Sweepstakes promotions offer consumers the chance to win money and prizes in return for opening an envelope. Companies use sweepstakes to draw attention to their products and services, participation increases the growing numbers of customers. They offer legitimate sweepstakes promotions in order to gain customers’ experience with their offers. They only want it to be enjoyable for customers’ and they want them to respond. A sweepstake is actually by definition of marketing is a promotional tool or device by which items of value are awarded to participating consumers by chance, with no purchase or “entry fee” required in order to win.
Consumers often confused on a point that how companies can afford such substantial prizes. The answer is it is because sweepstakes are so successful in generating attention to their offers & substantial revenues are gained for the companies that sponsor them. Thousands of corporations give out millions of dollars yearly to their lucky customers. But there are certain rules of the game which must be implemented to fall it in the category of sweepstake like some mentioned below: Customers never have to order or pay a fee to enter and win a sweepstakes. They always have an equal chance of winning whether or not they order, it’s the law. The method by which winners will be selected by sponsor should be clear. The geographic area covered by the sweepstakes and also those areas in which the offer is void should be mentioned. A name and business address where the sponsor can be contacted. Publicity rights regarding the use of the winner’s name.
Winner selection in a sweepstakes is conducted in an unbiased manner which gives all the entries both those with and without an order and an equal chance to win. This is usually done by a random drawing. In this method entries are either picked manually by specially trained judges, or by a computer using random selection programs. If the consumer who received the winning numbered entry did not respond then the sponsor may award the prize to someone else who entered. But the decision will be at the spot at the announcement day.
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