Naming a competitor in Ad

[TruthHunter]

I want to run an advert that names a competitor.

'Our product contains our latest patented technology that ensures x and x, it retail's at £20, or you could buy this one from xxx, which retails at £28, but you'll have to ask them about their technology'

Anyone see any potential issues?

The competitor product uses outdated technology and yet is significantly more expensive, this is the message I want to get across.

 

[Paul Norman]

It is my belief that negative marketing is poor form.

'The Ford Focus is a great car' is acceptable. Ford running an add saying 'VW Golfs are rubbish cars' is not a good plan. (PS, I have no issue with, or personal knowledge of, a VW Golf.

Go out there with your positive message about your great technology and competitive price offer. Leave the competitor out of it.

 

[Mr D]

Why would you want to advertise a competitor?

Simply promote your product. You can crow about your patented technology if you want.

Negative can backfire. In your case you want people to talk to the competitor.
If I was that competitor I'd turn the contacts into a ton of sales! Is that the result you really want from your ad spend?

 

[NickGrogan]

It would make me want to buy the competitors one. Your ad says its better.

 

[TruthHunter]

Why would you want to advertise a competitor?

Simply promote your product. You can crow about your patented technology if you want.

Negative can backfire. In your case you want people to talk to the competitor.
If I was that competitor I'd turn the contacts into a ton of sales! Is that the result you really want from your ad spend?

The competitor is a famous established brand. We are a new upstart.

How do you turn an outdated product that is massively more expensive than the new stuff by a more innovative startup into a ton of sales?

 

[TruthHunter]

It would make me want to buy the competitors one. Your ad says its better.

You'd prefer to pay a lot more for an outdated product?

The bit in my ad that says, 'it ensures x and x' - What are the x's that I deliberately left out?

Our do you think that it literally my ad?

 

[NickGrogan]

You'd prefer to pay a lot more for an outdated product?

The bit in my ad that says, 'it ensures x and x' - What are the x's that I deliberately left out?

Our do you think that it literally my ad?

Yes, they're clearly better.

You have a patented technology that does x and y, whatever they are. (no one cares)

Whereas they charge more and have a technology that you don't understand.

Apple v android

Apple uses older tech, android has everything Apple has - before Apple.

People buy Apple.

 

[NickGrogan]

The competitor is a famous established brand. We are a new upstart.

How do you turn an outdated product that is massively more expensive than the new stuff by a more innovative startup into a ton of sales?

Not with patents.

 

[Mr D]

The competitor is a famous established brand. We are a new upstart.

How do you turn an outdated product that is massively more expensive than the new stuff by a more innovative startup into a ton of sales?

The same way they are selling at the moment.

Customer contacts you regarding your product they have not yet purchased its a good sales call opportunity.

Any decent salesman would be able to turn a percentage of those calls into sales. Heck, famous established brand is far more trusted than new innovative startup - be easier to sell!

You are a new startup with a better product and its cheaper too. You have all the positive aspects you need.
If you can't compete even with those advantages then perhaps there is something wrong with how you are presenting your product.

 

[Mark T Jones]

It's often said that the best PR Amazon gets is independent retailers complaining about them.

Add to that, you customer doesn't give a monkeys about your technology; they care about how it benefits them.

Focus on your customers and your benefits, let the competitio take care of themselves.

 

[Mr D]

Yes, they're clearly better.

You have a patented technology that does x and y, whatever they are. (no one cares)

Whereas they charge more and have a technology that you don't understand.

Apple v android

Apple uses older tech, android has everything Apple has - before Apple.

People buy Apple.

Some of us prefer Android.
Must be 12 years since last purchased anything from Apple. It still works though grown old and feeble.

 

[TruthHunter]

Yes, they're clearly better.

You have a patented technology that does x and y, whatever they are. (no one cares)

Whereas they charge more and have a technology that you don't understand.

Apple v android

Apple uses older tech, android has everything Apple has - before Apple.

People buy Apple.

You don't know what the x's are yet you've stated no one cares?

During lockdown three major hotel chains have started specifying our new product over the outdated product from the other brand because of the x's and price.

But, you know, no one cares and the other brand's products are clearly better.

 

[TruthHunter]

The same way they are selling at the moment.

Customer contacts you regarding your product they have not yet purchased its a good sales call opportunity.

Any decent salesman would be able to turn a percentage of those calls into sales. Heck, famous established brand is far more trusted than new innovative startup - be easier to sell!

You are a new startup with a better product and its cheaper too. You have all the positive aspects you need.
If you can't compete even with those advantages then perhaps there is something wrong with how you are presenting your product.

Fair enough.

 

[Paul Norman]

The details of the debate about your competitor versus you are not relevant.

You have stated the challenge yourself. You are the new kid in town, trying to nick sales off the established player.

Being negative about that established player is a good way of ensuring you don't succeed.

You have a big marketing hill to climb. Start climbing it today by getting your positive message out there.

But avoid the negative stuff. And avoid saying anything about the established player.

Remember, what matters here is getting the customers to believe that your solution is good for them. Not the other guys is bad.

 

[TruthHunter]

It's often said that the best PR Amazon gets is independent retailers complaining about them.

Add to that, you customer doesn't give a monkeys about your technology; they care about how it benefits them.

Focus on your customers and your benefits, let the competitio take care of themselves.

The benefits are the x's in my original post I declined to specify what they are.

I personally think most marketing is stale, boring and has no impact at all.

 

[TruthHunter]

The details of the debate about your competitor versus you are not relevant.

You have stated the challenge yourself. You are the new kid in town, trying to nick sales off the established player.

Being negative about that established player is a good way of ensuring you don't succeed.

You have a big marketing hill to climb. Start climbing it today by getting your positive message out there.

But avoid the negative stuff. And avoid saying anything about the established player.

Remember, what matters here is getting the customers to believe that your solution is good for them. Not the other guys is bad.

Fair enough, thanks for the comments.

 

[Mark T Jones]

The benefits are the x's in my original post I declined to specify what they are.

I personally think most marketing is stale, boring and has no impact at all.

You are certainly doing a great job of selling your idea to yourself.

 

[Paul Norman]

Fair enough, thanks for the comments.

Of course, you do have a decent story to tell in your marketing. A positive one. Obviously, I don't know your audience or marketing arena, but at least you are not just trying to market another grey widget with no benefits.

 

[NickGrogan]

You don't know what the x's are yet you've stated no one cares?

During lockdown three major hotel chains have started specifying our new product over the outdated product from the other brand because of the x's and price.

But, you know, no one cares and the other brand's products are clearly better.

Name 3 products that have won market share against a well-established competitor, mainly through the use of patents/tech?

Which was better technically Betamax / VHS, Apple/Android, etc

Are Beats headphones the best technology?

Was MS-DOS the best operating system? What about Windows?

Which car has the most patents? Which car sells the post?


If you really signed up 3 major hotel chains, why are you wasting your time on silly we've got tech ads?

 

[ethical PR]

I personally think most marketing is stale, boring and has no impact at all.

Really - your opinion is based on what sort of marketing expertise exactly? There are lots of really interesting, relevant marketing campaigns that work - i.e. achieves the sales the company is looking for.

Surely that is what is relevant.

I agree with others, if you product is cheaper and better than focus on that. You have said three hotels are already using your product why don't you expand on this niche?

 

[TruthHunter]

Of course, you do have a decent story to tell in your marketing. A positive one. Obviously, I don't know your audience or marketing arena, but at least you are not just trying to market another grey widget with no benefits.

I don't launch any product that doesn't stand out. I prefer marmite approach, people either love what I do or hate it, I prefer it that way than trying to be vanilla and please everyone, which is impossible.

In 5 years I've gone from a garage to £2m tunover in 2019 and looking likely to be a shade under £2m this year, which I'm pretty pleased with.

But I think it's time now to really stick it to he big boys who's products are average and who's pricing and sales model is slow, bloated and dependent on everyone taking their slices along the way.

I sign up fully to the brew dog approach to marketing and promotion.

 

[ethical PR]

I don't launch any product that doesn't stand out. I prefer marmite approach, people either love what I do or hate it, I prefer it that way than trying to be vanilla and please everyone, which is impossible.

In 5 years I've gone from a garage to £2m tunover in 2019 and looking likely to be a shade under £2m this year, which I'm pretty pleased with.

But I think it's time now to really stick it to he big boys who's products are average and who's pricing and sales model is slow, bloated and dependent on everyone taking their slices along the way.

I sign up fully to the brew dog approach to marketing and promotion.

Turnover isn't relevant. You can have a £10 million turnover and zero profit. What net profit are you making?

 

[TruthHunter]

Really - your opinion is based on what sort of marketing expertise exactly? There are lots of really interesting, relevant marketing campaigns that work - i.e. achieves the sales the company is looking for.

Surely that is what is relevant.

I agree with others, if you product is cheaper and better than focus on that. You have said three hotels are already using your product why don't you expand on this niche?

Based on starting a business from a garage and doing pretty well in 5 years.

I am expanding on that niche, but worldwide, not just UK where 90% of my sales come from.

 

[Alison Moore]

Negative marketing rarely works... occasionally for the big boys, but then they're large enough to deal with any legal claims that might come their way. Plus what if your competitor changes their price? - your add is immediately wrong, and you'll be opening yourself up to misrepresentation claims from your competitors.

Plus I would worry more about the grammar in the ad: "it retail's at £20...." you don't need the apostrophe.

 

[TruthHunter]

Turnover isn't relevant. You can have a £10 million turnover and zero profit. What net profit are you making?

37% NET. Why do you need to know?

 

[NickGrogan]

I don't launch any product that doesn't stand out. I prefer marmite approach, people either love what I do or hate it, I prefer it that way than trying to be vanilla and please everyone, which is impossible.

In 5 years I've gone from a garage to £2m tunover in 2019 and looking likely to be a shade under £2m this year, which I'm pretty pleased with.

But I think it's time now to really stick it to he big boys who's products are average and who's pricing and sales model is slow, bloated and dependent on everyone taking their slices along the way.

I sign up fully to the brew dog approach to marketing and promotion.

Remind me when Brewdog did advertising based on we've got a patent, or our beer is cheaper than Carlsberg?

 

[TruthHunter]

Negative marketing rarely works... occasionally for the big boys, but then they're large enough to deal with any legal claims that might come their way. Plus what if your competitor changes their price? - your add is immediately wrong, and you'll be opening yourself up to misrepresentation claims from your competitors.

Plus I would worry more about the grammar in the ad: "it retail's at £20...." you don't need the apostrophe.

My competitor can't change their price. They have two many people taking slices of the pie who can't be cut out.

<removed >

 

[Alison Moore]

My competitor can't change their price. They have two many people taking slices of the pie who can't be cut out.

Honestly, you people literally think that was my ad? Give me strength.

Why did you come on a forum, and ask if anyone could see any potential issues based on your ad, just then to be rude when people give you their opinion as to the potential issues they can see?

 

[Mr D]

My competitor can't change their price. They have two many people taking slices of the pie who can't be cut out.

Honestly, you people literally think that was my ad? Give me strength.

Never bet on what they can or cannot do.

If marketing won't work for you then don't do it.

 

[TruthHunter]

Why did you come on a forum, and ask if anyone could see any potential issues based on your ad, just then to be rude when people give you their opinion as to the potential issues they can see?

How have I been rude?

 

[Lucan Unlordly]

First rule of Sales. Never knock the competition.

 

[TruthHunter]

Name one thing that I said which is wrong?

You have a patented technology that does x and y, whatever they are. (no one cares)

 

[NickGrogan]

You have a patented technology that does x and y, whatever they are. (no one cares)

So you don't have a patent? That was your claim, not mine.

Or you think people do care? Your product is cheaper, and "better" and you're struggling for marketing ideas - because people don't care.

 

[TruthHunter]

So you don't have a patent? That was your claim, not mine.

Or you think people do care? Your product is cheaper, and "better" and you're struggling for marketing ideas - because people don't care.

I have a patent. I defended my patent in court in Germany this year and had it upheld and was awarded damages. At a trade show in Germany, I was able to provide customs officials with details of my patents, who then shut down any non European company showing products that infringed my patents. Germany cares about patents and is the best place in Europe to defend one.

I currently have 8 distributors with exclusive areas to sell products using my patented technology.

But you, who knows nothing about my patent, my technology, my market or the benefits of my technology arrogantly claims no one cares about it and then stupidly claims that a patent can't help build a company?

Is that ok for you Nick or do I have to entertain more of your ignorant and arrogant statements?

 

[intheTRADE]

It's an aggressive and risky tactic, but it CAN work. Look at the likes of Aldi, Brewdog, DHL, BMW, Lidl who have all been successful with this approach against their competitors - Bare in mind these also huge brands with near unlimited marketing budgets.

Personally I like this approach. Traditional marketing is boring, outdate and predictable. It's refreshing to see brands a new comers shaking up their industries.

Just be 100% sure this the type of marketing you wish to pursue. Be prepared for backlash from both customers and competitors - Do it right though and not in a malicious way against your competitor and it can very lucrative

 

[NickGrogan]

I have a patent. I defended my patent in court in Germany this year and had it upheld and was awarded damages. At a trade show in Germany, I was able to provide customs officials with details of my patents, who then shut down any non European company showing products that infringed my patents. Germany cares about patents and is the best place in Europe to defend one.

I currently have 8 distributors with exclusive areas to sell products using my patented technology.

But you, who knows nothing about my patent, my technology, my market or the benefits of my technology arrogantly claims no one cares about it and then stupidly claims that a patent can't help build a company?

Is that ok for you Nick or do I have to entertain more of your ignorant and arrogant statements?

I'll let some of the Germany experts comment on patents, and why customs officials were at a trade show, why your patent didn't apply to European companies, etc.

So, assuming all this is true, why is your advertising basically we're cheaper than them and why do you want to name them in your ad?

 

[TruthHunter]

It's an aggressive and risky tactic, but it CAN work. Look at the likes of Aldi, Brewdog, DHL, BMW, Lidl who have all been successful with this approach against their competitors - Bare in mind these also huge brands with near unlimited marketing budgets.

Personally I like this approach. Traditional marketing is boring, outdate and predictable. It's refreshing to see brands a new comers shaking up their industries.

Just be 100% sure this the type of marketing you wish to pursue. Be prepared for backlash from both customers and competitors - Do it right though and not in a malicious way against your competitor and it can very lucrative

Thank you, I'm very pleased to read this. The world is changing, just look at politics. I'm never going to be rude or say things that are false about my competition. I'm just going to annoy them by hammering home my advantages and creating some attention for my own company that does't have the costs of traditional marketing and advertising.

I can use their brand to elevate my own, but agreed, it needs to be careful. The last thing on earth I want to spend money on is lawyers.

 

[Lucan Unlordly]

It's an aggressive and risky tactic, but it CAN work. Look at the likes of Aldi, Brewdog, DHL, BMW, Lidl who have all been successful with this approach against their competitors - Bare in mind these also huge brands with near unlimited marketing budgets.

Mostly retail brands appealing to the consumer.

Aldi started a price war by comparing costs with Tesco. Tesco responded with lower prices.

Meanwhile Aldi slip behind when it comes to household deliveries. Profits down.

Too busy worrying about others?

 

[TruthHunter]

Mostly retail brands appealing to the consumer.

Aldi started a price war by comparing costs with Tesco. Tesco responded with lower prices.

Meanwhile Aldi slip behind when it comes to household deliveries. Profits down.

Too busy worrying about others?

Aldi started a price war a long time ago and wiped the floor with the traditional dominant players. It wasn't just price though, it was quality and price, The traditional big boys didn't know what had hit them. Aldi aggressively compared prices in Ads whilst also winning awards for quality.

In 1995 Aldi had 3000 stores and by 2017 then had over 80,000. You think they got their marketing wrong?

 

[Mr D]

Aldi started a price war a long time ago and wiped the floor with the traditional dominant players. It wasn't just price though, it was quality and price, The traditional big boys didn't know what had hit them. Aldi aggressively compared prices in Ads whilst also winning awards for quality.

In 1995 Aldi had 3000 stores and by 2017 then had over 80,000. You think they got their marketing wrong?

They didn't know what hit them?

Tesco.
16 billion turnover in 1998, 70 billion in 2014.
Both companies grew considerably. Perhaps the biggest seller wasn't that concerned by the small one?