What can a marketer do to promote a product that is virtually identical to something a competitor offers? How can you set yourself apart and show superiority over the competition?
That’s the dilemma confronting AT&T and Verizon Wireless now that the latter is about to begin offering iPhones, ending AT&T’s previously exclusive access to Apple’s coveted smart phone. Prepare to witness a bruising marketing war!
With hardware and fundamental services that are nearly identical, AT&T and Verizon will seek to differentiate themselves by focusing on other points of difference:
* Service-plan pricing. The landscape is set for a bare-knuckle fight over service plans and pricing, probably the single most important area where the companies can differentiate themselves. Verizon announced this week that it will extend its $30 unlimited data plan to the data-demanding iPhone. AT&T, which abandoned a similar unlimited offer and replaced with it tiered plans based on usage, may have to reconsider its strategy.
* Network-quality. One of Verizon’s main points of attack against AT&T will be network quality, where Verizon is perceived to have a distinct reliability advantage. To fuel that perception, a study last year by Changewave Research cited AT&T’s network as dropping 5.8 percent of calls, compared with 2 percent for Verizon. Verizon has also capitalized on this with much of its advertising positioning on superior network reliability. Features: Both companies’ iPhone hardware is virtually identical, but differences in network technology mean AT&T’s customers can surf the Web while on a voice call, something Verizon’s network cannot accommodate. This could be a deal-breaker for some users.
* Speed. Depending on where you live, AT&T’s network can be up to three times faster than Verizon’s. Some multimedia users will refuse to accept such a cut in speed.
Incentives: You can expect potential offers like free shipping, free account activation, interest-free financing and free accessory kits to be used to entice buyers if this battle heats up to expected levels.
If your competitor is selling the same product you offer, make your points of difference clear to the marketplace. What makes you superior, particularly from a consumer’s point of view? Make sure consumers know the differences by promoting them with all of the marketing tactics available to you. You can bet that all we’re going to hear about during the next month is the iPhone.
Josh Sommers is president and CEO of Focus Media, a leading Hudson Valley advertising and public relations agency. He can be reached at josh@advertisingandpr.com or 294-3342, ext. 303. Read his blog at www.advertisingandpr.com. His column appears Fridays.
