Price, product, promotion and place (4Ps): competitions.

The idea

Competitions are a promotional tactic where customers enter for a chance to win a prize, often by purchasing a product, sharing details or creating content. They sit within the promotion element of the marketing mix. For example, a soft drinks brand might run a competition to win a holiday, with entry via a code on the bottle. This can raise awareness, increase engagement and generate customer data. Competitions can be low-cost relative to mass advertising and can create social media buzz. However, they may attract entrants who are only interested in the prize, not the product, and they require clear terms and legal compliance. When analysing, consider whether the competition builds long-term brand loyalty or just short-term attention.

What earns the marks

• Defines competitions as a promotional method where customers enter for a chance to win a prize.
• Links competitions to the promotion element of the marketing mix and to awareness or engagement objectives.
• Explains how competitions can increase brand awareness, customer engagement or data collection.
• Analyses the cost-effectiveness of competitions compared with other promotional methods.
• Evaluates the risk of attracting prize-focused entrants rather than genuine customers.

Common mistakes and how to put them right

• Confusing competitions with coupons.

  Put it right: Competitions offer a chance to win a prize, while coupons give a guaranteed discount.

• Ignoring legal and ethical requirements.

  Put it right: Competitions must comply with advertising and data protection rules, and terms should be clear.

• Assuming all entrants become customers.

  Put it right: Many may enter only for the prize, so the business should measure conversion or repeat purchase.

Exam tips

• When analysing, link the competition to a specific promotional objective such as increasing social media followers or collecting email addresses.
• Use a real or hypothetical example to show how a competition can generate engagement, for instance a photo contest with a hashtag.
• In evaluation, consider whether the competition attracts the target market and whether the prize cost is justified by the promotional benefit.