your entries in an envelope. With the exception of state run lotteries and authorized raffles, lotteries are illegal under state and federal laws. which of the following is a disadvantage of using television advertising, especially on broadcast networks? A few will enter because of the prizes. Consumers are selective on which ones they enter. _____________________ 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. Single-Entry Sweepstakes: Enter just once, and your odds are as good as everyone else's. There’s a difference between Sweepstakes and Contests – Unlike sweepstakes, contests winners are … Contests rely more on skill, and winners are typically chosen upon fulfilling certain criteria. Add your answer and earn points. The Internet allows for interactive games, which increase the intrinsic value of playing. 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. The two types of prize promotions that businesses can typically run in the U.S. are sweepstakes and contests. In a contest, entrants have to take some type of action to participate, such as writing an essay, taking a photo, creating a video, singing a song, selling a product, etc. 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. Salespeople may not do what is best for customers, or for the company. are used to increase usage of the product. Few deals are ever finalized at trade shows. 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. A contest is defined as ‘an event in which people try to win by doing something better than others’. Consumers can be divided into four groups based on their propensity to use promotions. The key difference between these types of promotion is that sweepstakes are luck-based promotions where winners are chosen at random, while contests are skill-based promotions where winners are chosen on merit. 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. Sweepstakes based on chance can be lotteries. Consumers never see trade promotions and most have never heard of them, but they have a huge impact on what brands are placed on retail shelves. Sweepstakes are games of chance, where winners are chosen at random. 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. 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. The problem is that retailers want the price allowance - just give us the discount, we don't want to perform any marketing functions! This post was written by retired Thompson Coburn partner Dale Joerling. It then becomes difficult to reduce their usage because competitors are using promotions to keep up with each other. reminder advertisements are used at which stage of the product life cycle? Plus 648 winners receive a bag … It is most effective for new products, new versions of products, and current products to new markets. This does not occur nearly as often as forward buying because of the cost of shipping. 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. Another trade incentive is the premium or bonus pack, which is free additional merchandise with an order. Sweepstakes and contests are a great channel for building your online audience. publicity is considered to be integral to which part of the promotional mix? People often use the words sweepstakes and contest interchangeably, but the words have different meanings. The number of international trade shows has increased as global competition has increased. When thinking about online promotions, the first thing that comes to of mind is a sweepstakes or contest. a commonly used reference number in advertising is called _______, found by multiplying a medium's reach by frequency, GRP's, a commonly used reference number in advertising, stand for, each medium of communication varies in its ___________ and ___________ and by multiplying these it gives the advertiser the gross rating points, _______ is when a single ad is evaluated by a panel of consumers, and rated in terms of concepts such as liking, attention, attractiveness, _____________ is used to compare copy alternatives, with subjects asked for their impressions on the test ad as well as others, ____________ is when advertising takes place during television shows or movies is evaluated by consumers. Word essayWhat is the primary difference between a contest and a sweepstakes? Following the rules will prevent you from wasting time entering sweepstakes, just to be disqualified over a technicality. If consumers have extra potato chips, they are likely to eat more. A sweepstake cannot require payment. They can require a purchase to enter, at least in most states. Back in 1998, when I started entering sweepstakes, most promotions were administered the old-fashioned way — with a stamp and an envelope. 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. Trade promotions often are not part of the IMC plan. Redemption rates are low, less then 30% overall. 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. 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). When an additional or extra number of items are placed in a special package. It can generate interest and leads, especially for B-to-B operations. Contest/Sweepstake laws in the US and Canada, although similar in approach are different and need to be carefully considered when developing rules across countries, states and provinces. While trade promotions can boost sales, it often results in higher costs and lower profits. They do not enter every contest or sweepstake they see. 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. 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. People enter contests and sweepstake because they find them interesting. Their practices concentrate on … is an excellent means of introducing a new product. The Internet and social media have become popular venues for sweepstakes and contests. Sweepstakes began as a form of lottery that were tied to products sold. However, in some states, it is illegal to require a purchase to enter. Sweepstakes definition, a race or other contest for which the prize consists of the stakes contributed by the various competitors. Contest promotions typically require a skill or criteria to be fulfilled by entrants. Think of a sweepstakes as a game of luck. are a central part of an IMC plan. Integrated Advertising, Promotion and Marketing Communications (6th Edition) Edit edition. Promotions for one of these select brands will impact which brand is purchased. are incentives given to channel members to push products through the channel. Free-in-the-mail premiums are free to consumers who mail in X number of box tops or labels. Often corporate reward structures push sales, and an easy way to stimulate sales is some type of consumer or trade promotion. While promotions will boost sales from these two groups, neither group is loyal and as a result not attractive in the long run. Extrinsic value is the attractiveness of the prize. _____________ 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. There is no skill involved when picking a sweepstakes winner, so requiring payment to play in a sweepstake is a lottery. For a promotion to be deemed a contest, entries must pertain to skills and winners chosen on merit. Why not win one? product advertisement takes three forms: pioneering, ____________ and reminder. which involves retailers purchasing additional merchandise when it is on-deal to sell later when it is off-deal. Sweepstakes, contests, and lotteries all offer people the chance to win prizes. in addition to fear appeal and sex appeal, on what other common appeal could a commercial message rely? This slide lists the major forms of consumer promotions. A sweepstakes is defined as ‘a promotional drawing in which prizes are given away at no charge to the participants’. aided recall and sales tests are two common approaches to _______________. For manufacturers, trade promotions account for about 70% of the marketing budget. Consumers tend to fall into one of the four groups, but it will also vary by product. How is a sweepstakes different than a lottery? Self-liquidating premiums require a small amount of money with the proof-of-purchase. The big disadvantage of coupons is reduced revenues. It now accounts for about 17.4% of the gross sales of a manufacturer. A contest is an event in which people try to win by doing something better than others. Rewards for winning can be cash, but prizes seem to work better. is that retailers do not always pass along the savings to customers. Comsumers provided proof of purchase in exchange for a ________. The major difference between sweepstakes and contests is that contest winners are selected by judges using a set of criteria whereas sweepstakes winners are randomly selected. Register for the Hill’s Science Diet Every Great Day Sweepstakes here and you could be 1 of 12 winners to each be awarded a year’s supply of pet food and a $500 donation to a Hill’s sponsored shelter of winner’s choice (ARV: $1,759 each). 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. apple offered to return $100 to consumers who purchased an apple computer and a printer during a three-month promotional period. They are popular with manufacturers because the retailer must perform some marketing functions, manufacturers have control, and it is a long-term commitment. involve two or more companies working together. Trade allowances permit retailers to schedule promotions and promote deals to their customers. I take a closer look below. Promotions can then be used to encourage the actual purchase. How are they different? Intrinsic rewards usually draw people back, not the extrinsic rewards. Someone who is brand loyal for ketchup may be price-sensitive for coffee. In response, the FCC and FTC refined U.S. broadcasting laws (creating the anti-lottery laws). Intrinsic value is the fun or skill of playing. Retailers like them because they can schedule calendar promotions to ensure one brand is always on sale. See answer MarbleMonkey309 is waiting for your help. First, it helps to understand the difference between a sweepstakes, contest and lottery. Countries have various definitions of what can and cannot be run and certain countries do not all allow games of chance (sweepstakes) or games of skill (contests). 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. 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. 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. 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. offer a price reduction to the consumer. It can be marked on the item or its package, or displayed on the shelf or near the item. Free-standing inserts are the most common, with 88% of all coupons being distributed in this way. 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. The objective of ________ advertisements is to build goodwill or an image for an organization rather than promote a specific good or service. A sweepstakes campaign is a promotional drawing in which prizes are given away at no charge to the participants. Contests and sweepstakes A contest is a promotion whereby consumers compete for prizes or money on the basis of skills or ability and winners are determined by judging the entries and ascertaining entry comes closest to some predetermined criteria. Winners are selected at random. It is important to target the right audience at the right venue to ensure success. State Specific Sweepstakes & Contest Laws. The terms contests and sweepstakes tend to be used interchangeably, but there is a difference. 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. There has also been a movement away from really large national shows to smaller regional and niche shows. Problem 6RQ from Chapter 12: What is the difference between a contest and a sweepstakes? The Internet was relatively new, so … The end result is a potential erosion of brand image. For that reason, it is important to eliminate one of these elements … Running a Contest. 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. will stay with a brand and don't need a promotion to make a purchase. the cost of reaching 1,000 individuals or households with the advertising message in a give medium is abbreviated as, if a retailer is weighting the cost of carrying additional inventory (greater than the usual amount) against the benefit of a reduced wholesale price, he or she is probably considering whether to take advantage of a(n) ___________ offered by a manufacturer, a contest differs from a sweepstakes in that, it requires skill or thinking on the part of the participant. sandlee09 sandlee09 Answer: main difference between a contest and a sweepstakes is the way that the winner(s) are chosen. Firms need to target their sampling programs. People do not like refunds and rebates because typically they are a hassle to redeem and involve waiting 6-8 weeks for the check. Enticing a consumer to take the final step and make a purchase constitutes a primary goal for consumer promotions. 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). It allows buyers to compare merchandise of various manufacturers and to see vendors for their stores. Two of the most common promotions are Sweepstakes (games of chance) and Contests (games of skill). 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. involves delivering a free good or service with the hope the person or business will like the brand and purchase it in the future. Trade promotions can be classified into four groups: trade allowances, trade incentives, trade contests, and trade shows. 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. regularly respond to various consumer promotions and like to purchase products when they are on-deal. But, what, exactly, is the difference between a contest and sweepstakes? Companies are giving customers a reduction in price, which means they earn less money. The most used and well-known trade incentive, are used extensively in business-to-business marketing programs. Coupons can be delivered in a variety of ways. Think of a sweepstakes as a game of luck. Simply put: a contest is a competition in which entries are judged on merit; a sweepstakes winner is determined by random chance. But, if the rebate is for more than $50, the redemption rate jumps up to 65%. Besides the federal considerations, every state has its own specifics regarding sweepstakes and contest law. It may be a percentage off of the retail price, or absolute amount. It allows sellers to display merchandise and to seek prospects. Trade contests can be designed for various channels, or for various companies within one channel. purchase whichever brand has the lowest price and use promotions that reduce the price. radio listening time reaches its peak during which of these time periods? For example, for every 100 cases ordered another 5 are given free. This is a more time-effective option for businesses that are more interested in the marketing benefits of a sweepstake. 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. 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. The more attractive, the more likely to enter. 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. Automobiles and printers are two products people now expect a rebate and will not make a purchase without some type of rebate. For some products, rebates have been used for so long that customers expect them and will hardly make a purchase without one. However, these terms can easily get confused with one another, especially across the borders. 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. For industries that use sales people, trade contests can be used to spur sales. Premiums are prizes, gifts, or other special offers that consumers receive when purchasing a product. A sweepstake is a type of contest where a prize or prizes may be awarded to a winner or winners. is a temporary price reduction. Mass sampling is not cost effective. The most controversial form of trade allowance, Retailers have four reasons for charging slotting fees which can amount to millions of dollars. In a sweepstakes, winners are chosen randomly from all participants. An engaging and responsive campaign is the key to success. What most Americans would refer to as a sweepstakes, many Canadians would simply call a contest. 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. Matching the premium to the target market is important. Laws require the odds of winning each prize to be printed in advance and made available at every location where the sweepstakes can be entered. 1) it costs money to add a new product to inventory; Manufacturers argue that slotting fees are a form of extortion, divert money they could spend on advertising and marketing, and are detrimental to small manufacturers who can't afford the fees. In- or on-package premiums are located in the package or on the package and are received upon purchase. Cash Sweepstakes: Everyone could use some free money! If a prize is awarded on the basis of skill the promotion is considered a contest. See more. Advertising often creates the interest and excitement that brings consumers to the store. The amount paid usually covers the cost of the item and may even pay for shipping. The terms refund and rebate are used interchangeably, but do have different meanings. Laura C. Miller is an associate in the firm’s Winston-Salem office. some evidence suggests that a _________ schedule is superior to other advertising strategies, click fraud and the difficulty of measuring the impact are two of the shortcomings of ___________ advertising. The key to premiums is that consumers pay full price for the product. 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. New Sweepstakes: The latest sweepstakes added to The Balance. Another 40% would have purchased the product anyway. It is interesting to look at the impact a price-off has on a purchase decision. 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. It is an excellent means of encouraging trial purchases. Funds used in trade contests are known as "spiff money." It is doubtful they will boost sales, but they will create awareness and exposure. In the United States, there are no purchase necessary laws involved with sweepstakes and contests. In a contest, the winners’ entries are usually judged and are based on a skill or criteria. Also, contest entrants, unlike entrants in a sweepstakes, may be required to pay a fee to enter. Winners will be selected at random. As most of the readers of this blog already know, a sweepstakes or contest that contains a prize, consideration, and chance may be found to be an illegal form of gambling in most states. It is more of an opportunity to meet, look, and learn. A contest winner is chosen based on skill, usually by a popular vote or a panel of judges. ___________ 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. If an online giveaway demands a code, don't assume that your entry was accepted just because the form went through without one. Four different types of premiums are used. require some type of activity or skill. The biggest difference between sweepstakes and contests comes down to what determines the winner. Such shows make it easier for companies to locate good prospects, and the costs are much lower. International attendees, however, want to make deals so American companies must be aware of this difference. the channel member must perform some type of marketing function to receive the funds. 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. It is the second largest expense after cost-of-goods sold. Big Sweepstakes: Sweepstakes with prizes worth over $10,000. 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