What does Competitions mean in marketing terminology?


Competitions are an effective tool for engaging customers, stimulating loyalty, and increasing publicity for businesses or projects. They can also serve to incentivise customers to take action, such as making a purchase or engaging with a product or service.

What is a Competition?

Simply put, a competition is a game of chance or skill, typically in which the participants compete to obtain a prize or rewards. Prizes might be anything from a tangible item, such as a car or holiday, to an intangible reward such as cash or an experience. Competitions can be either free to enter (such as a prize draw) or paid (with an entry fee).

Competitions can take many different formats, and the range of options is ever-expanding as new technologies and digital advances create new methods of creating and running competitions. Popular formats include:

• Quizzes

• Prize draws

• Scratch cards

• Raffles

• Online sweepstakes

• Online auctions

• Reality television

• Gambling

Why Should You Create a Competition?

Competitions create a form of entertainment and engagement for your customers. When effectively planned and executed, they can act as a powerful marketing tool, enabling you to reach a large audience, generate new leads, drive sales, and boost your brand’s visibility.

Part of the appeal of a competition is that it has a built-in element of surprise, with an unpredictable element of luck, that gives customers something to look forward to, and keeps them ‘in the game’.

Whilst it can be easy to launch a competition and get sign-ups, it takes a bit more effort (and expertise) to create something that is well-thought-out, engaging, and valuable to both you and your participants.

Planning and Creating an Effective Competition

Become a Sales & Marketing Rainmaker

Learn valuable skills to win more customers, grow your business, and increase your profits.
The Rainmakers Club

1. Define your goals

First, you must define the purpose of your competition. Do you want to boost brand awareness, increase sales, develop customer loyalty, or drive more traffic to your website? Your goal should inform all your decisions, so it’s important to take some time to come up with specific, measurable objectives that you’ll use to gauge the success of the competition.

2. Choose the right format

Now it’s time to decide which type of competition you’d like to run. Think about the age and interests of your customer base, as well as the resources available to you, such as staff, time and budget. Some formats to consider include prize draws, quizzes, raffles, scavenger hunts or live events such as a treasure hunt or gaming tournament.

3. Set the parameters

You will then need to set the rules and parameters of the competition. Consider things such as:

• Who is eligible to enter?

• Is the competition free to enter or do participants need to pay an entry fee?

• Where and how will the competition be promoted? Is it only open to people in a certain geographic area or certain demographic group, or to everyone?

• Are the participants required to take part in certain actions such as buying a product or answering questions?

• What is the timeline of the competition? When will it start, when will it end, how often will participants be updated on their progress and when will the winner be announced?

• What are the prizes or rewards?

4. Promote the competition

Marketing is key for getting people interested in your competition. You will need to be creative in order to get people talking about it and make sure that it reaches the intended target audience. Possible tactics include email campaigns, social media campaigns, and leveraging influencers, affiliates and affiliates.

5. Track your performance

When it comes to creating a successful competition, it’s important to track your performance. Make sure that you have a system in place for collecting and analysing the data on engagement, reach, and outcome. This will enable you to optimise and improve your competitions in the future and measure success.

Competitions can be an effective way to engage with customers, build loyalty, and get them to take action. When planned and executed correctly, they can also boost your business’s visibility and sales. When launching a competition, it’s important to first define your goals, set the parameters, and plan a promotion strategy. Furthermore, tracking your performance is integral for measuring success and optimising future competitions.