Comparative Advertising

AAA

DEFINITION of 'Comparative Advertising'

A marketing strategy in which a company shows how its product or service is superior to that of its competitors by comparing the benefits and costs within the advertisement itself. A comparative advertising campaign may involve printing a side-by-side comparison of the features of a company's products next to those of its competitor.

INVESTOPEDIA EXPLAINS 'Comparative Advertising'

Comparative advertising is not used solely for the promotion of a product or service. It has become a common technique used in political advertisements, with one candidate listing how he or she would not have made the same specific decisions as the incumbent if elected. This type of advertising is popular with companies releasing new products, as the focus of the ad will be how the new product is better than products already on the market.

RELATED TERMS
  1. Parasitic Advertising

    A type of marketing that promotes one product at the cost of ...
  2. Product Life Cycle

    The period of time over which an item is developed, brought to ...
  3. Consumer Reports

    An evaluation of a new product, or a comparison between products, ...
  4. Word-Of-Mouth Marketing - WOM Marketing

    When a consumer's interest for a company's product or service ...
  5. Marketing Campaign

    Specific activities designed to promote a product, service or ...
  6. Promotion

    1.In terms of a career, a promotion refers to the advancement ...
RELATED FAQS
  1. How can a company control its holding costs?

    A company can control its holding costs through efficient management of its inventory and the efficiency of its overall logistics ... Read Full Answer >>
  2. How is the economic order quantity model used in inventory management?

    The economic order quantity model is used in inventory management by calculating the number of units a company should add ... Read Full Answer >>
  3. How is overhead distributed through total absorption costing?

    Through total absorption costing, overhead is distributed into indirect costs incurred from the manufacturing and production ... Read Full Answer >>
  4. What are the differences between absorption costing and variable costing?

    Absorption costing includes all costs, including fixed costs, in figuring the cost of production, while variable costing ... Read Full Answer >>
  5. What is the relationship between degree of operating leverage and profits?

    The degree of operating leverage directly reflects a company's cost structure, and cost structure is a significant variable ... Read Full Answer >>
  6. What should be included in a restaurant business model?

    The most important elements of a restaurant business model include the restaurant's unique value proposition, menu choices, ... Read Full Answer >>
Related Articles
  1. Home & Auto

    Don't Be Misled By Investment Advertising

    Investment companies and brokers want to sell. Unfortunately, this can result in promotional material that is not entirely frank, or far worse, truly misleading.
  2. Professionals

    Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.
  3. Professionals

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  4. Entrepreneurship

    10 Breakout Ideas For Small Businesses

    If your business has hit a wall, we've got the answer to break through and increase sales and earnings.
  5. Professionals

    The Lucrative World Of Third-Party Marketing

    Hedge funds don't sell themselves. Marketing experts reel in the big fish.
  6. Personal Finance

    The Top 6 Companies Owned By Google

    Google owns an incredible number of companies. These are its top six acquisitions.
  7. Professionals

    Why Advisors Should Focus on Relationships

    Successful financial advisors share a secret: It's about the people, not the numbers.
  8. Investing

    A Look Into The Digital Advertising Industry

    Digital advertising has outgrown the internet.
  9. Personal Finance

    The Top 11 Companies Owned By Facebook

    These 11 acquisitions show how big, and how rich, Facebook has become.
  10. Investing

    Do's & Don'ts Of Digital Marketing

    Digital marketing is not as scary or as complex as it is often made out to be, but there are certain best practices that you should follow to make it work.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center