Q: Discuss the role the Internet is
playing with regard to sales promotion. Why are many companies moving
promotions such as contests and sweepstakes online?
The Internet and
other technology just as smartphones are contributing majorly to a change in
the way that consumers and businesses alike operate. As the presence of the
Internet grows and consumers increasingly rely on the Internet to gain
information about products and services, it is important for many companies to
have a strong online presence. The Internet allows companies to display their
products and services to a larger market audience and to more easily establish
and build their brand in a cheaper manner than if they conducted mass marketing
through another channel.
Due to this growth
of technology and the Internet in general, many companies choose to conduct
much of their sales promotion online. Contests and sweepstakes are some
promotions that have grown through online presence. So many companies of
different industries use this method for their contests and sweepstakes such as
food companies like Lays, professional sports teams like the Pittsburgh
Penguins, and clothing stores like American Eagle. Lays has a contest where consumers
can enter online new flavors for chips at www.dousaflavor.com to win $1 million if
their creation is selected. The Pittsburgh Penguins often have many
contests/sweepstakes going on through both online and mobile mediums where
participants can win varying prizes from money to game tickets by entering
their name online or sending an answer to a question via text message.
Additionally American Eagle conducts contests online for their Live Your Life campaign through
submitting picture to be voted on by the public. Conducting these promotions
online provides several benefits for the companies.
One advantage of
conducting sales promotions such as contests and sweepstakes online is the
cost. Even when calculating in the development and programming costs for online
promotions, it is still cheaper than more traditional methods. Traditional
methods require the company to pay for developing and printing out many paper
products and supplies for different locations that the contest/sweepstakes will
be conducted, as well as paying for advertising for the promotion. Conducting
it online, the company only has to have the contest entrance in one spot, that doesn’t
require any physical product, as well as the ability to advertise for it on
their other social medias and can provide a direct link to the
contest/sweepstakes page. Overall the cost for online promotions can be the
much cheaper alternative for companies.
Additionally
online sales promotions allow the companies to more directly reach their target
market. Internet promotion can still be mass marketing but through many sites
acknowledging the users interests, the company can choose to advertise only to
those that have expressed interest in the company or similar companies.
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