Posted in Marketing and Strategy Terms, Total Reads: 171
Sweepstakes is a term used to describe a competition, where the victor receives the entire prize. In the marketing context, Sweepstakes is a method used wherein customers are attracted by providing them a chance of winning a prize. Here, there could be many entries, and the winner of the prize should ideally be selected in a random manner.
Sweepstakes usually work well as an incentive for customers. With the increasing popularity of social media websites and applications like Facebook and Twitter, sweepstakes are increasingly being conducted as social media based contests. Using social media for sweepstakes could decrease costs and speed up the process considerably.
Marketers use sweepstakes in cases where the brand is not able to create enough demand or pull from the market. The method is generally used for increasing brand awareness, generation of leads, increasing the usage of the product or service, etc. Sweepstakes allow all the participants to enter without the requirement of purchasing anything.
For example, a newly launched web service could announce a sweepstake, wherein a prize of considerable value would be given to one of the first hundred people to register for the service. The winner would be decided in a random manner.