Home – New Forums Marketing mastery Comparisons; Where is the line?

  • This topic is empty.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • #988499
    dangaff
    Member
    • Total posts: 244
    Up
    0
    ::

    Sorry for all the posts everyone. Last one for tonight.

    Everyone has seen price comparisons ie:
    Shop X is selling Widget A for $10 (example sake, this is my shop)
    Shop Y is selling Widget A for $12 (competitor 1)
    Shop Z is selling Widget A for $14 (competitor 2).

    So of course you want these ‘bragging rights’ and you want to display this (in the context of eCommerce – of course some industries don’t compete on price).

    So at what point does this bragging become crossing the line?
    Is there legal issues behind each price comparison?
    Do you just need to ensure your information is accurate? (perhaps with a little bit of writing under it saying “accurate as at 05/07/14”).

    Does anyone undertake this form of “marketing” as such? – If so, I’d be keen to take a look at how you’ve presented it on your website and listen to some of your comments regarding how you manage it.

    Also, when comparing you with the competition, at what point does it become “defamation” as such?
    ie – Looking at Kogan’s Competitors page (bit of an extreme example using an extremely disruptive company, but a good example), the website states some pretty basic stuff that I couldn’t imagine see you “crossing the line”. ie – Kogan being online, thus less overheads. Again, Kogan being online therefore you don’t need to worry about busy crowds in shopper centres/car-parks at Harvey Norman etc. I imagine the wording that is used in his competitors page is somewhat basic for just this reasoning. Therefore implying no specific mention of anything (that could get him into the doghouse – so to speak.)

    #1167463
    dangaff
    Member
    • Total posts: 244
    Up
    0
    ::

    Can anyone shed some light on this?

    #1167464
    JohnW
    Member
    • Total posts: 2,642
    Up
    0
    ::

    Hi Dangaff,
    This may be relevant.

    Google released its Panda 4 upgrade at the end of May begining of June.

    It looks like this upgrade could decimate the price comparisons sites and syndicated shopping sites.

    I’ve been asked to look at some e-commerce sites in these situations that have shown a 60% decline in generic search engine referrals overnight as a consequence of this.

    I’ve not heard any public comments from the price comparison and syndicated shopping sites on this issue.
    Regs,
    JohnW

    #1167465
    LucasArthur
    Participant
    • Total posts: 3,171
    Up
    0
    ::

    Hey Danga

    How you been…

    Seen this post the other day although my direct input was not related as per the questions you asked.. Meaning you asked if ‘we’ had done this, current do this or compare in a similar manner…

    We DO NOT do this although this seems to come from a time many moons ago from my retail days when i personally found the more you bashed a competitor in the eyes of your potential client, the less chance you had of closing this said potential client. Customers do not like direct argumentative comparisons in my experience and if you endeavour to deploy any tactics similar to the businesses you mentioned, i would be very cautious and generic i might add.

    The ability, i have found, to use this sort of comparison is more to draw an ambiguous example allowing potential clients to draw their own conclusions. The seed of the negative tends to work better than actually drawing attention to certain manufacturers.. I know i am drawing old adages of sales techniques to what you have asked, although it may be relevant? would love to see what others think…

    An example would be with a piece of our furniture. We actually pre-assemble the chairs (the legs come separate) in order to ensure the wholes all line up so there are no problems for the customer when they take it home to assemble. A quick google of this problem reveals many of my competitors that have the same problem, although they do not report it and have many customer concerns about it.. In this instance, we merely state “we pre-assemble our items to ensure all is aligned so you can easily construct the chair – we have found many other suppliers dont do this so we wouldnt want this to be a problem for you”… We have used a factual piece of the information for our benefit and tried to advise the clients without defamation or name dropping, but they sometimes elaborate with you though :)

    The example you draw on re retailer X, then Y then Z may work ifthe items being sold are brand names and identical items across each site. Reason is because if the items vary by brand AT ALL there can be negative connotations to the comparison if a buyer becomes aware of it..

    Will draw on another sales history lesson, DO YOU WANT TO COMPETE ON PRICE? if this is the question?

    Personally i am not sure i would ever use a competitors name on my site.. For a few reasons.. although 2 mainly.. First, incase something went wrong and i was misrepresenting the information and then got into a litigious situation and secondly i may be competitive on that one product in the comparison but what happens if my potential client jumps across and is distracted by another item that they are cheaper than me on and i lose not only the original sale although the new items as well :(

    Just random thoughts, hope you dont mind mate..
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1167466
    dangaff
    Member
    • Total posts: 244
    Up
    0
    ::

    Thanks Jason.

    That’s a very interesting post and I like how you do it regarding furniture.

    As you mentioned, the products are absolutely identically branded. I think not using a competitors name is definitely ideal and again, draws on your thought of the customer drawing their own conclusion on whom it may be. They also have a lot more money than me and could potentially pursue with legal action (mainly misrepresenting information).

    Sometimes it can be hard to update all your products with new prices, let alone monitoring one or two of your competitors websites in order to make sure you’re representing the correct information. At least if its Competitor 1 – $50 and Competitor 2 – $55 then its a bit more ‘lax’ I suppose.

    I don’t know if it’ll be worth the time too be honest now you’ve put it back into perspective.

    #1167467
    LucasArthur
    Participant
    • Total posts: 3,171
    Up
    0
    ::

    Yeah sorry mate, i sort of added a bit to that reply didnt i? LOL.

    Comparisons, personally, i feel work best in the face to face space and online just looks like you are trying to rubbish competitors… Something that i find should be left on the used car lots (if you get my meaning).

    Always happy to discuss though…

    Let us know how you proceed… It can be time consuming to ‘monitor’ this regularly and you would need to weigh up the time spent monitoring to what you feel you have generated/converted.. It would be interesting to know if those returning or buying from you are repeat buyers as this will factor into a comparative sell, if they are repeat chances are you have already won them as long as semi competitive although if ALL NEW customers simply oogling the products name and finding you – well that could be hit or miss..

    Oops, i did it again…

    Be well mate…

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.