Question

Topic: Student Questions

Advertising @ Competitors Expense

Posted by Anonymous on 125 Points
I was talking to my boyfriend yesterday about the most recent advertising TV commercial for SPC (shipping company) and how they show DHL and UPS characters in order to enhance SPC's image. I was wondering, what some of you people thought about advertising at other competitors' expense.
Personally, I do not agree with this technique (to the degree that it is unethical to me), because if a brand is strong and good enough it should be able to do so it otherwise, not by blantly putting down other brands. This is not the first time I have thought about this issue, but a few years ago, coming to live in the US from Chile, I realized how American commercials like for Tylenol and such would put on the competitor's packaging or name, when in Chile I had not seen this advertising trend. I asked about this in my marketing class and my professor told me she did not know the answer, but there could be some laws involved, but generally it is not recommended for companies to advertise putting down others.
If anyone can help me with some information about these issues, I will be more knowledgeable thanks to you. Thank you!
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RESPONSES

  • Posted by SteveByrneMarketing on Accepted
    In my view, there are two distinctly different ways to advertise at the competition’s expense:

    1. There’s the comparative approach showing your product against “inferior” competitor products like your shipping companies example. Often these ads will use humor at the expense of the competitor(s). Other times ads will simply list feature/benefits favorably comparing their product against product X and product Y. Comparative ads often incorporate a bit of FUD (fear, uncertainty and doubt) as an emotional hook to the consumer.

    2. There’s the positioning approach showing your product’s position relative to the competitor’s products with benefits for the consumer. For example, “Avis is Number Two, We try Harder”. Avis is indirectly stating that Hertz isn’t trying hard enough to earn the consumer’s business and Avis will try harder than Hertz.

    Both of these approaches can be highly effective when they strike a chord of truth with the target audience. And as many brands become global brands, it will be much harder to enforce any cultural or legal restrictions on this type of advertising. Afterall, all’s fair in love and war and marketing.

    Hope this helps,

    - Steve
  • Posted by darcy.moen on Accepted
    I am working with a local advertising agency and we have a client who raised exactly this question!

    The client is a burger and fries restaurant, but a higher end type place than the know franchises and international chains. This is a mom and pop burger stand that has survived many a burger war since the late 1940's.

    This burger place wanted to differentiate themselves from the rest of the pack. They were not adverse to 'challanging' the competiton and known names, but at the same time, they didn't want to come right out and name names.

    The campaign began with their 'secret sauce'. "Sure we'll tell you what in our secret sauce, but you'll have to join the witness protection program"

    Followed up with: "If the burgers were any fresher, we would have to keep the cows in the back yard".

    The strongest they came out with was the catch phrase "Ronald, you want a piece of me?"

    "Mushrooms, almost as good as the magic ones"

    The differentiation campaign is working, and not once did they really slam or directly comparison advertise to anyone...its all implied. And tastefullly done I might add.

    There is the high road, and the low road. I'd rather use my brain, and do the high road, because more people appreciate and remember sophisticated humor. When given the choice, always take the high road. There is enough scummy politicians to bottom feed, so why get down there with them.

    Darcy Moen
    Customer Loyalty Network
  • Posted by Carl Crawford on Accepted
    hi jleighton81,

    in new zealand it was recently made legal to put other competators brands in to commerial and compare them.

    i have not seen any ads like that yet, but they will come (eventually).

    Carl Crawford
  • Posted by SRyan ;] on Accepted
    Darcy's response reminded me of a very clever tagline underneath the Charlie's Hamburgers sign:

    "Over two dozen sold."

    I think that approach is clever. No mention of McD's, but the comparison is there!

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