Is it acceptable to compare your company product to your competitors product in an advertising practice?

The Federal Trade Commission promotes lawful comparative advertising as a great way to inform consumers and increase competition. Describing how your product is superior to your competitor’s can be a very effective positioning tool and possibly lead to significant economic gains. However, it can also invite litigation.

Is it legal to compare products?

Under U.S. law, use of a competitor’s trademark in accurate and non-deceptive comparative advertising is legal and does not constitute trademark infringement. Do not prominently position or otherwise highlight your competitor’s trademark in any manner that implies an affiliation with or sponsorship by your competitor.

How do you compare competitors?

Here are 5 steps you can follow to conduct your own competitor analysis.

1. Identify your competitors.
2. Gather information about your main competitors.
3. Analyze the competition’s strengths and weaknesses.
4. Talk to your competitors directly.
5. Identify your competitive advantage.

Is comparative advertisements Ethical should it be legally allowed to continue?

Conclusion. While advertising or selling products, the advertisers must keep in mind that any comparison or assertions made with any competitors’ products must not violate the legal provisions causing disparagement to other brands.

Why is comparative advertising illegal?

Comparative advertising is not illegal and there are no special rules to follow when creating comparative advertisements. When portraying comparative product examples advertisers must comply with the general legal principle applying to all advertising – ie that the campaign must not be misleading or deceptive.

What is the importance of collecting and interpreting data and information about competitors?

Forecasting your competitor’s moves is very important to minimize potential losses and it can help you in understanding your product better and the real market value of it. Monitoring your competition comprehensively makes you aware of your competitor’s product and its customer base.

What is the importance of marketing mix in developing a marketing strategy?

Identifying and arranging the elements of its marketing mix allows a business to make profitable marketing decisions at every level. These decisions help a business: Develop its strengths and limit its weaknesses. Become more competitive and adaptable in its market.

How will you determine the existing marketing practices of the various competitors?

How to Identify Direct Competitors

1. Market Research. Take a look at the market for your product and evaluate which other companies are selling a product that would compete with yours.
2. Solicit Customer Feedback.
3. Check Online Communities on Social Media or Community Forums.

Why is comparative marketing important?

Comparative advertising comes with big advantages for brands: it can improve brand awareness and reputation, and it can boost sales or customer growth. Just as important is the potential fallout, such as a decline in reputation or customers.

Is comparative advertising legal in USA?

Comparative advertising is legal if is truthful and not false or deceptive. If your competitor is making false or deceptive comparative advertising claims affecting your business, there are a variety of available legal claims and remedies. Federal Law.

What happens if a competitor makes a false comparative advertising claim?

If your competitor is making false or deceptive comparative advertising claims affecting your business, there are a variety of available legal claims and remedies. Federal Law. The Lanham Act is the exclusive federal law that governs litigation between competitors over comparative advertising.

What is the role of comparative advertising in marketing?

Competitors use different advertising, including comparative advertising, to promote their products and services. Comparative advertising can be a useful tool to promote a company’s goods, highlight the superior quality of a company’s goods over those of its competitors, and provide beneficial information to consumers.

Can you get sued for a comparative advertising campaign?

Even if you follow the letter of law when developing your comparative advertising campaign, you may still get sued. Being right doesn’t prevent someone from suing you. In most cases, it helps to act as a deterrent.