In which case lottery is applicable as a product/service promotion tool? There are several cases when the lottery might be useful indeed.
But let’s talk about the product cycle first. Any good or service can be at different levels of a product cycle, which speaking shortly includes an early stage (only the early adopters are starting to buy it), when the product is unknown or known by a little share of the market, a stage, when it is known on the market (the developing stage), and a late, mature stage, when everyone is familiar with it.
In each case the implementation of a lottery as a tool might have different effects and should be organised taking into account different marketing strategies.
In the first case the lottery would attract more potential clients. It is important to understand that the marketing campaign it is incorporated in should be formulated in way to present the qualities of a new product and it should also have a clear message, explaining why one should choose exactly this product or service, e.g. not the different one from the shelf in the supermarket. This way the lottery would stimulate the first experience, that’s why it is vital to be precise in advertising message not to confuse those who will taste the object of promotion.
The situation with familiar or a little bit familiar products and services looks different a bit. The lottery in this case will be as a trigger to stimulate more consumption, to invite a customer to buy a product for a second time or to join the rows of those who have already liked it.
The work with mature clients is different too. In this last case the main target is the retention of customers, creation of their lasting experience during the consumption of goods or services. In this situation it is important to bear in mind that the company while communicating with its clients via the lottery is not only reminding about its goods and services, but also is expressing kind of a gratitude to its clients for staying with it and buying its product or service. The lottery in this case is more just a tool to keep an attention, to prevent switching to consumption of other goods.
Choosing the lottery prizes it is also important to understand what complimentary goods would be relevant to include in the list. These should not contradict with the initial products of services the company is selling and should be associated with their philosophy and a lifestyle of the target audience.
To conclude, the lottery is a strong consumption stimulation tool, oriented at making the volumes of consumption bigger. It is also a proof of a reliability of a company, which can afford itself an organisation of it, offering its clients a valuable prize or several prizes.