The Suitability of SalesPromotion Competitions

as a Social Marketing Too]

Sue Peattie

A submission presented in partial fulfilmcnt of the requirements of the

University of Glamorgan/Prifysgol Morgannwg for the Degree of Doctor
of Philosophy

March 2002
 DEDICATION

This thesis is dedicated to:

The memory of my mother and father who had always wanted a

'Doctor' in the family

My sons Alex and Mathew, with love

Ken - my husband, co-researcher, and best friend

 ACKNOWLEDGEMENTS

I am grateful to the following for their help

and encouragement in the
completion of this thesis:

Professor Tony Gear, my Director

of Studies; Dcnize McIntyre and Professor
Martin Laffin for steering me through the University's Research Degree process.

Julia Rees, Learning Technologies Advisor, in the School of Computing for help
with the IT.

Professor Danny Saunders, Dr. Frances Plimmer and Dr. Hugh Coombs for
passing on their wisdom about completing a PhD by Publication

Finally, special thanks go to Ken Peattie for his unfailing support and
encouragement, and for having the inspirational idea of turning our unsuccessful
hobby of entering competitions into a research projectl

iii
 Certificate ofResearch

This is to certify that, except where speciji'c reference is made, the work
described in this thesis is the result ofthe candidate. Neither this thesis,
nor any part of it, has beenpresented, or is currently submitted, in
candidaturefor any degree at any other University.

Signed
Candidate

Signed ..... -el-zl-

... ...... ... ... ... ... ... ... ... ...
Director ofStudies

Date Dc)r. GLC)(ý-2

(2. .
....... ............ ... ... ... ... ... ...
 Abstract

Despitethe startlinggrowth in salespromotion

expenditurein the commercialsector

overthe last threedecades,the prevailing view of salespromotionin the academic

world is still of a "short term tactical tool often addedinto the marketing mix of

struggling FjIICG brandsto boostsales". This is onereasonwhy thesepromotional

techniqueshaveoften beenconsideredof limited usefor socialmarketing.

Salespromotiontechniqueshaveuntil now, neverreceivedthe academicscrutiny

givento advertising.Thesetechniqueshavetraditionallybeen'bundled' together,with

theresearchconductedbeingdominatedby value-incrcasingpromotions (thosewhich

alter theproduct/price"deal') involving money-off, couponsor 'x % extrafor free'.

Thesepromotionaltechniquesarethe leastappropriatefor socialmarketing

which rarely involve eithera tangibleproductor an economicprice.

Programmes

Valueaddingpromotions(thosewhich introducebenefitsnot directly connectedto the

coreproductor its price) suchaspromotionalcompetitionsor give-awaysarethe

mostsuitablefor socialmarketingbut the leastwell understoodin termsof research.

This researchprojectfocuseson oneincreasinglypopularpromotionaltool, the

promotionalcompetition,andevaluatesthe opportunitiesthat exist to transferits use

from the commercialsectorand into
socialmarketingapplications.

Theresearchprojectconductedover a
periodof twelveyears(1990-2001), started

with a theoreticalexaminationof salespromotiontechniquesin generalasusedin the

commercialsector.The salespromotiontoolkit wasthen 'unbundled'to identify the

1v
differenttools availableandthe particularmarketingcommunicationopportunities

providedby competitions.Over a threeyearperiod a largescalequantitativestudy

was alsoconducted,looking at the characteristicsof competitionsthemselvesand

whichcommercialsectorswereusingthem. Subsequent
researchconcentratedon
breakingdown the datasetto look at competitionsfrom the viewpoint of a numberof

differentindustrialsectors,and further researchexaminingthe perceptionsof

competitionsponsors.The resultsdemonstratedthat competitionsareperceivedasa

"h ighly versatile,creativeand adaptablemarketing tool, usedeffectivelyby a wide

rangeof in dustries".

Theresearchthen went on to demonstratethe synergythat existsbetweenthe

of competitionsasa salespromotiontool, and the particular

characteristics

communicationchallengesthat confrontsocialmarketers.It alsoexploredhow

experienceandresearchrelatingto commercialpromotionalcompetitionscan be used

to help maximisetheir cffectivencssin socialmarketing.

Finally, the role of on-line salespromotionswasinvestigatedasone meansof

engagingandinteractingwith teenagersin socialmarketingcarnpaigns.

 CONTENTS page

List of publications 2

ReflectiveOverview

SectionI Introduction 3
Section 2 Re-evaluating salespromotions as a marketing tool 10
Section 3 Examining the potential of competitions 18
Section 4 Methodology 21
Section 5 How competitions are used in the commercial sector 43
Section 6 Perceptions of competition sponsors 55
Section 7 Competitions and consumerbehaviour 57
Section 8 Implications for social marketing 71
Section 9 The present and future use of competitions in social

marketing campaigns 84
Section 10 Conclusions and future research 93

References

The publications (#1-11)

Appendix I- Recognition of contribution to the field

Award letters
Journal front cover and contents pages

Appendix 2- Breakdown of contribution by author for joint

papers

Appendix 3- Publication #9 -questionnaire & covering letter to

sponsors of competitions
 THE PUBLICATIONS

S. PeattieandK.J. Peattie,'SalesPromotiorf.Chapter18 in M. Baker(ed),The

MarketingBook. 4th edition. Butterworth-Heinnernann.May 1999pp 418-442

2. K.J. Peattieand S. Peattie SalesPromotions:Playingto Win'. Journalof

-'
MarketingManagement,9,3,1993,pp 255-269.

3. S. PeattieandK.J. Peattie 'Salespromotioncompetitions:a survey'.Journal

-
of MarketinRManagement,9,3,1993,pp 271-286.
4. K.J. Peattieand S. Pcattie promotion:a missedopportunityfor
-'Sales
servicesmarketing?The InternationalJournalof ServicesIndustries
Management,6,1,1995, pp 22-39.

5. S. PeattieandK.J. Peattie 'Promotingfinancial serviceswith glittering

-
prizes', The InternationalJournalof Bank Marketing, 12,6,1994, pp. 19-29.
6. K.J. Peattieand S. Peattie 'PromotionalCompetitions Winning Tool for
- -A
Tourism Marketing', Tourism Manaizement, 17,6,1996, pp. 433-422.

7. S.Peattie- "PromotionalCompetitions Winning Techniquefor Wine

-A
Marketing', The InternationalJournalof Wine Marketing,7,3/4,1995 pp. 31-
47.

8. S. Peattie,'PromotionalCompetitionsasa MarketingTool in FoodRetailing'

British FoodJournal.,100,6,1998,pp. 286-294

9. K.J. Pcattie,S. PcatticandE.B. Emafo,'PromotionalCompetitionsasa

StrategicMarketingWeapon'Journalof MarketingManagement.13,8,1997,
pp. 777-789.
10. S.Peattie,The Useof SalesPromotionCompetitionsin SocialMarketing',
SocialMarketingQuarterly.V, 1,March 1999,pp. 22-33
.
S.Peattie,'Using the Internetto Communicatethe Sun SafetyMessageto
Teenagers',HealthEducation 102,5 August2002,pp. 210 218.
, , -
 REFLECTIVE OVERVIEW

-SECTION1- INTRODUCTION

The term "social marketing"was originally coinedby Kotler andZaltmanin 1971to

definea processin which marketingtechniques conceptsarc appliedto social

and
issuesandcauses,suchashealthpromotionandenergyconservation,insteadof

commercialproductsandservices.The field of socialmarketinghasgenerally

developedby seekingto translate,or at leastmirror, almosteveryelementof

commercialmarketingtheoryandpractiseinto a socialcontext.Differencesbetween

the two fields havebeenrccogniscdhowever,andthis hasled to someelementsof

commercialmarketingbeing seenaslessrelevantor suitablein a socialcontext.One

suchelementis salespromotionwhich, despiteits popularityasa tool for commercial

marketers,is viewedasof limited useto socialmarketcrs.This ReflectiveOverview,

andthe publicationsit drawstogether,seeksto re-considerthe suitability of sales

promotionthrougha focuson promotionalcompetitions.

Beforewe canappreciatehow promotionalcompetitionscan be of useto social

marketingwe haveto go back to a fundamentalunderstandingof salespromotion.For

manyyearsa widespreadview of salespromotionwasasa 'short term tactical tool

oftenaddedinto the marketingmbcofstruggling FMCG brandsto boostsales'. Social

marketingis usuallyconcernedwith the long termratherthanthe shortterm;,with a

varietyof non- commercialsectorssuchashealthandeducationandwith selling

behaviouralchangeratherthan
physicalproducts.Figure 1.1is takenfrom oneof
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Kotler's standardmarketingtextbooks(1994)andreinforcesthe view that sales

promotionis only more cost-effectivethan otherpromotionaltools whenattempting

to reversethe fortunesof declining brands.Due to the specialnatureof social

marketingthis tool hasthereforealwaysbeenconsideredof limited use.

Publication#9 (Journal ofAfarketing Management- 3) detailsa variety of references

from the 70's and 80's demonstratingthe traditionalprejudicesheld aboutsales

promotion.Evidencefrom a variety of currentacademicliteraturefrom undergraduate

marketingtextbooks to leadingmarketingacademicjournals showsthat this view of

salespromotionstill prevails.For exarnple:

Accordingto the marketingtextbookby AndersonandDobson(1994) 'the

purposeofadverlising as a strategicactivity is to createawareness,establish

a product in its market,build an imageand work towardsgaining salesfor the

long-termfuture ofthe produalserviceand the company.As a tactical tool,

salespromotion is usedas a short-termboostfor salesor to encouragetrial of

a newproduct.

Jones(1990)in the Harvard BusinessReviewarticle - 'The DoubleJeopardy

of SalesPromotion' concludesthat companies,facedwith saturatedmarkets

havebeenmisguidedlychannellingmoneyawayfrom abovc-the-line

advertisingand fighting withfuryfor marketshare; usingpromotions

(generallya high costactivity) as the main tactical weapon'

This researchproject beganwith an initial exploratoryinvestigationof sales

promotioncompetitions(which, for simplicity, will now be referredto merelyas

gcompetitions').It then evolvedinto a wider re-evaluationof the role andnatureof

salespromotion.This led to a realisationthat salespromotiontools hadpotential

applicationto areasfar removedfrom their conventionalorigins,suchassocial

marketing.The aim of this ReflectiveOverviewis to chartthe progressof this

journeyof explorationwhich took placeover a periodof twelve years(1990-2001). In

doingso, it demonstrates in
that salespromotions general,andcompetitionsin

particular,arehighly versatile,creativeandadaptablemarketingtools, which can be

uscdeffectivelyin a wide variety of marketingcontexts,andarethereforeof relevance

to socialmarketing.Figure 1.2illustratesthe contributionof eachpublicationto this

processof recognisingthe usefulnessof competitionsfor socialmarketing.

Publication#I (TheMarketingBook chapter)re-evaluatessalespromotionasa

marketingtool illustrating how it be in

can used a wide varietyof sectorsas a long

termstrategicweaponaswell asa shortterm tacticaltool. The chapteralso goeson to

dcrine'value-increasing' and 'value-adding' promotions.This distinction is both

originaland fundamentalto the whole researchproject.

focuscson compaitions in
Publication#2 (JournalofMarkefing Alanagement-1)

particularandprovidesa detailed look

theoretical at how they areuscd/canbe usedin

thecommercial
sector.
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 Publication#3 (Journal ofMarketing Management-2)discussesthe findingsof a large

competitionsusedmostly in the
scaleempiricalstudyof more than 2 V2thousand

commercialsectorover a threeyearperiod.Publication#4 - #8 providesa breakdown

for severaldifferent industrial sectorscoveringboth servicesand FMCG. Eachof

theseseparateanalysesmakesa specificcontributionto our overall understandingof

thepotentialof competitionsto help socialmarketingwhich is detailedin Figure8.3.

To developa completepicture of the usageandeffectivenessof competitionsrequires

of the competitionsthemselves,the sponsorswho usethemandthe

an understanding

targetaudience.Publication49 (JournalofMarkelingManagement-3)describesthe

resultsof an empiricalstudyinvestigatingthe perceptionsof FMCG competition

sponsors.Publication#11 includesan insight into consumerperceptionsof

competitions.A review of consumerbehaviourandcompetitionsis providedby

pub]ication4 1,#2,#4-8.

Publication#10 (SocialMarketing Quarterly)is pivotal to the rescarchprojcct.It

drawstogetherevidencefrom the commercialsectorandresearchof how

havebeenusedin socialmarketingto dateto demonstratethat

Competitions

canprovide a useful tool for socialmarketers.

Competitions

Tbcreareseveralreasonswhy this researchprojectis importantandprovidesa

signiricantcontributionto knowledgein the field:

For competitionsto be evenconsideredand eventuallyacceptedasa potentialtool

for socialmarketers,a fundamentalre-evaluationof the capabilitiesandnatureof

salespromotionis required.This hasbeenthe startingpoint of the researchproject.

The specialnatureof social marketingmeansthat thereareparticularproblemsnot

usuallyencounteredin commercialmarketingsuchasa negativedispositiontoward

the product/service;benefitsthat are long term, invisible or only accrueto P

parties;immutableproductsand severelylimited budgetsandmarketdata.The

researchproject,by undertakingan extensivetheoreticalandempiricalanalysisof

competitions,demonstratesthat theyhavethe potentialto help overcomethese

problems.

Socialmarketingis predominantlyconcernedwith major quality of life issuessuch

ashealth,literacyand energyconservation.This researchproject,in furtheringour

of how socialmarketingcan be moreeffective,will ultimately

understanding

contributeto improving theseareasandthusthe welfareof individualsandsociety.

 SFCTION 2

RF-FVALUATING SALES PROMOTION AS A MARKETING TOOT,

Salespromotionhasbeenusedasa catch-allterm coveringa multiplicity of marketing

activities.Much of the early academicresearchinto salespromotionsproducedvery

critical appraisalsof their effectiveness.Howeversuchresearchwas flawed by a

concentrationon price basedpromotions,by ignoringthe indirect effect of promotions

andby taking a very narrowview of customerresponse.Marketingpractitioners have

realisedthe value of salespromotionandthe limitation of this restrictedterminology.

An article on salespromotionin Marketing Week(Flack 1999)suggeststhat 'the

-
sectorsufferslargelyfrom a poor definition -a price promotion Is not the sameas a

value-addedpromotionbut the two are oftenlumpedtogether. Despite30 yearsof

constantcriticism of salespromotionfrom marketingacademics,theyhavegrown

increasinglypopularasa tool usedby

marketingpractitioners.This stronglysuggests
thateitherpractitionersdo not understandmarketingvery well or that marketing

academicshavemisunderstoodthe potentialof salespromotion.

TheMarketingBook chapter(publication# 1) fundamentallyrevisesthe notion of sales

promotion and explainshow salespromotion and 'value-adding'techniquesin

Particularcanbe used.Salespromotionis definedin the chapteras:

10
 'Afarketingactivities usuallyspecificto a timeperiod, place or customer

which encouragea direct responsefromthe consumer,or Intermediaries,

throughthe offer ofadditional benefits'

In thechapterit suggeststhat onefrequentlyoverlookedpoint aboutpromotionsis

thattheyarenot so mucha distinct elementof the marketingmix asa customisation

of theotherelements.To increasethe desirabilityof the total productoffering, sales

promotioncan:

9 Enhancethe productoffering's utility by enhancingquality, or addingextra

tangiblebenefits.

" Improveaffordability by increasingthe quantityoffered,decreasingthe price or

casingthe paymentterms.

" Improveaccessibilityby gainingaccessto distributionchannels,and throughextras

suchasfreedelivery.

Supportthe advertising,salesandPR effort to boostthe productsvisibility and

credibility througheye-catchingandnewsworthypromotionalmaterialsand by

creatingsubjectsfor advertisingcampaignsor discussionswith customers.

This analysishasparticularimplicationsfor the useof salespromotion in social

marketingaswe shall seein Section8, wherecompetitionscanbe usedto overcome

someof the barrierspeculiarto the socialmarketingmix.

11
TheMarketingBook chapteralso exploresthe key differencesbetweenadvertising

andsalespromotioni. e. its

e communicationcapabilities

e relationshipbuilding capabilities

* flexibility andmanageability

This breakdownis also usefulgiven the criticism that socialmarketinghasto date

too heavily on socialadvertising.In the book Marketing- an

concentrated

Introduction, Kotler andArmstrong(1990)suggestthat '.. manypublic marketing

campaignsfallbecause
theyassignadvertisingtheprimary role andfail to develOP

and useall the available marketingmft tools'.

TheAlarkelingBook chapterarguesthat morerecentresearchinto salespromotion

demonstrates
that:

levelsandimage
a) theycanboosta brand'ssale,awareness

b) theyareeffectivein encouragingswitchingbctwcenbrands,productcategoriesand

retailers

c) theycanovercomesignificantlevelsof brandloyalty to 'poach' consumers

d) theyarcmost cfTectivewhenbackedup by advertising

e) tradepromotionshelp to secureintermediariesenthusiasmand supportandcan

help to build or reducetradeinventories

12
 While marketingacademicscontinueto be preoccupiedwith issuesof promotional

pricereduction,couponredemptionandtheir effect on consumerbehaviourand

referencepricing, marketingpracticeis injecting muchcreativity anddiversity into the

growthof salespromotion.For much of the 1980ssalespromotionexpendituregrew

almosttwice as fast asadvertisingexpenditureandby the endof the 1980sglobal

expenditureon salespromotionhad equalledmediaad spendingaccountingfor $219

billion or 39% of non salesforce communicationcostsaccordingto WWP (Financial

Times 1989).By the mid 1990ssalespromotionexpenditurehad actuallyovertaken

advertisingexpenditurein the US andthe UK. Estimatesof the communicationsmix

spcndin the UK for 1995(Smith 1998)aregiven below:

Selling E13billion

Salespromotion L9 billion

Advertising E8 billion

Directmarketing 0 billion

PR& exhibitions fl. 4 billion

A key factorin the growth of salespromotionhasbeenthe changingrelationshipwith

advertising.Conventionallythey wereviewedasalternativesto oneanotherwith sales

promotionseenasthe poor relation.This haschangedasincreaseduseby market

leaderssuchasHeinz, ProctorandGambleandMcDonaldshasgiven salespromotion

newfoundrespectabilityandasrising pricesandincreasing'cluttcr' haveraised

doubtsaboutadvertising'scosteffectiveness.
A recentconsumersurvey(Croft 1999)

revealssomeharshtruthsaboutthe public's attitudeto advertising.The survey

conductedby RSGBon behalfof MercerGrayrevealedthat:

13
 'only 16% ofpeople in Britain admittedto paying any attentionduring

commercialbreaks.Twiceas manysay theytreat the commercialbreakas an

opportunityto nip out and makea cup oftea. 25% changechannelsto seeif

thereis anythingmore interestingon the otherside and 17%talk to other

peoplein the room.

Just undera third ofrespondents(29%)said theyboughtan item becauseofa

TV ad while more than half (59%)admittedhaving boughtsomethingbecause

it waspart ofa specialoffer or promotion suchas a two-for-oneor a

competition'

Technologyis evenallowing consumersto zap, out commercialbreaksaltogether.

Hitachi's ncw'Commercial Advance' video systemautomaticallyfast forwards

throughadvertisementbreaksin recordedprogrammes.

Ratherthanbeingrivals for the promotionalbudget,advertisingand salespromotion

arc increasinglybeing seenby practitionersascomplementarycomponentsof a

strategicallyplannedand integratedcommunicationscampaign.

Unbundling the salespromotion toolkit

Previousdistinctionshavebeenmadebetweenpriced basedpromotions(suchas

discountsandcoupons)and non-pricedbasedpromotions(e.g. multi-packs,quantity

increases,give-awaysand competitions) (CampbellandDiamond 1990).However,

14
TheMarketingBook cbapter(# 1) appearsto be the first (andpossiblyonly)

publicationto distinguishbetweenvalue-increasingsalespromotionand value-

addingsalespromotion.

'Value-increasingpromotionsalter theproductprice equationby altering the

product quantity or quality or decreasingits price.

Value-addingpromotionsleavethe basicproduct or price intact, and offer

somethingdifferent in termsofpremiums(freeor self-liquidating),

Informationor opportunities.Thebenefitscan be instant (scratch-and-win

competitions),delayed(postalpremiums)or cumulative(loyalty

programmes).'

The follo%ingtableclassifiesthe different typesof salespromotionusingthese

dcrinitions.

15
 SALES PROMOTION TYPE

VALUE INCREASING (alters VALUE ADDING (offers

price/quantity or price/quality "something extra" whilst leaving core
equation) product and price unchanged

Discountpricing Samples
Money-offcoupons Specialfeatures(limited editions)___
Paymentterms(e.g. interestfree credit) Valuedpackaging
Refunds Producttrial_
Guarantees In-packpremiums
Multipackor multi-buys In-mail premiums
Quantityincreases Piggy backpremiums
Buybacks Gift coupons
Info (e.g. brochure,catalogue)
Clubsor loyalty programmes
Competitions

Tberearea numberof traditionalprejudicesheld by marketingacademicsaboutsales

promotion(detailedin publication #9) i.e.

e asan 'externalstimulus' promotionscan boostshortterm sales,but vvill not

influenceconsumersonceremoved.

* by alteringthe 'deal' offered to customers,promotionswill lower their reference

price,leadingto postpromotionaldisaffectiononcethe dealrcvcrtsto normal.

* promotionalpricing will lower customersevaluationof the brandbecausetheyuse

price asa surrogatemeasureof quality.

16
9 promotionsaremore importantin changingthe timing ratherthan the level of

purchasingbecausecustomerstend to buy earlieror stockpileduring promotions

andthenbuy lessafterwards.

Theseprejudicesreinforcethe conceptof salespromotionasfocusedon physical

products,monetarypricesand the achievementof shortterm behaviouralchange

amongconsumers.Socialmarketingis typically the converseof this, concernedwith

intangibleproducts,non-monetarycostsand long term behaviouralchange.

However,manyof theseconclusionsarebasedon academicresearchconductedon

priced basedvalue-incrcasingpromotionsconsonantwith the view Of Jones(1990)

that, 'In mostcircumstances,

promotionsmeanprice reductions'. But because
value-

addingpromotionsdo not alter the productor the price, someof thesetraditional

prejudicesno longerapply.

In order to gain a complete picture of the contribution that each salespromotion

technique can make to overall marketing strategy, it is essential to researchthem

separately.This particular researchproject adds to the current state of knowledge by

taking an in-depth look at the role and use of competitions.

17
 SECTION 3

EXAMINING THE POTENTIAL OF COMPETITIONS

As salespromotionboomedin practicethey havebecomean increasingfocusof

academicinterestand research,but competitionshaveremainedsomethingof a

mysteryeventhoughthey arebeingusedfar morefrequentlyin a wide rangeof

To datethey haveusuaIlybeenlumpedtogetherwith other below-theline

Sectors.

techniqueswhich are very different in their nature,usesandbenefits.

Publication#2 tries to redressthe balanceby taking a detailedtheoreticallook at

competitionsasusedin the commercialsector.It examinesthe growth in competition

useandattemptsto developa frameworkto analysetheir natureandtheir potentialto

influenceconsumerbehaviour.The papersuggestsseveralreasonsfor the growth of

salespromotionin general.The rising price of advertisingandconsumersbecoming

increasinglydesensitisedto massmediaadvertisingareboth reasonsthat would be of

particularinterestto socialmarketersoften facedwith severelyrestricted

budgets.
Communications

Competitionspromotea productwithout tampcringwith pricc/quantityvalueequation

andinsteadaddvalueby makingpurchaseor awareness

of a producta 'ticket' to

Cnteringa competition.This, the article suggests,hasseveraladvantages:

18
 1. Price stability - avoiding someof the headaches
associatedwith administering

temporaryprice changes,andthe havocthey canwreakon budgetsand

forecasts.

2 Processstability - addingvaluewithout changingthe coreproduct'squantity

or quality, side stepspotentialproblemswith packagingandprocessing.

3 Referencepricestability- importantif couponsandmoney-offdealsdo indeed

leadto only temporarybrand-switching.

4 Quality image maintenance-allowing market-Icadingbrandsto be promoted

without the risk of promotionalpricing beinginterpretedasa movedown

market.

5 Appropriateness- in channels,marketsor cultureswhereprice promotions

maynot be acceptableor wherethereis an intangibleproduct.

Thearticle alsodescribesthe potentialbcnefits of competitionsfor their sponsorsi.e.

" Temporarysalesuplift

" Demandsmoothing

" Marketresearch/mailingopportunities

" Ideageneration

" Packagingrevamps

" Advertisingcampaignlink-ups

" Pointof saleopportunities

" PR opportunities

" Reducingthe effectivenessof a rivals salespromotion

19
* Messageintegration

Thenext sectionlooks at the methodologiesusedto investigatehow

competitionsare

usedin the commercialsector;sponsorsperceptionsof competitionsandthe potential

of on-linesalespromotionsin socialmarketingcampaigns.

20
SEMON 4

METHODOLOGY

This PhD by publication with its II papershasincorporatedseveraldifferent research

mcthodologics.The individual papersprovide moredetail but includedhereis an

overviewandcritique of the methodologiesusedwithin the threemain studies.These

wcre:

An audit of 2,646UK competitionsgatheredover a threeyearperiod.This was

conductedin orderto investigatewhat typesof competitionswerebeingused

andby which commercialsectors(papers#3-8)

9A mail questionnairesurveyof sponsorswhich wasconductedto look at

managersperceptionsof the role of competitionsandhow theywerebeing

plannedandmanaged.(paper#9)

9 Qualitativeresearchin the fonn of sixteenfocusgroups& twcnty in-depth

interviewswasalsocarriedout to look at promotingsunsafetyfrom a social

marketingperspective.Informationfrom this researchwasspecificallyusedin

paper#11 to investigatethe potentialof usingthe Internetfor communicating

sunsafetyto teenagersandalsoto explorethe role that on-line sales

promotionscould play in this.

21
 Tvpei of researchdesian

Ikee maintypcsof researchdesignareexplicatedwithin the literature;exploratory,

dmriptive andcausal(Greenet al 1988).

Exploratoryresearchis bestsuitedto situationswhereconceptsarc poorly understood

andthereis a definite needfor clarificationandthe developmentof initial ideas(Ghari

et, al, 1995).Aaker et al (1995)defineit as ' researchthat is usuallydesignedto

generateIdeaswhenthe hypotheses
are either vagueor ill-defined, or do not existat

all'. Hencethis form of researchtendsto rely on secondarydataand/orinterviews

with personswho haveknowledgeof the phenomenaunderinvestigationto aid initial

(Aaker et al, 1995).This type of researchis often usedto conccptualisc

understanding

hithertounknownconceptssuchasmarketingorientationandservicequality

(Parasuraman
ct. al., 1985).This type design
of research was usedfor the major part

of thesalespromotionresearchand led to the conccptualisation

of valueadding and

value-increasingsalespromotionsintroducedin TheMarketingBook chapter(paper

#1).

The secondresearchdesignoption is descriptiveandthe objectiveis to identify

relationshipsandassociationsbetweenvariables.This is appropriatewherethereis an

attemptto tcsthypothcses(Churchill, 1991).Papcr#11looks at usingthe Internetto

communicatethe sun safetymessageto teenagers.Using literaturerelatingto

useof the Internet,a conceptualframeworkwasdeveloped(seesection9 for

teenagers

moredetails).The 4C's modelproposesthat in orderto effectively engagewith

tecnagcrs,wcbsitesneedto incorporateContent,Connectivity,Commerceand

22
Community.On-line salespromotions,including competitions,can be usedto enhance

all of thesefour aspects.Empirical researchin the form of in-depthinterviewswith

teenagers
was then to
used examinethe model.Generallyin descriptive data
research,

is collectedin a structuredfashiontypically using largerepresentativesamples.The

findingsarethen usedto makegeneralisations

aboutan entirecustomergroupor

market(Malhotra2002).In this case,qualitativeresearchusinga small samplewas

conducted,thereforeit could be classifiedasexploratoryresearchratherthan

descriptiveresearch.As a consequence,
the studywould needto be followed up by a

would haveto be made

largescalequantitativeresearchprojector generalisations

with caution.

The third typeof researchdesignis causalresearchwhich aimsto clearlyestablish

causeandeffect relationships.This type of researchdesignwasnot usedin any of the

papersincludedin the portfolio.

Study I- Audit of comnetitions

Most textbookson conductingmarketingresearchwould agreethat first attemptsat

datacollectionshouldlogically focuson secondarydata.

"A good operatingrule is to considera surveyakin to surgery- to be usedonly

after otherpossibilities havebeenexhausted

w-
(Churchill, 1991pg 247).

23
 Themostsignificantadvantagesof secondarydataarethe cost and time economies

theyoffer the researcher.The two disadvantages

whenusing secondarydataare

problemsof fit andproblemsof accuracy-therearenumeroussourcesof error in the

collection,analysisandpresentationof marketinginformation.The following criteria

thoughshouldhelpjudge the accuracyof any secondarydata;they arethe source,the

purposeof the publication(not to promotesalesto advanceinterestof particular

group)andgeneralevidenceregardingquality ( i.e. how was datacollected?).

Somejudgementaboutthe quality andaccuracyof secondarydatacan be madeby

examiningthe purposeof publication,the ability of the organisationto collect the

data,andgeneralevidenceof carefulwork in their presentationandcollection.

"A sourcethat hasno axe to grind but ratherpublishessecondarydata as its

primaryfunction deservesconfidence.Ifa datapublication Is a sourcesralson

d'etre, high quality mustbe maintained.Inaccuratedata offer suchafirin no

competitiveadvantageand their publication representsa potential lossof

confidenceand eventualdemise.Thesuccessofany organisationsupplyingdata

as Itsprimarypurpose dependson the long run satisfactionof its usersthat the

Informationsuppliedis indeedaccurate"
//, L
(Churchill,1991pg 253)

The majority of informationrelatingto competitionswascompliedfrom a specialist

monthlymagazineaimedat competitionenthusiasts.Dataon individual competitions

wcrecollcctcdboth by the authorsof the magazineandby subscriberswho would

24
sendin detailsof competitionsavailable(therewas a monetaryincentivefor doing

so).

Useof this specialistmagazineasa sourceof dataprovidedthe benefitsof time and

howeverincludedthat of 'fit'. The monetaryvalueof

costsavings.The disadvantages

prizeshadto be for Although

estimated eachcompetition. this wasrelatively easyfor

durablegoodsandevenholidays,its was not alwaysso easyfor experientialprizes

suchas 'a day out with a celebrity.

Thesampleconsistedonly of competitionsavailableon a nationalor regionalbasis

(localoneswerediscounted)andwhich wereassociatedwith a productor service,as

opposedto beingall or part of the productor serviceitself (so lotteriesor the

numerouscompetitionswhich area regularfeatureof magazinesweren't included).

For this reason,the audit of competitionscannotbe considereda censusbut it is also

difficult to estimatehow unbiasedthe sampleusedwas.However,given the sizeof

thesample,the samplingerror would be small.

-Studv 2ýwSurvev of snonsors

To studythe useof promotionalcompetitionsin practice,a surveyof marketers

responsiblefor managingcompetitionswasundertaken.Over a threemonthperiod,

marketingmediawas monitoredto try andlocateFMCG brandsrunningnational,

orientatedcompetitions.An initial list ofjust over 100brandswas

Consumer

developedin this way. The majority of the brandsinvolvedwerein food, drink and,

personalcareproducts.The managerresponsiblefor eachbrandwasthencontacted6

25
monthslater andpermissionsoughtto sendthema postalquestionnairerelatingto the

compaition.

The primarydatacollection chosenwasthat of a mail questionnairesurveyasthis

methodoffers accessibilityto a nation-widesample;the scopeto processa high

dcgreeof standardisation;no interviewerbias;respondentconveniencein the time and

placeof completion;the scopeto investigatea wide numberof issuesin one

instrumentandeaseof administration(GreenandTull, 1978).However,the

limitationsof mail questionnairesarealsoacknowledgedto includea lack of control

over responseratesandreturnschedules,andthe needto implementfollow up

mailingsto generatean adequateresponserate(Jobber,1986).

Somecompaniesdeclinedto takepart at this stageso that some90 questionnaires

wereeventuallysentout to explorethe managersperceptionsof their competitions

andthcir rcsults.

Fiveclassesof informationto include in a questionnairehavebccn idcntiricd (Barker

andBlankenship,1975)as

* Facts& knowledge- presentbeliefs,perceptionsanddepthknowledgeof

respondents

* Opinions- existingattitudes

9 Motives

9 Pastbchaviour

* Futurebehaviour

26
All five aspectswere includedin the questionnairesentout to sponsors.

Churchill(1991)presentsa well usedmodelof the stagesof developmentof a

Although not designedto presenta definitive step-by-stepsequenceit

questionnaire.

cmbracesa format which providesa checklistof the stagesto be determinedandthe

issuesto be comprehended.

27
 Procedure for developina a auestionnaire

Step I What Information will be sought

Step 2 Determine type of questionnaire and method

Step3 Determine content of individual questions

Step 4 Determine form of response to each question

Step 5 Determine wording of each question

Step 6 Determine sequence of questions

Step 7 Determine physical characteristics of questionnaire

Step 8 Re-examine steps 1-7 and revise if necessary

Step 9 Pretest questionnaire and revise if necessary

Source:Churchill 1991,page 360

Thesestepswerefollowed whendesigningthe questionnairesentout to sponsors.

28
 Threeconditionshavebeenstatedasnecessaryfor ensuringa true responseto a

question (Ferber,R andM. Hauck, 1964)

shouldbe ableto understandthe question

a) respondents

b) theymust be ableto provide the informationrequested

c) theymust be willing to providethe information

It is for thesereasonsthat the questionnairewassentout to brandmanagers

responsiblefor the competition,allowing sufficient time delayfor evaluationof

the effectivenessof the competitionto be completed.Ten brandmanagers

declinedto takepart in the surveyasstatedearlier,mostmaintainingthat it was

corporatepolicy not to respondto researchquestionnaires.

Chisnallsuggeststhat for mail surveys,the drafting of cffective questionsis even

moreimportantthan ever.Theymust be clearlyworded,easilyunderstandable

with only one interpretationpossibleandthe languagein which theyarc phrased

mustbe suitablefor the samplepopulation.I Ic alsosuggeststhat it is sound

practiseto includea coveringletter with a mail questionnairewhich shouldoutline

the objectivesof the studyandinvite informantsto respondby completingand

returningthe encloscdquestionnaire.The letter shouldstressthat die information

providedby the respondentwill be treatedconfidentiallyand their nameswill not

be revealedin any subsequent

publication.The coveringletter includedwith the

questionnaireis shownin Appendix3.

29
Mail queWonnaireshavecertainlimitations apartfrom the type of questionsthat

canbe asked.

* Answersmust be acceptedaswritten without the benefitof additional

explanationswhich interviewerscould obtainby probingquestions.

* In general,mail questionnaires
arenot a suitablemethodof enquirywhere

samplepopulationsareof low intelligenceor poorly educated

9 Because be
can read
mail questionnaires fluough completelybeforebeing

answered,biascanresult from knowing the overall structureof

questioningwhen answeringindividual questions-With personal

interviewing,the patternof questioningis not immediatelyapparent,

althougha different typeof biascanarise,namely,interviewerbias.

* Responses may frequentlyrepresentthe views of

to mail questionnaires

more than be hcn

%&,
onepersonwhich would undesirable the surveywants

the views of individuals-althoughsomemayprofit from collectiveviews.

9 Personalinterviewingallows investigatorsto supplementthe answers

given by respondents
by somequalitativeassessment
which addsto the

valueof the survey.Theseobservationaldataare lacking in mail cnquirics.

30
 The questionnairecontaineda mixture of questionsbasedaroundLikcrt scalesto

measuremanagersperceptionsof the role of competitionsandalso both openand

closedquestionsdesignedto build up a clearerfactualpictureof the way in which

competitionsareplannedandmanaged.(seeAppendix3). Both the questionnaire

formatandlayoutcould be improvedusingtoday'stechnology.However,it must be

that this wasproducedin 1994aspart of an MBA dissertation,therefore

remembered

boththetime andtechnologywererestricted.

Of 90 questionnaires 48 wereretumcdandalthough
sentout, usableresponses this is

a smallsamplein itself, it representsa considerableproportionof the FMCG

competitionsbeingrun during the surveyperiod.If moretime had beenavailable,

follow up calls could havebeenmadewith the aim of improving responseratesand

bias.
cstimatingnon-response

QY-3- Oualitative research on Sun-safetv and the Internet

-Stud

Focusgroups(alsocalled focusedgroups'or 'group depthinterviews) arc the most

commonlyusedqualitativeresearchtechniquein appliedsettings(Goldmanand

McDonald1987;Greenbaum,1993,Merton ct al., 1990;Morgan 1988;Stewartand

Shamdasani,
1990).Although the term focusgrouporiginatedin sociology(Mcrion,

FiskeandKendall, 1956),its applicationhasbecomemostcommonin marketingand

polling surveys.The size of the groupshouldbe largeenoughto generatediversity of

opinions,but small enoughto allow everyoneto sharein the discussion- about7-10

31
 is optimal(Krueger,1994).Ideally, the focusgroupis composedof personsfrom

similar backgroundswho do not know eachother very well.

Focusgroupinterviewingtypically involvesa moderatorwho asksopen-ended

questions,but the degreeof directionandstructurecanvary dependingon how narrow

or broadis the inquiry. In addition to the needto be sensitive,flexible andempathic,

themoderatormust avoid certainpitfalls commonto groupsituations(Fontana&

Frey,1994)Theseincludedominationby onepersonor a clique or lack of

participationby somegroupmembers.

A focusgroupmethodologywasusedto exploreprogresstowards,andbarriersto,

sun-safety(particularlyin rclation to children)in Australiaand the UK- Andrcascn

(1995)advocatesthis type of formativeresearchasa first stagein socialmarketing

campaignsto discoverthe knowledge,attitudes,practicesand beliefsof the target

adopters(in this casechildren)andotherimportantpublics(in this casethosewith a

"stake"in child sun-safety).Ile suggeststhat suchresearchis vital to understand:

" presentknowledgeandawareness
levels.

" barriersto desiredbehavior.

e the role of social pressuregroups in accelerating or retarding adoption.

9 theadopter'sown perccivedself-efficacy.

These were all key themes the focus discussions which were held in
within group

Launceston,Tasmania and Cardiff, UK. Tasmania is Island State which lics south
an

of mainland Australia, betwccn ]attitudes 48 & 43 degreessouth. It has a population

of approximately 450,000, of which 94 % arc descendantsof European (particularly

32
 British andIrish) migrants.It alsohasthe world's highestincidenceof non-melanoma

skin cancercases(Armstrongand Kricker 1995).Although the two cities in which the

sessionswereheld areon oppositesidesof the world, they havemanysimilaritiesin

termsof economichistory,culture andtopography(e.g. driving time to nearestbeach).

I'lie strategyof recruitingfocusgroupparticipantswasstructuredaroundfinding

schoolswilling to participate.Oncethis was done,a "snowballing" approachwasused

to identify adult participantsfrom the schools'catchmentareas.The groupswere

comprisedasfollows:

I. Children (infant School age) 6-7 years;

2. Children (Junior School age) 10 11 years;

-
3. Children (Senior School age) 15 16 years;
-
4. Parents ( of children 0-16 years);

5. School stakeholders (including teachers,PTA or'Parents & Friends'

representatives,and governors);

6. Doctors and other health professionals;

7. Coaches and supervisors: active in clubs or groups related to children's sports

and outdoor activities (including coachesin tennis, Australian rules football,

soccer,cricket, hockey, swimming, and athletics; and Boy Scout and Girl Guide

leaders);

In total, sixteen focus groups were conducted. For each session, invitations were

issuedto createa groupof six to nine participants(achievedfor almostall groups).

Eachsessionwasrun by two facilitatorswith training in interviewingskills and focus

33
 groupmoderation,andwas recordedfor transcripflonand analysis.A low visibility

microphoneat floor level was usedto preventit from inhibiting the discussion.Adult

sessionstypically lasted90 minutes.The children's sessionslastedbetween60

minutes(for teenagers)and 30 minutes(for the 6-7 yearolds).

Sincethe aim was to discoverparticipants,"normal" beliefsand levelsof knowledge,

theywerenot informed of the specifictopic beforehand,but were invited to "a

discussionon child healthand safeV'. This preventedany "prepping" taking place.

Eachsessionwas structuredarounda list of specificquestionsfor discussion.These

werepiloted beforehand,both by consultationwith relevantexpertsandby testingin

Pilot sessions.The discussionwasallowedto developinto areasbeyondthe question

list whenthis seemedpotentiallyuseful.nc exactquestionsctsuscdvariedbetween

groupsdependingon their ageandbackground.The issuesdiscussedaredctailedin

Paper#11.

As far aspossiblethe circumstancesof the Australianand UK discussiongroupswere

madecomparable.The participantsin both countrieswereprcdominantlymembersof

the"professionalclasses"(particularlysincecducationalistsandhealthprofessionals

dominatedtwo of the groups),which could be oneform of biasin the results.This

issuewasevenidentified by a numberof participantswho saw sun-safetyasan issue

drivenprimarily by level of educationandsocialclass.However,it is worth noting,

that it is the professionalclasseswhich actuallyhavethe highestincidenceof

mclanoma(11olman,D'Arcy andMulroney 1980).

34
In termsof the usefulnessof collectingdatafrom childrenbelow secondaryschool

age,the traditional view is that it cannotbe donereliably, which meansthat often

relativelylittle is known abouttheir beliefsandattitudes(Bcndelow,Williarns and

Oakley1996).Given that the behaviorof this groupand their parents(andothers

responsiblefor their careand safety)is centralto the public policy goal of reducing

skin cancerlevels,it would seemremissto screenthemout of the researchbecauseof

suchconcerns.

Bencrits of focus groups

9 Focusgroupsallow for interactionamongparticipants,thusthe researchercan

kam aboutpatternsof interpcrsonalinfluenceregardinga spcciricproductor

communication

Pccrprcssurein a focusgroupcan supporthoncstdisclosurc.Participantsmay

be lesslikely to falsify their attitudesif theypcrceivethcmselvesto be among

similar typesof people.

The moderatorcanusegroupdynamicsto supportresearchobjectives.For

exarnplehe/shemayencourageconflict or competitionto draw out opposing

viewpoints

Focusgroupsareflexible. Theycan be conductedwith just aboutany typeof

tar.pted, audienceat any time of the year

35
 o Focusgroupsallow for spontaneous,
unfiltered input by participants

Problemsassociatedwith focus groups

Most internalproblemswith focusgroupsarea consequenceof problematicgroup

dynamics.Pccrpressurewithin a groupcan suppressunpopularattitudes.Some

participantsmay feel reluctantto expressan unpopularopinion and the moderatorin

this situationmay lack the skills to facilitategroupopinion. Groupopinionsmay seem

to beswayedby dominatingrespondents. may fccl

Passiveor shyrespondents

reluctantto challengea forceful groupmember.This wasnot a problemwith the adult

focusgroupsalthoughtherewereoccasionalincidenceswith the teenagefocusgroups.

In summary,the major advantagesof focusgroupto a qualitativestudyincludes

savingsin time and resourcesandthe elicitation of rich datastimulatedby the group

format.But focusgroupsalsohavetheir limitations.Theyrequirea considerable

amountof organisationand skill on thepart of the modcratorand they may not be

suitablefor highly sensitivetopics.

"The researchprocess,particularly qualitativeresearchwhich necessitates

the intensiveinvolvementofparticipanis, mayenhanceftars,whetherjustoed

or not"
(MacFadyenand Hastings,2001)

36
 Carewastakenthat either an expertor supportmaterialoffering advicewas available

for focusgroupparticipantswho hadconcerns

aboutsunsafetyand skin cancerasa

resultof the discussiongroups.

Individual Depth Interviews

Sometimesalsocallcd'IDIs' or 'one-on-oncs',in-depthinterviewsusuallylast from

one-halfto a full hour, but cango on longerdependingon projectrequirements.

Tlicscsessionsemploya focusedinterviewingstrategyin which questionsarc open-

endedandnon-directive,allowing thediscussionto follow the subjects'responses

and
issues.IDIs shouldnot be confusedwith surveyresearchinterviewingin which a

strictly definedsequenceof closedformatquestionsconstitutethe predominant

format.(Mariampoloski,2001)

Anywherefrom 5-50 or more respondents,

interviewedoneat a time, may be invited

to participatein an IDI study. Interviewsmaybe conductedat a centralinterviewing

facility or theymay takeplace the homeor office.

at respondent's

To furtherinvestigatethe potentialof the Internetasa mediumto promotesunsafety,

twentyin-depthdiscussionswith Internetusers(aged15-16to correspondwith the age

groupinterviewedpreviously,andevenlysplit betweenthe sexes)weresetup to

explorethe issuesinvolved. Participantswereidentifiedandcontactedthroughthe

schoolsusedin the focus groups.Again questionswerepre-pilotcd,andresponses

recordedandtranscribed.The questionsetusedwithin the interviewsarc also detailed

in Paper#11.The interviews
generallylastedbetween30 minutesandone hour.

37
IDIs arcthe preferredmethodologywhenthe projectdemandsintensiveprobingof

or reactionsto ideaswithout influencefrom peers. IDIs facilitatea high

respondents,

degreeof psychologicaldepth,that is, investigationor motivations,associationsand

explanationsbehindproductpreference(Siverman,1993)

Thedecisionaboutwhetherto selecta groupvs. individual depthinterview approach

is Verysubjectiveand without strict guidelines. Mariampoloski(2001)

in thetablebelow lists severalconsiderationsthat might influencethe decision.

38
 Considerations for FocusGroups vs. In Depth Interviews.

I Considerations FocusGroups IDIs

CostFactors Economicaluseof moderatorand Extensiveuseof moderat.

facility time and facility time, making
it moreexpensiveper
intcrviewee.

Time Economicaluseof time for Extensivetime required

interviewingandanalysis. for interviewingand
substantialvolumeof
informationis produced,
thusanalysingthe results
alsotakestime.
Groupinteraction Group interactionis presentand No groupinteraction.
may allow for exchangeof ideas Subjectlargelyreactsto
andinterpersonalinfluence. moderator.
Pecrvs. Grouppressuresmayproduce No pressuresbut subject
Authority prcssurcs spontaneous challenge.Peer mayrcact to authorityof
accommodationmay facilitate the moderator.
honestdisclosures.

lnflucnce Peersmay influencechangeof With only onerespondent

opinions. This may rcsult in thereis no Potentialfor
somelevel of contamination, influenceor
however,it is often important contaminationby other
to learnhow 'shakeable' respondents.
respondents'Was arc.
Scnsitivetopics Somerespondents may find it Somercspondcntsfind it
embarrassingandinhibiting to easierto dealwith
dealwith sensitivetopics in a sensitiveissuesin a
group. Othersconsiderit one-on-oneclinical
liberatingto interactwith peers setting.
who sharea problemor
preference.
Respondent
access Limited time to talk to each Eachrespondentgets
respondent.Competitionto take equaltime. Tlirough in-
centrestagemayproducchighly depthprobingof each
disproportionateparticipation is
respondent possible.
by individual respondents.

Scheduling May be difficult to coordinate Easier to schedule at

schedulesof hard-to-rcach central facilities, homes
respondentsfor a singlemeeting. or officcs.

39
Referringto the abovetable, IDI's werechosenfor this part of the projectasthe major

bcncfltswererespondentaccessandscheduling.For ethicaland safetyreasons,it is

verydifficult to obtainpermissionfrom schoolsto interview pupils on schoolgrounds

duringschooltime. It is also logistically difficult to assemblea groupof teenagers

at a

mutuallyconvenienttime and location.The other benefitsof conductingIDI's in this

casewasthat teenagerswereableto revealtheir true extentof knowledgeand useof

theInternetwithout fear of embarrassment

or peerpressure.The major disadvantages

werethe time involved in conductingseparateinterviewsandthe lack of group

interactionrestrictingan exchangeof ideas.

40
 Prono%e(l methodology for investigating consumer response tosales promotion

The final part of the project will investigate consumer responseto salespromotion. In

the FMCG market, almost everyone could be considered a potential consumer,

therefore implying a very large population. Although the commercial databasescould

be used at some expense, for practical purposesa quota sample is proposed. Quota

sampling is a non-probability sampling technique that is a two stage restricted

judgemental sampling. The first stageconsists of developing control categoriesor

quotas of population elements. In the second stage,sample elements arc selected

basedon convenience orjudgemcnt (Malhotra, 2002). In the first stage, it is proposed

that Proportionate quotas are assignedbasedon age, sex and socio-cconomic class so

that the population in the community is rcflcctcd in the sample.

A numberof potentialproblemsareassociatedwith this samplingtechnique.Relevant

characteristics be
may overlookedin the resulting
quotasettingprocess, in a sample

thatdoesnot mirror the populationon relevantcontrol characteristics.

This will be

minimisedby doing a seriesof in depthinterviewsaspreliminaryexploratoryresearch

Wore conductinga largescalequantitativesurvey.Anotherpotentiallimitation of

quotasamplingis that sincethe elementswithin eachquotaareselectedon die basis

of convenienceorjudgemcnt,manysourcesof selectionbiasarepotentiallypresent.

Interviewersmay chooserespondents
who aremoreeasilyaccessibleandthis can
introducebias(Churchill, 1991).Quotasamplingis alsolimited in that it doesnot

Permitassessment
of samplingerror. However, can
quotasamples be convenientand
lessexpensivethan conductingprobabilitysamplesandwith adequatecontrolscan

obtainresultscloseto thosefor conventionalprobabilitysampling.

41
A questionnairewill be usedto interview thoseselectedin the quotasample.The

sameguidelinesfor developingquestionnairesoutlinedpreviouslywill be followed.

42
SFC,
TION 5
.

HOW COMPETITIONS ARE USED IN TTIF COMMERCIAL SECTOR

Despitetheprevalenceandobviouscostof competitions,theyhavereceivedrelatively

little attentionfrom marketingacademics,comparedto otherpromotionaltools.

Publications#3-8 aims to contributeto an understandingof the way competitionsare

usedthroughthe resultsandimplicationsof a surveyof 2,646UK competitions

gatheredover a3 yearperiod. These for

competitionsaccounted over % million prizes

worth,at a conservativeestimate,over L47 million. Informationfrom a nation-wide

networkof hobbyistcompetitorsaswell asspecialpacks,entry forms and

competitionsrulesall providedinformationaboutthesecompetitions(moredetailsarc

includedin Section4).

This datawasencodedusingMinitab andanalysedto provide informationwithin the

commercialsectoras a whole (publication#3) andacrossa rangeof different

industries,specifically:

ServiceIndustries (publication #4)

Financial Services(publication #5)

Travel & Tourism (publication #6)

Drinks Industry (publication #7)

Food Retailers (publication #8)

43
Becauseeachof thesepublicationswaswritten for a different sectorandjournal there

is of necessityan overlapin the literaturereviewand theory.However,the data

analysisfor eachsectorcontributessignificantlyto the overall picture of the diverse

marketingopportunitiesprovidedby competitions.It alsorevealshow competitions

canbe usedto overcomesomeof the uniquechallengesfound in socialmarketing.

IMPI ICA TIONS

Theanalysisfor the commercialsectorasa whole andthe varioussub-scctors

confirmsthat competitionscan providea varietyof marketingopportunities.The

particularcharacteristicof salespromotionis that of providing 'extra benejIts'rclating

to eachof the marketingmix variables:

Produalvervice "lated henerits

a) as an alternativeto aftering the core senicelproduct - manysalespromotions

involve increasingthe coreproduct(e.g. 10%extrachocolatefree)or coreservice

(C.9 two cinemascatsfor the price of one).In somecasesthis may be impossible,

for examplemortgagelenderscannotusuallyafford to offer two loansfor the price

of one(#5); or undesirablesuchas in the wine tradewherelarger(litrc) bottlesof

wine areassociatedwith inferior quality(#7).Competitionsadd valueby making

or usea ticket to enterthe competitionwithout the needto alter the

awareness

productor service.In socialmarketing,if the socialproductprovesunsuitable,an

attemptshouldfirst be madeto alter the productoffering to meetthe needsof the

targetadopter(Stcadand Hastings1997).However,theremay be occasionswhen

44
 the social product proves to be immutable. In this case,as in commercial

marketing, competitions provide an alternative to changing the core product or

service.

b) differentiation opportunity - Kotler (1994)idcntiricd creatingcompetitive

differentiationas a key challengein servicemarketssinceinnovationscanbe

copiedrapidly by competitors(#4).Evenwithin non-scrviccsectors,technological

advancesmeansthat it is often difficult to maintainproductsuperiority.

Competitionsoffer a useful sourceof differentiatione.g. for banks(#5)whereapart

from small detailsthereis little to differentiateone bank'sofferings from another.

Similarly, for consumersfacedwith row after row of wine bottleson the

supermarketshelves,an eye-catchingcompetitioncan be oneway of attracting

attention(#7). Evidence is by
of this supported the fact that over 60% of the drink-

sampleusedeithercompetitionbottle collarsor point of salematerial.Social

marketingprogrammesalso have for attention.

to compete consumer's Any

tool that assistsdifferentiationfrom competitorsis of potentialuse

Communication

to socialmarketers.

C) adding a tangible dimension(#4,S) - servicescannotbe readily displayedandthe

effectivenessof advertisingfor servicescanalso be hamperedby their intangibility.

Many socialmarketingprogrammesalso includea serviceprovision e.g. screening

clinics. Competitionpostersandleafletsprovideopportunitiesfor intcrcsting,

tangibleandvisible point-of-sale material.

45
d) qualitycueappeal- theintangibilityOfservicespromptscustomers
to look for

'cues'tojudgetheserviceprovider'squality.Competitions
tangiblesurrogate area

morecost-effective
qualitycuethangive-away for
promotions servicemarketers,

sincegivingcustomer'freebies'whichprojecta highqualityimagecanbe

areoftenfacedwith
Socialmarketingprogrammes
prohibitivelyexpensive.
infeasiblewhendealingwith a
restrictedbudgetsmakinghighqualitygive-aways
largetargetaudience.

Price relatedbenerits

a) as an alternativeto proinotionalpficing in senice sectors(#4,5,6)- with value-

increasingsalespromotions(which altersthe price/productequation)the absence

of a tangibleproductmeansthat for serviceproviders,it is difficult to ofTcr10

percentextrafree or a free trial s=ple (e.g. haircuts)or to createpricc-packsor

bandcdpacks.If the servicecannotbe easilycustomised,pricing then becomesthe

obviouselementto changefor promotionalpurposes.Couponsor other forms of

promotionalpricing arewidely usedin certainservicemarketssuchas

entertainmentand fast food, but therearc difficulties anddangerswhich

accompanytheir applicationto otherservices.This is partly becausesettingprices

for servicesis alreadydifficult andconsumersoften useprice asa surrogate

that promotionalpricing in financial

measureof quality. It hasbeensuggested

scrvices(#5)andthe travel andtourismindustry(#6)hasnot provedworthwhile for

severalreasonsincluding relativelyhigh levelsof customerloyalty, the dangersof

price warsandthe often crucial role of pricing in overall positioning.Even in the

non servicesector,promotionalpricing maynot be attractive.For ex=ple in the

46
 wine market,couponsare considereddowninarka andcheappricesareoften

associatedwith lower quality wine (0). In manycasessocialmarketingdoesnot

incur a monetarycost for the targetadopterthereforepromotionalpricing is not

feasible.Wheremonetarycostsdo occur,the samepotentialproblemsof using

promotionalpricing apply.

b) to compensatefornon-monetarycostssuch as waiting tittles while competitions

-
for goodsappearto add value by giving the customersomethingextrato haveor

takeaway,servicecompetitionswerefrequentlyusedto give the customer

somethingelseto do during the serviceencounter.The bestexampleof this is the

Competitionsoffered in restaurantsandfast food outletswhich give customers

somethingto do and discusswhile waiting for the mealto arrive (#4). In social

marketingnon-monetarycosts(suchaswaiting times,fear andembarrassment)

are

not unusual.Although the provision of a competitionis nevergoing to compensate

for a poorly designedor deliveredservice,it maymakeany gapsthat occurwithin

theservicedelivery processlessnoticeableto, or lessonerousfor, the customer.

Place related benerits

a) Channelselection- the travel andtourismanalysis(#6) showedcompetitionsbeing

uscdto direct consumerstowardsparticulardestinations,operatorsor travel agcnts.In

socialmarketingprogrammesthereareoflcn occasionswhenwe would like target

adoptersto be directedto particularchannels(e.

g. approvcdfamily planningclinics).

47
 Competitionshavethe potentialto influencetargetadopterstowardthesepreferred

locations.

Promotion related betterits

a) consunterinteraction - interactivemarketingis vital for servicesbut difficult to

createthroughadvertising,which is generallya uni-dircctionalmcansof

communication,absorbedrelatively passivelyby the potentialconsumer.

Competitions,by contrast,cancreatereal interactionandinvolvementbetweenthe

customer,the serviceandthe serviceprovider.Competitionsmay rcquirc the

customerto analysethe serviceto answerquestions,or createa slogan,or send

awayfor a brochure,or to meetthe serviceprovider,crcatingnew service

encounteropportunities.BarclaysBank 1998NestEgg compaition required

customersto makean appointmcntwith a 'pcrsonalbanker'to discussthcir savings

necdsin return for the chanceto win f 100,000in prizesand with die promiseof a

freeCadbury'sCremeeggfor cveryonclIn socialmarketing,the opportunityfor an

initial personalcontactbetweenthe serviceproviderandthe targetadopteris of1cn

crucial for the successof the programmeasin family planningor smoking

cessation.

b) PrOvidingConsumerinformation One for the growth of the wine market

- reason
hasbeenthe dcmystifyingof wine by the supermarkets
with improvedlabclling
information.Competitionsoffer an additionalopportunityto provideconsumer

informationandincreaseproductawareness
throughentrymaterialreducing

48
 perceivedrisk of purchasing(#7).Retailermagazinesarc also popularasa meansof

providingconsumerswith informationand increasedproductawareness

through

entrymaterial(#8). In socialmarketing,the first stagein the processof bchavioural

changeis increasingawareness,
usuallythroughthe provision of information.

Competitionscanprovide a channelfor this informationand a meansof ensuring

the targetadopteractuallyrcadsitl

c) developingpartnerships- the total surveyindicatedthat 43% of the competitions

wererun by two (0).

or more sponsors Competitions offer opportunitiesto link

up with partnersto sharecosts,swapresourcesor provide reciprocalaccessto

consumers.For example,new carsasprizesparkedoutsidesupermarkets

provide

instantshowroomsfor car retailerswith a constantflow of potentialcustomers

(#8). In socialmarketing,partnershipsareoften formedwith a varicty of other

bodiesincluding the media,govcnunentandnon-governmcntagencies,

communitiesas well asbusinesses.

d) Influencing intertnediaries retailersarc using'distributor powcr' to dcmandfrom

-

salespromotionsthat aremorecreativeand appealingto

Manufacturers,

Given that the averagegroceryretailerwas offcrcd around20

consumers(48).

timesmore in-storedisplaysfrom manufacturersthanthey could accommodate

(Quclch 1983),retailersarc in a strongpositionto demandthis increasein

expenditure.SocialmarketingprogrammesofIcn involve influencing

intermediaries.For exarnplc,to improvechild sunsafctyit is necessaryto havethe

Co-operation
andsupportof not only the children but
themselves also GPs,
parents,

49
 schoolpersonnelandout of schoolactivity leadersto ensurethat childrenare

adequatelyprotectedat all times.

0 integrating niechanism (#3-8) Competitionsandtheir prizesareofIcn usedasthe

-
focusof advertisingaspart of an integratedcommunicationsplan. PR canbe

generatedfrom prize-giving or links to charitabledonationswith a certainamount

beingdonatedper entry,aswith the Andrcx ElcfricndsAppeal Competition.

Section9 describesonesocialmarketingprogramme- '77ieSmokefreeClass

Compethion',that hasusedthis to goodcffcct.

creativity- therehasbeenmuch recentcriticism that TV advertisingin particularis

becomingso 'creative' that it is startingto miss its objectiveand loseits audience.

ProfessorGarcl Rhys,Cardiff BusinessSchooldiscussingcar advertswamsthat

'theremaybe a dangerofconsumersrememberingthe advertor thesongrather

than theproduct It Is supposedto beselling'(Rhys 1999).Therearc manyrecent

exampleswheretechnologyhasbeenput to effectiveuseto designevermore

interestingbut interactivecompetitions.Oneexampleis Jacob'sTridge 'em to

Win' competitionwhich usedthcrmochromaticink on the wrapperof eachClub

biscuit thusonly displayingthe win/losemessagewhenchilled. This encouraged

usersto buy and refrigeratethesechocolatebiscuitsduring the traditionallyslow

summerperiod.Anotherexampleis Coca-ColaandCoorswho both useda canthat

'talked' (usinga light activatedvoice chip uponopening)to inform consumersthat

theyhadwon a prize (Brandwcck1999).Socialmarketingprogrammesalsohave

to compete for
communications targetadopters
with commercial attention.
Creativecompetitions
couldbeonewayof doingthis.

50
 Oflexibility when it comes to targeting, competitions can offer more flexibility
-

than advertising,which essentiallypresentsone messageat a time to the entire

audience(a 'shotgun' approach).Ulay productswere having problemsreaching

their target market 'women aged 18 to 65 and older' with a universaladvertising

theme.This prompted their' Womanof the World' competition, offering various

holiday prizes ranging from an art tour of London to trekking in the Far East,

designedto appealto the full rangeof agegroups.Although good social marketing

Programmesshould also usethe principle of segmentation,thereare often a

numberof barriersto segmentationin social marketing.In particular, potential

Philosophicalproblemsassociatedwith excluding certain groups.The natureof

thesebarriers,discussedextensivelyby MacFadyenet. al. (1999), resultsin a target

audiencewhich is often more diversethan in typical commercialsituations.This

would makecommunicationtools that offer flexibility particularly useful. In

addition,while a new advertisingcampaignwill typically take monthsto develop,a

Promotionsuchas a competition can often be picked 'off the shelf and

reformulatedas a very rapid responseto a rival's promotion (Curnmins1989)or an

unseensituation(e.g. immunisationfollowing an outbreakof meningitis).

inrIafebene, ts

a) market researcillmailing list for both retailersandmanufacturers(#8)

-
competitionentryforms canprovide valuableinformation aboutcustomersand

Provide mailing lists for future promotional offers. For example, Heinz '100 Day

51
 Driveaway'was a nation-wide promotion tailored to different retail outlets in

terms of the type of competition and prizes offered. An innovative approachto

gaining information about its consumersand the effectivenessof its promotional

spendinvolved the use of a competition foil scratchcard. This included eight

deliberatelybrief questions
on makeupof the entrantsfamily in ageand number,

shoppinghabits plus a key questionon whetherpurchasinghabits had changedto

take advantageof the promotion. All could be completedin under a minute without

the useof a writing implement.This yielded a 60% responserate to a large scale

test involving threepromotionsand 30,000participants.Resultsshowedthat some

PromotionsPerformedbetter in one retail chain than in others.This information

was then usedfor selling to key multiple chainsevenwhile the promotion was in

Progress.If the performancewasaboveexpectations,the retail outlet could be told

in time to increaseits
stockholdings.If it was not performing as well as expected,
therewas an opportunity to in-store displaysand local advertising.One of
usemore
the commonproblemsin is that there is little data
secondary about
social marketing
the targetaudience
readily available.Competitionscanprovide a meansof
collectingthis information.

b) 'C"t cerfaintY
compared to give-aways - barring accidents, competitions involve

Predictable costs unlike give-aways which depend upon redemption rates. The

experience of Hoover, disastrous free flights give-away is a classic example of

s
this, where estimates
put the cost of over-redemption to the company at more than
E20million
as well as much bad publicity (93). Social marketing programmes;faced

with limited budgets

need to be particularly careful of over redemption costs.

52
C) cost-effectiveness compared to give-aways - competitions are often more cost

effective than 'give-away' promotions. For the FMCG sector, give-aways included

with the product may require special packaging or extra shelf space for which some

retailers now charge a supplement. Some give-aways may simply be too big to fit

in the packaging but research indicates that consumers are less attracted by mail-in

give-aways (Reed 1999). Many social marketing programmes would like target

adopters to 'make contact' on a regular or frequent basis e.g. weight loss or

smoking cessation clinics; recycling centres; adult literacy classes. By offering an

additional entry to a competition rather than an additional gift each time, the social

marketer can reinforce extra visits without increasing costs whilst still providing an

added benefit to the target adopter.

d) demandsmoothing the of competitionsbeing used

- surveyuncoveredexamples
both to counteract
seasonaltroughsin demandand to reinforceseasonalpeaks.
Mars regularlyran for their chocolateduring the summerand their
competitions
ice-creamduring the (0). The meansthat demand
winter perishability of services
fluctuationsare the troublesome marketingproblems.They can
most of service

usuallyonly be consumedone at a time so volume-increasingcompetitionsare

rare-However,competitionscanencouragepurchasere-timing e.g. travellers

chequesor foreign exchangeduring slackperiods(#6).They could also be usedin

the sameway in social to be immunised(e.

g.
marketingto encouragepeople
againstflu or travel diseases)at non peaktimes.

53
 The results of the empirical analysisfrom the survey overall and the breakdownfor

different industrial sectors,clearly demonstratethan competitionsare more thanjust

'a short term tactical tool to boost salesofstruggling FMCG brands' Thesurvey

showedthat although the major sponsorswere FMCG firms or supermarkets,the

usersof competitionswere as diverseas water companies,charities,estateagentsand

evensolicitors - all associatedwith unsoughtgoodsas is often the casewith social

marketing. Of the FNICG firms, top brandssuchas Heinz, Coca-Colaand Golden

Wonderwere frequentusers this marketingtool. In addition, for the surveyas a

of

whole, 25% of the competitionsdid not requirea purchaseto be made.In the service

sectorthis figure was as high as 54%. This demonstratesthat competitionswere not

being viewed by the tool to boostsales.

sponsorsmerely as a

Competitionscan be be highly creativetool usedin a wide

seento a versatileand

rangeof industriesto differentiateproductsand services,enticenew customersand

rewardexisting customers.This new perceptionof salespromotion in general,and

competitionsin particular, makesthem of far more potential useto social marketing

thanhasyet beenappreciatedL

54
 SFCTION 6
.

11FRCEPTIONSOF COMPETITION SPONSORS

Publication#9 (Journal ofMarkeling Management builds on the earlierresearch

-3)
looking at competitionsthemselvesto test empiricallywhetherthe potentialmarketing

communicationbenefitsclaimedfor compaitions wereactuallyrecogniscdand

pursuedby marketingpractitionersin the commercialscctor.The spccific claimsthat

this studysoughtto test werethat competitionshadthe potentialto:

" improvebrandawareness
andcustomerattitudestowardsa brandin waysthat

would outlive the competitionitself

" stimulateproducttrial

" hclp to smoothseasonaldemandpatterns

" act asa two way communicationchannel,to help with taskssuchas gathering

markctinginformationanddevelopingcustomerdatabascs

" link up with abovethe line advertisingcampaignsto reinforceadvertisingthcmcs

or to be usedasa basisfor advertising

" be usedto reinforcepoint-of (POS)communicationcfforts

-sale
N Provideusefulpublic relations(PR) opportunities

x be usedasa tacticalweaponto try andnegateor reducethe cffcctivencssof rival's

promotionalefforts

To studythe useof competitionsin practice,a surveyof marketcrsresponsiblefor

Managingcompetitionswasconducted.Detailsof the methodologyusedarc included

55
 in Section 4. The survey was restricted to FMCG brands
only, which still represents

the main users of competitions. However, it should be noted that the findings may

vary in terms of their applicability to promotion in other sectors, and that the sample

size was relatively small, so that any gcneralisations must be made with caution.

Remilts

The survey showed that competitions were being used for tactical reasonssuch as to

stimulate salesor product trial, smooth seasonaldemand fluctuations and provide a

responseto a competitors initiative. However, they were also bcing used in a more

strategic role - to raise consumers awareness,encouragebrand s%vitching,collect

consumer information, provide product information, gain support from intermediaries

and the sales force, integrate with other promotional efforts such as advertising and

Pit, build the brand and improve long term market share.

Theresultsof the surveysupportedthe contentionthat competitionsrcprcscnta

flexible marketingcommunicationstool that is usedby marketingmanagersto help to

pursuea varietyof strategicand tacticalobjectives.It alsodemonstratcdthat sponsors

Nt a relativelyhigh level of satisfactionwith competitionsasa communication

technique.This was further supportedby the fact that manywerewilling to investa

considerableproportionof their communicationsbudgetto competitionsandthe

majority intendedto usecompetitionsagain.Thcrearc manyoccasionswhenthese

bcncritswould also appear

attractiveto socialmarketingmanagers.

56
 -SECTION7

COMPETITIONS AND CONSUMER BEHAVIOUR

In orderto gain a completeunderstandingof the usageandeffectivenessof

competitionsit is neccssaryto investigatethe competitionsthemselves(Section5), the

sponsorswho usethem(Section6) andtheir targetaudience.Investigatingconsumer

responseto salespromotionswill be the next stageof this research.A proposed

methodologyfor this is detailedin Section4. Consumerbehaviourtoward

competitionswasdiscussedin severalof the publications(# 1,2,4-8,11)resultingin the

developmentof certaintheoreticalmodels.

In thesepublicationsit is suggested
that we canintuitively divide up consumersinto

thrcctYPcSof "Competitiveconsumcr"segmentsaccordingto their attitudeto

Competitions:

I. Non-Compelitors who would consider competitions a waste of time, stamps

-

or tclcphoneunits;
2. PassiveCompetitors- who would entercompetitionsbut would not change

thcir normalpurchasingbehaviourjustto entcra compctition;

3. Active Competitors- who would changetheir purchasebehaviour(suchas

timing or brandchoiceor retail outict) to enteran attractivecompetition.

Consumersarc not rigidly definedby theseclassifications,insteadtheyindicatea

tendcncythat a pcrsonhas,or a position in rclationto a spccific compctition.A

57
 confirmednon-competitormight, for example,breaka lifetime's habit to entera

competitionoffering the holiday of their dreamsas a prize. Crossreferencingthe

againsttheir brandinvolvement,producesa pictureof the

consumeescompetitivcness

opportunitieswhich usinga salespromotioncompetitionpresents(Figure7.1) The

implicationof this model is that therearetwo key groupsthat a competitioncanbe

targetedat. New customerscanbe developedfrom amongthe potentialusersandsome

poachedfrom competitors,and (providingthat somearc retained)this will provide

longterm benefitsof an increasedcustomerbaseand an expandedmarket.Although

this mayseemfar removedfrom the socialmarketingcontext,this could be considered

analogousto convertinga smoker(competitor-loyal)to a non-smoker(loyal).

Theempiricalanalysisdemonstrated
that competitionscan inducebrand-switching,

rc-timing, increasedvolumepurchasing,product-typcsubstitutionsand
Purchase

channelsubstitutionsparticularlywithin the FMCG sectorbut evenwithin services.

For example,the travel andtourismanalysis(#6) showedcompetitionsbeingusedto

short stayvisitors to prolongtheir stayto weekendsin businessorientated

encourage

citiessuchas BrusselsandMilan. The BarclaysConnectioncompetition(0), by

requiringthe useof a Connectcard for entry,wasencouragingproduct-typc

substitution.

58
 (71

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It would be tempting to conclude that competitions could therefore be used for

example, to persuadeconsumers to use nicotine-frcc products instead of cigarettes

(Product-substitution), buy more condoms (increased volume purchasing) or attend

approved clinics for family planning advice (channel selection). HowcverasKotIcr

and Andreascn (199 1) explain, three major dimensions determine the difficulty of

successfullychanging social behaviour. Whether the behaviour is:

a) low involvcmentor high involvcment

one-timcor continuing

C) by individualsor groups

Otherthingsbeingequal,it is harderto changebehaviourthat is high involvement

groupdccisionsandcontinuing.

Figure 7.2 Taxonomy of Social Behaviour Change Prop-mms

-A

71,TIMF LOW INVOLVENI ENT HIGH INVOLVEMENT

INDIVIDUAL

GROUP

CONTINUING LOW INVOLVEMENT IIIGII INVOLVEMENT

INDIVIDUAL

GROUP **3lost dja7cult

to change"

Source:AdaptedfromKotler andAndreasen(1991)

60
Andrcascn(1995) suggeststhat the first featureto understandabouthigh involvement

behaviouris that consumerstypically do not undertaketheminstantaneously

but

mtherwork their way up to themoften going throughclearlydefinedstages.A useful

modelillustrating thesestagesfor socialmarketingis Andreasens'modificd version

of the original TranstheorcticalModel developedby Prochaskaand Di-Clemcnte

(1983).

Figure 7.3 The Soci,11Marketing fichavioural Stage Change Model

-

STAGE MARKETING TASK

Precontcrnplation & Interest
CreateAwareness
ChangeValues
Contemplation Persuade
Motivate
Aa-ion CreateAction

Nlaintcnane Maintain change

Source:Andreasen(1995)

This bchaviouralstagechangemodelin socialmarketingis not unlike the classic

AIDA model(Strong 1925)usedin commercialmarketing.This original Response

I licrarchymodelhassincebeenextended in
asshov%m thetablebelow:

61
 Ficure 7.4 Response Hierarchy Models

Strong Colley Lavidge & McGuire- Engel et al. Brown

(1925) (1961) Steiner (1969) (1986) (1993)
(1961)
Presentation Exposure Awareness
Attention Awareness Awareness Attention Attention
Comprehension Knowledge Comprehension Comprehension Comprehension

Interest Liking Attitude

Desire Preference Yielding Yielding Intention

Conviction Conviction Retention Retention
Action Action Behaviour Action Purchase

Repeat
purchase
-j

Tbescmodelsareall basedon the propositionthat audiencesrespondto messages

in a

vcry ordcredway - cognitively,affectivelyandthcn conativcly(i. c. TIIINK-FEEL-

DO). Most criticismsof thesemodelsarc basedon the issuethat consumersdo not

necessarilyfollow a sequencein all situations.Nevertheless,thesemodelsdo provide

a frameworkfor discussingconsumerrcsponseto marketingcommunications.

In termsof persuasion,salespromotiondirect responseorientationhastraditionally

fcwuscdattentionon the 'action' phaseof the ATDA model.I lowcvcr, in The

AlarkelingBookchapter(# 1) it is arguedthat competitionscan be found to be useful

during all phasesof the original AIDA model.

Attention- specialpackaging,posmaterialandwords like WIN canall assistin

gainingthe consumersattention.

Interest competitionscaninject novelty andevenfun into the most familiar or

-

mundaneproductor service.

62
 Desire- can be createdby the offer of additionalbenefitsin the form of a prize.

Action - competitionsdiffer from advertisingin seekinga direct responsewithin

a certaintime period.

Competitionsarealso beingusedto rewardloyal customers(and thereforeencourage

behaviour)by addingvalueandadding'spice' to existingrelationships.

maintenance

In financialservicesit is not uncommonto rind competitionsopenonly to existing

accountholdersonly. Recently,Halifax ran a competitionfor existing Visa Charity

cardholdersoffering cashprizesto thoseusingtheir cardsat leastsix times in a2

month period.In socialmarketing,maintenancebehaviourcan be encouragedby

reinforcingdesiredbehaviour.Behaviourmodificationtheorypoints to the fact that

otherthingsbeingequal,peopletendto repeatbehavioursthey find rewarding.As

Gracff, Elderand Booth (1993)highlight, a greatmanysocialmarketingbehaviours

arcnot intrinsicallyrewarding.Whena child is immunised,the motherdoesnot

immcdiatelyfeel goodaboutit especiallyif the child is distressedandthe wait long

andboring.Socialmarketerscancounteractthis by employingextrinsic rc%vards

wheneverpossible.Thus,for example,to increaserecycling,competitionscan be held

amongparticipatinghouseholdsfor ticketsto sportingevcnts.The bencritofferedto a

targetadopterin the form of a competitioncanalsohelp to overcomecognitive

dissonancefollowing morehigh involvementdecisions.

Evidencefrom the commercial indicatesthat can inducean

sector compaitions

alterationin behaviourevenif it is only to the next stageof change(e.g. from Pre-

63
 contemplationto Contemplation).This can be invaluableif we agreewith Andrcasen

that the goal of socialmarketingis to moveconsumersto the next step,not necessarily

to the end process.

Relationship marketine and competitiOns

Marketinghasevolvedfrom a focuson the singletransactionto becomeincreasingly

concernedwith the developmentandmaintenanccof mutually satisfyinglong-term

relationshipswith customers.Gronroos(1991) arguesthat alI markctingstrategieslie

on a continuumrangingfrom transactionalto relationshipmarketing,where

relationshipmarketingcan bejudged in termsof measuresof customerretention

ratherthan marketshare.

Transaction marketing versus relationship marketing:

Transaction marketing Relationship marketing

Shortterm orientationon Olesaleasthe Long term orientation.The saleis only
endresult the beginning
'Me' orientated 'Wcorientatcd
Focuson achievinga specificsale Focuson retentionand repeatsales
Emphasison persuasionto buy Stresson creatingpositiverelationships
Needto win, manipulation Providingtrust and service
Stressor conflict of achievinga Partnershipandcoopcrationto minimise
transaction defectionandprovide long term
relationships(with customersor strategic
alliances,joint ventures,vendor
partncringetc)
Anonymouscustomerwon by conquestin Individual prorile of customerknown so
a carefullyplannedevent that a continuingprocesscanemerge

64
Gilbert (1996)proposedthat the long tenn retentionof customersrequiresthe

following five incrementalsteps Improve,Inform, Temptand Retain.

-1dentj&,
Figure7.5 showshow competitionscanbe usedto help achievethis.

65
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LD
 In commercialmarketingthe rationalefor relationshipmarketingis that it makes

businesssenseto focuson long term financial bcnefits which can accrueoncea

customerhasbeenwon for the first time. This is becauseis hasbeenestimatedthat it

is rive to ten timesmore expensiveto recruit a new customerthan to retainan existing

one(Rosenberget al., 1984).The MarketingBook chapter(Paper# 1) proposesthat

oneof the key differencesbetweenadvertisingand salespromotionis its relationship

buildingcapabilities.On-line salespromotionsoffer an additionalmediumby which

to developrelationshipmarketing(seePaper#11). Customerprorilcs canbe built up

by interactionand fecdbackfromconsumersandappropriateandattractiveoffers

madein returnto consumers.

In socialmarketingrelationshipmarketingcanbe usedasa methodof encouraging

behaviour.For example,WalesQuit & Win 2001competitionoffered

maintenance

weekly,monthlyanda final Grandprize draw for all entrantswho maintainedtheir

smokingcessationover a3 monthperiod.More than3,200peoplefrom acrossWales

entcrcd.Therewasalso a prize for the 'Best Buddy' for thosesupportingthe

Participantanda prize draw for grecruiters',acknowledgingthe importanccof

intcrmediariesin socialmarketingcampaigns.

The Nfarpinal Consumer

77icMarketingBook chapter(# 1) introducesthe conceptof the marginalconsumer

(Fig= 7.6) which is of spccialrclevanceto socialmarkcting.In commcrcial

marketing,oncethe productis spcciried,part of the total availablemarket-Aill be lost

67
because
the productfeatures(suchasthe colour, size,flavour or facilities) are

unsuitablefor somepotentialcustomers.In socialmarketing,additionaltarget

adoptersmay be ruled out becausetheyhavea negativedispositiontowardthe social

product(e.g. weight lossprogram).Furthercustomerswill be screenedout who desire

but cannotquite afford the product.In socialmarketing,non-monctarycosts(e.g.

time,fear,embarrassment)
andthe fact that benefitsmay be invisible, delayedor

accrueto 3d partieswill deterfurtherof the remainingtargetadopters.Otherswill

rind thechannelsof distribution inconvenientand in the caseof socialmarketing,

scvcrelyrestricted.The specificationof the marketingmix thereforecreatesa

customergroupfor whom the basicproductoffer is not ideal.Thesemarginal

consumersareevenmore numerousin socialmarketingandrepresenta prime targct

for promotionswhich, by offering additionalbcncrits,mayovercometheir reservation

to act.

68
 a. %
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 This is especiallytrue if we agreewith the opinion of Burnett&Moriarty (1998)

'thatthe mostimportantstrengthofsalespromotion is Its ability to stimulatepeople

to act ,

Eachmarginalconsumerwon over deprivesthe competitorof a customer.In

commercialmarketing,the competitionis otherbrandsor other productsor services.

Accordingto Andrcasen(1995) in socialmarketingthe competitormay be:

Inertiaor pasthabits

Alternativebehaviours(e.g. alternativeuseof time)

Competitiveorganisations(i.e. otherorganisationsoffering the sameservice)

Commercialmarket(e.g. the tobaccoindustryin the caseof smokers)

In additionit could be saidthat particularlywhcndealingwith hcalth issues,

procrastination is a commoncompetitorfor thetargetaudience.For example,those

who defer smokingtheir last cigarette,visiting a screeningclinic or buying a sun hat.

Salespromotionpromptspeopleto act andbecausecompetitionsalwayshavean cntry

dcadlinc,it encourages to
people act soonerratherthan later.

Althougha competitionis unlikely to persuadea hardenedsmokeror drug userto quit

their habit overnight,it may be sufficient stimulusto persuadetargetadoptersto move

to the next stageon the roadto long tcrm bchavioumlchange-

70
 SFCTION 8
.

IMPLICATIONS FOR SOCIAL MARKETING

In thesameway that the perceptionof salespromotiontcchniqucshasbeenlimitcd by

on value-incrcasingpromotionsand by closeassociationwith a
theover-emphasis

narrowrangeof industries,manyauthors(Andrcascn1994;Rothschild 1979,Kotler

&'
, Zaltman1971)have that
suggested social marketinghasbccn rcstrictcdby the

dominanceof socialadvertising.Steadand Hastings(1997)highlight this by

suggesting:

6social marketingcontinuesto be equaledby manypractitioners and evenby

someacademicswith social advertising.Overstatingadvertising'sImportance

In social marketingthreatensthe disciplinein severalways:non-promotional

social
elementsofthe social marketingmLrare neglectc(4 marketingIs

restrictedin practice, distractingargumentsare generaleg social marketing

Is blamedfor advertising'slimitations and Is subjectto ethical misgivings.

While fully supportingthis view, we could extendthe descriptionof thefirst threatto

Statethat not only non-promotionalelementsbut all otherpromotional elementsarc

by the dominanceof socialadvertising.

overshadowed

Publication Quarterly)includesa tableillustratingthe

#10(SocialMarketing

application
of salespromotiontechniques using
to socialmarketingprogrammes flic

distinctionof valuc-incrcasing (Figure

promotions
andvaluc-adding 8.1).

71
 FIGURE 8.1

6PPLICATION OF SALES PROMOTIONS TECHNIQUES FOR DIFFERENT

SOCIAL MARKETING PROGRANINIFS

SALES PROMOTION TYPE INTANGIBLE NON AIONE.TAR

11110DUCT COST
(i. e. service) (e.g. time, fear)
(vAtha monctary (but a tangiblc
cost) product)
VALUE INCREASING (alters price/quantity or price/quality equation)

Discountpricing X
Moncy-offcoupons X
Paymentterms(c.g. interestfreecredit) X
Refunds X
Guarantecs X
Multipackor multi-buys X
Quantityincrcascs X
Buybacks X X

VALUE ADDING (offers "something extra" whilst leaving core product

and price unchanged)

Samples X
Specialfcaturcs(limited editions) X
Valucdpackaging X
1'roducttrial X
In-packpremiums X
In-mailprcmiums
Piggybackpremiums
Gift coupons
Info (e.g. brochurc,catalogue)
Clubsor loyalty programmes
Lcompetitions

7bc wlicle goeson to concludethat wherethe socialproductbeingpromotedis

intangiblewith a non-monctarycost,the mosteffectivesalespromotiontools are

72
 Premiums,gift coupons,information,loyalty programmesor competitions.flowcvcr,

thereareparticularcharacteristicsof competitionsthat makethemespeciallywell

suitedto this categoryof socialproduct.This includesproviding greatercost-

effectiveness
andcostcertaintythangivc-aways.

TheMarketingBook chapter(#1) highlightedthe ideathat salespromotionis not so

mucha distinct elementof the marketingmix, but rathera customisationof odicr

elements.In the sameway competitionscanbe seento contributeto the 5P's (Product,

Price,Place,Promotionand Partnerships)of the socialmarketingmix (Figure 8.2).

Publication#10 providesseveralexamplesof how this can be done.Competitions

alsooffer the opportunityto gatherinformationaboutthe targetaudienceor build up a

usefulmailing list. Entry form returnscanbe usedfor evaluatingthe rcachof die

socialprogrammein termsof numbersandcharacteristicsof the targetadopter.

Weinrcich (1999) proposes that the social marketing product is not ncccssarily a

physical product but rather a continuum ranging from a tangible physical product (e.g.

condoms) to services (e.g. screening) to practices (e.g. breast feeding, sunsafcty). The

breakdown of the large empirical in

study of the use of competitions the comrncrcial

sector included both service sectors(#4,#S,#6) and FMCG sectors (#7,#8). Table 8.3

Summariscsthe unique lessons for social marketing provided by this separate

commercial sector analysis.

73
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Thisis especially
helpfulto understand
howcompetitions
canbeusedto overcome
someof thebarrierspeculiarto socialmarketing(Figure8.4)whichhavebeen
discussed
by severalauthors(Bloom&,Novelli 1981;Kotler&,Zaltman1971;Kotler

&,Andrcascn
1991)andsummarised
byAndreasen
(1995).

76
Fii! ure 8.4 - The special nature of social marketing-

Socialmarketingdifficulties How competitionscanhelp

Negativedemande.g. donatingblood, Adds benefits

immunisation,wearingseatbelts.

I lighly sensitiveissuese.g. healthy Candctract/softcnissuee.g. competition

sexuality,cancerscreening in TViland to inflate biggestcondom

Invisiblebcncfitsi.e. absenceof outcome Adds visible benefits

is signof successin sunsafety,
immunisation.family planningcte.
Benefitsto Pr-partye.g. energy Adds pcrsonalbenefits
conservation

Intangiblesdifficult to portraye.g. Providestangibility e.g. through

services,invisible benefits compctitionpostersand leaflets

Longtermbcnefitsratherthan-shortterm Adds shortterm bcnefits

benefitse.g. recycling,sunsafcty

Limitedbudgets usuallyfor social for costcertainty

Betterthangive-a%%-ays
-
marketingprogrammeasa whole but andcosteffectiveness
especiallyfor promotionalspcnd
__
Multiple publicse.g. media,funding Canattractinten-ncdiarics
and provide
organisations,staff & volunteers for
opportunities partnerships

Lackof marketdata Canprovidemeansof collecting

consumerinformation

Fc%%,
er opportunitiesto modify product Adds benefitswithout alteringcore
product/servicc

77
Anotherway of understandingthe potentialcontributionof competitionsto social

markctingis by analysingthe definition of socialmarketingproposedby MacFadycn

ct al (1999).

for a social changecampaignor programmeto be definedas social

marketingIt mustcontain thefollowing elements:a consumerorientation,an

exchangeand a long termplanning outlook'

ELEMENT OF SOCIAL LP
110IV C0,11PETITIONSCAN 11E-
MARKETING

ConsumerOrientation Competitionscan help with relationship

building and collectingmarketingdata

An exchange(to facilitate a voluntary Competitionsoffer the target adopter

socialmarketinghasto offer
exchange, benefitsthat are personal,Immediate
somethingthat the targetadopterwants) andlor tangible. This will be ofgrcater
appealto the target adopter- especially
wherethe benefitsofthe proposed
behaviouralchangeare lnta!yible,
delayedandlor accrueto a3 party

Longterm,planningoutlook Competitionscan be usedas a long term

strategic weaponas well as a short term
tactical tool

Getting Me most out of competitions

The MarketingBook chapter(# 1) identifies the major dangersassociatedwith poorly

managedsalespromotions.It also providesseveralexamplesof largeand

sophisticated
companiessuchas Esso,Coca-Cola
and PepsiCowith a long track

78
recordof successfulsalespromotionsbeing caughtout from ill. managedcompetitions

andsuggeststhat thesecanbe avoidedby:

e Payinggreaterattentionto the promotionalplanningprocess

9 Adheringto the ISP Codeof practicc

* Addressingthe type of commonsensequestionscontainedin the CONIPETE-

chccklist

Tnpublication#10 this chccklistwasadaptcdspccifically for socialniarkctcrs.The

checklistpromptsthe considerationof sevenkey areas:

I- Co-sponsors the competitionbe run only by the promoter

programme or run
-will
in partnershipwith anotherorganisationsuchasan intermediaryor a corporate

sponsor?Doesthe partnerhaveany prior experienceor cxpcrtisein running

competitions?Could they contributetowardthe costof runningthe competitionor

theprizes?Arc thereany cthical implications?

2. Objectives what are the marketingobjectivesor the competition?Arc these

-
compatiblewith the objectivesof the overall programme.What messagewill it

sendto the targetadopters?

JkchanIcs - how will the competitionbe designed,dclivcrcd, entcrcdandjudged?

I low canthe mechanicsof thecompetitionbestmeetits objectives?What form of

competitionwill most appealto our targetadopters?Could focusgroupsbe usedto

79
 investigatethis andotheraspectsof the design?What
could go wong logistically,

andhow could it bc prcvented?

4. Prizes- what numberandvalueof prizeswill be

required to makethe competition

attractive?Shouldtherebe a few prizesof a high valueor a largenumberof

relativelylow valueprizes?Canthe prizesbe chosento reinforcethe programme

objectives?Prizescanbe financial(e.g. cash,vouchers);material(e.g. hi-fis, CDs);

cxpcricntial(e.g. holidays,mcals)or rare- someprizesarc of valuebut cannotbe

commonlypurchasedby consumers(e.g. outingswith celebrities).Whatprizeswill

attracttargetadopters?Offer flexibility andvariety if possible.

5. Expenditure how much the budget

andtime of the Programme
- of marketing

organiscrsshouldthe competitionconsume?Will outsideexpertisebe nccdcd?

I low canthejudging be madeassimpleaspossible?

6. Timing shouldthe competitionbe usedto createawareness

of the programme,
-
providethe opportunityfor personalinteractionor usedto reinforcebehaviour?

Shouldthe gapbetweenlaunchandthe closingdatebe long to maximisethe effect

or shortto preventlossof targetadopterinterest?I low long shouldleafletsand

Postersbe displayedfor?

80
7. Evaluation - how long will the effectivenessof the competitionbe measuredin

termsof achievingits objectives?Who shouldbe responsiblefor evaluation,when

andusingwhatmeasures?

Byplanningcompetitions with this COMPETE

for socialmarketingprogrammes

checklistin mind, the potentialproblemsof poorly designedanddelivered

competitionsshouldbe avoided.

Ethical Imes

& Hastings(2001)describein detail the ethicalchallengesfacingsocial

NlacFadycn

markctcrs.Tbey suggestthat ethicalissuesarc often posedbecauseof the very nature

of socialmarketingwhich is frequently with

concerned dealingwith behaviours,
that

areillegal, tabooor culturally sensitiveaswell asthe conflicting interestsof tile social

marketer;the targetadopterandwidcr society.In addition,socialmarketerstendto

dealwith vulnerabic/hardto reachgroupsthat commercialmarketerswould tendto

ignore.

Theydescribethe key ethicalquestionsfacingsocialmarkctcrsasbeing:

What behaviourto address?

2. Which groupsto target?

I Whatproducts/serviccs
to offer in their exchange?

4. How to use the marketing mix to make this offering?

5. Will there be any unintended efTects?

81
 6. flow to conductrcscarchto infonn this proccss?

Whenusingcompetitionsin socialmarketingthe fourth andfifth issuesarc of

particularrelevance.Will useof a competitionsendthe right messageto the target

audience.Will therebe any conflict or oppositionfrom other stakeholdersor wider

society?Will the competitionhaveany unintendedcf1ects?Thesequestionsneedto

beaddressed
in termsof the competitionprocessitself (how a personqualifiesfor

entry)aswell asthe prizesoffered.Unforeseenrepercussions

typically arisethrough
inadequate
pre-tcstingof campaignsamongstthe targetgroupor otherstakeholders.

Extrinsicrewardshavebeenusedin manysocialmarketingprojects.Thesecanbe

tangible(awards,certificates,goodsor cash)or intangible(pmisefrom a health

worker,mediapublicity). For any given socialmarketingprograninics,theycan be a

Mated or unrelatedmaterialbonusor a relatedor unrelatedservice.

Althoughcompetitionsoffer the opportunityto provideadditionalbcncritsto the

targetaudience,it is thereforeimportantto be awareof the ethicalimplications.There

is a dangerthat an extrinsic bcncrit prompt bchavioural

change
rcwardor may

Primarilybecauseof the promisedreturn.This mayresult in behaviourchangethat is

(becauseit is not internaliscd).Andrcascn(1995)citesseveral

not Permanent

examplesof the useof rewardsthat werepotentiallydamagingto the socialmarketing

causeon ethicalgrounds.lie suggeststhat positiveextrinsicrewardsposelessof an

ethicalproblemin the following circumstances:

92
 Whentheyareusedto overcomeinertia to start someonetrying a new behaviour

that is likely to be satisfyingin itself oncebegun.

Whenthey arejust oneof manypositiveconsequences

the consumerseesfor trying

a behaviour.

Whenthey inducebehavioursthat arereversible.If a freeradio inducessomeoneto

usecondomsto preventunwantedpregnancies,this behaviourcanbe reversedif

thetargetaudiencefinds the outcomeunsatisfactory.Howcver,if the radio is given

for a vasectomy,this is unethicalmanipulationbecausethe behaviouris not

normallyreversible.

NfacFadyen
andHastings(2001)proposethat resolvingtheseethicalchallengeswill

requiretwo coursesof action.Firstly, obtainingguidancefrom establishedethical

theoriessuchasdcontologicaltheory,tcleologicaltheory,theoriesof rights,justice

andnaturallaw. Secondly,developingpractical proceduresto monitor andcontrol

ethicsin socialmarketing.This could includereferenceto the Codeof Practise

establishedby the Instituteof SalesPromotionaswell as the COMPETEchecklist

outlinedabove.In addition,a comprehensive

'social marketing' codeof conductcould

alsoprovideguidance.Whateverthe courseof action,regardfor theseethical issuesis

extremelyimportantif socialmarketingis not to be portrayedas trying to be

manipulative.

83
SE.MON 9

THE PRFSFNT AND FUTURE ITSE,OF COMPETITIONS-IN SOCIAL

MARKETING CAMPAIGNS

Publication#10 describessomeof the competitionsthat havebeenusedin social

marketingto date.The article suggeststhat the useof this marketingtool is still in die

embryonicstagebut thereis at leastonecompetitionthat hassincebeenextcndcdand

developedasa resultof its success.

The Smokefree-Class Competition

The SmokcfrccClassCompetitionis a Europeansmokingpreventionproject,which is

conductedin co-operationwith the ' EuropeanNetwork of YoungPeopleand

Tobacco'.The ideaof the SmokefrceClassCompetitionis different to traditional

Insteadof usingfear arousalstrategies,the desirednon-smoking

approaches.

behaviouris reinforced:non-smokersarerewardedif they remainsmokcfrec.Target

groupsareschoolpupils aged12-14years.

I'lic goalsarethe:

* Delayor prevention
of theonsetof smoking

e Reductionor cessationof cigarctteconsumptionof pupils who havealready

with smokingso that thcy don't bccomcrcgularsmokcrs.

CXpcflmcnted

84
 Theconceptof the SmokefrceClassCompetitionwas first developedin Finland

wherethecompetitionhasbeenorganisedannuallysince 1989.TIcre arc now II EC

memberstatesparticipating(Germany,Dcrimark,Finland,UK, France,Italy, Spain,

Greece,theNetherlands,Austria & Belgium).Classeshavethe opportunityto win

prizesin their nationalcompetitionandalso havethe opportunityto participatein a

Europeanprize draw. The main prize is a trip to anotherparticipatingcountry.

Discussionwith the projectorganiscrsat a recentconfcrcnccindicatedthat the main

Purposeof the competitionwasto act asan Integratingmechanismfor the whole

Promotionalcampaign.This is oneof the marketingopportunitiesprovidedby

competitionsthat is alsopopularwith sponsorsin the commercialsectorasdiscovcrcd

in die empiricalsurveydiscussedin publication#9.1lowcvcr, the final reportfrom the

1997/98roundof the competition(Savolainen1998)highlightsother benefitsthat

haveaccruedfrom usingthis form of communication.Thcflexibility of competitions

hasallowedeachparticipatingcountryto developtheir own rules,prize structureand

The prize itself hasacted

materialsto reflect their particularneedsand circumstances.

to softcnthe healthmessagebeingadvocated.

'Theprize deliverywasan extremelywarm andfriendly eventand we all had

a lot offum Perhapswe are usedto dealingwith health topics in a rcry

seriouswaY. so the eventwasa quite refreshingnowapproach(Spaln)'

Post-evaluation
of the competitionby eachparticipatingcountry hasproducedsome

veryenco=ging findings. In Wales,for cx=plc, resultsindicatethat 83% of

teachersthoughtthat the competitioncnco=gcd discussionaboutsmokingand

85
 a teamspirit to avoid it. The resultsof a surveyof participatingpupils
engendered

suggestthat 55% that that the competitionhadhelpedthemto staysmokefreewith

76%bclicvingthatthecompetition
wasa goodidea.

The SmokcfrceClassCompetitionis now going from strcngthto strcngthwith the

Internetalsobeingusedto promoteandenhancecommunicationbctwcenpupils in

differentcountries.

low on-line competitions could be used In Social Marketina campaian-i

Paper#I I looks at usingthe Internetto communicatethe sun-safetymessageto

tccnagcrs.A conceptualmodelwasdeveloped,basedon the literature,for designing

effectivewcbsitcsfor teenagers.
This wasthentestedusingempiricalresearchwhich

includedtwenty in-depthinterviewswith UK teenagers,

exploringtheir experiencesof

theInternetand their opinionsof its potentialasa channelfor promotingsun-safety.

The 4C's conceptual model

A presenceon the Internet does not guarantcesuccess.Expcriencc from commerce

suggeststhat simply transferring existing published material onto diis very different

medium will result in failure. Chen and Wells (1999) note that in 1998, approximately

1.5 million new web pagesappeareddaily, but their cffcctivcncss was difficult to

judge, given die lack for assessingissues like

of widely acceptedresearchconventions

wcbsite cffectivcncss. They developed a measureanalogous to 'Attitude toward the

Advertisement' where consumersjudge websitcs according their levels of

'Entertainment"# "Informativeness" and "Organisation".

86
 A fourth factor in effectiveInternetcommunicationis intcractivity. Davis(1997)

that evenpure informationsitessuchascybcrbrochurescan maketheir site

suggests

'visitors'probesmore fruitful andenjoyableby providing positive interaction

Novak and 11offman(1997)found that the more interactivethe site the

mechanisms.

longervisitors browse.Deighton(1996)interpreted"intcractivity" asencompassing

two dimensionsof communication;the ability to addressan individual andthe ability

to gatherandrememberthe responseof the individual. Thosefeaturesalsomakea

third possible;the ability to addressthat individual in a way that takesinto account

their uniqueresponses.

GhoseandDou (1998)arguethat a primaryperceivedadvantageof wcb-bascd

communicationsis the ability to setup complicatedweb sitesto caterto a wide

audienceyet still retainthe sensitivityto be ableto respondto individuals'

informationneedsthrough suchas key word searches.

mechanisms
McWilliams and Deighton(2000)identifiedthreecrucial C's whenevaluatingonline

retailingof "Community,ContentandCommerce".

It is thereforeproposedthat whendevelopingandevaluatingweb sitesin a way that is

this frarncworkcan be
particularlyrelevantto communicatingwith teenagers,

expandedto include four T' factorsasfollows:

Community: the useof featuressuchasmessageboards,clubs andchatrooms.

Content: the extentof relevant,up to dateinformationanddiversity of content

Commerce: the rangeofmcrchandiseavailablethroughthe site itscifor links.

87
Connectivity: the useof interactivefunctionssuchaspolls, quizzes,competitions,

fccdbackandpersonalisede-mail alerts.

Table9.1liststhetop 10youthwebsites (in termsof

accordingto Nielscn/Netratings
beingmostspecificallyfocusedonanaudience
of teenagers
andyoungeradults).
Table9.2demonstrates
howthetopthreesitesaddress in termsof the
theiraudience
four'C' factors.TheseareBolt, theself-styled'ultimateon-linecommunIVandone

of theInternet's'mostpopularhangoutsforhighschoolandcollegestudents';Nsync,

thesiteforthe popular'boy band';andGamesFAQ,a computergamesrelatedsite.

88
Table 9.1 Top 10 Youth Web Sites(USA)

(Sitcswith highestpercentageaudienceages12-24in August 1999)

RANK SITE UNIQUE % AGE TYPE OF SITE

AUDIENCE 12-24
1 Bolt.com 305,813 69.7 -
Magalog(& commcrcý)
2_ com 253,153 65.0 Music Fanclub
3 -Nsync.
Gamcfaqs. 271,071 63.4 Computcrgamcs
com
4 mtv.com 1,146,570 62.8 Music
5 Winamp.com 242,167 58.9 Music
6_ Peeps.com 268,554 55.0 Music
7 Wwf.com 1 696,316 55.0 Wrcstling
8 Members.spree.com 281,314 52.4 No longcractivc
9 Backstrcctboys. _ 242,026 51.9 _ Music Fanclub
com
10 wcw. com 288,446 51.6 Wrcstling

Sourcc:Niclscn/NctRatings,2000

Table 9.2- Key Characteristics of The Three Top Youth %VCbSlIcs

BOLT NYSNC GAMESFAQ

Celebrity News,tour dates, What's nc%v,
CONTENT interviews;fashion, bandbiographies features
entertainment;
horoscopes
Messageboards; Fanclub; Charity Messageboards
COMMUNITY Clubs; find a friend events& causes
or honey;join a that the guysreally
surveypanel careabout
Extensive Music, apparel, Links to shopping
COMMERCE commercesite accessories, sites
exclusivcs
Polls, quizzes, e-mail updates; Requests,help,
CONNECTIVITY competitions,free Ntouch-journal search;extensive
gifts, feedback, from the road; links to companion
personaliscde- contests,quizzes sites
mails, c-cards,
designown Bolt
I homepagc

89
 Applying the 4 C's model to sun-safctyon-line.

Findingsfrom the teenagein-depthinterviewsindicatedthat the 4C's wereindeed

importantfactorsfor websitedesign(seePaper#11). For wcbsitcstrying to get the

acrossto teenagersaboutsun-safety(andotherhealtheducationissues),the
message

'four Cs' providesa frameworkaroundwhich sitcscan be plannedandanalysed:

Community

A senseof communitycould be generatedthoughthe useof chat rooms,discussions,

linking schoolstogetherfor projects,andthe sharingof personalexperiencesor those

of cclebritics.A senseof belongingcould also be generatedby functionalfreegifts

suchassunscreen,
or sun sensitiveitems(e.g. badges).

Content

Teenagesites need
content on a continual basis to maintain interest lcvc1s,which

provides an opportunity for health educatorsas contcnt providers. The approach taken

may needto addressthe issuesof vanity as well as health, especially for teenagegirls,

to dc-markct tans by stressing the issue of appearanceand skin aging (Vail-Smith and

rclts 1993). Content can

also improve teenagers' understanding of issuessuch as their

risk profile, the proper application of sunscreen,the risks of sunbcds, and information

tools such as the 'UV Index'. Other important topics that could be covcrcd include

Preparationsfor holidays, correcting misconceptions, and a picture gallery sho%%ing

what to look for with moles or the effects of skin cancer.

90
Commerce

Althoughthereis a dangerthat too muchovert commercialismcould underminea

sun-safctyinitiative, therecould be opportunitiesfor the on-line marketingof hats,

Appropriate
cosmeticswith sunscreen,fake tans,clothing,andsunglasses.
sunscreen,

salespromotionssuchasdiscountsandsamples, could alsobe usedto enhancethe

commercialaspects.

Connectirityand hiteractivity

Connectionsand interactioncould be encouragedin manyways.Promotionscould be

used,for exarnplea competitionto designa sun-saf:hat (asBolt hasdonewith a

designa T-shirt & baseballhat contcst), or quizzesandpolls on sun safetyissues.E-

be
mailscouldalso generatedprovidinga personalalert to thoseat risk on high UV

days,possiblysponsoredby a sunscreen Connectivity

manufacturer. could also be

by
created theability to forward articlesto friends,the feedback
of informationfrom

aboutsun-safcty,andlinks to healthweb sitcs.

teenagers

Casestudy- Freevibe.com

The potentialto usethe Intemct cffcctivcly to tacklehealthcducationtargctcdat

teenagers
canbe demonstratedby the following example.

Frccvibc.com is a web site specificallyaimedat teenagerswhich is part of an anti-

drugsocialmarketingcampaignfundedby the White I [Ouse0 fr1ccof NationalDrug

ControlPolicy.It takesan honestandthoroughapproachto the subjectof drugsand

relatedissuessuchaspccr pressure,to helpyoungpeopleunderstandthe dangersof

substance decisions
abuseandmakeresponsible in their lives. Thc site features

91
moderatedbulletin boards,e-cardsthat can be sentto friends,polls, games,

competitionsand itemson pop culture.It also incorporatesvariedcontentwith

relevantlinks, newsitemsandpersonalexperiences.As well asallowing general

feedbackwith commentsand questions,teenagershavethe opportunityto volunteeras

a siteadvisor.

Visitorsto this site and its companionaimedat parents,Antidrug.com, havecxcccdcd

3 million in just a year.The amountof time spcnton the tccnagcrswcb site has

averaged
a relatively high 10 minutespcr visit. Qualitative can
success be measured

by thelevel of quality participationin bulletin boardswith submissionsaveraging

2000per day andweekly polls averaging300 votespcr week.It also rcccivcsan

averageof 300 requestsfor informationper weekthroughthe 'ContactUs' functionof

thesite.Thesekind of resultsarc leadingto a redesignof thc parentorientatedWeb

siteto makeit more interactive.

As we canseefrom the above,both competitionsandother salespromotions

techniquescanbe very usefulwhendesigningcfTcctivcwcbsitcsfor socialmarketing

campaigns.

92
SE(TION 10

CONCLUSTONS AND FUTURE RESEARCH

The value of the material brought together by this thesis can be demonstratedby the

recognition that it has received from various sources. Publication #1 appearsin 'The

Marketing Book'which. is the key source book for the Chartered Institute of

Marketing, with contributions by rccogniscd leaders in the marketing field. All the

other publications have been printed in pccr reviewed acadcmicjournals. In addition,

two of the articles have been reprinted in edited collcctions, while two further articles

have been awarded 'Best Paper' prizes (see Appendix I).

Tbepurposeof any researchandparticularlydoctoralresearch,is to makea new and

worLhwhilccontributionto knowledgc.The work that is cncompassed

within this

thesisincludes:

a) a theoreticalredefinitionof salespromotionwhich is oneof the major components

of marketingcommunications.

b) a largescalequantitativeanalysis.

c) a smallerscalequantitativeanalysiswhich testedsomeof the propositions

postulatedin the thcorcticalrcdcrinitionandsomeof the conclusionsof die large

scalestudy.

93
d) theapplicationof theseflindingsto an area,social
marketing,which represents

virtually uncxplorcdterritory for salespromotion.

An empiricalstudythat includedan explorationof the potentialof on-line sales

promotionsto assistsocialmarketingcampaigns.

It is for thesereasonsthat this PhD by Publication

can be consideredof cquivalcnt

valueto a traditionalPhD thesis.

Spccifically, this Rcflcctive Overview together vrith die elcvcn publications in the

Portfolio has led to a number of conclusions:

L In 'The MarketingBook' chapter(publication#1) the original conceptof value-

Increasingandvalue-addingpromotionsis introducedand componentsof the

salespromotiontoolkit rcclassiriedusingthesedefinitions.T11isnew way of

lookingat salespromotioncanhelp us understandthe traditionalprejudicesheld

againstthis form of marketingcommunication(Jones1990)andprovidea fresh

appreciationof the potentialof cachtool. This classificationrevealsthat, far from

beingirrclcv=t to socialmarketing,salespromotionis madeup of tools, someof

which havelittle relevanceto socialmarketingand someof which havegreat

potential.This is illustratedin Figure8.1 on page72 and discusscdin dctail in

publication#10.

94
 2. The large scale empirical survey of over 2 V2 thousand
competitions conducted

over a3 year period (worth in excessof L47m), demonstratesthat competitions arc

now used widely in the commercial sector. Section 5 on page 43 summarises

eighteen tactical and strategic marketing objectives for which competitions arc

being used. The survey also revealed that in some sub-sectors up to 54% of

competitions required no purchase.These results prove that the view of sales

promotion as a 'short term tactical tool usedprintarily to boost the sales of

struggling FMCG hrands'is clearly out of date. The second smaller survey of

competition sponsors that was conducted (Section 6 page 55) also supports this

contention that competitions representa flexible marketing communications tool

used by commercial managersto pursue a variety of strategic and tactical

objectives.

I Tbe in-depthanalysisof how competitionsarc beingusedand the problemsthat

havebeencncountercdin the commercialsector,cnabledthe developmentof the

COMPETEchecklistproviding practicalguidelinesfor thoseresponsiblefor

planningcompetitions.T'hischecklistwasalsoadaptedfor socialmarketing

managers(page79). The total surveywasbrokcndoAmto providea separate

detailedanalysisfor severaldifferent commercialsectors(publication# 4-8). Each

of theseoffereduniqueinsightsto revealthe potentialof competitionsfor social

markcting.Theseresultsaresummariscdin Figure8.3 on page75.

4. Competitions(and
salespromotiongenerally)havedistinct advantages
over

advertisingasa communicationtool in termsof their communicationcapabilities,

relationship building capabilities,flexibility andmanagement

(describedin detail

95
 in Section5 page48-54).This is particularlyimportantgiven the evidenceof the

dccrcasingeffectivenessof massmcdia.advertisingin the commercialscctor

discussedon page14 andthe criticism of the dominanceof socialadvertisingin

socialmarketingprograrnmes.(Stcadand Hastings1997,Andrcascn1994,

Rothschild1979,Kotlcr andZaltman 1971).

5. Usingthe findings from the commercialsector,this thesishasshownthat far from

beingunsuitablefor socialmarketingprogrammes,competitionshavedie potential

to help in severalareas.Competitionscan help with all stagesof bchaviouml

changeasdefinedby Andrcascn(1995)from the Prc-contcmplationstageto the

Maintenancestage(Figure7.3 page61). They = enhancethe fivc Social

MarketingMix components(Figure8.2 page74) and theyhavethe potentialto

helpwith the particularproblemsuniqueto socialmarketingsuchasa negative

demandfor the socialproduct;long term, third party or invisible bcncrits;

restrictedbudgetsandmarketdata( Figure8.4 page77).

6. Paper#I I has also sho%mthat salespromotions have the potential to be used in a

new medium, the Internet. For social marketing progranuncs, they can help

provide content, promote intcractivity and develop relationships with the target

audience.

ror socialmarketingprogrammesto be succcssrul,all aspectsof the socialmarketing

mix includingProduct,Price,Place,PartncrshipsandPromotion,necdto be

coasidcrcd.In somecases,initial ncedsanalysismay indicatethat equalor grcatcr

96
attentionneedsto be paid to the otherP's ratherthan promotion.I Iowcvcr,if the

analysisindicatesthat promotionij an cssentialcomponentof the marketingstrategy,

thenit is importantthat both aboveand below the line promotionaltechniquesarc

considered.

TheJournal ofAfarketing Managementarticlc publishcdin 1993(publication#2) in

discussingcommercialmarketing,highlighted:

'thenecessityofdevelopinga separatebodyfor eachspecificsalespromotion

technique'

Tbe time hascomefor this approachto be adoptedin the field of socialmarketing.In

orderto evaluatethe potcntialof eachof the salcspromotiontools for social

marketingit is necessaryto undcrtakcan in-depththeoreticalandempiricalanalysis.

71is thesishascontributedto this processin the areaof compaitions. I lowcvcr, more

systematiccmpirical rcscarchis still ncedcdto discoverthe mostcffectivc useof

competitionsin termsof.

0 types of social marketing programmes

9 Largaadopters

0 staseof change

A goodexampleof sucha casestudyis describedin an article by Alden andTictic

(1998).The authorstestedseveraltheoriesregardingthe relativeeffectivenessof

alternativetypesand designsof salespromotionsfor condoms.The targetaudiencein

97
this case,was young males, of lower socio-cconomic status, in the 'maintcnancC

stage' of condom use, residing in Bangkok, Ilailand.

It is only by expandingon this typeof researchthat wc canensurethat the field of

socialmarketingwill continueto grow andbecomemorecffectivc in bringingabout

bchaviouralchange.

In thepast,salespromotionhasbeenthe 'Cinderella' of the promotionalmix,

by advertising.Giventhe restrictedview of mainstreammarketing

overshadowed

academicstowardssalespromotionit is not surprisingthat this tool hasbeen

overlookedandconsideredinappropriateby socialmarketingacadcmicsand

practitioners.While the few socialmarketingtextbooksthat now exist, have'A=cd

againstthe misuseandoveruseof socialadvertising,they havebeenlimited in their

Advocacyof the otherpromotionaltools available.This biastowardsmassmedia

advertisingin both commercialandsocialmarketinghasactedto keepsales

promotionandsocialmarketingapart.I lowcvcr, asthis thesishasdemonstrated,

sales

promotionin generalandcompetitionsin particularcanprovide an alternativeyet cost

cffectivemeansof communicatingwith the targetaudiencein socialmarketing

programmes.

98
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 I'll
bi ication #I

ISalesPromotion'

Chapter IS in M. Baker (ed),

The Marketing Book, 4th edition.

Buttenvorth-Heinnein ann.

May 1999 pp 418-442

 Sales promotion
SUE and KEN PEATTIE

Introduction Salespromotion defined

Salespromotion is frequently defined as mar-
In 1697Jonathon Holder, a London haber- keting is
cornmunications which not advertis-
dasher,decided to offer customers spending
ing, selling or public relations(seeChapter12).
over a guineain his shop a free stockand price Unfortunately, many definitions explaining
list. His pioneering decision to
offer his cus- what this includes are flawed, by failing to
tomers'SometIdngextra' was not universally
embraceall of the marketing tools regardedas
welcomed.The newspapersof the day con- salespromotionsinpractice.Wecandefinesales
demned this sales promotion as 'a dangerous
promotions asnurketing activitiesusuallyspe-
innovation'and one which, 'wouldbedestructive
cific to a time period, placeor customergroup,
10trade,ý shopkeepers lavishedso muchof their which encouragea direct responsefrom con-
mpifal on printing uselessbills'. Over three marketing intermediaries, through
hundred years later trade sumers or
still flourishes, and the offer of additional benefits.'
so do sales promotions, which now account The threekey elementsof this definition are
for more 'capital' than any element of mar-
keting communicationsexceptselling. Despite that sales promotions are:
salespromotions' growing importance, some- Non-standw-d. Promotionsare usuallytem-
thing of the scepticism that Mr Holder porary, and may be limited to certaincus-
lives In tomer groups (such as airline frequent flyer
itered on. the study and practice
of marketing, sales promotion has always schemes)or specificto a particulard1strIbu-
been overshadowedby the tion channel (as In'tallor-mads'promotions
more glamorous
world of advertising. This situation is now involvinga produceranda singleremiler).
changing,with sales promotion beginning to 2 Response orlentated. Promotionsseeka
8ttract the academic study and practitioner direct responsefrom customers,or those
Scrutinythat its cost and increasinglystrategic who dealwith customerson the producces
role surely demands. Between1965and 1983 behalf(seeFigure 18.1).The direct response
only about 40 academicstudies of sales pro- sought Is not necessarily a sale. Promotions
motion were published (Blattbergand Neslin, mayencourage consumers to send for a
1990),comparedto over 200 between brochure, visit a dealeror consumea sample.
published
the mid-1980s and mid-1990s (Chandon, The ultimate aim Isalwayssales.but this Is
1995). true of all marketingactivity.
TEXT BOUND INTO

THE SPINE
 419

efit orientated. Promotions offer their A tactical and short-term view of promotion,
ý-!* acd1lionalbenefits. beyond the 'star)d- since economic incentives are only effective
marketing mix. The enhanced mix could while they are on offer.
,de extra product. a reduced price or an A negative perception about the impact that
,d item. service or opportunity. promotions may have on brands and brand
positioning.
r everyday vocabulary of marketing pro-
tuh d inCom;isten'cies. For simplicitý- All of these negative perceptions of sales
the word 'promotion' will be used in promotion, and more, were encapsulated in
,
i -, fles promotion, rather Rrz,w-.carticle'l-he
's
I'I. ItIItI IT I I( It II )I I
I )(mble jeopardi., of Sales Promotion'. Ile con-
luded that ýompanies, faced %vith saturated
ha%e been misguidedly channelling
! ýionev away from above-the-line adverti,, ing
Alld 'fighting with furv for market sharel using
pTornotions (generally a high cost acti%ity) as
the main tactical weapon. '
!N of marketing activities. In the past, Such indictments, published in leading
Unding of promotions has been harn- journals, have helped to prejudice many man-
tendency to bundle all the difterent agenient academics and some practitioners
1her for stud%*and discussion (I'vattic against promotions. However it is worth
1993) Coupon,, and discount-, are remembering that many of the mo-, t outý; pokvn
OW'', (- most wideh' critic, ( Jones included) are former top advvrtis-
UsUd promotions, and
idence and practical e\perivnce frorn ing practitioners. It is also worth noting that
base promotions dominates the lit- the criticism, including that bv lone,., is
much of
N, '' has encouraged: based on in assumption that 'in rnos t circum-
-i-,
stances, promotion!. mean price reductions'.
"Od view of what promotions can achieve 'llie reality i.-, that,, ales rrornotion. s rived to be
-erly rauonal--economic view of their for what thev are diverse and ver-
understoixi -a
4ý*' '. On consumers.
satilt, marketing ttxilkit, in which many kit the tomls

TRADE PRODUCER
PRODUCEH
PROMOTIONS INTERNAL
PROMOTIONS
'PUSH,
ENCOURý
'ENCOURAGE'

JOINTr
ONS
PROMOTIONS SALES
DISTRIBUTOR - FORCE
DIRECT
DIRECT
PROMOTIONS

'PULL'

CONSUMER

Sales promotion targets

420 TheMorkeUng
Book

emphasize The
creativityoversimpleeconon-dcs. gamecard competitions andpromotional
differentpromotional toolsvaryin termsof merchandise catalogues. Internationally,pro.
motlonsvaryIntheir popularityandsultibil.
Their targets (seeFigure 18.1).'Push' Ity.Averageannualcouponredemptions per
promotions target marketingIntermediaries, householdrunat 81Inthe USA.16Inthe
supportingthe sellingeffort to get products UK. LSInSpain(source:NCH Promotional
onto retailers'shelves;while 'pull' promotions Surveys) andzeroIn Germanywherethey
targetconsumersandcomplementadvertising areIllegal.InJapanredeeming couponsat
In persuadingthem to pick productsoff the point-of-sale isconsidered embarrassing, and
shelvesagain. socompetitions arethe mostpopularpro.
2 Type of benefits offered. One fundamental motionaltool.
distinctionIs betweenvalueIncreasingand 4 Consumerappeal.Consumers likeextra
valueaddingpromotions.ValueIncreasing benefits.A 1986Harris/Marketing Weekpoll
promotions alter the product/price equation revealed that over 60 per cent of Britonshad
by Increasingthe product quantityor quality, to a
responded promotion during theprevi-
or decreasingIts price. Valueaddingpromo- ous month. However. differenttypesof pro-
dons leavethe basicproduct andprice Intact. motion appeal to different people. Research
andoffer somethingdifferent In terms of pre- by Gallupandnumeroussalespromotions
miums(free or self-liquidating),Information agencies suggests thatour age.sey.national-
or opportunities.The benefitscanbe Instant ity, outlook,soclo-economic groupingand
(scratch-and-wincompetitions),delayed ethnicorigincanallInfluence whichpromo-
(postalpremiums)or cumulative(loyalty pro- tionswe prefer.
grammes). S Marketing capabilities.Freesamples are
3 Product/market suitability. While canned obviouslyusefulfor encouraging product
beersfavour'l 3%extra free' offers,or on- trial,whilea prizedrawcanprovideamailing
pick competitionsand coupons,unpackaged list for futurepromotions.
draft beersrequire specialprice evenings, Implementation priorities. Whileprinting

Marketing Culture

MARKETING MarketingObjectives
PRXESS
MarketingInformation
MarketingStrategy
Marketing Activities

/pv-,,4frloo:
DesimbIlity m
CUSTOMER
BENEFIT Utility I Affordability I Accessibility I Credibility /"Im

visibility
AdwVsMV
endPR

PRODUCT PRICE PLACE PROMOTION

llýjure 18.2 Satisfaction
chain
TEXT BOUND INTO

THE SPINE
bg; fomovon 421

securityIs Importantfor gamecards,accurate consistency between any promotion and the

redemptionforecastingIsvital for coupons overallmarketinganýmarketingcommunications
&ndtive2ways,andanticipatingcompetitor effort holds good however tacticala particular
ract; on Is ImporzLntin price promotions. promotion might be (for further details on the
managementof trade and consumer promo-
"paceconstraintsprevent a detailed dis- tions see Shimp, 1997).This planning process
ft4mof eachtechnique,but Table 18.1.pro- hasmany similaritiesto advertisingcampaigns,
ks examplesof, and including:
notes on, some of
I Most popular forms of consumer pro-
AýDns. Externalagenciesthat frequentlyplayan
, SSICS
promotionisperhapsthe mostwidely important role in planningandImplementa.
Aj)derstoodelementof the marketing mix. tion.
* frNuently overlookedpoint about promo- A choiceof media,promotions canbe
M. particularlyvalue increasingones,is that deliveredon-packor In-store.via direct mail,
7 Ut not so much a distinct elementof the or in printed mediaIncludingnewspapersand
94ting mix, as a custornization of another magazines, cataloguesandother promotional
x element.Eachmix elementoffers different literature.
U'Lu to customers (see Figure 18.2). To A peculiarJargon,which canbe decoded
ýtlse the desirability of the total product usingthe Macmillan Dictionary of Marketing
Vir,& salespromotionscan: and Advertising (Baker. 1998).
Codesof practice.regulatorybodiesand
EMAncethe product legal Influence
offering'sutility by complex requirements which
trJmcing quality,or addingextra tangible their development. Promotions are bound by
benefits. the same laws as and
advertising, also by
Improveaffordabilityby Increasing legislationsuch as the Lotteries
the quan. more specific
try offered,decreasingthe price easing and Amusements Act 1976,or the Price
or
die paymentterms. Marking(BargainOffers) Order 1979(for full
Improveaccessibilityby detailsseeCircus, 1989).
gainingaccessto dis-
tribution channelsandthrough extras suchas
ff to delivery. The major differences in planning for
Supportthe advertising, and promotions occur during cam-
salesand PReffort advertising
to boost the product'svisibility andcredibil- paign objective setting and evaluation.In terms
hYthrCW&h eye-catchingand newsworthy of objective setting, promotions presenta more
Promotionalmaterials,and by creatingsub- complex setof possible alternativesthan adver-
itcts for advertisingcampaigns discussions
or tising. In addition to encouraging sales or
wi:h customers. product trial, they can pursue a wide range
of other strategic and tactical objectives
T,he salespromotions including:
planning
process Creatingawarenessor Interest.
'-4't 18.3 illustrates a somewhat idealized AssistingIn the launchof a new brandor the
'w 'of the steps involved in an effectively reinvigorationof a mature one.
f*",4d Promotion. Amidst the competitive cut Overshadowinga competitor's promotional
I au"Wt of *
marketing reality, the practical or other activities.
Will frequently involve a less orderly Deflectingattention awayfrom price compe-
_A14on
14ý-Making
process.However, the model's tition.
kt74- Reinforcingadvertisingthemes.
- -Ying message of the importance of
 *
oö r21 -9 9,
T *g
Co ýE 1
1
-
.24.

1
9 13 Z LA 1.8- *0 r- 01
cýO

cco, er

I
9Je, Z
-2
tb
4) LA 4) 8

1
iv 1
49 Es
ý. ý, 11
IM 3em
- .g Z§3 2> 81
g ,
wf ,ý
-3
,A
«ýc

11
Sg C-

',

9J.
z upillili Iii
 a S.
4A
ov

0% 1E0 Di g
-4
3
<

-0 2e
i -2L 9.
c9 o
:f5g', ' Zeg<A ,u -6
LU

Co) Z
22 Co -
Lý 0
-0 Co
-0 s1
LG

%ý.
a1
c2
2c .3m

2
0 r4 22
till

IC

7E
0v

S 114

6z

At
ul
u
 424 TheMarketingBook

ENVIRONMENTAL INTERNAL
ANALYSIS ANALYSIS
Jd*nt*proWvms Resources.
and opporNnities capaWfiliesand
corporatestrategy

MARKETING
STRATEGY

ADVEFMSING
COMMUNICATIONS STRATEGY
OBJECTIVES
BUDGETAND
STRATEGY 'ABOVE-rHE-LINE'

PROMOTION SELUN13 II PR
STRATEGY STRATEGY

SALES PROMOTION
PLAN
Concept Ot*Vms
Targehng
Message and Media

IMPLEMENTATION
77ming,Design
Delivery
Fulfillment

AND

Figure18.3 The sales

promotion planningprocess
" Developinga relationshipwith customers. Reinforcecommunicationto. or educationof.
" GatheringconsumerInformation. intermediaries.

Tradepromotions canaim to: In terms of measurabilitythe direct nature

of the consumer responsemakes their short-
term effectseasierto measureaccuratelythan
Encourageor reward salesefforts from Inter- those for advertising, particularly with the
mediarles. advent of information from electronicpoint of
Increaseor maintainfloor In Heinz have
or shelfspacefor sale (EPOS) systems. recentyears
products. run competitionsoffering prizes worth six fig-
Encouragestockingup by Intermediaries.
ures.Thesewere backedup by a sophisticated
Gainsupport for specialdisplays
or other pro- monitoring system using feedback-scratch
Motionalactivities. cards,to analysethe effectson behaviour and
Gainaccessto rjew sales buying patterns among participants. With 60
outlets.
InsulateIntermediariesfrom temporary
per centof 30 000surveyedparticipantsto three
silts downturns or pressureon margins. competitionsreturning cards,Heinz have built
TEXT BOUND INTO

THE SPINE
 pfunction 42S
ý0

in&ccurate pictureof theeffectthat suchpro- the costeffectivenessof advertising in thefaceof

6M4canhave,and their increased 'clutter'.
effectivenesswhen rising pricesand advertising
I through different Between 1983and i987
grocery chains. One the revenue produced
uý4& of the measurability that direct by a given level of advertising dropped by
ýCrlsftallow, is that the less measurable almost 20 per cent (source: Financial World,
hvt responsesrelating to brand 3/11/87). Increasingconsumerhostility towards
awareness
=9e tendto be overlooked. advertising hasfuelled thesedoubts.A 1993sur-
7%6chapteraims to UK byMarketing Week The
emphasizethe differ- vey of 1000 adults and
ts between promotions and advertising, Hunwn Factorindicated that nearly half of the
4 are Perhapsbest summed by Hugh (perhaps
up population claim rather optimistically)
Adson(1975)asfollows: to beadvertising immune'and overonethird felt
FwTilthepurposeof advertisingis to improve that advertisingwas'a bad influenceon society'.
tt!rstDwardsabrand,whiletheobjectof promo- The adventof videosand remotecontrolswhich
Asto trartslatefavourable allow adverts to bezapped'has also eroded tele-
attitudesinto actual in to
1ý4w- Advertisingcannotclosea salebecause its vision advertisers' confidence their ability
Onistoofarfromthepointof purchase, but pro- reachtheir targetaudience.
Icncanmd does. Over time, the emphasisplaced on adver-
7he comparative tising and promotionswithin marketsand firms
ability of promotions to swinging back-
at $410 reflects three key differences to often resemblesa pendulum
wards and forwards across that imaginary line.
vtilin& eachof which form a themefor the
!,C--f
thischapter. Eachtime a blue chip companychangesits mar-
keting communication emphasis towards one
COmmunication sideof the line, it is interpreted as the beginning
capabilities. for At the 1990s
P-03tionship buildingcapabilities. of the end the other. the start of
flexibilityand
manageability.
the swing towards promotion was exemplified
by Heinz, who in 1992cut their USadvertising
budget and transferred $100 million into
r ICSpromotion and advertising
(mostly trade) promotions. The result was an
- immediate 7.3 per cent market share gain for
the line and the pendulum Heinz ketchup alone, reversing a six month
sales decline. By 1992 American packaged
T-M-Unications budgetsareoften spokenof as were spending three
goods manufacturers
I blvested'above-the-line'and 'below-the- times as much on consumerand trade promo-
ý'-7h4line* originallydenoted
whetheror not tions as on media advertising (Shimp, 1997).
'1ý'-U*ationseffortswerechanneUed through However,this proliferation of promotionsled to
ýr-'ML'ng agencies(seeFigure183).With sales 'overkill', and the mid 1990s
concern about
0-ftenclassifiedas separatefunctions, saw a swing back towards advertising in many
has becomesynonymouswith markets. In 1996 Procter & Gamble signalled Its
PrOmotions. 7heexistenceof this conceptual desire to reduceits dependenceon promotions
ý4 castsadvertising
, and salespromotion in by withdrawing couponing as an 'experiment'
M4 Ofrivals for the biggest in threeUScities.It was then forced to abandon
share of a com-
I YSCurketing communicationsbudget. four in the face of
the experiment months early
the 1980stherewas a gradual shift opposition from retailersand customers.
g communicationsemphasis and Nineteen-ninety-sevenproved to be a diffi-
*74ture away from traditional 'brand for the industry, in which it
sell' cult year advertising
""tiling and towards sales This from the key brands that sus-
1ý0 emphasis promotion. cameunder attack
reflectsgrowing doubts about tain it. Dominic Cadbury, Chairman of Cadbury
426 TheMarketingBook

Promotion
type 1996expenditure Comments
billions)

Premiumincentives 20.5 Splitbetweenbusiness-to-business incentives($7.5bn),

consumerpremiums ($55 bn), travel ($6 bn) andgifts
($1 bn).Recentgrowth hasbeenconcentratedin
travelandalsoin promotionalphonecardswhich in
only four yearshave become worth $500 m.
Pointof purchase 12.6 EVerienced5%growth 1995/6.The largestuser
(tobaccoproducts)facesa legislative ban.Keygrowth
sectoris sportinggoods.
Ad specialities 9-5 Ad specialitiesrefers to promotional items (logoed hats,
T-shirts,pens,mousepads). Increased by 18%,key
usersare healthcare, financialservices, computer firms.
Trendtowardsupmarketsuppliers. e.g.Fruitof the
LoomT-shirtsandWaterford crystal.
Couponing 6.4 Despiteunfashionable image,300billioncoupons
55
reached million US households. Trends towards
shorter duration(3 months in 1996 compared to 10
months in 1980) and better targeting. Steady growth in
machinedistributedand'paperiess'coupons.
Speciality
printing 5.6 Somemajorpromotions(e.g.McDonald'sMonopolyand
TacoBell'sStarWars game)ledto stronggrowth in
printinganddistributionof gamepromotionpieces.
Sponsorships 5.4 Sawa 15%increasewith ten sponsorspaying$40 million
each to sponsor both the U11tharnmer and Atlanta games.
Promotionallicensing 5.0 Continuedsteadygrowthwith filmslikeBatman& Robin,
HerculesandJurassic Park:TheLostWorid being
linkedinto fastfood. soft drinks,toys.
Productsampling 0.86 Not the most populartechniquedueto costandlogis-
ticalcomplexity.SO showed II% growthandthere is
increasing diversityin methodsandlocationsusedto
deliversamplesto customers.
Interactive 0.82 Web sitesnow havebannersofferinggames,coupon
order forms,sampleor cataloguerequests.
Cowles/Simba Informationreported 147%growth in
web basedpromotons in 1996.

Source: 1997AnnualReportof the US PromotionIndustry

TEXT BOUND INTO

THE SPINE
1*3pmmovon 427

:ýwtppes,publicly rebuked marketersfor

16:obsession with the 'froth' of advertising. The grow ing importance of sales
14 Fitzgerald,Chairmanof Unilever ion
stated pro mot
WI do not find today'sadvertisingagencies
1i:4 muchof a matchfor tomorrow'smarket- Measuring total sales promotion expenditure
%r-rPortunities.' PaulPolman,VicePresident is
accurately virtually impossible due to its frag-
IdGeneral Managerof Procter& Gamble,the mentednatureand the diversity of definitions of
V:U*sbiggestadvertiser,attackedthe 47 per it
what should include. While some estimates
IMrisein TV advertisingcostsbetween1992 include all direct mail costs, others exclude
Id 1997as 'unacceptable'. It was perhaps them. Yet direct is
mail actually medium a for
kcativethatSaatchiandSaatchi, brand
a syn- salespromotion (and advertising),with approxi-
ntnoaswith above-the-line activity,chosein mately 60 per cent of mailshots containing
6710droptheword'advertising'fromits title
4001imiting. someform of promotion. Although we canonly
the
estimate overall growth in promotions,evi-
Debates aboutwhichsideof theline is the denceof it confronts us every time we enter a
b,M1destinationfor
marketingfundstend to supermarket. Some of the components of total
JýVWC)usive. Advertisingand salespromo- can also be measured
promotions expenditure
2narebotheffectivetechniques, which work accurately,evenif we cannotagreewhat consti-
19ascomplementary componentsof a stra- tutes the whole. For example, we know that in
04Y Planned andintegrated 1996the UK just 4 billion coupons dis-
communications saw over
IrPAJ97L 7he trendtowardssuchintegration tributed, with over 210 million redeemed
IdLhe blurringof thatimaginaryline,hasledto: (Source:NCH PromotionalServices).Table18.2
shows the figures for different elementsof pro-
TheProliferation for 1996 for the USA, the
of'Integratedcommuni- motional expenditure
Cations!(or'through the line) agencies that leads the world in the use of sales
4ndlint campaigns both market
on sidesof the line. promotion.
An IncreaseIn 'spadspend'.
advertising There are seven key factors driving the
expenditureto reinforce promotions.This
&Ccounts for an estimated20 per cent of all
growth in promotions:
Ldyfrtising,with around$20 billion spent In Increasing 'respectability', partly through
1996on advertising by
greater use market leaders.The three
about salespromotions
k"the USA(source: 1997AnnualReport
of largestdistributors of couponsIn the UK in
dl* Wes Promotion Industry).An
exampleIs 1996were Heinz. Procter& Gambleand
t14 'Good food costslessat Sainsbury', Unilever,andother major promoters Include
WnPalgnhighlightingpromotional price brandssuchas McDonald's,Coca-Cola.
Offirs. Pepsi.British Alronys and Cadbury's.Cred-
Morethemedpromotions lbility hasalso beenboosted by Increasing
aimingto rein-
forcebrand professionalismamongsalespromotion
valuesandadvertisingmessages.
"tinz useof
prizesIn groupsof 57 for their agencies.
CompetitionsIs a simpleexample brand
of 2 Increased Impulse purchasing. Point of
dien-ing. PurchaseInstitute researchdataIndicates
Somevery that the majority of all purchase decisionsare
novelapproachesto managing
the Promotionaleffort. SegaInvitedthe finalizedIn-store,and cantherefore be
*'irAtrS of a promotionalcompetitionto Influencedby In-store promotions.
1*fM&'think 3 Shortening time horizons, reflecting
tank'with brandmanagersand
46ftsing agencyaccountmanagersto help Increasingmarket volatility andrivalry, and
OM their future accelerating product life cycles(Shultz.
campaigns.
428 TheMarketingBook

1987).Thesemakethe fast salesboost that

colour, size, flavour or facilities)are unsuitable
promotions canoffer attractive. for some potential customers. Further cus.,
4 Micro-marketing approaches, In tomerswill be screenedout who desire,but call;
responseto fragmentingmarkets,where not quite afford the product, others will find the
promotions canprovide more tailored and channelsused inconvenient,and still morewil;
targetedcommunicationthan massmedia. remain untouched by the brand's advertising.
S Declining brand loyalty (seeChapter 5). Thespecificationof thestandardmarketingmix
Causedby wideningchoice,narrowing per. therefore createsa customergroup for whom
ceiveddifferencesbetweenbrands,and (in the basicproduct offer is not ideal. Thesemar.
fastmovingconsumergoods,or FMCG,mar- &al consumersrepresenta prime target for
kets) retailer own brandsbecomingIncreas- promotions wWch, by offering additional bene.
Inglycredible. fits, may overcometheir reservationsaboutthe
6 A'snowbal V effect. In somemarkets com- brand to stimulate a purchase.
paniesIncreasinglyfeel obligedto match The targeting of suchmarginal consumers
rivals'salespromotion activity,or risk losing is standard practicein political marketing,but
marketshareand competitiveposition (Lal. has often been neglected by commercial
1990). marketers. Cummins (1989) suggests that such
7 Affordability. Nationalmassmediahas non-core, low-loyalty consumers 'tend to be
becomeprohibitively expensivefor many by
regarded many companieswith the distaste
companies,particularlyduringrecessionary felt for the morally promiscuous'.In fact, the
squeezeson marketingbudgets.Promotions promotional battle to captureand convertmar-
allow nationalcoverageat a lower cost, cost ginal consumers can be an important part of
sharingwith co-promoters,andcanevenbe marketingstrategy because:
self-funding.
They are very lucrative. Exwa salesfrom
Therecentrush to offer the consumerextra marginal consumers, minus variable costs,
value has some potential drawbacks. Some equals pure profit.
critics suggest that overuse is training cus- 2 Those who like the brand may become loyal
tomers to buy products only on promotion, consumers.
while othersclaim that promotional overkill is Eachmarginalconsumerwon over deprives
desensitizingconsumersto their benefits.There a competitor of a potentiallylucrative
isalsotheconcernthat emphasizingpromotions sale.
leadsmarketersto focus on short term tactical
issuesinsteadof longer term strategy (Strang, The good news for marketersneedingto
1976). win over additional consumers, is that promo-
tions are a very effective persuader. In their
ý Consumers (a one
and sales promotion ý research into coffee purchasing process
rnight expect to involve a high degree of per-
Thereis generalagreementthat the marketing brand loyalty), Fraser and Hite
sonal tasteand
mix shouldbe managedasan integratedwhole. (1990)concludedthat
However,in practicethe
approachto managing The vast majority of consumersare promotion
the mix frequently follows the product, price, incentives effective
responsive Promotional are
place, promotion sequencereflecting the per- ... brand pur-
in capturing choices, encouraging
ceivedimportanceof eachelementin winning andstimulatingcategory demand.
chaseacceleration
customers(seeFigure 18.4).Oncethe product is Many customersuse and expectdeals,and many
specified,part of the total availablemarket will behaviour$ by
moreare inducedto alter purchase
be lost becausethe dealoffers.
product features (such as
 429

I IDO%

Competitors'
Share
SALES I
TOTAL
AVAILABLE TION
PROMC7 ----- ----
MARKET Marginal
R Consumers
p
p ----------t
8
D L ADV
I
u A PR Core
c
c c and Consumers
E
T I II SALES
0

MARKETINGMIX DECISIONS
ýCOS18.4 Promotions
andthe marketingmbc a sequentialmodel
There are four promotions can overcome consumers'
main dimensions of
IMuMer behaviourwhich determine innate conservatism and reduce the
people's
*'FNv',
$eto promotions: perceived risk they associate with purchase.

Value consciousness. Promotions A promotion does more than provide an

enhance
the valueof the product offering.Priceand to
opportunity stimulatea simpleresponse from
Productbasedpromotions are most directly a consumer.It provides opportunities to change
targetedat consumers'desirefor value. the consumer'swhole relationsl-jpwith a given
Susceptibility to in f
brand (seeFigure 18.5) threýways.
promotions. Beyondsim-
04 economicrationality,
peoplevary in their
ft: ponsiveness to promotions(Uchtensteinet Conversion. Chapter5 stressedthe Import.
4.1970). Manypeople
enjoythe senseof anceof encouragingproduct trial to convert
bting a 'smart shopper'whichjudicious Into customers. Promotions
useof potentialusers
Promotionscanprovide.Susceptibilitycan are effectiveastrial Incentives,because they
varyIn relationto the natureof the product reduceperceivedrisk andcanattract non.
beingpurchased(Bawa Shoemaker.1987) benefits rather than
and usersthrough additional
andalsoto the natureof the shoppingtrip and relyingon the attractionof anunfamiliarprod.
f=11 environment(Chandon,1995). uct. Consumerswho are satisfiedwith a pro.
Brand loyalty. Promotions
canovercome moted brandhavein Increasedprobabilityof
COnsurner loyaltyto a competitor's brandto repeatpurchases In future. This Is particularly
tKOurage brandswitching,or they cancapit- true of previous non-users (Rothschild and
144 on core customerloyaltyandencourage Gaidis,1961).NeilsenPromotionServices
k%creased foundthat 55 per cent of consumerswho
usage.
Attitude to brand because
risk. By reducingprice, enter competitionswill selecta
111owing product trial. providingInformation of a competition. and that 95 per cent of
or Improvingwarrantyor paymentterms thosewill repurchaseIn future.
 430
TheMarketingBook

HI - I. LO
Strategicbenefits

RETAINAND
ENCOURAG
WHOOPSI
EXISTING
USERS

v
NON PRODUCT RIVAL BRAND OWN P(
USER SWITCHER LOYAL SWITCHER LOYAL
*I a
CONVERT
POSSIBLE
USERS
GENERATE
NEW USERS

Hl Lo
Persuasioncosts

Figure 18.5 The

roles of promotion In convertingconsumers
2 Retention. Providingdelayedor cumulative behav-
to
customer change their attitudes and
benefitscanhelpto encouragerepeat iour in the brand's favour. Conununicating
pur.
chases.'Collect and save'schemesor'money
effectivelyrequiresthe marketerto developthe
off next purchase'couponscanhelpto retain
right message,selectan appropriate medium,
promotion-sensitivebrand switchers. and accurately target the campaign. When it
3 Acceleration. McDonald's flex-
reacheda point
comes to targeting, promotions are more
where awiNness levelswere becomingdiffi-
ible than advertising,which essentiallypresents
cult to Improvethrough advertising,resulting
one messageat a time to the entire audience (a
In decliningbusinesspotentialfrom new cus-
'shotgun'approach).Promotionscancommuni-
tomers.They havetherefore switchedan cate different messagesto different customer
Increasingproportion of a billion-dollarcom-
groups. Ulay products were having problems
municationsbudgetInto promotionsaimed reachingtheir targetmarket,'women agedIS to
at gettingmore businessfrom existingcus-
65 and older', with a universal advertising
tomers.The'Happy Meal'promotionspro- theme. 7his prompted their 'Woman of the
World' competition, offering various holiday
vide setsof noveltiesfor childrento collect.
changedat regularintervalsto accelerate
prizes ranging from an art tour of London to
visit frequency. trekking in the Far East,designedto appealto
the full rangeof agegroups.
Communicatingthrough sales Advertising's approach to communication
is rooted in the early physical systemsbased
I promotions approaches to human communication de-
wwý veloped in the 1940s and 1950s by the likes of
Like advertising, Lasswell Schramm (Buttle, 1990). The
promotions seek to connect and
With the customer to generate awareness, is seenas a 'magic bullet' transferring
inform, entertain, message
and generally persuadethe encodedinformationfromasender(the advertiser)
I

lokspwi*Uon 431

the ksorbedanddecoded,relativelypassively, 3 Desire. Encouragedby the offer of add-

ýj s receiver(the targetaudience).Promotions Itional benefits.Researchby Millwar Brown
1996Cadbury's 'd
Coronation
k6ed morecontemporary theories of human and ASL Into the
6==nication, which stressits social context Street Interactiveon-packpromotion
andprmftses of sharing, responseand inter- showedthat 26 per cent of adultswere
Sc6orL Promotionscommunicatewith the aim awareof the promotion and that the lure
I(CX=aSing interactionbetweentheproducer 8
of the million prizes made 13 per cent
MI theconsumer,through a sale,the clipping feel encouragedto buy more Cadbury's
ONcouponor the testingof a product sample. bars.
In termsof persuasion,promotions' direct 4 Action. Promotionsdiffer from advertising
W-7,onseorientation has focused attention on (with the exceptionof direct responseadver.
*t'&Cbon'phase theAIDA Chapter 17)in seeking a direct
of model (seeChap- tising,see
Ik*-17)whendiscussingtheir communications response. The responseswhich a promotion
*ýIbIbm In fact,promotionswork effectively might try to generateInclude encouraging
&4ýngeach consumersto:
phase of this communication
FXfts:
Acceleratetheir purchasetimingof a
Attention. Promotions brand.
are undoubtedly
AMention grabbing.Words suchas'Extra', Selecta brand for their initial purchase.
Tret'. Win'and'Special'all help Stayloyal to a brand.
promoted
Productsto standout on the shelvesof Switchbrands.
todayssupermarketswhich cancontainover Replacea consumerdurable.
IS 000differentproductsjostlingfor Overcome their previousobjectionsto a
the
consumer'sattention.Spillers'1996'Purrfect brand and sampleIt.
Two' promotion Gather Informationabout a brand.
wasan excellent'attention
leue-When shopperspassedthe Spillers'
d"PlayIn Somerfield's
stores,a 'volcebox' Promotionscanalsogo beyondprompting
wastriggeredby laserso that a voicethen action to create interaction and consumer
daflengedthem to try involvement with a brand, by requiring them
new Spillers'Purrfect.
Theendconsumer's to analyse and rank its attributes, create a
attention wasalso
Ittracted by an Innovativemailingcontaining recipe around it, test drive it or sum up its
In aromaburst strip to appealto cats,which virtues in ten words or less. While advertising
wU sentto a mailinglist of known cat food is a one-way communication process,promo-
buyers. tions can create a dialogue. Competitions,
Interest. Promotions direct mail promotions and sampling pro-
caninject novelty and
evenfun into the most familiaror mundane grammesare increasingly being used to gather
of Products.Financialservicescompanies information from consumers,aswell asto send
hav*foundthat to them. Guinness used questions on
promotionalcompetitions messages
CreateconsiderableInterestamongcus- a competition leaflet to help pinpoint more
t0mtrs and staff,which canbe Important In a accurately their key competitors in the canned
P11CO Competitivemarket with an Intangible beer market. Beamish Stout capitalized on
Product(Peittle andPeattle1994).Barclays their sponsorship of Inspector Morse by
4nk's 1998Nest Egg 'policewomen. They
competitionencour- sending out a squad of
liled customersto discusstheir savingsneeds persuaded drinkers to 'help with their
with &'PersonalBanker'with the lure of enquiries', and combined an effective sam-
1100000 In prizes
CremeEggfor
anda free Cadbury's pling promotion with a major market research
everyone. exercise.
432 TheMarketingBook

Manyproductsnowrelyheavilyonretailersup.
Building relationships t hrough port, and increasing tradepromotionsreflects
pro mot io ns their importancein maintaininggoodchannel
relationships. Intermediaries have begun to
Becausepromotions go beyond the 'magic stronglyinfluencetheextentandnatureof pro-
bullet'approach to communication,they Create ducerpromotions,asevidencedby theretailer
resistance encountered by Procterand Gamble
opportunitiestobuild relationshipsbetweenthe it to its relianceon pro..
when attempted reduce
Promoterand the target. Three areasin which
relationshipbuilding is central are in tradepro-
motions.
Promotionsalsoplay an importantpart in
motionsaimed at retailers and distributors, in
supportingand encouragingsalesactivity, and
supportingthe saleseffortsof industrialmar-
in developing marketing partnerships with
keters.Thenegotiationof specialdealsfor key
customers, participation at trade fairs, product
othercompanies. the product informa-
Trade promotions are lessvaried than the samplesand provision of
tion all play a vital part in reducingthebuyers'
Consumer promotions in Table18.1,but operate perceptionof risk and helping to win contracts.
from similar principles. Intermediaries are
Promotionalgifts ashumbleascalendars, pens
offered special discounts or payment terms,
gifts, contests,salesinformation or extra prod- andmugsall playa partin communicating, and
in keepingthepromoter'snameat thepotential
UCtto gain their enthusiasmand shelfspace.For fingertips.
example,in Spring 1996UK computer dealers purchaser's
Salesforce contests are another form of pro-
were sent a ceramic musical money box mod- by
motion used around threequartersof all
elled on the NUcrosoftMouse 2.0 in a cheese Their is oftenunder-
companies. effectiveness
wedge shapebox along with a brochure and in by overemphasizing financial
somecheesewedge salesaids. The number of mined practice
dealersmaking Mouse 2.0 salesbetweenMay incentivesandby allowingthemto becomean
expectedpart of salesforce remuneration. A
andJuly thenincreasedby 55 per cent. to internal contests is
At the dark end of the spectrum,bribery morecreativeapproach
demonstratedby SwissaiesSwingocompeti-
could qualify as a form of promotion, and in tion,whichwasopento all staffandwasbased
Offering intermediaries extra benefits, a pro- traffic It met its key aims
ducermust alwaysbe sensitiveto their targets, aroundair movements.
of testing and improving product knowledge,
Policiestowards the acceptanceof promotional service.
gifts.This issuemadethe headlinesduring 1997 aidingtrainingandenhancing customer
It alsoappealedto employees to theextentthat
whenthe UK Governmentannouncedactionto
theirpersonalized gamecardsbecame regarded
control the offering of promotional incentives
for doctorsby drug companies.An exampleof a asstatussymbols.
Promotionsallow producersto join forces
relatively sophisticated relationship building to take advantageof synergiesbetweentheir
promotionisJVC'sPro-Sclub for top performing between their target
video dealers.The club provides dealerswith products or similarities
high levelsof marketing markets. Thiscancreatesomeunlikelyalliances,
support in return for unthinkable in terms of joint brand-sell
specificCommitmentson how JVCproductswill Barclays Bank teamed up with
bepresentedand advertising.
supported. Kellogg'stoofferon-packbankdepositcoupons
During the last decade, retailer mergers,
increasinglycentralizedbuying and the provi- aimed at gettiz3g children to eat more cereals and
opena bank The
account. award for the least
sion of marketing information from EPOSsys- likely combination, but onewith an interesting
tems have all shifted power away from brand from
slanton reinforcing values,comes
Producers towards retailers (Shultz, 1987). 1998 from the Clorets breath
the promotion
TEXT BOUND INTO

THE SPINE
 433

ý -vimtýk

PrCiduct
Special
di SpIýay;
s 0,
ý ;,! II..
Special editions ý-'i C, ......
In-store
gam es, recipes, etc.
004wýd Free samples
'On"tItions Banded usabl packS
packs Value packs

rl- Trade promotions

Retailer specific offers
Promoboq*
Coupons Money ot'
Credit terms

Donation Product literature

--I Trade fairs Spadspend' Salesforce

'Ponsofships

Promotlomil
ý7"i"
advoftming

0-:*1 b6 Promotions and the

marketing mix: an integrated model

"'iersbrand offering a free curry frorn The management than the 'quick fi\' campaign
( !ub. In America General Motors (GNI) The highly successful Lever and
stereotype.
ft-J up with Procter & Gamble British Rwil 'two for the price of one' train ticket
to give away
Cadillacs at a cost half
of $9 million. Thi',, offer required two and a years of planning
AJýCompanies' biggest ever promotion.
and negotiation.
ýAG, Cadillacs as The growing awareness of the potential
prizes attnicted con-
0--b while reinforcing P&G's image, importance is leading to
kýe !hr quality strategic of promotions
seven keN,P&G brands invoI,, '-vd gave a more integrated approach to their manage-
ýIrect comm'unication channel into 98 per ment Ind their role within the marketing mix.
1 American homes, The link between The intvi-twining of promotion with the rest (it
and refreshments has also Ied to a the mix is demonstrated by Figure 18.6. The
W* fange Ps' less than the
of co-promotions, vvit 11different fast model's 'nine are memorable
16dcnd boft drink brands locked in a fierce bid-
classic four, but they demonstrate the difficul-
* '-Ar for the
right to de. 'CIL)p promotions ties of isolating, promotion-,, within the mix (and
I't 1-!,.1, it is worth emphasizing that the interaction-,,
To
ii writioned are only an illustrative selection).
there are now more than 200
tAe one e\aniple,
and distrib-
! omotional magazines published
by companies in the UK and around 20
:tecl
h,ive a circulation of over a million reader-,
Man%-would classify this as public relations
just one of several tactors causing a re- than and the
activity rather a sales promotion,
-1!10n of whit promotion-, can achieve for issue is complicated further by the likes of the
Reldhon-ship building is being
requires a Sainsbury's magazine which unusual in
llýlnger-terrn approach to promotions sold rather than distributed free.
434 TheMarketingBook

Theentangling of promotions with the rest management of inventories and businesses.

of the mix accountsfor the problemsthat occur Thishasbeentakento extremesby companies
whenpeopleattempt to define or measuresales suchas Mrs Fields' Cookies with outletsbeing
promotion activity. Quelch (1989)alsosuggests linked directly to the centralinformationsys,
that in practiceit is the failure to integratepro- tem.This allowssalespatternsto beanalysed,
motions effectively into the n-dx that leads to and any necessarypoint-of-salepromotibnal
problemsand to much of the criticism of promo- offers suggested, in 'real time' (Haeckel and
tions. On the positive side, this lack of clear Nolan,1993).
boundaries can be viewed as providing an 7hereis a wealthof commonsenseadvice
unrivalled opportunity for marketing managers available to marketers on how to successfully
to find innovativeand creativeways of reaching and strategicallymanagepromotions,mostly
customers.Robinsonand Shultz (1982)suggest coveringpointssuchas:
that the internal boundary spanning nature of
promotions make them an ideal 'bridge, pro- Look to addvaluerather thin cut prices
viding opportunities to integrate the communi- wherever possible.
cations efforts of advertising, selling and PR " Unk the promotion closelyto the brandval.
which may eachbe the responsibility of differ- ues.
ent managers. " Themepromotionsto reinforce advertising
themes.
" Developsynergieswith salesandPRcam.
Salespromotions the most
- paigns.
manageableP? " Searchout cross-promotionil opportunities.
" Rewardloyalusersandencouragerepeatpur.
Salespromotionsappealto marketingmanagers chases.
becausethey are flexible and fast acting. They " Ensurethat the promotion Is carefullytar.
are also more directly control.lable than other getedwith quantifiedobjectives.andoverseen
elementsof the marketing mix, becausegener- by a sufficientlyseniorexecutive.
ally speaking: " Constantlymonitor andre-eyaluateprogress.

Developingnew products is a slow process Sales promotions mismanagement

which often relies on technicalspecialists.
Permanentprice changesdependon financial Sales promotions can achieve many marketing
management's cooperationinternallyandcus- objectives, but they have definite limitations.
tomer acceptanceor rivals' reactionsexter- They will not compensate for fundamental
nilly. weaknesses in the rest of the marketing mix,
Channelchangesinvolvelengthynegotiations they will not revive the fortunes of an outdated
with third parties. brand, and overuse can be counterproductive.
Advertisingcampaignsare plannedslowlyand Despite their manageability, promotions fre-
carefullyto nurture the imageof the brand. quently run Into problems, Advertising, with its
fixed up-front costs, is often considered to be
For themarketerlooking to makea mark in more risky than sales promotions, whose costs
-anew job, under pressureto respond to com- are generaUy more spread out and related to
PetitorSor struggling to meet tough salestar- sales volume. However, while n-dsconceived
gets, promotions can offer a speedy solution. advertising dents credibility and wastes com-
Promotions' origins as tactical weaponsmake munications budgets, a bungled promotion can
them very responsiveand manoeuvrable,and also incur significant public relations and other
well suited to just-in-time approachesto the "clean-up'costs. This was graphically illustrated
 pmotion 43S

ýytheHooverFree Flights' fiascowherea dras- mates of the response. A promotion which Is

týcWAerestimatein the redemption rate of a unexpected! y successful Inattractingcus-
EOU giveawayled to lossesinitially tomers(is happened to Hoover)canresult
estimated
at MO million, and a great deal of adverse Indisastrous losses.Misjudging the extentor
p-Ilicity. timingof consumerresponse can alsoleadto
7he ways in which promotions can go stock-outs and subsequent customer dissit.
%Wng aremany and varied, from Pepsi'svirtu- Isfactlon.AlliedSignalPlastics promisedcus-
JZY%vwelfree 'Spell Your Surnameand Win' tomers48-hourdeliveryof anyquantityof Its
CoMest, won by an unexpectedlylarge number mostpopularresins. However. within days of
C(peoplecalled Ng, to lightning wiping out startingthe promotion, the company had to
24yardSales'solecopy its It because It couldnot meetthe
of promotional data- abandon
7hereare eight major dangersassociated expectations thatweregenerated.
promotions: 6 Quality dissonance.Reducing prices,or
offeringlow qualityfreegiftsor competition
Promotional price wars. Theseerode prizes, risks devaluing anotherwisestrong
marginsInsteadof boostingsales(seeChap- brandInconsumers' minds.
ter 14).A variationof theseare 'coupon 7 Tax. SeveralmajorpromotersIncluding
wars'which haverecently occurred within McDonald's, BootsandSonyhavefound
the UK grocery market.Tesco'spledgeto themselves Inhighprofilelegalclashes with
redeemanyone'scouponsdrew an angry the Customs and Excise Service over VAT
responsefrom Its rivalsand promptedAsda payments on salespromotions.
to distribute50 per cent discountcouponsIn 8 Fulfilment problems. Everyyear.between
areaswithout Asdastores. 200and300promotionsresultIn complaints
Milredemption of coupons. This presents to the Advertising Standards Authority.
a rnýor hazard,with one USgangde- Around90 percentof theseareupheldfor
llýaudingmanufacturersof a staggering $186 breaching the Institute of SalesPromotion
aullion(Shimp,1997).Marketersfrequently (ISP)Codeof Practice. About20 per centof
budgetfor around20 per allsuchproblemsarenot relatedto the
centmisredemp-
tions.but the problemmayrecedewith tech- sponsor, but lie with the handling houses
Nc2Iadvances suchascouponbarcode whichoversee the logisticsof fulfilment.
smnriing.
Reference price changes. A promotional Promotions encounter such problems
Priceattracts customersby undercuttingthe becausethey usually do not enjoy the rigorous
expected'normal' price. Too longor too fre- planning and control afforded to advertising
quentprice promotions lower customers' Time pressure and a tendency for
campaigns.
.reference'price. so that they seea return to the implementationand evaluation of promo-
the originalprice asan Increase(Lattin and tions to be delegated too far down the organiza-
Bucklin,1989). tion contribute to this situation, which was
Printing errors. Gamecardpromotions by
summedup a classicarticle by Roger Strang
requirecarefulattention to printing accuracy (1976)entitled 'Sales Promotions: Fast Crowth,
andsecurity.Esso'sNoughtsandCrosses FaultyManagement'.Most promotional pitfalls
gamehadto be withdrawn after Its first two be
can avoided by:
weeksafter twenty I 100000first prize win-
ningtJckeu emergedwhen onlytwo should Greaterattention to the promotional plan.
haveexistedfor the entire promotion. ningprocess detailedIn Figure 18.3.
Overredemption. Coupons,giveawaysand Addressingthe type of commonsenseques-
bvybackschemesare based tions containedIn the COMPETE USING
all around esti-
 436 TheMarketingBook

Concept Do we needa promotion?If so,why?Isthe promotionalefilortbestaimedat the

consumer,the trade or both?Will the promotion be sharedwith another
produceror a retailer?If so,how will costsand responsibilities be divided?
Objectives VVhatarethe marketing VVhatmessage will it sendto
communications objec&ves?
consumers andwhateffiectshouldit produce? Isit onlyshort-termsalesuplift or are
theremom long-termobjectives suchasgenerating newusersor raisingproduct
awareness? Shouldthepromotiontargeta] marletsandconsumers or bemomselective?
Mechanics What typesof promotionare feasible,whichbest suitthe product.andwhichare
most likelyto meet our objectives? How will it reachconsumers? Cana tried and
trustedtechniquebe givenan innovativeand creativeedge?What couldgo
wrong logistically andhow could it be prevented?
Practicalissues Who will handlethe planninganddesign,in-houseor agency?. Who will manage
the campaigninternally? What actionsmusttakeplace,when.andby whom,to
implementthe promotion?Will fulfilmentbe handledinternallyor by a handling
house?Will enoughstockbe available?
Expenditure How muchof the marketingbudgetandthe time of marketingmanagement should
the promotionconsume? Shouldit be supportedby'spadspend'? What levelof
is
uptake expected? How likelyand costly could an excessivelyhigh levelof
uptakebe?Issalespromotioninsuranceneeded?
Timing Shouldthe promotionbe usedto counteractseasonallows.reinforceseasonal highs
or'spoil'rivals'promotions?Shouldthe durationbe longto maximizesales,or
shortto preventlossof consumerinterest?How longshouldspecialpacks,
couponsor leafletsetc.be for?
available Should the benefits be instantly available,
delayedor cumulative? What redemptiondeadlineshouldbe set?
Evalurtion How will the efrectivenessof the be
promotion measured in termsof achieving its
objectives? Who shouldberesponsible for evaluatiomwhenandusingwhatmeasures?

PROMOTIONSchecklist(Table 18.3)while Innovation and creativity are key

effectiveness.
planningthe promotion campaign. successfactors, and recent advancesin pack-
Adheringto the ISPCode of Practice. and information technology have
aging
provided many exciting new ways to offer
There are someindications that salespro- customersextrabenefits.
Motions are becoming more effectively man-
89edasthe industry matures.In 1996American High-tech coupons: maymakecoupon
companiesspent around $1 billion on research clippinga thing of the past.VisionValue Net-
relatedto promotions according to US promo- work video terminals, adopted by over 800
tion industry figures. USgrocery stores.offer consumersIn-store
paperand 'paperless'coupons,automated
The future bankdebit paymentsanda frequentshopper
of sales promotion
club.Sinfonla Marketing Systems In France
Onegolden rule hasIntroducedthe Promocarte,a smartcard
of promotions managementis
that overuse of any technique wiU blunt its which canhold and automaticallyredeem
Wm"notion 437

couponInformationbasedon previouspur- IncludingUniversalOffice Supplies,RSCom-

duses. ponentsandSKFare replacingtraditional
EPOSsystems:whichallowthe bandingof product catarogues with on-diskcatalogues
products Inalogicalratherthana physical which Includeautomaticorder processing
sense.Safeways 'Unksave'and'Multisave' sofcware and In-built key customer
promotions involvethe EPOSsystemIdenti- discounts.
fOt andrefunding the priceof thethird
Insanceof a'buytwo, getonefree'product. Summary - the changingconcept
or automaticallyrefundinga'plggyback' pur-
chase.Thisremovesmuchof the repackaging of salespromotion
andlogisticalcostsassociatedwith product
based promotions. For many years a widespreadview of promo-
PackagingInnovations:allowIncreasingly tions was as short term, tactical tools, often
versatileandnovelsamplepacks.or encapsu- added into the marketing mix of struggling
lationsfor useInletterboxdropsor as FMCGbrands to boost sales.This attitude was
sun,uned up in the assertionby Ken Roman of
attachments to productsandmagazine covers.
Jacob's'Fridge'em Ogilvy & Mather, that promotions rent cus-
to Win'competitionused benefits(and by implica-
thermochromic Ink(whichonlyshowedthe tomerswhile product
winflosemessage whenchilled)on the tion their communicationthrough advertising)
wnpper of eachClub biscuitto encourage owncustomers.
Usersto buyandrefrigeratethem during the Much of the early academicresearchinto
tradrdonallyslow summerperiod. Initial promotionsproducedvery critical appraisalsof
(e.
their effectiveness g. Dodson etat.,1978;Doob
resultsshoweda 48 per cent IncreaseIn sales
etal., 1969).However, suchresearch was flawed
Volume.
Customer databasesystems:Marks& by a concentrationon price basedpromotions,
Spencer by ignoring the indirect effectsof promotions,
werepioneersIn establishing a cen-
" marketing database throughwhichall and by taking a very narrow view of consumer
We$promotioncampaigns response. More recentresearch into promotions
couldbeman- demonstratesthat:
Rted.Thisallowsthegenerationof effectively
tvleted directmailcampaigns, andthe They can boost a brand's sales. awareness
accurate measurement of eachcampaign's 1; Davies
levelsand Im3ge (Aaker. 199 and
rlzulmTheLISFainroont Hotelchain'scomputer Saunders, 1992).
ntrworkanalyses the habitsof regularbusk
htSstravellers.
Thisensuresthatwherever 0 They are effective In encouraging switching
travellers in
stay,their tastes everything from between brands. product categories and
drinksandnewspapers retailers(Walters. 199 1).
to wake-uptimescan
beanticipated. They canovercomesignificant levelsof brand
0
Customer Information systems:IBM's loyaltytopoach' consumers(McAllisterand
UltimediaTouchActivityCentre(akJoskdis- Torten, 1985).
P13yingtouch-screen drivenproductInforma. Theyare most effectivewhen backed up by
b0m)allowscustomers (Bemmaor and Mouchoux. 199 1).
to viewproducts, advertising
ProductInformation, Trade promotions help to secure Intermedl.
pricesandavailability,
andplacecreditcardorders.DuringIn-store and support, and can help to
arles'enthuslasm
teststhisprovedpopularwith oldercon- buildor reducetradeInventories(Hzrdyý1986).
sumers. wholikedthe convenience, detailof
informationavailable andthesenseof control Recentlytheprejudicesagainstpromotions
Provided.In Industrialmarketscompanies have begun to lessen. A new wisdom is emer-
438 TheMarketingBook

ging wWchviews them not as a 'bolt-on extra, coordinatedsalespromotioncampaigns

but asan essentialand integral (Toop,1992).developed bycompanies
part of the mar-
keting mix, and vital to the processof building IncludingKodak,Mars.Distillers.Fordand
andmanagingsuccessfulbrands.This new wis- AmericanExpress.
dom involvesa belief that: 4 Promotions suit a wide range of mar.
kets. Thestrongholdof salespromotion
Top brands promote. Lookingat the UK reflectsItsFMCGorigins,andpackaged
SalesPromotion ConsultantsAssociation's in
goods particular, but their use has spread
Industryawardwinnersfor 1996,the client throughoutawiderangeof markets.Promo.
list readslike a selectionfrom the 'Who's tionscanbefoundencouraging peopleto
Who'of brandsandIncludesMicrosoft.Cad- open bank accounts(especially students),
bury,St. Ivel, Budweiser,SouthernComfort. donateto charity,testdrivecars.purchase
Brltvic,GoldenWonder, Robinsons sharesor submitpapersto academic confer.
squashes, Dairy Crest, Conoco. Rothmans, ences.
PepsiCo,jacob's,Trebor Bassets,Spillers, 5 Promotions can reinforce brand loy.
BAA andThe DailyTelegraph. alty. Promotions, particularlypricecutting.
2 Promotions aren't necessarily tempor. havebeenblamedfor thegeneralerosionof
ary. Nor are they of purelyshort-term brandloyalty.WhetherIncreasing promotion
value.Airline frequentflyer schemeswere Isa symptomor a causeof erodingbrandloy.
originallyconceivedastemporary,but have is
alty open to debate.What Isoftenover.
goneon to representan industryfixture gen- looked,isthat promotionsalsobuildbrand
eratingat least$6 billion annuallyIn add- loyalty,byprovidingextrabenefitsfor existing
Itionalrevenues(plussalesfrom hotel tie-ins customersandbyencouraging repeat
andother travel-relatedproducts).The Miss purchases throughdevicessuchas'moneyoff
PearsCompetition ran for 6Syears.The nextpurchase' coupons.'oneentryper
effectsof a promotion canalsolingerfar proof-of-purchase' competitions. or cumula.
beyondIts duration.A promotion communi- tive customerloyaltyprogrammes.
catesto all those consumerswho encounter 6 Promotions can strengthen brand pos.
it. not just those who take advantageof It, itioning. A 1985studybyFrankel& Co.and
andcantherefore playan important part In PerceptionResearch Services foundthat,fol-
brandawarenessbuilding.Goodyear'sGer- lowingexposureto advertsfeaturingpromo.
min'Looking for Winners' promotion tionsfor a brand.consumers' opinionof the
Increasedturnover In participatingoutlets by brand(onIssueslikequality,valueandcaring
2Sper cent and boostedgeneralbrand about customers)Improved by over 8 per-
awarenessfrom 12.Sto 30.S per cent (Toop. centagepoints.comparedto thoseexposed
1992). to only'brandsell'adverts.
Promotions have a strategic role. This
complementstheir more traditional tactical McKenna(1990)predicted a renaissance of
capabilities(PeattleandPeattle,1997).One businessbasedon a marriageof the 'soft skills'
symptomof this Is the emergenceof very and creativity of marketing with the power of
large'mega-promotions'supportedby adver- new technology. Many might relate to this in
tisingandpublic relationscampaigns. British terms of advertising, where technologyallows
AJrways'World'sGreatestOffer involved us to view spectacular computer-created images
free flight giveawaysandother promotions which go beyond anything reality has to offer.
with a combinedcost of around 150 million However, it is in salespromotions that many of
In a very high profile campaign.Another the most exciting marriagesof technologyand
symptomIs the emergenceof Intemationally creativity are occuring (Peattie and Peters,
TEXT BOUND INTO

THE SPINE
 *S pl=otjon 439

An examplecomesfrom Hiram Walker logue/magazine which has an annual circula-

fr-tnt SIOmillion on the Cutty SarkVirtual tion figure of over 5 million. Customersget
a two and a half minute virtual reality information relatdd benefits from free hi-fi
qciaxt allowing participants to act as the guides and a free technical helpline. Nervous
VC0.4ysmugglerWiliiam. McCoy, fighting first time buyersare welcomedin with a special
th Ras, Pirates and hostile stowaways to free gift and a promise of additional help, while
W; &t bottlesof CuttySarkashore.Surviving more mature customersare offered additional
II-Mulllife-or-deathexperienceto rescue a benefits through the 'Life Beginsat 40 Club.
Wd isanexperience wl-dchis almostbound to Customersgain security benefitsfrom product
Ircil the participants'relationship with that demonstrations,an extendedwarranty scheme,
W4 Anotherexamplecomesfrom Hewlett- a 50 per cent buy-back option, and (on some
klard's NIOPyfish,a virtual pet which canbe trial facilities. Free in-store refresh-
products)
Ou'r,lo3dedfrom the Internet coupons for free tapes, impromptu con-
and canact as a ments,
1ýýw screensaver. TheHP web sitewill also testsand free lollipops for children alsohelp to
PM'2t Itemsof 'tank' furniture including a enhancethe customer's shopping experience.
IV,' rod4 bubbles
and a thermometer.These Perhapsthemostdistinctive elementof thecom-
6ýcnlYbedownloadedin exchangefor MOPy pany's promotions is the element of 'fun'. This is
01ý1!k andthechiefway of accumulatingthese, reflected an in invitation to bring your pets to
$13 U* YourHP printer to make 'Multiple Ori- listen to your prospectivepurchase,an offer of a
1ý43 Ptintouts'.In exchangefor 3200 free umbrella if you make a purchasewhen its
points you
M Uquire someaphrodisiacfish food the offer of a free box of Johnson's
" which raining, and
Y61OPy, who was developed using over cottonbuds to openup the earsof any customer
I"t Mjllý photographsof a fails hear the difference between Richer's
real parrot fish, who to
*=rle $0affectionatethat it will kisson systems and similarly priced 'mIdi' systems.
ýt L**4. plant a
'4eof themonitor.Quite what Mr Holder Although it would be easyto dismisselements
0*"44in-Ike of MOPY's 'gimn-Licks, they are a
antics is hard to of their promotions as
14,rine, but the general strategy which has
principle of getting crucial part of a marketing
Customout of people by offering them enabled the company (for the last six years) to
A:! benefits foot
-ýI is one that he would record the highest value of salesper square
**; ftizeand approve in the world.
of. of any retailer
It is 2 Pity that in Chapter 16 PeterDoyle illustrated how
marketing academicscon-
-ýý to be so pre-occupiedwith issuesof pro- brand strength can overcome adversity, by
41`40MIprice reduction, the example of Tylenol's recovery
coupon redemption using
t24vireffecton consumerbehaviourand ref- following poisoning incidentsby terroristsand
'11rý Pricing, when marketing brand's subsequentwithdrawal. Another
practice is the
Somuch creativity and diversity into aspect of this story is the role that promo-
Vvwth in salespromotion. The variety of tions can play in the achievementof strategic
that customers,and companies,can objectivessuch as a brand's rehabilitation fol-
-'VýY fyDzn salespromotions is well illustrated lowing disaster.The recoveryof Tylenol was a
I 1ý, * retailingformula of the UK's largesthi-fi testament to the brand's robustness,
remarkable
4ý;tr, RicherSounds.The but it was also considerably aided by the 40
bl,*d company's strategy
on being fiercely price competitive. n-dllion $2.50 coupons issued to reactivate
'; '441Saleitems and a 'price beat' former users.
pledge to
'"4TCUIcompetitorsmeansthat customersare The implications for marketing manage-
ý*'" Short the boom in promotions is becoming
of rational economic benefits ment of
'ýý Richeespromotions.The increasinglyclear;what sales promotion lacks in
4""*fAsof promotionsis communications
*, to it more than
reflectedin their cata- glamour compared advertising,
440 TheMarketingBook

makesup for in flexibility and effectiveness.In on Brand Switching, Journal of Marketing

today's competitive marketplace, the profes- Research, 15(l), 72-81.
sional management of sales promotion has Doob, A. N., Carlsmith,J. M., Freedman,J. L,
becomea matter of life and death for an ever Landauer,T. K. and Solong,T. (1969)Effectof
growing number of brands. Initial Selling Priceon SubsequentSales,jour.
nal of Personalityand SocialPsychology, 2(4),
References 345-350.
Fraser,C. and Hite, R. (1990)Varied Consumer
Aaker,D. A. (1991)Managing
BrandEquity,The Responses to Promotions: A Case for
FreePress. ResponseBasedDecision Making, Journalof
Baker,M. J. (1998)MacmillanDictionaryof Mar- theMarketResearch Society,32(3),349-375.
ketingandAdvertising,3rd edn,Macmillan. Haeckel,S.H. andNolan, R. L (1993)Managing
Bawa, K and Shoemaker,R. W. (1987) The By Wire, Harvard BusinessReview,71(5),
Coupon-Prone Consumer: Some Findings Sept/Oct, 122-32.
Basedon PurchaseBehaviourAcrossProduct Hardy, K. G. (1986)Key SuccessFactorsfor
Classes, JournalofMarketing,51(4),99-100. Manufacturers' Sales Promotions in Pack-
Bernmaor,A. C. and Mouchoux, D. (1991) aged Goods, Journal ofMarketing, 13-23.
50(3),
Measuringthe Short-TermEffect of In-Store Jones,J. P. (1990)The Double Jeopardyof Sales
Promotion and Retail Advertising on Brand Promotion, Harvard BusinessReview,68(5),
Sales: A Factorial Experiment, Journal of 145-152.
MarketingResearch, 28(2),202-214. Lal, R. (1990)Manufacturer Trade Deals and
Blattberg,R.C. and Neslin,S.A. (1990)SalesPro- Retail Price Promotions,Journalof Marketing
motion: Concepts,Methods and Strategies, Research, 27(6),428-44.
Prentice-Hall,EnglewoodCliffs, NJ. Lattin, J. M. and Bucklin, R. E. (1989)Reference
Buttle, F. A. (1990)Marketing Communication Effects of Price and Promotion on Brand
Theory, Review and Critique, in A. Pendle- Choice Behaviour, Journal of Marketing
bury and T. Watkins (eds), RecentDevelop- Research, 26(4),299-310.
mentsin Marketing:MarketingEducators Group Lichtenstein,D. I;L, Neterneyer,R. G. and Bur-
1990Conference Proceedings,Oxford. ton, S. (1990)Distinguishing Coupon Prone-
Chandon,P.(1995)ConsumerResearchon Sales ness From Value Consciousness: An
Promotion: A State-of-the-Art Literature Acquisition-TransactionUtility Theory Per-
Review,Journalof MarketingManagement, 11, spective, Journal ofMarketing, 54(3),54-67.
419-441. McAllister, L. and Totten, J. (1965)Decompos-
Circus,P.J. (1989)SalesPromotionLaw:A Prac- ing the PromotionalBump:Switching,Stock-
ticalGuide,Butterworth LegalPublications. piling and Consumption Increase, paper
Cummins,J.(1989)SalesPromotion: Howto Create presented at ORSA/TIMS 1985 joint Meeting.
and ImplementCampaignsthat Really Work, McKenna, R. (1990)Marketing is Everything,
KoganPage,London. HarvardBusiness Review,68(l), 65-79.
Davidson, J. H. (1975) OffensiveMarketing, Peattie,Y_and Peattie,S. (1993)SalesPromo-
Pelican,London. tions: Playing to Win? Journalof Marketing
Davies,M. and Saunders,J. (1992)The Double Management, 9(3),255-70.
Delight of SalesPromotion,in Whitelocketal. Peattie S. and Peattie, Y, (1994) Promoting
(eds),TheNewEuropeandBeyond,Proceedings Financial Services with Glittering Prizes,
Ofthe 1992MarketingEducatorsGroupConfer- InternationalJournalof BankMarketing,12(6),
ence,Salford,pp. 371-381. 19-29.
Dodson,J. A., Tybout, A. M. and Stemthal, B. Peattie,K., Peattie,S. and Emafo, E. B. (1997)
(1978)Impact of Dealsand Deal Retractions Promotional Competitions as a Strategic
TEXT BOUND INTO

THE SPINE
 iggpfwnvjm 441

UrItting Weapon,JournalofMarketingMan- disciplinein theoveremphasis onshort-term,

SIM-ml,13(8),777-89. price effects, but provides
ý'ý tL and Peters,L. (1997)The Marketing rational-economic
some useful criticism of thedifferentresearch
Y-xin theThird Age of Computing, Market- highlights for future
47,ldagCnceandPlanning,15(3),142-50. traditions and areas
Ntkl%, J.A. (1989)Sales research.
PromotionManagement, Davies,M. and Saunders, J. (1992)TheDouble
F-=tcr-lfall, EnglewoodCliffs, NJ.
Delightof SalesPromotion,in Whitelocketal.
W. A and Shultz, D. E. (1982)Sales (eds), hiarketing in TheNewEurope and Beyond,
FV=1iOnAUnagement, Crain Books,Chicago. Conference, Sal-
ivýý Proceedings of the 1992 MEG
)ýL L and Gaidis, W. C. (1981) ford, 371-381. A of the
6&JviOuralLeamingTheory: Its Relevance pp. neat encapsulation
reasons why sales promotions can and do
20MArketingand Promotions,JournalofMar- in building brand well as
Ltrj, 4.X2),70-78. play a role equity as
k; T. A. (1997)Advertising, boosting sales.
-'P, Promotionand Engel,J.F.,Warshaw,M. R.andKinnear,T. C.
"171!rmenfalAspectsof IntegratedMarketing
,C011"Uný, (1994)PromotionalStrateg)r.Managingthe
afions,DrydenPress. Marketing Communications Process, Sth edn,
kýt4 D. 1- (1987)
Above or Below the Line? Irwin, Homewood, Illinois. Provides an excel-
C'Iroý'%h Of SalesPromotion in the United lent and detailed analysis of the total market-
5"'45, InternationalJournal
of Advertising,6, ing communications process and its place
17-27.
within marketing strategy and the organiza-
L A. (1976) Sales Promotion: Fast Takes integrated
"* tion. a very strategic and
Faulty Management,Harvard Busi- to the between promo-
", 4P4%*kw, approach relationship
54(1),115-124. tions and the other elements of marketing
.,
*-7, A. (1992)European SalesPromotion:Great communications.
Cý'ýNigns in Action,KoganPage.
14UýLR. G. (1991) Peattie,K and Peattie, S. (1993) Sales Promo-
1ýý431`fice Assessing the Impact of tion: Playing To Win? Journal of Marketing
promotionson Product Substitu- Management, 90). Usingpromotionalcompe-
t'A* ComplementaryPurchase,
and Inter- titionsas a focusexplorestheoftenneglected
ýýt Displacement, JournalofMarketing,
-S-Iles
S$2),17-28. possibilitiesthat value adding promotions
for
present marketers in terms of influencing
consumer behaviour and meeting a rangeof
Further reading
marketingobjectives.
Quelch,J.A. (1989)Sales Promotion Management,
(1989)Sales Promotion:HowtoCreate Prentice-Hall, EnglewoodCliffs, NJ. Uses
1"TlementCampaignsthat Really Work, detailed interesting to
some very and cases
4%1A Page,London.A concise
Vidt to dioosing and practical illustrate perspectives on sales promotion
=Lties and using salespromotions theory covering different types of markets
ques, with a useful summary of the and targets. Includes a rarity, a vigorous
.- involved and somehelpful
A`, contact defence of price promotions.
"ý:ftses.Idealquick startertext. Robinson, W. A. Schultz, D. E. (1982) Sales
I r;ý'ION P. and
(1995)ConsumerResearchon Sales Promotion Management, CrainBooks,Chicago.
'r'rc'--r0tiOrv-A State-of-the-Art Literature Althoughnow lookinga little dated,thispro-
10urnalof MarketingManagement, 11, insight into the manage-
41ý-44I. A vides an excellent
superblythoroughand interesting ment and execution of sales promotion.
tt"Ie* Ofthe
evolution of researchinto how Inclines towards a tacticalview of promotions,
t-ý'dI'vhY
promotions can influence con- but showstheir ability to solve(and some-
It reflects the weakness
of the timescause) avarietyof marketingproblems.
442 TheMarketingBook

Shimp, T. A. (1997)Advertising,Promotionand and referencesprovided makesthis a particu-

Supplemental Aspectsof IntegratedMarketing larly helpful book for academics.
Communications, 4th edn, The Dryden Press, Toop, A. (1992)EuropeanSalesPromotion:GrW
Fort Worth. Although salespromotion is still Campaignsin Action, Kogan Page, LondorL
overshadowed by advertising within this Demonstratesthe growing strategic import.
text,it provides goodcoverageof many of the anceof promotionswithIn the marketingmix
important crossover points between sales of leadingmultinational companiesthrougha
promotion and the marketing n-dx,such as seriesof well dissectedcasestudies.Helps to
direct mail and point-of-purchasepromotion. capture the creative excitement and fun
The coverageof consumerbehaviour in rela- involved in top-notchpromotions,and charts
tion to promotions and promotions planning the emergence of the concept of pan.
is excellent.The variety of interesting cases Europeansalespromotions.
 Publicatiou #2

'Sales Promotions: Playing to Win'

journal of MarketingAlaijagement

Vol. 9,3,1993,1)1)255-269.
Jftrnst of AldrkeriqAfamýqemetjf,
1993,9,255-269

Ken Peattieand Sales Promotion-Playing

SuePeattie*
to Win?
Lecturerin Strategic
In recentyears,below-the-line promotionhas begun to shedits
Management, Cardiff "Cinderella"image,andisstartingtoattractthesortofmarket ing
Business School,and budgets andacademic attentionthatwaspreviouslyonlygivento
*SeniorLecturerin mass-media advertising.However, thereis a generalconsensus
Statistics,Universityof that salespromotionis still neithermanagedeffectively,nor
understood thoroughly to
whencompared more high-profile
above-
GlamorganBusiness the-linepromotion.Improvingtheunderstanding anduseof sales
School,UK promotionwill requireacademics to analyse
andpractitioners and
understand eachof theve?y below-the-line
different techniquesand
their individualmerits.Thisarticleis oneof two whichf4kesa
detailedlookat theuseof salespromotioncompetitions.

Introduction
The1980swere the competitive decade,when valuesof competitivenessand com-
petitionwereespousedin businessand societyas never before.Within marketing,
competitionsas a sales promotion tool gained an increasingly high profile and
appearedin markets where below-the-line promotions were supposed to be
beyond-the-pale. As salespromotions boomedin practice,they becamean increas-
ing focusof acaden-dc interest and research,but salespromotion competitionshave
remainedSomethingof a mystery. To datethey haveusually beenlumped together
"lith other below-the-line techniques with which they have relatively fittle in
cOmmon.
The authors have developed their personalinterest in salespromotion compe-
fitiOnS(unfortunatelyconnectedwith entering rather than winning) into research-
ing their use in marketing. The researchproject has evolved in three stages.It
beganwith a literature search three year survey of over 2,600 competitions.
and a
'ThiSarticle is the first of two resulting from this initial stage. It examines the
growth in competitionuse, and attemptsto develop a framework to analysetheir
future and their potential to influence consumerbehaviour.The follow-up article
Presentsthe detafledsurvey results to analysethe use of competitionsin practice,
andto developsomeguidelinessuggestinghow competitionscan be designedand
managedeffectively.
Stagetwo (currently follows identified as competition
underway) up companies
usersin the survey,to find out why and how they chose,developedand evaluated
their competitions.The final stagewill study the responseof customersto compe-
titions, to seeif their response
matchesthe marketers'expectations.
Although "push" competitions aimed at salesforcesor channels are common in
many industries, the focus of the research are those aimed at "pulling" demand
from consumers. The (not just local)
survey only included national or regional
cOmpetitions, which were associated with a product or service (and not part or all

C4ffrsPOndenceshouldbe to: Kenreattie,Cardiff School,

Business Buildin&
Abtrconway
COlum addressed
Drive,CardiffCF13EU,UK.
027-2Y7X/91'030255+15
$08-00/0 (C)1993Academic PressLimited
256 Ken Peattic and Sue Peattie

of the product or serviceitself, as is the casewith the football pools, or regular

magazinecompetitions).

The Growth of Sales Promotions

Below-the-linegrowth during the 1980swas startling. For much of the decade
Promotionalexpenditure grew almost twice as fast as advertising expenditure
(Shultz1987;Keon and Bayer 1986);and in 1984it accountedfor SSO billion in the
US alone,compared to $48billion spent on advertising (Rheaand Massey1986).
Salespromotions began to swallow up to 70% of the marketing communications
budgetsof many large companies(Shultz 1987);and by the end of the decade
globalexpenditure on promotions had equalled media ad spend, accounting for
39%of total marketing expenditure,accordingto the WPPGroup (Fr 1989).Several
factorshaveencouragedmarketersto make greateruseof salespromotions(Shultz
1987,Strang1976;Dickson and Sawyer 1990;Quelch 1983;Addison 1988).
1. Risingpricesandadvertising"clutter"-eroding advertising'scost effectivenessas
consumersbecomeincreasinglydesensitizedto massmedia advertising.
2. S41espromotionsbecoming"respectable"-through increasing use by market
leadersand increasingprofesionalismamongWes promotion agencies.
3. Increased impulsepurchasing-retaHersare responding to greaterimpulse buying
and value seekingamong consumersby pushing manufacturersinto more, and
moreeffective,salespromotions.
4. Shorteningtimehorizons-increasing rivalry and acceleratingproduct life cycles
makethe fast salesboost that promotions are perceivedto offer, attractive.
5. Micro-marketing approaches-as a response to fragmenting markets, where sales
.
promotionscan provide more tailored and targetedcommunicationthan mass
media.
6. A "snowball"effectin somemarkets-Lal (1990)suggests that practitioners in
marketswhere promotionsare commonplaceare virtually obligedto follow suit,
or risk losing market share and competitive position. The work of Fader and
McAlister (quoted in Lattin and Bucklin 1989)suggeststhat the proliferating
promotionsin many marketstrain consumersto buy promoted goods.
7. W4nageability--the other n-dx elements can appear relatively unwieldy as
competitive weapons. Developing new products is lengthy, costly and risky.
7he stakesare often too high to permit experimentation,and successdepends
heavily on the input of other functions. Changing pricing structures can be
in
costly administrative and systems management terms (and can drag mar-
keters into awkward political territory with financial management).Channel
changescan be difficult to achievefrequently or quickly.
S. Measurability-assessingthe impact of salespromotion can be problematic,but
authors such as Doyle and Saunders(1985)and Moriarty (19S5)have proved
that, with care, it can be done with someprecision.The problemsof measure-
ment are fewer than for advertising (Shultz 1987),and the use of POSscanner
Information provides greaterscopefor future assessment.

The Great Sales Promotion Debate

Despite their importance in have not received the level
practice, sales promotions
of academicinterest inspired by advertising (Keon and Bayer 1986).Although there
 SalesPromotion-Playing to Win? 257

h3sbeena recent upsurge in

academic interest, the results have been inconclusive.
Most researchers agree about
promotions' effectiveness in boosting short term
$Aes,but a debate rages about their long term effects. It has been observed that
repeat purchase probabilities for a brand after a promotional purchase are lower
than after a non-promotional purchase (Shoemaker and Shoaf 1977;Guadagni and
Uttle 1983;Jones and Zufryden 1981). Reasons
suggested for this include the
following.

I. A promotion is an "external" stimulus which, once removed, won't create

repeatpurchases(Dodsonet al. 1978;Bawaand Shoemaker1987).
2. Consumers'price expectations(or reference price) will be lowered by pro-
motionalpricing and they will resentpaying post-promotional"normal" prices
Wonroe 1973;Winer 1986;Kalwani et al. 1990).
3. Promotions"use up" the low probability purchasers, whose failure to re-
purchaseafter the promotion will depress the observedrepeat purchaserate
(Neslinand Shoemaker1989).
4. Promotionalpricing will lower a brand's evaluationbecausepeopleuseprice as
a surrogatemeasureof quality (Dodsonet al. 1978).Doob et al. (1969)suggest
that consumersreason that "I paid a lot for this brand, therefore I must really
like it"; so lowering the price may devalue the brand in consumers'eyes.
5. Regularpurchasersstockpfleduring then buy less afterwards
promotions and
(Frankand Massey1971).
Other researchersconcludethat if consumersare satisfiedby a promotedbrand,
then they will be more likely to repurchasein future (Cotton and Babb 1978;
Rothschildand Gaidis 1981).There is that price promotions don't
also evidence
lowerconsumer brand (Davis et at. 1992) and that they don't
perceptionof quality
alterthe long term salestrends for establishedbrands(Peckham1973;Brown 1974).
Another debateconcernswhether promotions encourageconsumersto switch
betweenbrands, or to their timing decisions. Moriarty
simply change purchase
(1965)found promotions to havelittle effectbetweencompetitorbrands,and Doyle
and Saunders(1985)found that sometimesconsumerssimply retime purchase
decisionswhen pre-warned future
-of promotions.
The lackof consensusamongresearchersinto the effect of promotions Is not the
Ordyproblem which the practitioner, academicor student faces when trying to
It-Amfrom the establishedliterature. There further complicating factors in
are
trying to apply the lessonslearnt.
An over-relianceon price. The so far is heavily biased towards
research conducted
price-based promotions. Such promotions assume that consumers are price
averse or value seeking (Tellis and Gaeth 1990) and are price aware. In fact
customerscan often be to some extent price seeking, because of the use of price
Asa surrogate measure for quality (Tellis and Gaeth 1990). Dickson and Sawyer
(1990)found that consumers hazy about the price details
are often surprisingly
of their purchases.
Productvariations.Most relates to only one or two types of
promotions research
Product. The response to promotions has been shown to vary according to the
product's stage in its life cycle (Peckham 1973)and its familiarity (Cotton and
Babb 1978). So the effectiveness of a promotion for one product type will not
guarantee its successfor others.
258 Ken PeaWe and Sue PeaWe

3. Consumervariations.The responseto promotions varies accordingto the con-

sumer's level of product information (Tellis and Gaeth 1990),and their expec-
tations of promotion frequency and attractiveness(Lattin and Bucklin 1989;
Krishna et al. 1991).Numerous reports from marketing agenciessuggest that
responsesto different types of promotion also vary accordingto consumersage
and ethnic origin.
4. Sideeffects.Promotion may bring about changesother than the conventional
aimsof encouragingconsumertrial, brand switching or stockpiling. Promotions
may raise product awarenessamong consumersregardlessof short-term pur-
chasingpatterns (Lattin and Bucklin 1989);they may lead to storesubstitutions
aswell as brand or product substitutions(Kumar and Leone1988;Walters1991);
and they may stimulate salesof complementaryproducts (Bermanand Evans
1989;Walters1991).
5. Crosspromotionaleffects.A promotion may be affected by complementarytrade
promotions;by linkages with advertising and by the presenceof simultaneous
competitorpromotions.

"Unbundling" the Sales Promotions Toolkit

Historically the marketing literature has bundled sales promotions together in a

balanced"above-and-below-the-line"equation. This approach bundles together
promotional tools which are very different in their nature, usesand benefits. The
debateover the effectivenessof salespromotions may partly result from the fact
that researchersare analysing subtly different forms of promotion. In particular,
the literature, which has mostly focused on pricc-based, value-increasingpro-
motions, may not be applicableto value-addingpromotions such as competitions
or giveaways.Diamond and Campbell (1990)found that consumersin different
marketsegmentsvary in terms of preferring price or non-price basedpromotions
(particularlyin relation to socialclass).
The growing importance of promotions has reacheda point where eachtool in
the below-the-line toolkit must surely deserve its own distinct literature. This
to
-articleaims consolidateand contribute to the embryonic body of knowledge on
Competitions,whose development to date has been somewhat fragmented and
biasedtowards US practitioner-orientatedpublications.

Sales Promotion Competitions

Competitionsarebecoming increasinglyimportant and sophisticatedweaponin
an
the marketer'sarmoury. In the UK they are the secondfavourite promotional tool
after price promotions (Skuce1990).In the US, Donnelley Marketing's 1991Survey
of Promotional Practiseshowed that although coupons were still the favourite
Promotion(with 95% of marketersplanning to use them in the next year); sweep-
stakes(planned by 68%) and other competitions(31%) were also popular (media
advertising had reached a new low, accounting for only 30.6% of promotional
spend),
Our threeyear sampleof 2,646competitionsincluded over 750,000prizes, worth
someE47-7million. This representsan enormous investment simply in terms of
 SalesPromotion-Playing to Win? 259

prizes,and doesn't include the costs of designing, delivering and administering

the competitions themselves. The increasing visibility of competitions in the
marketplacepartly relates to their proliferation; partly to the size of prizes now
beingoffered(British Airways "'World's GreatestOffer" featuredE6mworth of free
flights);and partly to their use in high-profile battlesbetweenmarket leaders,such
as Pepsiand Coca-Colaslugging it out with heavily advertised instant win con-
tests.

The Consumer as a Competitor

Pricebased promotions deliver perceived increasedvalue for the customer by
manipulatingthe price/quantity equation. The popularity of such promotions has
encouragedan over-emphasison the rational economicdimensions of consumer
responseto promotions, and an oversimplification of the concept of consumers'
""valueconsciousness".
Competitions promote a product without tampering with the price/quantity
value equation, and instead add value by making purchase or awarenessof a
producta "ficket" to entering a competition. This has severaladvantages.
L Pric4e stability-avoiding some of the headachesassociatedwith administering
temporaryprice changes,and the havoc they can wreak on budgetsand fore-
casts.
2- PrWSSstability-adding value without changing the core product's quantity or
quality, sidestepspotential problemswith packagingand processing. ,
3. Rtfcre'nce price stability-important if Dodson et al. (1978)are correct in their
assertionthat "media distributed coupons and money-off deals will result in
significantlyreducedloyalty once thesedealsare retracted".
4. Quality inne ?naintenance-al, lowing market-leading brands to be promoted
without the risk of promotional pricing being interpreted as a move down-
market.
5. Appropriateness, in channels,marketsor cultureswhere price promotions may
not be acceptable.In Japanredeemingcouponsat the point of saleis thought to
be embarrassing.Competitions have becomethe top promotional tool in this
major market. Charities are frequent users of competitions since price pro-
motionsare inappropriate.
In the researchconducted on consumerswho respond to special prices and
coupons,there are two basisof response,"value consciousness"(definedby Mon-
roe(1973)as the ratio of quality to price, but perhapsbetter consideredas a ratio of
Erice to utility) or "deal or coupon proneness" (Lichtenstein et at. 1990). If
40coupon-prone" consumersexist, the existenceof "co;npetition prone" or com-
Pelitiveconsumersseemslogicalenough;and this logic was proven by the findings
of Diamondand Campbell(1990).
0
A 1986Harris/MarketingWeekpoll revealedthat 70% of the UK population had
entereda competition linked to a product or service, wilE over a third entering
within the previous month (Cummins 1989).American consumersappear to be
evenmore competition crazy. A survey of 1500 US householdsby Premium Incen-
tive Businessand Better Homes and Gardens(PIBBHG1989)found that 81% of
consumerswere inclined to participatein competitionsand that 21% had entered
260 Ken Peattleand Sue Peattic

10or more in the past year. A similar study in 1988by Frankel and Co. found that
37% of consumershad entered some form of competition in the last 30 days
(comparedto 8% who had taken advantageof a reduced price promotion).

Competitive Consumer Behaviour

Definingconsumersas either competitionprone or not rather missesthe subtleties
of the appealof competitions. It is possibleto define six types of consumerwhich
appearto makeintuitive sensein relation to competitions.
I. Non-Competitors-whoconsider competitions a waste of time, stamps or tele-
phone units. They would deliberately not enter a competition to which they
wereentitled through their habitual purchases.
2. PassiveCompetitors-who would enter a competition which they qualified for
through their habitual purchases,but who wouldn't change their purchasing
patternsto enter.
3. Br4nd-Switchers-whowould buy a particular brand (perhapsabandoningusual
brand loyalty) to enter an attractivecompetition. Brand switching is a proven
and significantphenomenonin many consumermarkets(Kuehn 1962;Morrison
1966;Bass1974;Vicassirnand Jain 1991).
4. ProductSwitchers-who, for example,in order to enter a competition might buy
and consumea type of food or drink which was not on their shopping list in
placeof one that was. Such "category in to
switching" response promotions has
been observed(Cotton and Babb 1978;Moriarty 1985)but has received less
attention from practitioners and academicsthan brand-switching. This may
reflecta tendencyto concentrateon direct rather than indirect competitors.
S. HOarders-whowill alter their buying behaviour between brands and product
types,and will also alter the timing of their purchasesto Increasetheir chances
of winning a given competition. The effect of promotions on interpurchase
times has been the subject of someacademicstudy (Neslin et al. 1985;Gupta
1988).However, thesetend to assumethat usageratesof a product, and there-
fore purchaseintervals, are demand driven. There is an argument that usage
may be partly supply driven, and that a consumermay tend to use more of a
(e.
Product of which they have plenty g. the more milk there is in fridge, the
more one of the authors will drink).
6. D09Fooders-whowill buy almostanything to enter a competition (regardlessof
the coreproduct'sutility). Purchasesare madeon the basisthat they will "come
in useful one day" or "will makea nice present for. ". Low value purchases
..
may evenbe written off as part of the cost of entry. Suchbehaviour may sound
unlikely, but it certainly existsamongthe small but growing number of hobbyist
competitors.Many of these buy any product plastered with the word "Win"
(including bagsof Winalot-hence their name). At a more mundane level, the
authors have met numerous quite normal people who purchased The Daily
Mail, simply to enter British Airways' "World's GreaiýstOffer".
This classificationcoversa rangeof attitudes towards competitionsfrom indiffer-
ence to near obsession.Some observationscan be made about such a segmen-
tation.
 SalesPromotion-Playing to Win? 261

I. The categorizationapplies to consumersin

relation to a specificcompetition.
Individual consumerswill move between these categoriesaccording to how
attractive they find any competition. An avid competitor facedwith a compe-
tition which they perceiveas difficult, costly and for a prize they already own,
may behave as a non-competitor. A staunch non-competitor might break a
lifetime's habit if they saw a competition offering their heart's desireas a prize.
So although individuals may tend towards one classification,they may change
in relation to different competitions.
2. The classification(and its use in Figure 2) implies that increasingthe amount
that consumersbuy is a more profound changethan persuadingthem to switch
Productsor brands. Academically there is evidencefor and against this prop-
osition. In practice it isn't easy to generalizebecausethe opportunity to alter
brand choiceand purchasetin-dngdecisionswill depend on brand loyalty, shelf
life, costand bulk of a given product. For a product where retiming purchasesis
easy and brand loyalty is high it would be more sensibleto add an "Active
Competitor" who will remain brand loyal but would buy more of a product to
enter a competition.
3. Moving down the typology there is
an increasing amount of self-persuasion
being applied by the competitor to overcomebarriers to changing their con-
sumption behaviour, such as brand loyalty or economicrationality. As well as
economicand psychological barriers to entering competitions, there can be
physicalbarriers.To enter all phasesof the recent"Hovis-Slice of Life" compe-
tition would requirethe purchaseof at least12loavesof breadin a short spaceof
time. Any competitorwithout a largefreezeror a rugby teamto feedmight have
found this difficult.
4. Although the categoriesimply substitutions from a written shopping list, this
won't necessarilybe so. Many competitions arc clearly aimed at generating
impulsepurchases.So, although the term "shopping list" is usedfor simplicity,
"'the set of the consumer'shabitual, occasionalor planned purchases"would be
more accurate.

Changing Customer Beliaviour Througli Competitions

Having defined consumersin terms their attitude to a competition, we can also
of
derinethem in relation to their involvement with a given brand.
I. Non*users-who do not use the product or its direct or indirect competitors.
Theseare often the principal target of promotions(Keon and Bayer1986).
2- POlentialusers-who do the any directly competing brands,
not use product or
but who use indirect competitorsand who could be persuadedto buy (perhaps
on Impulse)through manipulation of the marketing mix.
3. Rival 10yals-McAllister Totten (1985)and Grover and Srinivasan (1992)
and
show that successfulpromotions can attract substantial numbers of a rival's
otherwiseloyal customers.
4. Brand switchers-Grover Srinivasan (1992) found evidence of distinct
and
*IF
switcher" market segmentswhose consumershop betweenthe various com-
peting brands.
S. OU'll loy4ls-within loyal loyal segments, we can distinguish
own and rival
262 Ken Peattie and SuePeattic

betweenlong-term, brand loyal consumersand those who are "last purchase

loyal" (Kahn and Louie 1990).These tend to be repeat purchasersuntil some-
thing encouragesthem to realign their loyalties.
Crossreferencingthe consumer'scompetitivenessagainst their brand involve-
ment producesa picture of the opportunities presentedby salespromotion compe-
titions (Figure 1). The model presented in Figure 2 shows the possibilities for
convertinga consumer'sbrand involvement through a competition.
12OMPETI TOR
TYPE
.

DOG
FOODER C
0 CONSOL-
HOARDER N
ACTIVATE v IDArE
E
PRODUCT R
SWITCHER r
BRAND
SWITCHER REVARD
PASSIVE
IGNORE
NON
COMPETITOR

RIVAL BRAND OWN

NON INDIRECT LOYAL
USER COMPETITOR LOYAL SWITCHER
USER
CZONSUMER TYP
Figure I. Options for targeting competitions.

Thesemodelsimply that there are two key targetsfor a competition. A compe-

tition cangeneratenew users,and (providing that somecanbe convertedInto loyal
customers)this will provide long term benefits of increased turnover and an
expandedmarket. Suchopportunities exist becausethe tendency to repurchasea
Promotedbrand which provessatisfactory,is particularly strong amongthosewho
were previously non-users(Cotton and Babb1978;Rothschild and Gaidis 1981).
The other target is increasedusageamong loyal or occasional(brand switching)
purchasers.This will produce more of the short-term tacticalsalesuplift tradition-
ally associatedwith promotions. There may be greaterconsumerresistanceto the
promotional messagefrom non-users, and so the persua;ivenessof the compe-
tition (and probably the cost)will need to be greaterthdft*forboostingsalesamong
loyal or occasionalpurchasers.
The potential of competitionsto createsuchchangesin consumerbehaviourcan
be shown by the results of a Neilsen Promotion Service survey in Canada.This
found that 55% of competition entrants choosebrands specificallyto enter a com-
 Saks Promotion-Playing to Win? 263

HI
Strategic Benefits

REM IN' A AN
D
WHOOPSI ENCOURAOE
EXISrING
iIrXIS7.1 'a
1)
U
)S EJR9489
4A,
-W, 4
NON PRODUCT',,ý `RI'VAL-, oe '' BRAND OýVN
USER'-' SWITCHER LOiWL" SWITCHER LOYAL

CONVERTPO. NN..
SSI LE
POSSIBLE -
USERS

G ENýýTE
ERAT
N.%- NEW USERS
-,00,

Hi
Persuaslon Costs
I-tgureZ The roles ofpromotion in converting consumers.

Pe6tion,of which 95% bought the brand again after the competition; while 27%
hadswitched
product types specificallyto enter a competition.

The Attraction of Competitions

Why do competitions
attract consumers?The glib answer is that the chanceof
9ttfing something for nothing is always attractive. Selby and Beranek (1981)
considertheir attractivenessas a function of the entry cost (including stationery
andtime); the valueof prizes;the number of prizesand the perceivedprobability of
%linning.They concludethat economicrationality should dictate that risk averseor
tilk neutral consumers(seeFriedman and Savage1952)will avoid competitions,
k"ping entry levelslow. They large
conclude that the number of entrantssuggests
týut in practisepeople don't in a spirit of economicration-
"', and that their approach competitions
utility is related to the pleasuresof gambling and the occu-
FationOf leisure time. This is further backed up by another Premium Incentive
8usiness
surveywhich showed that 60%of competitorsentered"just for the fun of
ir and 61%
of entrants into competitionswere found to be "unsure of what the
Flizes
Selby
offered were" (PIB 1986).
and Beranek'sideascan be extendedin four key ways.
RePl4ring themonetaryvalueof prizes-with the lessconvenientbut more mean-
InSful conceptof their
utility to the entrant. Someprizes are desirablebecause
they are "priceless" (a date with a "Star" has becomean Increasingly
popular
264 Ken Peattie and Sue Peattie

prize in the US, increasingthreefold in use over the last rive years);or they are
exactlynot what the competitor would purchaseif they had the money. The
PlBBHGsurvey found that consumers preferred travel rather than cash as a
prize. Wining a luxurious ""wasteof money" has the attraction of indulgence
without any associatedguilt or dilemmas of choice.
2. Addinga skill factor-Selby and Beranekconcentrateon skill-free sweepstakes
where a competitor's perceived chanceof winning reflects their assumptions
concerningthe likely number of correct entries, and their own chanceof being
correct.Somecompetitorswelcome the "fair" nature of sweepstakes,whereas
moreconfident competitorsmight prefer skill basedcompetitionsbelieving that
their chancesof winning are increased.
3. Addingthe satisfaction of the to
urge compete-to the list of attractions. Competi-
tivenessis a natural instinct which varies in its strength between individuals.
Cassidyand Lynn (1988)seethe desire to competeagainstothersor "against the
clock" as forming two of the six key componentsin our motivation to achieve.
4. Considering credibility.The odds of getting a consumer to respond to a compe-
tition is directly related to their view of its credibiity (PlB 19S6).Sponsorsnow
often try and boost a competition's credibility by announcing that the winners
will be chosenby a Justiceof the Peace.

Benefits of Competitions as a Sales Promotion Tool

Competitionsoffer a wide range of potential benefits and opportunities for their
sponsors.

I. Temporary salesuplifts-can be generatedby getting Brand-switchers,Product-

switchers;and Dog-foodersto purchase.The contribution of already brand-
loyal Hoarders will be negated by a later loss of business.Some of those
switching brands to enter a competition may stay loyal once the competition
hasended (or at leastuntil a competitor runs a competition). Competitionscan
be especiallyuseful in terms of generatingtrial of new products.
2. Demandsmooth ing-particu larly useful for products where promotional offers
of the "15% extra free" type aren't feasible(such as pints of draught lager
during winter).
3. MarketresearchImailing Thereis an inherent logic that suggests
list opportunities.
that if customerswant to win your product, they may also be willing to buy it.
Offering your product asa prize can help to generateproduct awarenessand to
track down potential customers.This is common among products which arc
large, infrequent, glamorouspurchasessuchas cars and holidays. British Air-
ways' "'World's GreatestOffer" ticket draw was used to createa databaseof
entrants for future promotions. Questionswithin competitionscan be used to
researchconsumerattitudes and tastes.However,.there is always the danger
that the answersprovided will reflect what the competitor thinks the sponsor
wants to hear, not what the consumerreally thinks.
4. Ideageneration.Cadburysrecently ran a competition requiring the submission
of a recipe using cocoa. Their next promotion was, not surprisingly, a
giveaway booklet of cocoarecipes.The widespreaduse of slogansin compc-
 SalesPromotion-Pla), ing to Win? 265

titions might suggestthat they would be a valuablesourceof "hooklines" for

advertisingcampaigns.However, the rigid format usedand the poor quality of
publishedwinning sloganssuggeststhat they poselittle in the way of a threat
to the jobs of advertising agencycopywriters.
5. Packagingrevamps.Eye-catchingcompetition packs can add sparkle to the
imageof brandswhose familiarity may be a strength, but may allow them to be
takenfor granted. Rowntree'sran a seriesof competitionsfor Kit-Kat allowing
a familiar product to have a new high-impact wrapper while retaining the
original distinctive brand strength. During one twelve month period there was
only two months in which it was possibleto buy a non-competitionflashedKit-
Kat.
6. Advertisingcampaigns link-ups.Promotionssuchas the Golden Wonder Win and
Island or the Kit-Kat Tjaerborg Holiday competitions both featured spin-off
nationalad campaignsusing TV, newspapersand posters.
7. Point-of-sale In
opportunities. an agewhere a supermarket may carry over 35,000
different product lines, catching the consumer's eye with POS displays is
increasinglyvital. In-store competitions can be a basis for differentiation be-
tween retailers. Tesco has led the way, at one point sponsoring some 26
concurrentin-store promotional competitions.Gateway,Asda and Bejamhave
alsousedcompetitionsasa key elementof their promotional magazines.These
help to encourageconsumersto collectand read the magazinesallowing them
to fulfil their promotional task of communicatingand influencing'or
S. Publicrelationsopportunities. PRcanbe generatedfrom prizegiving from links
to charitabledonations, where a certain amount being donated per entry, as
1 with the Andrex ElefriendsAppeal Competition.
9. Reduce theeffectiveness
of a rival'ssalespromotion. "Me too" competitions may fail
to be effectiveif the competitive consumersare already stocked up with the
brand first off the mark.
10. Messagereinforcement. This can be done by making the content focus on the
benefitsof the product by ranking them or matching them to the advertising
ik
I theme. Quaker's Crunchy Bars linked into the squirrel motif of their advertis-
ing and packagingby running a spot-the-balltype competition, reworked as
"'Spot the Squirrels". Alternatively, the Post Office developed competitions
aimed to stimulateawarenessabout postcodeswhich required correctuseof a
postcodeto qualify for entry.
Thesecharacteristicspaint a picture of competitionsas a marketing tool able to
performa wide variety of tasks,and able to act asan integrating mechanismfor an
entire marketingcampaign.A good exampleof a well designedcompetition which
Achievedsuch integration came from Vauxhall- It involved a direct mailshot to
consumerscombining product information and advertisingcopy with the compe-
tition details.Consumerswere given the specificationsof eachVauxhallcar model,
-alongwith a lifestyle descriptionof six different couples.Entering the competition
forcedentrantsto
consider what the attributes of eachcar were, and which would
bestfit their lifestyle. The to "I'm smitten by Vauxhall
sort of slogan completewas
Ors because ". This reinforced the advertising campaign, while prompting
.. .
cOnsumers to considerthe appealof Vauxhall carsgenerally.Submitting the entry
Involved visiting the dealer, for potential cus-
nearest providing opportunities
tD:ners to meetthe products and the salespeople.This shows the way that compc-
266 Ken Peattie and Sue Peattie

titions can form a key element of a sophisticated and interactive marketing

campaign,which informs and persuadescustomersby "involving" them with the
product and the promotional message.

The Risks of Competitions

Beforethis article becomestoo euphoric about competitions, its worth considering
what cango wrong. Practitioner-orientatedjournals are littered with horror stories
of mismanagedcompetitions. Pitfalls include the following.

I. Poorresponse. Time Life's "Library of Nations" competition receivedtwo entries,

one late and one incorrect. Here the cost of entry in terms of buying a book,
finding the answer to six questions and completing a tiebreak overcamethe
attactionsof potentially winning a weekendin Amsterdam.
2. Timescale mismatches. Somecompetitionshave a long gap betweencompetition
launch and closing date, but a relatively short window of opportunity to pur-
chasespecial promotional packs. Only having the chanceto buy three special
packswhen four are needed(ashappenedto the authors in the Windmill Bread
Holiday BreakCompetition) causesfrustration and does nothing for a brand's
image.
3. Entrapment.Competitions which try and dupe unsuspectingcompetitive con-
sumers into further purchaseswill risk disaffecting non-hoarding consumers.
The "Further purchasesrequired" smallprint on many grocerycompetitions is
becominginfamous within the "comping" fraternity.
4. Bi9 prizellongoddscompetitions. Somecompetitionsfeaturebig prizesbut odds so
long that any numerate consumeris unlikely to be attracted. A good example
was Duracell's "Win a Million Pounds" competition which featured odds
againstwinning of 1.3million billion to 1. This prompts the questionof whether
it contravenesthe ISP code of conduct on salespromotions which statesthat
promotions should be "so designedand conductedas not to causeavoidable
disappointment".
5. Mechanicalerrors.The printing and security of instant win cards must be care-
fully managedto avoid the experienceof Essowhose "Noughts and Crosses"
gameproduced twenty claims for the first prize of E100,000 when only a couple
should have existed. Such risks have led to a specialistsales promotions in-
suranceindustry, pioneeredby Promise(a division of Brokersjewit Duchesne)
who cover the risk of coupon redemptionsor prize distribution above expec-
tations.
6. Associatingthe productwith losing. Most competitions have more losers than
winners, and there is always the risk of the product being associatedwith a
failure to win on the part of the consumer.RowntreeMackintosh's"Spell and
Win" competition required consumersto collectletters to spell and win various
prizes. Eachprize name obviously had one letter equivalent to a Penny Black,
and the avid chocolatebar eaterwould soonfind that eachunwrapping of a bar
was associatedwith disappointment as yet another duplicate letter turns up.
Many companiesappear to be trying to avoid disappointment by awarding a
tnoney-off-next-purchase voucher to all entrants.
 SalesPromotion-Playing to Win? 267

Conclusions
Irith market leaderslike Heinz relying increasingly on promotions, and compe-
titions;in particular, traditional prejudices such as "'Advertising is for winners,
salespromotion is for losers" and "Promotions are only good for tactical sales
Uplifts" look increasinglyweak. Promotionsworth E3million played a key role in
Neirtz'scentenarycelebrations(Gerrie 1986).The company has run a competition
givingaway six figures in prizes for the last five years.Thesewere backedup by a
sophisticatedmonitoring system using feedback-scratchcards, to analyse the
effectsof behaviourand buying patternsamongparticipants.With 60%of a sample
Of30,000participantsto three competitionsreturning cards,Heinz havebuilt up an
accuratepicture of the effect that salespromotion competitionscanhave, and their
effectivenesswhen used through different grocery chains. Such a sophisticated
approachto competitionsis somethingthat most other companiescan only aspire
to. Hopefully further researchinto the effectivenessof competitionswill provide
practitionerswith a firmer base of knowledge on which to base their plans for
futurepromotionalcompetitions.

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 Publication 03

'Sales promotion competitions: a survey'

Journal of Marketing Management

Vol. 9,3,1993,1)1)271-286.
 of MarketingManagement,
1993,9.271-286

SuePeattieand Sales Promotion

Ken Peattic* Competitions-A Survey
SeniorLecturerin
Thisarticleis thesecond of two examining the growing importance
Statistics,Universityof as a salespromotion
and uniquecharacteristics of competitions
ClantorganBusiness tool. Whilethefirst articlearguedthe necessity of developinga
School,and *Lecturerin separate bodyof knowledgefor eachspecificsalespromotiontech-
this articleaims to contributeto an understandingof the
StrategicManagement, nique,
way salespromotioncompetitions are used,throughthe results
CardiffBusinessSchool, andimplications ofa survey.
UK

Introduction
A walk down a supermarketaislepresentsany sharp-eyedshopper with an almost
unparalleledopportunity to win a new car, the holiday of their dreamsor a cash
lur; p sum capableof providing both and more besides.Simply by choosingpar-
ticularbrands, the weekly shopping trip can becomethe first step in a potentially
lucrativeand entertainingtreasurehunt. This hunt for treasuredoesn't require the
abandonmentof premium brands in favour of highly promoted but humbler fare.
Thelastquarterof 1992witnesseda rash of in-store instant win competitionsfrom
top brands such as 7-Up, St Ivel Gold, Carling Black Label, Tetley Tea, Heinz
Ketchup,GoldenWonder, DuracellAnd Ski Yoghurts, to namebut a few.
DeSpitethe prevalenceand obvious cost of salespromotion competitions,they
have receivedrelatively little from marketing compared
acaden-dcs, to
attention
otherpromotionaltools. This article tries to redressthis somewhat,by presenting
the resultsof a survey analysing the use of promotional competitions.

The Survey
The authors gathereddetafls on 2,646different UK salespromotion competitions
over a three-yearperiod by using a nationwide network of fellow "hobbyist com-
petitors" as information gatherers. Special packs, entry forms and competition
rulesall provided information about thesecompetitions,which was encodedand
thenanalysedusing Minitab. The sampleconsistedonly of competitionsavailable
On-3nationalor regionalbasis(localoneswere discounted)and which were associ-
ated with a product or service,as opposed to being all or part of the product or
serviceitself (solotteries or the numerouscompetitionswhich are regularfeatures
Ofmagazinesweren't included).
Studyingcompetitionsin isolation from their sponsorsand their targetaudience
WiM dearly Wctiveness.However, a
not provide a total picture of their usageand e!
dearerunderstanding the themselves does provide a useful start-
of competitions
Correspondence be Ken reattie, Cardiff BusinessSchool, Aberconway Building,
should addressed to:
COlumDrive, Cardiff CR 3EU, UK.
M67-257X/93/030271+16
$08,00/0 Q 1993Acaden-dcPressUn-dted
272 SuePeaWe and Ken Peattle

Ing point to help understand their use in practice. Hopefully the survey data will
provide a firmer basis for future research,by answering someof the fundamental
questionsabout competitions' role as a salespromotion tool.

Who SponsorsCompetitions?
Thereare very few types of organizationsthat don't use competitions.In addition
to the obvioussponsorsamongFMCG firms or supermarkets,the samplerevealed
competitionsbeing run by water companies,charities, estateagents, banks and
even solicitors.Within the total sample,57% of competitionsare run by only one
sponsor, with the remaining 43% involving usually two (but very occasionally
three)sponsors.How the samplewas divided between different types of sponsors
(in genericmarket terms) is shown in Table I.
Table 1. Competitions survey
results summary
Awrage
Amrage pri:e tvlue
Sponsor No. of Comps % of Comps prizeno. (Owls) Mkt integration
Mager 1,232 46.6% 20 2-64 Nled
Packaged f 929 35-1% so 3-98 Med
Consumergoods 517 19.5% 11 3-5 Med
GroceryItems 344 13.0% 14 3-0 Med
DTink 319 12.1% 11 3-0 Med
Services 188 7.11% 20 5-0 Low
Publications 118 4.5% 7 2-0 Low
Tobacco 39 1-5% 15 5.0 Low
UNte goods 32 1-2% 20 5-9 High
Charities 25 1.0% 15 1.0 Low
Generic 24 0.9% 11 2-3 High
Cars 14 0.5% 11 10.4 High
Notes
L GroceriesIncludeall inedibleconsurnables.
2- Prizenumberand value
representthe average(median)numberand totalvalueof prizesawarded
VNIarketing
r competition.
integrationIs a modalaveragescorebetweenI (low) and 3 (high)-set text for details.

Shultz (1987)suggestedthat non price-basedpromotions such as competitions

Will be favouredby companiesin highly priced competitive markets such as food
retailing, becauýethey provide opportunities to protect or boost margins. The
survey findings add weight to this argument, since packagedfood manufacturers
camesecondonly to retailers, who were involved in 47% of all the competitions.
Consumerdurableswere involved in 20%of all the competitionsstudied. This was
a surprisinglyhigh proportion, given the commonperceptionthat competitionsare
the provinceof consurnables,and packagedfoods in particular. Services(with only
8%) lag behind both by comparisonand in proportion to their importance within
the economy. However, within services,some sectors were better represented
than others, with financial servicesand travel and tourism servicesaccountingfor
more than half of the total servicessample.

What Types of Competitions are Used?

Promotions involving into four types (Cummins 1989).
prizes are usually classified
I. Competitions-which involve skfll.
 SalesPromotion Competitions-A Survey 273

2. Draws-free gamesof chancewith no "play" element.

3. Lotteries-games of chancewith an entry fee.
4. Games-involving virtually no skill, but some"play" element.
7his division is based on the legal practicalities of the promotion and is not
particularly helpful in discussing the appeal or the characteristicsof such pro-
motions.The survey and this article excludedlotteries, becausethey tend to exist
relativelyindependently of the product or servicethey promote. The effect of this
Is to underplay the use of competitionsby charities,since they usually rely mainly
upon lotteriesfor combinedpromotion and fundraising. This article usesthe term
"competition" to cover any other form of prize promotion.
Beyondsuch purely legal definitions, it is possibleto identify 10distinct types of
competition.The relative popularity of eachtype in the survey is detailedin Figure
I. Many of the competitions run are hybrids of two types (for examplethe most

80-

60 -

40-

20-

0 SLOGAN QUEST. ESTIM. PAINT NOVEL MATCH

SWEEP ORDER SPOT PUZZLE
Figure I. Types ofcompetitions used.

commoncompetition form involves answering questionsand devising a slogan)

which are counted under both their component headings.This explainswhy the
summedpercentagesexceed100%.

Major Competition Typcs

...
Deviie a Sloganor Name

Pros: consumers think they with it;

about the product and the values associate
can be used to brainstorm ideas for names or product variants, e.g. Castle
274 SuePeattie and Ken Peattie

Loudspeakerschristenedtheir latest model accordingto the most popular

namesuggestedby a competition.
Cons: judging scrupulouslycanbe laborious.
Users: only servicesand
publicationsdidn't favour slogans.
Notes: this very popular form
of competition splits opinion among competitive
consumers,they are loved by creative competitors, and avoided assidu-
ously by others.

AnswerQuestions
Pros: good play value; judging be down to drawing from among
can simplified
screenedcorrect entries; questions basedaround the product help to re-
inforce the marketing message.
Cons: easyquestions little condescending; hard
provide screeningand canappear
questionscan limit entry; ambiguousquestionscan infuriate; needscareful
researchand design.
Users: consistentacross
sponsorcategories.
Notes: appealsto consumers
who prefer factualresearchor recall to creativity.

I Sweepstake

Pros: simple to design by the consumer to be simple to

and administer; perceived
enter and "fair".
Cons: without an exciting
prize they are unlikely to attract consumerattention;
lack of "play value" or consumer involvement can mean the prize over-
shadowsthe product being promoted; in the USup to an estimated90% of
entries may be on postcards(which must be acceptedas a legal require-
ment) rather than on packpanels or leaflets.
Users: publications, trade campaigns particularly favoured
servicesand generic
their use.
Notes: the focus of competition to date has concentrated mostly on
research
simple "sweepstake" competitions (Selby and Beranek 1981)which are
popular in the US, but our survey suggeststhey accountfor only 12%of UK
Competitions.

Orderof Aferit

Pros: getsconsumersto focus can help to research

on product characteristicsand
the relative importance the consumerattachesto each;judging is reason-
ably simple; can easilybe combined with slogansor-questions.Cost effec-
tive, since a major prize can be offered and warding it easily insured
against.
Cons: perceived deter consumers from entering or
odds against winning may
purchasing;potential lack of winners may attract negativepublicity.
Users: popular with link to product
cars and white goods, suggestinga strong
features.
 Saks Promotion Competitions-A Survey 275

Notes:insurancecostsdepend on predicted entry levels, needs careful design to

ensurelegality.

S. SpottheSomethitig

Pros: goodimage in terms of fairness,and judging is straightforwardif laborious;

canbe therned to link with product or advertising message.
Cons: negativepublicity regarding the low win-rate among newspaperspot-the-
ball contestsmay lengthen perceivedodds of winning.
Users: no strong preferencesshown for the use of these competitions among
different sponsors;firms more interestedin generatinga responsethan in
lUghlighting a product appear to favour them (e.g. Readers'Digest and
mail order houses).
Notes: "'Spot the missing highlight the product in a
product" competitions can
rather back-to-frontway by showing the context in which it belongs to set
up an associationin consumers'minds. They canalso be usedfor customer
education,asin the Action GT "Spot the Hidden Cycling Hazards" compe-
tition.

6. Puzzle

Pros: high play value; for

of
plenty room creativity.
Cons: often difficult to
relate closelyto product attributes or values.
Users. charitiesclearlyfavoured the use of puzzles.
NoIes: theserange from simple wordsearchesfor words connectedto the product,
to fiendish devices like the Toblerone Easter Egg puzzle (whose total
permutationswould require over 7,000zeros to record, and which unsur-
prisingly producedno winners for the C100,000 prize).
7. Enimatea Time, Distance Quantity
or
Pro$: one right answer judging simple; the skill element may intrigue
makes
competitors.
Cons: when product linked, tends to focuson quantity rather than qualities.
Users: tobaccocompanies favoured estimates, using them three times
particularly
more often than the total sample, perhaps becausequantity issues are
"safer" for consumersto think about than issuesof the product's attributes
and effectson consumers.
Notes: quantities linked to a product suchas the "'How many OXO cubes
are often
does it take to fiU a microwave" competition run by Brooke-Bondand
Sharp.

Minor Types
8- PaitillColourlPitotograph

nese are mostly targeted by Rowntrees, Kelloggsand

at children sponsorssuchas
IVOOlworths.Adult
photographic competitions are usually related to products
.: F, Stic 11cattle and Ken llc; itfie

v.-hose use or users are photogenic, like holiclavs (Thomson) or baby products
(Duplo); or are sponsored by the likes of Fuji and Kod ak

" Novelty, Other

Th"t- iTVin some %-.,ay unique or hard to classify. They mostly consisted of writing
SOMething more complex than a slogan, such as a recipe, tory or script. The
DnIteT Altern, itive Awards is good e\ample, requiring competitors to nominate
a
and lustily the least alternative comedian, the least boring politician and the most
annoying TV commercial. SILICIIConi petit lons have the advantage of attracting
consumers through their noveltv value, but there is a danger tit overshadowing the
product.

10 S(rarchand lat, h(
.1
The mechanics of the game it ideal for product-, to wl"Ch J
card inake
leaflet cannot easily be dratt beer. I liosc encountered ill
attached ýLich is petrol or
the survev vverc A.I associated witil pub drinks. sL,(-Il ganiv, -,in be verv popular
with consumers, sales promotions agencv Frankel & Co found that "I ',*""'
sumers "almost iljstýjllt will gaines. Since thev art, selt-judegit 1g, I(
t1 -re
lj\, -,lN-s-
are no judging costs, but dangers posed bv poor 9,1111C dt'sign or st-curitv lapses
make this t%,Pe of conipctiti(in relativek- Im01 ri sk. Ill the I'S a misprint ill tilt-
wording oil the Wheel of Fortune game cards issued bv Publi\ supermarkets
resulted in $23 million \-vorth ot %vinning car&, being issued by mistake.

I low DO thev jZcýjclj tile customer.

m ot nwrkctm,.,, mmunication, com I Ict It It' I",

h4! dVl1%'
oil tile LI., e oI .111 ette(ýtp,.e Illvdia to bring thcm to potential constimer. "
attenti'mi. File Illetiloj., useLl to deliver tile competition nic,. sage are shown it)
Figure 2.

......... ..

Magazine/
CaL -ue Competition
IA'; Ifl t lack
Attachment

Figure 2. Alethoth. de/iverY

ot'compt-titiori
 Sales Promotion Competitions-A Survey 277

The implication of Figure 2 is that a close relationship exists between compe-

titions and POS display and packagingwithin the marketing mix. Skuce (1990)
notesthat for many products (especiallyF?JCG brands struggling to attract atten-
tion on the shelvesof ever larger and busier supermarkets)POSimpact is vital for
success;and yet retailers are often relatively unsympathetic in supporting POS
Promotions,especiallythose likely to encouragebrandswitching. This is not sur-
prising, since the averagegrocery retailer is apparently offered around 20 times
morein-storepromotions from manufacturersthan they canaccommodateQuelch
1963).The use of competitions which are printed on-pack, or which use pack
attachments(such as bottle collars) allow manufacturersto develop effectiveon-
shelf promotionswithout having to depend upon retailers' co-operationin their
development.The popularity of competitionsamong packagedfoods and grocery
Items,and the prevalenceof competition packsmakescompetitionsone of several
Aspects of the growth in salespromotion which is a significant opportunity for the
packagingindustry.
The"Other" methodsof delivering competitionsto consumersinclude guarantee
cardsor competitions which consumersenter "automatically" as a result of a
purchaseor coupon redemption. Although these were a small feature of the UK
Umple, such automatic entry competitions are very popular in the US where,
accordingto Frankel & Co, 78% of consumershad redeemedcoupons involving
Automaticcompetition entry in one year. "Mail" leafletsare either sent by direct
mail,or must be applied for by post, often in responseto a mediaadvertisement.

How Important are the Prizes?

It is the prize that but how important are the
makesa competition a competition,
prizesto competitiveconsumers?In the PremiumIncentiveBusinesslBetterHomes
& Gardens(PIBBHG1989) 500 US households, they found that for 48% of
survey of
entrantsinto competitionsthe prize is important (eventhough 62% also said they
entered"just for fun").
A total of 751,263prizes were awarded from the sampleof 2,646competitions.
Thetotal valueof these E47.7million. Selby & Beranek (1981) note
was estimatedat
the problemsof accuratelyestimating prize values. Somecompetitions helpfully
Statethe cashvalueof a prize, and othersuseholidays,carsor hi-fi as prizeswhose
Valuecan be relatively easily tracked down. The authors hit real problems over
Prizeslike a flock of sheep (SheepDip Whiskey), the hat of your dreams(Yardley)
Or3 part in a JamesBond Movie (Philips). Where there was any doubt, a very
Conservative So
estimatewas used. the figure of E47.7 million will be an underesti-
-cute in one sense. However, is
this the retail value of the prize, which is typically
greaterthan the cost to the sponsor(especiallyif the prize is their product). Sothe
Prizevalue figure is a very rough guide to the actualcost of prizes awarded. To
this, the costsof planning, designing, delivering, administeringand judging must
beadded, to
estimatea total cost of competitions.The next stageof the authors'
researchwill focuson the sponsors,and should revealmore accuratelythe level of
Matketingresourcesbeing devoted to competitions.
Apart from number and value, the other key dimensionof competition prizes is
thier nature. Prizescan be:
278 SuePeaWe and Ken PeaWe

I. Financial;cash,vouchersor property bonds.

2. Material;cars,hi-fi's, "troUey dashes" and white goodsare popular prizes.
3. Experiential;holidays, meals,days out or flights in hot air balloons.
4. Rare;some prizes are of value, but cannot commonly be purchasedby con-
surners,such as lunch with BarbaraCartland (Dairy Milk), or a family portrait
takenby Patrick Lichfield (Boots).

In trying to make the prizes, and thereforethe competitionattractive,a sponsor

hasseveraloptions.

1. Make the prize "special"; as well as simply valuable.

2. Offer flexibility, this canbe In the form of offering cashalternativesto goodsand
services,or offering a variety of holiday destinations to choose from. Ulay
products'"Woman of the World" competitionoffereda choicebetweena Greek
cruise,the Orient Expressto Venice,a London art tour, a Far Easttrek, or a trip
to Parisand Amsterdam.This meant the firm was "targeting its entirc consumer
base;women betweenages18-65 and older" (IM 1986).
3. Offer variety. One manufacturer offered a Jaguarcar, a SpanishVilla, a light
aircraft, a yacht and:E5,000as a single prize.
Since the attractivenessof a competition is related to the expectedvalue (or
rather utility) of the prizes, and the perceivedprobability of winning, sponsors
could either use high prize value or high prize numbers to make a competition
attractive. Table 1 shows some notable variations between types of sponsor in
termsof the number and value of prizes which typify their competitions.Dividing
the sampleabout the median value of prizes and the median number of prizes
ptoducesfour "prize philosophies" for competitions.
I. IaCkPots
(few prizes/high value; 20% of all competitions).
Intasun's: E1,000,000Hotspots competition offered a single million pound prize
(to be divided if more than one person estimated the answer correctly). A
problem with Jackpot competitions is that the shortage of prizes can lower
people's expectations of the odds of winning, and can therefore depress pur-
chase and entry levels. Hoover's "'Win a Volvo" competition tempted only 10%
of qualifying vacuum cleaner buyers to enter, despite a relatively high value
prize.
2. Misers (few prizes/low value; 32%).
These are frequently aimed at children or families, offering prizes like a family
day out. The competition in BPs Lifestyle magazine offering three Liardice
games as prizes suggested a surprisingly small promotional budget for an oil
company, and a belief that children don't approach competitions in a spirit of
economic rationality. An example of an adult-orientated miser competition was
the G-Plan/House of Fraser competition offering one caseof wine as a prize.
3. Everyonea Winner (many 20%).
prizes/low value; ...
These are also frequently aimed at children, for example Woolworth's Little Owl
competition which awarded JE450 worth of vouchers and 1,000children's books
as consolation prizes.
4. Bonanzas(many prizes/high value; 28%).
Heinz have run an annual summer bonanza competition including the Win-a-
 PAGE

MISSING

IN

ORIGINAL
280 Sue PeaWe and Ken PeaWe

by one first prize, two secondprizes, three third, four fourth and ten runners-
up.

How Well do Competitions Communicate?

Oneof the most interesting facetsof competitionsis their versatility asa communi-
cationstool. Above the line advertising has attractedthe lion's shareof acaden-tic
and practitionerinterest as a marketing communicationstool. However, adverts
haveSomeseverelimitations. They are rooted in the traditional, scientificconcept
of communicationwhich focus on the transfer of information from one party to
another(the "'magicbullet" approach,Schramm19M. More recentperspectivesin
communicationview it more as a social process,as a processof sharing, and in
terms of the creation of a responserather than just the disseminationof infor-
mation(Buttle 1990).An advert is usually separatedin both time and spacefrom
the moment when the consumercan make a response,so the approachto com-
munication.is one-way and often restricted to influencing simply by saying-
'Look at me (or listen to me), and rememberme". Indeed advertising'seffective-
nessis frequently assessedsimply by consumers'ability to recall it. Competitions
canalso play a role in raising brand awareness,but they can achievemuch more
beside.In particular, competition details displayedon-shelfor in-storecanpresent
a numberof possiblemessageswhich the consumercanrespondto thereand then.
The response-orientatedmessagesa competition can communicateinclude the
following.

"'Stockme." Grolsh and Carling BlackLabelboth ran promotionswhere a

purchaserselectinga competition four-pack would discover
they need to buy a further to
pack qualify for entry. This
helps to encouragestockpiling, but may also displeasecon.
sumers who overlook the often rather inconspicuous
"Further purchasesrequired" label.
O.
Try me.of Competitionslike Pizza Hut's "Try It Traditional American"
competition (for a new pizza line) are popular for encourag.
ing product trial. Car manufacturers Including General
Motors, Citroen and Renault have used a seriesof compe-
titions requiring a test drive to qualify for entry.
Useme." Barclaycard'sConnectionscompetitioncould only beentered
by making any purchasi using their Connectcard.
"Help me." Charitiesand market researchersare finding competitionsa
good way to encouragea response from the public. The
Great Ormond Street Wishing Weil appeal has been among
the pioneersof this approachrunning competitions in associ-
ation with Fray Dentos, Ribena and Lyons Choice Blend
among others.
"Considerme." A ski ng consumers to rank product benefits, match them to
consumer attributes or to createa recipe using a product, all
take the consumerbeyond simple awarenessof the product
and into analysisof it.
 Saks Promotion Competitions-A Survey 281

"Comeand seeme." Manufacturersof cars and gas or electrical appliancesfre-

quently run competitionswhich involve posting the entry at
a showroom, bringing customer, product and salesperson
together.

What Effect can Competitions Have?

Although competitionscan contribute to a variety of marketing objectives,there
appearto be three coreroles which they fulfil.

I. CeneratingSalesIncreases

The common perception

of promotions is that they provide consumerswith an
incentiveto buy a product; trial, to switch away from a rival brand or to
either as a
stockup. Exactlythreequartersof all those competitionssurveyedrequired a pur-
chaseof the product. Although 25% of competitionsrequiredno purchase,3% can
be identified as "pseudo-no Here the competition details
purchasecompetitions".
sre on the pack, but no purchaseis required. So a customerwill have to make at
leastone purchase, to
or record the competition details to enter. More likely the
consumerwill find out post-purchasethat the purchasewasn't necessaryto enter
the competition. If viewed as a "gotcha" such promotions run the risk of post-
Purchasedissatisfactionamong customerswho were not alreadybrand-loyal.
The number of competitions which don't require a purchasesuggeststhat to
Judgecompetitions'effectiveness
simply in terms of changedpurchasingpatterns
is not always appropriate. This is true for servicebusinesses where
particularly
overhalf of all competitionsrequired no purchase.

2- ScajonalDemandSmoothing

Thereareexamplesof
competitionsbeingusedboth to counteractseasonaltroughs
in demand,and to Reinforcement of seasonaldemand
reinforce seasonalpeaks.
can be shown by one July which featured 15 concurrent competitions for sun-
9USsesor sun-orientatedskincareproducts. For retailers, December'spre-Christ-
masrush was reinforcedby an averageof 49 competitions(comparedto an overall
monthly averageof 35); whereasthe traditional Februarylow coincided with an
Averageof only 17.Evidenceof seasonaldemand smoothingcan be found in more
Anecdotalexamples.Competitions run during the month of August regularly
feature brands Christmas Bol's Advocaat,
associatedwith and winter such as
COaliteand Horficks. Mars for their chocolateduring
regularly run competitions
Summerand their ice creamsduring other seasons.

I As a TacticalResponse Rivals
to
A COmpetition be
may used to spoil a rival's promotion or other markefing initiat-
il'e- It suits this
role becauseit is a relatively "noisy" promotion (Skuce1990)and is
goodfor drawing attention away from rivals' offerings.
 s
.:? , Sue Peatric and Kcri Peartir

A good example of a competition ivhich tackled each (it thcý,e Issues once W.Is
'It
British Airway's World's Greatest Ofter, to
vvhich over five million people re-
sponded. It was designed to stimulate sales in the face ot the recession, and formed
part of a promotional strategy aiming to boost rL'VC11UV bV E250 million The compe-
tition %vas designed to smooth over an additional dip in demand (7,111M. -d bV
heightened Icars about launched to
international terrorism, and it was
coincide with the operling lip of nevv routes from I Ivathrow for L*n1ted Airlines and
American Airlines (ýVall Street Journal 1991).

How ll't'I'Vcti%, e are Cotnpetitjon%ý

MC-I'Liring
tile effectivelic, ", (0 tmllpetiti(1111ý JNý-,tljdý III,., tilt' III( 'I 1ý, tilt-III
%elves is not easv. There also appears to be little academic research v\amining the
effects of competitions on sales turnover. 1-lmvever, there is evidence from the
related field of generating mail survev responses which suggests that competition-
are effective. McDaniel and Jackson (1984) f(lund that tht- tifter of a cmilpetition
acted as an incentive I-mt noted a thre,, 11(dd ettect In terms ot the size of tilt- prize
that had to be offered. Caji-al et al. noted that ''tht, lt)ttt-r\- incentive
Clearly increased respoin,,e rate verv substantialk"
ludging tile in term,, (A increased sale-, I, pwbleniatic,
success of a competition
b0cause sorne purchases li, been and awareness bvnvflt,
may ive simply retinied, ý
oA*il)be overlooked. Competition entry levels aren't a useful guide, since encourag-
ing entry isn't an underlying objective to most conilictitimis, . 1111i 011C consumer
may make multiple entries. One U1, sweepstake revc-alt-d I, O(X) postcard entries
submitted b\, the sanic pet-mm.
One relativclv crude the atithors did develop. to tr\- and assess the
niva,, Lirt,
potential effectivelless allaivini, tht-ir ''marketing inte
tit
gration", Compt-titions varv III tcrniý, (it whether vither tilt- pnic. tit tile mcchani, s
tit the competition relate hat.ýk it) thc product IN-ing pwilloted. I hl- , .11,11CUsed to
Kure competitions as high, niediiiiii low in tt-rms of marketing intepation I he
or
distribution of the
sample on the hasis tit marketing i ntC,4r-1t 10111" '1110"'11"1
4, Integration can be wavs, for e\amplc I icin',
aCl1ICVVd Ill a wide varietv tit
frequently "theines" its prize,, b\- awarding then, in group-, of 57,

lllý I!

-ýOurl pri-c and

MEDIVNI
LOW
.13 20
bctWf4'11
(sonic link
COMpetition or prize and product) (No link Ix-t-wern product
competition and prize,

1-igtire 4. ( '0111petitim, markering itifegnitiori I ", ).

 SalesPromotion Competitions-A Survey 283

TableI shows the marketing integration scoresassociatedwith different spon-

sors,and they suggestthat the amount of thought going into competitionsvaries
asmuchasthe amount of money.A point madeby Kumar and Leone(1988),is that
wherea promotion involves dual sponsors(suchas a manufacturerand a retafler),
thereis likely to be conflict between their objectives.A manufactureris keen to
encourage brand or product switching behaviour which will give them businessat
the expenseof a direct or indirect rival. For a retailer the switching of customers
amongthe in-storebrandsand productspresentsno real benefits,so they are more
interestedin encouraging increased usage and store switching. It might be
expectedthat such potential conflicts of interest between sponsorshippartners
wouldleadto compromiseand a reduction in effectiveness.We tried to test this by
comparingthe marketing integration scoresfor single and dual sponsorcompe-
titions. In fact dual sponsorcompetitionsappearedbetter integratedwith 22% of
themclassifiedas low in marketing integration terms comparedto 48% for single
sponsorcompetition.This suggeststhat retailers(who frequently form half a part-
nership)with their experienceof in-store competitions understand how to run
effectivecompetitions;or perhapsthat two marketingheadsare better than one.

Getting the Most out of Competitions

Looking at over 2,600 has helped the authors to develop some
competitions
insightsinto the art of developing salespromotions competitions.Other authors
suchas Cummins (1989),Toop (1991),Keon and Bayer(1986),have put forward
usefulguidelinesfor marketerson the practicalitiesof running salespromotions,
which are helpful in planning competitions. Competitionsare seenas relatively
straightforwardand cost effectivepromotions, with most of the cautionarynotes
expressedconcerning the legal pitfalls causedby the Ws complex legislation
(Cummins1989)and the fragmentedstate regulationsin the USA (DNIM 1987).
Competitionsare certainly often easierto managethan many other forms of pro-
motion, since the costsare clearly known from the outset, and thesewill not be
affectedby issuessuch as varying redemptionrates. Such cost predictability may
further encouragethe use of competitions in future, in the wake of
promotional
Hoover'sdisastrousfree flights where early estimates puts the costsof
giveaway,
over-redemptionto the companyat someE20million.
We have tried to add to the adviceavailableto practitionersby developing the
COMPETEchecklist to assist
marketersin planning a successfulsalespromotion
Competition.The checklistprompts the considerationof sevenkey areas.
Asking such questionsbefore organizing a competition may seemlike extreme
Commonsense,but the effectivenessof salespromotion managementhas been
questioned(Strang1976);and the evidencefrom the marketing integration scores
Suggests room for improvement.

Conclusion-the Power of Competitions

To concludethis initial into the of competitions, two anecdotal
exploration world
Itumples can demonstratetheir potential power as a tool for marketers.The first
"4mPle is newspaperbingo, a promotional idea that started among the tabloids
284 Sue PeaWe and Ken Peattie

TableZ The COMPETE checklist

Co-sponsors Will the competition be run by the company or shared with another retailer or
manufacturer?If so, how will costs and responsibilities be divided?
Objectives What are the marketing objectivesof the competition? What messagewill It send to
consumersand what effect should it produce? Is it only short-term salesuplifts, or are
there more long-term objectivessuch as generating new users or raising product
awareness?
Mechanics How will the competition be designed, delivered, entered and judged? flow can the
mechanicsof the competition best support its objectives?What could go wrong
logistically and how could It be prevented?
Prizes What number and value of prizes will be required to make the competition attractive?
Can the prizes be chosento reinforce the product concept?What prizes will attract
target consumers?
Expenditure How much of the mark ti budget and the time of marketing management should
the competition consume? ow can the judging be made as simple as possible?
Timing Should the competition be used to counteract seasonallows, reinforce seasonalhighs
or "spoil" rivals' promotions? Should the gap between launch and closing date be Ion$
to maximize the effect, or short to prevent loss of consumer Interest? How long should
: Fecial packsor leaflets etc. be available for?
Evaluation H, w will the effectivenessof the competition be measured In terms of achieving its
objectives?Who should be responsible for evaluation, when and using what
measures?

and rapidly spreadthroughout the market. The "infectiousness" of bingo games

posesthe interestingquestion of whether the "quality papers" felt threatenedby a
promotionbeing run by productswhich should have not beenvery direct rivals, or
did they simply adopt a marketing tool which was working well in a different
segment?Either way, the fact that bingo cards (or "portfolio" cards for the broad-
sheetbrigade)spreadlike a rash throughout a market famous for high levels of
brand loyalty is astonishing (as were the sums of money that publishers were
pteparedto investin them). The heyday of newspaperbingo may have passed,but
it showed how competitions can prove infectious both between companiesand
betweenconsumers.
An even more striking example comes from petrol retailers (Fox 1986),who
during the 1980sfaceda steadydecline in pricesand margins. Attempting to gain
marketsharethrough further price reductions was potentially counterproductive,
since competitors would simply respond, eroding margins further. Product
changesweren't very relevant, evenafter the arrival of the novel and differentiated
FormulaShell.So, for petrol marketers,placeand promotion were the key market-
ing variables.In placeterms the emphasiswas on developing fewer, larger, better
locatedand servicedstations. Promotions becamethe crucial factor in attracting
customerswith promotional games leading the way in the early 1980s.These
gamesare acknowledgedto have played a major part in changing petrol con-
sumers'behaviour.Beforethe introduction of the games,the majority of customers
boughtpetrol regularly from the samefew local stations. Afterwards, only 40% of
Purchaseswere madeat the sameregular garage.AU the major retailers empha-
sizedthat they ran competitionsbecausethe consumersfollowed them from fore-
court to forecourt. The promotions, and the consumersattracted to them, were
split roughly 50/50betweengamesand giveaways.After Esso'sdisasterwith their
"Noughts'n Crosses"game, giveawaysgained the upper hand.
Suchbrandswitchingbehaviourby the competitiveconsumerembodiesboth the
Opportunity and threat that competitions pose for marketers. Competitions can
Provideopportunities to increasebrand consciousness,even in industries viewed
 Saks Promotion Competitions-A Survey 285

asprice-based and virtually undifferentiated. However, if they are allowed to get

" out of control" competitionscan contribute to the "training" of consumersto buy
In responseto promotions, with the of converting formally loyal customers
risk
into promotionprone, or even
promotion loyal, consumers.
Like any element of the marketing mix, the secret of getting the most out of
competitionslies in good marketing management. According to Skuce (1990)
"Wompetitions)should be used strategicallyas part of a marketing programme
gearedto achievingpredetermined marketing objectives They work best in a
brandbuilding role when relevant to both consumer and ...
trade, when well dis-
playedand, as most good promotions, when supported in the media They can
...
offer(marketers)remarkably'noisy' value for money."

References
Buttle,F. A. (1990),"Marketing CommunicationTheory: Review and Critique",
M4rk,*ting Educators Group1990Conference Proceedings. (Eds) Pendlebury,A. and
Watkins,T.
Cummins,J. (1989),SalesPromotion:How To Createand ImplementCampaigns That
Re4ilyWork,London, Kogan Page.
DMS1(1987),"Sweepstakes:A Look At A Winning Marketing ToolOfDirectMarket-
ingAfagazine, .
50, No. 5, pp. 30-31.
Fox,M. (1986),"Petrol Firms Bid for Refinement",Marketing,IS September,pp.
24-27.
C-1jr3j,A. M., Faria,A. J. Dickinson, J. R. (1990),"A Comparison of the Effect
and
of Promisedand Provided Lotteries, Monetary and Gift Incentives on Mail
SurveyResponseRate, Speed Cost", Journalof Market Research Society, 32,
and
NO.1, pp. 141-162.
N (1986),"Plan Your Own Trip", IncentiveMarketing,16, No. 4, pp. 16-20.
Keon,J. W. and Bayer,J. (1986),"An ExpertApproachto SalesPromotionManage-
ment", Journalof AdvertisingResearch, june4uly, pp. 19-26.
Kumar, V. and Leone, R. P. (1988),"Measuring the Effect of Retail Store Pro-
motionson Brand and Store Substitution", Journalof MarketingResearch, 25, No.
Z pp. 178-85.
NicDaniel,S. and Jackson,R. W. (1984),"Exploring the ProbabilisticIncentive on
SurveyResearch".In: Proceedings of theAMA's Summer Educators' Conference.
(Eds)Bernhardt,K. et al. (Chicago),pp. 372-375.
PlB (1986),"Prize Offering: Believability Affects Entrants' Responseto Sweep-
stakes",PremiumIncentiveBusiness, 45, No. 3, p. 25.
Pll3l3HG(1989),"Accounting For Consumer Behaviour. Why They Enter One
PrOmoOver Another", PremiumIncentiveBusiness, 48, No. 2, pp. 8-10.
Quelch,J. A. (1983),"It's Time To Make Trade Promotion More Productive",
114n,
4rdBusiness Review,61, No. 2, pp. 130-136.
Selby,E. B. and Beranek,W. (1981),"SweepstakesContests:Analysis, Strategies,
and Survey", TheAmericanEconomic Review,17,No. 1, pp. 189-195.
Shramm,W. (1955),"How Communication Works". In: TheProcess and Effectsof
MassCommunication (Ed) Schramm,W. (Urbana,IL), University of Illinois Press.
Shultz, D. E. (1987),"Above Below Line? Growth SalesPromotion in the
or the of
United States.", InternationalJournalof Advertising,6, pp. 17-27.
286 Sue Peattie and Ken Peattic

and Incen-
Skuce,S. (1990),"Don't Neglect the Flexible Competition"', Promotions
tives,August 1990,pp. 36-38.
Strang,R. A. (1976),"Sales Promotion: Fast Growth, Faulty Management", Har-
vardBusiness Review,54, July/August, pp. 115-124.
Toop, A. (1991),Crackingjackh SalesPromotionTechniques and How To Use Them
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Mazecity, Sandhurst,Kent.
%VSJ (1991),"British Airways Picks Giveaways Over Price Cuts", Wall Street
Journal(Europe),March 23 1991,p. 3.
 l'tiblication-#-4

'Sales promotion: a missed opportunity

for services marketing? '

The International Journal of SerViCcs

Industries MIM41
I.TC1119111

Vol. 6,1,1995, pp 22-39.

TEXT BOUND INTO

THE SPINE
 Sales promotion missed
-a
opportunity for services
marketers? Tr-
6vtdlanuary1994 r-n
jL-, Peattie
Augmt 1994 CardiffBusiness
SCIZO04
Cardiff,Maks,and
SuePeattie
Universityof Glamorgan School,Treforest,Maks
Business
Introduction
A brief glanceat thecontentspagesof a selectionof generalservicesmarketing
texts revealsthat an important elementof modemmarketing,"below-the-line"
salespromotion,is mostly conspicuousby its absence.The communications
mix is dominatedby personalselling (which is often difficult to disentangle
from the "product"as part of the serviceencounter)and "above-the-line"mass
mediaadvertising.This lack of emphasison salespromotionis a major lost
opportunity for the marketingof services,a point that was underlinedin an
interview with RodneyWoods(as GroupMarketing Officer at United States
Trust Co.), publishedunder the title "Financialservicesmarketersmust learn
packagedgoodssellingtools" (quotedin Lovelock,1984).
This article aims to help redressthe balanceby examining the useof one
salespromotiontool which representsa growingphenomenon in manyservices
markets,the promotionalcompetition.Competitionsrepresentan increasingly
widespreadand significant,but (in termsof the academicliterature)scarcely
noticed, marketing phenomenon.This prompted an exploratory research
projectexaminingthe useof competitionsas a salespromotiontool in a wide
rangeof markets,and from this researchprojecta subsetof 188competitions
which relatedto serviceshasbeenextractedfor analysishere.
Thegrowth of SaksPromotions
The boundariesdefining salespromotionsare neitherclearly drawn nor used
consistently, but a relatively workable definition of sales promotions is
"marketingactivitiesusuallyspecificto a timeperiod,placeor customergroup,
which encouragea direct responsefrom consumers or marketing inter.
mediaries,throughtheofferof additionalbenefits"(PeattieandPeattie,1994).
Although the meaningof "above-the-line" marketing communicationshas
beenconsistentlyusedto denotemassmediaadvertisingchannelledthrough
advertisingagencies,theconceptof whatexistsbelowthe conceptual"line" has
changed.Originally all non-advertisingforms of marketing communication
0,*t 31C MCBV".
6Na.
UnimuyL were lumped together in the term *below-the-line". With the increasing
*ft VW,
6.4= tendencyfor public relationsandsalesto betreatedas separatefunctions,sales
 promotionhasgenerallybecomesynonymouswith 'below-the-line"communi- Sales promotion
cation.ne divisionof the marketingcommunications budgeteithersideof the
linehasbecomea key strategicissuefor
marketingpractitioners.
Althoughit mustbeviewedcautiously,owing to the variationsin definitions
used,thereappearsto be widespreadevidenceof a switch of emphasisby
marketers awayfromadvertisingandtowardssalespromotion.For muchof the
1980sexpenditure"below-the-line" fast 23
grew almost twice as as advertising
expenditure (KeonandBayer,1986;Shultz,1987),and it now accountsfor up to
10percentof themarketingcommunications budgetsof manylargecompanies
(Shultz,1987).According to the NVPPGroup,by 1989global expenditureon
:SalesPromotionhad equalledadvertisingspend(FinancialTimes,1989).This
growth in promotionshas beenconcentratedin retailing and manufactured
goods,with no servicecompaniesfeaturingamongthe UK'slargestpromotion
M'Sers (Peattieand Peattie,1994).
Severalfactors are driving the
general swing towards sales promotion
(DicksonandSawyer,1990;Quelch,1983;Shultz,1987;Strang,1976):
" RisingPricesand advertisinj "clutter"- erodingadvertising'scost-effec-
tivenessas consumersbecomeincreasinglydesensitizedto massmedia
advertising.The effectivenessof advertising for servicescan also be
hamperedby their intangibility (Rathmell,1966).
" SaksPromotionsbecoming"respectable"- through increasinguseby
marketleadersand increasingprofessionalismamongsalespromotion
agencies.
Shortening,Planning time horizons- time pressurecan7makethe fast
salesboost,which promotionsareperceivedto offer,attractive.
Aficro-marketingapproaches as a responseto fragmentingmarkets,
-
wheresalespromotionscan'providemore tailored and targetedcom-
municationthanmassmedia.
A "snowba1"effect firms in marketswherepromotionsare common-
-
Placearevirtually obligedto follow suit, or risk losingmarketshareand
competitivepositionU, 1990).
Services, sales '
Despite the promotions and competitions
growth in sales promotions and their potential for services
Marketing. there are a number of fact6rs which expldin their neglect among
In3nYserviceProvidersand in much of the servicesliterature. Many'below-the-
line" activities having it is difficult to
rely on a tangible product, without which
Offer10 per cent extra free or a free trial sample, or to create price-packs or
bandedpacks. If the be becomes the
service cannot easily customized,pricing
Ob%ious elementto changefor promotional purposes.Farris and Quelch (1987)
Suggestthat price promotions can encourage service trial, help to smooth
demandfluctuations, differential to be targeted at different
allow servicepricing
 segments, andaddexcitement to thepurchase of servicesthatmightotherwise
6,1 become mundane or perceived ascommodities.
Coupons or otherforms of promotionalpricingarewidelyusedin certain
servicesmarkets,suchas travelandfast food,but therearedifficultiesand
dangerswhichaccompanytheirapplicationto manyotherservices.This is
partly because settingpricesfor servicesis alreadydifficult(Thomas,1978),
andconsumers oftenusepriceas a surrogatemeasure of quality.Another
--------- is thatconsumers
problemwith price-based promotions that theyassume are
priceaverseor valueseekingandare priceaware.In practice,customers'
assumption that priceis linkedto qualitycanoftenmakethemto someextent
price-seeking (Tellisand Gaeth,1990),andtheyareoftensurprisinglyhazy
aboutthepricedetailsof theirpurchases (Dickson andSawyer, Woods(in
1990).
Lovelock, 1984)suggests thatpromotional pricing in financial has
services not
provedworthwhilefor severalreasonsincluding relativelyhigh levelsof
customerloyalty,thedangersof pricewars(e.g. the "disastrous"pricewars
wagedin theUSAoverfreecheckingin banks),andtheoftencrucialroleof
pricingin overallpositioning.
"Value-increasing"versus"value-a&ing"pronzotions
Price-based promotions,suchaspricedeals,couponsandrefundoffers,seemto
dominatethe marketing literaturebecausethey are the mostcommonlyused.
DonnelleyMarketing's(1991)USsurvey of promotionalpracticeshowedthat
Pricecouponswerethefavouritepromotionaltool(with 95percentof marketers
planning to use them in the next year).Pricepromotionsand quantity-based
Promotionsoffering "10 per centextra free" or bandedpacksmanipulatethe
quantity/price equation t6 increasethe value of the product offering to
consumers. Such"value-increasing" promotions cannot easily work for services
by an incriase in physical quantity, and thereforecan only work through
potentiallydangerous,margin.andimage-erocling, pricereductions.
Theothergroupof salespromotionswhichareoftenoverlooked arethe"value.
adding"'promotions.Theseleavethe price and quantity of the core product
untouched, and bundle somethingelsewith it to increase value to consurners.The
asomethingelse"couldbe a freegift, a "piggy-back"complementary product,or
a competition.Thesevalue-addingpromotions,and competitionsin particula;
are increasingly making an impact, In the Donnelleysurvey,sweepstakes
(plannedby 68 per cent)and othercompetitions(31per cent)featuredin many
marketers'plans, had
while mediaadvertising reached a new low, accounting for
only 30.6percentof marketingcommunications budgets.
By leaving the price intact.Andnot subject to the useof coupons,value-
adding promotionsavoid the financialdangers of price wars or coupon fraud
associatedwith manyprice-based promotions. Th1s does not meanthat theyare
without potentialpitfalls. Somevery largeand sophisticatedcompanieshave
beeninvolvedin salespromotionswhich havegonebadly wrong, including
Pepsi,Esso,Hoover(Peattieand Peattie,1994),Coca-Cola, Kraft Foods,Vidal
Sassoon and Cidbury's (Smith, Investing
1993). money in promotions brings no
guarantee of success.The key challengefor marketersseekingto gain Salespromotion
competitive advantagethroughpromotionsis to choosea promotionaltool
whichissuitablefor thebrandthattheymanageandthemarketwithinwhich
it exists,andto execute thepromotionflawlessly.
Thereareseveralaspectsof competitionswhich makethemparticularly
suitable foruseby servicemarketers:
Differentiationopportunities.The addedbenefitsprovidedby com- 25
petitionscanforma usefulsourceof differentiation from otherservice
Providers. Althoughrival "Me-tW competitions be
may attempted, they
risk failure if initial competitionshavetappedthe vein of available
competitive consumers.
Link-uP. OPPortunities. Linkingup to advertisingor PRcampaigns.
Point of saleopportunities.Servicescannotreadily be displayed
(Rathmell,1966),but competitionpostersandleafletsprovideoppor-
tunitiesfor interesting, tangibleandvisiblePoSmaterials.
QualitYcueappealThe intangibilityof servicespromptscustomers to
lookfor tangiblesurrogate "cues"tojudgetheserviceprovider's quality.
A competition sponsorcanoffera "quality" prize,suchas LloydsBank's
useof a VicarageMk II Jaguar,to symbolizea qualityseMceprovider.
Competitions area morecost-effective quality cuethan "giveaway"
Promotions for servicesmarketers,sincegiving customer"freebies"
whichprojecta highqualityimagecanbeprohibitivelyexpensive.
DemandsmoothingTheperishabilityof servicesmeansthat demand
fluctuations arethe"mosttroublesome" of services marketingproblems
(Zeithaml et aL, 1985).Compefitions'potentiýl for demand smoothingis
demonstrated by their usein promotingseasonalservicessuchas
tourismor foreignexchange.
Consumer interaction. Interactivemarketingis vital for services (Kotler
andBloom,1984), but difficultto createthroughrelativelyunidirectional
formsof communicationlike advertising.Competitionscancreate
interaction andinvolvement betweenthecustomer, theserviceandthe
serviceprovider.Competitions mayrequirethecustomerto analysethe
serviceto answerquestionsor createa slogan,to sendawayfor a
brochure(common in travelservices)or to meettheserviceprovider,
creatingýewserviceencounter opportunities.
COMPetitions behatiour
C'OrnPetitiOnsand Consumer
are certainlyeffectivein attracting cons=ers. A 1986 surveyby
HarrisandMarketingWeek 70 UK had
showedthat some percentof consumers
tr,UTeda product.or service-linkedcompetitionin the past year,andone-third
hadenteredin the (Cummins, Why
1989). are consumersso
previousmonth
2nractedto competitions? The attractivenessof a competitionhasbeenlinked
tOfivefactors(SelbyandBeranek,1981):
 (1) thecostof entering,
(2) the monetary value of the prizes,
(3) the number of prizes and the perceivedprobability of winning,
(4) the pleasuresof gambling (or perhaps more accurately of competing),
(5) the desire to occupy leisure time.
Although all five factors are important, the importance of the last two has been
obscuredby an overemphasison economicrationaldecision-making approaches
basedon the first three (which in turn is a symptom of the domination of value-
increasingpromotions in the study of salespromotion). This view is confirmed
by survey data showing that 60 per cent of competitors entered"just for the fun
of it" and 61 per cent of entrants into competitions were found to be "unsure of
what the prizes offeredwere" (PL6,1986).
Promotions in general have been shown to affect directly consumers in a
variety of ways leading to retimed purchasing (Doyle and Saunders, 1985),
brand switching (Vicassim and Jain, 1991),increased volume of purchasing
1988;Neslin et al, 1985),product/service-typesubstitutions (Cottonand
-Pupta,
Babb, 1978;Moriarty, 1985),and retail outlet substitutions (Kumar and Leone,
1988;Walters, 1991).
In servicemarkets competitions usually ainý to enoDpragepurchaseretiming
and brand switching. Serviceperishability means they are only consumedone
at a time, so volume-increasingcompetitions are rare (although not unknown:
The Co-opBank offered to match the winner's initial savings account deposit
pound for pound as a prize). Product type substitutions clearly exist in service
marketssuch as those for leisure or transport services.A traveller might take a
Coachinsteadof a train, or tomeonemight choosebetweenvisiting a restaurant
or a theatrefor an evening out. However,such substitutions are unlikely to be a
major feature of services marketing in general. In practice, for most service
markets, there will be diffetence between the channel ind the brand.
no real
Whether oneconsiders Barclays Bank, McDonald's or British Airways, there is
no Opportunity to switch channels without switching bmnds, beyond visiting
oneof their locations as opposedto another.
Ignoring confirmed non-users, we can define four types of consumer in
relation to the service itself:
(1) Potential users who do not use the service, but who could be persuaded
-
to purchasethrough manipulation of the marketing mix. These areoften
the main target of promotions (Keonand Bayer,1986).
(2) ComPetitor loyals successful promotions can attract substantial
-
numbers of a competitor's otherwise loyal customers (Grover and
Srinivasan, 1992;McAllister and Totten, 1985).
(3) Brand switchers distinct "switcher" market segments have been
-
identified, whose consumershop between the various competing bmnds
(Groverand Srinivasan, 1992).
TEXT BOUND INTO

THE SPINE
 (4) Loyal customers- within own-loyal and competitor-loyal segments,we Sales promotion
can distinguish between long-term, brand-loyal consumersand those
who tend to be "last-purchase-loyal"(Kahn and Louie, 1990)who will be
repeat purchasers until encouraged to realign their loyalties.

Týeconsumer
asa competitor
Althoughpromotionsare usually discussedas though they are a distinctive 27
element of the marketing communicationsmix, they are more accuratelya
aztomization of otherelements of themarketingmix whichchangethepriceor
enhance theproductor serviceofferingto attract consumers. The dangerwith
suchalterations to the mix is that consumerscould react unexpectedlyor
tnfavourablyto the changes. Temporarypricereductionsmay be appreciated
byconsumers,but they may also alter their "referenceprice", resulting in
'significantlyreducedloyalty oncethesedealsare retracted"(Dodsonet aL,
1978). Alte aiatively, they may perceive any price reductions as a move
,
dnmmarketor a signof weakness. Changingthe coreserviceon a promotional
basiscan impair perceivedservicequality if anything goeswrong, or may
become an expectedpart of the service package in future if it succeeds.
Competitions, by contrast,canaddvalueto a serviceby makingawareness or
Use of it a "ticket" to enteringthe competition,which minimizesthe risk of
Consumers' perception of the service,its priceand quality beingimpaired.
Wecan divide up consumersinto three types of "competitiveconsumer"
segments accordingto their attitudeto competitions:
(1) Non-competitors- who considerscompetitions a waste of time, stamps
or telephoneunits.
(2) Passivecompetitors- who enter competitions but will not changetheir
normal purchasing behaviour just to enter a competition.
(3) Active competitors- who would changetheir purchasebehaviour (siich
as timing or brand choice)to enter an attractive competition.
Thiscategorizationapplies to consumersin relation to a specific competition.
Althoughthey may tend towardsonecategorization,individual consumerswill
Zovebetween the categories according to how attractive they find any
Competition.An avid competitor faced with a competition which he/she
Perceives as difficult, costly and for a prize he/she already owned,may behave
asanon-coMpetitor.A staunchnon-competitormight break a lifetime's habit if
helshe his/her heart's desireoffered
saw as a prize.
Cross-referencing consumers'competitivenessagainsttheir relationship with
theservice produces a picture of the opportunities which using a sales
Promotion competitionpresents (Figýare 1).
This model suggeststhat there are two key groups at which a competition
C?nbetargeted.First therearenew usersto be gainedfrom converting potential
Users,or poached from competitors. Providing that some can be retained as
ýYalQtomers, ' this
will create long-term benefits through an increase in
 involvement
withservice
Higl'
Loyalty reinforcement
Loyal
customers Added value to retain
and reward loyal customers
Brand Switch Inducement
switchem
Tacticalsales uplift

Competitor
loyal No purchase New customer Long-term
zone capture benefitsIt now
customers
can be converted
Strategicbenefits to loyal customers
Potential Awareness from eroding
user benefits,only competitorshareand
expanding market
94 I'DtheOom- I
Low Passive Active High
=9WxnCr competitor competitor
Involvement
withCompetitions

market share.Researchsuggests that retention is possible because,once

consumerstry a promoted brand and are satisfied with it, they have an
increasedprobabilityof a repeatpurchase,and this is particularlytrue of those
whowerepreviouslynot usersof the brand(Cottonand Babb,1978;Rothschild
and Gaidis, 1981).The potential of competitionsto createsuch longer-term
changesin consumerbehaviour can be shown by the results of a Neilsen
Promotion Service survey in Canada.This showed that 55 per cent of
competitionentrantswill buy a brandspecificallyto entera competition,and95
per centof thosewill selectthe brandagainfollowing the competition.
Second,there are existing loyal or occasional purchasers, for whom
competitionsprovidea reward,or somethingnewand differentto enliventhe
serviceencounter.This will producemoreof a short-termtacticalsalesuplif4 of
thetype moretraditionallyassociatedwith competitionsand otherpromotions.
Sales promotion competitions for services tile survey
-
Enteringcompetitionsasa leisurepursuit hasbecomean increasinglypopular
hobbyamongconsumers. This has resultedin the formationof organizations
suchas clubsand societiesto serveIhe needsof suchhobbyistcompetitors.A
key featureof theseorganizationsis the exchangeand publicationof detailsof
any and all competitions available throughout the country. The authors
recognized that accessto such information networks could provide an
opportunity to explore the nature and extent of competition usage as a
marketingtool.Tapoinginto oneof the largestof the competitors'information
networks provided an opportunity to gather and analyse details of 2.646
 -ent UK salespromotioncompetitionsovera three-yearperiod.Fromthis Sales promotion
,
sample, a subset made up of the 188 competitionswhich weresponsored
nriceproviderswasextractedfor analysis.
formationgleanedfrom specialpacks,entry forms and competitionrules
=tributed to thenetwork,allowinga pictureof the competitionsin action
builtup. The competitiondatawereencodedand analysedusingMinitab.
. ' 29
sample consistedonly of competitionswhich wereavailableon a national
,gionalbasis (local oneswere discounted)and were associatedwith
:otinga productor service,asopposedto beingall or part of theproductor
'iceitself (so lotteries or the numerouscompetitionswhich are regular
of magazines were not included).
--es
must be emphasizedthat the researchwas both opportunistic and
.ýratory.It involved found before
studying something which the authors
ratherthan any form of carefullydesignedresearchmethodology. This
the
wt make resultsany less interesting.The data vacuumwhichsurrounds
zotional competitions makes it impossible to comment on the
esmtativeness of thetotalsample,or theservicessubset.What canbestated
1confidence is that the thousandsof "compers"who contributedto the
ýaion of the information area dedicated group of peoplewho will havemissed
widelyavailablecompetitionsduring the three-yearsampleperiod.It is
ý'iblethatsomelowvaluecompetitions, or competitionsinvolvinga veryshort
*w of opportunity",werescreened outby thosecontributingto thenetwork
el believed that thedetailswerenotworth exchanging. It is alsopossiblethat
w"compers"who discovera relatively obscurebut potentially lucrative
ýPetition might elect not to contribute it to thenetwork. However, despite
tll&
s5ilities, theauthorshaveno reasonto doubtthat theresultsrepresent a very
=e pictureof thestateof promotionalcompetitionsin theUK.

ofuse
e services/goods comparison is beyond the scope of this article,but
I helpsto put thecompetitionsrun by serviceprovidersin the contextof
totalsample- detailsof the total sampleresultsare publishedelsewhere
. andPeattie,1993).Readersshouldbe awarethat many competitions
ýtlvedmorethan onesponsor,so summingthe figures for the numberof
ý-petitions involving different types of sponsor would producea figure
4edmithe total number of 2,646. The same applies to these figures
L-ressed actual
as a percentage of all competitions:the summedpercentages would
ý,ý 100.TableH breaksthe
servicessubsetdownby servicetype.Retailers
toodsaretreatedas distinctfrom serviceprovidersto reflectthe association
tttaLler-based competitions with physical products; however, distinct "high-
4W included (e. Mr Minit). Services for
4ýýIly retail services are g. account
more than7 per cent of all competitions in the survey, which leaves
rather under-represented when one considersthe importance of services
ltýn
thetotal economy.
TEXT BOUND INTO

THE SPINE
 Average
Numberof Percentage
of total Average prizevalue Marketing
Sponsor competitions compefitions prizenumber (rooos) integration
Retailer 1,232 46.6 20 Z64 Medium
Packagedfood 929 35.1 50 3.98 Medium
Consumer goods 517 19.5 11 15 Medium
Groceryitems 344 13.0 14 3.0 Medium
Drink 319 MI. 11 3.0 Medi=
Services 188 7.11 10 5.0 Low
Publications 118 4.5 7 zo Low
Tobacco 39 1.5 15 5.0 LOW
Whitegoods 32 12 20 5.9 High
Charities 25 1.0 15 1.0 LOW
Generic 24 0.9 11 Z3 High
Cars 14 0.5 11 10.4 High
Notes:
1. Groceriesincludeall inedibleconsumables
L 2. Averageprizenumberandvaluearemedianfigures seetext for details
-
160nSsurvey I Marketingintegrationis a modalaveragescorebetweenI (low)and3 (high) seetext for
-
F-"ý=Iary(all details

Average
Services Numberof Average prizevalue Marketing
sponsor competitions prizenumber (JCOOOS) integration
Financial 54 10 U hlediwn
Tourismand
travel 47 10 5 LOW
Foodanddrink 33 16 3 Mediurn
Itisure 23 21 6.75 LOW
Comm=ications 12 8 3.8 Low
Professional 6 4 0.35 LOW
Photographic
and
miscellaneousretail 13 53 4.5 Nledi=
Notes:
1. Av=ge Prizenumber fqures
andvaluearemedian - seetextfor details
44 IL 2. Marketingintegrationis a modalaveragescorebetween1 Cow)and3 (hi&h) set text for
K:rvrjts
SwVey
details -
PAWIS
II=-=y

Servicemarketsinvolved
Figure2 showsthedistribution of competitionusageamongserviceproviders.
Financialservicesare the largestsector,confirming the contentionthat finan-
cial services havebeen spearheadingthe acceptanceof sales promotions
TEXT BOUND INTO

THE SPINE
 ImM&previous non-user markets (Addison, Travel
1988). and tourism showed Salespromotion
V!Lcrýeaduseof competitions throughouta rangeof sectorsincludingtour
!9=OM travelagents,touristboards,transportservicesandhoteliers.This
21Wt Unexpected, sincetraveland tourismis oneof the few servicesectors
ItM salesPromotion, in
andcompetitions particular,makesome impactin
! it LtmtureWiddleton,1988).The foodanddrink categorywasdominated
! Vtstaurantsandfast-food 31
chains.Entertainmentwasmostlyrelatedto
andTV or videorental.
TLeminorusersincludedcommunications (mainlypostal,delivery and
It:Mommunications services), retail services (mostly photographic, but
kdudingothers
suchas Interfloraor Mr Minit), andprofessionalservices
*Z7'ýz4 fromdentiststo solicitors.
h axyaldbenotedthatthere be blurring betweenthe in
categories
can some
';'crzsof the serviceprovider and the serviceprovided.For example,a
Cýr=-"Petition
May berun by a travelservicesproviderpromotingits financial
, 110M suchastravellerscheques, andcurrencyexchanges.
ComPetitionsused
thetotalall-industries
sample,tendifferenttypesof competitionwere
with themajorityof competitions of two types.
beinga composite
icescompetitions mainly fell into There
two styles. were "conven-
competitions madeup of questionandslogan(52percent)or question
(6Percent).Bothquestionsandslogansofferopportunitiesto makethe
1,"M=er consider theservice,theserviceproviderandtheirmerits.However,
It questionandsloganformula is now so commonplace that it lacks the
ýýPlctof morenovelcompetitionforms suchas puzzlesor scratchcards.

Financial
64
Itsm,44a
4T

raphy and
wus fOL211
13

tc"ft
12
and drink
(*Ib,
jfe 33 Figure 2.
23
Distnbufion of competi-
tions,within savice
(Totalsamplesize of 188) markets
 z
USBI There were also "creative" competitionswhich used questionsand a
draw/paint/photographelement(13percent)anddraw/paint/photograph only
(6per cent).Thesearemostlyaccounted for by photographicservicesand
holiday-related for
competitions,andprovidegoodopportunities customer
involvementand interest.Othertypesof competitionall accountedfor less
32 than5 percenteach.
Prizes
For most competitiveconsumers,the prizesofferedare clearly an important
componentof a competition.In a surveyof US households(PIA 1989)45 per
cent of competition entrants named the prize as the determining factor
(comparedwith 36 per cent who werenot particularly interestedin the prize
itself).
We estimate that the 188serviceproviders spent around L3.6 million in
offering 28,391 prizes. Estimating prize values accurately can be difficult
(Selby and Beranek, 1981).Cashprizes, holidays, cars or other consumer
durablescanbe evaluatedrelativelyeasily.Flocksof sheep,parts in films and
lunch with celebrities such as Barbara Cartland posemore of a challenge.
Wheretherewas any doubt aboutthe value of the prize,a very conservative
estimatewas used,so the figure 0.6
of . be
million will an underestimate one in
sense. However, the
this represents retail value of prizes, which is typically
greater than the cost to the sponsor. So the prize value figure is only a very
roughguide to the actual cost of prizes awarded. To this, the costsof planning,
designing,delivering,administeringandjudging mustbe added,to estimatea
total cost of running competitions.The New York Timesrecentlyquotedthe
costs of competitions run by major service providers such as AT&T and
AmericanExpressas exceedingUS$5million.
There are two key dimensionsto the prizes,their valueand their number.
Sincetheattractivenessof a competitionis partly relatedto the expectedvalue
(or,moreaccurately,utility) of winning, and also the perceivedprobabilityof
winning, sponsorscould go eitherfor high prize value or high prize numbers
to attract the maximum numberof entrants.Table 11showssomevariations
betweentypes of sponsorin termsof the averagenumberand valueof prizes
which typify their competitions (the averagesusedare median figures, used
becausethe arithmetic meanis skewedby a small number of competitions
offeringexceptionallyvaluableor numerousprizes).The s=ple, or subsetsof
it, canbe dividedup aroundthe medianvaluesfor thenumberof prizesoffered
and their value,to producefour categoriesof competition:
(1) Jackpots(few prizes/bighvalue;20 per cent of all competitions)- the
Intasun L1,000,000Hotspots competition involved a single million
pound prize, and National Breakdown's only prize was a Mercedes
190E.
(2) Misers (few prizes/lowvalue;32 per cent)- theseare frequentlyaimed
at children or families, offering prizes like toys or family days out.
 Bristol Airport offered a single prize of a jC100discount on a future Sales promotion
holidayinvolvingflights from Bristol Airport.
(3) Everyonea winner (many prizes/low value; 20 per cent) also often
-
aimedat children.The "Running Man" competitionrun by video hire
shopsoffered1,400prizes,mostlyT-shirts andcassettes.
(4) Bonwizas(manyprizes/high value;28 per cent) Barclays' Beautiful 33
-
Britain competitionoffered1,301prizesworth overLW,000.
TheSponsors within both the total sampleand the servicessubsethavebeen
V-sitionedon two prizephilosophymatrices(Figures3 and4)accordingto each
t? O:wr's 'centreof gravity", reflectingthe medianaveragesfor the valueand
flý OfPrizesoffered(althoughthe scalinghasbeencompressed to keepthe
dýýs to sensibleproportions).
The fact that packaged food dominate the "Bonanza"
manufacturers
It ritory within the total survey perhapsexplains the perceptionthat they
dOnýLnate theuseof promotionalcompetitions,sincethey play a leadingrole in
riving away prizes. Services as a whole appear to favour the "Jackpot"
Ph3osophy andareattemptingto attract consumersthroughoneor a few high
`, IUI'-Prizes,rather than by increasingthe chanceof winning through more
Pýzm 7bis couldindicatean attemptat using the competitionand prize as a
TalitY cue. However,there appear to be considerabledifferencesamong
d.4erint service
providers.Leisureservicesare alonein taking a "Bonanza"
ZPProach to competitions,but financial and tourism servicesback up their
*ýýt
I useof competitionswith considerable commi tinent in termsof number,
t'Id Particularlyvalue,of prizes.Foodand retail servicesappearto rely on the

High
[ýveryonea winner (20 per c-enq BonanZ3S(28 per cent)

* Packagedfoods

Retail While goods

Prize
rumb*r
Charities Tobacco
Grocery
Consumergoods Cars
Generic Drink*
Urvices
Publications
or cent) Jackpots(20 per cent)
Figure 3.
Low - High Prizephilosophy
Prizevalue =trix
 zý

High
Everyonea winner Bonanzas
Photographyand
Miscellaneous
Leisure
I Food

Traveland tourism Financial

NIZO
numbei

Communications

ProfG3sional

MISTMý Jackpots
jp-%ýQ I
3,;Cw Low High
ý,J4;
4,
ytmtix Prizevalue

numberof prizesto attract customers;while communications

and professional
servicesshowa low conunitmentto competitionsasa marketingtoo].
The effectiveness of sales promotion competitions
Measuringtheeffectiveness is is
and almost
of competitions not straightfor%vard,
impossibleto do by studyingthe competitionsthemselves. Forserviceproviders
theobviousanswerwould seemto be to analysesalespatternsto determinethe
effectiveness of a promotion.However,this makeslesssensein view of the fact
that 54 per cent of all competitionsrun by serviceprovidersdo not requireany
form of purchasefor entry (compared 25 for
with per cent thetotal sample).
There appears to be little academicresearch examining the effects of
competitionson salesturnover.However,thereis evidencefrom the relatedfield
of generatingmail survey responseswhich suggeststhat competitionsare
effective (McDaniel and Jackson, 1984)and capable of generating *very
substantial"increasesin responserates(GaIrajet at, 1990).
Using short-term salesfigures as a yardstick is also unwisein view of the
variedrolesthat competitionscanfulfil. Analysingthe competitionsused,it is
Possibleto deduceseveralrolesfor them:
SalesuplifftThe clusteringof holiday competitionsvisible during the
traditional Decemberbookingseasonsuggestsa fight for marketshare.
0 Encouraging trial. Pizza Hut ran a "Try ItTraditional American"
competitionbasedon samplinga new(to the LJhjpizzaline.
0 Encouraginguse.BarclaysConnections requiredtheuseof
competitions,
their Connectcard for qualification.
 0 Newproduct launch.Onemonth featuredthreedifferent building Salespromotion
societies
usinga competition to launchtheirnewTESSAs.
0 SeasonaldemandsmoothingThe presenceof competitionsfor ski
holidaysduringMay'does suggestanattemptat demand smoothing.
0 Ateareness raising.The PostOffice'scompetitionsaimedat raising
awareness of postcodes are interestingexamples.To one
enter, hasto 35
answerthequestions, the (by in
use service sending an entry)anduse
One'spostcode correctlyto qualify.
Wing integration
measurethe authors did develop to try and judge effectivenesswas the
rketing integration" of the competitions. Competitions vary in terms of
la either the prize the the have any obvious
or mechanicsof competition
10f synergy with the product or service being promoted. We developeda
crude method of classifying a competition according to its marketing
Or
,-ation as follows:
0 Low - no link betweenproductand competitionor prize.
0 Nfedi= -a link betweencompetitionor prizeandproduct.
* 11igh-product, prizeandcompetitionall related.
ble I shows the integration different
marketing scoresassociatedwith
Z$orsfor the total sample.Servicesas a wholescorepoorly,perhapsowing
a tendencyto focus the mechanicsof the competition(suchas questions
Ltdor slogans than the intangible
required)on the tangible prize, rather
rviceitself. Service categoriesalso varied considerablyin their level of
Xktfingintegration (seeTable10.Over 80 per centof competitionsrun by
tbf=ncial andfoodservicesweredividedrelativelyevenlybetweenlow and
4=te integration. Leisure three-quarters in the low
servicesmanaged
Tourism services,despitehaving the largestproportion in the high
k*"WY M per cent),still scoreda 'low" overall.

Andusions
Fi! vey shows that competitions are a sales promotion technique which is
,.,, g usedby This hopefullydispel
a wide rangeof serviceproviders. will
nceptionthat salespromotion is a part of the marketing mix that
It ýPPY" to services.The
surveymay demonstrate that serviceproviders
t ng M the marketingof packagedgoods,but doesthis makeservice
*tionsthe sameas thosefor tangible
goods?The fact that servicesoffer
'tly high value'jackpot" prizesdoessuggestthat theyare beingusedto
-7 andsymbolize the serviceand to project a "quality" image. There is a
'!ý argurnentusedin competitionsfor tangiblegoodsthat a strongbrand
ýýId be
reinforcedby a "quality" prize,but the needto providetangiblecues
ýýtheservice customer this issue critical for services
makes much more
 marketing. Anotherqualitativedifference betweencompetitions for goodsand
thosefor services thatwasobserved in thesamplewasthat whilecompetitions
for goodsappearto addvalueby givingthecustomersomething extrato have
and to take away,servicecompetitionswerefrequentlyusedto give the
customer something else to do during the serviceencounter. The bestexample
Z6 of this is thecompetitionsofferedin restaurantsandfast-foodoutletswhich
givecustomers something to doandto discusswhiletheyarewaitingfor their
mealto arrive. Although the provisionof a competitionis nevergoing to
compensate for a poorlydesigned or deliveredservice it maymakeanygaps
thatoccurwithin theservicedeliveryprocess ,
lessnoticeable for,
to,or onerous
thecustomer.
Promotingservicesthroughadvertisingis seenas a difficulttaskbecause
consumers find it difficult to understandclearlythe natureof an intangible
service(Bateson, 1979);theyalsofind it difficult to developa list of potential
providersand to evaluatethe serviceboth during andafter consumption
(Zeithaml,1981).Legg and Baker (1991)suggestthat to overcomethese
problems it is necessary to "teach"consumers abouttheserviceandtheservice
provider by providing relevant tangible objects, concretelanguage,
dramatizationsand "interactiveimagery"to link the serviceto the service
provider.This begstwo importantquestions. First, if consumers haveto be
taught,whatis theirmotivationto learn?Anyoneinvolvedin educationwill
testify that you canleadlearnersto knowledge,but youcannotmakethem
think. If, by readingand comprehending informationabouta serviceanda
serviceprovider,consumersbecomeableto answerthreequestionswhich
mightprovidethekeyto theholidayof theirdreams, theyhavesomemotivation
for learningfrom theprovider'smarketingcommunication. Thesecondkey
questionis whetheradvertisingis theonly,or best,mediumfor suchteaching.
Competitionsare well understoodby consumers,the prizesofferedform
tangiblecues,and competitiondesignprovidesplenty of opportunityfor
applyingdramaandinteractiveimageryto theservice.If a consumer spends
severalhourstrying desperately to decidehowto complete a phrasesuchas"I
havechecked out the Leeds travel money service bemuse.. " the chances are
.,
thattheall-importantlink between theserviceandtheproviderwill havebeen
forgedin theirminds.
Examiningthecompetitions themselves in searchof suchlinkages,andto
deduce themarketingrolesthattheyfulfil, will onlyprovidea partialpictureof
their usageandeffectiveness. To developa fuller picture.theperceptions of
competition sponsors andconsumers are important to understand, andthiswill
formthefocusof thenextstagesof theauthors'overallresearch In
project the
meantime, the information that this initial exploratoryresearch the into
competitionsthemselveshas providedforms a useful starting-point to
understand bettertheirusein practice.
Themainconclusions whichcan be drawn from thesurveyabouttheuseof
competitions by services marketers arethat:
 " Despitetheir suitability as a promotionaltool for services,competitions Sales
promotion
still appearto be somewhatunder-represented within servicesmarkets.
Althoughtheir use is growing,promotionalcompetitionsare clearly in
theearlystagesof the innovationdiffusionprocess.
" The useof competitionsas a promotionaltool is now relativelycommon-
placein a range of servicesmarkets beyondthose(suchas tourism) 37
wheretheir usehas beenacknowledgedin the literature.This suggests
that the relative neglect of below-the-linetechniquesis a potential
weaknessin muchof the services-marketing literature.
" There is considerableroom for improvementamongthe competitions
currently run by serviceprovidersin terms of breakingaway from a
veryconservative, formula-based approachto competition design,and in
termsOfCreatingbetterintegrationbetweenthe competitionsdeveloped
and theservicebeingpromoted.
" The fact that over half of all competitionsrun by serviceproviders
requiredno purchasesuggeststhat the conventionalwisdom - that
Promotionsonly aim to generateshort-term,tactical salesuplifts - is
now redundant.Instead,competitionsincreasinglyappearto form an
important part of a longer-term strategy to raise brand awareness,
generatebrandloyalty and to create,captureand retaincustomers.
TheOpportunityto in to integrate
usesalespromotions a strategicmanner,and
6em fully into the benefits beyond a short-termsales
marketing mix to achieve
boost,is opento
any servicesmarketer.Onesuchneatly integratedpromotion
*A-asthe award-winningConti-Flug Airlines campaignpromoting their new
1992Londonto Berlin businesstravellers. The promotion
route,
involveda Carefullytargeteddirect aimed at
mailing of a discount coupon,with a prize
dmwcompetitionto
encourageresponse.Both the mailingand thecompetition
141re laid out to link into theairline'sbrochureformat The promotion%%ras then
advertisedto the travel trade through two trade journals and to the target
audience throughtheEveningStandard.
Sucha carefullyplanned is long way from
and well executedcampaign a
conventionalideasof salespromotion as a marketing afterthought or as a
qtýck-fixto remedythe fortunesof a flagging brand.Salespromotionsare an
Mcreasingly important and integral part of the marketing mix in most
ýrdustrie&Many to involved in
servicesmarketersseemrelativelyreluctant get
t4cs Promotions,but this is perhapsbecauseof the over-emphasis given to
Promotionaltoolswhich are unsuitablefor services.Competitionsprovidean
"rtilent opportunity for servicemarketersto add value for customers,to
diE=tiate themselves from rivals, to generateinterestamongcustomersand
vaff. to generatemailing lists for future promotionsor to accomplisha wide
*earietyof other marketing objectives. But, to borrow a maxim from the
'COMPing" fraternity,'You'vegot to bein to win!"
References and further reading
Addison,J.(1988),uPrornotional rescue",Director.November1M PP.13943.
Bateson, 'Why weneedservicesmarketine, in Ferrell,QC, Browr4SAV.andLamb,
J.E.G.(1979),
C.W.(Eds),Conceptual and Theoretical Developments in 4forketing, American Marketing
.
Association,Chicago, It, pp. 13146.
Cotton,B.C. and Babb.E.M. (1978),'Consumerresponseto promotionaldeals*,journal of
Marketing,Vol.42No.3, pp. 109-13.
Cummins,J.(1989), SalesPromotion,KoganPage,London.
Dickson, P.R. and Sawyer,A.G. (199Q),*The price knowledgeand searchof supermarket
shoppers", JournalofMarketing,Vol.54No.3, pp.42-53.
Dodson,J.A., Tybout,A.M. and Sternthal,B. (1978),OImpactof dealsand deal retractionson
brandswitching",JournalofMarketingResearckVol.15No,1,pp.72-81.
DonnelleyMarketing(1991),"Couponingstill top promotool*,DMNorta Vol.13No.13,P.7.
Doyle,P and Saunders, J. (1985),*The leadeffectof marketingdecisions*, journal of Market
Research, Vol.22No,1,pp.54-65.
Farris,PW.andQuelch,J.A. (1987),"In defenseof pricepromotion',SIoanManarcmentArview,
Autumn,pp.63-9.
FinancialTimes(1989), OlVorldwide marketingexpenditure 1989", Financial Timts, 30 November
1989,p. 13.
Gairaj,A.M, Faria,AJ. and Dickinson,J.R.(1990),OAcomparisonof theeffectof promisedand
Providedlotteries,monetaryandgift incentivesonmail surveyresponse rate,speedandcost",
Journalof MarketResearch Society, Vol.32No.1,pp. 141-M
Grover,R. and Srinivasan,V (1992),wEvaluatingthe multiple effectsof retail promotionson
brand-loyalandbrand-switching segments",journal ofMarketing RtsearrA Vol.29 No.1,pp.
76-89.
Gupta.S, (1988),'Impact of salespromotionon when,what and how muchto buy*,journal of
MarketingResearch, Vol.25No.4, pA 342-55.
Kahn,B.E. and Louie,T.A. (1990),"Effectsof retractionof price promotionson brand choice
behaviorfor variety-seekingand last-purchase-loyal consumers".Journal of Marketing
Research, Vol.27No.4, pp.279-89.
Keon,J.W.andBayer,J.(1986),"An expertapproachto salespromotionmanagermt".Journalof
AdvertisingResearch, No.3, pp. 19-26.
Kotler,P andBloorn,P.N.(1984), *e6q
AI;2? Fýq)issional Smiw, P=dce-l 111LEnglewood Cliffs,
N.
Kumar,V and Leone,R.R (1988),"Measuringtheeffectof retail storepromotionson brandand
Iournal
storesubstitution", ofMarketing Research. Vol.25 No. Z pp. 177&85.
Lai, R'.(1990),'Manufacturertradedealsand retail price prornotions% Journal of Marketing
Research, Vol.27No,6, pp.428-44.
Legg,D.and Baker,J. (1991),"Advertisingstrategiesfor servicermns%in Lovelock.CIL (U).
Services Marketing,2nded.,Prentice-11all,EnglewoodCliffs,W. pp.282-91.
Lovelock,CIL (1984),SenicesMarketing,Prentice-I lall, EnglewoodCliffs,NJ.
McAllister,L andTotten,J. (1985),"Decomposing the promotionalbump.switching,stockpiling
andconsumption increase", paperpresented at ORSA/TaIS 1985 joint meeting.
McDaniel,S.andJackson,R.W. (1984).'Exploring the probabilisticincentiveon mail survey
research", in Bernhardt, K. et aZ (Eds),Proceedings of the AMA's Summtr Educators'
Conference, Chicago,11,pp.372-5.
14WlCtON V (19M.Marketingin Traveland Tourism,Heinemann Professional Publishin& Salespromotion
Oxforct
206artY.NLNL (1985), 'Retailpromotional intra.andinterbrand
on
effects salesperformance*.
hurA41OfRetailing, Vol.61No.3,pp.27-48.
S-A,flenderson, C.andQuelch, J.(1985),*Consumer promotions andtheacceleration of
PMdUCt Purchases% MarketingScience, Vol.4 No.Z pp.147-65.
Pc3ttit.S.andPeattie,Kj. (1993),"Sales survey*, journal of 39
llfg4elingManagement, promotion competitions -a
Vol.9 No.3,pp.271-86.
&Mie.S,andPeattie, Kj. (1994), "Sales in Baker,*Mj. (Ed.), The Marketiv Book, 3rd
promotion",
Od.Butterworth I leinemann, London.
11B(19M).'Prizeoffering-believability to Premium
affectsentrants'response sweepstakes".
lr-u`nfiveBusiness, Vol.45No.3,p.25.
nB 0 989)."Accounting for consumer behaviour: why theyenteronepromooveranothee,
P`rw-i"InIncentive Business, Vol.48No.Z pp.8-10.
Q',Itlch-J-AL(1983), *lt*s timeto maketradepromotionmoreproductive% HarvardBusiness
Review, Vol.61No.3,pp.130-6.
PlIb2MIL At (19CQ, 'What is meantby services? ",journal of Marketing.Vol.30,Octoberý
M 32,&
? M.L.andGaidis, WC.(1981), leamingtheory* itsrelevance tomarketing
-V-hxhild. "Behavioural
" PrOnOtiOnelournal of Marketing, Vol.45No62,pp.70-&
StIbY. ER andBc=ek, W,(1981), andsurvey% The
"Sweepstakes contests:analysis,strategies,
Alný ExOnomic Review, Vol.17No.1,pp.189-95.
Sbuhz, DZ (19M."Aboveor belowtheline?Growthof salespromotion in theUnitedStates',
11,t,crudOnallou rnalofA dverksing, Vol.I No.6,pp.17-27.
S:r-itkPJL(1993). MarketingGommunications. Integrated APProack Kogan Page, London.
-An
Str"& PLA.(1976), 'Salespromotion:fastgrowth,faulty management% HarvardBusiness
&tiM VOL 54,July/August, pp.115-24.
TdLs.Gj. andGaeth,Gj. (1990), 'Bestvalue,price-seeking theimpactof
andpriceaversion:
ý:'*rlnationandlearningonconsumer ofAlarketing, Vol. 54 No.Z pp. 1145.
choices"journal
rr`ý"14 DRZ (1978). "Strategyis differentin servicesbusinesses', HarvardBusiness Retiew,
Vol.56No,4,pp.15&65.
TOOA A. (1991),
Crackindacht- SalesPromotion Techniques andHowto UseThemSUCUS04,
MlleciMSandhurst.
NJ.andJain,Da (1991). *Modellingpurchase-timing and brand-switching behaviour
11x4rPorating explanatory variablesand unobserved heterogeneity"journal of Marketing
Atst,arckVol.28No61,pp.2941.
14'91tem R.G.(1991), 'Assessing theimpactof retailpricepromotions onproductsubstitution.
'COMPLM=tary purchase, and interstoresalesdisplacement". Journal of Marketing, Vol.55
NO. Z pp.17-28.
74 VA.(1981VIlow between
differ i in
consurnerevaluation processes goods and serv ces'
Donnelly, J.11.and George,W.R. (Eds),Marketingof Services, AmericanMarketing
A460ciation, Chicago, IL,pp.18&90.
U'thlml, V-A.Parasuraman, A. andBerrI4LL (1985), "Problems in services
andstrategies
"ý4ting"#Journalof Marketing, Vol.49No.Z pp.3346.
 Publication N5

Tronloting financial services with glittering prizes'

The International. lournal offlank MitirldifIg

Vol. 12,6,1994, pl). 19-29.

 FINANCIAL PRIZES
WITHGLITTERING
SERVICES 19
__PROMOTING

are some sales promotions tools which Severalfactors underlie the growth in promotions
considerable opportunities for effective (Addison,1988;DicksonandSawyer, 199(% Quelch,1983;
Ifing communications. Shultz,1987,Strang,1976).
0 Rising prices and advertising "clutter". eroding
massmediaadvertising'scost effectivenessas
consumers become increasingly desensitized. The
effectiveness of services advertising can also be
hampered by theirintangibility(Rathmell,1966).
Promoting 0 Grouingsakspromotionsrespectability-
increasinguseby marketleadersand increasing
through

professionalism amongsalespromotionagencies.
Financial " Shortening planning time horizons:
canmakethefastsalesuplift,that promotions
timepressure
are
a perceived to offer,attractive.
" Aficro-inarkelingapproaches: as a responseto
rvices with fragmentingmarkets,wheresalespromotions
providemoretailoredandtargeted communication
thandomassmedia.
Glittering "A "snowbal" effect.Lal (1990) suggests
in marketswherepromotionsbecomecommon.
that firms

placeare almost obliged to follow suit, or risk

prizes
10 losingmarketshare.
Despitethis expansion,and despitefinancialservices
takinga leadin bringing salespromotionsout of their
traditionalstrongholdof packaged foods andconsumer
goods (Addison, 1988), attitudesto%k ardssalespromotion
SuePeat6e
andKenPeattie, financial services have traditionally been
within
somewhat ambivalent. This wasperhapsmostclearly
demonstratedby the Halifax Building Society's
"W'nJOurnil
of BankMarketing,
VoL12No.& 19A,pp.1929 advertisingcampaign which posed the question: ONow
C MCBUniverlitYPreW026&2323 is how
thereare Halifax estate agents, this otheragents
will sell their houses? * and presented a picture of two
housestapedtogetherundera *twofor thepriceof one"
bannerandanotherw&itha badly integratedextension
labelled"Z percentextrafree"(Cummins, 1989).
- TheGrowingUseof Sales
This article aims to demonstratethe relevanceand
Pick tip any financial services marketing tm the promotion tool which
t'ý%Iare fairly high appropriateness of one sales
ý4'tv-ýnz mix
that one important part of the
representsa growing phenomenon within financial
will be conspicuous by its absence- sales thepromotional competition. The article is part
1`4=46ciLlet,
sales promotion is a major part of modern
services,
1-411ning
activity. Growth in promotions was rapid of anongoingprojectexaminingtheuseof competitions
'ýý449at 1980s and by the end of the decade it had as a salespromotiontool,through studiesof competitions
Rlobalexpenditureon "above-the-line"advertis-
themselves,their sponsorsand the consumersthat
respond to them.The project began with a three-year
",4 11=0rdingto MVP group figures (Financial Times, involving 2,616 Mithin
Ues nationalsurvey competitions. this
*4 Promotiongrowth currently runs at 9 per 188 run by service
'" Cc"=Iparedwith 6 percentfor totalsample,therewere competitions
advertising(Burnett, of 57 were relatedto financial services.
andfor manylargecompanies providers, which
promotions already
for 70percentof themarketingcommunications
ýý4tt Promotions
are often defined as marketing
tr ...
activities do include Promotingrinancial Services
IJ-==Ications which not importance,it is easyto seewhy
IinZ selling or public relations;or evenmore Despitetheir gro%ving
As'a ecialoffers".Although such simplistic salespromotions are in
overlooked the financialservices
s aresomewhat flawed,theywill sufficefor the Most
literature. 'below-the-line*actividesrely on having
'*IAO of thisarticle. It is to offer10per
a tangibleproduct. not verypractical
P3,
INTERNATIONAL
JOURNAL
OFBANKMARKETING
12,6

W.-I km free samples or "two for the price of one", Citibank offered 500
pro-bike race sponsorship,
: ==pting to lend money. "Citibikes7 prizesalongwith T-shirtsand
ascompetition
hat giveawaysto thosehandingin a couponfrom the
Lýeeconomy asa whole,coupons andotherforms competitionbrochure.
; nCe=n: pulationare the dominantform of sales
I lowo-er,price-basedpromotionsaredifficult Thereare severalaspectsof competitionswhichmake
'4'Potsiblydangerousto usefor financial services them particularly suitable for financial services
-0-ders for two reasons.First, setting prices for marketing.
60-tsis an alreadydifficult
process(Thomas,1978); 0 Dffcrentiation opportunitid Kotler (1988) identified
§*=d4 consumers often usepriceas a surrogate differentiation as a key
r:,T--Vof qualityGellisandGaeth,1990). creating competitive
in
challenge servicemarkets since innovations can
'ýrZ6 be rapidly copiedby competitors.Competitions
, (quotedin Lovelock,1984)suggeststhat promo- offera useful source of differentiation. Although
Pricingwithin financialserviceshas not proved theycanalsobereplicated, "me-too"competitions
bemuse of. failure if have exhausted the
risk early competitions
* MI'livelY high customerloyalty, current supplyof availablecompetition-minded
thed3n= of Pricewars, suchas the "disastrous" consumers.
Pice U-M %raged in the USA overfree checkingin 0 Link-up To
opportunities. above-the-line promotion
b=ks: PR Abbey National rana majornational
or efforts.
diu)Duntingto stimulate trial being less TV advertising campaign which featured its 0open
effective
L'Imfor goods, anaccountand%ina car"promotion.
Theoften crucial role of pricing in overall 0 Addiiq a tangihk ditnension to products. Services
PWtioning. cannotreadily be displayed (Rathmell, 1966), but
competition posters and leaflets provideoppor.
10*9kof AddedValue tunitiesfor interesting, tangibleandvisiblepoint-of.
salematerials. Barclays have regularly used leaflets
',-I baRd Promotions
manipulate the quantity/price
'"M to increasethe perceived andpostershighlightingcompetitionsand their
value of a product prizes
'--4 As the Halifax advertisement implied, such
" 6=sing" 0 Quality cueappeal. The intangibility of services
promotionsgenerallycannotwork for to look for surrogate "cues' to
I Strvices by
an increase in quantity, and prompts customers
t,'tfW? canonly work through judgeservicequality.Thepursuitof "qualitycues"
potentially dangerous among financial services competition sponsors is
1,Cz3ndi=ge erodingprice
reductions. in their choice of prizes. The camoffered
reflected
%%vre not the usual 1.1Metro, but included the likes
tr group of salespromotions, which are often Mk 11Jaguar, E-Type 13g
of a Vicarage an and a
arethe "valueadding" (sometimesreferredto
P462Z'4 UPI promotions.Theseleave RangeRover(all from Lloyds); while holiday
the price and destinations includedtheCaribbean (Barcla)-card,
"t P'Oductlserviceoffering the
ýýcr something untouched, and offer ClydesdaleBankand Nationwide/Anglia), the
extra" in the form of a free gik a Seychellesand Mauritius (WoolwichBuilding
'ýM'b3ck"complementary
product,or a competition. Society) and a trip on the Orient Express
11ý Value-adding tools (Staffordshire BuildingSociety).
ý within the sales promotion
`44, '4!licý financial services
marketers have begun to 0 Dcmand smoothing. The perishabilityof services
"AV-1during the last meansthat demandfluctuationsare the "most
ten years. The opportunity
,jI ik by such techniques in troublesome" services marketingproblem(Zeithaml
I was reflected the title of
with RodneyWoods(as Group Marketing et al, 1985). Competitions canencourage purchases
"'C'12t the United States Trust Co.) in during usuallyslackperiods,or cansupportan
published
"11ý4 (1984) OFinancialServiceMarketers Must
- attemptto bring forwardseasonalpurchasesof
4`4hdage GoodsSellingTools". productssuchastravellers cheques.
0 Consumer interac&n.Interactive marketingis vital
VQAlb in competitions for services (KotlerandBloom1934), butdifficultto
within financial services,
in America,%%ras 1987in through is generallya
ý"14'14ing noted as early as an create advertising. which
Age feature entitled "Banks Add Sweep- absorbed
LOFinancial Rewards".In
unidirectional meansof communication,
many casestheseare by
relativelypassively thepotentialconsumer. One
4 OPenan accountand win a found that 25 cent of TV viewers
2'y Ck*be prize" competitions, study under per
Part of larger,more integratedmarketing couldrecallan advertisement seen on the TV the
ý`ý60ns campaigns.To tie in with its "Cititour" day, that under 10 percentcouldname
previous and
 3brandtheysawadvertised onTV 30seconds later For financial servicescompetitions,it is mostly purchase
'A'zmPhoned by a marketresearcher (Bogartand retiming and brand switching that are relevant Services!
Uhman, 1983).Competitionsby that they are only consurned one at a
contrast can perishability mean
Cre3te realinteractionand,involvementbetween time, so volume increasing competitions are rare
!Lecustomer, theserviceandtheserviceprovider. (althoughnot unkno%kia; the Co-opBank offeredto match
This m3yinvolve the customeranalysing the initial deposit
the competitionwinner's savings account
kr%iceto answerquestionsor devisea slogan, for Product type substitutions
pound pound as a prize).
sendingawayfor information, or meetingthe in investment target for
may exist terms of choiceof
Wrice provider(therebycreatingnew service be feature,
but
example, they are unlikely to a major and
cxo=tcr opportunities).
C*11cerfainty.Barring accidents, for practical purposesthere%ill usually be no difference
competitions
involve predictablecosts and are more cost betweenthe channeland the brand.
eective in maintainingperceivedquality levels
tlýlp *giveaway"promotions.This is because Ignoring confimed non-users,wc mn definefour typesof
in relation to the serviceitself-
twing customersattractive "freebies" which cons=er
Projecta quality image can be prohibitively (1) Potential do
usm who notuse the service,but who
OPensive (particularlyif demandis unexpectedly do
could persuaded sothroughmanipulation
be to
L'Zh.as Hooverdiscoveredto their
cost).Give- of the marketing mix. These are often the main
212rScanstill beeffectivewherethetargetgroup targetof promotions Neon and Bayer, 19SG).
of customersis relatively small, the long-term Totten (1985)
butinessPotentialis good,and the (2) Competitor McAllister
loyals. and
utility to the Grover Srinivasan (1992) show that
tZatomerof a "freebie" is high (children and and and
Midentsbeinggoodexamples). successfulpromotionscan attract substantial
Air-clPaYlystability. numbers of a competitor's otherwise loyal
A competition addsvalueby
=king useor a%%-areness of a financialservicea customers.
*bdZ* toenterthecompetition, withoutanyneed (3) Brand switchers.Grover and Srinivasan (1992)
10alterthepriceor natureof thecoreserviceitself. founddistinctOswitcher* marketsegments whose
Thisavoidsany danger hop between brands. The
of sparkinga pricewar, consumers competing
Ucidentallyimpairingperceivedservicequality, importance likelihood of suitching in financial
OrJOWering and
thecustomer's reference price. depend on the switching costs for
4riatility. Competitions serviceswill
are associatedwith differentproducts.Frequentlychangingthe
Producing short-termsalesboosts,but they can location deposit account is unlikelyto appeal
of a
'MrInbuteto%%-ards a rangeof communication and to a consumer, eventhoughtheymightpurchase
lwltr marketingobjectives(Peattieand Peattie, from whichever provider
W933). Competitions their travellers cheques
canprovideusefulsupport hada particularly attractiveoffer.
IQrrXwProductlaunches, for exampleduringone
Monththreedifferentbuilding societiesuseda (4) Loyalcustomers. Withino%vri-lo)-al andcompetitor.
,Mez-Petition to launchtheir newTESSAs.They loyalsegments, we can distinguish between long.
M'I alsohelpto changeconsumerbehaviour;for tern; brandloyalconsumers andthosewhotend
txzmPle.in order to encourageconsumersto tobe Olastpurchase loyal" (Kahn and Louie, 19W),
Mrchase using their direct debit cards, the tend to be repeat purchasers untilencouraged
B=13)-VConnections who
vf 2 Connect
competitionsrequireduse torealigntheirloyalties.
cardfor entry
ComptWonsand ConsumerBehaviour as a Competitor
TheConsumer
`rP=4 havebeenshowmto Consumerscertainly like competitions.Surveysby
affectconsumersdirectly Week
Harris/Marketing (Cummins,1989) and Incentive
s,leadingto:
YOf%%*a),,
(1992), that 70 per cent of UK
Ivi-Modpurchasing(Doyleand Saunders,1985); ,11arketing show some
in
consumersparticipate product. or service-related
tMd switching(Vilcassim
andJain,1991); competitions.
litcreated volume of purchasing (Gupta, 1988;
'Ný. n ef at, 19M); I'Vecan intuitively divide up consumersinto three types
PtWuct-type substitutions (Cotton and Babb, of *competitive consumer" segments according to their
1978.Moriarty,1985); attitude to competitions-
ttwe substitutions(Kumar and Leone,1988; (1) Non-competitorswho would considercompetitions
'Walters.
1991). a wasteof time, stampsor telephoneunits.
 '2, PdSS" COMPOitors who into competitions were found t(, be
would enter competitions per cent of entrants
but would not change their
normal purchasing unsure of what the przes offered were"
behaviour just 1()
zi competit, ()n. Incentil-CBusipless.
1986).
2; ACIIE'r romprlitt)rs
who would change their
Purchase behaviour (such as timing or brand Cross-referencing the consurner's, competitiveness against
chowe) to enter an at i ractive conipctition. their brand involvement, produces a picture ()f the
opportunities which using a promotion competition
0 mVinant to note that tills classificatmi-i is for people
1'rlltxm to a given product or presents (Figure 1).
Ina%.\ý-ejj
ý'Itcbbrl'ween Categoriesin relation to theattlactIN"elless,
The implication ()f tills m(6-1 is that there :it-(- two kvv
6 Vven competition, which, according to Selby and New
call be largeted at.
wwxk (1981).is a function of five factors: groups that a competition
be developed from among the pwential
(3) d* CY)st customers (,;in
of entering: users and some imached from competitors. and
tt* Monetarý' value of I he prizes (or perhaps more (providing that sonivare retained) this will provide lmig-
bcxuralelý-the utility of the priIzes): tern-1 benefits of in increased customer base and an
the number of prizes and the percelved expanded market. Research suggests that this is
probabilitN because try a promoted brand ; in(] are
W wmninR: c()nsurners who
it have in increased probabilif y i)f ;I repeat
s.atisfied with
'44 1.he pleasures of gambling (()I- perhaps niore This is true of previous iwn usel-,
purchase. particularly
&xurately of competing); and Babb. 197S. Rothschild and Gaidis, 1981).
(Cwton and
(!4 the desweto
occupy leisure t inie. The potential of competitions to create such change, in
behaviour is shown by the results of ,I Neihvil
01 (X)Wludethat all five factorsare important, but that consumer
Promotion ývrvices in Canada This sh(iwed 111,11
'Il-x)r=cr of the last two has been bý- in
survey
obscurcd will us(, I hrand
"IMPhasis on rat Iona I decision-making 55 per cent of competition entrants
-econoni I(- 9.
10'rechesbased around the first threc. This specifically to enter a competition. and ) per ccrit of
view is brand foilmving
'ju backed up by survey data those wili select the again the
revealing that 60 per
rnif-Ird -111ý1 t(IT IIIv hill (it it" and 61 ( '( it II I)( 'I ýID -Tý

(C/

Relaisonship
with sorvice

-77- 7,

-- ------------

I
4"J,
'

No purc
zon

Awaror
Ube?!, bonefil-.,

Weak I
Low
Passive
competitor compelitut

Involvement with competitions

 4a benefitcomes from increasingthe usageamong these competitions, which was encodedand then
-
-Islor omasionalpurchasers.This will producemoreof analysed using Minitab. The sample consisted only of
tlort-term tactical sales uplift, of the type more competitions which were available on a national or
-!;ti=lly associatedwith competitions and other regionalbasis (local oneswere discounted) and which
A competitioncanrewardloyal customersby wereassociated a
with product or as
service, opposed to
value and perhaps adding some "spice" to beingall or part of theproductor service itself (so the
customerrelationships.In financial servicesit is features of
numerouscompetitionswhich are regular
=common to find competitions open to account magazines were not included).
'ý;'Scrlonly.Although such promotionsmay encourage
lirtr,=inz of newaccounts,a key effectwill be to reward It is impossible to say how representative the sample is,
Axtant existing customers.This is importdnt for there figures on the total number of
sincp are no reliable
for example,becausea bank accountis a competitions being used. What can be stated
promotional
Aiýchis easyto takefor granteduntil something is that the many "compers" from all over the
confidently
-.=z. The challengefor bank marketersis to draw who contributed competition details are a
country few
onto a scrvicewhoseusecould otherwisebecome dedicated group who will have missed relatively
ta'-W that consumerinvolvement brand loyalty
X6XL%e, and %videly availablecompetitions.

The useof competitions as a tool in financial services

be studied by analysing the 57
marketing can 188
*6 PmMotionCompetitionsfor Financial competitionswhich were included in a subset of
'PAM- TheSurvey competitions sponsored by various service providers.
The total sampleprovidesopportunities to study how
Ourninvolvement
It &I-Al-Wif in enteringcompetitions
by financial to
I hoLbyled themto appreciatewhat a widespread, competitions are used services, and make
ýTin&Vematile comparisons, with other types of services and to tangible
andcreativemarketingtoolpromotion- in
D'=Pditionsare.It wasa naturalprogressionto use goods.Theresultsof the total sample are summarized
- t'Perience of competitions,and the accessto the Appendix to provide a context for the servicesand
!ýT=fion on the financialservicessubsets. to
and allow the reader to draw
competitionsthemselveswhich between financial and tangible
0"-4'4'at=
in theworldof serious"comping"brings,to comparisons services
4 6Cux of competitions (although a detailed comparison is beyond the
in marketing. goods
scopeof this for
article, further details on the total sample
114horsgathereddetailson 2,646differentUK sales see Peattieand Peattie,1993b).
Competitions periodby using
overa three-year
IZL
kit%twork of fellow"compers" as information of use
Extent by financial
t ils from specialpacks,entry forms and Table I puts the sampleof competitionsrun
ruleswereall studiedto buildup a pictureof service providers in the context of the services subset.

Smices Suncy ResultsSummary

Averageprize NUrket
Numberof Averageprize
*ZWX value (rows) integration
competitions number
&4 Medium
54 10
5 Low
andtravel 47 10
Jmddrink 3 Medium
33 16
cmýn &775 Low
23 21
ý4--Mýtions 33 Low
12 8
hý6wcgw 0.35 LOW
6 4
hlx'V'Pýc
and Nledi=
ftwx: 4nomsretail 13 53 45
'Noks"
hite number andvaluearemedian for thetotal
numberandvalueof prizes per
awrarded competition
averages
Iluiding integration
isamodalaverage between
score 1 Cow)
and3 (high)
-see textfordetails
714fiAncial categoryfor thistable financially run by othert)I)esof provider
service - e4ý
excludes relatedcompetitions
t"SWagents
Lu I IVERNATIONAL
JOURNAL
OFBANKMARKEnNG
12,6

iomasa wholeaccountfor fractionallymorethan7 analysis of all services in Table I are therefore

;,I cmtof all competitionsin the total survey,which supplemented by three competitions originally
trl% d&'nratherunder-represented whenoneconsiders categorizedasrelating to other forms of serviceprovider
=portanceof serviceswithin the total economy. to givethetotal of 57 whichrelatedto the provisionof
J'=zziial services financial services.Table III presentsan alternative
are the largest service sector,
"t-nrzing Addison's(1988)contentionthat financial presentationof results broken down by the financial
*-ni= havebeenspearheading theacceptance of sales serviceprovided.
ýP-=60namongpreviousnon-user markets.
As mightbeexpected. thebanksandbuildingsocieties;
andmortgages, loans and foreign currency transactions
ýOKWS*McesInvolved dominated.Theseaccountedfor three-quartersof all
14c 11showsthe distribution of competition usage competitions run in relationto providersandto services
t"-IT4 Enancialsmice providers.It shouldbe notedthat providedrespectively.
ý ce c;tn be someblurring between the categories in
I-"=$of the serviceprovider and the service provided.
ýWrximple, Notvre of CompeitionsMod
a competition may be run by a travel
Providerpromotinga financial service such as Financial services providers adopted a relatively
ý-4431erscheques or currency The 54 conservativeapproach in devising the competitionsthat
1 exchanges. involving
Scr%icescompetitionsoriginally classifiedin the they used,with 84 per cent the answering of

11, Smite$Survey
Results
SummarybySmite Proti*r
ý'k46 -
&rVirts Numberof Averageprize Averageprize Alaricet
r,r twx valueWOOOS) integration
competitions number
LWIS 20 Low
25 11
LUI&-4 VC; 6 6.5 Medium
eties 18
cit-la 6mices 4 Uw
6 18
kmc4Lst 26 23 Mcdiumlhiigh
services 4
Slý=duT 61 43 Iligh
serviceproviders 4

'0) Prizenumberand valuearemedianaveragesfor the total numberand valueof prizesawardedper cOnlPetition

Q XuIrting integrationis between I Cow) and 3 (high)
a modalaveragescore
Q 714 57 financial include by sponsorswho am not primarily financial services
servicescompetitions three of those run
in
Mviders. which werenot originally classified as financial services the analysis of the services&arnpit presented in
Tible I

11LFinatulal ScnicesSurveyResultsSummary by Srnice PrOvIded

-

&n-i4rs Averageprize Ntvket

Numberof Averageprize
intecration
'r,MVx
competitions number value WOOOS)
14r,vzes 10 LOW
and bans 28 9
T'fxtin 5.915 Iligh
exchange 14 7
Ckrdbabed 5.4 Medium
smices 8 26
"'--'bifJnS 75 Medium
Wid insurance 4 8.5
M*X,IVxou$ 2.25 Medium
3 26
VIlt's-
I'hze number (median) and total value of prizes awarded per Competition
and value represent the average number
ýUAýZ integration is a modal average score between I Cow) and 3 (high)
 PROMOTING
FINJUICIAL
SERVICES PRIM
WITHGLITTERING

81Percentinvolving a slogan.Only oneof (3) Everyonea winner (manyprizestlowvalue).A

tit tions was jointly sponsored with another by the Post Office
postalordercompetitionrun
P-Mý=Y-This was somewhat surprising 101 low value prizes linked to the
given the offered relatively
%'Pxt-"ýýs that competitionsprovide,to link TV programme Coronation Street.
up with a
t'A"-'-=Crgoodsmanufacturer
tl=d a high-qualitytangible
and run a competition (4) Bonanzas (manyprizes/highvalue).BarclayloanIs
product as a prize. BeautifulBritain competitionofferedover 1,300
prizesworthoverL80,000.
14 Mosq Thetendencies of differentcompetition sponsorstowards
competitiveconsumers,the prizes offeredare by
4'x! Y an important component particularprizephilosophies can be demonstrated the
of a competition. The Figure 2 presents
Inccntire BusinesslBetterHomes & Gardens creationof a prizephilosophy matrix.
'i2WIG. 1989)surveyof 500US householdsfound that such a matrix for the overall servicessubsetwhich
ý' (5 Pcr reveals that financial services and tourism back up their
Centof entrantsinto competitions,the prize is
&Uý, i Ig factor (compared frequentuseof competitions with considerable commit.
with 36 per cent who
W iw=tsted in the prize itselo. mentin termsof numberandparticularlyvalueof prizes.
Breakingthe financialservicescompetitionsdownby
=imate that the 57 competitionslinked to financial both serviceproviderand serviceprovided(Figure3)
in%vlved offering5 821prim at a costof around revealsthat:
=Zon. Selbyand BQnek (1981)note the problems 0 The larger institutions, the banks and building
1ýýk==Idy estimating had clear jackpot mentality,perhaps
prize values, which worsen as societies, a
; riýmMOveaway from their to afford large prizeswith
easily valued products such as reflecting ability
"" holidaystowardsmore unusual theright qualitycueeffea
P'IýmVxh as lunch or experiential
with BarbaraCartlandor a part in a 0 The money being invested in competitions by
Mxre there%-as any doubt about the valueof the banksis quiteastonishingý with a medianvalueof
A very conservative estimate was used. So the 000 in being The nearestany
j=, prizes offered.
(4.Cl-I million will be an underestimate in one to this figure in the total
However,this othersponsortype gets
representsthe approximate retail s=ple is the X10,400 for carcompanies.
ý,'XdPrizes (whichis typically greater than the
costto The institutions competitions run for
The prizevaluefigure is only a rough guide 0 smaller and
&MJ31 cardservices tend to attract consumers by offering
cost of prizesawarded.To this, the costsof
41ýnz, designing, delivering,
administering and moreprizesof relativelysmallervalue.
must be added,to estimate a cost for running 0 The medianaverage value of prizes offered in
The New Ibrk Times recently quoted the almost all forms of financial servicecompetitions
*=4>efitions for foods,
run by major serviceproviderssuch exceeds those packaged consumer
rcicaý Expressasexceeding$5 million each.There goods,retailers, groceries and drinks in
- other
*4" IndLmensionsto the
t'ý'týttr, Since prizes,their valueand their words, all the traditional strongholds of the
the attractiveness of a competition is promotional competition.
I'03tedto the expectedutility and the perceived
0ý'4417
of winning,sponsorscould rely on high prize
ý11ýlf or high prize numbers (or both) to make the
f"'04MUM
impact. Table 11shows that among different 1fatrix
rigure 2. SeniresPrim110osophy.
"UM4 Wvices sponsors,the
averagevalues for the
4-; nTand total value of prizes which typify their High
Uons vary by a factor of ten and eight
Y(e averagesusedare medianfigures, used Ph*MOd ftKODS1100-1
the rithmetic mean is skewed by a small
Of Prizes offering exceptionally valuable or Food0
Wizes). The sample,or subsets of it, can be
d the medianvalues for the numberof plito
Cda'odand their value,to producefour categories numbw V4
V 10~
cof"nViWAwAs 0!
144POIS(few
prizes/high value). A Lloyds Bank
Pmtions competition offered an E-Type Jaguar
Vtj four NIGMidgetsas prizes.
ýAlcrl (few
prizes/low value).Birmingham Mid- Low
L%ItrsBuilding Societyoffereda single weekend LOW Flm:Q Vow
LC t%*0in Madrid in
a travel moneycompetition.
 INTERNATIONAL
JOURNAL
OFBANKMARKETING
12,6

I Awncid SenicesPrizePhilosophy by 6 per cent (Friesen,1989).More spectacularly,the

Matrix Lippo Bankof JakartaIndonesiais marketingstrategy
for 1989relied on a major competition offering the
"0 The
Evept" a *kIriff potentialof prim for newcustomers. resultwasa
Bonanzas in
Sooondary 0 164per centincreasein loans,a 345per centincrease
SON"S
Specialist depositsanda 432percentincrease in assetsfor theyear
0 Ovivam basw
momfiarwous
Card0 (AsianBusiness, 1991).
CtOOK
0
forvices MarketingIntegraWon
fIrm Banke
One measure the authors did devise to try and judge
Mortgageand
competition effectiveness, was the 'marketing inte.
loans
0 Pensions
Foreign arid gration" of the competitions. Competitions vary in terms
exchange0 insurance
Building of whether either the prize, or the mechanics of the
society competition,relates back to the product or service being
promoted. We developed a very crude method of
Law
"fors Jackpots
; Bc)ymrg classifying a competition according to its marketing
Prize value High integration as follows:
NW 0 Low - no link betweenproduct and competitionor
* lwvu prov4wa TypeOf"Mco prize.
0 Afedium-a link betweencompetidonor prize and
product.
0 High - product,prize and competitionall related.
Of"veness of SalesPromotion Table I shows the marketing integration scores
associated with different service providers. Services
E;lw4cUý-njtheeffectiveness
of competitionsis not simple, overall score relatively poorly compared with goods,
- is 31mostimpossible to do just by perhaps owing to the intangibility of services and a
studying the (such
"M; -cý1,ionsthemselves. Oneobviousanswerwould tendency to focus the mechanics of the competition
Wbeto analysesalespatternsto determinethe as questions asked or slogans required) on the tangible
4z::ý'Arlms the itself. Financial service
of a promotion.However, thisdoesnotwork prize, rather than service
Z=Peýtionswherea purchaseis not providersweregenerallynoexception to this, with 80 per
'r,"Its Potentialbenefits increased necessary,and being div%ided relatively evenly
4 of centof their competitions
11`r-%Wd awarenessor between low and moderate scores for marketing
satisfaction among existing users. It is
1-",
cttr1i*vtonotethefactthattheproportionof financial integration. However, there was some clear variation
0"locsCompetitions which is much betweenthe types of serviceoffered. while most of the
t'.JIMEne required a purchase loan featured low
. uriththetotalsample(which%%-as dominated mortgage and related competitions
14nZileproducts)thanwith the integration, most of the foreign exchange related
44ým(stt TableIV).This rest of the services highly for integration (See Table 111).
suggests thatRodneyWoods' competitionsscored
beenheeded, with financialservices marketers
'tL"I to The generally poor showing among financial services
adoptcompetitions asa sellingtool. "hang"
might relate to the lack of a tangible product to the
"idence that exists on the effectivenessof the competition around. It might also relate to the lack of
; "-Uonsrun by financialinstitutionsis patchy,but collaboration in the competitions, since all but one of
-1 *'Y The themwere soloefforts. In the total sample for all industry
Positive.
-10ý701-Mb "QuickDrawSweepstakes" run involving
Financial Corp. (the biggest banking sectors,only 22 per cent of the competitions
in Kansas)increasedtheir credit card dual sponsorship were classified as low in marketing
1tionby 3 percentandtheirdebitcardpenetration integration terms,comparedto 48 per cent for the single
. This that two
sponsor competitions. perhaps suggests
marketing heads are often better than one.
f'ýOkrtiOn01COmPetitions
Requiring
Purchase
Gettingthe Most out of Competitions
Total Other Financial Like any elementof the marketing mix, getting the
sample services services benefitsout of a competitionrequirecarefulattentionto
Itt='3V be
Of CDMpetitionS planningand execution. Running competitionscan
l"'JIMýguiring
a P=hase 25 66 25 somewhat as
unpredictable. one of theauthorslearned in
conversationwith a Canadian academic who had
['*rri(rusly
workedfor oneof Canada'slargest trust (7) Evaluation. How will the effectivenessof the
Th& first forayintocompetitions drewsuch bc
competition measured in terms of achieving its
-1ý090ck4ymassive response that in orderto judge objectives? Who should be responsible for
4 M=Pclition in accordance with therules,theyhadto evaluation, whenandusingwhatmeasures?
,J 33theentriesinto a speciallyhireddumpertruck Although thesepoints mayappearto be very mucha
4 cute a Mountain of paperin thecompanycarpark. sense, even large and sophisticated
4: 0 Professor matterof common
wasthenblindfoldedandmadeto walk companies, with a long trackrecordof successful sales
te ciiddleof thepile,afterwhichhe if is
waspulledout be
promotions,can caught out a promotion not
r*e clutchingtwo fistfuls of lucky winners.This if the fundamental questionsare
=cd a delightfullyzanypictureof financialservices carefullyplanned, and
notasked. I loover's experience pales by comparison with
in action,but illustratesthe needto plan a by Pepsi-Cola in the
implementation a bungled competition run
soonerratherthanlater. Philippines has the
which cost company ovcr.C8 million
so far,has led to them facing over 22.000 lawsuits, and
'.Pitz&at over 2,600competitions has helped the
X-'m to developsome insights into the art of has provokedriots, death threats against company
executivesandgrenade attacks on Pepsi lorries.
11ý*nz salespromotions compefitions.Otherauthors
1-tIs Toop(1991) andKeonandBayer(1986)haveput
rllz'd Useful planningguidelinesfor marketerson the
'4::'- sof runningsalespromotions, Wehavetried
&ddto this by developingthe COMPETEchecklist Conclusions
'14mitand Peattie, 1993a),specifically to assist Thereareseveralconclusions whichcanbedrawnabout
in planninga successfulsalespromotion theuseof competitions for financial servicesmarketing
7bechecklistpromptstheconsideration of fromthesurver.
L*. areas: Despitetheirsuitabilityasa promotionaltool for
C-0-sPonsors. Will the competition be run by the financial services,competitionsare still in the
O=Pany or sharedwith another serviceprovider earlystagesof the innovation diffusion proces&
Or manufacturer? If so, how will costs and With over.C1millionjust in prizesbeinginvested
vaPwnibilitiesbe divided? in the 57 promotions we sampled,financial
Objectirts.What are the and banks in particular.areobviously
marketing objectivesof services,
LýeCompetition?What messagewill it send to takingcompetitions %vryseriously.
CuStomers and what effectshould it produce?Is it In view of the sumsof moneybeinginvestedin
(mly short-term sales uplifts, or are there more the fact that theuseof compe.
competitions, and
objectivessuchas generatingnew users titions as a promotional tool is now relatively
W raisingproductawareness? of below-the-line
commonplace, the neglect such
1-431(Vicnics.I low will the competitionbe designed. is becoming an increasing weakness in
techniques
delivered, entered
and judged? How can the the conventionalfinancial servicesmarketing
mechanicsof the competition best support its literature.
OjOctives?What form
of competition will most
49cal to our targetmarket?What couldgo %%Tong
There is considerableroom for improvement
amongthecompetitions currently run by financial
11AýStically
and how could it be prevented? in
serviceproviders termsof breaking away from a
['ýius. What number formula-based to
and value of prizes will be very conservative, approach
ItVied to nuke thecompetitionattractive?Canthe competition design; and in terms of creating better
Piz&sbechosento reinforcethe product concept? integrationbetweenthecompetitionsdeveloped
UILMprizes being
will attract targetconsumers? and theservice promoted.
EJP(nditure.I low for
much of the marketing budget Opportunities exist co-promoting competitions
L%dthetimeof marketingmanagementshould the
with manufacturersor other serviceproviders,
COMPetition consume?flow can the judging be being neglected. Financial
which are currently
Mde as simpleas possible?
serviceprovidershavebeeninvolvedsuccessfully
tmiffg. Should the in other forms of joint promotions,suchas the
competition be used to Barclays
10'=C= seasonallows,reinforceseasonalhighs youngsaversofferrun by Kelloggs and
of *Zpoil* rivals' promotions? Should the gap whichencouraged children to open bank accounts
between launch through initial deposit tokens on packetsof
and closing date be long to
Maximize the effect, or short to prevent loss of breakfastcereals. jointly sponsored competitions
Cuttomerinterest?How long should leaflets and could open up ýraluable new marketing communi.
VAtCtsbedisplayedfor? cations possibilities in financial services.
 INURKATIONAL OFBANKMARKETING
JOURNAL 12,6

f=ncill Servicesmarketersseekingto differentiate Friesen,J.(1989), aproductKnowledge ShootOut Fires'einUp

:11'rknicM enticenew customersand reward existing in theHeartland", BankAhv*ttingýVol.21No,7,pp,3D-3.
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'iMITM Owearea numberof caveatsthat a prospective Grover,R.andSrinivas&n. V (1992),*EvaluatingtheMultiple
'=P6ýon sponsorshouldbe awareof- Effectsof RetailPromotionson Brand Loyal and Brand
Switching Segments% Journal of .111arketing Research,
Compedtionsý like any form of salespromotion,are Vol.29No,1,pp. 6.89.
OrJYeffectiveif not overused. Gupta.S.(1988), 'Impactof SalesPromotionon When,What
19 Competitions that are developedwith a short-term and How Much to Buy%journal of.Alar*eting Researck Vol.
uctkal outlookwill only yield tacticaland tempor- 25No,4,pp.342-S-1
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Thepotential to gain competitive advantage, Services, PrenticL-I Iall,Englewood Cliffs,NJ.
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competitions are a highly flexible and cost Lal, R. (1990), 'Manufacturer Trade Deals and Retail Price
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WITHGLITTERING 29

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CoowetMons
SurveyResultsSummary

Numberof Percentage AveragePrize A%wase prize Nlarket

6UX of integration
competitions competitions number value(MS)
&'-Aýjc 20 Z64 hlediurn
1,232 46.6
4'ýý food so 3.98 Medium,
CIXPAZW
929 35.1
"a
517 19.5 11 3.5 Nwiurn
15ý iinns 14 3.0 Medium
344 13.0
: rfli 11 3.0 Modium,
319 lZi
'Iýrviur$ 10 5.0 LOW
fibl'atKen 188 7.11
118 4.5 7 ZO Low
u4cm 15 510 LOW
39 1.5
U'h* V,,dj 20 519 High
32 1.2
f 14-r^ is 1.0 LOW
25 1.0
I-IMWC 24 0.9 11 2.3 Ifigh
r4r, 11 10.4 High
14 0.5

'GPAriesincludeall inedibleconsurnables
h1leZ=bcr and percompetition
for thetotalnumberandvalueof PrizesAwarded
valuearemedianaverages
Mwl^ins integration is a modalaverage between I Cow) 3 Nth)
score and
14,J4=IJYtPonsored included in figuresfor both types.Columntouls for and
number of
percentage
competitionsare the sponsor
OJIIý therefore exceed2,646and100respectively

is SeniorLecturerin Statisticsat theUniversityof GlamorganBusinessSchool,Thforest.Wales,andKen

tturer in StrategicManagement at theCardiff
Business Cardiff,
SChOOl, UK.
Wales,
 Publication N6

'Promotional Competitions -
A Winning Tool for Tourism Marketing'

Tourism Management

Vol. 17,6,1996,1)1). 433-422.

 6, Towism Manalemwnt.Vol. 17. No. 6. pp. 433-442.1"6
Pergamon, Copyright0 1996Elwekr Scicnot LAd
Printtd In Gfvat Offlain. All fights rtserved
0261-5177/96 SISM + 0.00
00144177moms"

*A0

Promotional competitions: a
winning tool for tourism marketing
Ken Peattie
Cardiff BusinessSchool,AberconwayBuilding, Colum Drive, Cardiff CFI 3EU. Wales
Sue
peattic
VnIversityof GlamorganBusinessSchool, Wales

In the last 20 yearssalespromotionhasbecomesuchan importantcomponent of marketing

practice that It Is nowdemandinggreaterattention from marketingacademics. Promotional
techniques are now being studiedIndividually and their appropriatenessfor different markets
andmarketingtasksIs beingdiscussed. Tourismandtravel marketsareoneof the few sersIce
Wtors to makewidespread useof a varietyof promotional techniques.Price-based promotions
hate beenthe mostpopularIn tourismand travel, its In manyother markets,but there Is
trowl'Ingawareness that non-pricebasedpromotionscan add value for the consumer 'Ah Ile
meminga rangeof marketingcommunications objectives.This article looks at tile useof
consumer competitions, oneof the mostpopularnon-price promotional tools, wIth a survey of
52 competitionsrun by tourism and travel servicesproviders.CopyrightQ 19% Else%ler
ScienceLid
"ords: tourism marketing,salespromotion. competition$

'ac growing Importance individually.

of sales promotion in sales promotion tools and also to ex.
'11:1W every sector was in different t)pcs of industry. This
a key development in amine their use
IftfirtinS during the 1980s,and one that shows little article aims to explore the potential of one sales
11V of jkb3tipg in the 1990s. Although obtaining promotion. tool which represents a growing phe.
MAC!figures is made difficult by the widely varying nomcnon in a range of markets including tourism
4d4fiOns of 'sales It is
promotion' that are used, I by the and travel. the promotional competition. part of
`1'1`4Of the 1990sglobal expenditure on sales promo- an ongoing project examining the use of competi.
LO: W begun to exceed that for 'above-the-line' tions as a sales promotion tool. through studies of
O"Miting, according WWP the
to group figures. ' Sales competitions themselves, their sponsors and
; "Dmotion growth has been to them. Tbe project began
running at 9% in recent consumers who respond
Yttn compared with 6% for advertising, national survey involving 2646
and promo- with a thrce-year
ýý$ typically account for 65% Within this total sample, there were
of companies' competitiolls.
4rJui-Cungcommunications budgetS.3 Despite the 188 competitions run by service providers. of which
LOS-etublished importance 52 were asscKiated with tourism- and travel-related
of sales promotion to
111111t'iog practice, into the field
tu tvcn academic research services.
very limited in comparison with areas such
*6 Sdvcrtising force management.
and sales
A-UdcmiC
research considering sales promotion has The growth fit salespromotion
to bundle the different forms of promotion Sales promotions are often defined as marketing
14ci4fe or to form communications activities which are not advertising,
assume
'"ý4)Y coupons discountthat one of promotion
or pricing) is representa- sellinj or public relations; or even more simply as
ý140 the rest. With ,special offers'. Such definitions are very simplistic
the increasingimportance of
4ý1 Pfornotion it is and do little to communicate the versatility. variety
appropriate to begin to discuss

433
 'Noftotiondcompetitions:K Peattleand S Peattie I
SM Complexity of sales promotion in practice*' surprising. since many of the most popular forms of
bOwever,such
simple and straightforward defini- sales promotion rely on having a tangible product,
Uou are sufficient for the purposes of this
71Cchangein article. and are not appropriate for many services. It is. for
emphasis away from other elements example, difficult to offer 250%extra of something
Of the marketing communications mix (particularly that is intangible. Customers do not enter a hairdres-
Advertising)and towards sales promotion has been sing salon expecting two haircuts for the price of
COmmented on by a number of authors" who have one, or expect 25% extra free when they borrow
; TCjVseda variety of causal factors. The boom in
Wes promotion money from their b3nks. Despite this. there are
can be seen as a response to: some service industries in which a variety of sales
0 Ptesiureon marketing budgets: because promotions are used extensively and successfully,
rising and tourism and travel is one such sector.
advertisingprices and concern about advertising
*dutter' are eroding the perceivedcost effective-
Developingsalespromorionsfor tourism
M$ of massmedia advertising.The effectiveness
of advertisingfor service products can also be Different types of promotions will tend to suit
hamperedby their intangibility.' particular products or services, or different market.
0 719me ing tasks, more than others. Promotions fall into one
pressure:in the face of shortening planning
time horizons,sales promotions, and the rapid of two basic types: value Increasing and value
Wes uplift that they are perceivedto '
adding. Value-increasing promotions manipulate
ýccomcmore attractive than the offer, may the quantity/price equation (and sometimes the
patient nurtur- quality/pricc relationship) to increase the perceived
lln$of brand imagethrough advertising.
CAanging value of a product offering. Value-increasing promo.
customerneeds:cohesivemarkets were
Perceivedas fragmenting during the 1980s,and tions, particul3rly couponsand price cutting, are the
We now seen as 'dissolving' in a tide of in- domi ant form, and the type on which the majority
dividualism."' Salespromotions of academic research into promotions has been
such as compcti- based. Tourism and travel services do offer more
Lionscan provide more tailored and targeted
communicationthan the massmedia. In a survey opp?rtUnities for increasing the quantity' of the
of American business conducted by Incentive servicethat is on offer than someof the 'purer' and
Businessin 1987,small-scale more strictly intangible service sectors. Offers of
competitions were three nights' hotel accommodationfor the price of
the fastestgrowing promotional category.
Competitoraction: sales have always two, or'buy one, get one h3lf-price' offers on tickets
beenpopularas 'rapid promotions Ito%cver, it is the other avenue
a are not uncommon.
response'tactic to rctali- for value increasing, the cutting of prices, that has
Alt againstcompetitor initiatives. Lal" points to a
*wov%ball'effect in which been the mainstay of promotion in tourism and
promotions become travel for the last few years.It is an aFproach%%hich
Jam,ostobligatory in somemarkets, as companies
areforcedto match competitor initiatives, or has drawn some criticism, as Greene comments:
101,inj m3rket share. risk 'the hotel and airline sectorhavetended too often to
A newreceivedwisdom: in the use price reductions as the first tactic for obtaining
past sales promo- more business when other choices could be more
tions have often been treated as
a second-rate profitably employed'. It also carries with it the
meansof marketing communication, 'bolted on'
10sccond-class danger that ovcrcmphasizing cut prices will un.
or flaggingbrandsin an attempt to favourably reposition a tourism and travel services
bow their fortunes in the
short term. Crozier" provider, becauseconsumersoften use price as a
expla.ins,that 'the lazy assumptionthat [the "
line) must be better above surrogate measureof quality.
than below has been all too The secondgroup of salespromotions which are
CISYto make, leading to an undue emphasison (sometimes
adt,crtisingin the promotional mix, sometimesto often overlooked. is the value-adding
LbCVirtu3l exclusion of any other referred to as 'packaged up') promotions. These
means'. As leave the price and core product/service offering
marketleaderssuchas Heinz, Procter & Gamble
JMdMcDonaldshave madesalespromotions ccn- untouched,and offer the customer'somethingextra'
VaJ to their marketing strategy, in the form of a free gift. a 'piggy-back' com.
and as sales plemCntary product or a competition. Purchasers of
PtOmOtionsagencies have become increasingly
PfQfcssionaland closely aligned to travel servicesare accustomedto 'freebies'. ranging
advertising from complimentary drinks on arrival to little bags
Allencim so sales promotions have in
'felpectability'. gained of toiletries in their bathroom. They arc so accus.
tomed to these that the promotional imp3ct is prob.
ably negligible. Such extra benefits risk.becomino (at
1411tWOMOtion in servicesmarkets the risk of makinja pun) a promotional hygiene
IMice
marketshave not typically been major users factor, causingdissatisfactionit they arc missingbut
"4 Wes promotion in little impression whey they are present. Such
comparison with packaged making
f,"Odsor consumer durables. This is tend to be brought into play
perhaps not promotional extras also

414
 .f Promotionalcompaitions: K Peardeand S Peartle
*! %tithepurchasehasbeenmade, and althoughthey late demand in responseto unforeseenevents as
=mycontribute to the creation of a satisfiedcustom- well as the normal daily, weekly or seasonal
er. they do little to influence potential buyers in the fluctuations. Salespromotion and merchandising
c=W purchaseprocessstagesof gatheringinforma- methodsare especially suitable for suchshort-run
tion and cvalu3ting potential offerings. It is during demand adjustments. and are vital aspects of
this fute that a competition can be a very effective marketing for most travel and tourism pro-
Promotionaltool to employ to try and attract the "'
viders. Competitionscan encouragepurchases
P'Ott'stctivetraveller. during UsuallyS13ckperiods, or can support an
attempt to bring forward seasonalpurchasesof
Pfvmationalcompetitionsfortourism products suchas travellers' chcquesýnarkcting
and travel is
TU Wjiubility of competitions for Consumer interaction: interactive
tourism and travel (16 482) but difficult
it highlighted by the fact that it is possibly the only vital for services. p to create
VC3of services marketing in which competitions are through advertising, which is generally a uni.
cl;, Lcidy acknowledged within the academic liter- directional means of communication, absorbed
Xwe as being an appropriate promotional tool. 's relativelypassively by the potential consumer. One
71q also represent
a tool which has grown in study found that under 25% of television viewers
could recall an advertisement seen on the TV
=PmUncc. In 1986, for example, British Airways'
!Go For It America' competition in the USA
and its the previousday, and that under 10%could name
C*Acord competition in a brand they saw advertised on TV 30 seconds
the UK were two of the by "
147-W. multi-million later when phoned a market researcher.
pound promotions used within Competitions, by contrast, can create real inter.
%heindustry. Not only are
competitions used by a Involvement between the customer,
"gricly of service providers in tourism and travel, action and
lhciz products are also the service and the service provider. This may
1w Met companies' extremely popular as prizes involve the customer analysing the service to
competitions, providing oppor- benefits devise a slogan,
lut; tics for some very effective answerquestions,rank or
marketing com- for information, or meeting the
11h=iations at someone else's expense. sending away
There are several service provider (thereby creating new service
aspects of competitions that
fukc them particularly useful for
promoting tourism
encounter opportunities).
lmd travel services: Cost certainty: barring accidents. competitions
involve predictablecostsand are morecosteffect.
0 Differentiation opportunities: Kotler identified ive in maintaining perceived quality levels than
creating competitive differentiation as a key chal- dgive-away , pronýotions. This is becausegiving
lcm;e in service
markets since innovations can be customersattractive 'freebies' that project a qual.
ýýp, cd rapidly by competitors. 16 Competitions ity imagecan be prohibitively expensive.
IWer a useful source of differentiation. Although Price1qualitystability: a competition addsvalue by
ILCYcan also be replicated, or awareness of a service a 'ticket' to
me-too' competitions making use
114kf3ilure if early competitions have prompted enter the competition. without any need to alicr
Purchases by the current supply of available the price or nature of the core service itself. This
ýýmpctition-minded consumers. avoids any danger Of Sp3tking a price war,
'6 144k-up opportunities: to advertising campaigns
accidentally impairing perceived service quality
Of Public relations efforts. or lowering the customer'sreferenceprice.
Adding a tangible dimension to Versatility: competitionsarc associatedwith pro.
products: services
Cauot readily be displayed, 9 but holiday pro- ducing short-term salesboosts. but they can con-
dum. being picturesque, lend
themselves to com- tribute towards a range of communication and
Prýtion p?sters and leaflets which can create 19
other marketing objectives.
"nunitics for interesting, tangible and visible
PQ=t-of-sale materials. influencing travellersthroughpromotional
QkahrY cue appeal: the intangibility
of services competitions
P'101nPts customers to look for surrogate 'cues' to Promotions have been shown to affect consumers
fudge service quality. A competition for a travel directly in a variety of waysincluding the retiming of
*crvices provider offering a trip the Orient '- brand *"
switching-, Increasedvolume of
E'Pfcss as aboard purchases; 24-13
a prize is providing a very clear quality 22.23product-t1fe" substitutions-, and
purýh3sing;
cut.
Ofmand retail outlet substitutions.
smoothing: The perishability of services In the tourism markets, competitions create
facaris that demand fluctuations are the 'most opportunities for purchase retiming, and to move
lJoublesome, services marketing 17 In a towards particular destinations, operators
problem. customers
se4wrial market such as tourism, the problem is or travel agents. Since holidays are only consumed
bVite. such that 'marketing managers are con-
one at a time, volume-increasingcompetitions are
tundy preoccupied with the necessity to manipu- to be used except as a method to encourage
unlikely

435
Pmmouondcompetitions:K Peattieand S Peallie
thOn-st3yvisitors to prolong their stay (for example opportunities that using a salespromotion compcti*
t,eq *businessorientated' cities such as Brussels and tion presents(Figure 1).
Man h3ve tried to encourage business travellers to The implication of this model is that there are two
VJYon for weekends). key groups that a competition can be targeted at.
Product type substitutions may exist in terms of New customerscan be developed from among the
pmTlc m3king choices between a holiday and a new can be poached from
potential users and some
W for example, but such substitutions will be much competitors, and (providing that someare retained)
test common than in the
supermarket where con- this will provide long-term benefits of an increased
S=ers will be deliberating over different types of base and an expanded market. Research
customer
food and drink as well as over specific brands. that this is possible because consumers who
suggests
Ignoring confirmed non-users, we can define four try a promoted brand and are satisfied with it have
?)pcs of consumer in relation to a tourism and travel purchase. This is
an increasedprobability of a repeat 33 The
I-enicefor whom a competition has the potential to particularly true of previous non-userS. -I"
ir4ucnce their purchase decision: to create such changes in
potential of competitions
consumer behaviour is shown by the results of a
0 Potential users: those who do not use the service, Promotion Services in Canada. This
but %%ho
Neilsen survey
could be persuaded to do so through that 55% of competition entrants will use a
showed
manipulation of the marketing mix. These are brand specifically to enter a competition. and 95%
often the main target of promotions. " the brand. again following the
a Competitor loyals. McAllister and Totten 29 and of those will select
Glover and Srinivasan" show that successful competition.
promotions can attract substantial numbers of a
c=petitor's otherwise loyal customers. Sales promotion competitions for tourism
0 Brand switchers: Grover and Srinivasan3O also and travel services: a survey
found distinct 'switcher' involvement in entering prom.
market segments whose The authors' own
consumershop between competing brands. as a hobby led them to appreci.
0 Loyal customers: within own-loyal and competitor- otional competitions
ate what a widespread, growing, versatile and creat.
10),11segments, we can distinguish between long-
ive marketing tool they are. It was a natural pro-
term. brand loyal consumers and those who tend to our experience of competitions, and
gression use
to be 'last purchase loyal', 31who tend to be repeat to information on the competitions them.
the access 'serious
purchasersuntil encouraged to realign their loyal- that participation in the world of
ties. selves
'comping' brings, to develop a better understanding
competitions in marketing. Over a
Ccapefitions have the of the role of
potential to assist in moving period the authors g3thercd details on
Wnuumers between these categories, particularly three-year
2646 different UK sales promotion competitions by
11=usc they are
so popular with consumers. Survey network of fellow 'compers' as
Id&UIforn 113rristAlarketing Week-31show that some using a nationwide
7Q'00of British information gatherers. Details from special packs,
consumers regularly participate in forms competition rules were all studied to
Pt)d=- or service-related competitions. We can entry and
build up a picture of these competitions. the in.
zUkW%elydivide up consumers into three types of
C=Pctitive consumer' segments according to their formation was encoded and then an3l)-sed using
Mi! ude to competitions: Nfinitab. The sample consisted only of competitions
or regional basis (local ones
available on a national
"-competitors - who would consider competi- were not included) and which were associated with a
or service, as opposed to being all or part of
tifts a waste of time, stamps or telephone units; product
Passivecompetitors - who would enter competi- the product or service itself (so the numerous com-
LiOnsbut would not change their normal purchas- which are regular features of magazines
petitions
iq behaviour just to included). Among these were 188 compcti.
enter a competition; were not 52
&:Iive competitors - who would change their tions sponsored by various service providers, of
some form of tourism and travel
Purchase behaviour (such as timing or brand whom provided
dxgcc) to enter an provides an opportunity to cx3mine
attractive competition. services, which
in which competitions arc used within the
C44LUMcrs the way
arc not rigidly defined by these classi- industry.
be the was both
which instead indicate a tendency that a it must emphasized that research
PMOn has, or a and exploratory. It involved studying
position in relation to a specific opportunistic
found before
fýý660n- A confirmed non-competitor might, that the authors them,
IW CLAMPIC break something
than any form of carefully designed research
, a lifetime's habit to enter a rather
WtTc6t, ion offering the holiday This does not make the results any
of their dreams as a methodology.
Mt, Cross-referencing
consumer competitiveness less interesting. The data vacuum that surrounds
"tkizil brand involvement makes it impossible to
produces a picture of the promotional competitions

4ý6
 prallic anti S Ill-, jtlir

PROMMING TO THE COMPI-TITIVE CONSUSil-R

',! %I NIFNT
: 114 %1RvI

H1611

LOYAL
CT%T()MI ký

HýA', Iý SWITCH TNI)I'( '1-.Mi- NT

strairpe OrAff'Is ý
from rpadmj
romperaor Ahare

IWO, I% IA ('T IV E
C()M, I'l- TI TO R ('()%Il'FTITOR

IN\'OI, VF. %ILN'l WITH ('() 10PETITIONS

I vwT I

I on the repicsciii itivellcSs of the total

' thai ilic rc,; tjlt% do rcilrewill a %c'N ack"llillc PICt"Tc
b"C of am of Iv, %to), 0tTIpclIll0tI% III thc IK
set., What Can he "tatt'd %ý it 11 of 111CUse of p10111011011.31 (.,
"'Of4mc m that thc tIiotIs; ijj(I-, )I -c,, IIjpcj, - %%ljo holh III gencral and III relal'Oll 10 I)CLAIC Milkcll,
"Otnhulcd to the collcown
ot intomiation arc a
Oudscatedgroup Fx tent and nanire of compenis, n tor
of pc,, I)lc ý%I,,, ý, III 11;
j, c Ic,,
"&'I% 'Wallibic
compoinow, dming the thi-cc-Near jaj)jc I ptjt% the %ample of comlictmom run b%,
b"c It I,. po,,,,, I)le tljýjj
pcnod soilic loý% %'iltic touri%mand irmel %er, %ice pto%Mcr-,in the comic\1 tit
tý(IfVrhtson%. or Scr%icc% lot
compt-titiow, invomng vci\ short ilic %cr%icc,,%tjl,%ct a%a %kholc akcouvif
"Vi4ows of oppottulill. Illan 7".. in Itic
N.. \%cre scimicd mit hN g1joic of all tomlictmom
"KhC COntribuling lea\c%
to thc iict\%()ik it Ilic\ I)clic\, cj joull %tir\, c\. \khich ilicni railict undct
tAd the detaik
%%etcnot %%mth cwtiangitil'!. It I,,. also relircsented \%Ilcti onc Ct)fl%ldcf%file 1111jV011.31hc Of
$Kftmbic that lourimn
a fc%k 'COMI)CIN' \010 LII"C()\cr a re- senices %%iihm 111c total cLonom% and
14"4 but lti(. I; iti\e 2s, ".
obscure competition might tr; i\cl ,crý ices rcprc%cnt tit 111C %cr%icc,,-.11h%cl
C.,
it" not to conitibutc I lm%(-ýcr. Figiae 2 %how%hom. ilic Touti-mi and I ra\cl %01%ci
it to thc nemork
Ompte these 1,
po%%,I-iiIItIc, -,. the atithors mc cmilikict-it can tic I'lokcil (14-11 %%pon%of
1*1* 1 %enkvb
bur%gýi rewits %ummar!,

No. of prisr numbef integration i%4,r

CoFT1p% prile %alur
i(XXK, tmirdian, lr%l For 411CIAIIIýI
imirdiao

lr; i%cl
" Of*%"
It Medium
49 2o
"'W m4 Onn k 16 %le d ium
33 18
ANN" 1-3 '15 11 1 1%%
12 .
'O "UmuscauOns 8 8 1.0-A
*, 12 6
'Av%bv 1 411A
jft, j 6 3 o 35 4
P""I"VaOuc
an d ms-.c rci; III 11 7 45 Mcdoum
04,11MVIO J )'A
n 188 1M .k

(7 11% of all
collip, t)

437
 tot?ltlrltli, ii %
911 l'eutur and Veaj
.ý
Travel Agents )x pleasure-, (it gambling (or pcibal- morc
T(iur Operators i, ý:uiatclý of comixtingl.
I; Anspott Servicc, lie dewc to occupý Icimirc tirlic
AýLotnoda(ton SefN
Ih, % concluded that all five fadol% arc "Ill"ortant -
E] K, rcign Exchange
but that life Importance of tile I.i%t mo ha% been
obscured hý if) o%ctcn)IlIla1, l% of' NOi0n. " I -cL'(11101111c
huciSn decimon-making approaches hawd arOt"Id the IWO
AcLomod ai ion
1-.xcha nge three
&ff*
Ili economic term%. tile incenti, lc pio, titictl 11%a
rclatc% to t%%o kc% dinicn%ions (11 life
,, impomon
their their nunillct I'Iic%c
pi i/cs in%ill% cd. %aluc and
,'k, ompoitiom offered o%cr 4(KK1 pri/c% %%orth an
c,, ninated il, o million (tilt% i% an c%timaled market
w, %omc of tile conillentiom imoked a
one of ws holicla\ %a% a pi i., c. tile
ompan% am-ardiny,
to tile Ill Ile% lllaý Since
o"I sponsorN (it
4I ilic attractivenc%% (it a competition i% Ilartk rclalcd
1Vwl" to tile C\pCC(Cd uI1IlI\ and 111Cpefccl%vtj plokillilit\
(
-2 oillpOilion breakdmk j, hN, %(.r %it c pro%ldcd to Ili 01 In 1"c
of \%inninp. %pon%ot% can cho-c let\ in
high prim numhcr% lor hoth) to makc thc
\alue or
labb- Ili-it aniong diffci-
11,-cý M service. witti tran%port mammuni impact -' %hom %
mid tom olmator" %CI\ICC%%11"111-1111%. tile X CI3gC \-1111C% IM
luming the largem CIII toL]11%111
groups. It i,, %%mth noting, that
this 16PIllis hN %ervice the numlict and total \aluc of Imic\ ,%hikh 1\116
offe.-red imlict than the immic their conl1vt it 1011% %all, hil a factor ill foul and eight
ýdthe Pilovidel. I'llereforc "ollic thc colillmll ion%
11114. A)t rc%pecti\cl. % (the aler 'igc% tl%ckj 111foughotit ;lie file
ed to foreign cwhan vc arc spomored liv tra%cl
, dian figures, uwd bcl: a1j%c alithinclit: flwall% Can I*pc
Writs rather than h.\ financial
%crvicc prmiders. hut 1).1till, skolted b% onc )I mo compoitions offering
'theNare not counted undcr travel
agency ;cr%icc-,. cxceplional nunthcr% or \. iluc of pti., c% %uch a%
11ritist, AVoild'% Otcatest ()Ifct' imoking
1li`1'~ring with prizv. %
P, million trcc flightO life allpfilach
T)w Prize% %%orth of
in%okcd atc clc; iil\ ;in importaill compo- be
WW of cornivillion'.. adopted h\. colillictillon spon%01% L:. Ifl plotted on a
all lit ill 0) the\ ; lit. hv no 111call., \%luch ii\idc% %p"m-, oi% till
thc anllý cicnicril that dctcijiiiil(--, ' h(m 'Imic philo%oph% matm'. .
aitracmc a ifround tile ilic(han %.Iltjc% till Ihc flunillct of I)II/C%.
Ompetili(in i% lo cust(micrs Suive\ data h0l" their \aluc. it) ploducc four i.. Ilcgtlflc%
Alb"ICa tirVe3led and
that 60'),, ()1 compelltol", cJltclcd
.Ow lot lhc fun ,oý mipetition:
ol it' ;in, ] td-,. )t cntrants into
Unnrclilion% \kcrc found t4) hc 'immic ýpotv (I c%kpwc% high %-, Itic)
of Mial tilt'
"cs offered \A-ere'. Sclh\ and licianck It- I-
'"I'amion r.
%
sc, ( fc%%prvc%/ %aIuc
of a tunction (in 111%ptuc%
corvilmmon a, a ot 1- ('? 1 (0111,(1 it littler
Pr I/( . high %AILIC
0 ! '', 1;illf-'JA ( 111,111%
J;
1, ] C I% Cril
III Cf)(. j tt M 'I r(i% J lAj'k IC
M of cnicring: ',, ( I% Iý C% 1)10% t)\

offeling tclall\ch small flulillict (if

plillo%opliv.
-ncum %alue()I Ilic prizcs (m perhaps inoic hil
.1
high \aluc
lip4pr 3
t Aith a rcl. iti\ci\
-Ilclý Ilic utllltý ()I (lic prizcs)ý
I)IIIC%.

matm for I hc o\ct aII %cr\ icc%%ub%ct

,jinher of Imi/L., arii Itic pcrcctvcd probabil- 1)tc%cnt%sudi a
' winning, Fourl%lll , Cr\lcc% alipcars to bc cvlcllý a\cf; igc,

70*nltn and tra, el

%tjr%r.
ý remilt, --timmars
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 -; Promotional competitiow: K Peattit and S Peanit
SERVICES PRIZE PHILOSOPHY MATRIX

HI
Everyomea wimoer somajollso

PHOTO A MISC. 0 LEISURE

FOOD 9
M17P TOURISM FINANCIAL
MEDIAN
NUMBER (10) A TRAVEL
COMMUNICATIONS

PROFESSIONAL
Mism Jdckp*r

LO MEDIAN HI
(3)

PRIZE VALUE
l'itwv

"Ahic services in terms of the industries such as cars and music, in

number and value of tion along with
ItIf prizes offered, and therefore do often offered as prizes in
not appear to that their products are very
ktd towards any particular There is an inherent
prize philosophy. Figure other companies' competitions.
'I- ikhkh presents a prize philosophy matrix for logic that a prize is positioned as something of value.
Scluriunand travel, shows that having company holding up yout
there are some con. and that another
'4ýxble differences among that it is bound to be
sponsors. Within the product as a prize means
10wi,%mand travel sample, it the sponsor's product. In en.
was only the transport promoted along with
4m,we providers' generosity
with prizes that kept tering the competition the sponsor's customers are
t1leCI&Wfimtion within likely to be made aware of the travel prize, to find
services out of the 'Miser'
0-khaication. Despite it. likely be
this, it is only accommodation out information about and are quite
`41ýnidcrs%%hoare significantly below in to desire it. This takes these consumers quite a
WMI Of the value average made
of prizes offered in relation to long way into the purchase decision-making process,
'I%a servicesor the total purchase more likely
sample. which makes an eventual
should they not win the competition (providing that
r1s"I'lProducts
asprizes they do not psychologically 'dcm3rkct' the prize to
IOUrimn for disappointment),
and travel services share an unusual distinc- themselves to compensate any

TOURISM AND TRAVEL SERVICES PRIZE P141LOSOP14YMATRIX

HI
Evervome d wimme

Ttausport

EM MEDIAN
NVMBER (10)
Accomodation
Tout Operstios
0 1 Trovel AlentY
I
Forelle ERcb&AS4
Miser$ I

n MEDIAN
(3)
ýALUE
PRIZE
, "Curv

439
 competilions:K Peattieand S Peattie
**'nmftoG*mal
The total sampleof 2646 benefit of avoiding the cost uncertainty and danger
competitionswas analy-
&edto investigatethe extent to which tourism and of over-redempton that afflicted Hoover's ill-fated
%ý&Vdprizes were used as prizes free flights offer.
within competi-
U=L. A 10%systematicrandom sample to
was used
U=ple 264 competitions. Out of this 125 The effectiveness ofsalespromotion competitions
(97%) offered tourism- number,
and travel-related prizes. Measuring the effectiveness of competitions is not
Mou of these
were straightforward holidays such as simple, and is almost impossible to do by simply
& trip on the Orient Express, two in the the competitions themselves. One obvious
Cahbbean, a weeks studying
week in Spain or a weekend in Lon- answer, and a very conventional measure of sales
d0n. Others were is
tc"ys more specialized and therned promotion effectiveness, to analyse sales patterns
suchas a tennis holiday in the Algarve or a before and after the promotion. Unfortunately, this
=u: dcr mystery weekend. Other tourism- and is not really appropriate for the many competitions
2ravel-relatedprizes included tickets to that are not directly linked to purchasing. and it
attractions,
such as Alton Towers, and trips away to special ignorespotential benefits of increasedawarenessor
"V=ts, such as Wimbledon, the RAC Rally or a increasedsatisfaction among existing users. In the
Grand Prix. 48% of the competitions
Comparedwith the total case of tourism services.
sample,the subsetof 125 surveyed did not require a purchase. so there is
fl-ýc;ring tourism- and travel-related
products as obviously more to these promotional competitions
-at%%eremore 'miserly' in termsof the number of than a straightforward desire to boost $31CS in the
ori: ts offered (an averageof 10 as opposed to 20) short term. Competitions may be usedto encourage
Jmdthe estimatedaveragevalue of (0000 potential customers to order a brochure or visit a
4V,,Xncd to L3400). The popularity prizes as
of tourism and retail outlet. which increases the chanceof an even.
%ravclprizessuggeststhat they tual Entry numbers is another conventional
provide opportunities sale.
10 Achievea greater customer for competition effectiveness, but this has
responsethan more measure
ViliAtforward economic incentives declined in popularity owing to the increasing num.
such as money
C9even valuable goods. In conversation those ber of 'hobbyist competitors' and the useof multiple
with
:ýD%, Olvcd in sales promotion management,the au- entries, with one competition found to contain over
ZM have encountered 1000 from individual. 31Some com-
a perception that tourism entries a single
Jmdtravel products are seenas highly
cost-effective panieshavetried to measurethe successof compcti.
ilizes %hich also offer room for creativity and tions in terms of changedconsumerawareness,but
=aZination. Domestic appliancesor lumps cash this can be difficult and costly to measureeffective.
=NY be attractive to consumers,but they of
are re- ly. "' Le Tigre sportswear in the USA researched the
14%; vcly dull to build its 'Rock Roar Fantasy'
a promotional competition effectiveness of and com-
Amuzd. while using cars as (offering travel prizes) and found that
prizes ensures that a petition
s*=,rctition is expensive to Holidays although there was no sales increase. it improved the
01-11ings mount. and
are valued by, and attractive to, consumers, image of the brand among the target group of
*1 much as anything for the fact 18-24-year-oldmen.
that they are
PMXi%CJas somethingluxurious frivolous One measure the authors did devise to try and
4nd a cashalternative and even
can alwaysbe offered for the judge competition effectiveness,and one that takes
0'UtiOn4leconomically minded). The impact into account more than simply the economic dimen-
%L4bolidays as incentiveshave extra
over more rational sionsof prizes, was the 'marketing integration'of the
WDAMic appealswas underlined by C Visich, Vice competitions. Competitions vary in termsof whether
i'Mident of Southland Corporation
who com- either the prize or the mechanicsof the competition
21"W that 'From a marketing the back to the product or service being prom.
point
"tluc of a 50 cent off coupon is known in of view. relates
advance. oted. We developed a very crude method of classify.
bUt if I offer
a trip to Hawaii, the incentive is much ing a competition accordingto its marketing integm.
'rhOIC cxciting.'-16 tion as follows:
TOutimnand travel
incentives prizes are particularly effective low- no link between product and competition or
*h %,hcn a variety is offered. This has the "
Uddc4benefit of allowing different i
prize;
InVict to be attracted in segments of a " medium -a link between competition or prize
a way
ý! ýh prizes might find difficult. oilthat single goods or product;
Ulay's and
ý%Qmen of high product, prize and competition all related.
of the World' competition, for example, -
'11*4X variely of holiday prizes ranging from trek- Tabk I includesthe m3rketingintegration scores(as
Lint in the Himalayas different
to art tours of London to a modal average) associated with service
tJ**/ it to target 'its
entire consumerbase. women providers, Services overall score relatively poorly
*I. I&M and older' with goods, perhaps owing to the Intang.
'V
it. M the with a single promotion-37 compared
sponsors'point of view, offering travel asa ibility of servicesand a tendencyto focus the mech.
Pwt- As opposed to
a give-away, has the added anicsof the competition (such as questionsaskedor

40
 prwriollimal K Ileame and s Pralfir
0 Low
or abu%ed. The sales tactic used bý ;I handful (it
M. Mcdium
rogue companies of awmdkg duhous We hKida\
E3 High 'vvinncrý, * end tip paying out for
pnmV m "hich
III at 11111MCd pIICCS ha%
Hilb IIISLIlank'12and aCC01111110dallt
15% the potential to interfere %%iththe pcrcmcd valtic of
the vast majoim (If %cry gcnumc hohdaý c, Impeti-
tions.
The -,ict-cotyped vic\% of %.ties pttlrnoliowý I-, that
the, represent ;I short-term, taoical Itud aluch "in
he used to boo%t saic% Coinpamc% v hich appitlach
promotional cotripciawns %ccing thent in %uch a
limited \,\aý ;ire )it]\ likek III ZICCrUCtaCtital iind
tempigar, benefit,, \\, wi%c%lill. thcý rnaý run into
difficulties lot mic tit m() rca%on% that li. i\c liccii
piomonons '
i(icntifictl I,, afflic"ng a mngc of saks
Hther the, A nt" receive the sm W thorough
planning 1hat IN Iv,, CT\cd fill canipalýn-,.
delegated wt, far
Low or Ific planning and c\aluatwn -it(-
4 0% doo,%n thc marketing orýam/atwn Both of thcýw
[ "0' shoftconllný-, IC\CZII a tcndcncý aniong. cOmpanic"
5t( .
inlcý,imion for tourism and trwýcl enough MICil
1440mlium not it) take salc% proniontins scrioLlSk
devckqmng and implementing thor nuirl, cfIng
good. and ;mard \x inning, munpic of a
*"W$ fcqulrcd) stratcvý
that \kx, taken wrimjNk and dc\c1opcd
on lhc langible prize, ralher than compomon
t'496M'Wc llsclf lable, 2 campaign came
and httýwv 5 show thal aS j)aIt (It all IIIICýIatCd ptom(iii(Inal
"Im6m and travel ice,, twin Conti-I: luý Airlinc% HIC 1992 C3111paign It)
, cr\, conlimitions werc
4"iftlualrd bv low I it) licilin wmcc in
anti medmin le\, cl,., ot integration promote iticii nc,, i. midon
tMough Touri%m and 'I dircci-t-nad dim. -t1unt couptin aimcd ;it
ravel did ha\c thc higlicst \okcd it
PmPunjon in the 'high* huNIIIc%', Ita\ C11cr% I III% Inalling fcaturcd a
catcvOrv aniong scivice potential
i'"'Wers) Tbi% i% disappointin rc%pon%c and \%as laid
J!, gl\Cll IJIC \%I(IL' c(milmition I, ) cncoutagc a
14,mfbdubc of fouri%ni prodtictý, link nc\o, brochuic f(Irtuat
as pwc,, (oftewd h\ ()tit to IIII() tile cmilpam, %
and Am) the rijam opporILITHIR", 10 The piomolwn \\as Own ackciliwd it) the ita%vi
1404RI'llons that hohdii\ dc. duouýh tiadc Imirnals and Io the taigct
ý,tmmions Oftcr. Onc tiadc mti
91W ckAlmPlc of tile 1-.1c.fling "Italidald IIC\%%papcT
a thcmcd competition was run h\ audit. -IlL.C. flumn-A)
14ýlaý fcfr) thal. %kilcic a
Compam for it,, 1-tench wi-vice, Much Thi" k-.Inlpalýn and Inant. (1111cr% %11()\%
*"iwed quesimm. on a Ficnch thcmc and ()ttcrc(l a 101111% patt of a %italcgicall\ planned and
411"k%
car 111"I
C01111)(1111011
a, 1-1clich lwlldaý, OIL.
plilc and s fol
ýTjlcd
1111(., appr(lach lo nlalkctiný
up
that it omiplenicn1% and Ic1IIfoI%. -c% tile cimiram
so
brand unaýc and a(ketti, -ing it (11tcv, %titiodmillic
I ýOjmdu%ions opl)(1riunitic,, 1111 L(IIIIII. 1111C% 11) IAINC 111CII 1110! 11C III
Ihc 111,11kci
't)"llictilions have becil mentioned expli
'hC JC3dCITllC1111CIMUIC It) toUll'All
Ifm%cl markcimL,. tile 11j,, J)ýjlciý References
I 411"W hc%ond a mcni'lon. The toUt; ' Pcamc K. J(-- jýfý
'Man I,, hc f1mck IIIII IIIAlket con- ýN.,
I)IICC Conlpctlflý('.. to tile extent
wh"t iLccpjng ), ).I I
pficcN lov., ,, nwic , (Ilicstion of 'hinall,
I'll
I- Irylr% -\%IirldAjdc
markcting cxpcnJi1ufc II)SW hnan.
"AI than of gcneratin J! colnpclltlýc ad\alll; igcý 11mo 19'stj ( ;0 No%cmbcr) I
tat
*Iunm fnatkctcr%,are %ecking' 1Ijujrjcjj. jj %jartagrment Illoughlon Hinton.
16111111n.
cO,,t-(-Hccti\c %avs
6111cfentiating tile,, \I, \ ( p?(); 1 1.39
Netv'ices. building rel & 4SI11,111.1) 1 -\j,, jkc (it
liclim the fitic" Git-th of %21c%PIOMO,
*'Ih Customers and getting their mcs,,age Pit I 'Ildlerming I, )s- I ((, )
non In the 111tcd slatc,
an increa,,ingk crowded and 'not,, \' mar- Salc% I, j,, tjj(, j 1.1%1 gtoAth, fault\ nianagemcnt'
COMPCIIII()Il% Biomr%% Rewirs%
arc a' vcr,,'mIe and co,,i-c"Hective Ilartard
Of markoing cOn,nIun, c., t lot, that offer `Dick%on. PR and Sa% \o. AI hc ptiix knowledge and %carch
u$llxmuujticsfor IOUrism Oloppcf\ J %farIki-ling 44
11-11JO t 1) 42- ýA
and tr; i\el marketcrý, hoth I, ( ýLjpcrmatkct
. Quelch. IA 'It', tinic III makc tiadc promolion moic produoo\c'
*Puft0ft and as tile pim
idcr,; of pt i/es lot othei Harvard Biomr%% Nei iei% 1-0 61 ( Al I A0 Ots
I'bc\ arc not, however, form M 'Adth%oo. A 1110MOtIIIIIal fC%LIIC' threCI(Of 19M (N'0%Cr11hC1
$4"IWWO am
for Maikoing problems I'not
ke '(i\ Imm I ;, A 14 ;
'r "liel Plornolion. ;md, in\ J %I A\ hat I%mcant M %crvicc%- I %fatkoing 11)(w,.110
"Rathincll.
arc onj\, cftccti%,c it cruscd

441
1*0"0404dcomptlitions:K Peattie
and S Peattie
fock*c) 32-36 &I deals'J Marketing 197842 (3) 109-113
DL and Della Bitta, AJ ConsumerBehaviour. Con- 25Moriarty,MM 'Retail promotional effectson Intra- and inter-
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'%4 RIMMUcturer `Kum3r. V and Leone. RP *Nleasurintthe effect of retail store
trade dealsand retail price promotions'J
114-CUft9 Research 199027 (6) 428-444
TAXIer K *Promotion' in Baker, MJ (ed) promotionson brand and storesubstitution'J MarketingResearch
11-C iý The Marketing 198825 (2) 178-185
tda. ButterwoA-lieine mann, London (1994)484-533 27Walters, R0 'Assessing the impact of retail price promotions
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and Restaurantsin the 1990s2nd on product substitution. complementary purchase. and interstore
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A and Berry, LL 'Problemsand 3'Kahn, BE and Louie. TA 'Effects of retraction of price
'111'81ttlft
i" servicesmarketing'J Marketing 198549 (2) 33-46 promotions on brand choice behavior for variety-teeking and
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"Iftxv". I AdvertisingResearch198323 (February-March) 279-289
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K and Peattie, S 'Sales "Rothschild, ML and Gaidis,W C'Uthavioural learningtheory:
*144ut promotions: playing to win* J
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*1"ic. P
and Saunders.J 'The lead effect of marketing dcci- (; ) 70-78
*'"16'1 JW&Let
Rejearch198522 (1) 54-65 "Prize offering: believabilityaffecu entrants' responwto sweep-
2'1'AWbm1a.NJ and Jain. DC 'Modelling 1986 (3) 25
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behaviour incorporating explanatory "Selby, EB and Beranek. W 'Sweepstakescontest%:analysis.
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J MarketingResearch199128(1) strategies,and survey' American
189-195
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promo-
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; VU 4 (2) 147-165 importance of entry volume* Pre.
4'rOWILkS'ImPact of sales -'"-Sweepssponsorsreconsider
promotion on when. how mium IncentiveBusiness 1989 48 (2) 1.46-47
*114 to bvY*JMarketingResearch1988 (4) what and
2S 342-355 "'Accounting for consumer behaviour: why they enter one
*t4mul- 8C Incentive Business 19S943 (2) 8-10
and Babb.E M'Consumcr responseto promotion- promo over another'Premium
 Publication #7

'Promotional Competitions
A Winning Technique for Wine Marketing',

The International Journal of Wine Marl(gfintig

Vol. 7,3/4,1995 pp. 31-47.

 Promotional Competitioný
- Promotional
A Winning Techniqve for Competitions-
A Winning
Wine Marketing Technique

SuePeattie,BusinessSchool,Universityof Glamorga?
4 Wales,E)K 31
Introduction

un,
Ma FrenchHolidaywith Piat Dor, somewine glasseswith MateusRose
I=t3nt Wincompetitionor sample33%extrafreeofH=*'s 1994ServilliOn
Chardonnay andobtaina freebookleton Australianwines.Thesearejust a
fm Of the wine sales
promotion offers recently availablewithin major
UIPCýets.
7be 1980switnesseda growingmovetowardsalespromotionin almost
CVCIYsector,such that by the end of the decadeexpenditureon sales
P=Otion hadbegunto exTeedthatfor "abovetheline" advertising,accord-
i-2&tOWWP groupfigures. Salespromotiongrowthhasbeenrunningat9%
compared to 6%for advertisingýandfor manylargecompaniespromotions
*t3dY accountfor up to 70% the budget.
of marketingcommunications
Traditionally,salespromotionhas receivedlittle academicresearch
OOmPared to the moreglamorousfield of advertising.Whatresearchthere'
I= been,hastendedto bundle differentforms
the of promotiontogether,or
10Usumethatoneform of promotion(usuallycouponsor discountpricing)
L% resentative of therest.With the increasingimportanceof salespromo-
is appropriateto beginto discusssalespromotiontoolsindividually,
z3dShoto examinetheir usein differenttypesof industry.
7his article aims to explore the potential of one salespromotion tool,
dx Promotionalcompetition, trend in a rangeof
which representsa growing
=Irkets including the wine market.It is part ofan ongoingprojectexamining
tý'Cuseof competitionsasa salespromotion tool, through studiesof compe-
tý-60asthemselves,their sponsorsand the consumersthat respondto them.
71e project began three involving 2,646 compe-
with a year national survey
tý'ý- Within this total sample, there were 319 competitions run by the
dýý industry,
of which 49 were associatedwith the wine sector.
'A'hIt is
salespromotion?
523CS promotion is often defined as marketing communicationsactivities
utich do not include advertising, selling or public relations;or even mom
li: ýPIYas "Specialoffers.,, Such definitions are very simplistic and do little
10COMMunicate the versatility, variety and complexity of salespromotion in
 J
practice, however,for the purposeof this articlethis simplifieddefinition
V"Onal is sufficient.
lopeddons
vkabg - Proeotions fall into one of two types,value increasingand value
dMique adding. Value increasingpromotionsmanipulatethe quantity/priceequa-
tion (andsometimes thequality/pricerelationship)to increasetheperceived
value of a product offering. Value increasingpromotions,particularly
couponsandpricecutting,arethedominantform,andthetypeon which the
majorityof academicresearchinto promotionshasbeenbased.
Thesecondgroupof salespromotionswhichareoftenoverlooked,are
the value adding (sometimesreferredto as "packagedup") promotions.
Theseleavethe price andcore productuntouched,andoffer the customer
"somethingextra"in the form of a freegift, a "piggy-back"complcmentary
product;or a competition.
Why the wine market has not been a traditional consumersales promo-
tion, stronghold

To datethe majority of salespromotionspendingin the wine industryhag

beenaimedat the retailerand the wholesalerratherthan the consurner.
Thereareseveralreasonsfor this:

Price cutting - this is potentiallyrisky when price is usedas a

surrogatemeasurelcue for quality.

Increasingquantity- the beermarkettendsto frequentlyusethe

x*/oextrafreetypeof promotion. However, creatinga largertin on
a canningline is relativelystraightforwardcomparedto producing
largerwine bottlesfor shortruns.In addition,traditionally it is
poorerqualitywine thatcomesin litre bottles.
Give-aways- thesehavebeenusedfor marketingwine and'other
drinkssuchastherecentoffer of freeTabascosaucewith Smirnoff
vodka.However,caremustbetakenthatthequalityof the'freebie'
adequately reflectsthe quality of theproductwhilst ensuringthat
thetotal costof thepromotionis not excessiveif redemptionrates
arc high.
Coupons- theseare particularlypopularfor food and grocery
items.However,there is a tendencyto perceivethis form of
promotionasratherdownmarketfor thewine trade.
Why is sales promotion becoming more visible?

Thereareseveralreasons
why salespromotionsarebecomingmorepopular
in the winemarket:
 Increasedcompetitionwithin the winemmket wine hastakenan
increasingly -
Igge,shareof theUK alcoholicdrinksmarketoverthe Promotional
Past30 years6with consumptionper headrising almostsixfold Competitions-
since 1960.However,although;he wine markethasexpanded, A Winning
thereis now increasingcompetitiveness
within this marketfrom
thenewwineproducingregionssuchasSouthAfrica,NewZealand Technique
andAustralia,SouthAmericaandEasternEurope.
33
Increased competitionfrom other drink sectors competition is
-
now also coming from the n6v drinks such as speciality beersand
alcoholic soft drinks, providing a rival for wine in terms of
somethingnew to explore and sample.Beers and soft drinks are
traditionally markets of strong brands and many promotions. For
examplej Holstein Pils recently launched a ElO million
promotionalprogrammewhich included a national live music tour
and CD only available through winning tickets on Holsten Pils
bottle. The competition ran alongside a high profile TV and radio
advertisingcampaign.
3. Increasinguseofsupermarkets distribution channel- branded
asa
'wines now account for only 15% of the UK market, with
superTnarketown brands growingsteadily in importance.Although
7breshersis currentlythesinglelargestretailerof winesin theUK
with 10%of the marketvalue,the supermarket chainsTesco, and
Sainsburysare close behind with 9% of the market.A large
proportion of sales promotion activity takes place within the
supermarketsand as a result there have recently been more
examplesof wine promotions.
4- Ownging consumers much ofthe salesgrowth in the wine market
-
has come from new consumers.According to TGI datathere has
been a million new drinkers each year. However, with the
increasingchoice in the drinks market, consumershavetended to
becomelessbrand loyal and therefore more vulnerableto the lure
of promotional offers. In addition for many consumers,wine is
becoming less of a 'special occasion' purchaseand therefore the
issueof value is becomingmore important.

t4lbg Competitionsin Wine Marketing

7'Lemam
severalaspectsof competitionswhich makethemParticularlY
Wdul for promotingwine:

Dfferentlation opportunities- Competitionsoffer a usefulsource

of differentiation. Facedwith row after row of wine bottles,
Competitions offer the opportunityto useattentiongrabbingbottle
ýnnftvtiow collars,leafletsandpointof salematerial.Althoughtheycanalso
be replicated, "me-too" competitions risk failure if iarly
4"aOr's
- competitionshave promptedpurchases by the currentsupply of
!-'ýkzing availablecompetition-minded consumers.
2. Consumerinformation One reasonfor the growth in the wine
-
markethasbeenthe demystifyingof wine by the supermarkets
with improved labelling information. Competitionsoffer an
additional opportunity to provide consumerinformation and
increaseproductawareness throughentrymaterial.
3. Consumerinteraction The amountspenton advertising wines in
-
the UK is very small in relation to the market size.As a proportion
of the marketý main media advertising spendýg on wine is
currently worth under 0.3% of the market's size. However, one
of the major drawbacks to advertising is that it is generally a
unidirectional means of communication, absorbed relatively
passively by the potential consumer.One study found that under
25% of TV viewers could recall an ad seenon the TV the previous
day, and that under 10%could namea brand they saw advertiseg
on TV thirty secondslater when phonedby a market researcher.
Competitions by contrast can create real interaction and
involvement between,the customer, the product and the wine
marketer. This may involve the customer analysing wine
information to answer questions,ranking attributes or devising a
slogan.

4. Cost certainty. Barring accidents, competitions involve

predictable costs and are more cost-effective in maintaining
perceived quality levels than "give-away" promotions. 7bis is
becausegiving customersattractive "freebies" which project a
quality imagecan be prohibitively expensive.

5. Pricalqualitystability -a competitionaddsvalue by makinguse

or awareness of the producta "ticket" to enterthe competition,
without any needto alterthe priceor natureof the coreproduct
itself.Thisavoidsanydangerof sparkinga pricewar,accidentally
impairingperceivedqualityýor loweringthe customer'sreference
price.
6. Link-upopportunitiesto advertisingcampaignsor with retailers
-
becominganincreasinglyimportant
especiallywith supermbrkets;
distributionchannel.

7. Versatility - competitionsare usually associatedwith producing

short term salesboosts,but they cancontribute t3wards a rangeof
communicationand other marketing objectives.
Influencing consumers through
promotional competitions
Promotional
P=060as have been
shown to directly aject consumersin A variety of competitions -
u-2)'Sincluding the reVV,, ' brand increased
Tg of purchases; switfling; A Winning
0volutneof pu1cq.asing; 1 14
'7 product-typesubstitutions; , andretailoutlet Technique
=bUittitions.
35
Jgnoringconfirmednon-users,we candefinefour typesof wine con-
S=cr, for whoma competitionhasthe potentialto influencetheir purchase
d=isioa:

Potential users- who havenot tried a particularwine, but who

couldbepersuaded to do softough manipulationo%e marketing
mix. Theseareoftenthe maintargetof promotions;
Competitorloyal McAllister and Totten19and Grover and
-
Srinivasan2oshow that successful promotions can attract
substantialnumbersof a competitor'sotherwiseloyal customers;
3. Brand switchers Grover & Srinivasan, 21 found distinct
- also
"Switcher" market segmentswhose consumershop between
competingbrands;
Loyal customers within own-loyal and competitor-loyal
-
Segments,we can distinguish between long-term, braniloyal
.consumers
and thosewho tend to be "last purchaseloyal"t who
tend to be repeat purchasers until encouragedto realign their
loyalties.

Competitionshavethe potential to assistin moving consumersbetween

tLLU categories,particularly becausethey
are so popular with consumers.
$L:Y%'CY
datafrom Harris/Marketing Weeký3 showsthat some70% of British
cOm=mersregularly participate in product or servicerelated competitions.
WCc4n intuitively divide into three types "competitive
up consumers of
"==Cr" segmentsaccordingto their attitude to competitions:

Non-Competitors who would considercompetitionsa wasteof

-
time, stampsor telephoneunits;
PassiveCompetitors who would entercompetidonsbut would
-
not changetheir normal purchasingbehaviourjust to enter a
competition;
3. Active Competitors who would changetheir purchasebehaviour
-
(suchastiming or brandchoice)to enteranattractivecompetition.
 Consumers insteadthey
arenot rigidly definedby theseclassifications,
kI indicatea tendencythat a personhas,or a positionin relationto a specific
ns competition.A confirmed non-competitormight, for ex=ple, break a
lifetime's habitto entera competitionofferingthe holidayof their dreams
asa prize.Crossreferencingthe consumer'scompetitiveness againsttheir
brandinvolvement,producesa pictureof the opportunitieswhich usinga
salespromotioncompetitionpresents(Figure1).

The implicationof this modelis that thereare two key groupsthat a

competitioncan be targetedat. New customerscan be developedfrom
amongthe potentialusersandsomepoachedfrom competitors,and(pro-
viding that someare retained)this will providelong term benefitsof an
increasedcustomerbaseandan expandedmarket.Researchsuggeststhat
this is possiblebecauseconsumerswho try a promotedbrand and are
satisfiedwith it, havean increased
proýjý ..
gty This
of a repeatpurchase. is
Particularlytrue of previousnon-users. , The potentialof competitions
to createsuchchangesin consumerbehaviouris shownby the resultsof a
NeilsenPromotionServicessurveyin Canada.This showedthat 55% of
competitionentrantswill usea brandspecificallyto enteracompetition,and
95%of thosewill selectthe brandagainfollowing the competition.

Salespromotion competitionsfor the wine Industry- a survey

The author's own involvement in entering promotional competitions as a

hobby led them to an appreciationof what a widespread,growing. versatile
and creative marketing tool they arc. It %-asa natural progressionto usethe
experienceof entering competitions,and the accessto information on the
competitions themselves which participation in the world of serious
"comping" brings, to study the use of competitions from a marketing
Perspective.Over a three year period the authorsgathereddetaiIs on 2,646
different UK salespromotion competitions by using a nationwide network
Of fellow "Compers"as information gatherers.Details from special packs,
entry forms and competition rules were all studied to build up a picture of
thesecompetitions, which was encodedand then analysedusing Nfinitab.
The sample consisted only of competitions available on a national or
regional basis(local oneswerenot included)andwhich wereassociatedwith
a product or service,asopposedto being al I or part of the product or service
itself(so,the numerouscompetitionswhich areregularfeaturesofmagazines
were not included).Among thesewere 319 sponsoredby various sectorsof
the drinks industry.49 of thesewere specifically relatedto the wine market
and provide an opportunity to examinethe current use of this promotional
tool.
 Promotiollal
Conipelitions -
x
ý%ýNinningpý
Technique

37

r7

m
4)

Lu

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D
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j- :D Xm
CL
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Q)
Lu
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CLI 41 lb "I. I
Z

LL 7'.
- Abl. -ý, -, 0 -.141

, -Z, cc .
ý_) ý Lij z

LU
L) ZI
Q)
ol
tr, uj

CL

zi

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rj) (j) a:
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MZ
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Lli Z
CL 0
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C)
 Extent and nature of competitionuse

TableI putsthesampleofcompetitionsrunby thewinemarketin thecontext

ti4qv ofthe drinksindustrysubset.
Drinksasawholeaccountfor fractionallymore
than 12%of all competitionsin thetotal survey,this comparestojust over
Ie 35% for packagedgoods(seeAppendix).Thewine subset,which includes
champagneand sparklingwine, accountsfor nearly 16% of the drinks
competitions.

Well over half of the 319 drinks competitions involved answering

questionsand devising a slogan.The general survey showedthis to be the
most popular type of competition for almost all industries.Although 60%
of the drink competitions were run by the producer alone, 34% were run
jointly with a retailer illustrating how competitionscan provide a 'I ink-up'
Opportunity.Evidence of using competitionsto attract consumerattention
Table I
Drinks SurveyResults
Proportior Average Market
, .4verage Total
Number ofDrinks Prim Total PrL-e
of COMPS value PrL-e Number PrL'e (ree '"t
Sponsor Comps r1o) (Afedian Value (Ated1wo Number for
i 1000s)(z '000s) details)
Wine 49 15.36 2.40 327.09 10 13,748 ?*tedium
(including
ch=pagni

sparkling
wine)
Fortified 31 9.72 3.25 172.51 13 3,332 Medium
Wine
Beer 132 41.38 4.00 1769.60 15 46,192 Low/Med
(including
lager and
cider)
Spirits 71 22.26 2.00 599-28 10 9.257 Low/Med
Soft 29 9,09 3.20 264.10 50 30,010 Medium
Drinks
D=er 7 2.19 1-00 9.25 1 72 Medium
D .
Total 319 100
T 3 3142.33
Note: DesignerDrinks Include productsasTaboo and Mirage
11 102,611
 Figure 2. Pronlotional
Competition Breakdown By Drink Factor Conipelitions -
a 'Nine A Winfling
Gý OrtiflVd Wine Technique
0 beer. Lager,Cider
31)
Pints
§'-(.? t Drinks
8 Diftigner Drinks
Spirits 'Srft Drmk, ý Deiogner Drinks
22% 71ýý
Wne
1, -

'.

Le-er, L-ager, C i(jer

42*,'@

is supportedby the fact that over 60% of the drink sample used either bottle
collars or point of sale material to promote the competition.

I"Mmoting with
prizes
71heprizes involved
are clearly an important component of com petit, ()nS,
Abhough they are by no means the only element which determine ho%%
973ulive a competition is to customers. Survey data from Amcrica revealcd
tW 601/4)of competitors entered 'Justfor the of it" and 61 //oof cntranLs
WO ClTpetitions were found to be "unsure _fun the prizcs q fered
of what ,f
. 17
Sclbv and Beranek, saw the attraction of a competition as a
of fiv'e factors:

the cost of entering;

the monetary value of the prizes (or perhaps morc accuratclý the
Utlhtý of the prizes)-,

the number of prizes and the perceived probability of%%inning.

the pleasures of gambling (or perhaps more accurately of

competing),

the desire to occupy leisure time.

 7bey concludedthatall five factorsare important,but that the importance
hmodonal
of the lasttwo hasbeenobscuredby anoveremphasis onrational-economic
ct"Upetitions decisionmakingapproaches basedaroundthefirst three.
-
AL-A-wling
Figure 3
1 46 Prize Philosophy Matrix

HI
Evervone a WInne Scnanza
Bcnanza
SOFT DRINK$

Stan

PRIZE FORTIFIED
FORTIFIED
WINE WINE
NUMBER

SPIRITS WINE
WINE
SPIRITS

IDIESI43NER
DESIGNER DRINK$

Miser
Miser JackDot
JackDat

LO HI
PRIZE VALUE

In economicterms,the incentiveprovidedby a competitionrelatesto

two key dimensionsof the prizesinvolved:their valueand their number-
These49winecompetitionsofferednearly14,000prizesworthanestimated
E327,000.Sincethe attractiveness is
of a competition partly relatedto the
expectedutility and the perceivedprobabilityof winning, sponsorscan
chooseto rely on high prizevalueor high prizenumbers(or both)to make
themaximumimpact.Table I showsthattheaveragevalueof prizesoffered
in iach competitionandin particulartheaveragenumberof prizesdiffered
betweenthe various drink sectors.(ne averagesused throughoutarc
medianfigures,usedbecause arithmeticmeans canbe badlyskcA-ed by one
or two competitionsoffering exceptionalnumbersor value of prizes,for
exampleStowellsof Chelseawine boxesofferedover 10,000prizesworth
over E69,000in onecompetitionalone).Theapproachadoptedby compe-
tition sponsors be
can plottedon a "prize philosophymatrix" which divides
sponsorsup aroundthemedianvaluesfor thenumberof prizesofferedand
their value,to producefour categoriesof competition:
 L Jackpots(few prizes/highvalue);
Promotional
2. Misers(few prizestlowvalue); Competitions-
3. A Winning
Everyonea winner(manyprizes/lowvalue);
Technique
4. Bonanzas
(manyprizes/highvalue);
41
FMMthetotalsurveyacrossall industriesit wasfoundthatthedrinkssector
OVerall
tendedtowardsa 'miser' philosophy,offering a relatively small
C=bcr of prizeswith a relativelylow value.
ýigure3 presentssucha matrixfor the drinkssubset.It canbeseenthat
.meLSnotstronglylocatedin any four but
categories is tendingto,%-ard
ofthe
6C 'Miser' category.This comparesto the beermarketwhich is f"=Iy
C=blishedin the 'bonanza'quadrantwith a high averagenumberof prizes
c5credand of high value. If wine is to competein the future with the
emerging specialitybeersthenthereis clearlya needto changethe philoso-
PV towardpromotionalcompetitions.
The effectiveness
of sales promotion competitions
M-0-suringthe effectiveness is and is almost
of competitions not simple,
i=possibleto dojust by themselves. One obvious
studyingthe competitions
Answer,and a very conventionalmeasureof salespromotion effectiveness,
is tO2nalysesales before Unfortunately,
patterns and after the promotion.
thISis not really appropriatefor themany competitionswhich arenot directly
L'"kedto purchasing, it ignores benefits increased awareness
and potential of
Or increasedsatisfaction among existing users. In the case of the drinks
&=or, twenty-two per cent of the competitions surveyeddid not require a
PLTchase, so there is obviously more to thesepromotionalcompetitionsthan
2 S=ightforward desire to boostsalesin the short term. Competitions may
beusedto encourage information or visit
to
potential customers readproduct
AteWl outlet, which increasethe chanceof an eventualsale.Entry numbers
is &mother for but this has
conventional measure competition effectiveness,
6--lined in popularity due to the increasing of "hobbyist competi-
number
%Or$" and the use of multiple entries,with oj competitionfound to contain
O'er 1,000entriesfrom a single individual.2ý! Somecompanieshave tried to
M=ure the successof competitionsin terms of changedConsuperaware-
Ian; but this can be difficult and costly to measureeffectively. Le Tigre
SPOMwearin the USA researchedthe effectivenessof its 'Rock and Roar
1ý27JXY'competition (offering travel found that although there
prizes) and
*41S110salesincrease,it improvedthe image of the brandamong4hetarget
VDV of 18-24year old men.

Onemeasurethe authordid deviseto try andjudgecompetitioneffec.

tiveness,
andonewhich takesinto accountmorethansimplythe economic
 dimensionsof prizes,wasthe "marketingintegration"of thecompetitions.
hmotiona Competitionsvary in termsof whethereitherthe prize,or themechanicsof
141"tions the competitionrelatebackto theproductor servicebeingpromoted.A very
&Ujazing crudemethodof classifyinga competitionwasdevelopedaccordingto its
lf:dL* marketingintegrationasfollows -
at
1. Low - no link betweenproductandcompetitionor prize;

2. Medium-a link betweencompetitionor prizeandproduct;

3. High - product, prize and competition all related.

Table I includesthe marketingintegrationscores(as a modalaverage)

associatedwith differentdrink sectors.In the total survey(seeAppendix)
the drink sectorwason a par with packaged foodsandgroceryitemswith a
mediumratingfor marketingintegration.Within the drinkssubsetonly the
beer and spirits sectortendedto fall betweenthe low/mcdiumcategory.
However,this showsthatall sectorshaveroomfor improvingtheeffective-
nessof promotionalcompetitionsused.One good exampleof a themcd
competitionwasrun by Don Cortezwineofferinga L500holidayto Spain.
The competitioninvolvedestimatingthepositionof thehiddentreasureon
a Spanishnauticalmapandsuggesting a sloganasto why it %-astheperfect
wine for nauticaloccasions.

Getting the mostout of competitions

Several authorshave put forward useful planning ýiý311

ines for marketers
3V,
on the practicalities of running salespromotions. 3 We have tried to
33
add to this by developing the CONVETE checklist, specifically to assist
marketersin planning a successfulsalespromotion competition.The check-
list prompts the considerationof sevenkey areas:

Co-sponsors will the competition be run by the producer or run

-
in conj unction with a retailer.

2. Objectives whatare themarketing objectivesof thecompetition?

-
Is it only a short-termsalesboost or are there longer term
objectives such as generatingnew users or raising product
awareness. Whatmessage will it sendto the consumer?
3. Mechanics- how will the competitionbe design4 delivered,
enteredandjudged. How canthe mechanicsof the competition
bestmeet its objectives?What form of competitionwill most
appealto ourtargetmarket?Whatcouldgo wronglogisticallyand
how couldit beprevented?
 4. Prizes- whatnumberandvalueof prizeswill be requiredto make
the competitionattractive?Canthe prizesbe chosento reinforce Promotional
theproductconcept?Whatprizeswill attracttargetconsumers?
Competitions-
5. Expenditwe- how much of the marketingbudgetandtime of the A Winning
How Technique
marketingmanagementshould competitionconsume? can
the
thejudgingbemadeassimpleaspossible?
43
6. Timing- shouldthe competitionbe usedto counteractseasonal
lows, reinforce seasonalhighs or 'spoil' rivals' promotions?
Shouldthe gap betweenlaunchand the closing datebe long to
maximisethe effector shortto preventlossof consumerinterest?
How longshouldleafletsandpostersbedisplayedfor?
7. Evaluation- how long will theeffectiveness be
of thecompetition
in its
measured terms of achieving objectives? Who should be
responsiblefor evaluation,whenandusingwhat measures?
Many of the above points may seemto be common sensebut history
SbOws that even large and sophisticatedcompanieswith a long track record
Of successfulsales promotions can be caught out if the promotion is not
C=fully planned.Pepsi-Colain the Philippines ran a bungled Competition
lilich has so far cost the company over LS million, has led to them facing
4000 lawsuits, has provoked death threatsagainst companyexecu-
riots,
tivesand grenadeattackson Pepsi lorries.

Conduslons

7besteadygrowthin thewine marketoverthe lastfew decades hasprovided

opportunitiesfor increasedsales.However,competitionwithin the wine
tectorfrom newwine producingareasandfrom othersectorsof the drinks
muketsuchasspecialitybeersandalcoholicsoftdrinksmeansthatthewine
Marketercannotbecomplacent. If properlymanaged,competitionscanoffer
12xwinemarketera versatileandcosteffectivemeansof MarketingCOMMU-
nkUiOn.Theyarenothowever,anyformof panacea for marketingproblems
211dlike any form of salespromotionareonly effectiveif not overusedor
abused.

Ihis articlehasshownthatvalue-addingsalespromotionsgenerallyand
Competitions in particular,offer a rangeof benefitsfor promotingwine.For
CUMPle,eyecatchingbottle collars,competitionleafletsandpoint of sale
MIICTWcanbeusedto attractconsumers attention. Mitchell andGrCatorex
Suggest that of all risk reducingstrat5fies,consumers seekinformationas
the first Priority before purchasing. Competitionentry details are an
OPPOrtunity for thewinemarketerto provideadditionalproductinformation
Ud thereforereduceconsumers perceivedrisk.
ýftxwdonal Thesurveyillustratesthatalthoughcompetitionsarebeingusedin the
CvmPtfitlons- wine sectorthereis stil room for improvement.In orderto competewith
41AIZAIng the emergingspeciality ,Ibeersand alcoholicsoft drinks market the wine
I=kx4ut industry needsto move away from the 'miser' philosophytoward the
'jackpot' or 'bonanza'philosophyregardingnumberof prizesandvalueof
14 prizes offered by the competition.Although the marketingintegration
is
measureshowsthat the wine sector aheadof the beer sector,there is
obviouslystill room to improvethe effectivenessof competitions.When
planninga competition,the marketerneedsto think carefully about the
competitionandtheprize in relationto theproductbeingpromoted.

In the competitivewine market of the 1990s,muketers are under

constantpressureto createandsustaincompetitiveadvantage. It canbe all
too easyto rely on conventional' approaches suchas price cutting when
alternativessuchascompetitionsoffer greateropportunitiesfor creativity
andbrand-building.Competitionsoffer particularbenefitsasa promotional
tool becausethey providemorecost certaintythan give-awaysor offers
especiallywhereredemptionratesare unpredictableas witnessed by the
disastrousHooverfreeflights offer. A majoradvantage of usingcompcd-
tions as a sales promotion tool is that it allows the price/quantityor
Price/qualityrelationshipto remainconstantensuringgreatermarketstabil-
itY. If carefullyplannedandmanaged,promotionalcompetitionscanpro-
vide a winningtechniquefor winemarketing.
 References
Promotional
I. "WorldwideMarketingExpenditure1989",Financial Times,November Competitions -
3M 1989,p.13. A Winning
2. B=ett, J.J. PromotionManagement,HoughtonNfifflin, Boston,,Nlass. Technique
(1993).
45 1
I Peattie,S. andPeattie,Y,, SalesPromotion,chapterin Baker,MJ. (ed.)
ne AforketingBook Third Edition, Butterworth Heinernann,London
(1994).

4. Peatfie,S.andPeattie,K, op cit.

5. Spawtoa,T. "MarketingPlanningfor Wine," IntematiOnal Of

-10urnal
97meAlarketing,Vol. 2.2., 1990.
6. KeyNotePublications,"Wine "
Report, 1995.
-A
7. KeyNotePublicationsop.cit.

S.Bogart,L. andLehman,C. "TheCaseof theThirty SecondCommercial,"

JolonalofAdvertisingResearch,
Vol. 23,February-March(1983),pp.11-18.
9. Peattie,Y, andPeattie,S. "SalesPromotions:Playingto Win,"Journal of
Af=ketingManagement, Vol. 9, No. 3 (1993),pp.287-300.
10.Doyle,P. andSaunders, "
J. "The LeadEffect of MarketingDecisions,
JOurnalOfMarketResearch,Vol. 22, No. 1,(1985),pp-54-65.
11. Viloassim, NJ. and Jain, D.C. "Modelling Purchase- Timing and
Brand-SwitchingBehaviour Incorporating Explanatory Variables and Un-
Obsmed Heterogeneity,
" Jowwal of Marketing Research, Vol. 28, No. I
(1991),pp.2941.

12.Neslin,SA., Henderson,C. andQuelch,J. -ConsumerPromotionsand

" MarketingScience,Vol. 4, Spring
theAccelerationof ProductPurchases,
(1985),pp.147-65.

13.Gupta,S. "Impactof SalesPromotionon When,WhatandHow Much

to Buy," Jow-nalofMarketingResearch,Vol. 25, No. 4 (1988),pp342-55.
14. Cotton, B. C. and Babb, E.M., "Consumer Responseto Promotional
Dealsp"JournalqfMaýbfing, Vol. 42, July (1978), pp.109-113.

IS- Moriarty, M. M. "Retail Promotional Effects on Intra- and Interbrand

SalesPerformance," Journal Vol. 61, Fall (1985), pp.2748.
ofRelailing,
 16. Kumar, Y. and Leone,R.P. "Measuringthe Effect of Retail Store
huwdonal Promotionson Brand and StoreSubstitution," Jownal of AfarketingRe-
tv"dolis
search,Vol. 25, No. 2, (1988),pp.178-85.
AV
t4Zqve 17. Walters,R.G. "Assessingthe Impact of Retail Price Promotionson
ProductSubstitution,Complementary Purchase, andInterstoreSalesDis-
" Jow-nalofMarketing,Vol. 55,April (1991),pp.17-28.
placement,
18. Keon, J.W. and Bayer,J. "Arf ExpertApproachto SalesPromotion
Management, " Jo=al of. 4d'verfisingResearch,June/July(1986),pp.19-
26.
19. McAllister, L. and Totten, J. "Decomposing the Promotional Burnp:
Switching, Stockpiling and Consumption Increase," paper presented at
ORSAJIIMS Joint Meeting (1985).

20. Grover, I;L and Srinivasan,V. "Evaluatingthe Multiple Effects of Retail

Promotions on Brand Loyal and Brand Switching Segments," Journal of
Marketing Research,Vol. 29, No. I (1992), pp.76-89.

21. Grover, R. and Srinivasan,V. ibid.

22. Kahn, B. E. and Louie, T.A. "Effects of Retractionof Price Promotions

on Brand Choice Behavior for Variety-Seeking and Last- Purchase-Loyal
Consumers,"Journal ofMarketingResearch,Vol. 27,No. 4 (1990), pp.279-
289.

23. Cummins,J.,SalesPromotion,KoganPage,London(1989).

24. Cotton,B.C. andBabb,E.M., op cit

25. Rothschild, M. L. and Gaidis, W.C. "Behavioural Learning Tbcory.' Its
Relevanceto Marketing and Promotions," JoUrW100f1zketing, Vol. 45,
Spring (198 1), pp.70-8.

26. "Prize Offering: Believeability Affects Enuwts' Responseto Sweep-

stakes," Premium Incentive Business,Vol. 45, No. 3 (1986), p-25.
27. Selby, E.B. and Beranek,W. "SweepstakesContests:Analysis, Strate-
gies, and Survey," 77ie.4mericanEconomicReview,Vol. 17,No. I (198 1),
pp-189-195.

28. "SweepsSponsorsReconsiderImportanceof Entry Volume," Premium

Incentive Business,Vol. 48, No. 2 (1989), pp.1 and 46-47.

29. "Accounting ConsumerBehaviour. Why They Enter One Promo

-for
OvCrAnother,"PremiumIncenfive Business,Vol. 48, No. 2 (1989), pp.8-10.
30.Toop,A., "Crackingjack!:SalesPromotionTechniquesandhow to use
lh= successfully,
" Mazecity,Santhurst,Ken%1991. Promotional
31. Keon,J.R. and Bayer, J., "An Expert Approachto SalesPromotion Competitions-
MInagement," Journal of,4dvertisingResearch,June-July,pp.19-26,1986. A Winning
Technique
32-Spa%lon,
T., op cit
47
33.Peattie,S.and Peattie,K. J., "SalesPromotion Competitions Survey,"
-A
-10:077al0fMarketingManagemeni,Vol. 93, pp.271-286,1993.
34. Mitchell, V. and Greatorex, M., "Risk Reducing StrategiesUsed in the
P=hase of Wine in the UY, " EuropeanJournal Vol. 23, No.
OfMarketing,
9#1989,pp-31-46.
)Vwdonal Appendix - Competitions survey results summitry
,:D"tiolls. No. of % of Av. Av.p*t JAI
Sponsor COMPS. COMPS PrL-t no. value (IIQ Wegration

Itilique Retailer 1,232 46.6% 20 164 Nfed

Packaged 35.1% 50 3.98 Nfed
-929
food
Consumer 517 19.5% 11 3.30 Med
goods
Grocery 344 13.0% 14 3.00 14ed
items
Drink 319 12.0% 11 3.00 Nfed

Services 188 7.11% 10 3.00 LOW

Publication 118 4.5VV* 7 2.00 Low

Tobacco 39 1.50% 15 5.00 Low

White 32 1.20% 20 5.90 High

goods
Charities 25 LOVYO 15 1.00 Low

Generic 24 0.9% 11 2.30 IlIgh

Cars 14 0.5% 11 10.40 Iligh

Notes:
1. Groceriesinclude all edible consurnables.
2. Prize number and value representthe average(mediam) and total value of
prizes awardedper competition.
3. Marketing integration is a model averagescorebetween I Oow) and 3
t(high) - see text for details.
4. Jointly sponsoredcompetitionsare included in the figures for both sponsor
types. Column totals for number andpercentageof competition therefore
exceed 2646 and 100respectively.
 Publication
-#8

'Promotional Competitions as a
Marketing Tool
in Food Retailing'

British Food Journal

Vol 100,6,1998,pp. 286-294

.
 Promotional competitions as a marketing tool In
food retailing

Sue Peattle
The University of Glamorgan Business School, Wales, UK

*&ONOthe
food by retailers and 9n (over 35per cent) associ.
rttan
*WW hascontinuedto I Introduction
grow ated with the pack3gedfood industry (see
AN"* duringthe 1990s, Appendix).
to sm"Awof retail By the end of 1994retail salesin the UK had
outlets reachednearly C155billion, an increaseof
*OWW *A of busineuhas
so humbed.In orderto more than 19per cent over 19M.However, I-The
since the start of the 1990sit is estimated that growth of sales promotionit
*01ft" tomPethive,
the food 13.8per cent of total retail outlets in the UK Salespromotion Is often definedas marketing
*KAw aoodsto makefull
havecloseddown and it is predicted that the activities which do not
OWOfadthe'tools" within communications
"arufing management situation is likely to remain tough (Keynote include advertising, selling or public rela.
*I*t S066 promotion,
Publications, 1995).In this competitive envi- tions; or evenmore simply as "special offers".
AmovA a popular marketing ronment it is vital that marketing managers Suchdefinitions are very simplistic and do
*4 Us sovw in the food retail industry use the fall range little to communicatethe versatility, variety
enjoyedthe
*QAN"k scrutiny afforded to of marketing mix tools to maximum effect. and complexity of Wes promotion In practice
Onetool that has alwaysbeen important in (Peattieand Peattie.1994);however,for the
-60"we glamorousfield of
the food retail sectoris salespromotion. In this article this simplified deftni-
101"Obving. Researchthat
fact, the 1980switnessedgrowth in salespro- purposeof
46 Inwoe does has tended to tion Is sufflcient.
'81OLmdrate motion use in almost every industry. such Promotions fall Into one of two types. value
on pricit-based
Ovft4ioas. TUm have been that by the end of the decadeexpenditure on increasing and value adding (Peattle and
I* Mod
popul" among food
salespromotion had begun to exceedthat for Peattie,1994).Value-increisft promotions
" abovethe line" advertising, according to the equation (and
"WkM as In many other manipulate quantity/price
**444 but DWO Is WWPgroup figures (FinancW Times,1989). the relationship) to
vvwing sometimes quality/price
Salespromotion growth has beenrunning at
OW Pon-price. increasethe perceivedvalue of a product
iftW Plinotions 9 per cent comparedwith 6 per cent for adver. Examples of these would be
can add
tising (Burnett, 1993),and for many large offering.
*410 for OWonuumer
while discounts.coupons,payment terms, multi.
"I"OlOWa rans, of marketing companiespromotions already accountfor up multibuys or quantity increases.
to 70per cent of the marketing communica- packs.
objectives. Value-increasingpromotions, particularly
lat MOU4"S tions budget. are the dominant
at the Useof Traditionally, salespromotion has received coupons and price cutting.
'IsIfty"M COMPMOR14one
little academicresearchcomparedwith the form. and the t)Te on which the majority of
'0ý04 Usedpopular non-price academic research Into promotions has been
JIMM*iww tools. more glamorousfield of advertising. What based.The secondgroup of salespromotions,
with a
s'" researchthere has beenhas tendedto bundle
44LZU competitions
the different forms of promotion together,or which are often overlooked4are the value.
'Awk wereJolirtly or
wholly adding (sometimes referred to as Opackaged
to assumethat oneform of promotion (usu-
up") promotions.Theseleav* the price and
**ftwW by food
retailerL
ally couponsor discount pricing) is represen-
tative of the rest. With the increasing Impor- core product untouched.and offer the cus-
tanceof salespromotion it is appropriate to tomer "something extra". Examplesof these
begin to discusssalespromotion tools indi- are product trial or s&mples.%ralued packag.
ing, free gifts, loyalty schemesor clubs, infor.
vidually and alsoto examine their use in (such brochure or in-store tnaga-
different types of industry mation as a
This article aims to explore the potential of zine) or a competition.
A number of explanationshavebeenpro-
one salespromotion tool, the promotional
competition, which representsa growing posedfor the Increasingpopularity of promo-
trend in a range of markets, especiallythe tions (Dickson and Sawyer,19W.Quelch. 1963,
foodretail market. It is part of an ongoing Shultz, 1987,Strang. 1976).A key factor is the
with advertising. Con.
project examining the use of competitions 4s changing relationship
a salespromotion tool, through studies of ventionally they were viewed as alternatives
competitions themselves,their sponsorsand to one another,with promotions seenas the
poor relation. This has changed as increased
the consumersthat respondto them. The Procter
Journal by
use market leaders such as I leinz.
project beganwith a three-yearnational
1") 266-294
survey involving 2,646competitions. Within & Gambleand McDonald'shis given promo-
tftv*Wy Pr*ss tions newfound"respectability". and as rLs.
tour-07ax) this total sample,there were 1,232(over 45per
cent) which werejointly or wholly sponsored Ing prices and Increasing"clutter" have
12K)
6« 44.1,0
Nee raised doubtsabout advertising's cost-effec- selectiveaboutwhich brands they choose
.lyw tpffmtjtlons
", »rntodinfwd ei tiveness.Nestl6'sLean Cuisinerecently aban- to stock and promote.Manufacturers are
In*kx donedTV adsto focus its marketing on below under increasing pressureto offer attrac.
---i-
im',tr F-MgJourrm the line promotions. This resulted in an tive promotional offers as incentives both
increasein volume shareof 47.1per cent and to the retailer and to the consumer.
a 1.7per cent increasein value in the market Researchhas shown that promotional
(Marketing, 1995)The two techniques are also offers can beeffective in increasInt Wes
increasingly seenas complementary with (Gupta, 1988;Neslin et aL. 19M).
increasing amounts of media advertising Persuadecustomersto stcItchto the brands
being devotedto messagesabout salespromo- orproducts wUhhigherprofit margins -
tion offers,rather than about brands them- today consumersincreasingly shop from a
selves. group of brandsrather than from one
Other factors suggestedas driving sales single brand (Shultz. 19M. There has also
promotions growth include the increasing beenan increaseIn impulse buying with
power of retailers (Toop,1992);a "snowball" consumerstending to decidetheir choice
effect where companiesare forced to match of brand at the store shelf. selecting the
competitor promotions, or risk losing market brand in the categorywhich appearsto
share(Lal, 1990);and a marketing culture in offer the bestprice/value relationship at
which time horizons are shortening (making the time of purchaserather thin necessar.
the fast salesboostthat salespromotions are ily repeating a previous or habitual pur.
perceivedto offer more attractive than the chase.Promotional offers can encourage
patient nurturing of brand image through brand switching (VIcassimand Jain. 1991)
advertising) and with an emphasison micro- and product-typesubstitutions (Cotton
marketing approaches,where salespromo- and Babb, 19-, %IorL&M
8,, 1985).If these
tions such as competitions can provide more substitutesoffer higher marginal protIts,
tailored and targeted communication than the overall proilts of the food retailer will
massmedia. increase.

I Increasing "U Ing competitions In food

profits for the food
retailer retailing
If the food retailer is unable to increaseproilt For the food retailer them are two levels at
margins on the products it currently sells which salespromotion techniquescan be
then there are three options available for used.At the aggregatelevel to promote the
increasing overall profits. Salespromotion store itself and at the lower level to promote
techniquescan contribute to eachof these specificproductson the shelves.There are
alternatives: severalaspectsof competitions which rnake
I Attract newcustomersfromcompetitors- them particularly suitable to the food retailer
Foodretailers are now competingon a for both purposes,many of which are sum.
range of additional incentives to visit their marised in Table L
store such asfacilities (e.g. in-store bak- A key benefitof promotional competitions.
eries, restaurants and special parking which is very different from unidirectional
spacesfor disabledand thosewith chil- media such asadvertising, is the ability to
drenXstore offers such as loyalty cards combine It with market researchand the
and in-store magazinesand product pro- construction of =11ing lists. For both retail.
motions suchas price cuts and multibuys. ers and manufacturers.comWition entry
Theseall add benefitsor "value" to shop- forms can provide valuable Information
pers.Kumar and Leone(1988)and Walters about customers and provide mailing lists for
(1991)both demonstratethat salesPrOMO- future promotional offers. The I lein: 100Day
tions can induce consumersto switch Driveaway wasa nation-wide promotion
retail outlets. tailored to different retail outlets In terms of
2 Induceexistingcustomersto buy more- The the type of competition and prizes offered. An
UK foodretailing industry is now domi- InnovaUveapproachto gaining information
nated by four major retailers - Sainsburys, about Its consumersand the effectivenessof
Tesco,Safewayand Asda.Theirjoint sales its promotional spendInvolvedthe use of a
accountedfor over 230billion in 1994or 39 competition foil scratch card. This Included
per cent of the total UK market (Keynote eight deliberately brief questionson make-up
Publications, 1995).With their increasing of the entrant's family in ageand number.
control and given that every month over shopping habits plus a key question on
SM new products are launched into the whether purchasing habits had changedto
grocery trade,retailers can afford to be take advantageof the promotion. All could be
12871
 S.0 Pearje completedin under a minute without the use I The
f'"MOV competitions consumer as a competitor
4 '?1W*@VrJ
as of a writing Implement.This yielded a 60per
toolInfood Competitions are becomingincreasingly
cent responserate to a large scaletest involv-
1W .0tirt National Loottery
PUM foodJOUMAI ing three promotions and 30,000participants. popular with cons=em
=/6119981286-294 Resultsshowedthat somepromotions per- figures show that ESbillion has beenspenton
formed better in oneretail chain than in tickets since Its launch in November 1994
others. This information was then usedfor with over 30million peopleplaying every
selling to key multiple chains evenwhile the week (Attkenhead.1995).Survey data from
I larris/Marketing Week(Cummins. 1989),
promotion was in progress.
showsthat some70per cent of British con-
If the performance was aboveexpectations,
sumersregularly participate In product. or
the retail outlet could be told in time to service-relatedcompetitions.
IncreaseIts stockholdings.If it was not per- Wecan Intuitively divide up consumers
forming as well as expected,there was an Into three typesof "competitive cons=ero
opportunity to use more in-store displaysand segmentsaccordingto their attitude to com-
local advertising (Gerrie, 1986). petitions:
i Non-competitors- who would consider
competitions a wasteof time. stampsor
telephoneunits;
1;ýj
SV-0441benefits 2 Passivecompetitors- who would enter
of using promotionalcompetitions competitions but would not chancetheir
Mental bwwftt normal purchasing behaviourJust to enter
Notes
3) a competition,
OPPortunItles Competitions canInvolveattention-grabbing packaging 3 Active competitors- whowould change
andPOSmaterial.Storevisits canbeencouraged by their purchasebehaviour (such as timing
requiringentriesto beposted'in-store' or brand choiceor retail outlet) to enter an
*?00dý%COMurnef Information Competitions canprovideconsumers with Information attractive competition.
andIncreaseproductawareness throughentrymater. Consumersare not rigidly defined by these
lal. Asda'smonthlycustomermagazine recentlyfea- classifications,Insteadthey indicate a ten-
turedcompetitionprizesworthL14,500 dency that a personhas.or a position in rela.
t4*0" InteractionCompetitions A
consumer cancreatereal between
Interaction the tion to a specific competition. confirmed
customer,the productandthe retailer(e.g. through non-competitor might. for ex=ple, break a
customersanalysingproductor storeinformationto lifetime's habit to enter a competition offer.
answerquestions,rankattributesor deviseslogans) ing the holiday of their dreamsas a prize.
t4w Owtainty Cross-referencing the cons=er's competi.
Competitions Involvepredictablecostsandaremore
tiveness against their brand Involvement
cost-effectiveIn maintainingperceivedqualitylevels
thangive-away (sincegivingcustomers produces a picture of the opportunities which
promotions
freebies using a Wes promotion competition presents
quality canbeprohibitivelyexpensive)
*WSWIl (Figure 1).
stability Competitions avoidthe dangersassociatedwith price The Implication of this model Is that there
cuts of potentialpricewars,or of loweringcustomers' are two key groups that a competition can be
referenceprices(whichwill resultIn reducedsales targeted at. Newcustomerscan be developed
oncethe normalretailpriceIs resumed)(Dodson et al., from amongthe potential users and some
1978) from competitors.and (provided that
UWWnspotantial poached
Competitions and their prizescan become the focus of some are retained) this will provide long.
advertisingas part of anintegratedcommunications term benefitsof an increasedcustomer base
campaign.ForexampleSpillerspetfoodsrecently and an expandedmarket. Researchsuggests
launcheda L2.5 millionInstantwin promotionbacked that this Is possiblebecauseconsumerswho
by a Ll millionTVadvertisingcampaign(Grocer, try a promotedbrand and are satisfied with It
1996) have an increasedprobability of a repeat
Competitions purchase. This is particularly true of previ.
offeropportunitiesto link upwith part- (Cotton and Babb. 1978;Roth-
nersto sharecosts,swapresourcesor providereciprO. ous non-users
schild and Galdis, 1981). The potential of
Calaccessto consumers. Forexample,newcarsas
Instant competitions to create such changes In con.
prizesparkedoutsidesupermarkets provide
flow s=er behaviour Is shown by the results of a
showrooms forcarretallerswith a constant of
Neilsen Promotion Servicessurvey in
potentialcustomers
Canada.This showedthat 53per cent of com-
Competitions areusuallyassociatedwith producing petition entrants will usea brand specifically
short-termsalesboosts,buttheycancontribute to enter a competition. and 95per cent of
towardsa rangeof communication andothermarket- those will selectthe brand again following
Ingobjectives(PeattleandPeattle,1993a)
the competition.
fuel
 Figure I
o"Poriflor's as Promolinp, to t1w compvtij, ý,(,
"W%ret low in fwd
INVO[VEMENT
t" Jowmal WIIH PRODUC i
'$"] 286-294

HIGH

LOYAL
C', IST0M[R!,

ýýO%
CUMPEMOR ýI..
LOYAL CQAýIUM coon ..
cot-

Strategic beniefit,;
POTENTIAL Awareness from eroding
USER benefits only competitor Share
aW expanding
market

LOW Hl(jH
PASSIVE ACTIVE
COMPETITOR COMPETITOR

INVOLVEMEýjT WLT
-, -HQQN2fJ-ll-l0i5

I Sales c, in petitions (86 per cent) involved dual spon

promotion competitions how cornpetiflons call provide
in the food retail -, s'showing
industry -a survey -linkup" opportunitý In p..,
irticulai- Ihe
()%,ýl ;I dif rw, ults show that compettion% are %fill doini
ten, jit conilwIll 1011", nated by retailers and Ili(- packalzed f(Kxi
I Ild list ry
gathered. Details fronj special packs. entry
fornisand conipetition rtiles wore all stwfie(l Tahlv l1almi provides details (it the competi
to build upa picture of owse conipetit ions. tions themselve% in term% (it prize value.
number otprizesand markeunit integration
whicli was enco(ledan(i thenanalysed using
Minitab. 'I'lic saniplo consisted onk, ofconlpe- In total over 1.33SK)owere offered worth over
titions wliich were ýwailable on a national or f1 .1million. run by retailer-,, alone and those
regional bnsis docal ones,were not Included) run in conjunct lon with other six)nsors
and In terms of the design of Ilie compet it ions.
wifli a pro(hict orsvi,
Vice'a.", opp)"O'd to hrinp the well over hall'of the 1.232 comp-ef it ions
aII or part (of'
involvi-d answering questions and devising a
product 01,"cl-vice itsolfoso the 111111)(11,011%
The general sur%vy showed this to be
('0111petition.,wilicil I-egill; 1J.fealtires of sk)Van
the most popular type of competition for
%\,,I (. 11(11
1111-111(h.
11)
almost all industries, The ma)omy of the
c(, nipetitions (t;6 per rent ý ti-wil point (if sale
Extent and nature of competition for entry forms, although 215per vent
use
'I'll, Aplit-Ildix sh()%ýý'111; lt cmill)(1 Al 1,
I'm used hy ;I large variety ol'industrips Ii
Promoting with prizes
charities to soýrvicvs. However. retailen, ai
the major um, r ()f'this form of sales proni(c-:
being invoked in 1,232 or 46.6 per cent of'thý
total sainpl(ý with the packaged food industrN are liNýno means the oniv clement which
III S('(.'()11(1place with 929 (35.1 1)(11' celit) Table deternmit-, hokv attractive a compention is to
11show's the hreakdown of Sponsors withill customvrý survv% data fmm America
the retail 1'11(ý111.1joritNIol'the retall rovealed that 60 1)(.1 cent of ý (1111114,11tor"
12891
 14 4et-I entered "Just for the fun of It" and 61per cent around the median values for the number of
*w'W'OnAlCOMMItionsas of entrants into competitions
6"*%4rPVt*Win food were found to prizes offered and their value, to producefour
be "unsure of what the prizes offered were" categoriesof competition:
6mqlhff)odjoumw (PremiumIncentiveBusiness,1986).Selbyand I Jackpots(few prizes/high value),
112281286-294 Beranek (1981)saw the attraction of a compe- 2 Allsers(few prizes/low value).
tition as a function of five factors: 3 Everyonea winner (many prizes/low
I the cost of entering, value);
2 the monetary value of the prizes (or per- 4 Bonan= (many prizes/high value),
haps,more accurately,the utility of the
From the total survey acrossall industries it
prizes); wasfound that the retail sector overall tended
3 the number of prizes and the perceived to offer an averagenumber of prizes but with
probability of winning-, a prize value slightly below average(Peattie
4 the pleasuresof gambling (or perhaps
and Peattle.1993b).
more accurately of competing); Figure 2 presentssuch a matrix for the
5 the desire to occupyleisure time.
retailer subset.It can be seenthat the part-
They concludedthat all five factors are nership of retailers and packaged food as well
important, but that the importance of the last as sponsoringthe largest number of competi.
two has beenobscuredby an overemphasis tions also tends to offer the most prizes with
on rational-economicdecision-making the largest value, beIng ftrmly locatedin the
approachesbasedaround the first three. 1413onanza" category However.retailers alone
In economicterms, the incentive provided are located in the "miser" category with few
by a competition relates to two key dimen- prizes of a low prize value. This perhaps Wus.
sions of the prizes involved: their value and trates that retailers are indeedable to exer.
their number Since the attractivenessof a cise their "distributor power" to persuade
competition Is partly related to the expected food manufacturers to put more fimnce into
Utility and the perceivedprobability of win- salespromotion.
ning, sponsorscan chooseto rely on high
Prize value or high prize numbers (or both) to I The
makethe maximum impact. Table H shows of fectivenoss of sales
that the averagevalue of prizes offered in promotion competitions
eachcompetition and in particular the aver- Measuring the effectivenessof competitions
agenumber of prizes differed betweenthe is not simple,and is almost Impossibleto do
various sponsors.(The averagesused just by studying the competitions themselves.
throughout are median figures, usedbecause Oneobviousanswer.and a very conventional
arithmetical meanscan be badly skewedby measureof salespromotion effectiveness.Is
one or two competitions offering exceptional to analyseWes patterns beforeand after the
numbersor value of prizes:for example,Our promotion. Unfortunately. this is not really
Price Recordshopsoffered over 1,000prizes appropriate for the many competitions which
worth more than E20,000 in one competition are not directly linked to purchasing,and It
alone.) The approachadoptedby competition ignorespotential benet1tsof Increasedaware.
sponsorscan be plotted on a "prize philoso- nessor increasedsatisfaction amongexisting
phy matrix" which divides sponsorsup users.In the caseof the retail sector.17per
IZZ-4
tlý"eY results summary

Rumberof Proportionof Averageprizevalue Totalprize Averageprize Totalprize MarketIntegration

CompItitlons Comps(%) (11000s) (median) number (so text fordetails)
medianV000s) value number
am
*044foods 518 30 77,078 Medium
411ý 42 3.0 2,650.8
44 COW" 201 16 2.0 775.88 15. 14,94 Medium
UWWAW
*00,4~ goods 185 11 17,5W Medium
AUw 15 3.0 1,422.6
VOY 172 14 2.6 8,971.5 10 10,785 LOW
6*14
' 'w " 6iftits 107 9 289.14 Is 8.782 Medium
AV.AW*4 Oth 1.5
w 49 4 2.68 245,08 23 3.942 medium
low
1.232 100 2.64 14.355.00 20 133.042
:Z 1-r4rOCOMOI
includeall non-edible
consum 2 The'Retailer other*categoryincludesall thoset hat for
accounted lessthan2 percent
ables; . and

ýkn j
 Figure 2
Prize philosophy matrix
W in food

HI
17"t 1: 091286-294

Eyervonea WInt7gr

PackagedFood

PRIZE
NUMBER

DrInk Groceries
conwime Goo$

Retaileronly

Misers

LO ml
PRIZEVALUE

cent of the competitions surveyed did not prizes, was the "marketing integration" of
require a purchase,so there Is obviously the competitions. Competitions vary In terms
more to thesepromotional competitions than of whether either the prize or the mechanics
a straightforward desire to boost in the of the competition relate back to the product
sales
short term. Competitions may be usedto or service being promoted. They developed a
encouragepotential customersto read prod- very crude methodof classifying a competi.
uct information tion according to its marketing Integration as
or visit a retail outlet, which
increasesthe chanceof an eventual sale. follows:
Entry numbers is another conventional mea- - Low- no link betweenproduct and compe-
sure for competition effectiveness,but this tition or prize.
has declined in popularity owing to the - Medium -a link between competition or
increasing number of "hobbyist competitors" prize and product;
and the - High - product. prize and competition all
useof multiple entries, with one com-
Petition found to contain over 1.000entries related.
from a single Individual (Premium Incentive In the total survey (seeAppendix) when
Business,1989a).Somecompanieshavetried analysing all competitions Involving retailers
to measurethe successof competitions in the sector wason a par with packaW foods
terms of changedconsumerawareness,but and grocery items with a medium rating for
this can be difficult and costly to measure marketing Integration. However. from Table
effectively (PremiumIncentiveBusiness, rl, which givesa breakdo%%m of sponsors,we
1989b).Le Tigre sportswearin the USA seethat retailers. when organizing competi.
researchedthe effectivenessof its "Rock and tions alone.tend to fail down on the market.
Roar Fantasy" competition (offering travel ing integration score,leading to the conclu.
prizes) and found that, although there wasno sion that two headsare better than one when
sales increase, It Improved the image of the it comes to the design of competitions. It also
brand amongthe target group of 18-24year showsthat there Is still room for improving
old men. the effectivenessof promotional competitions
One measuredevisedby Peattie and Peattie used.as on averagenoneof the coalitions led
(1993b)to try and judge competition effective- to a high marketing Integration. One good
ness,and one which takes into account more exampleof a themed competition was run by
than simply the economicdimensions of Don Cortez Alne offering aM holiday to
12911
 . tora't
Spain.The competition involved estimating doesthe sell-bydatecomparewith the
0'*t Mothlons os
.
* 04,"oý"4 tod hl tmd the position of the hidden treasure on a Span- competition closingdate?
w*hpf Ish nautical map and suggestinga sloganas 7 EvaluatIon - how long will the effective.
'mir 1,000journal to why it was the perfect wine for nautical nessof the competition be measuredin
fýXA UM) 286-294 occasions. terms of achieving Its objectivvs?Alio
should be responsiblefor evaluation, when
I Getting the and using what measures?
most out of Many of the abovepoints may seemto be
competitions
common-sensebut history showsthat even
Competitions,like any form of marketing large and sophisticatedcompanieswith a
communication, will only be effective if prop- long track recordotsuccessfulsalespromo.
erly planned and executed.However.sales tions can be caughtout if the promotion is not
promotion generally is an area which has not carefully plannedLPepsi-ColaIn the rhillp.
beenafforded the sort of thorough planning pines ran a bungledcompetition which has so
associatedwith advertising campaigns.Sev- far cost the companyover E8million, has led
eral authors such as Toop(1991),Keonand to them facing 22.000lawsuits. has provoked
Bayer (1986)and Peattle and Peattie (1993b) riots, death threats against company execu-
haveput forward useful planning guidelines tives and grenadeattackson Pepsilorries.
for marketers on the practicalities of running
salespromotions. The COMPETEchecklist I Conclusions and discussion
which follows, aims specifically to assist
marketers in planning a successfulsales Although the foodretail market has been
promotion competition, by prompting thor- growing steadily over the last ten years,the
ough consideration of sevenkey areas: number of players In the market has been
I Co-sponsors will the competition be run decreasing.Evenlarger retailers havenot
-
by the foodretailer alone or run in con- escapedthe ravagesof the market downturn
Junction with another industry ? and in the Wt 12months a number of major
2 Objectives- what are the marketing objec- chains havebeentaken over or goneout of
tives of the competition? Is it only a short- business.For exampleAMR= Low, Lo-Cost
term salesboostor are there longer-term and Shoprite are all under now ownership,
objectivessuch as generating new cus- while Asda his undergonemajor restructur.
tomers or raising store and product aware- ing as have the newly-mergedGatewayand
ness? What messagewill it sendto the Kwiksave.In this economicclimate, the food
consumer? retailer cannot be complacent.The increased
3 Mechanics- how will the competition be power of foodretailers has allowed them to
designed,delivered, enteredand Judged? demandmore and mora expenditure from the
How can the mechanicsof the competition manufacturer to promote their brands on the
best meetits objectives?What form of shelf. I [owevccconsumerschooseretail out.
lets not just on the price and range of prod.
competition will most appealto our target
ucts available but also on the service and
market?What could go wrong logistically facilities of the storeItself. This article has
and how could It be prevented?
4 Prizes- what number and value of prizes shown that value-addingsalespromot Ions
generally.and competitions in particular,
will be required to make the competition offer a range of benefitsfor promoting both
attractive? Can the prizes be chosento retail outlets themselvesand the products
reinforce the product service or retail that they offer Competitionsare not how.
concept?What prizes will attract target ever,any form of panaceafor mmketing prob-
cons=ers? lems and like any form of salespromotion are
5 Expenditure- how much of the marketing only effective if not overusedor abused.
budgetand time of the marketing manage- The survey his shoumthat food retailers in
ment shouldthe competition consume? partnership with the manufacturers of pack.
How can the judging be madeas simple as agedfood havemuch experienceof competi.
possible? tions and are oneof the principal users of this
6 Timing - should the competition be usedto type of salespromotion. I lowever,when oper.
counteract seasonallows, reinforce sea. ating alone, retailers still h3veroom for
sonal highs or "spoil" rivals'promotions? improvement in terms of prize philosophy
Shouldthe gapbetweenlaunch and the and marketing Integration.
closing datebe long to maximise the effect In the competitive retail market of the
or short to prevent loss of consumerinter- 1990s.marketers am under constant pressure
est?Howlong should leaflets and posters to create and sustain competitive advantage.
be displayed?For perishable goodshow It can be all too easyto rely on conventional
1
-2"j
&a &ONmil
*eww approachessuch as price cutting when alter. Gerrit. A. (ING). 'Sale of the century", Markethi&
.o*lw com"tItIons as natives such as competitions offer greater 2 October.pp.28-32.
ft*O'hIrIVto& In food Grocer(1996XTacks and promotions digest",
Atwit-C opportunities for creativity and brand-build-
ing. Improved technology is adding to these Grocer.27Jul%pp. 36.
fjlr so too Journal Cupts, S. (1988). Olmpactof salespromotion on
I'Mill 296-294 opportunities. For example,Oggi in Tavola(a
when. what and how much to buy". Journal of
range of pre-cookedconveniencefoodsmar- Marketing Research.Vol. 23No. 4.pp. 34243.
keted in Italy) gained valuable display space
Keon. J.W.and Bayer.A (IM). *An expert
for its novel electronic gaming machine
approach to Wes promotion m=sgement*.
which drew much attention becauseof the Journal qfAdvertising Research.Jun*/July,
flashing lights and spaceage soundsemitted. pp.19-26.
A sealedcard was given to those consumers Keynote Publications (IM). Retailing In the UK-
purchasing the product. By tapping the bum- VK.Alarket Review.
ber on the card into the machine, shoppers Kumsz V and Eeone.R.R (1968),ONleasuringtht
had the chanceto win various prizes. Salesof effect of retail store promotions an brand and
the product increasedby between20per cent store substitution*. Journal qfAtaAeting
and 300per cent dependingon the location of Res#&TAVol. 23No. 2. pp. 1,8433.
the store and the character of its shoppers 1jLLX (19W),"Manufacturer trod# deals and retail
(Toop,1992). price promotions*. Journal qfAlarketing
Another exampleof an innovative competi- Research,Vol. 27No. 6. pp. 4284,L
Alarketing (19DV,1 loinz beefsup healthy sector".
tion has beenlaunchedby Coca-ColaGB with
Alarkttint 17August. P.S.
the UK's first interactive TV promotion on Its Moriarty. NLNL(19BS). *Rttail promotional effects
fruit juice drink Five Alive. Consumerscan
on intra- and interbrand Wes performance",
Win mountain bikes and other top prizes if a Journal ofRetalling, Vol. $1.FAZ pp. 2748.
winning messageis flashedup when a Neslin. S.X, I lenderson. C. and Quelck J. (IM),
decoder(peeledoff the special packs) is held "Consumer promotions and the acceleration
up to the brands ad (Grocer,19%).Meanwhile, of product purchases."Marketing ScW" Vol.
Spillers is offering to pay for consumers' 4, Spring. pp. 1474M
shopping in an instant-win promotion on Its Peattle KA and Peattie S.(IMU). "Sales promo.
premium dog food Winalot. Shopperswill tion - playing to win". Journal ofAlarAttiM
know if they havewon 950towards their bill Management.Vol. 9 No. 3.pp. =-M.
as soonas the label's barcodehas been Peattie,S. and Nettle. KA (19S3b).*Sales promo.
cannedat the till (Grocer,19%). tion competitions -a sur%vy*.Journal of
AMA tring Af~mtnl. Vol. 9, No. 3, pp. 271.
The article has shown that competitions
hould no longer be regardedas a short-term. $4.
"quick fix" tool. If properly managed.compe- Peattie,S. and Prattio. KJ, (1994)."Sales promo.
tion" In Baker.NIA (M). rheAlarketing
titions can offer the food retailer a versatile Book. Ord ed).Butterworth. I loinemann.
and cost-effectivemeansof marketing com- Oxford.
munication for achieving both short-term Premium Incewive Business(19U). 'Prize offer.
and long-term objectives. Ing- believability effects entrants'responst to
s-Awpstak*s*,Premium IncentiveBusines4
References Vol. 45No.3. p. 2S.
Altkenhead.D.(1995), "Lotteryismswin instant Premium IncentiveBusinessOWAX *Svkwps
acceptance", Independent,29December sponsorsreconsider importance of entry
Barnett.J.J.(1993), Promorion.Alanagement, volumt*, Premium IncentiveDustness.Vol. 48
HoughtonMOM, Boston.NM No. 2. pp61.4647.
Cotton.D.C.andBabb,EAL (1978), oConstuner Premium Inctntitt BuAntss (IMb), OAccounting
responseto promotionaldeals".Journalqf for consumer behaviour why they enter one
Marketing,Vol.42,July.pp.109-13. promo over another*. Premium 1mvnittv
Cummins,J.(1989). SaksPromotion:11OW to Oe- llushwss. Vol. 48No. Z ppý8.10.
at#andImplementCampaigniThatReallY Quelch. J.A. time to mike trade promo.
Work.KoganPage.London. tion mort productive*, 11anard Business
Dickson.P& andSawyer. A.G.(19N), Theprice Rtvkt4 Vol. 61No. 3. pp. 130-X
,
knowledgeandsearchof supermarketshop- Rothschild. NM and Gaidis. WC.(1980. "Dehav-
pers.", JournalofMarketing,VoL54.JulY.PP. loural learnft theory: Its relevanceto mar.
42-63. keting and promotions*, Journal cf. VatAtt-
Dodson.J.A.. Tybout,A.M. andSternthal.D. ing. Vol. 43.SprUm MIM-78.
(1978), "Impactsof dealsanddealretractions Selby.EA and Beranek. %V. (190), "SAwplukes
on brandswitching",JournalofAlarketing contestv analysis. strAloglet, and sur%vr,
Research. Vol.15No.1.pp.72-81. rht Amerlmn Emnomic M-14tutVol. 17No. 1.
FinancialTimes(1989). "Worldwidemarketing pp. 189.9&
- expenditure1989". FinancialTimm 30 Shultz. D.E. 0987)."Above or below the line t
November. p. 13. Growth of salespromotion in the United
12931
 States.", International Journal ofAdvertising Vicassim, NJ. and Jairý D.C. (1991).'Modelling
competitionsas Vol. 6, pp. 17-27. purchawtiming and brand-switchins behav-
ffw%'Kintto$ In food Strang, XA. (1976),*Salespromotion: fast growth. four incorporating explanstory variables and
611UP
faulty mannement. ", Harvard Business unobsen-edheterogeneity". JournaloOlar,
food JOUMS, Revlei4 Vol. 64,pp. 115-24. kering Ptmrch, Vol. 28No. 1, pp. 2941.
IV615)286-294 Toop,A. (1991).CrackiiWack4- SalesPromotion Waltem R.G.(1991). *Assessingthe Impact of retail
7khniques and How to UseThem Succtssfullx price promotions on product substitution.
Mazecity,SandhurstýKent. complementw7 purctwo. and inttrstore
Toop.A. (1992),European SalesPromotionvGrrat Wes displactment. * Journal ofAlarkering
Campaignsin Action, Kogan Page,London. Vol. &S,ApriL pp617-28.

Appendix
Competitions survey results summary

Numberof Percentage Averageprize Averageprits Market

Sponsor competition$ of compsN number value(U) Integration
Retailer 1,232 46.6 20 2.64 Medium
Packagedfoods 929 35.1 50 3.98 Medium
Consumer goods 517 19.5 11 3.5 Medium
Groceryitems 344 13.0 14 3.0 hwvm
Drink 319 12.1 11 3.0 Mediurn
Services 188 7.11 10 5.0 LOW
Publication 118 4.5 7 2.0 LOW
Tobacco 39 1.5 15 5.0 LOW
Whitegoods 32 L2 20 5.9 High
Charities 25 1.0 15 LO LOW
Generic 24 0.9 11 2.3 Kgh
Cars 14 0.5 11 10.4 Hp

Notes:
1. GroceriesIncludeall non-edible
consumables
2. Average prizenumberandvaluearerepresented bythem0lanvalue
3. Marketing Integration
IS8 MOC131
wore bet*een I (low)and3 (high)- set textfor
4. Jointlysponsoredcompetitionsare in
included the for
figutes both sponsw types.Column
total$fw number
and
percentage of competitions exceed2.646and100reswtively
therefore

n4J
 Publication N9
-

'Promotional Colilpetitions as a Strategic

Marketing Weapon'

journal of Marketing-Management

Vol. 13,8,19979pp. 777-789.

 778 Ken Peattie et al.

moving consumer goods (FMCG) companies, who are actively involved in

sPo"oring Promotional competitions. The aim of the survey was to try to better
understandthe way in which this promotional tool is used, and to try to empirically
test someof the key from the work, in
propositions that evolved earlier research
Particular those relating to the potential of competitions to play a role within
marketingcommunicationsstrategy that goesbeyond the purely tactical.

Sales Promotion: A Tale of Price and Prejudice?

In comparison tio,
the more glamorous and heavily researched field of advertising,
sales Promotion has frequently been viewed as having a role in marketing
Communications strategy that is limited in scope if not in scale. There has been a
steady stream of academic since the 1960s that has created a
research conducted
number Of generally held including beliefs that:
prejudices about sales promotion
As an" external can boost short-term sales, but will not
stimulus" promotions
influence consumers (Dodson et al. 1978; Bawa and Shoemaker
once removed
1987).
By altering the "deal" will lower their
offered to customers, promotions
referenceprice, leading to post-promotional disaffection once the deal reverts
to normal (Monroe 1973; Winer 1986; Lattin and Bucklin 1989;Kalwani et al.
1990).
Promotional of a brand because they
pricing will lower customers' evaluation
use price as a Surrogate measure of quality (Doob et al. 1969; Dodson et al.
1978).
Promotions important in the timing rather than the level of
are more changing
Purchasing because customers tend to buy earlier or stockpile during
Promotions and then buy less afterwards (Frank and Massey 1971;Doyle and
Saunders 1985).
The view limited tactical when compared to
Of Promotions as having a role
advertis-19 was best by comments from two of the top
perhaps summed up
management the Ogilvy and Mather. The first was an
of advertising agency
assertionby Ken Roman while product benefits (and
by implication that promotions rent customers
the advertising campaigns that communicate them) own customers.
The second
came from David Ogilvy himself that.
"In 1981, US manufacturers spent 60 per cent more on
promotion than on advertising, and distributed
1,024,000,000,000 coupons. Bloody fools! " (Ogilvy
1983).
One reason
why a difference may exist between observations of promotional
cOnipetitionsin
use, and academic preconceptions aboýýtsales promotion generally,
"lay relate to the dominance "value increasing"
of research examining price-based,
r"OneY-offdeals literature. These are different in
and coupons within the academic
rrýy waYs to tools that includes
the "value-adding" group of promotional
COMPetitions(Peattie Peattie 1995).Another former top advertising practitioner,
and
Jo""t4l OfM4rýeling M4n4gement,
1997,13,777-789

KenPeamel Promotional Competitions

2 ' as
SuePeattie,and
E. B. Ernafo' a Strategic Marketing
Weapon
ICandffBusiness
2 schooi,
and Universityof SaksPromotion togrowin terms
continues
activity ofthenumber,
GlamoganBusiness scale
and ofpromotional
variety being
techniques by
used companies
&hool Research
in their marketingcommunication campai gns. among
marketingacademics hasyet to catchup with thisrealityandsales
promotioncontinues to from
suffer relative neglect compared to
from
adverfising; a tendencyfor allpromotional to
tools he tarredwith
a rationaleconomic brush; and from being labelledas a set of
"tactical"toolsthat lack the strategicbrand-building possibilities
offeredby advertising.71is articlebuilds uponearlierresearch
the
examining communication potential of competitions, to test
communications benefits
empiricallywhetherthepotential marketing
for andpursued by
claimed competitions are actuallyrecognised
marketingpractitioners.

Introduction
The growing
importance of promotional competitions as a marketing tool was
elPlOredin two (Peattie Peattie
1993a, articles in Joumal of Marketing Manageinent, 9(3) and
b). Through both
a review of the literature relating to sales promotions and
COMpetitions,
and a survey, these articles presented a picture of competitions as a
versatile creative
and cost-effective marketing tool. This view contradicted much of
the conventional
liraited, academic wisdom about sales promotions, which portrays them as
and often counter-productive, tactical weapons.
Another feature
and a key weakness, of this exploratory research was that
although promoti -, input
from the OQ competitions themselves were studied, there was no
companies that sponsor and run competitions as part of their marketing
co"'Munications
efforts. So although a number of propositions about the use of
cOr"petitions in
marketing were deduced from the information gathered, these
ProPosition: have
s
The Editorial remained largely untested until now.
by Baker (1993)for Joumal of Marketing Management,9(3) concluded
that-

$'(untilnow the topic of salespromotionhasbeensomethingof

a Cinderellaamongstacademicresearchers. This clearly does
not reflectits importancein practiceand it is hopedthat these
t*wOpapers will encouragefurther contributions on the
subject.-
"his
paper aims to further to the study of sales promotion by
Pres!ntiTI9 make a contribution
the results among marketing managers of fast
--
co,rres
'ZILLf, of a survey conducted
N, Pondenceto be Pe,, Cardiff BusinessSchool,Aberconway Building, Colurn
addressed to: Ken ttie,
, Cardiff CFI 31EU;EnjaiL.Peattie@Cardiff.ac.uk
e--
0267-2M/97/080777
@1997 The Dryden Press
+ 13 $12.00/0
 778
Ken Peattie et al.

moving consumer goods (FMCG) companies, who are actively involved in

Sponsoringpromotional competitions. 7he of the survey was to try to better
aim
understandthe way in which this tool is used,and to try to empirically
test someof the key promotional
propositions that evolved from the earlier researchwork, in
Particular those relating to the
potential of competitions to play a role within
marketing communications
strategy that goes beyond the purely tactical.

Sales Promotion: A Tale of Price and Prejudice?

Irl comparison
to the inore glamorous and heavily researched field of advertising,
sales Promotion has frequently been having in marketing
viewed as a role
Communications is limited in if in There has been a
strategy that scope not scale.
steady stream of the 1960s that has created a
academic research conducted since
number Of generally held including beliefs that:
prejudices about sales promotion
- As an "external stimulus- promotions can boost short-term sales,but will not
influence consumers (Dodson 1978; Bawa and Shoemaker
once removed et al.
1987).
- By altering the "deal" offered to customers, promotions will lower their
referenceprice, leading to post-promotional disaffection once the deal reverts
to normal (Monroe 1973; Winer 1986; Lattin and Bucklin 1989;Kalwani et al.
1990).
- Promotional pricing will lower customers' evaluation of a brand because they
use Price as a surrogate measure of quality (Doob et al. 1969; Dodson et al.
1978).
Promotions in the timing than the level of
are more important changing rather
Purchasing because customers tend to buy earlier or stockpile during
Pro'notions and then buy less afterwards (Frank and Massey 1971;Doyle and
Saunders 1985).
7he view
of promotions as having a limited tactical role when compared to
advertising was by from two of the top
perhaps best summed up comments
management Ogilvy Mather. The first was an
of the advertising agency and
'Issertionby Ken Roman that while product benefits (and
by irnplicatiol, promotions rent customers
the advertising campaigns that communicate them) own customers-
The second
came from David Ogilvy himself that.
"In 1981, US manufactLrers spent 60 per cent more on
promotion than on advertising, and distributed
1,024,000,000,000 coupons. Bloody fools! " (Ogilvy
1983).
One reason
why a difference may exist between observations of promotional
C0111petitiOr's
in use, and academic preconceptions about sales promotion generally,
nlay relate to the
dominance of research examining price-based, "value increasing"
Mo'IeY-Offdeals literature. These different in
and coupons wridiin the acaden-dc are
ala"Y ways to tools that includes
the "value-adding- group of promotional
cOnIpetitio.
ns Weattie and Peattie 1995).Another former top advertising practitioner,
 Promotional Competitions as a Strategic Marketing Weqpon 779

Jones(1990),in Harvard
a BusinessReviewarticle entitled -The Doublejeopardy of
SalesPromotion"
provides a damning indictment that summarisedthe caseagainst
'ales Promotion. He suggeststhat faced have
beenguilty companies, with saturated markets,
of misguidedly channelling money away from above-the-lineadvertis-
ing and "fighting
with fury for market share;using promotions (generallya high
costactivity) as the
main tactical weapon." His conclusionsare that.
"A Promotion
rarely stimulates repeatpurchase."
"There is overwhelming 'the is limited to
evidence that consumer sales effect
the time period of the itself.'"
"A promotion promotion
often also produces a 'mortgaging' effect by bringing forward
salesfrom a later period."
"Promotions
are said to devalue the image of the promoted brand in the
consumers'eyes.-
I-iowever, the danger forms
of extending such conclusions to all of sales
PrOIr`OtiOII is that the entire analysis is based on the assumption that "In most
circumstances, promotions meanprice reductions." Pricecutting is very different in
alany `waYsto the "value
adding" promotional tools such as premiums, customer
clubs,loyalty schemes (Peattie Peattie 1995). Value increasing
Promotionswork and competitions and
on a very rational economic basis by altering the basic "deal" so
thatthe customer for less
for the gets the same amount of product money, or more product
samemoney.As such their benefitsare indeed likely to be limited to the life
Ofthe promotion limited to salesuplifts (although an ftnproved deal might
conceivablyimprove and
a customer's disposition towards a supplier). Competitions,
like other
value-adding promotions, seek to add something different into the
customer'sPurchase,in form and
havingthe the of the enjoyment of entering a competition
Opportunityto win somethingfor nothing. Theprice and the product in
suchpromotions
remain
Another important essentiallyunchanged.
point about much of the previous research into sales
PronlotioIl,is that in have
IiInitedthemselves analysing the effects of promotions, researchers generally
to measuring the impact of the promotion on sales patterns. As
such,anYmore long-term
benefitsthat might comefrom increasinglevelsof brand
awareness from improving customerperceptionswould tend to be overlooked.
Evidenceisor
gradually building to challenge some of these prejudices against sales
Pror'aot'ol- Some improved post-promotion
Plirchaseprobabilities researchers have found evidence of
(Cotton and Babb 1978; Rothschild and Gaidis 1981) and
evidencerefuting
brand the idea that price promotions lower customer perceptions of a
avis 1992). Value-addingpromotionssuch as competitions, are being
foundtThaveet al.
the potential to make a long-term contribution to the management of
a brand beyond for Winners"
simple sales uplifts. Consider the "Looking
competition increase in
run by Goodyear in Germany. Not only did this turnover
Participating
levels outlets during the promotion by 25%, but it also boosted more general
of brand awarenessfrom 12Z% to 30.5%(Toop199?).
As Our increasingly
understanding of salespromotion increases, it is becoming
clearthat it is by lumping
thedifferent inappropriate to research and write about promotions all
findings elements of the salespromotion toolkit together and assuming that
relating
theincreasing to one type of tool will apply to salespromotion general. in Given
level of marketing communicationsbudgets being channelledinto
780 Ken Peattic et al.

promotions,there is an increasingneed to break down the salespromotion toolkit

and conductresearchinto eachof the tools within it.

The Role of Promotional Competitions Marketing Tool: The Survey

as a
Two previous studies,
which specifically examined promotional compCtitions
(Peattie and Peattie 1993a,b)
used observations of 2,646competitions to make some
deductions about how
competitions can be used, and are being used, by marketers.
7his earlier research
claimed that competitions have the potential to provide a wide
range of tactical and strategic benefits to marketers beyond simply boosting sales
volumes or altering salespatterns. This study aimed to try to test whether marketers
in practice were seeking benefits from beyond the merely tactical. The
competitions,
specific claims that this study sought to test were that promotional competitions had
the potential to:

- Improve brand awarenessand customerattitudes towards a brand in ways

that would outlive the competition itself.
- Stimulate product trial.
Help to smoothseasonaldemand patterns.
- Act asa two-way communicationchannel,to help with taskssuchasgathering
marketing information and developingcustomerdatabases.
- Link up with above-the-lineadvertising campaignsto reinforceadvertising
themesor be used as a basis for advertising.
- Be used to reinforcepoint-of-sale(POS)communicationsefforts.
- Provide useful public relations (PR)opportunities.
- Be used as a tacticalweapon to try and negateor reducethe effectivenessof
rivals' promotional efforts.
To study the use of promotional competitionsin practice,we decidedto survey
marketersresponsiblefor managing promotional competitions.To do this, the
survey was restrictedto FMCG brands only. This was partly becauseit was clear
from the earlier sample
of competitionsthemselves,that there were considerable
differencesin the way that competitionswereusedin different typesof market.For
examplemore than half of aUcompetitionsrun in connectionwith servicesrequired
no Purchasecomparedwith an averageof lessthan 25%acrossall other markets.By
concentratingon FMCG brands the researchis focused on the area th3t still
representsthe heartland of promotional competitions, and on an area whem
candidatesto study were most readily available.However,It should be noted that
the findings may vary in terms of their applicability to the promotion of services,
consumerdurablesor other non-FMCGbrands.
Over a3 month period, marketingmediaweremonitoredto try and locateFMCG
brands(or families of brands)
running nationalconsumer-orientitedcompetitions.
An initial list of just over 100brandswas developedin this way.The nujority of the
brands involved were in food, drink or personal carieproducts. The manager
responsiblefor eachbrand wasthen contacted6 monthslater and permissionsought
to send them a postal questionnairerelating to the competition.Somecompanies
declinedto take part at this stageso that some90 questionnaireswere eventually
sentout to explorethe managers'perceptionsof their promotionalcompetitionsand
 Promotional Competitions as a StrategicMarketing Mapon 781

their results. Of these, 48 usable responses were returned, and although fl-dsis a
Small sample in itself, it represents a considerable proportion of the FMCG
competitions being run during the survey period.
The 6 month time lag to the the to have
was adopted allow successof competition
been (at least to This time interval
some extent) evaluated. was a rather arbitrary
based on practical FMCG There is the
experience of promotional competitions.
Potential problem that the time lag between the completion of the questionnaire and
the Planning of the competition may allow some distortion to creep in, and some
"*$I -h0Cjustification of decisions that were made, but it brought the benefit of
allowing a more longitudinal picture of the life and role of a promotional
competition to be appreciated. The initial worry that the manager responsible for
Organising the competition might have moved on by the time the questionnaire was
received did not prove to be an issue with any of the responses,although It might
have explained
some of the non-responses.
The questionnaire based around Likert scales to
contained a n-dxtureof questions
measure managers'perceptions of the role of the promotional competitions, and also
both closed designed build factual picture of the
and open questions to up a clearer
14"aY in which promotional competitions are planned and managed.

Results and Discussion

The resultsfrom the headingsfor
questionnairescanbe grouped under six general
discussionas follows.

Contribution
to SalesObjectives
Respondentswere a1 to 5 scale according to the
asked to rank their competitions on
degree to which the intended to contribute to a variety of
competition was explicitly
Possible objectives. Conventional wisdom tends to Hn-dtsales promotions such as
competitions to, very literally, a tactical promotion of short-term sales. This can
either be in terms of a temporary increase in sales volume, or in terms of the
Stimulation of product trial. Certainly the importance of sales Stimulation as an
Objectivewas confirmed, since 50% of the sample described increased sales during
OWcompetition as being further 4S% saw it as being
of "'critical importance" and a
Of "major" or "moderate" importance. A further 59% saw stimulating product trial
as an objective of moderate or greater importance. Another possible tactical sales
Objectivefor a competition, that of smootl-dngseasonaldemand fluctuations, was of
at least moderate importance to 22% although it was of low importance to 38% and
no importance to 40%. This is not surprising since seasonality will only strongly
-affectsome FMCG goods such as ice cream, sun tan lotions or soup.
Competitions, like
most forms of salespromotion, are vjýj valuable as a potential
response to a competitor's initiatives. While a new advertising campaign will
t)'PicaUy take many months to develop, a promotion such as a competition can often
be Picked from "off the response (CumnAins,
shelf" and reformulated as a very rapid
1989).The sample confirmation of d-ds, since over 40% of
results provided some
782 Ken Peattie et al.

respondentsfelt that "reducing the impact of rivals'salespromotion activity' was of

at least moderateimportanceto their competition.

Odier Key Objectives

Conventional marketing wisdom tends to

suggest that salespromotions cannot offer
the long-term "brand building" opportunities presented by advertisin& and indeed
the survey results showed that short-term sales uplifts during the competition's
lifespan was the
most important objective. However, for over 60%of the companies,
achieving lasting market share growth was seen as an objective of at least moderate
importance. Less important
as an objective was contributing to the repositioning of
a brand, which is perhaps a task much better suited to more long-term above-the-
line advertising. Repositioning being of little or no importance as an
was viewed as
Objective by 80% of respondents. Given that many of the companies in the survey
were market leaders, for whom repositioning would be potentially risky and
tuu,ewarding, the fact that as many as 20% of the companies were using a
competition to assist the process of brand repositioning could be interpreted as a
relatively high number, and one which suggeststhat competitions can play a role in
Positioning when needed.
Another area where competitions can make a more long-term contribution is
through raising consumers' brand awareness.In these days of an ever-expanding
range of available brands, and ever larger retail outlets, It becomes increasingly
difficult for products to the the consumer. Some of the solutions
attract attention of
to this might appear obvious. Advertising campaigns can inform consumers about
new Products, and in-store displays can guide them to the location of the featured
Products. Unfortunately the reality is not always that simple. Increasingly the use of
remote controls and videos are allowing TV advertisements to be "zapped" and
avoided by consumers, and general advertising clutter and consumer hostility to
advertising is eroding advertisers' ability to get a memorable mewgc across.
Similarly with in-store frequently overwhelmed In terms of
promotions, retailers are
requests for in-store features. Quelch (1983)found that the average grocery retailer
was offered around 20 times more in-store displays from manufacturers than they
could accommodate.Competitions help a product to stand out on the supermarket
shelf and to attract the consumer's attention. On-pack competitions allow well-
known and distinctive to be in a way that attracts attention without
packages varied
endangering brand recognition, and many consumers seem to be very attracted to
the word "win" in big letters on a package. With over 60% of respondents stating
th3t "increasing consumer awareness" was of at least moderate importance as an
Objective for their competition, the potential of competitions to boost consumer
awareness is confirmed. Other comments about the objectives of the competitions
included "to create "to increase awareness of the
an impact at the point of sale",
range of varieties" and "to heighten in-store interest and increasedistinctiveness in
the marketplace," which all strongly support the role 61 competitions in attracting
consumer attention.
Another potential strategic benefit of competitions is to realign customer loyalty
by encouraging to to the promoted brand. Although this
customers switch over
Might be assumed to create only temporary tactical benefits, there is evidence to
 Promotional Competitions as a StrategicMarketing 104pon 783

suggestthat although there are habitual "switchers" who follow offers around
within a group of brands,otherswill follow up promotionalpurchaseswith repeat
Purchases(Cottonand Babb 1978;Rothschildand Gaidis 1981).Again, the sample
confirmedthat promotional competitionsaim to encouragesuch switcheswith 85%
Wing it as of at least moderateimportant as an objective.
Respondents were alsoaskedto list any other specificobjectivesthat were set for
their competition,and the variety of responsesprovided demonstratedvery dearly
thesortof versatility that promotionalcompetitionsprovide.Answerstouchedupon
Weral themesincluding the following.

Infonn4tion. "Communication information' and "to help establish a

of product
dAtabaseof current consumers" demonstrated the ability of a competition to act as
a two-way communication channel between companies and their market.

Distributionrelationships.A number of companiessaw competitionsas important

for building or for example "to protect the
protecting retailer relationships,
COmPanYs listing within the storeby gaining the store'scommitmentto the brand"
2nd'"tc)supporta major retailerwith a tailoredactivity," "to ensureretentionof shelf
SP3cingsand depth of distribution" and "to improve trade relations by a
demonstrationof support for the brand."

71emebuilding.Severalresponsesindicatedthat a competitionwaspart of a series,

'Orpart of a long-termpromotionaltheme;for example-to build on previousyears'
Competitions, thus continuing the promotionalthemeof the company' and 'to fit in
%ith the companys promotional theme".

Stocklevels.The "'push" element of some campaignswas indicated by some

cOmmcntssuchas 'for specificincreasesin in-storestocks."

BrJndbuilding.7be brand building role of competitionswas underlined by the

COrnments of severalrespondentswith commentssuch as "for strengtheningof the
brando,,,
"to underline the premium brand positioning of the product,' 'to lend
for
"dditiOnalauthority to the brand name" and "to establisha unique property the
brand that canbe developedin future
years."

AfOnilorin and Eval=ing COMPetitiOnS

,g
Perhapsnot surprisingly, the for assessingthe effectiveness of
most popular method did.
Promotional competitions 'was to monitor sales figures, which all respondents
The timescalesover was as follows:
wWch the evaluation of sales was underthkcn

2 months or less : 19%

- 3-4 months: 46%
- 5-6 months : 25%
- 9-12 months: 10%
 '784 Ken Peattic et al.

Although these timescales

show that the measurementof sales promotion
effectivenessis closelytied to relativelyshort-termsalesresults,this wasnot the only
method of evaluationused. One method of analysingthe successof a competition,
which can be appropriate where salesuplifts are not the primary objective,is to
count thenumberof returnedentries.Only 12%of companiesin the surveyusedthis
-8Pproach,and it hasbecomelesspopular in recentyearsdue to the problemsposed
by multiple entries by individual One in America
consumers. marketing agency
examiningpostcardentries to a promotional competitionfound over 1,000entries
had been Submitted by individual. For high
a single competitions with a
informationalcontent(for
examplewhere consumersmust rank product attributes)
another approach is to judge a competition in terms of the usefulnessof the
information it provides.Almost
a quarter of the companiesin the surveyemployed
this approach. Such information can provide valuable insights into consumer
Perceptionsrelating to the features,quality or positioningof a brand. However,the
results must always be treated with a degreeof caution since the responsesmay
reflect the entrants, perception of the "'right" answersrather than their actual
opinions.
Other means that
companies employed to judge the effectivenessof their
competitionsincluded both trade-basedand customer-based researchand involved
both qualitative
approaches(suchasjudging "on shelf impact of promotion pack")
and quantitative approaches (such as cost-benefit analysis). Customer-based
approachesincluded measurementof factors such as "brand share changesf
WretentionOfcustomers " "a sophisticatedevaluation technique
post-promotion, and
Whichlooksat the real movementsin salesremovingotherinfluences,this technique
can also detectwho respondedaccordingto age,classetc."
Evaluationapproaches to trade issues included: "general feedback
from the tradef "measuring relating more
shelf space before and after promotion;" and
achievingproduct stock allocationto retailer."

CompetitionPlanning
and Management
Salespromotion is therehas been that thegrowth in use
an areawhere someconcern
and in expenditurehas not beenreflectedin the developmentof the sort of careful
Promotional planning associatedwith advertising campaigns(see for example
Roger Strang's (1976) "Sales Promotion: Fast Grow" Faulty Ddanagement").
Respondentswere asked questions about the planning and
a series of closed
managementof their competitions(seeTable1).
Theseresults also demonstratethe flexibility of competitionsto combinewith
Other elements of the marketing mIx to create more integrated marketing
communicationscampaigns.The fact that nearly half the competitionswere linked
in to above-the-line of further growth in
advertisingcampaignsprovidesevidence
%lh,3t is sometimescalled"Spadspend"(linked salespromotionand advertising)and
alsodemonstratesthe degreeto which the mythical "Hri? is becomingincreasingly
vagueand permeable.Similarly the numberof companiescombininga competition
with POint-of-saledisplays,or treatinga competitionasan opportunity to generate
some beneficial public relations coverage, demonstratesthe communications
Versatil-ityof competitions.The opportunitiesthat competitionspresentto engagein
I
 Promotional Competitions as a StrategicMarketing Mapon 785

two-waycommunicationwith customersis alsodemonstratedby the fact that more

tl= a tl-drd of respondentswere gathering useful customer information from
competitionreturns.

the Effectiveness
of Competitions

Kespondentswere askedto assessthe effectivenessof the in

competition terms of
achievingits objectives;gaining support for the brand from intermediariesand the
Salesforce and in terms of reinforcing brand irnageand values (seeTable 2).
Theseresultssuggesta relatively high level of satisfactionwith competitionsas a
communicationstechniqueamong those who sponsor them and also a general
belief in the ability of competitions to reinforce and build a brand as well as
contributing to sales.Sincemost respondentswere being askedto comment,albeit
in
anonymouslyand confidentially,on somethingthat most cases they had been
for is
responsible planning and implementing, there clearly a need to be a little
Cautiousabout overstatingthe meaningfulnessof this level of enthusiasm. When
"ked whether or not the companywas likely to use competitionsto promote the
brand in future, one company the of future competitions, five
rejected possibility
wereuncertainbut saw it asa possibility,and a clearMjority intendedto makeuse
Ofcompetitionsagain.

MaRe1. Closedquestionsrelating to competition$

&Yes' *NOW
71eComMition... (%) (%)
10 90
...*As pretested
--was exPlicitlYchecked againsttheinstituteof Ues promotions'
codeof practice
during development 95 5

--was linked to a broadermarketing cornmunicationscampaignincluding

6OVe-the-line 49 51
advertising
59 41
--*As supportedby in-storedisplay
37 63
--Providedusefulinformationaboutconsumers
wasbacked by salespromotioninsurance 12 88
...
24 76
-Trovided usefulPRopportunities
was in 17 83
... run conjunctionwith a partnerwho donatedtheprize

Toile 2. Effectivenessof the competition in achlevinf its ObJecti'll

Effectir"as
ptrceiped
in... 2 J 45
r, ý 764 33% 48% 1Cr/O
-4d1i*ý-g its objectives? 39% 9%
no 45%
-gain, i-ngsupport from intermediariesand the salesforce? MO
43% 1no
JrWorcing the brand's imageand values? 2% 5% 33%
3,indfective,sucompletelyeffective
766 Ken Peattie et al.

'r"'
anc Roleof Competitions
Within MarketingCommunications
The final questions on the to explore the importance of
questionnaire sought
competitionswithin the promotional mix. In termsof frequency,asFigure1 shows,
when askedhow often competitions were used for their brand, the majority of
respondentsused competitionsonce or twice a year. The most frequent user of
competitionsran them monthly,while for anotherbrand the competitionwhich led
to their inclusion in the samplewas the first they had run in 4 years.
Therewere somesurprising answersin responseto the question"Approximately
wh3t proportion of the brand's marketing communicationsbudget do competitions
consume? ". The samplewassplit almostevenlybetweencompaniesusing5%or less
of their communicationsbudgeton competitions,and thosespendingmorethart5%.
Among thosespendingmore than 5% therewere nine companiesspending20%of
the budget or more, and two who were pumping 50 and 60%of their marketing
communicationsbudget into competitions.Given that the survey consistedmostly
Ofleadingbrands,the sumsof moneyinvolved would be very considerable, and this
kvel Of investment demonstratesthat for many companiesthe expenditureon
competitionsputs them far beyond,a merely tacticalweapon.

Conclusions

7he resultsof this survey definitely support the contentionthat promotional

very
competitionsrepresenta flexible marketing communicationstool that is used by
marketing managersto help them to pursue a variety of strategicand tactical
Objectives. Somecautionshould be exercisedwhen interpretingthe findingssinceit
is a relativelysmaU The of the responses however,provided support
sample. quality
for our belief that component of the marketing
competitionsrepresenta valuable
communicationseffortsof many companies.Almost all of the closedquestionswere
AMweredby all, or virtuaUy aU,of the respondents.Only two questionsproduced
threeor morenon-responses, sincesix managers did not comment on whetheror not

35

30

25
,tR
20

15

10

ol 11111211131114.6...
12 is 48
Filure I. Frequency in 6etuvtfl
of competition ujeo expressed arcrase number of nlonth$
competitions
 Promotional Competitions as a StrategicMarketing Mapon 787

11'eircompetition had been subject to pretesting or promotional insurance.More

significantly the commentsprovided in responseto the open questionsregularly
demonstratedrespondents'interest in belief in For
and promotional competitions.
examplein responseto a question about why the company had chosento run a
competition,one marketercommentedthat:
"it was an important objective of the company to
highlight the quality imageof the product, this objective
runs contrary to a certain school of thought on sales
promotion competitionsasreducingthe quality imageof
the product."
This wasperhapsthe bestdemonstration the view of competitions as
a
having a potential of emerging
role as a strategicweaponrather than just as a tacticaltool.
Discussionabout the has often come in the form of a
merits of salespromotion
Polariseddebateaboutwhich side of the "'line" marketingcommunicationsbudgets
should be spent (for exampleShultz 1987;Jones1990).This debatehas perhaps
tended to obscure,as often as Wun-dnate,the contribution that salespromotion
tecluilquescan maketo effective communications for three key reasons.
Firstmany of the marketing
mostprominent voiceswithin the debate belong to peoplewho are
currently or formerly key figureswithin the advertisingindustry,who perhaps,like
the Ugly Sisters,are unwilling to
give this "Cinderella" element of marketing
suffIdent recognitionor opportunity.Secondly,sincediscountingand couponshave
bem treatedas
representativeof all forms of salespromotion,negativeperceptions
aboutthe useof indiscriminateprice-cuttinghavetendedto spreadacrossthe entire
field of sales Although indiscriminate is clearly a
promotion. price-cutting
dangerousand often it be no less damaging than
counter-productivestrategy, may
Poorly conceivedor executedadvertisingcampaigns.All forms of salespromotion
representinstrumentsthat canbe blunted from over use,or if usedclumsily canlead
to Self-inflictedwounds,but if they have the potential to carve
used appropriately
out a significantcontributionto the achievementof marketingobjectives.Finally the
POlarisationof the debateabout whether marketingresourcesshouldbe channelled
above or below the line has tended to obscure the benefits of an integrated
"'If keting communicationsstrategy.Bernmaorand Mouchoux(1991),for example,
found Promotionsto be backed by advertisements,and
most effective when up
Promotions such as competitions can make an effective centrepiecefor an
Advertisement.In 1985researchby advertising agency Frankel & Co found that
customers'opinion of a brand (on issuessuchasquality, value and caringabout the
customer)were eight percentagepoints better in responseto adverts featuring
Promotionsthan for more conventional"brand sell" adverts.
The results of this
survey raises some questions about the managementof
Promotionalcompetitions,echoingsomeof the concernsof Strang(1976).Despite
beinga major investment for FNICG companies,a
marketingcommunications many
LackOf competition
pretesting,and a reluctanceto makq use of Salespromotion
insuranceis still the The very large and sophisticated
norm. experienceof some
fums (including Esso,Coca-Cola Pepsi) that competitions can go badly
and shows
Wrong.In the aftermath of the Hoover "Free Flights" fiasco,greaterattention to
Planning, testing and insurance for all forms of sales promotion (including
competitions)might have beenexpected.
 798 Ken Peatfic et al.

Similarly when it cameto

measuring the effectivenessof competitions,the vast
majority of companiesrelied almost entirely on monitoring short-termsalesdata to
assessthe effectivenessof the competitions.This could be interpretedas proof that
theclaimsabout the strategicuseof promotional competitionsarewishful thinking,
and that in continuing to measureshort-term salesperformance,companiesare
simply underlining their real role asa tacticalweapon.However,we believethat this
reflectsa tendencyamongmany practitionersto useeasily availablesalesdata for
measurement, rather than to put the time and effort into organisingspecificresearch
into any longer-term competition impacts in terms of consumerawarenessand
attitudes. However, in cases where companies have gone to the trouble of
researchingthe broader communicationimpact of competitions,the results have
shownthat suchpromotionscan haveeffectsthat go well beyondsales.In the USA,
sportswearbrand Le Tigre ran a "Rock and Roar Fantasy" competition, which
produced no increasein sales, but researchshowed that it had significantly
improved the image the brand its target segment of 18-24 year old
of among
men.
Thereis still a greatdealof
work neededbeforeour understandingof the potential
of the various tools within the sales promotions toolkit approachesour under-
standingof advertising.The continued popularity of salespromotionsin practice
Suggeststhat there must be more to them, than simply a failure of practising
managersto understandtheir weaknesses and the superior benefitsof advertising.
The results of this survey
showed that promotional competitionsrepresentone
Promotionaltool that is used for purposesthat go far beyond simplistic notions of
W renting" short-termsales.Hopefully the future will bring further studiesthat focus
on other specific sales promotion tools in a way that will allow generalised
Prejudicesagainstsalespromotion to be replacedby a clearerunderstandingof each
technique'scapabilitiesand limitations.

References
BAkcr,M. J. (1993),"Editorial", Journal MarketingManageme7it,9, No. 3.
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B3wa, Y, and Shoemaker, R.W. (1987), "Ibe Effects of a Direct Mail Coupon on
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and Mouchoux, D. (1991), "Measuring the Short-Term Effect of
In-Store Promotion Retail Advertising on Brand Sales: A Factorial Experi-
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Cotton, B.C. and Babb, E.M. (1978), "Consumer Response to Promotional D,., -als'*,
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pp. 109-113.
CununiRs, J. (1989),SalesPromotion,London: Kogan Page.
D-1vies,M. and Saunders, J. (1992), "rhe Double Deli& of Sales Promotion". In
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Davis, s., Inman, J.J. McAlister, L. (1992),"Promotion Has Neg3tive Effect on
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Brand Evaluation Or Does It? Additional Disconfirn-ting Evidence"* Journal of
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Marketing Research,29, No. 1, pp. 143-148.
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Dodson, J-A., Tybout, A. M. and Sterrithal, B. (1978), "Impact of Deals and Deal
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Doob, AX, Carlsmith, J.M., Freedman, J.L., Landauer, T.K. and Solong, T. (1969),
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Doyle, P, and Saunders,J. (1985),"The Lead Effect of Marketing Decislons"01 Journal
OfMarketing Research,22, No. 1, pp-54-65.
Frank, PLE.and Massey, W.F. (1971),An EconometricApproachtoMarketing Decision
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Jones, J.P. (1990), "The Double Jeopardy of Sales Promotion", Harvard Business
Review,68, No. 5, pp. 145-152.
K-31wani,M.U., Yim, C.K., Rinne, H. K. and Sugita, Y. (1990),"A Price Expectations
Model of Customer Brand Choice", Journal of Marketing &search, 27, August,
pp-251-262.
Wtin, J.M. and Bucklin, R.E. (1989),"Reference Effects of Price and Promotion on
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Monroe, K.B. (1973), "Buyers' Subjective Perceptions of Price", Journal of Marketing
Research,8, No. 1, pp. 70-80.
Ogilvy, D. (1983),Ogilvy Advertising, London: Pan.
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Peattie, K.J. and Peattie, S. (1993a),"Sales Promotions: Playing to Win?, Journalof
Marketing Management,9, No. 3, pp.255-270.
Pe3ttie, S. and Peattie, K.J. (1993b), "Sales Promotions Competitions: A Survey',
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Pc3ttic, S. and Peattie, K. (1995),"SalesPromotion"I In VwMarketing Book(3rd Edn.),
(Ed) Baker,M-J., London: Butterworth Heinemann, pp.534-554.
QuClch,J.A. (1983),"It's Tune to Make Trade Promotions More PrcAuctive", Harvard
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Rothschild, M. L. and Gaidis, W.C. (1981), "Behavioural Leaming Theory.- Its
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Shultz, D.E. (1987), "Above Below the Line? Growth of Sales Promotion in the
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Strang, R.A. (1976), "Sales Promotion: Fast Growth, Faulty Management", Harvard
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 Publication
010

'The Use of Sales Promotion ConlPetitiolls ill SOCial

Marketing'

Social-Marketing Quartea

Vol. Vj, March 1999, pp. 22-33.

 THE USEOF SALESPROMOTION
_.
COMP ONSIN SOCIALMARK NG
RElfIE[R
ý0 JBy Sue Peattic
w

ABSTRAC7
It hasbeensuggested that manysocialmarket-
,
ing campaigns fait because theyassignadvertising
the primaryroleandfail to developanduseall of the
availablemarketingmixtoots.
In addition,socialadvertisinghasto compete
Ior the,public'sattentionwith increasingly costlyand
sophisticatedcommercial marketingcampaigns.
Thishasled to a growinginterestin satespromotion
lechniquesfor socialmarketing.
Despitethe increasinguseof satespromotion
techniquesin the commercial sector,theyhavenever
receivedthe academic scrutinygivento advertising.
Thesetechniqueshavetraditionallybeen*bundlecr
together,with the research conducted being domi-
natedby vatue-increasing promotions (thosewhich
alter the product/price'dear) involvingmoney-off,
couponsor, *x % extrafor free.' Thesepromotional
techniquesarethe leastappropriate for social ,
marketingcampaigns, which rarelyinvolve eithera
tangibleproductor an economic price. Valueadding
campaigns (those which introduce benefits not
directlyconnectedto the coreproductor Its price)
suchaspromotional competitions (also known as
contestsandsweepstakes) or give-aways, arethe
for
mostsuitable social campaigns but the leastwell
understood 1.
n termsof research.
Thispaperdiscusses alternativeobetow-the-line
promotionaltoo[sanddemonstrates howpromotional
competitions- in particular- canhelpwith the
distinctivecommunication challenges facing
socialmarketers.Experience andresearch fromthe
commercial sectoris usedto suggestguidelinesfor
planningcompetitions.
 SOCIAL MARKETINGQUA
LY23
APPLICATIONS

INTRODUCION for free" (Peattie & Peattie,2994). These

Theterm"socialmarketing"was promotional techrriques are the least
inaUycoinedby Kotler
1)15; and Zattmanin appropriatefor social marketingprograms
1971to define a processin which that often do not involve either a tangible
marketing
:tchniquesand conceptsare appliedto productor a monetarycost. Valueadding
socialIssuesand causes,such as health promotions (those which introduce benefits
Pmmotionand family planning,insteadof not directly connectedto the coreproduct
commercialproductsand services. Thelast or its price) such as promotionalcompeti.
20yearshavewitnessed increasein the tions or give-awaysare often the most
an
Interestin and use for but
of social marketingin suitable social programs, are the
Awidevariety of social programs. Leastwelt understoodin termsof research.
However,one of the criticisms Thispaperfocuseson one increasingly
of social
Marketingto date hasbeenan over- popularpromotionaltoot, the promotional
emphasison advertising. competition,and evaluatesthe opportuni-
In the book Marketing Introduc- ties that exist to transferits usefrom the
- an
60n, Kotler & Armstrong(1990) sector into socialmarketing
suggest commercial
Vhat'... manypublic marketing applications. The paper aims to demon-
fa%becausethey campaigns
assignadvertisingthe strate the synergy that exists between the
; dm,ary rote and fail to developand useall characteristicsof competitionsas a sates
the availablemarketingmix tools." Other promotiontool, and the particularcommu-
Authorsalso haveemphasizedthe needto nication challenges that confrontsocial
hve a full complement It explores how experience
of marketingmix marketers. also
Cementsand not
assumethat social and researchrelating to commercial
marketingis merelysocialadvertising promotional competitions can be used to
(Andreasen,1994, Rothschild, help maximizetheir effectivenessin social
1979, Kotler
Z Zattman,1971). There
are several marketingprograms.
Problems associatedwith the useof social
Advertising(Bloom& NovelLi,1981), not
leastthat it hasto
competefor the public's USEOF PROMOTIONAL
attentionwith Increasinglycostly and IN SOCIAL
COMPETITIONS
sophisticatedcommercialmarketing
MARKETINGTO DATE
c4mPaigns.Thishas led to a growing Thereareseveralexamples of how
interestIn
salespromotiontechniquesfor competitions have been used In social
Will marketing. A 'Food for Thoughr
However,two majordifficulties stand in marketingprograms.
gamewas used by the National Heart, Lung
the wayof the effective different
applicationof sales and Bloodinstitute to encourage
promotiontechniquesto social programs. habits in National Institute of
Thefirst is the Lack eating a
of a strong and appro- Healthemployee cafeteria. Food informa-
Pfiate,research-based academicliterature tion waspresented type
telling with on pLaying-card
satespromotion. Sates cardswhichweregivento employees each
Mmotion techniqueshaveneverreceived time theymadea7purchase. Smallprizes
the academicscrutiny
givento advertising, wereawarded to thosewhoacquiredsetsof
Andthey havetraditionally been'bundled" The in an
toSether,with the cards. competition resulted
research being dominated increaseIn the purchase of skimmed milk
bYvalue-increasing bread
promotions(those anda decrease in the purchase of
*h1chatter the product/price"deal") desserts In the total numberof
Involving and and
money-off,couponsor "x % extra caloriesconsumed (Zibberflattet al. 2980).

1999
SMO/VOLV/ NO.I/ MARCH
 24SOCIAL
MARKETINGQUARTMLY
APPLIUATIONS

Health PromotionWales(Robertset aL An exampleof a morenoveltype of

1993) is just one organizationthat has run a competition was that organized by the Commu-
competition basedon the original "Quit and nity Based Family Planning Services in Thai-
Win Contesf developedby the MinnesotaHeart Land. In order to promotebirth control, the
Health Program(Blackburnet al. 1994). ALL agency stages contests with prizes to the
the programs(Landoet. aL 1990 & 1991, personwho inflates the biggest "balloon' from
a condom. The aim of the competition is to
breakdown taboosabout contraceptionand is
Experienceof their wide- just one of the marketingmix tools usedto
encourage birth control in Thailand.
spreadusein the commercial Theuse of salespromotiontechniques,and
sectorcanprovide useful competitions in particular, in socialmarketing
lessonsand guidelines are still in the embryonic stage. However,
their use in the
for planning and experience of widespread
can provide useful lessons
commercialsector
implementationin social and guidelines for planning and implementation
in socialmarketingprograms.
marketingprograms.
0
Glasgow et. at. 1985,Lefebvre et at. 1090, WHATIS "SALESPROMOTION"
Elderetal. 1987,HealthEducation Salespromotionis frequentlydefined as
Authority, is
2991)weresimilarin first usingcommunity- marketingcommunications which not
basedmassmediato attractasmany advertising,selling or public relations;or even
moresimply as 'special offers." Such defini.
participantsaspossible.A secondkeyelement do Little
tions are very simplistic and to
wasthe incentiveofferedin the formof a prize
drawinginto whichsuccessful communicatethe versatility, variety and
participantswere of salespromotion In practice. A
entered.Thirdly,participantswereusually complexity
wider definition describes salespromotionas
askedto giveuptobaccoby a specificdateand
remainabstinentfor a periodof about30 days, umarketingactivities usuallyspecificto a time
the competitionthuscoveringthe periodwhen period, placeor customergroup, which encour-
agea direct response from consumers through
mostLapses arethoughtto occur.
Theresultsof the HealthPromotion Wales the offer of additional benefits' (Peattle &
competitionshowed Peattie,2994).
that the mostcommon
reasonfor enteringthe competitionwasto Stop Thethree key elementsto this definition
smoking,followedby the chanceto win oneof are that satespromotionsare:
the prizesoffered.Overall,the authors Non-standard- promotionsare usually
concluded that the QuitandWincompetitions temporaryand maybe limited to
appeared to bea cost-effective approach to certain groupsor specificto a certain
smokingcessation initiativesin Wales, distribution channel.
althoughtheyneededto besupported by more
Intensivemethods Responseoriented - promotionsseeka
to helpthe mostresistant direct responsefrom customers.Thedirect
groupof smokers whowouldbeLikelyto Is
responsesought not necessarilya sate.
giveup.
In Finland,competitions Promotionsmay encourageconsumersto
havealsobeen for brochure, dealeror
send a visit a
usedsuccessfully with teenageschoolchildren
to delaythe onsetof smoking(Vartiainenet consumea sample.
al. 1996). Eachyear20,000- 30,000children Benefit oriented - promotionsoffer their
haveparticipated in the "NoSmoking Class" targets additional benefits, beyondthe
competition,for the chanceto win fourmain "standard*marketingmix. Theenhancedmix
prizesof 10,000Finnishmarks(U.S.$2,000) could Include extra product.a reducedprice
andten secondprizesof 1000Finnishmarks or an addedItem, serviceor opportunity.
(U.S. S200).
 SOCIAL MARKETINOQUARTERLY25,
APPLICATIONS

Theadventof videosand
remotecontrolsthat allow
advertsto be "zapped"haserodedtelevisionadvertisers'
confidence in their ability to reachtargetaudiences.
ADVERTISING to the
cards analyze effects of behavior and
VERSUS
SALES
PROMOTION buying patternsamongparticipants. With
In somesituations,salespromotioncan 60%of 30,000 surveyedparticipants threeIn
D'Irtiadvantages competitionsretuming cards, Heinz has built
over advertising. The 1980's
wiViessed a majorshift of expenditureinto up an accurate picture of the effect such
=motions. Figuresproducedby WWPGroup promotions can have, and their effectiveness
1;7 2989)suggestthat by 1988, when used through different grocery chains
global sates
r-omotionshadequalledadvertisingwith each (Gerrie,1986). However,one drawbackof
Amountingfor S219billion, or 39%of non the measurabilitythat direct responsesallow
ZlItSforcecommunicationcosts. Thisshift of is that the tessmeasurableindirect responses
tin; hasfsreflectsgrowingdoubtsabout the relating to brand awareness or image tend to
Z.q' effectiveness of advertisingin the face of be overlooked.
lielnj pricesand advertising"clutter". Advertisingis often cited as a one-way
Salespromotiontechniques form of communication. The message is seen
can often
P'Pyidemoretailored and targeted as a "magic bullet" transferringencoded
communi-
Wtionsthan massmedia,which informationfrom a sender(the advertiser)to
essentially decoded by a
Plr-entsonemessageat a time to be passivelyabsorbedand
an entire
84-itrice(a "shotgun"approach). Promotions receiver (the target audience).
Q'3communicate different messages to
giffetentcustomer
groups. Forexample,
14y productswerehaving
in; their target problems reach- Advertisingis oftencited asa
65andolder,'
market,"womenaged18 to
one-way form of communica-
with a universaladvertising
`ýeme.Thispromptedtheir "Woman the
of tion. The message is seenas a
1-wid"competition,
offering variousholiday d(magic bullet" transferring
Vites designedto appealto all
41; inq froman art tour of Londonto
agegroups,
encoded information from a
Udrigfn the FarEast. sender to be passively absorbed
Anothercriticism of advertisingis that
and decoded by a receiver..
Is often hardto
measureits effectiveness.
-Ifit adventof videosand remotecontrolsthat Onthe other hand, satespromotions
SUDw advertsto be "zapped"haseroded communicatewith the aim of encouraging
ttlevisionadvertisers'
confidencein their interactionbetweenthe producerand the
U4!D:y to reachtarget through a test drive, the clipping
audiences.In termsof consumer,
ItIctsurability,the direct through a sale. Because
natureof consumer of a coupon,or
%'-POnse beyond the 'magic bullet*
to satespromotionmakestheir short- promotionsgo
t ", effects approach to communication, they create
easierthan advertisingto measure
kcutatelY,Particularly opportunities to build relationships not only
110nnationfrom with the advent of
ElectronicPoint of Sales with the consumer, but also with other
00S) systems. important parties. In the commercialsector,
building Is
In recentyears,Heinzhas
run competi- three areasin which relationship
offering prizesworth millions of pounds. central are in trade promotions aimed at
14--t werebackedby a sophisticatedmonitor- retailers and distributors; in supporting and
"'; system, In developing
usingeasy-to-complete feedback encouragingsatesactivity; and
marketingpartnershipswith other companies.

/MARCH1999
26SOCIAL
MARKETINGQUARTERLY
APPLICATIONS
Advertisingand salespromotionare both quality/price relationship) to increase the
offering. Value
effective techniquesthat work best as compte- perceivedvalue of a product
mentarycomponentsof a plannedand inte- increasingpromotions,particularlycoupons
grated communicationscampaign. The commer- and price cutting, are the dominant form
ciaLsector haswitnessedan increasedmove and the type on which the majority of
toward suchintegration with the development into promotions has been
academicresearch
of 'Integrated Communications" agenciesand based. TableI (column1) Liststhe major
an increasein "Spadspend"(advertising typesof valueincreasingpromotionsused
expendituresusedto reinforcepromotions.) in the commercialsector.
For example,McDonald'sfrequentlyrunsTV Thesecondgroup of salespromotions
commercialsto advertisetheir "HappyMeal" which are often overlooked, are the value
Promotions. In general,Davidson(1975) adding (sometimes referred to as *packaged
suggeststhat advertisingimprovesattitudes up") promotions. These leave the price and
and salespromotiontranslatesthesefavorable core product untouched, and offer the
attitudes into a "purchase.
" customer 'something extra" in the form of a
free gift, a 'piggy-back"complementary
Table I also Lists
SALESPROMOTION:
VALUE- productor a competition.
INCREASING the major types of value adding promotions
ORVALUE-ADDING The benefits
Salespromotionsfall into one of two usedin the commercialsector.
types, value increasingand valueadding. can be instant (scratch and win competi-
Valueincreasingpromotionsmanipulatethe tions), delayed(suchas postal premiums)
or cumulative (loyalty programs).
quantity/ price equation (and sometimesthe

4pplication of SalesPromotions Techniques for Social Marketing Programs

ALESPROMOTI I INTANGI8 LEPRODUCT NONMONETARY COST-

ONJYPE'
(with'a'm'onetaiy'cost) (but'a tangible product),

VALUE1NCREASING
(alters price/quantityor price/quaLityequation)

Discountpricing X
Money-offcoupons X
Paymentterms X
(e.g. interest free credit) X
Refunds X
Guarantees X
Multipackor muitf-buys X
Quantity increases X
Buybacks X X

VALUEADDING
(Offers"somethingextra" while Leav
ing core productand priceunchanged)

Samples X
Specialfeatures(Limitededitions) X
Valuedpackaging X
Producttrial X
In-pack premiums X
In-mait premiums* 4
Pi ggy backpremiums* 4
Gi ft coupons- 4
Info (e.g. brochure,catalogue)* 4
Clubsor loyalty programs*
Competitions*
" Indicatesvatueaddingtechniques

1VOL, VI N
SMQ
 RLY27
SOCIAL MARKETING QuARTF.
APPLICATIONS

Typesof SocialMarketing Programs

CT,ýý
NGIBLE,PR0DU

MONETARY Pu'rch'ase'of'contr'ace'ptives Dentil treatment

COST P,urchaie of, cycling h.eLmet Eyetests,

NON Useof contraceptives RecycLing

MONETARY Useof cycLingheLmet Saferdriving
COST Immunization Exercise
OraLrehydration Heafthiereating
NeighborhoodWatch

APPLYING SALESPROMOTION non-monetary cost. In this case, all the value

tECHNIQUES TO DIFFERENT TYPES adding promotion
sates techniques are of
OFSoaAL MARKETING but the value increasing
PROGRAMS potentialuse mostof
Ubte2 illustrates that in general
terms, techniques arenot (third column of Table 2).
40clat
marketing programs can beputinto it is not possible,for example,to offer
burcategories discountpricingor money off coupons If
according to whetherthe
'4264Product is tangibleor intangible, is
there no monetary cost involved.
*th a monetary cost
or a non-monetaryCost Intangibleproductwith a non-monetary
UuCh astimeandsocial,psychological cost- Table2 indicates that the majority
or involve
11by-ricaL
fisk). of social marketing programs an
Encouraging the purchase of contracep- intangibleproductwith a non-monetary cost.
lifts or cyclinghelmets In this casethe only typesof satespromotion
areexamples of
;10;ramsthat wouldinvolve tangible be
that can appliedare premiums (in-pack,
a informa.
ftAUCtwith a monetarycost. In this case, in-maRor piggy back), gift coupons,
IV Cfthe salespromotiontechniques tion, loyaltyprograms or competitions.
tk'jiled in TableI ALthough severalof the valueadding
ADwever, areof potential use.
the objectivesof mostsocial techniques (marked with an * In Table 1) are
ft, VamsIs to change behavior (Andreasen, potentially suitable for all four types of social
-,444)In which programs, there are some particular
caseonlycertainof these marketing
4ts, Promotion toolsaresuitable. characteristics of competitions that make
Intangibleproductwithmonetary themespecially well suited.
- persuading people to gofor dental
t'41ninations or eyetestsmeans marketing HOW PROMOTIONAL
ft InUngibte product (i.e. a service)which COMPETITIONS CAN HELPTO
ý-I$a monetary The THE BARRIERSTO
cost.
'Wt I Illustrates second column of OVERCOME
thatonlycertaintypesof SOCIALMARKETINGPROGRAMS
'e-ýeincreasing andcertaintypesof value Several authors have commented on the
4dýlng salespromotion techniques problems that areencountered
10'-'Ibly can particular
beused.Forexample, a trial when tryingto apply commercial marketing
ý"Ut examination test be to socialmarketingprograms
or eye would techniques
ý`ffkultto offer. (Bloom & Novellf,1981, Kotler& Zattman,
Tangible product with a non monetary 1971,Lefebvre, 1992,Kotler& Andreasen,
"fe-l- convincing to usecontracep- 1991). In somesituations,promotional
people
t"Itsorcyclinghelmets
are examples of competitions offer the opportunityto
t'V4ting a tangible these hurdles.
productwitha overcome some of

SMOIVOL VI NO. I/ MARCH1999

Z?J SOCIAL MARKETINGQUARTERLY
APPLI-C-ATIONS

PRODUCT a means of attracting target adopters to

Often,the socialproductis either certain preferred distribution outlets. For
intangible (suchas human a family planningprogrammay
rights) or allows example,
Uttle flexibility in being adjustedto meet prefercontraceptives to be issued from health
the needsand wants of the target audience. clinics rather than retail outlets, so
By using attractive point of contact material, that medicalcheckups can be conducted,
competitionscan add a tangible dimension instructionsin their usecan be providedor
to an intangible product. Socialmarketers the quality of the productscan be assured.
often segmenton the basisof risk to the
consumer(Bloom& NoveLLi, 1981). For PROMOTION
example,they will target their efforts at that market-
Thereareseveralapproaches
heavysmokers,or those who are very ers can use to communicate with their target
overweightor obese. Theimplication of this market. These include advertising,public
segmentationapproachis that social relations,personalcontact and salespromo.
marketersare often faced with target tion. Bloom& Novetli(2981) identify a
marketswho havethe strongestnegative numberof problems associated with the use
dispositiontowardthe social product. This of social advertising. As well as the problem
Is the exact oppositeof the being able to communicate limited
situation faced of only
by most commercialmarketers. A competi- amountsof information, socialadvertising has
tion can add appealto a social productthat to competefor the public'sattention with
maynot be particularlydesiredby the target increasinglycostly and sophisticated
audience,suchas a smokingcessationcourse commercialmarketing campaigns. Even if
or a weight lossprogram. organizers can meet the advertising cost, they
mayfear the effects on other social marketing
PRICE programs if they also then are forced to pay
In manysituations,socialmarketing for advertisements.Charitableorganizations
Programsdo not involve a monetarycost to or governmentagenciesmay fear criticism
the target adopter,but rather other costs about funds being used to pay for this
suchas time, fear or inconvenience(e.g. expensive form of promotion. Particular care
immunization). In other cases,the benefits also needs to be taken when dealing with
of adopting a particular type of behaviormay sensitive issues such as AIDS or anti-smoking.
not accruedirectly to the individual. The Forexample,there waswidespread
aim of the socialmarketeris thereforeto condemnation that the "AIDS Iceberg
changethe perceivedcost/benefit ratio. In campaign" either confused the audienceor
somecircumstancesit may not be possibleto Increasedtheir fear of the issue.
reducethese costsbut competitionsand Usingcompetitionscan helpto achieve
give-awaysare both methodsof increasing a numberof strategicandtactical objectives
the personalbenefitsto the target adopter. suchas:
Competitionsoffer the additional advantage creatingawareness or interest in a program
of being morecost effective and offering themes
reinforcing advertising
9teatercost certainty than give-awayswhen
redemptionratesare unknown. providingan opportunity for
personalcontact
PLACE
Thisdescribes allowing moretargetedcommunication
the waythe product
ftachesthe target adopter. Fora tangible as a methodof countermarketing(Kotler &
Ptoduct,this refersto whereit is sold or Fox,1980). Forexample,Swedenhas put
givenout. Competitionscan be effective, as mucheffort Into the
countermarketing
promotionof alcoholconsumption.

VI NO.I /MARCH.1999
 0%r%
f2f
SOCIALMARKETINGQUARTERLY
APPLICATIONS

!'I many situations,social marketing programsdo not involve

r monetarycost to the target adopter, but rather other costs
1.1c as time, fear or inconvenience (e.g. immunizzation).
-h
1ARTNERSHIP three categories. There is also a prize for the
'When planningsocialmarketing restaurantwhich raises the most money for
um;aigns,*partnership" is regarded asan Savethe Children. ALLcompletedquestion-
i-Vortantadditional*P", from the public are automatically
alongwith "policy" naires
8rd*Politics. ' Giventhe complexityof most entered into a draw for three prizes of dinner
U:ial andhealthissues,the majorityof for two up to a value of UOO.
Um;aignsneedthe helpof otherorganiza-
liDn'. Partnerships canbeformedwith a MARKETING PLANNING
Onr-yof otherbodiesincludingthe media, AND EVALUATION
; 01,
Tmrnentandnongovernment agencies, In orderto determine themosteffective
Umminitygroupsaswellasbusinesses. marketing mix,anorganization needs to have
authorshavediscussed
**-&'-"Y the benefitsand information ontheneeds, wants,perception,
; i-'&Us of suchpartnerships (Andreasen, 1996, attitudesand habits of Its market. Social,
tD= et aL 1995,Arnott,1994 Barry, marketers typicallyfind that theyhave less
and
'3H) andcloseattention useful,secondary data avalUbte about their
needsto bepaidto
MI;te that the causeis not damaged by consumers. Competitions offeranopportunity
1140dation with otherorganizations. to gatherinformation aboutthetarget
Competitions audience or buildupa usefulmailing list.
offerthe opportunityto forms be
tgU Pifterships Similarly,competition entry could
with othergroupsaswell the the
4 Urgetadopters,eitherthroughjoint usedassome measure of reachof
'4ýtfons or by usingcompetitions social program in terms of numbers and
as an the
ýC"ve to
gaincooperation. characteristics targetadopter.
of
Anexampleof a successful partnership
*-weenthe USINGTHEEXPERIENCE
media,business anda non SALES
12wernment agencyis illustratedby the OFCOMMERCIAL
rMindal Time?*Lunchfor FivePounds' PROMOTION COMPETITIONS
ftnOtion (Fr 1998). Nowin its fifth year, In thecommercial sector,competitions are
ý14is ajoint ýenturebetweenthe FT, by
nowused all types of organizations (Pe3ttie
5ý2restaurants over & Peattie,1993)fromsupermarkets to water
In the UKandthe Savethe banks
thL,Iten Fund.Over two-week companies, charities,estate agencies,
a period,
ItIn,bersof the publicareinvitedto enjoya andevensolicitors.
4tdal menuat a discountprice. In return, Promotions involvingprizesaretypically
11'ry classifiedinto four types (Cummins, 1989).
areInvitedto makea donationto the
4vt the ChildrenFund(Lastyearthis " Competitions - which InvolveskilL
1%1; ntedto E43,000, to Draws free of chance with
llltd seven which was enough " - games
medical centers in Africa)and noaptay'" element
144t the
qualityof the restaurant by involving but
UM'Ptetlon " Games - no skill, some
of a questionnaire. 4'pLay"
for participatingrestaurants, It is an element.
'ý%Portunity an entry fee.
to not onlybeassociated with a " Lotteries - games of chance with
ýýd CA use" but alsoto attractnewcustomers. Thisarticleusestheterm*competition' to
q Addition lotteries
"Ir" eachparticipatingrestauranthas coverthe first three categories,as
tit
,, thancetowin a substantialcashprizeIn tendto existrelatively Independently of the
30SOCIAL
MARKETINGQUARTERLY
APPLICAMONS
product and servicethey promote. The and absorb relatively Largeamountsof
Introduction of the National Lottery, which is information, a bookletcould be produced
a productin its own right, makesit even more which includes a competition entry form
reasonableto treat this type as a separate requiring the competitorto answerquestions
categoryof promotion. on the material.
Thereare manytypes of competitionsthat Another aspectthat needsto be
can be run, for example,devisinga slogan or consideredwhenusing competitions Is what
a name,answeringquestions,order of merit, prizesshould be offered. In the Premium
or estimating a time, quantity or distance Incentive Business/BetterHomes& Gardens
(Peattie & Peattie,1993). Mostare a hybrid (PIBBHG,1989)surveyof 500 UShouseholds,
of two types. they found that for 48% of entrantsInto
In the commercialsector, for example, competitions the prize was important (even
the most commonform of competition though 62% also said they entered*just for
involvesansweringquestionsand devising a fun"). Apart from the numberandvalue, the
slogan. Eachtype of competition has advan- other key dimensionof competitionprizes
tagesand disadvantages,dependingon the is their nature.
marketingobjectivesof the campaign. For Prizescanbe:
example,an order of merit competition can
encouragethe target adopterto focus on the " Financial; - cash, vouchers or property bonds.
benefits of smokingcessation,and at the hi-fis
" Materiat; - cars, andwhitegoodsare
sametime, researchthe relative importance popularprizes.
that the competitorattachesto each. Of
course,caremust be taken wheninterpreting " Experiential; - holidays, meats, days out or
these resultsas the competitormaymerelybe flights In hot air balloons.
ranking accordingto the order he/she per- " Rare; someprizes are of value, but cannot
ceivesthe judges wiLLchooserather than commonly be purchased by consumers such
being a reflection of their personalvalues. lunch Barbara Cartland (Dairy Milk),
as with
As with any form of marketingcommuni- or a family portrait taken by Patrick
cation, the successof a competitiondepends Lichrield(Boots).
heavily on the useof an effective mediato
bring it to the potential consumers'attention. in tryingto makethe prizes,andthere.
In the commercialsector,the most forethe competitionattractive,the social
popularmethodof deliveringthe competition marketerhasseveraL options.
is the point of saleleaflet. In social market- " Choose a prize(s) that wilt appeal to the
ing programs,this can serveseveralobjectives targetaudience.
suchas addingtangibility to an intangible 'speclar;
" Make the prize aswellas
social product,or acting as an opportunity for
personalcontact. Fortangible social prod- simplyvaluable.
ucts, specialpromotionalpackagingor leaflet " offer flexibility e.g. offeringcash
attachmentsare both waysof gaining atten- altematives, to goodsandservices or a
tion. Wherethe objectiveof the program variety of holiday destinations to
includesgetting the target adopterto read choosefrom.
offer variety. Onemanufactureroffered a
Jaguarcar, a Spanishvilla, a light aircraft
As with anyform of market- a yacht and E5,000as 3 single prize.
ing communication,the Although most programbudgetswould
success not stretch to this, the sameprinciple
of a competition could be applied.
dependsheavilyon the use
Theattractivenessof the competitionIs
of an effectivemediato related to the expected value (or rather
bring it to the potential utility) of the prizes,and the perceived
consumers' attention.
 -Vý V 31
APPLICATIONS
=a 'rize Philosophy MaLrix free membership of i eisure centre uSiriq a
. competition which involves ranking the benefits
Y"yone a winner Bonanzas of regular exercise. This would be classified a
having a high marketing integration as the
product, prize and competition are all related.
Competitions aTenow widely used in the
commercial sector. The experience gained by
marketers is being to
used create more innova-
tive and effective competitions. Social market-
ers can aLso benefit from this knowledqe to add
another dimension to lheir marke*'-lq toolki',.

Misers I Jackpots GEMNG THE MOST

PPT7C %1AII IL
OUT OF COMPETITIONS
LD
HI Severa[ atit hor,, ý,jý h w, ( it- ri,i ri%(I
loop (1991) and Keor & Bayer (1986) have
9n*&bitity of winning. Marketing budgets forward for
are put useful planning guidelines
Us"Lly limited for social programs ruling out
the opportunity to marketers on the practicatities of running sales
offer "bonanzas" (many .
promotl ons. The COMPETF checklist developed
Pnrn of a high value) as illustrated in Figure by Peattie & Peattie (1993) has been adapted
However, depending
on the objectives of below specifically for social marketers. The
Program and the lifestyle patterns and
P%4etencesof the target
checklist prompts the consideration of
audience, the SOCIdl seven key areas:
MMeter can choose to
offer a few prizes of the be run
t"O value (jackpots) Co-sponsors wiR competition
or a Large number of in
V-41;vely low value only by the program promoter, or run
pri7es (everyone a winner).
Measuring the effectiveness partnership with another organization, such
of
"IMPetitions by studying the as an intermediary or a corporate sponsor?
competitions Does the partner have any prior experience or
*1*ftiselvesis not
easy even in the commercial in competitions? Could
141Ctor.There has been little expertise running
academic they contribute toward the cost of running
'Iftearch examining the
effects of competitions the competition or the prizes? Are there any
Of,sales turnover, but there is
evidence from
*I'* reUted field eil, icat implications?
of generating mail survey
'ftPons,es which suggests that Objectives what are the marketing
competitions
Wt effeCtive. McDaniel Jackson (1984) objectives of the competition? Are these
and
40undthat the the objectives of the overall
offer of a competition acted as compatible with
Im.incentive, but noted a threshold What message will it
effect in program?
14"7"sof size of the ý,Pnd to the target adopters?
prize that had to be
O"eted. Gajraj et at. (1990) noted that the
'Otltry incentive... Mechanics - how will the competition be
clearly increased the de%I(Ined, delivered, entered and judged?
IeWnse rate very substantially. " Another
How can the mechanics of the competition
"WASUIre developed by Peattie & Peattle
'*"3) involved best meet its objectives? What form of
measuring the "marketing competition will most appeal to our target
-"*gration" to try and assessthe potential focus be to
adopters? Could groups used
r"ectiveness of competitions.
investigate this and other aspects of the
Competitions vary in terms of whether
design? What could go wrong logistically and
"ther the prize or the mechanics of the
- flow could it be prevented?
ýOmPetition relate back to the beiriq
- product
ftfnoted. In their survey, this Prizes - what number and value of Prizes
was used to
R*te the competitions as high, medium or tow wI[l be required to make the competition
"I t&fms of marketing integration. [or attractive? Can the prizes be chosen to
tOmple, in a social marketing program to reinforce the program objectives? What
"nr)!e requi,it vxvrciýe, the pri/e ( outd he liri7e% wit( attract target adopters!

SMO / VOL. V/ NO. I /MARCH 1999

 37- SOCIAL MARKETINGQUARTERLY

APPLICATIONS
Expenditure - how muchof the marketing In recentyears,the situation has
" budget and time the changedas satespromotion hasspread
of programorganizers
should the competition consume?Will, rapidly into non-traditionaLsectors,suchas
outside expertisebe needed? Howcan the financial services(Addison,1988). Linkedto
judging be madeas simple as possible? this developmenthas been the increasing
" Timing - shouldthe competition be used useof value addingtype satespromotions
(suchas competitionsand give-aways)which
to create awarenessof the program,provide for intangible
the opportunity for personalinteraction, or are often more appropriate
goods and services. Experience from the
usedto reinforcebehavior? Shouldthe gap FMCG has that
betweenlaunchand the closing date be marketing of shown sates
promotion can provide opportunities to
tong to maximizethe effect, or short, to
prevent Lossof target adopterinterest? changethe consumer'swhole relationship
with a given brand (Peattie & Peattie, 1994).
How tong should Leafletsand postersbe
displayedfor? Forexample,consumerswho are satisfied
with a promoted brand have an increased
" Evaluation - how tong will the effective probability of repeat purchases in the future.
nessof the competitionbe measuredin This is particularlytrue of previousnon-users
terms of achievingits objectives? Who (Rothschild& Gaidis,1981). Nielsen
should be responsiblefor evaluation,when PromotionServicesfound that 55% of
and using what measures? consumerswho enter competitions will select
Asking such questionsbeforeorganizinga a brandbecauseof a competition and that
95% of those will repurchasein the future.
competition mayseemlike extremecommon
Theprovenability of competitionsto
sense,but the effectivenessof salespromotion Lasting in
create changes attitudes and
managementhasbeenquestioned(Strang,
2970). In addition, history hasshownthat behaviordemonstratesthat they offer a
highly flexible and cost effective meansof
ewn Urge and sophisticatedcompaniessuch
as Esso,Coca-Cola marketingcommunicationswhen property
and Hoover(Peattie & Research evidence (Peattie &
Peattie,1994) with a tong track recordof managed.
Peattie, 1994) also showsthat promotions
successfulsalespromotionscan be caughtout
if the promotion is not carefully are particuLartyeffective when used
planned. in conjunctionwith advertising. This
suggests that if promotional activity is
CONCLUSION
considered to be a necessarycomponentof a
Forsocialmarketingcampaigns
to be
successful,all aspectsof the marketingmix - social marketingprogram,complementing
price, productýplaceand promotion- needto social advertisingwith promotional competi.
be considered. In somecases,initial needs tions could providea winning formuU.
analysismayindicate that equalor greater IMPLICATIONSFORSOCIAL MARKETING
attention needsto be paid to the price,
productor place. However,if the analysis Promotional competitions an provide an
Indicatesthat promotionis an essential alternative, yet cost effective, means of
componentof the marketingstrategy, then it communicating with the target audience
ISImportant that both above-andbelow-the- in social marketing programs. Experience
of their use in the commercial sector can
Unepromotionaltechniquesare considered. for
provide useful lessons and guidelines
In the samewaythat socialmarketinghas
beenrestricted by the dominanceof social planning competitions.
'
advertising,the perceptionof salespromotion ABOUTTHEAUTHOR
techniqueshas beenlimited by the SuePeattie BA, MJL, Is Senior Ltcturff In
over-emphasison valueIncreasingtypesof andMarketingat
Statistics the University of
promotion (such as couponsand discount Glamorgan Business SChool. Watts,UX She
haspublished widely in the ficid of We$
Pricing) and by being associatedwith a narrow in the commercial sector and Is
promotion
rangeof industries,in particularpackaged currentlyengaged in a Ph.D. in theareaof
food and consumergoods. &octalmarketing andhealthpromotion.
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10 W4s Promotion the onset of smokingIn adotescence.Health
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44"WO, (JunelJu(y),
29-26.
ZIBBERFLATT, S.M, WILBUR, C.S. & PINSKY, J. L
(1990). Changingcafeteria eating habits. Journal of
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 Publication #11

'Using the Internet to Communicate the

Sun Safety Message to Teenagers'

Health Education

Vol 102,5, August 2002, pp. 210 - 218.

 , Introduction
Using the Internet to .__.
- _l
t____ _
-i ne suaienceis tne Keyto au iormsot
communicate the communication.The natureof the message,
its tone and the mediathroughwhich It is
sun-safety message to deliveredshouldbe shaped.not by the needs
teenagess
re of the communicator, but by the natureand
needsof the audience.I Italth education
SuePeattie messages will only be cl1cctive,if theyarc
communicated to the targetaudiencethrough
media to which they attend,and by using
Sul Peattle Is LecturerIn Marketing,CardiffBusiness words,imagesand a tonewhich theywill
Sdiod, CardiffUniversity,Cardiff,UK. accept(Andrcascri.1995).
Onecrucialhealtheducationmessage
MMM-W concernsskin cancerpreventionthrough
"sun-safc"behaviour.Skincanceris the most
Healthcare.Education,
Safety,Internet,Youngpeople commonform of cancer,with threetimesthe
globalincidenceof the secondmostcommon,
lung cancer(Armstrongand Kricker, 1995).
Skincanceris the world'smostprevalentform cancer, Two out of threeAustraliansand one In six
of
yet it Is oneof the mostpreventable.
Examines
Americansarelikely to get skincancerat
the
somepoint in their lire (Giles a al., 1989;
challengeof communicating the *sun-safety* health
educationmessage to teenagers. Teenagers
Pion, 1996).creatingan estimatedannual
representa
keyaudience, because costof managing this disease In Australiaof
skin-cancer risksarestrongly
linkedto sun-exposure behaviourandexperiences during AS400million (Martin, 1995).Despiteits
adolescence. FocusgroupsInvolvingthoseconcerned prevalence, it is a highly preventable health
with childsurv-safety risk. 71c US Skin Cancer Foundation
wereconductedIn bothAustralia
andthe UK.In-depthInterviewswith UKteenagers estimatesthat simple changes in behaviour
were
usedto exploretheirexperience of the Internetandtheir suchasavoidingthe mid-dsysummersun,
opinionson Its potentialas a channelfor promofingsun- and makingappropriateuseof sun-4crecri,
safety.BothAustralianand UKteenagers felt that they hatsand'long* clothing,couldpreventup to
tackedInformation on sun-safety. interviewsshowedthat 90 per centof cases(Skin Cancer
teenagers thoughtthat a goodWebsite shouldhave Foundation.1989).1Icalth educationhas
"d of access, easeof readingand navigation,good beencentralto attemptsto bring aboutthese
links,audio-visual effectsand Interactivity.Theysaw the behaviourchanges(Bulleretat, 1996;Morris
Internetas potentiallyusefulIn providinginformation and Elwood. 1996).
aboutsun-safety, suggesting the useof cele! 71c aim of this paper is to evaluate the
)rities.prize$
Withcompetitions, potential of a specific health education
and teenage-ratherthanhealth-
orientedsites.Theevidencefrom this research medium. the Internet, as a means of
suggests
that sun-safety is a healtheducationIssueon whichthe communicating the sun-safety message to
particularcommunication characteristicsof the Internet teenagers. The focus on teenagers might seem
canbe utillsedto goodeffect Theresultssuggest curious, given that sun exposure occurs at all
considerable synergybetweenthe Internetas a medlium, age%, and skin cancer incidence usually occurs
sun-Safety as a message andteena" as an audience. much later in life. 'Mere are several reasons
why teenagers form the most Important target
audience for health education about sun.
The risk of melanoma can be doubled
Theresearch sarety.
registerfor this JournalIs availableat
INttPJ/www.emeraldInsiqhtco m/rese3rchreg by even one incidence of serious sunburn
Ister
before the age of 18 (Mwood tt al., 1990). A
TheCurrentIssueandfull text archiveof thisJournalIs
total of 80 per cent of sun exposure occurs
availableat before the age of 18 years (Weinstock a a!,
http: i/www. emeraldinslghtcom/0965-4283. htm
1989). Teenagers are particularly at risk from
*01th Educaton over-exposurc to the sun, with adolescent
WOW 102- Numbef5- 2DO2 - pp.210-218
C MCI UPUmIled- ISSN096S-4283 ReceivedJune 2001
W 10.110$M%S428021044408) RevisedNovember 2001
210
 Ung theIntemetto communkate Owsun-safety
messas "fob td"om
SuePeattie Vokont 102 - Numbw S- 2002, 210-216

maleshaving the highest incidenceof sunburn and individuals. The dangersof solar
of any group (Edmonson, 1997). Despite the radiation vary according to your genctic
importance of reaching this key audience, heritage, clothing, activity, position,
relatively few intervention programmeshave altitude, and according to the prevailing:
specifically targeted children or adolescents latitude, weather, time of day, seasonand
(Rossi et at, 1995). nose doing so have ozone density.
generallyproduced relatively short-term Knowkdgebam. Researchevidence
changesin knowledge, awarenessand suggeststhat attitudes towards sun
perceivedsusceptibility, but not in behaviour exposure are changing, but significant
(Fork et at, 1992; Goldstein and Lesher, Capsin knowledgeand understanding
1991). persist (Foltz, 1993; Martin, 1995).
Commonplacemyths exist relating to sun
Specifics of the communication factors
exposure, personal risk and
challenge
protection strategies(Douglas er aL,
Communicating with teenagers on health 1997, Marks and I lilt, 1988). The
issues and influencing their behaviour are for
misconceivednotion of a Osare tan",
notoriously difficult (Hughes et aL, 1993;
Vitols and Oates, 1997). Key
example is widcsprcadýespeciallysmong
challenges in teenagers(Vail-Smith and Felts, 1993,
communicating the sun-safety message Weiler, 1991).
include:
Vmitadom olcontyntiond channeh.
0 Peer pressure. just as teenagers may smoke
Finding an appropriate channel to reach
or drink, because they perceive it to be be difficult. I Icalth
teenagers can
fashionable or acceptable to their peers,
professionalscan act as an authoritative
so they may see a tan as desirable, or
source, but healthy adolescentsmay not
reject wearing a hat for fear of looking into them. Although
come contact with
" uncool". Research by the US Academy
schoolsare an obvious channel, sun-
of Dermatology found that 75 per cent of by
safety typically gets overshadowed
the 12-19 age group knew that sun health topics such as smoking, drugs,
exposure damages the skin, yet positive the *life skills"
alcohol and safe sex within
attitudes to tanning persisted. two-thirds (a
clement of the curriculum curriculum
of teenagers felt that they looked better, has been by
element which constrained
healthier, more sophisticated, older and
the development of the UK National
thinner with a tan (Dortch, 1997).
Cufficulumý This can be demonstrated
Wichstrom (1994), in a study of
by the bias within the child health
Norwegian adolescents, observed strong
literature, where In a rc%icwof 000
peer pressure effects relating to both 1983-1995)
articles (published
sunbathing and sun-screen use.
0 Relevance. This can be diflicult, given the concerning smoking. alcohol and solar
time-lag between the initiating
protection among school-agechildretu 97
per cent concerned the dangers posed by
carcinogenic event (childhood exposure)
smoking and alcohol (L)magh et 41.o
and diagnosis of the melanoma
(Armstrong and Kricker, 1995). For most
1997).
teenagers, skin cancer Is not one of the one potential solution to the challengeof
"here and now" health issues, which reaching teenagerswith the sun-safety
include smoking, drugs and safe sex.
message is to use the Internet. This. however.
Rossi et al. (1995) stress the importance movesan already difficult challenge for health
of "personalising" the issue of skin cancer educators Into relatively uncharted territory.
risks to overcome the "optimistic bias"
typical among teenagers. The Internet's poicritlid as a inedluni
Cancer taboo. Cancer, like Aids, is a Youngsterscan Increasinglybe found and
subject that tends not to be openly reached online; for example, 82 per cent of
discussed. particularly with children Amtricans ogtd from three to 18 use
(Sontag, 1977). computtri at home, school or both.
Compkxiry. Smoking, alcohol and drugs Teenagersconnecting at least monthly grew
are relatively consistent in terms of the by nearly 70 per cent between 1998 and 1999
dangers they pose among circumstances (Gallanis, 2000), and it Is estimated that by
211
 Udngthe Intemetto communkate
thesun-oletymesww 14"M Wado
SuePeaWe Vokme 102 - N~ S- lool - 110-219

2002 there will be 15.3 million American Empowermtnt.Unlike conventional

teenagers online. The term "Generation Y' advertising, It is the user who controls
was coined by demographers, to describe how they manage the content and the
these youngsters, who are at the leading edge timing of the communication procCSL
of a huge bubble of computer-literate people Cuswmijabdiry.Web marketers have
in industrialised nations. They increasingly tried to develop
average some
nine hours per week online, which is 38 per relationships with customers by
cent more than the typical "wired" adult providing personalised services based on
(Forrester Research, 2000). information from the user (Fletcher,
Gradually the Internet is displacing older 2000). 71is mass customisation appeals
media such as television and newspapers as a to today's teenagers,who, more than any
prime source of important information. In preceding generation, crave individuality
terms of communicating the sun-safety and the personalised approach (Smith.
message effectively to teenagers, the Internet 2000). Personalisationis a key feature of
is an increasingly obvious
mediurn to use, the most popular teenage Web site,
partly because they are becoming harder to Bolt. com. which provides horoscopes;
reach using traditional media (Wellar, 1999). personal planners; and sections for -my
Teenagers now watch less television than 18- friends", "my clubs", and "my tap*. In
49 year olds but spend more time online than a health education context, online
any other demographic group (Forrester rnessages*unlike traditional media,
Research, 2000). The Internet is central to could be tailored according to the
teenagers' search for information on any teenatees staiewithin Prochaskaand
subject. This May be to support school DiClemente's (1983) Behavioural
assignments, or to further their leisure Change Model.
interests. Less obviously, this ImmeSacy.71is is another strength of
new virtual
sphere has also become an alternative to more Internet communication. Online
traditional meeting-points for adolescents, information search requestscan get an
such as the school-yard (jonsson-Smaragd4 almost Instantaneous response,and on-
1998). For many, the Internet is a primary screen information "tickers" can
way of communicating, often rendering face- provide real-time news and information
to-face interaction unnecessary (Forr ester updates,
Research, 1999). Inter-wrinectitiry. The Internet Allows
From an international perspective, the individuals, organizationsand businesses
Internet may have limited impact in interest to become highly
a with a common
supporting education for health concerns, inter-connected acrossinternational
which are most prevalent away from countries barriers. This can be achievedthrough
with high Internet usage rates (e.g. Aids links between sites and specialservices
awareness). For skin cancer, however, the such As"Web rings*.
highest Internet usage rates (Nielsen/
NetRatings, 2000) are among mostly white
Westernised populations, who also have the
Methodi
highest skin cancer risk (i. e. USA, Australia
and New Zealand, the UK, and Scandinavia). 7"his paper brings together two elements of
All these regions seem set to follow the US primary research. Mic first element Is bitted
model, where the Internet Is central to leisure on focus groups exploring progress towards,
and information gathering. Through it barriers to, sun-gafety (particularly for
and
in Australia and the M
teenagers are creating national and children) conducted
international "surrogate eytended families" of ne second clement Is based on In-depth
peen (Smith, 2000). interviews with UK teenagers. which explored
their experiences of the Internet and their
Key characteristics of Internet Its potential as a channel for
opinions of
communication promoting sun-safety.
17heInternet has a number of characteristics,
which have relevanceto its potential as a Focusgroups
health education meditun and make it ne focus groups formeJ part of a larstr.
especiallyattractive to teenagers: more general sun-safity projecL
212
 UdN the lnbmwt to communkstot1w sun4afety
mesup 140" WWA60
SuePeame vokme 102 - Nwtw s- 2001 - 210-218

Although focus groups have often been 0 factors creating awareness of skin cancer,
under-utilisod in health promotion (Basch, 0 perceptions of risks, and factors
1987), they can be vital, particularly early in a Influencing risk;
campaign, to discover the knowledge, 0 understanding of the links between sun
attitudes, practices and beliefs of the target exposure and skin cancer risks, and of
adopters (in this caseteenagers)and other factors influencing the intensity of UV
stakeholders(Andreasen, 1995). These were radiation;
all key themeswithin the focus group " awareness and understanding of
discussions,held in Launceston, Tasmania strategies to reduce sun exposure;
and Cardiff, UK. " perceptions of barriers to practising or
Tasmania, the Island State which lies south
promoting sun-safety-,
of the mainland, has a population of " perceptions of the effectiveness of health
approximately450,000, of whom 94 per cent education campaigns aimed at promoting
are descendantsof European (particularly sun-safety, and methods by which they
British and Irish) migrants. It also has the
could be improved.
world's highestincidence of non-melanoma
skin cancer (Armstrong Kricker, 7le initial focus group discussionscovereda
and 1995).
Although thesecities are on opposite sidesof wide rangeof issues,but the challengeof
the world, they havemany similarities in terms communicatingcffectively with lecnagerswas
of economichistory, culture and topography one of the most recurrent thcmes,and lntcmet
(e.g. driving time to nearestbeach). use was suggestedas a powntial solution,
Recruiting focus group participants was
structured around recruiting schools willing One-to-one Interviews
to participate, which overcamemany of the To further investigatethe potential for the
practical and ethical difficultics that can arise Internet as a mediun-420 in-depth one-to-one
in using children as researchsubjects (Todd, discussionswith Internet users(seed 15-16 to
2000). Then a "snowballing" approach was correspondwith the age group interviewed
used to identify groups of adult participants previously, and orenly split between the
from the schools' catchment areas. sexes)were act up to explore the Issues
The groups in each country Included three, Involved. Participants were Mentified and
with different agesof children (six to seven contacted through the schoolsused In the
years;ten to 11; and 15-16); and adult groups focus groups. Again questionswere pre.
including parents; school stakeholders
piloted, and responsesrecorded and
(including teachers,13TArepresentatives,and
transcribed.Ile question set used within die
governors);health professionals;and coaches interviews covered.
and supervisorsof groups relating to a Internetwarit - length of u6age.
children's sports and outdoor activities. In frequeriM location, purpose.
total, 16 focus groups were conducted. The
0 atrin&W towarth the Inimwt - usefulness,
focus groups involving teenagerswere held
reliability and limitations;
during the school day, and lasted about one
0 treb-tite tkii4m - elementsof good and
hour. The adult focus groups typically lasted bad design, and preferences;
ground 90 minUteL 0 um of other mAEJ (i". Ang TV, rjJij,
For eachsession,Invitations were Issued,
mig. tzinera"J newipapert) - nature,
aiming for a group of betweensix and nine frequency. purpoise and duration;
participants (achievedfor almost all groups). onfind incentitvi - the potential for
Eachsessionwasrun by two trained facilitators
promotions such as online competitions
and was recordedfor transcription and to encourage interaction;
analysis.Participantswere not informed of the
sun-wfery- existing knowledge and
specific topic beforehand,but were Invited to information;
*a discussionon child health and safM". Ile sources of
potentijI.Pr otdint iun-s4letyprowotým
questionsused were piloted beforehand,both location. perceived
by consultation with relevantexpertsand style of message,
In credibility, methods to encourage
testing pilot discussions.Question sets
attention and Interaction.
varied betweengroupsdependingon their age
and background,but typical issuescovered lit Interviews Scricrally lAsted bttween 30
included: minuta and one hour.
213
 Ung the Intemetto communksto thesun-mfeymup Hoafthtd"tw
SuePeaft VoWe 101- N~ S-M1 110-218

Results They Wt. however, that unsafe behaviour was

Focus group results: teenagers and often related not to a lack of awareness or
poor decision making, but to changing
sun-safety lapses in They felt
Several themes from the focus groups have circumstances or memory.
that most teenagers' incidence otsunbum was
relevance for health educators seeking to but by
not a question of choice; was caused
promote sun-safety to teenagers: factors such as unexpected changes in
774 "communication gap" weather, tennis matches becoming prolonged.
Ile suggestion that teenagers as a group are or simply forgetting to pick up a hat when
perceived to be hard to influence was widely leaving the house in a hurry.
echoed within the adult focus groups. Words In the UIC. teenagers felt that both
like "difficult" and "hopeless" figured awareness raising and information were
frequently. One Australian doctor (and lacking. One commented.
parent) put it thus: I don't think that the dingen of the sun are
I Justtend to think that you lose control. once advertised wcll. esptclally In this country where
we don't gct muds sun. I think we should be
they hit adolescenceor from about ten to 20
made more aware of the dingiers.
yearsold. That's the group that tends to not
want to abide by the rules. Up until ten, then 71c need for more factual Information about
you've got control, then after 20 they start to risks and protection strategies was
becomemore sensible.
highlighted explicitly by participants, and
77heteenagersthemselves,in Australia and implicitly by the caps in their knowledge.

the U144saw themselvesas open to When participants were asked to identify

Information and education, and to effective channels through which to
behavioural change,provided that the with young people, the key
communicate
related to better educational
communication was informative, not suggestions
through schools (e. gý ItAllets end
too coercivein tone, and backed up by material
to greater use of the Internet.
consultation on Issueslike school sun-saiety videos) and
The need for relevant and timely information
policies.
in relation to the "UV Index" by
was made
The 11-yearoU watershed
one Australian teenager.
One striking result from the focus groups in
11ey always do It when the doy Is *%-tr and you
both countries was the role played by the
think *Oh, I wits out in the sun thtnl"
transition between junior and senior schools.
77his seemed to represent a boundary or EnduringmythOAVY
watershed at which rcsponsibdity for sun-
Many commonplacemythe about sun-6&ftty
were raised by participants in the focus
safety was to a large extent abdicated from the
adults to the children in both countries. groups.Ile "myth of the safetan" waswidely
Parents and teachers both tended to stress the held in both countrift One Australian
importance of encouraging children of junior teenagersaid.
I think that aslonSasyoudont tet burnedthen
school age to practise sun-safety, and the
basicallyyou'reOK.
apparent "impossibility" of doing the same
for senior schoolchildren. 77his was also A UK counterpart said:
reflected within schools managemenu I don't tend to worrybecauseI don't bum very
If I
easily. stayout too long. I do (tel a bit bumt4
particularly in Australia, where junior schools doesn't bother
aftera while, but usuallyIt mt.
were far more likely to actively enforce a
sun-safety policy. Other m)ihs encounterol were that you
cannot get sunburned on a cloudy day (even
Awarenessraisingversusiqformarionprovision be 60 UV
though there can still per cent of
When askedabout existing sun-safery day);
rayspresent on an ovtrcast that water or
promotion, both Australian teenagersand form provides protection; that
any of clothing
adults felt that awarenessraising was over- when It is hot; and that
you arc only at risk
emphasised,at the expenseof the provision of
information. One Australian teenager,when skin cancer is not really preventable.
askedabout the sun-safetyInformation at uneenjinly
Uncertainty was caused by the combination
school, commented.
We'vejustbeentold, that'sall - wedon't getany or the lack of hard Information and the
factsor anything. widespreadmythology. The tom groups
214
 UOngtheIntemstto oDmmunkate
Owwrufey message H*AhhEducation
Sue PeaMit Volume 101 - N~ 5- ZWI 1 210-211

revealedcontinuing confusion over a range of Interview results - teenage Internet usage

issuessuch as the role of prolonged exposure Tbe teenagersinterviewed had used the
and sunburn as risk factors, over protective Internet for over a year, although usage
strategiessuch as sun-screenusage,and over frequency varied from daily to monthly. All
who is most at risk in relation to accessedit from home with occasionalaccess
characteristicssuch as hair and skin type. at schoo4 usually for school projects, e-mai4
chat forums, playing games, browsing and
Penonalexperiencs
searching for non-school information (i. e.
PersonalexperienceW2Svery significant in
hobbies). In terms of the features of a good
bringing the reality of the risk of skin cancer
closeto home. Participants, such as this web site, speed of access was seen as
Australian teenager,with relativeswho had important, along with sites being easy to read
and navigate with good links. Audio-%isual
contracted skin cancer, were typically more
effects and interactivity (such as chat rooms,
awareof the risks, and better informed about
polls, competitions or virtual tours) were
protective strategies:
seen as being crucial to make a site
You hearof so manypeopledyingeachyearof
interesting. "Read-only" sites were
skincancer,but you don't reallynoticeuntil
there'ssomeoneyou know It hashappenedto. considered particularly "boring".
Personalexperience doeschangeyour anitudeL Competitions were viewed as a potential
It's like anything.you would be carefulif It was Incentive to Interact with a Web site. All
personalto you. My grandfatherhad a respondentshad entered some sort of
melanomaand he diedof cancer.Steinshim to
competition previously and all would
throughwhathewentthroughandwatchinghim
die In the bedwasunbelievable. consider entering an Internet competition
(despite some concerns expressedabout
774 impactof "old" me&a Competitions
confidentiality). with some
IMe role of "soap operas", in both raising being
skill or a Some were seen to more
awarenessand undermining sun-sarety
attractive than free prize draw* and most
messages,was mentioned by participants in
preferred a few Jackpotprizes rather than
both countries. 7be UK teenagefocus group Novelty
many small prizes. prizes such as a
was unanimous in seeingsoapsas an cffccdve
makeover or a day with a celebrity were
way of getting the messageacrossto their more appealing than more
generally
peers.When asked in a focus group to name conventional prizes.
an influence which counteracted the sun- Men asked about sun-"fety, most
Safetymessage,one UK teenagercommented.
teenagershad pined some information from
Daywatch - they'realwaysbrownon there. leaflets or from TV weather
their parents,
This sameprogranune was mentioned by forecasts.Although some thought school
severalfocus group participants in both could be a potential source.others questioned
countries as undermining attempts to raise whether It would be taken scriouilr.
awarenessand changebehaviour, and it if I was sitting in my PSIM(Pcrwnaland
...
becamesynonymouswith the glamorisation SocialrAlucation)clarAandthe teachers&W.
"Ptight,now we aregoingto talk aboutsun.
of sun ovcr-exposure.
safety*# the wholecW4wouLlthink thatthiswas
Perrpressure a chanceto messaroundall lewoon.
Alost teenagers'fcars of being sunburned and 711cre however. general agreement that it
was,
increasingtheir risk of future skin cancerswas
was a subject about %hich they and their pecrt
outweighed by a fear of being sociaHyisolated were not well informed. and where more
by having to adopt a particular sun-saftry factual Information was requiml. The best
strategyor avoid further sun-cxposum One way of conveying such information on the
Australian teenager'sreasonfor not wearing a Internet as being through features
was seen
hat was:
and articles, for example, celebrities talking
The commentsyougetIf youJustwcarIt walking about sunburn or skin cancer, or (athlon/
down the street. beauty Items. and by emplusising the dangers
Perhapssurprisingly, the Australian teenagers of ageing rather then skin cancer. AD agreed
came out In favour of hats being made a that the chance to win a prize would make
compulsory part of school uniforn-4 because: them mom likely to read sun-safety
It wouldbe better.asyou wouldn't feelleft OUL information. Mcus6ion groups. for example,
If everyonewearsone,thenyou will too. linking up with Australian teenagers to

215
 Ming theImmet to oommLxgcate
0* sm4afirtymetu" Hath tdWMW
Sueftstw vaimo 102- Nomw 5- 2002- 110416

discuss their experiences, were also seen as a

cross the I 1-yearold watershed.The Internet
potentially useful way of bringing the issue can provide them with the informadonal
home to UK teenagers. 71ere was unanimity
support they need to take on this
that the information should be located on responsibility. Web-site archive and search
sites that teenagers use (e. g. "mag2logs", or facilities can allow sun-safctymessagesand
music sites) rather than health-oriented sites: information to be availableahnost
Teenagers are not going to go out of their way to indefinitely, unlike mom traditional media.
find sun-safety Information but if they come Given teenagers'preferencefor finding out.
across It they might read it. being Issues, Is
rather than told about this
potentially crucial.

Discussion Immediacy
Mitre was criticism In the focus groups of
The Internet was a popular suggestion from
conventional UV warnings on weather
teenage participants as a medium to promote forecasts as being either historical or seen In
the sun-safM message. Mic characteristics of the eveningi4 both reducing their usefulness.
the Internet make it a potentially effective tool lkisks of sun exposure can change as quickly
to address tWs challenge. as the weather, and online warnings based on
usere location, local weather forecasts and
Location
personal risk profile wouIJ be potentially
To communicate the sun-safetymessageto
very useful. For example. users couIJ
teenagersvia the Intcrnc4 a key question provi'de a Zip code to get local weather
concernswhere the messageshould be reports. This has Important Implications for
located and from where it should be accessed. because it can automate
sun-safety, partly
Evidencefrom the interviews suggeststhat the handling of the demographic. geographic,
key to reaching teenagersis sites aimed at
climatic and temporal variations in skin
them, rather than dedicated health Web sites. cancer risks.
One strength of the Internet is the ability to
provide links between sites, and teenagesites Customlsability
which tackle the issueof sun-safetycan Ile respondents Wt that teenagers
provide links into health education sites for responded best to specific and personalisod
thoseseekingfurther information. In terms of infortnation. Sun-safety can become a lc%s
Providing a coordinated sun-safetymessageo complex and uncertain issue for teenagcri, If
the Internet provides an opportunity to they can create personalistiJ risk profiles and
intcrlink relevant organisationsincluding access personalised advice. In terms of the
companiesin the cosmeticsand behavioural 'stage of change* model
pharmaceuticalsindustries, cancer charities, (Prochaska and DiClemente, 1983), for those
schoolsand health promotion organisations. at the pre-contemplation stage (qVical of UK
and US tecnagcrs) it is important to create
Empowertnent awareness and provide facts at the places
A consistent theme within the focus groups where they 'hang-out" online. For those at
and interviews was that teenagers do not want the action and maintenance stage (more
to be told what to do. Teenagers can feel qpical of Australian teenagers) a dedicated
empowered by a technology that allows them health Wcb site could be more effective.
to choose what information they absorb,
when, and without parental supervision. They Inter,. conntcthwity
with to be given the information and allowed Mle Interviews showed diat teenagm thought
to make their own decisions. Since the sun-4arety should be
sites that promoted
Internet does not have any characteristics of through routes other than a speciflcally
age, sex or status, it can provide neutral and health-oricnted site. For example, with the
authoritative information which teenagers will potential influence that soap opera plot-lines
be likely to trust, without communicating the and characters can have In communicating
authoritarian adult tone likely to make them with teenagers, the Wtb site of any soap opera
rebel. This Is potentially important, given the that dealt with skin cancer or sun-4&fcty to an
tendency for adults to devolve responsibility issue could then provide links to relevant
for sun-safety much mom to children, as they health educadon IRCL
216
 Usingtht Int"not to oommunicals
thesun-",fly mesup Hath Watim
SuePfatD@ vam 102- Nwdm s-M- 210-218

Personal experience Armstrwq,S.K. and Kricker.A. (1995).'Skin cancer",

Dermatorpkkvtý*gy. VoL 13 No. 3. pp. $83-94.
Respondentsfelt that personal experiencewas
Basch,CL (1987), 'Focus group Interview. an under
the most powerful agent for change.This Wised rewarth techniquefor Improving" and
Power can be shared acrossthe Web. For prKdca In health educatlon%Hejhh Education
example, UK teenagersfelt that, if sun-safety Ousnerly. Vol. 14, pp. 411-48.
Ouller,D.B. Buller. M.K. Beach. 8. and 14 G. (1996),
was raised as an issue at school, it wouki not
*Sunny da^ healthy ways: an evaluation of Wn
be taken very seriously. However, this could
cancer prevention curriculum for tk-me"y ubool
be done as a project that linked to Australian Ax"Al the AmeiricAft Academy of
&* children*. of
teenagers,who take it very seriously. Being Dernmrology,Vol. 3S No. 6. pp. 911-22.
able to discusssun-safetywith a fellow- Buder Group (19%). Businesson the Web Management
in had Guide: Strategies lrechno^ fluder Group,
teenager another country who has a and
Hull, June.
mole removed or lost a relative may bring the
Dortch. S. (1997). 'There goes the sun*, Ame4can
messagehome more forcefully than seemingly Demvaphk3, Vol. 19 No. It pp. 4.7.
abstract health warnings. Douglas.H.M. McGm It. and WIWm S. (1"7). OSun
behaviour and peceptions of risk for melanoma
among 21 jear-ol d New Ztalandm*. Australian
Zealand Axmul of hblic Htat#ý Vol. 21
and)Vew
Conclusions No. 3. pp, 329-34.
Edmonson,B. (11"I). 'Tanned to death*. Amork4an
For health educatorsseekingto reach Demographic, Vol. 19 No. 3, p. 37.
teenagers,Internet use would appear to be a ElwoA M. Whitehead. M. Davidsor41. Ste*&% M.
(19M. *Malignant in
very logical step. It should not be seen as a and Gait, M. awlianoma
England:risks associatedwith nwA hiKIK social
replacementfor more conventional elements Infernatioirw
class. half colour and UHtxn*.
of education such as classroom-based journal of [piderniology, Vol. 19. pp. $01-10.
teaching, but as complementary to It. School Fletcher.C (2000).*Gettinqpersonal onlim*. CUslog
Projects could create the motivation for Age,Vol. 17 No. 6, pp. 53-4.
teenagersto use the Internet to gather clear Foltz,A.T. (1"3). Istemul knowledgeandptactictsof
information about a subject which might cancer prevention:a pilot %W, Axtnd of
skin
PmdatrfcHeafthCOMVol. 7. pp. IMS.
otherwise be seenas too depressing,too
Fork,H.E. Wagner.ILF.andWow, K.D. (1"2), Me
complex or too remote to bother with. IMe Texaspw educationWn awareness proloct
Internet should, however, not be seen as a and
Win" preventionof malignantm4oncoma
Panaceain terms of communication on non-ineIxtocytic skincAncm*. Cutts.Vol. K
subjectssuch as sun-safety,as it has its own pp. 363-C
ForresterResearch (19"), TheNet-PowmdCorwagm
particular set of pitfalls (Butler Group, 1996), London.August.
Forrester Researcfý
of which health educatorswill need to be ForresterReseafth (200D),Young Consumers'Modi Mij4
mindful. Creating effective online sun-safety Forrester Restart%London,Decern1w.
messageswill also require the implementation Gallanis.PJ. (2000). 'RAC 2000 "Ilresses thatleNt of
to Generavon X&Y*. Discount Sbre
of other general principles of communication marketing
and health promotion. 71ese cannot be News, Vol. 39 No. S. P. 22.
included within the scope of this paper but Giles,G. Dwyer,T. bonemA. ef at (1989).Irends In
&kin cancff in Australw. am ovmiew of the
include relating promotion efforts to dju% Trans. Menm Ioun&#o#% Vol. I%
avallablt
consumer information processing(National pp. 141-7.
Cancer Institute, 2000), effective Web-site Goldstein.&G. and Lesher.IL V "I h"The t1foa of a
design (Wonnacott, 2000,1 Icrtz and uhool-bawdInterm"n on tkin cancer
pwomm, knowledge and botovior* Axond Of
Iksuchemin, 2000), and the use of social .
the American Academy of Dermatology, VoL 24,
marketing approaches(Andreascr4 1995;
P. 116.
Weinreich, 1999). Hertz.EL and Beauchemin, T.M. (2000).*Thepowerof
For health educators looking to take the successfulWebbasedsocialmarketing,straw1c
sun-safetyeducation messageout into the me of uxhnology lot socul cttang#wpui4tiortV,
Socialmariftrig OUNWdy. Vol. VI No. 1. pp, OS-9.
community, among teenagers,that Nemon. )A. (19131
Hughes, 81. Aftman, 0,13. and
community increasinglyexists online. OMelanoma andaln canw. evaluationof a health
pmgrame lot k<ondary 04W. Orrush
education
joumalof Offlublivy. Vol. 128,pp. 41247.
Jonsson-Smarao. U. *IllarnochUMPUMII det
References Statittk ochanalys%
riyarnedialarulAapet.
Andreasen,
A.R.(1995),MariedngSodalChange.
Jossey- MediMomer Z NORDICOWSwV, G6teborls
Bam SanFrancisco,
CA. G6wbn Sweden.
Universitet.

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 Uskig the Inivnet to communkststhe wn4afey mnuW Hath M"do"
SuePeame Van# 102 - NumberS- ZOU

tynagh.M. Scholfield, MJ.andSanson-Fisher. R.W. SkinCancerFoundation (1989),OPublic Information% the

(1997),*School healthpromotion programs over the Skin Cancer Foundation kurnat Vol. 7. pp. WI.
pastdecade: a reviewof thesmoking, alcoholand Smith,D.C. 000), Me Insidestoryan GenerationY,
solarprotection literature*,
HealthPromotion Wird's Auto WM4 Vol. 36 No.Z p. 80.
International,
Vol.12 No.1, pp.43-60. Sontag.S.(1977),Illnessas&Mrt4Oýor,Penguin, Londm.
Marks.R.andHill,D.(1988), 08ehavlour change In Todd,SJ.(20M),OResearching childton:ethicallisues*.In
adolescence:a majorchallenge for skincancer 08ridgingthe clivide. Promedngsof AM2WO
controlIn Australia",Medical Journal of Australia, Academyof MarieOngAnnualConference, Defby.
Vol.149,pp.622-3. Vall-Smilth,K. and Felts,M. (M). *Sunbathing: college
Martin.R.H.(1995),'Relationship between dskfactors, students'knowledge,atutudesandperceptions of
knowledge andpreventive behaviour relevant to dsk*.Joumil of AmericanCollegeHeitA Vol. 42
skincancer Ingeneral practice patientsIn South No. 1. pp. 214.
Australia*, BritishJournal of General Practice. Vitols.P.andDate%, K. (1997),OT#"ng childrenabout
Vol.4S,pp.36S-7. for adolewencelo,
Morris,J.andElwood, skin cancer prevention: why wait
M. (1996),OSun exposure Australianand NewZealandAximalof AAOC
modificationprogrammes andtheirevaluation: a
Heahk Vol. 21 No. 6. pp. 602-OS.
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International,
Vol.11No.4, pp.321-32. Weller, R. (1991), 07be epidemiology of malignant
National Cancer Institute(2000).Consumer Information melanoma: implications for Wth #Juc&Wn*. EU
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National ImUtute of pp. 3S-41.
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Nielsen/NetRatings(2000),InterutionalInternetUsage - Strp-by-Siep Guide,Sage,London.
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netratIngs,
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Plon,IA. (1996),'Educating children andparents about wwvn assodated with sun ap"t before 20
sunprotection', Dermatology Nursin;Vol.8 No.1, years of &go*. "Atrim Vol. 84. pp. 1"104,
pp.29-36. Wellar,0. (1999).'To targetmial-conuorers yournust
Prochaska.LO.andDIClemente, C.C.(1983). 'Stages and playtheir g&w*. MarketfngWeek21 October.
processes of self-change In smoking: towardan Wichstrom. L (19%), 7redictas of Norwegian
Integrativemodelof change,Journal of Clinical Wevent sunbathing and t6t of sun-saven.
andConsulting Psychology, Vol.S1,pp.390-5. Hejhh PotMAVy. Val. 13 No. S. pp. 412-20.
RO&S4 S.,Slals.LM.,Redding,
JI. CA andWeInstock. MA.
Wonnacott. L (2000), *How to make your site more User-
(199S),OPreventing skincancer throughbehaviour fiiendly and avoid mistaket that cost you vigtorso.
change*. Dermatoepidemlology. Vol.13No.3,
Intowodd, Vol. 22 No. 2S. p. St
pp.613-22.

218
 APPENDIX 1

Recognition of contribution to the field

Award letters

slournal front cover and conten(s pages

 RECOGNITION OF COATRIB UTION TO THE FIE-LD
(numbcrindicateswhich publication)

S. Peattic and Kj. Pcattic, 'Sales PromotioW. Chaptcr 18 in N1.Bakcr (cd), lba
Mukcting Book. 4th edition. Butterworth-11cinnmunn. May 1999 418-442
pp
(and Yd edition)

The Marketing book is the key

source bookfor the Chartered Institute of
Alarketing and 11 has over itsfour successful editions established itsey
.....
as one of the leading texts and references covering the Aeycontemporaly
issues in the subject. Used by
students andpractilioners all over the o4wrld,
the book gathers the insights of the UK's most important and Influential
Marketing thinkers. 11

2. K.J. Pcatticand S. Pcattie SalesPromotions:Playingto Win. JZMAIML

-'
Mark -ting Managcmgnt,9,3,1993, pp 255-269.

(Reprintedits 'SalesPromotion : Playing to 117n'.Chapter 7.3b0faureen

FitzGerald & DavidArnott (eds),Markefine CIOVICII Off-
international collection of clas,vic and confemporan,"alliarIf Butiness
.
Press: ThoinsonLearning, London, 2000.pp 4S6-469)
f
4. VU Pcatticand S. Pcattic 'Salespromotion:a missedopportunityror scr-ticcs
-
marketing?The InternationalJournalof Sca-kcs 6,1,
1995,pp 22-39.

(An early draft of this paper the Best Paper Prize at

was runner-upfor
Service Industries Research Management Unit Conference, 417ril1993o
Cardif 0.
.

5. S. Peatticand Ki. Pcattic financial with gliticring

-'Promoting serviccs
prizcs', The Intcrn.1tionalJournalof BankMakcting. 12,6.1994. pp. 19-29.
(Best Paper Award 199S

Reprintedit, j. 41eidan,A Lewis and L. Moutinho (eds),Hnanclol Sem-Ict-v

Aforketing,:A Reader TheDryden Press,London. 1997.pp 213-228.)
,

7. S.Pcattic-Tromotional Competitions WinningTechniquefor Wine

-A
Markcting', The Internation,
11 Journal
of WinchIA, cling, 7,3/4.1995 pp. 31-
47.

(Patrick Martell Best Paper A ward 199S)

 aA
"4-4MMOAKAPOO

LITERATI
*C LU Be
21 September 1995

Ms Sue Peattie
University of Glamorgan
Business School
Treforest
CF37 10L

Dear Ms PeatUe

AWARDSFOR EXCELLENCE1995
International Journal of Bank Marketing
Outstanding Paper
I am delighted to Inform you that you and your co-author. Ken Peattie, have been
nominatedto receive the above award for your paper PromotingFinancidl Son4cos
with Gfittefing Plizes, published In Volume 12, Number 0,1994 of the above
Journal.
A
Your paper was selected,by the Editor and Editorial Advisory Board from those
publishedIn the 1994 volume. The criteriafor outstandingpaper Include:

4 Reflectionof the Journal'spurpose,to ensurethe re3ders'noods am being mot

+ New and useful Informationwhich will benefit readers
4A presentationand style which allowseasy accessto conceptsand data
The awardsare presentedat a celebratoryluncheonwhich will be held on Tuesday,
5 Decemberat the LandmarkHotel, London (formerlythe Regent). Your Invitation
to the luncheonwill follow shortly.

Many congratulationson your achievementand I look forwardto meetingyou there.

Yours sincerely

JENNYPICKLES
LiteratiClub

cc ProfessorTrevorWatkins

65 Q Toller Lane.
C;q
t 111%,
ew-v

Bradford, West Yorkshire, England BDS 9BY Telephone (44) 1274 777700 Fax (44) 12,4 , SS200
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The Chartered
Irlst'Ue of Marketing

II-,
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111
Butterworth-Heinemann
LinacreHouse,JordanHill, Oxford OX28DP
225Wildwood Avenue,Woburn, MA 01801-2D41
A division of ReedEducationaland professionalPublishingLtd

A memberof the ReedElsevierplc group

First published1987
Reprinted1987,1990 (twice)
Secondedition, 1991
Reprinted1992,1993
Third edition, 1994
Reprinted1995,1997
Fourth edition 1999

0 MichaelBaker1999
0 of individual chaptersretainedby thecontributors

AU rights reserved.No part of this publicadon may bereproducedin

in
Anymaterialform (including photocopyingor storing any medium by
electronicmeansandwhetheror not transientlyor incidentally to some
'Otheruseof this publication)without thewritten permissionof the
copyright holderexceptIn accordancewith the provisions of the Copy right
Designsand PatentsAct 1988or under the termsof a licenceissuedby the
Copyright LicensingAgencyLtd, 90TottenhamCourt Road,London,
EnglandWIP 9HE.Applicationsfor thecopyright holder'swritten
be
Permissionto reproduceany part of this publicationshould addressed
to the publishers

British Library Cataloguingin Publication Data

A cataloguerecordfor this book is availablefrom theBritish Library
ISBN 0 755064114 2

Printedandboundin GreatBritain by TheBathPress,Bath

PLAWA
"TREEM
 Contents
illustrations Xv
-W
Liýf
oftables XiX
LLIcfconfributors Xxiii
to fhefourthedition Xxxiii
ý&tOne Organization and PlanningforMarketing
I One
more time -what is marketing?
14ý1 1. Baker

Introduction 3
Marketing as a managerial orientation 4
Marketing myopia 5
-a watershed 7
Life cycles and evolution
Marketing misunderstood 8
7he marketing function 9
Relationship marketing 10
Summary 14
References 14
Further reading 15

'Me basics 16
of marketing strategy
A,DbinWensley
Strategy: from formulation to implementation 16
7he nature of the competitive market environment 18
Codification of marketing strategy analysis as three strategies, four boxes and five forces 20
7he search for theory: for diversity 23
rules success amidst
Models of competition: 25
game theory versus evolutionary ecology 29
Characterizing marketing strategy in terms of differentiation in time and space
Researchin marketing fallacies of free lunches and the nature of answerable
strategy: 34
researchquestions
7he recourse to processes,people and purpose in marketing as well as strategy as a whole 39
Rumelt's observations the Honda debate three explanations: economics,
on - 43
adaptability and intention
Conclusions: the limits 44
of relevance and the problems of application 45
Rtferences
 Contents

3 Strategicmarketing planning: theory and practice so

MalcolmMcDonald
Summary so
Introduction so
1 Themarketing planning process 51
2 Guidelinesfor effectivemarketing planning 62
3 Barriersto marketing planning 70
Summary 76
References 77
Furtherreading 77

PartTwo 71e Framework ofMarkrting 79

4 Environmental scanning N
DouglasBrownlie
81
Introduction
84
What environmental scanning can accomplish
Defining the environment 85
State of the environmental scanning art 91
Scanning procedures and problems 96
Conclusion 104
References 105
Further reading 107

Consumerdecision making: process,involvement and style 109

GordonR.Foxall
109
Introduction
Theconsumerdecisionprocess ill
Levelsof consumerinvolvement 115
Consumers'decisionstyles 117
Implicationsfor marketing 122
Summaryand conclusion 127
References 128
Further reading 129

6 Business-to-business marketing: organizational buying behaviour, relationship$

231
and networks
PeterW. Turnbull
Introduction 131
133
The realities of business markets
Organizational buying structures 133
140
Models of organizational buying behaviour
Conclusion ISO
References ISO
Further reading 152
 Vil
:Wtva
154
Marketing research
JohnWebb
154
Introduction 155
Definitions of the role of marketing research 156
Typesof research 157
The processof marketingresearch 158
Secondarydata 159
Quantitative primary data 162
Questionnairesand their design 162
Qualitative primary data 166
The researchprocessand measurement 168
The measurementof attitudes 171
Sampling 174
Analysisof the results 176*
Presentationof the final report 176
Conclusion 176
References
178
Quantitative methodsin marketing
ArthurMeidanandLuiz Moutinho 178
Introduction 181
Multivariate methods 168
Regressionand forecastingtechniques 195
Statisticaldecisiontheory or stochasticmethods 196
Deterministicoperationalresearchmethods 200
Causalmodels 202
Hybrid models 205
Network programmingmodels 206
Conclusion 21.06
References 208
Furtherreading
1109
Market segmentation
MArtin Evans
209
Chapterobjectives
Introduction 11.109
210
Productdifferentiation to market segmentation 211
Segmentationcriteria 212
Basesfor segmentation 234
Conclusions 234
References 2M
Further reading
viii Contents

10 The evolution and useof communication and Information technologyIn marketing

KeithFletcher
Introduction
CIT and marketing
CIT's challengeto marketing
Evolution of CIT in marketing
CIT and marketingstrategy
Industry-levelimpact of CIT
Firm-levelimpact of CIT
Strategy-levelimpact of CIT
Businessprocessredesignand marketing
Conclusion:marketing'srole in the future
References
11 Developing marketing information capabilities
NigelF. PiercyandMartin Evans
Introduction
Marketing asan information function
From competenceto capabilitiesin marketing information systems
Market sensing
Testinginformation priorities
Managingthe marketsensingprocess
Information asa marketing panacea?
Relationshipmarketing and the information revolution in marketing
A developmentprocessfor the marketinginformation system
Designingthe marketing information system
Implementationand review
Conclusionsand a new managementagenda
References
Furtherreading

Part77t"e AfanagingtlielVfarketingFunctiOI8
12 Managing the marketing mix
PeterDoyle
Introduction
Selectionof targetmarkets
Developingthe marketing mix
Four key marketingprinciples
Key analysesfor developingmarketingstrategy
Marketing-n-dxdecisions
Conclusion
References
Furtherreading
 LX

314
New product development
SusanHart
314
Introduction 314
7he process of developing new products 315
The stages of the new product development process 321
Usefulness of models 327
The multiple convergent approach 330
Managing the people in NPD 334
Conclusion 334
References
337
Pricing
Adamantios;Diamantopoulos
337
Introduction 339
Is price really that important? 340
7he drivers of profit: price, volume and cost 343
Price from the customer's perspective 345
Understanding price sensitivity 350
Conclusion 350
References
353
Selling and sales management
Bill Donaldson
353
Introduction 353
7he changing role of salespeople 355
7he costs of personal selling 356
What we expect salespeople to do - the salesprocess 358
Salesmanagement issues 362
Conclusion 362
References 363
Further reading
364
Branding
PeterDoyle
364
Introduction 364
7he successful brand 365
How brands work 366
7he value of a successfulbrand 370
The creation of successfulbrands 373
Buying brands versus building brands 376
Brand-extension strategies 377
Conclusion 377
References 378
Further reading
 Contents

17 Promotion
KeithCrosier
Introduction
Defining thepromotional mix
Above,below and through the line
The promotional budget
Deploying the promotional mix
Developingthe promotional message
Delivering the promotional message
The medium and the message
Interactionswithin the marketing mix
Thepromotional plan
Working relationships
Choosinga working partner
Remuneration
Assessingcampaigneffectiveness
The contextof promotional practice
References
IS Salespromotion
SueandKenPeattie
Introduction
Salespromotion defined
Understanding salespromotion- a tale of price and prejudice
Salespromotion and advertising- the line and the pendulum
The growing importance of salespromotion
Consumers and salespromotion
Communicating through salespromotions
Building relationships through promotions
Salespromotion's role in the marketing mix
Salespromotions - the most manageableP?
Salespromotions mismanagement
The future of salespromotion
Summary - the changing concept of salespromotion
References
Further reading

19 Customer service and logistics strategy

hUrtin Christopher
Introduction
The declineof thebrand
Developinga customerfranchise
The impact of superiorsupply chainperformance
Broadeningtheconceptof customerservice
Time-basedcompetition
Competingthroughcapabilities
 X1
nn=
451
Developinga market-driven logisticsstrategy 453
Changingthe marketing focus 453
References 453
Furtherreading
455
Controlling marketing
Krith ward
455
Overview 456
Introduction 458
" market-focusedmission 460
" sustainablecompetitiveadvantage 462
Investingin developinga sustainablecompetitiveadvantage 464
Marketing assets:developmentand maintenanceexpenditures 465
Financialplanning andcontrol process 470
Brand-ledstrategies 4773
Customer-ledstrategies 475
Product-basedstrategies 478
Organizationalstructures:marketingfinancemanagers 478
Conclusion 479
Furtherreading
strategy 460
Marketing implementation, organizational changeand Internal marketing
NigelF.Piercy
460
Introduction 462
Organizationalstretchand implementationcapabilities 464
Theorganizationalpositioning of marketing 490
Identifying implementationproblemsin rn3rketing 494
Implementationbarriersin marketing 496
Marketingimplementationand Internal marketingstrategy rN
Conclusions
References S07
Furtherreading
509
P'"IrOuF TheApplication
ofMarketing
511
22 Organizational
marketing
DaleLittler
511
Introduction 512
Organizationalproductsand services 513
Organizationalmarkets 514
Featuresof organizationalmarkets 516
Demandfor organizationalproductsand services 517
NOn-pricefactorsaffectingdemand 516
Other aspectsof demand 518
Procurement 519
Managementimplications
xil Content

References
Further reading
23 International marketing -the Issues
StanleyI. Paliwoda
Overview
Why market abroad?
Internationalmarketing-the quintessentialdifferences
Effectsof culture
Segmentation
Situationalanalysis
Market researchcompriseshard and soft facts
Classifyingand mftiin-dzingrisk
Now backto the simplistic Vs
Operationalizationof international marketing
Continuing and future challenges
Conclusions
References
Further reading
Useful internationalmarketingweb sites
24 Marketing for non-profit organizations
Keith Blois
Introduction
What is a non-profit organization?
Managerialimplicationsof beinga non-profit organization
Marketing activitiesof non-profit organizations
Non-profit organizationsasbarriersor faciNtators?
Is a marketingperspectiveof any othervalue in non-profit organizations?
Conclusions
References
Further reading
25 Social marketing
Lynn MacFadyen,Martine Steadand GerardHastings
Introduction
Why do socialmarketing?
'Thedevelopmentof socialmarketing
Defining socialmarketing
Departuresfrom commercialmarketing
Segmentationin socialmarketing
The socialmarketingmix
Conclusion
References
Further reading
Websites
 X01

593
26 Green marketing
KenPeattieand Martin Charter
593
Introduction 593
Green marketing in context 595
Reconceptualizing the marketing enviroranent 600
The greening of marketing strategy 601
Competitive advantage and the environment 602
The green consumer 603
Eco-performance 604
Going green - the philosophical challenge 607
Going green - the management challenge 608
in
Towards holism -broadening the scope of marketing practice (109
New marketing information challenges 610
Changing the marketing time frame 610
The practical challenge - greening the marketing mix 614
The future of green marketing 617
References 619
Further reading
621
'217?%Urketing for small-to-medium enterprises
David Carson
621
Introduction 622
Characteristics of SMEs 623
Characteristics of entrepreneurs/owners/ managers 624
Incompatibility of marketing theory to SMEs, 625
Nature of SME marketing 628
SME marketing based on strengths 637
Conclusion: a model of SME marketing 637
Acknowledgements 6,37
References 638
Further reading
639
28 Retalling
Pderl. McGoldrick
639
Introduction 640
Evolution of retailing 641
Types of retail organization 645
Major retail formats 648
Retailing strategy 655
Retail functions 663
Internationalization of
retailing 663
Non-store retailing
667
References
x1v Content

29 The marketing of services

Adrian Palmer
Introduction
7be importanceof servicesto national econon-des
What areservices?
Are servicesreally a distinctive field for marketing?
Classifýdngservices
An extendedmarketing mix for services
Managingthe marketing effort
Summary
References
Further reading
30 The Internet: the direct route to growth and development
JimHamillandSeanEnnis
Introduction
TheInternet:a challengeto conventionalmarketing wisdom
TheInternet:a new channelopportunity
Casestudy: Dell Computer Corporation
Conclusions
References

Index
4, `ýZe
N 9
3 Editorial Af"Adl- AtAo 21.4.
1993
71e scopeof internal muketing.- defining the AIA, "RftdP-v4 21S
0267
2S7X bound.iry betweenm2rketing and human resource ofti
management hftý 9 AAMd
Businessorient2tion: cUcb6or subs=cc? C-JM I P"Mvm 23i
Gaining 2 mairketingad%-antagethrou; h the strategic XdA triml 24.1
46J.,
use of =wfcr pricing
2S7)ci Salespromorion-pb)ring to %rin? Kin pusis ded
ClSS307)3:
3: 1-0 swo PAMW

Salespromotion competitions-& survey $beP"me&ftd 27.

r. dR P"Au

in thebelith senice
S=tcgy =11)-Sis JVdJltlm-ýr dnd 237
Tov proao
Charity affinity credit cards-marketing s)T.". SMto'row-0.4 30,
for both card issuers and charities?

cmdnued on ouzrý.146,uh cot.,r

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Academic Press
Harcourt Bruce & Companyt Publishers
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AL 3S201 12.USA 1994 Awards for Excellence

M 6P4931 (USA
toLINr) and
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Service expectations: the consumer versus
11111ý4 Far
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the provider
Amy 9 Hubbert,AnnetteCan* Schorn
'ALIX Bukit Da=nsara.
Malaysia.
'126
and SteplwnIV Brow:

1%4 Sales promotion -a missed opportunity

ý'-rq Prfts Limited for services marketers?
ý buadilll No.2
$ft. o.bur,kyo.kU andSuehattie
KenPeattie 22
;2lia'Um
OW) 033817-,M
2 3t17-#365 Internal marketing: a review and some
"ý0' 2065-05M
interdisciplinary research challenges
a
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Richardl. 40
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and missing
10 00 C41,90mar Help
Designing services: an information.
("1 1274 482097
processing approach
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Samuel
WathenandlolmC Anderson
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 ISSN0265-2323

The International Journal of

BANK
ARKETI

12
Holume 6
Number 1994

/I
'MCB
WernationalJournalof ISSM02W2323

11ank
Marketeing COIMHTS
Volume12Number61M

Absfroctsand Keywords 2

lFinance for Smalland Medium-sizedEnterprises:information and t1w Income

GearingChallenge 3
Practiceandcultureneedto changeif lendingbasedon incomegearingis to become
a
reality.
pamelaEduardsandAter TVnrnbul

Developingan Instrumentto MeasureCustomerServiceQualityIn

10
BranchBanking
Customerservicequality is expectedto bea majordeterminantof branchbinking
Performance
andpotential.
NtcmiKtinal A rkin:n

Promoting lFinancialServicesWith Glittering Prizes 19

Therearesomesalespromotionstoolswhichofferconsiderable for 'ti Ve
opportunities effeL
marketingconununications.
Suehattit andKm Poralu

CreditCardDevelopmentStrategiesfor the YouthMarkeb Tits U" of Co"W"t

Analysis 30
Collegestudentsasan importantpartof theyouthmarketoffergreatopportunitiesfor
creditcardcompanies.
Ali Kara, Erdmtr Kq)7mkand OrsgyKuMernirvglu
 40

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 1tJIII1
VOLUME 17 NUMBER 6 SEPTEMBER 1996

-t:rtnt issues 397 Blowing the whistle on tourism referees

A VSeaton

401 From museum to mental massage: a response to Tony Walter

Stephen Clews
&Vers
405 Tourism policy: a midsummernight's dream?
Eduardo Fayos-Sold

413 Tourist organizationsin Sweden

Douglas G Pearce

425 International tourism in Kenya and the marginalizationof the Waswahili

IsaacSindiga

433 Promotional competitions: a winning tool for tourism marketing

Ken Peattieand SuePeattie

443 Mobility and structurein the career pathsof UK hotel managers:a Iabourmarket
hybrid of the bureaucraticmodel?
Adele Ladkin and AlichaelRiley

453 Air transport servicesand the expansionof international tourism in 7-imbabwe

BJ Turton and C CVutambirwa
'Aports
463 Technologyand changein tourism Gilbert A rchdale;Developingguidelinesfor
Arctic tourism PeterAfason
ý,
50kreviews 467 Health and the International Tourist StephenCtift andStephenJ Page(JaneLutz);
SustainableTourism: An Australian PerspectiveR Harris and N Leiper
(Ralf Buckley); Tourism EconomicsDE Lundberg. 3t 11Stavengaand
Af Krishnamoorthy(Graeme Evans)

471 Publicationsreceived

473 Calendar

ContentsDirectdeliver%the tableof contentsof thisjournal. by e-mail. approximatelyNo to (out

weeksprior to eachIssue'spublication.To subscribeto this free servicecorn;4ett andreturn the form At
the backof this Issue,or sendan e-mail messaleto p.orfordjcIbC%icr.CO.uk

Ws journal Is libled In Traveland Tourismindex. Utsure. Recreanomand

rowumAbilwa. co"Notapig"
Management'GeographicalAbstreca.Hionan GrojlWhy. MW8, bbefoalOW
Towistique
MARK-ETING--

I 't\

MCU //
 ISSN0954-7541
International Journal of Wine Vol=e 7
Marketing N=bcr 3/4
1995

CONTENTS
Editor - Mchael Howley

Editorial 3

FrenchVarietals Fight Back: The Revolution In the

VindePayD'Oc
JerenwLee William 5

14cating Information Gaps in the Personal

Selling of Wine
AL-sGenevieveN. Bond-Mendel
14
andDrAntonis C Simindras

Promotional Competitions -A Winning Technique for

Wine Marketing
SuePeattie 31

New Product Development - The Alcoholic Soft

Drink Market
PaulDavie 49
 I
Il
',
 ISSN0007-07OX
British Food Journal
Volume 100, Number 6,1998

This Issue Is Paper format Internet Onllno Publishing CD-ROMArchive with Site
part of a
Comprehensive with Archlv* and Site Licence Uc*nco
t4ultiple access
IfIfOrmation 0 0 0
service
comprising:

British FbodJournal is Articles. %ithin this Issueare A searchableCD.ROM

published 11times a year in also published online at conuining archive material
traditional paper format The http: //www. mcb.co. uk/bq. from 3989to dste (where
contents of this issue are htm avallable) Is provided with
detailed below. this Journal. A site licence
along with archive material also provides multiple
from 1989to date (where &vall.
simultaneous user access
able).A site licence provides to journal pageson CD-ROM
multiple simultaneous user
accessto the Internet pagesof
thisjournal.
ft

Contents 270 Abstracts& keywords 302 UK food law news

271 Editorial 304 EU food law news

272 Awards for Excellence 307 Intemot rovltw

Edited by Stopftn Farlows
273 Health and the demand for food In
Scotland: economic and demographic
effects
DavidD. Mainland

278 Innovations and Information

management In the food Industry
PaulSerglusKoku

286 Promotional competitions as a

marketing tool In food retailing
SuePeattle

295 Changes In tastes In Britain,

1985-1992
Mark Tomlinson
vo
I'Me 13
"rnber i, i It()[ III \j,.

8
ISSN 1997 Key account management: theory, practice and Mazwim 737
0267-257X AfcDmsald,
challenges
AflUsum aftd Pwtk
ROren

Buyer/supplier partnenng in bntish industry the Ros, Rpwnnam 759

,jutornotive and telecommunications sector-,

Promotional competitions as a strategic marketing Km Ivaim, ssm 777

Po4aw and E. B.
weapon
Fm, Vo

The adoption of direct banking services And- LocAou and 791

Dak L.4akr

conrinued on ouuuie back cover

P=%
47 The Dryden Press
London Jýort Worth Nevv ýork Toronto Montreal Svdiiev

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I IIII I" I( -Lf III
I. If I( IIk%ItIIIII.. (II. w, .I(.
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 journal of marketing management

continuedfromfront cover

Do demographics have an impact on country of A44 Sewir 813

origin effects?
Effects of performance appraisal systems on t7asis 835
marketing managers swukopomlos
Researchnote: a cost-benefit analysis of letter V-IV Afiuhdan,( 853
prenotification and follow-up
About the authors 867

Acknowledgements 871

Index i

SGML Captured,lma$eset printed and

,Old
boundby Unwin Brothers, Woking,
me...berof Martins Printing Group
 VOLUME V/Nt.. AlP)I--'RI
NIAKI( '11 1999

SOCTi Al-. MARKFTIN(

,
 4 Social Afaiketing Quarierly / Surnmer 199S

SOCIAL MARKETING
to-%
YUARTERLY
Fou; ided illApril 1994

LPITOR: ('O-I-. 'I)IIOR. - MA. %A(l1%G 1-011OR

( srul A. Bryant. Ph. D. I'f fall" NI.- It'll, It--
Ass,, ciatc Projes%, V: "Ic"w
I)CIII (if CoMill & hunily licafth I)cpt, oI ctiolm & UiumlN Jira! O;
PllhhL I College of Public 111CAlth

,I S-10, I 'nivenitv of South Honda Iffillis

PI TLISHER: if.
Janie% Linden1wi-ger I %r, :I ir, Im IACII SWW

1-.
A SS0 CIA 711.. .V/] .IMS:
%Ijir%ba Durham. Hrd Fridingri. (. vr-nrd Ilablisig%. Ph. D.
I'lit'll, licalill I '11;'ý.Ilw I li: m i, r- Cm: ir f, v. %,k: al
C)Ilcf Executive ( )ff . Cciarrs for 1h)-rabc ontn,: liarkrung
Icer
lJnjvcr%, tN. GA Slrxrlx-Jvdr I Iniveram
If We-,qrrn Sydnev Atlan[A.
.. Cilasgou, 'ýc Wsr.,!
-N.cPcati. Au%tialia

Fliz. abeth 1140"'IC,SC-1). Micharl Ripth%rhild. M. D. It. Crimis I efcb% tv. PILD.
ALLoL DII foi I Icalth Nomotion scluml o! lil; %Itlr%l ( lurf Irt hnst a; Offi4rt
UrnIrts fol wiskomm llt, v&pmi A tm-. istrs
A:, ant, (iA KglLk%lllc. MI)

RObert Nit'DirrTnott, M. D. Beverly Schwarts. lull Smith, FA.D.

( 11211111311 Dirri. tilt. Social Mukeuns
I-Am u: i%c %'Ke Ptria. srtýi

I)Cpt of ('0111111&. I-Jill 11calth A,.,, Illllv f1w i.,ducational Ac&dcmý for I-,duc&wona;
C011cge of 11uhlic I frulth Dc% I*vclopmcnt
Untvcr%itv Ion, I X,
%ka,11111F. Wa%NnItiwý IX'
,Is, )uj)j j. j, "j, IA
arlipa.

EDITORIALREVIE0 BOARD:
PlivAlwth Ann kavsckvý MI'll, Int Insualsw
Alan Andirrasen. Ili 1). (;
ctny.clown UmvctwN - AlD%
FAalnr Itratic Arkin. Consulmm ý r-rd IN rolIft. i'l II, ( trb for thuMN & Mvvengka
Grof-Ite 1. RuIch. Iffy %I oolt. (WI ý ',,.%'I H 111
Ili 1) of 111,11,11b
Univetwify
,
( 'ynthim ('urrrncr. American ('jtrwrr SoCANY kat I -oghrrt, Antrn, 4n Asbaclawn of ke"m4 Powms
%Imrý Jii DrcrjjiK, pt, 1) I)rpt of 11calth & Human Sr-Ni, cs likilliarry %atrIll. ('stolmita for 'Tati&x" I-fvr K14a
Roberl ". Denniston. . John Ruchdrechrl. MD. It Ise MoMn ( mbLrt Comm
MA. (*cntv ft)t Suh%tAmc Ahusc
%toll Malwan. 101) MPA. Joumal of 111calth Cortirriumcabcm
Sirod. fat Soctlll Motirlint %traft ]"it
kutwrt th-ovall. Ph 1) University Westan Australia %larline ( entyr
. of I
Julie Horm. Ph 1) Sumford Unive'istly lljýrlull

Marvin (-oldberit. . Ph 1) PennsylvaniA Univeryo1v

Stalc Sha rý n %I Sullan. 11h1) . Sultcm ý. -, imil Ntm kr-) riS
%ficharl Illmd, Urny"inty hill M 1) t'ntvmtty of Mianrb,, 4&
JMA. of South Monda .
R(Ptw II ornick. In,
It I 1h D. I Inivrix IIv of 14cnn% vI vi, 111.1 Vric lotang. I)I
Philip Kio(Jer. Ph 1) Norlimewin Univrimiv
.

loubli.viled
Bew Start Sorial AfarkrfinK, 15(H)l- F*Irtcher As-r., ImUr ý19.74mpa. FI 1361.1
. Health. College Public Health.
and the Deparlmrnt of Ctomnsuniiv &. FamilY of
Univen-itv o Sjolith Florida. lampa. Fl.
_f
Ais publu wilt )11JAAlippolled undrf I( oopel'itil r dl.i:14rrr?1rn1Offm thr
( 'ertlers. for Oiseasr ( 'ontrol arui /Irrvention through thr
Associtition (If Schwtv of Public 11ralik

iI
 SOCIALMARKETING
Vý )IJ AIIV!,,, I, NI I',1 1" 1 ýl ýI\( i11), ),)

GU IDELINES AND PU BL ISII ER'S NOTES

Guidelines for Authors, page 2
Guidelines, Training Initiatives, page 3
Publisher's Notes, page 4
Welcome New Board Members, page 6
Reviewers Acknowledged, page 9

NOTES FROM THE FIELD

Social Marketing Where There is No Product.
BY BILL SMITH

SHOPTALK 14
News, Notes & Embethshments
BY BEVERLYSCHWARTZ

TRAINING lNlTlATl\, 'ES 10

GeneratingFamity-School Thiough
Partnerships
PFER
So(i.il M,
itketinq
BY SYLVIASENSIPER I Rfv,
Ew,
D
APPLICATIONS 22
.....
The Use of Sales Promotion Competitions in Social Marketing, page 22
'RIVI
BY SUE PEATTIE EWED

Marketing Enlightened Self-Interest:

A Mode[ of Individual and Community-Oriented Motivations, page 34
BY BEN TYSONAND ROBIN COULTER

lioOK REVIE\\ 7i0

Heatth Communications: Lessons from Family Planning & Reprodu'-tive Heatth
BY REBECCAJ. CLINE

SOCIAL MARKETING RES0['R(A'-S

Selected Social Mai ket, ny Related Ah,,tm( t,,, Int(, mot Rev-mr((-,
-
LOOKING AHEAD (12
Job Notices, Upcomirlq Coilfereilceý,uld f duý 'tlollýil Ott"Ill"I"

CONFERENCE ABSTRACTS 08
Shortened Versions of AhstrdCtSPrt`,ellted DUMU]010
Florida College of Public Health's Eighth Annual SOCidl Marketing in Public
Health Conference, June 1998
 APPENDIX 2

Breakdown of contribution byjauthor for joint-papers

 BREAKDOWN OF CONTRIBUTION TO ARTIMES
BY AUTHOR

PUBLICATION #I
S. Peattle and 1U. Peattle, 'Sales Pronio(lon'. Chapter 18 fit 51- Haker(ed), lbs
Marketing Book. 4tli edition. llulter%vorili-liciiiiiciii. inn. Nfay 1999 pl) 418-442

SUE PEATTIE KEN PEATTIE

Critical appraisal of previous work 55 43
Design & methodology NIA
Conduct of rcsearch N/A
LAnalysis o outcomc N/A
Thcorctical analysis &c nclusions 50 50

PUBLICATION #2
KJ. Ileatfle and S. Peatfle-'Sales Promotlons: Playing to WIII'. .1()"rnnl n
Marketing 9,3,1993, lip 255-269.

SUE 11FAME KEN lll. *ATrll*

Critical appraisal of previous work 50 50
Design & methodology NIA
Conduct of rcscarch NIA
LAnalysis o outconic NIA
I Th-c-orctical 40 (10
analysis & conclusions

PUBLICATION #3
S. Peattle and K. J. 11cattle- 'SuIcs promotion coilipcilt Ions: a sur%cyl. .1011mal0
MarketIng, Ninnigement, 9,3,1993t pp 271-286.

SUE 111'
ATTIE KEN ITATTIE
Critical appraisal orprcvious work so it)
Dcsign & methodology so 20
Conduct of research 100 0
LAnalnis o outcomc so 20
[Ticorctical*analysis & conclusions 40 oo
 PUBLICATION #4
K.J. Peattle and S. Peattle 'Sales promotion: a missedopportunity for services
-
marketing? The International jotirmil of Services 6, It
19959pl) 22-39.

SUE PEATTIE KEN PEATTIE

Critical appraisalof previouswork 40 60
Design& methodology 80 20
Conductof research 100 0
Analysiso outcome so 20
Theoreticalanalysis& conclusions 35 65

PUBLICATION #5
S. Peattie and KU Peattle - 'Promoting financial services with gliffering I)rlzcs"
The Internaflonil. fournni of 11ankAf arkedno, 12,6,1994, pp. 19-29.

SUE PEATTIE KEN PEAMIS

Critical appraisal of previous work 40 60
Design & methodology so 11
.0
Conductof research too 0
Analysis of outcome 1 so 1 I j
.0 ::
[Theorctical analysis& conclusions 35 63
--I -

PUBLICATION N6
K. J. Peattle and S. 11cattle- 'Promotional Competillons -A WInning Tool for
TourlsmNlarketing', Toiirlitti-iNtnti. it! etitetit, 17,6,1996,1)1). 433422.

SUE PEATTIE KEN PEATTIE

Critical appraisal of prcvious work 40 00
Dcsitzn & mcthodology so 20
Conduct of rcscarch 100 0
I Analysis o outcomc so 20
LTheorctical analysis & 35 63
conclusions
 PU13LICATION #9
KJ. Peattle,S. Peattie and E.B. Ernafo, 'Promotional Competitionsas a StrategIc
Marketing Weapon' jou rn nI of Marketing NInnnaernent.13,8,1997,pp. 777-789.

SUE PEAME KEN PEATTIE

Critical appraisalof previouswork 50 50
Design& mcthodology 50 50
Conductof rescarch so 50
Analysisof outcome so 20
Thcoretical-analysis& conclusions 30 70
Mr E.B. Ernnfo was responsiblesolclv for the data ct)llcctlOllfor thli article

I conrjrm that this Breakdown of Contribution to each Article byAutllor Is fair

and correct.

/Zcoo
00 77Eýýýý .... I. fl.......... ss....... fl..

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 Cardiff Business School Ca*" U"NW$ft
Director ProfessorRogerMansfieldMA PhO
cowm omwo
ctmiftcgtUlu
Wo*§ UK
Marketing and Strategy SectIon
Tod "ýMO)L222 Vd=
Headof SectionProfessorNigelF PlercySAMAPhDDipMFC;
M rot -"0)u22 814419
SirJulianHodgeChairIn MarketingandStrategy

30 th November1998

To WhomIt May Concem,

Re: Articlespublishediointly with SuePull

hich I have shared

I would like to confirm that in the various publications in %,.,
authorship with Sue Peattie, her contribution was at least 50 %.

In the caseof the article written by myself,SueandE.B. Emafo,therelative

contributionswould probablyequateto myself- 40 %, SuePeattie- 40 % andMr.
Emafo- 20 %. Mr. Emafo'scontributionwasmerelydatacollectionwithin this
Project.Suewasresponsiblefor thedataanalysisandthe discussionof methodology,
for
and sharedwith me responsibility the literaturereview. the development
conceptual
andfor steeringthe articlethroughthe reviewprocess.

We areunableto contactMr. Emarofor him to provideconrimution. fie wasan NIDA

studentat Cardiff BusinessSchool.andthe datathat hegatheredw3spart of a
I
researchprojectwhich supervised. Uler the publication of the article I ttied to
contacthim in ordcr to sendhim a copy of the publishedjoumal. My letter was
returnedundelivered from the last London addressthat I had for him.and I do not
havean alternativecurrentaddressto try. From my last conversation%kithhim I
he to
understandthat wasabout embark on an NISccourse somewhere in the LK. but
I haveno ideahow he couldbe contacted.However.as his rormersuperNisorI C-3n
confirmthat he wasnot involvedin the writing of thisarticle beyondcollectingdat3for
it.

If furtherinformationis required,I would be h3ppyto pro%ideit,

Yours faithfbily,

Ken Peattie,
SeniorLecturerin StrategicManagement

4 '*'M
p'I _. l,, " t«*
" t, 4t44I 4$ V
V
 APPENDIX 3

Publication #9

Questionnaire and covering letter to-sponsor.; or

conmelitions
 0

CARDIFFBUSINESSSCHOOL vp Cardtff lluxinets Sch(Kil

Director Atxrcenway Duilding
Professor Roger Mansfield MA PhD Cielum Drive
c4"Iff CF 1 3EU
UNIVERSITY OF WALES 1:.ix (0 1222) 974419 Um 41b635
MarketingandStrategySection CARDIFF
HeadOfSectionProfessor
Nigel PiercyBAMAMDDipMFCINI Tel (0 11222)
974WO

4 th June 1994

DearRecipient,

The questionnairewhich accompaniesthis letter is part of an MBA ResearchProjectbeing

conductedat Cardiff BusinessSchool,and wc would be very grateful if you would be able to
completeandrctum it in the prc-paidenvelopeprovided.

This particularresearchprojcc4 beingconductedby Mr. E.B. Emaro.aims to explorethe

perceptionsof marketingmanagersaboutpromotionalcompetitionsand their role %vithinthe
marketingmix. The questionnaireis beingsentto brandmanaScrsresponsibleror leadingbrandsin
the packagedfoods,drinks and personalcaremarketsthat havesponsoreda promotional
competitionduring the last twelve months.
All MBA students at Cardiff BusinessSchool are required to complete a piece of origin-if research
for their dissertation if they are to complete the course. Naturally this means that our students are
Very reliant on the goodwill of companies in supporting their research,and I'm pleasedto say that
companies have generally been very supportivc of our past cfforts to train future generationsor
managersand conduct researchinto issueswhich will generate new managementknowledge. We
would therefore be very grateful if you were able to spare a few minutes to complete and return the
questionnaire and support Mr. Emaro's research.

CanI just reassureyou that :

This is a bonafide studentresearchproject,andif you requireany furtherconfirm3tionor
this. or would like and further inrormation,pleasedo not hesitateto contactat me tit the
aboveaddressof on 0 1222875699.
The questionnairehasbeendesignedand pre-testedto be simpleandquick to complete;
All information that is gatheredfrom this researchexercise%villbe treatedConfidentially.
Resultswill be presentedin termsof aggregatequantitativedata,andany quoutions that arc
usedfrom the commentsof respondents %villnot idcn6ry the rcspondentor their company.
Thankyouverymuchfor considering
thisrequest,
Yours faithfully.

KenPeattie,
Lecturerin StrategicManagement,
CardiffBusiness
School.

Universi(yof WaIcsCollcge Cardiff

 RES EARCH--OUESTIONNAIRE: COMPETITIONS AS A SALES PROMOTTON TOOILL

How important were the following objectives in planning the competition ?

Please enter a score of between 1 and 5 in the boxes providadl where -

1- no importance, 2- low importance, 3- moderate importance,

4- considerable importance, and 5- critical importance.

Tactical Objectives - strategic Objective -

reased sales during competition Lasting market share growth

Mulating product trial Repositioning of brand

othing seasonal demand Increased consumer awareness

ducing the impact of a rival's Encourage the switching of

les promotion activities consumers away from rivals

Y other at least moderately important objectives (please specify)

What were the principle reasons for using a competition to promote this
brand 7

How was the evaluatod ? (Plaaaa tick an

effectiveness of the competition
appropriate in the boxes providod)

a. By monitoring sales figures

(If yes, over how many montho ? 1-1)

b. By counting the number of competition entries

c. The usefulness of returned information

Other (please specify)-

 Please indicate the job title or role of the parson within the company
who was principally responsible -
a. Deciding to use a promotional competition
b. Setting the competition objectives
C. Overseeing competition design and implementation
d. Evaluating the competition's effectiveness

Which of the following statements would accurately describe your

competition ? (Please tick appropriate statements in the box provided)

a. It was pretested 1-1

b. During development it was explicitly chocked against tha
Institute of Sales Promotions code of practice
C. It was linked to a broader marketing communicationa
campaign including abovo-the-lino advertising
d. It was supported by an in-stora display

0. It generated useful and usable information about connumara

f. It provided useful PR opportunities

9. It was backed up by sales promotion insuranco

h. The prizes were provided free of chargo by anothar company

i.

How effective do you think the compotition waa in ralation to tho

following ? please score betwean 1 (for ineffactiva) and 5 (for
completely effective) -
a. Achieving its objectives
b. Gaining support from intermadiaries and tho galooforca

c. Reinforcing the brand image and valucs

d.

In relation to competitions as a means of promoting this brand -

How often are they used (every x months or yearn)

Approximately what proportion of the brand's
marketing communications budget do they consume

Would you use a competition again in future