What are some of the problems marketers face in using contests and sweepstakes? Discuss steps they can

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What are some of the problems marketers face in using contests and sweepstakes? Discuss steps they can take to avoid these problems.

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While the use of contests and sweepstakes continues to increase there are some problems associated with these types of promotions Many sweepstakes andor contest promotions do little to contribute to consumer franchise building for a product or service and may even detract from it The sweepstakes or contest often becomes the dominant focus rather than the brand and little is accomplished other than giving away substantial amounts of money andor prizes Many promotional experts question the effectiveness of contests and sweepstakes Some companies have cut back or even stopped using them because of concern over their effectiveness and fears that consumers might become dependent on them Another problem with contests and sweepstakes is the participation in them by hobbyists who submit entries but have no real interest in the product or service Because most states make it illegal to require a purchase as a qualification for a sweepstakes entry consumers can enter as many times as they wish Entrants may enter a sweepstakes numerous times depending on the nature of the prizes and the number of entries allowed There are numerous websites on the Internet such as sweepsadvantagecom that inform consumers of all of the contests and sweepstakes being held the entry dates estimated probabilities of winning how to enter and solutions to any puzzles or other information that might be needed The presence of the professional entrants not only defeats the purpose of the promotion but also may discourage entries from consumers who feel that their chances of winning are limited Numerous legal considerations affect the design and administration of contests and sweepstakes These promotions are regulated by several federal agencies and each of the 50 states has its own rules The regulation of contests and sweepstakes has helped clean up the abuses that plagued the industry for many years and has improved consumers perceptions of these promotions However companies must still be careful in designing a contest or sweepstakes and ...View the full answer

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