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Ad war

ad war

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Ad war

  2. 2. What Is Advertising War ?  Comparative advertising or advertising war is an advertisement in which a particular product, or service, specifically mentions a competitor by name for the express purpose of showing why the competitor is inferior to the product naming it.  Comparative advertising is a widely used form of commercial advertising in many countries.
  3. 3. Definition  In the United States, the Federal Trade Commission (FTC) defined comparative advertising as “advertisement that compares alternative brands on objectively measurable attributes or price, and identifies the alternative brand by name, illustration or other distinctive information.”
  4. 4. History  The earliest case concerning comparative advertising dates back to 1910 in United States – Saxlehner v Wagner.  Pepsi vs. Coca Cola in 1985.  The use of comparative advertising has been well established in political campaigns.  While comparative advertisements had increased since1960, the relative amount of comparative advertising is still small.
  5. 5. Objectives Of Comparative Advertising  Increase consumer’s information  Influence or convince consumer  Focus on the superiority of the advertisers product over the competitors  Acceptance of brand  Bring out negative aspects of the competitor’s product  Degrade competitor’s product
  6. 6. EXAMPLE: To degrade the competitor’s brand on the basis of value proposition the competitive brand is offering
  7. 7. Why Advertising Wars?  Liberalisation and globalisation of economy, and dismantling of “License- permit” system.  In a competitive environment, every representation of a product or service, is not about “what we are” but “ what others are not”.  These practices raise questions about truthfulness and fairness of representation of products and services.
  8. 8. Advertising Wars in India The “Advertising Standards Council of India (ASCI)” specifies that comparative advertisement is permissible if:-  The aspects of the products compared are clear  The comparisons do not confer artificial advantages on the advertiser  It is factual and substantial  The consumer is unlikely to be mislead  There is no unfair denigration of the competing product.
  9. 9. Notable Brand Battles
  10. 10. Pepsi Vs. Coca-Cola  Blind taste test
  11. 11. Complan Vs. Horlicks GSK VS Heinz India
  12. 12. New Pepsodent Vs. Colgate Hindustan Unilever Limited Vs. Colgate Palmolive
  13. 13. The Times of India Vs. The Hindu
  14. 14. Reckitt Benckiser Vs. HUL
  15. 15. Moov Vs. Volini Paras Pharmaceuticals Ltd. Vs Ranbaxy Laboraturies Ltd.
  16. 16. Rin Vs. Tide Hindustan Unilever Vs P&G
  17. 17. Advantages of Advertising War  Functional Advantages • Enables advertisers to objectively demonstrate the merits of their products • Promotes the transparency of the market • Improves competition  For Consumer • An inevitable part of the consumer decision-making process, particularly at the evaluation stage. • Helps in keeping down prices and improving products
  18. 18. Risk Of Comparative Advertising  There is a danger that once undertakings address the merits and inadequacies of competing goods or services, they may be tempted to denigrate them or derive unfair advantages from such inaccurate comparisons.  Consumer confusion and deception.  Incomplete comparisons
  19. 19. Conclusion • While it is true that comparative advertising is a two-sided tool, with both potential and dangers (if misused),it can develop into a powerful tool for the marketer as well as for consumers if handled with restraint and good judgement. • Avoiding any negative references to competitive products and showing both products in a fair and equal manner will ensure that dual mission of comparative advertising is accomplished – that of educating the consumer and selling the product.
  20. 20. THANK YOU