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Business & Strategy

 
Created by : Namrata Pathak, Accounts Manager, American Express  | 03 26 2010 10:46:10 +0000
Industry : Advertising/PR/MR/EventsFunctional Area : Strategy Execution(Strategy & Execution)
Activity:  1230 views;  last activity : 11 17 2010 11:31:01 +0000

Did you ever take “The Pepsi Challenge”?  Have you seen the Mac Guy vs. PC Guy commercials?  Chances are at some point you’ve seen some form of comparative advertising that could more accurately be called a “Brand Smackdown”.  Not unlike two brands entering an ultimate fighting ring, comparative advertising has become an all-out battle among some of the world’s top brands.


http://www.candm.co.uk/imglib/Istock/iStock_000007422541XSmall.jpg

Business markets today are as aggressive as they can be. Everything is about one brand's superiorior claim against that of another. They are driven partly by the expanding horizons of commercial markets and economies and partly by technological challenges pushing them to exploit the internet, television and radio environment.

So, does comparative ads help in better brand building??

Please give your views.......

 
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Top Argument
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I believe that all good advertising is competitive. The reason of advertising is to create compelling propositions for brands; competitive propositions that suitably answer the all-important question—why buy me? Comparative advertising, on the other hand, is one of the manifestations of competitive advertising. It drives sales by comparing the features or services of a brand with that of its closest competitor.

It is most often seen in markets and categories that are “price-sensitive” or where “a benefit/ attitudinal upper hand by brand” is the key to winning consumer votes in a crowded “me too” category. Consumers today need “instant, ready-to-consume” information on products and services. Comparative advertising helps them make informed choices.

This, of course, assumes that comparative advertising does not misrepresent the facts. Thus, comparative ads help in brand building.


By Namrata Pathak, Accounts Manager, American Express  03 26 2010 10:49:25 +0000
 
Top Argument
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No. it will give adverse impact. Instead they can backup more on quality, any advantage for using their products and their scheme in particular.

K Rajagopalan.


By k Rajagopalan, Area Manager, Amitex Polymers (P) Ltd.  03 26 2010 11:30:38 +0000
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YES IT CAN PROIDE BETTER RESULTS IF THE COMPARISON IS BASED ON REALISTIC DATAS. THIS MAY BE IN FAVOUR OF YOUR CLIENT ALSO.
By rakeshbhatnagar , GM Projects., wig brothers india pvt.ltd.  | 11 17 2010 11:31:01 +0000
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yes by thiscustomerbecome more aware to differentiate the one brand with other one to get help ful in its use
By virender kumar, REGIONAL BUSINESS MANAGER, CELON LABS LTD  | 05 06 2010 14:46:25 +0000
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Yes i agree wid d fact that comparative advertising sholud be done becoz this will lead to an intense competition and if there will be more competition than ultimately custmers will get benefits.We can currently take an example of telecom industry wat is happng thr..."INTENSE -COMPETITION"  customers r getting benefits in terms of low call rates.ANd today customers r aware abt each n every product's services nd utility so they r well decision makers than anybody else.........


By Ankit Sharma, MBA/PGDM student, Birla Institute Of Management Technology, Greater Noida  | 05 06 2010 13:49:15 +0000
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# allowed me to get a few natural citations with great anchor text # ensured other people who linked at the tool mixed up their anchor text, since it was sorta like a tool without a name (I have lots of links with words like Google, Yahoo!, Overture, free, keyword, research, suggestion, analysis, tool) # that wide array of anchor text makes it easy for that page to be relevant for many search queries # by making it hard to reference by any sort of official name it probably made some word of mouth mentions include my traditional site brand name, which is what I eventually changed the tool name to, but only after it got a few mention
By ravindra shrivastava, Information Systems(MIS)-Manager, iifs pvt ltd  | 04 09 2010 11:07:26 +0000
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I agree with this topic "comparative ads help in better brand building"

Because in today customers are thinking that which consumable thing he should have to purchase. what is the benefit, with any brand. Consumer must have to know, better benifit, compare to other brand.


By Parag P Muthal, Marketing Officer, Govind Milk & Milk Products Pvt Ltd  | 04 09 2010 08:28:05 +0000
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Yes , I agree to it. One should focus on creating it's own brand instead comparing with others....
By Nischal , Area Business Manager, MSD Pharmaceuticals Pvt Ltd.  | 04 02 2010 11:39:09 +0000
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Thanks for the referral Mr.Namrata Pathak. Yes you are right.

Advertising is a technique to communicate about the products & services to their targeted customers how that could benefit them in order to persuade to purchase.

Brand is a name given to a product or service and which has perception about quality, features, and life style,status etc. Every marketer makes an effort of different type to appeal their customers to establish that his product is good.

Similarly everybody is fighting from the same platform indicating his product features and comparing the products with the competitors. Here the fittest can survive[ real facts on products] Consequently, based on the merits the products are being purchased. Naturally it is brand building.

The comparative ads should not do negative marketing about competitors. They can claim that our products have these good qualities than others.Business ethics should be followed.


By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 03 26 2010 18:42:01 +0000
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The point is taken .. This is a buyers market so everybody knows what they exactly need .. But when it comes to the stage where the buyers knowledge are in adequate to make a decision these ads play a vital role .. For Example the knowledge about ipod is comparitively higher when comapred to zune ... Gone are those days "the best wine doesnt require olive leaves" everybody has focussed on quality .The point is that features available and the economic status of the people .so if the players has to maintain their position the market they have to show up their competitive advantage of their products to sustain or in other words prevail.. there may also be a negative approach saying that the other product is degraded  but at the end when it comes to buyers decision these ads play a vital role .. so i support this ...  if i am wrong on my statement pls pardon me viewers ... pls point out where i am wrong .. this is a continious learning process.....


By rajasekeran paramanandam, senior engineer- marketing, Gemini Communications  | 03 26 2010 14:10:31 +0000
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By Shailender , Chief Operating Officer, Cambay Hotels  | 03 26 2010 13:26:38 +0000
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By Shailender , Chief Operating Officer, Cambay Hotels  | 03 26 2010 13:22:59 +0000
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Even I think why u need comparitive advertising when you believe your product's quality and the second thing is by comparing with other brand you are marketing that product also and letting people know that you see your competitor as a closest threat


By Shailesh , Business Development Executive, Ennov8-web  | 04 02 2010 12:35:47 +0000
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I am not a fan of competitive advertising. It reminds me of poorly done celebrity advertising—both are symptomatic of lazy creativity and lazier strategic thinking. It takes real effort and real study to arrive at a unique consumer insight around which to build a brand idea and a consumer proposition.

It’s easy to look at a competitor and poke holes in his product or services. It’s harder, but definitely more valuable, to plug the holes in one’s own offering and build real competitive advantages with which you can impress your customer.Of course, some brands want to build their images around controversy and ambush—in which case, it may still be strategically correct. Still, there is no research that shows consumers like a name-caller any more than they like a brand that seeks to connect with them in a positive way.


By Purvi Ghosh, Marketing analyst, Percept Advertising  | 03 29 2010 05:13:51 +0000
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No. will not help brand building. Due to stiff competition company"s prefer comparative advertising to educate the customer. In general market is very sensitive on price and also it depends on the products quality and availability. 

K Rajagopalan  


By k Rajagopalan, Area Manager, Amitex Polymers (P) Ltd.  | 03 26 2010 16:39:52 +0000
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A brand is a bundle of features, characteristics and benefits that a product or service is supposed to deliver. The operative word is "supposed to". More often than not, it is a matter of perception and not the reality. As an example, how many of us can measure or verify whether a Rolex or an Omega shows time more accurately than say a Titan or a Timex? How many of us can understand the difference between a 2.66 GHz and a 3 GHz processor? In the event, a brand becomes an aspirational state and reflects the stage at which we are in the Maslowian hierarchy. For someone at the self-actualization stage, a simple clock such as the one that Mahatma Gandhi used would be more than sufficient. On the other hand, for someone whose status and prestige needs are paramount, all the brands in the world may not bring satisfaction.

The problem with comparitive advertising is that an ordinary customer has no way of validating the claims and counter-claims made. For the information of the readers, comparitive advertising is banned in many developed countries. How then can it be justified in a country where illiteracy is rampant?

In fact, even without the complexities of comparitive advertising, we are often fed with information overload. Consider this: a vehicle promises to deliver 97 kms to the litre. There is a small asterisk. Please read the fine print. It is supposed to deliver 97 kms per litre if two people weighing a total of 130 Kgs cruise on a flat road at a constant speed of 45 kmph on a windless day and without breaking. Do such conditions exist in the real world? Why do you complicate the decision-making for the customer by making comparisons that cannot be validated?

If there were to be an independent body of unimpeachable integrity and with no business interests whatsoever, the findings of such a body may be worth considering. Some examples do exist particularly in the technology domain but their independence is questionable considering they depend on advertising support from the very products that they evaluate.

Therefore, comparitive advertising is misleading in its simplest form and unethical in its extreme forms.


By B V Krishnamurthy, Consultant  | 03 26 2010 14:19:59 +0000
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A brand is a bundle of features, characteristics and benefits that a product or service is supposed to provide to customers. More often than not, it is a perception not the reality. For example, how many of us are sure that a Rolex or a Omega shows time more accurately than say a Titan or a Timex?. How many of us can understand the difference between a 2.66 GHz and a 3.00 GHz processor?. In many such cases, brands become aspirational in nature and connote where we are in the Maslowian hierarchy of needs. For a person who has reached the self-actualization state, a clock like the one that Mahatma Gandhi used would be more than sufficient. On the other hand, for someone whose prestige or status needs are paramount, an Omega, a Rolex, a Cartier, a Mont Blanc and half-a-dozen other brands also would not suffice.

Under the circumstances, when we are already overloaded with information, comparitive advertising does more harm than good. For the information of the readers, comparitive advertising is banned in many of the developed countries. How then can we justify it in a country where 2/3rds of the population may be illiterate?

The main problem with comparitive advertising is that there is no way an ordinary customer can validate the claims and counter-claims made. If you have an independent body that does not have any business interests, and whose integrity is unimpeachable, a comparitive analysis made by such a body may be useful. You do have examples of this particularly in the technology domain.

However, comparitive advertising by companies, that can neither be verified nor validated, and in many cases not even understood, is certainly misleading and bordering on the unethical.

 


By B V Krishnamurthy, Consultant  | 03 26 2010 14:01:32 +0000
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Not always. For complex products like cars etc., the comparative ads work well. The basic for providing comparison is to reinforce the customers decision is right one and is going to be accepted in his/her circle. Recall, how many times you/me have asked about certain products in terms of features, suitability etc. For low involvement products like Cola's, comparative advertisement is going to well because they can not show much differentiation in features so they mostly rely on other tactics. So, i believe that if you have innovative product which disrupts the market direction then it will get enough brand awareness than it would have got by doing comparative advertisement.


By kiranksrs , National Head, IRIS SERVICES  | 03 26 2010 11:21:43 +0000
 
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