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Competitive marketing campaigns are rich with opportunity but also fraught with peril. So how do you exploit the opportunity while leaving the peril behind? Here are five criteria that indicate a competitive marketing program has a good chance of success: 1. You competitor is better known. 2. You have an identified differentiation. 3. You make it easy to switch. 4. There is a precipitous event. 5. Your offer is compelling. A highly targeted approach to competitive marketing usually works better than broad-based general advertising.
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To Compete or Not to Compete?
This is a decision that is rich with opportunity but also fraught with peril.
So how do you exploit the opportunity while leaving the peril behind?
First…
First, make sure you understand why you want to run the competitive campaign in the
first place.
To create a winner, you have to be able to identify those who have already purchased
from your competitors or are planning to do so.
Then…
You then need to reach these individuals and companies with an offer so compelling
that it upsets the status quo.
The point is: Knowing when not to attack a competitor is just as important as knowing
when to do so.
5 Characteristics
While every situation is different, here are five criteria that indicate a competitive marketing program has a good chance of
success:1. Your competitor is better known2. You have an identified differentiation3. You make it easy to switch4. There is a precipitous event5. Your offer is compelling
5 Characteristics
1. Your competitor is better known – – Like they say in politics, if you are the challenger or
underdog, you attack because you have more to gain and less to lose.
– In business, when your larger competitor counterattacks, they put you on a level playing field in the minds of the target audience.
– In fact, their counterattacks can sometimes bring you more publicity than you could have achieved on your own.
5 Characteristics
2. You have an identified differentiation – – Few prospects will respond to a generic message like, “We
are just as good as Company X.” – To get them to choose you instead of the incumbent, you
need to show them how you are unique and better in some valuable aspect.
– This can’t be an incremental advantage; it must be a game-changer for your prospect to seriously consider it.
5 Characteristics
3. You make it easy to switch – – It can be a daunting proposition for someone to switch
large and complex products or services. – This can even be true for less expensive and non-complex
products. – The more painless you can make the transition, the better.
5 Characteristics
4. There is a precipitous event – – Anything that causes a change in the business or sales
climate, making the prospect more receptive to your offer.– A precipitous event can create a strong sense of urgency,
shorten your sales cycle, and reduce sensitivity to price.– Here are some examples of precipitous events:
• A competitor raises their prices• A competitor has a product quality problem• A competitor has a product delivery failure• A competitor has a scandal of some type• An outside force (e.g. regulation or industry shift) changes the
landscape
5 Characteristics
5. Your offer is compelling – – Even if you have a unique differentiation, it is easy to
switch, and there is a precipitous event, you still need to give prospects a good reason to give up on the competitor.
– The benefits of switching have to be greater than the comfort and inertia of the status quo. • This may require a financial incentive so strong that you lose
money on the initial transaction. • This is unacceptable for a one-time sale, but can be worthwhile if
the lifetime value of the new customer is large.
Highly Targeted
A highly targeted approach usually works better than broad-based advertising.
The biggest challenge in competitive marketing campaigns is locating those who already do business with your competitor.
A targeted pay-per-click campaign may be your best option.
Unintended Consequences
We advise our clients to take the high road in competitive marketing – because an overly negative attack can backfire and subject you to the Law of Unintended
Consequences.
If your campaign is in bad taste or not supported by a defensible business case, you may end up in a worse position than
where you started.
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About Fusion Marketing Partners
Christopher Ryan, CEO
We Do This:
Brand building/messagingWebsite optimizationContent creationLead generation
You Get This:Much greater levels of awarenessHigher quantities of qualified leadsAbility to generate faster revenue
Lots more information at:
http://FusionMarketingPartners.com/
http://Greatb2BMarketing.com (blog)
