Why Companies Run Sweepstakes

April 12th, 2011

So you have found this great competition or sweepstake and got thinking, Why? Why does this company want to give me a brand new car?

Cate has the answer for you!

In fact, I have come up with the top nine reasons the companies run competitions!

1. Competitions are an advertising tool. They are a fun way for a company to put out its advertising message.

2. Marketing. It’s the made you look principle! The company made you look and find out about their awesome shiny new car.

3. To conduct market research. When competitions include surveys of even one question, the sponsoring company is trying to find out something important to them, and they will give away a car for it!

4. To create brand awareness and exposure. By sponsoring a competition, companies’ hope entrants will focus on its brand, product or service. It is also used as a way to attract attention when a new product or service is being launched.

5. Increasing traffic to a company’s website. For example, for some competitions, it may be necessary to answer a question about the product. Otherwise it may encourage entrants to find out more about the product by going to the website.

6. Companies hope that once people have entered the competition (and maybe won!), they will want to find out more about their products and services.

7. To build or increase a database of potential customers, who will use their products again and again.

8. Using questionnaires to collect information about customers buying and spending habits to find the latest trends in the community.

9. To increase sales by reminding people of ‘forgotten’ old products or introducing new products.

So there are Cate’s nine reasons.  Do you have a tenth?  If so, leave us a comment or send us an email!




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