Question

Topic: Advertising/PR

Should We Answer The Competition's Actions?

Posted by Anonymous on 4/4/2008 at 8:54 AM ET 250 Points
Here is my dilemma...
My company is the leader in every aspect of our industry. Our closest competitor just released a product that matches the product that differentiated us the most (we have been producing this product for 9 years)...they used to make a similar product with a few differences but always said "their" way was better...now they have a product with exactly the features they said were inferior and are really promoting it. There are people within my company who want to start an ad campaign to tell consumers "we were first" and poke holes in the competitor's product history. I am against this, we should not stoop to this level!!! I think of Budweiser and McDonald's...you never see them put out an answer to an ad where a competitor bashes them or releases a product similar to theirs (at least that I have noticed).

I need some examples or places to find research/articles to support the fact that industry leaders do not put out advertisements in direct response to competitor's actions. Hard data is always the best but case studies would be great too. I am hoping someone on here has dealt with this in their own company and I really need help building my case...HELP!
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RESPONSES

  • Posted by joshuacrumbaugh on 4/4/2008 at 9:42 AM Member
    I'm reminded of a deal I closed just the other day. I was about to lose a deal to someone who was willing to bad mouth my company in order to get the business. I took a step back and asked myself this question: "What do I have to offer that my competition doesn't?" This question made all the difference in the world. Once I realized what I had that made my product better all I had to do was point out the benefits of my product and in general and extremely PC terms I was able to tell them why my product was better and the competitions was weaker. I never insulted them just simply did a comparison.
  • Posted on 4/4/2008 at 10:01 AM Accepted
    I agree 100% with your gut feeling! If anything, respect your competitor while reinforcing your product as superior will win you points with your customers and your product and company will be seen as trustworthy.
    Article:
    https://www.allbusiness.com/marketing-advertising/advertising/260512-1.html
    Tons More referencing studies:
    https://www.allbusiness.com/3470945-1.html?query=comparative+advertising

    AMA should have more but may have to pay...

    Hope this helps
    Good Luck =]
  • Posted on 4/4/2008 at 10:13 AM Member
    People use ad tag lines like: "The Original," "The Original and Still the Best," "Beware of Imitators," "We made it right the first time" all the time.

    I do not think they are negative or hurtful to your reputation, since they are simply fact stating comments.

    But this is were a good ad guy/gal comes in to evaluate the situation and creates competition killing advertising for you.

    You do not mention if your product is sold mostly by salesman or people shop for it in stores. There would be different strategies for both.
  • Posted on 4/4/2008 at 10:16 AM Member
    While working in the "trenches"... I heard my clients say to me (clients or retail sales staff WILL give you yor answer if you ask or simply listen face-to-face!!!)

    "I am here to buy the only RV I never saw on top of the Santa Ana Pass... " (he went on to list terrible RV insidences he saw as a result of the Santa Ana winds ripping down the pass... these RVs couldn't stand up to the winds)
    next client example...
    "I am here for a Cuisinart. You don't need to sell me or tell me why it's superior, your competitors already have. You see, when I go into investigate their food processors, they always compare their product to Cuisinart."
    NEED I ADD MORE??????? I don't think so.....
  • Posted by CarolBlaha on 4/4/2008 at 10:20 AM Accepted
    this article gives you some balance-- though it may not make your case as you intend. It describes how to go after competitors without "attacking directly." Which is interesting as it also describes one on one attacks-- like the Pepsi Challenge. https://www.inc.com/resources/marketing/articles/20040701/war.html.
  • Posted on 4/4/2008 at 12:33 PM Author
    Great feedback everyone! Just to clarify...this is more of an internal issue of me convincing the rest of management that we should not directly go after our competition in our print & internet marketing...B2C. I believe this will not only start a war between us and the competition but could damage our credibility within consumer's eyes.

    Innovation is not the issue, that is the exact reason we are the leader and we will not stop that push, but great suggestion!

    I like everyone's input and it has helped me a lot with building my case that there are better ways to go about this. Thanks!
  • Posted by flanger on 4/4/2008 at 12:44 PM Member
    Hey, I found it useful to subscribe at https://www.massmailsoftware.com/blog/ , cause all subscribers get free ebooks every week. Not like cheap ebooks, but really great stuff with many tactics and secrets. Great books - here for free... i think it's awesome
  • Posted by L. Duggan on 4/4/2008 at 4:08 PM Accepted
    Do you know that this is even an issue with your customers?
    If your company is the leader in every aspect of your industry, then you should be taking direction from your customers. It's only natural that the No. 2 would try to meet your competitive advantage.

    You would be better off advising senior management to spend the money on customer research than on competitive advertising. Use the study as an opportunity to validate your industry leadership position and determine where your customers position you relative to the competition.

    Let's say you go ahead spend the money on ads refuting your competitors claims about their product, what if the customers don't believe that the competitor comes close to the leader's product...well you've spent money you didn't have to.

    If you don't already, then you should make sure your marketing department has a way to determine your competitive positioning on an ongoing basis. As the market leader you should be looking forward in terms of meeting the needs of your customers, rather than looking backwards at your competitors trying to keep up with you.
  • Posted by joshuacrumbaugh on 4/4/2008 at 4:57 PM Member
    You don't have to stoop to their level to answer their claims, but you do have to answer them. I don't know what your product is which makes it difficult to understand who your clientel is, but you can not leave any mainstreem derogitory remarks toward your product unanswered.

    I run the marketing department for one of the three fastest growing lenders in the United States and we've seen our share of bad press lately yet we've continued to grow while industry conditions have put many very stable government and conventional lenders out of business. We've been able to continue our growth and tripple in size over the past 8 months due to our agressive marketing campaign which addressed all of the negative press our industry was getting.

    I think Roy H Williams put it best when he said:
    "The risk of offending someone is the price of clarity!"
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