22 immutable-laws-of-marketing

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22 immutable-laws-of-marketing

  1. 1. The 22 Immutable Laws of Marketing By Al Ries and Jack Trout
  2. 2. Definitions <ul><li>Immutable – (adjective) Unchanging or unable to change. </li></ul><ul><li>Law – (noun) A rule which cannot or should not be broken. </li></ul>
  3. 3. . The Law of Leadership <ul><li>It’s better to be first than it is to be better. </li></ul><ul><li>The basic issue in marketing is creating a category you can be first in. </li></ul><ul><li>E.g., most people know who flew across the Atlantic first, but not second. </li></ul><ul><li>Sometimes called: The First Mover Advantage </li></ul>
  4. 4. The Law of Category <ul><li>If you can’t be first in a category, set up a new category you can be first in. </li></ul><ul><li>E.g., most people don’t know who flew across the Atlantic third, but they know who the first woman to do that was. </li></ul><ul><li>Lexus was the first Japanese luxury car </li></ul>
  5. 5. . The Law of the Mind <ul><li>It’s better to be first in the mind than to be first in the marketplace. </li></ul><ul><li>E.g., Altair 8800 was the first PC, but Apple got first in the mind. </li></ul><ul><li>IBM was the first software vendor, but now we associate software with… </li></ul>
  6. 6. The Law of Perception <ul><li>Marketing is not a battle of products; it is a battle of perceptions. </li></ul><ul><li>Is Honda better than Toyota? Is Toyota better than Honda? </li></ul><ul><li>Which would you rather have? Why? </li></ul>
  7. 7. The Law of Focus <ul><li>The most powerful concept in marketing is owning a word in the prospect’s mind. </li></ul><ul><li>Or when the brand become synonymous with the category </li></ul><ul><li>E.g., Xerox this, FedEx that, and get me some Kleenex. </li></ul><ul><li>New ones: iPod & Blackberry </li></ul>
  8. 8. The Law of Exclusivity <ul><li>Two companies cannot own the same word in the prospect’s mind. </li></ul><ul><li>What companies do you think of when I say “operating system” or “mustard” or “frozen pizza”? </li></ul>
  9. 9. The Law of the Ladder <ul><li>What strategy to use depends on which rung you occupy on the ladder. </li></ul><ul><li>E.g., Avis is 2nd – we try harder. </li></ul><ul><li>Hardee’s is third or forth, and they try even harder—and trying to find an unoccupied rung </li></ul><ul><li>Being closer to the top usually leads to risk aversion </li></ul>
  10. 10. The Law of Duality <ul><li>In the long run, every market becomes a two horse race. </li></ul><ul><li>E.g., Coke v Pepsi, Kodak v Fuji, McDonalds and Burger King. </li></ul><ul><li>Dell v HP/Compaq </li></ul>
  11. 11. The Law of the Opposite <ul><li>If you’re shooting for second place, your strategy is determined by the leader. </li></ul><ul><li>E.g., Coke is an old soft drink, so Pepsi went successfully for the choice of a new generation. </li></ul>
  12. 12. The Law of Division <ul><li>Over time, a category will divide and become two or more categories. </li></ul><ul><li>e.g., computers, automobiles, coffee </li></ul>
  13. 13. The Law of Perspective <ul><li>Marketing effects take place over an extended period of time. </li></ul><ul><li>Don’t expect results to be instantaneous </li></ul><ul><li>A successful campaign can resonate for years </li></ul>
  14. 14. The Law of Line Extension <ul><li>There is an irresistible pressure to extend the equity of the brand. </li></ul><ul><li>Coming soon: Arm and Hammer Cat Food </li></ul>
  15. 15. The Law of Sacrifice <ul><li>You have to give up something in order to get something. </li></ul><ul><li>E.g., FedEx sacrificed other air freight options for small packages overnight, and owned the word “overnight”. </li></ul><ul><li>For years Honda focused all its efforts on the Civic (cvcc) and dominated the sub-compact market </li></ul>
  16. 16. The Law of Attributes <ul><li>For every attribute, there is an opposite, effective attribute. </li></ul><ul><li>E.g., Crest toothpaste fights cavities, but Close Up freshens breath. </li></ul><ul><li>PC is synonymous with business computing, Apple = creativity </li></ul>
  17. 17. The Law of Candour <ul><li>When you admit a negative, the prospect will give you a positive. </li></ul><ul><li>E.g., the 1970 VW will stay ugly longer – implies reliability not good looks. </li></ul><ul><li>Prospects know what the truth is, and they reward honesty </li></ul><ul><li>UPS’s brown trucks are ugly, but we love the truck </li></ul>
  18. 18. The Law of Singularity <ul><li>In each situation, only one move will produce substantial results. In a military sense, this is called the line of least expectation. </li></ul><ul><li>Choose the move where you expect the least chance of “surprises”. </li></ul><ul><li>E.g., the Allied invasion of Normandy. </li></ul>
  19. 19. The Law of Unpredictability <ul><li>Unless you write your competitors’ plans, you can’t predict the future. </li></ul><ul><li>It is best to be flexible and ready to react to changes in the market. </li></ul>
  20. 20. The Law of Success <ul><li>Success often leads to arrogance, and arrogance to failure. </li></ul><ul><li>GM was successful into the 70s but continued to lose share thru the 90s, and all that time they assumed they knew what consumers wanted </li></ul><ul><li>In 1985 IBM assumed they owned the PC market </li></ul>
  21. 21. The Law of Failure <ul><li>Failure is to be expected and accepted. </li></ul><ul><li>Ford almost lost the company on the Edsel in the 50’s </li></ul><ul><li>Radio Shack and Apple marketed some disappointing computers in the 80’s </li></ul>
  22. 22. The Law of Hype <ul><li>The situation is often the opposite of the way it appears in the press. When Ford was successful, the company said very little. Now it throws a lot of press conferences. </li></ul><ul><li>What do you think when a car dealer says, “We have the best prices in town.” </li></ul>
  23. 23. The Law of Acceleration <ul><li>Successful programs are not built on fads; they’re built on trends. Ninja Turtles could have been the next Barbie dolls if the market hadn’t been flooded, and if the makers had tried to turn the fad into a trend. </li></ul>
  24. 24. The Law of Resources <ul><li>Without adequate funding an idea won’t get off the ground. </li></ul><ul><li>Regardless of how good a product is, the only product that sells is the one the consumer is aware of. </li></ul>

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