How to Spend Money to Help Your Competitors

Fellow b5′er Jayvee makes a good point over at Cellphone 9:

After the conference, I approached him and asked him why the comparison has to be made to the iPhone all the time. I interjected that mentioning a competitor’s product during your own press conference made it sound more like a fit of desperation on your end. The truth is, the iPhone and his product are two different things.

It’s so easy to agree with this! While Jayvee makes a case for the apparent non-idiocy of tech and lifestyle journalists—who know that there are other products out there, it’s also fitting to concentrate on the economics of mentioning the iPhone.

From personal experience, gadget manufacturers (and companies in general) spend a lot of money to wine and dine the media. Not to bribe them with free gadgets and all-expense paid trips mind you, but to make them feel comfortable as they present their products for the first time.

This profligate spending indicates two things: PR flaks (or at least those who are supposedly competing with Apple and the iPhone) don’t understand how to maximize the free exposure possible with the internets, and don’t really know how to maximize their valuable funds.

The point is that, why mention a competing product at all? You’ve spent so much money to rent a venue, send out invitations, and prepare some food. Not to mention the expense of setting aside review units for distribution to media, instead of selling them for a profit. Do you want to waste your budget on helping a competitor? Probably not.

It’s as if pr companies and marketing managers are buying into Apple’s line that the iPhone is the best smartphone out there, and that competing with it is like scaling a sheer cliff to escape from rising lava; nearly impossible, but still required nonetheless. Talk about having faith in your own offerings!

Indeed, product managers should maximize what they’re paying for. Their events are all about their product, their competitive advantage, and their brand. And that’s what they should keep it about. Why mention a competitor, no matter how apparently prominent it is, and leave people-in-the-know sighing as they enjoy the free food and drinks?