While advertisements comparing products are not unusual in the marketplace, seldom are these ads really negative about a competing product or service. By negative, we mean boldly stating information about a competitor’s weaknesses to make sure consumers think of it as inferior.
(However, political ads tend to be very negative. In this case, the campaigns from Candidate A are promoting the mistakes that Candidate B has made so that voters are aware of the weakness and will choose Candidate A.)
While most students will not know about much about the “Cola Wars” of the 1980s between Coca-Cola and Pepsi, those two companies went head-to-head to portray the other brand as tasteless. (Remember the “Pepsi Challenge”?) However, the focus on product deficiencies eventually led to lower consumer confidence in both brands.
McDonald’s took on Starbucks with a billboard campaign about pricing. In other words, why spend $4 on a coffee when McDonald’s sells coffee at a much lower price. And Mac took direct aim at PC inefficiencies with its “Get a Mac” campaign.
Another approach is the use of negative information in Public Service Announcements (PSA). For example, a PSA might show the very negative after effects of a drunk driving accident. It’s a warning though, not an ad designed to gain sales.
In general, highlighting a competitor’s weakness leads consumers to examine the similarities between products, negatively impacting the entire product category. After all, if Company A attacks Company B, then Company B will likely retaliate and attack Company A. And round it goes… Both companies lose.
What is your opinion?
Group Activities and Discussion Questions:
- Discuss the various approaches to advertising, including competitive advertising.
- When is competitive advertising good to do? When should it not be done?
- Divide students into teams. Have each team find examples of negative, competitive advertising (but not in politics).
- Show Pepsi Challenge ad: https://youtu.be/eiO_JES4yBY?si=cr0csSsSZJUBwsI2
- Show “Get a Mac” Mac vs. PC ads: https://youtu.be/0eEG5LVXdKo?si=Fzzd_tYsdMnZC3um
- Discuss with students why a negative ad approach was used.
- In teams, have students develop a negative ad comparing two alternatives.
- What are the risks? Rewards?
- Have each team discuss their negative ad to debrief the exercise.
Source: Bostanci, G. & Yildirim, P. (25 January 2024). Does negative advertising pay off for consumer brands? Wall Street Journal; Murray, S. (6 February 2024). Are attack ads effective? Knowledge at Wharton.
