You’ve probably noticed competitions on web sites. They come through your letterbox nearly every week. They proliferate on the wrappers of chocolate bars and on food packets in supermarkets. Why?
It’s not because the manufacturers like to give money away. It’s because people have always been in love with the idea of something for nothing and because the valuable prize can cause people to select one brand as opposed to another.
Offered one brand of fruit juice at the normal price and another similar brand at the same price but with the chance to go to the Olympic Games, which would you choose?
But can competitions be used to win new clients for service companies? Let’s look first at why manufacturers use competitions.
The reason competitions are popular with manufacturers is this; if you give away a freebie the value of the freebie is dictated by the profit margin of the product you’re selling. So, unless you’re selling a high priced product the freebie is always going to be a low value item.
On the other hand if you run a competition you are, in effect only giving away entry forms that cost you virtually nothing. So you can pool the profit from thousands of products and use that fund to give away one large prize.
One large prize has much greater “pulling power" than a cheap freebie. It also has a lot more PR value.
From the manufacturer’s point of view the equation is simple: “Do I give away one million printed paper cups which cost a penny each?" Or, “Do I give away a luxury holiday for two on a romantic Pacific island which has just been opened up to tourism with an international press fanfare?"
A good prize will catch the eye of journalists and cause them to write thousands of column inches about the fabulous holiday. Every article will have to mention your product?
The PR value of a prize is a major consideration when you are deciding what to give away. The questions you should ask yourself are: is your prize likely to be attractive to potential entrants and, is it likely to attract the attention of journalists?
I always have a “win a new client" competition on my web site for both those reasons.
Marketing Expert David Ferrers works with professional business people like Accountants, Consultants, Trainers, Coaches and Service Providers. He’ll show you the best ways to win new business . He runs online business building seminars for groups of 4 people, gives a limited amount of private coaching which is guaranteed to grow your business and provides weekly training videos – all part of The Marketing Treasure Chest in his reasonably priced Marketing Club . The moment you join you’ll receive a FREE Bonus that can win you a new client in just 7 days . His personal client portfolio includes: GM, J&J, Dell, Xerox, Prudential and P&O, plus many smaller companies.