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Why Do Competitions Exist?

Competitions are promoted for several different reasons, none of them concerned purely to benefit the consumer. Competitions are in fact just another form of marketing tool, and a highly effective one at that. Often many thousands of entries are made to one competition; considering that sometimes each entry must be validated by proof of purchase often in the form of packaging from the product concerned, and it becomes easy to understand that massive profits will be generated by the promoter.

This though is just part of the potential rewards to come the way of the firm sponsoring the promotion, the hope being that once entrants have purchased their product for validate their entries, those people or a sizeable proportion of them at least, will continue to buy the very same product for many years to come.

Competitions can serve many purposes to the organiser, including the introduction and promotion of new products, the change to revive a product for which sales have recently slumped, and offers the opportunity also to tempt a rival firm's customers to transfer their purchasing power, ostensibly for the purpose of obtaining competition qualifiers, but hoping of course that such a transfer of allegiance might prove permanent.

Yet other promoters seek to obtain full advantage of a product or service for which demand is seasonal. Consequently on Christmas we find hampers firms, toy manufacturers, quality confectionery and high class cosmetics products, all of them thesubject of competitions with usually extremely handsome rewards being offered. Men's toiletries in particular are renowned for the up-market cars their manufacturers offer in an all-out attempt to make their particular product the one fathers all over Britainwill find in their stockings on Christmas day.

Food and confectionery manufacturers; clothing specialists; perfumery, alcohol and cigarette producers; insurance companies; banks, travel agencies, estate agents, and so on, all seek to promote their goods and services via the popular method of offering substantial rewards to those who will make an initial purchase of that by which to qualify for entry to the appropriate competition.

And yet a further band of promoters enter the arena purely to keep their already impressive share of the market for certain products. Heinz in recent years has sponsored a massive promotion, one which allows participants to make endless entries for prizes almost an equally unlimited number of prizes. In recent years they have offered a car each day during which the promotion lasts, with many thousands of food vouchers being presented as consolation prizes. Considering that Heinz enjoy an unrivalled position on many a household's kitchen shelves, it would hardly seem necessary to embark upon promotions for which the costs must surely run into millions. But if by doing so they keep ahead of their rivals, then Heinz and thousands upon thousands of eager contestant are hardly likely to raise any objections of results achieved.

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