Summary the 22 immutable laws of marketing.docx
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Summary the 22 immutable laws of marketing.docx
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Summarythe22immutablelawsofmarketing
The22ImmutableLawsofMarketing
ViolateThematYourOwnRisk!
byAlRies&JackTrout(summarizedbyPaulGruhn)
Introduction
Therearelawsofnature,sowhyshouldn’ttherebelawsofmarketing?
Youcanbuildagreat-lookingairplane,butit’snotgoingtogetoffthegroundunlessitadherestothelawsofphysics.Itthereforefollowsthatyoucanbuildagreatlookingmarketingprogram,onlytohaveoneoftheimmutablelawsofmarketingknockyouflatifyoudon’tknowwhattheyare.Andwhenacompanymakesamistaketoday,footprintsquicklyshowuponitsbackascompetitionrunsoffwithitsbusiness.Thelawsofmarketingarenotdifficult,infacttheyarequitesimple.Workingthingsoutinpractice,however,isanothermatter.Itmaylookeasy,butmarketingisnotagameforamateurs.
1)TheLawofLeadership(It’sbettertobefirst,thanitistobebetter.)
Manypeoplebelievethatthebasicissueinmarketingisconvincingprospectsthatyouhaveabetterproductorservice.Nottrue.Marketingisabattleofperception,notproducts.Ifyouhaveasmallmarketshareandyouhavetodobattlewithlarger,better-financedcompetitors,thenyourmarketingstrategywasprobablyfaultyinthefirstplace.Youviolatedthefirstlawofmarketing.Thebasicissueinmarketingiscreatingacategoryyoucanbefirstin.It’sthelawofleadership.
Inspiteofthesuperiorityofthisapproach,manydon’tfollowit.Theywaituntilamarketdevelopsandthenjumpinwithabetterproduct,oftenwiththeircorporatenameattached.Intoday’scompetitiveenvironment,ame-toproductwithalineextensionnamehaslittlehopeofbecomingabig,profitablebrand.(SeealsoLaw#12:
LineExtension.)
Theleadingbrandinanycategoryisalmostalwaysthefirstbrandintotheprospect’smind,e.g.,Hertz,IBM&Coke.Notonlydoesthefirstbrandusuallybecometheleader,butthesalesorderoffollow-upbrandsoftenmatchestheorderoftheirintroductions.Noteveryfirstisgoingtobecomesuccessful,however.Timingisanissue–yourfirstcouldbetoolatee.g.,inatelevisionera,itmaybetoolateforanationalnewspaper.Somefirstsarejustbadideasthatwillnevergoanywhere,e.g.,FrostyPaws,thefirsticecreamfordogs,isunlikelytomakeit.
Peopletendtostickwithwhatthey’vegot.Ifyoumeetsomeonealittlebetterthanyourspouse,it’snotreallyworthmakingtheswitch,whatwithattorneys’fees,dividingupthehouseandkids,etc.
Ifyou’resecond(orless)intheprospect’smind,areyoudoomed?
Notnecessarily.Fortunately,thereareotherlaws.
2)TheLawofCategory(Ifyoucan’tbefirstinacategory,setupanewcategoryyoucanbefirstin.)
Ifyoudidn’tgetintotheprospect’smindfirst,don’tgiveuphope.Findanewcategoryyoucanbefirstin.It’snotasdifficultasyoumightthink.
Whenyoulaunchanewproduct,thefirstquestiontoaskyourselfisnot,“Howisthisnewproductbetterthanthecompetition?
”but“Firstwhat?
”Inotherwords,whatcategoryisthisnewproductfirstin?
Thisiscountertoclassicmarketingthinking,whichisbrandoriented–howdoIgetpeopletoprefermybrand?
Forgetthebrand,thinkcategories.Whenyou’rethefirstinanewcategory,promotethecategory.Inessence,youhavenocompetition.Everyoneisinterestedinwhat’snew.Fewpeopleareinterestedinwhat’sbetter.
3)TheLawoftheMind(It’sbettertobefirstinthemind,thantobefirstinthemarketplace.)
Theworld’sfirstpersonalcomputerwastheMITSAltair8800.DuMontinventedthefirstcommercialtelevisionset.Duryeaintroducedthefirstautomobile.Hurleyintroducedthefirstwashingmachine.Allaregone.Issomethingwrongwiththefirstlawofleadership?
No,butthelawofthemindmodifiesit.Beingfirstinthemindiseverythinginmarketing.
Forexample,IBMwasn’tfirstinthemarketplacewiththemainframecomputer,RemingtonRandwaswithUNIVAC.Butthankstoamassivemarketingeffort,IBMgotintothemindfirstandwonthecomputerbattleearly.
Thesinglemostwastefulthingyoucandoinmarketingistrytochangeamind.Youcan’tchangeamindonceamindismadeup.
Ifyouwanttomakeabigimpressiononpeople,youcannotwormyourwayintotheirmindandthenslowlybuildupafavorableopinionoveraperiodoftime.Theminddoesn’tworkthatway.Youhavetoblastyourwayintothemind.Youneedtoblastyourway,ratherthanworm,becausepeopledon’tliketochangetheirminds.Oncetheyperceiveyouoneway,that’sit.
Gettingintoaprospect’smindcanbehelpedwithasimple,easy-to-remembername.Intheearlydays,fivepersonalcomputerswereinpositiononthelaunchingpad:
AppleII,CommodorePet,IMSAI8080,MITSAltair8800,andRadioShackTRS-80.Whichnameisthesimplestandeasiesttoremember?
4)TheLawofthePerception(Marketingisnotabattleofproducts,it’sabattleofperceptions.)
Manypeoplethinkmarketingisabattleofproducts.Inthelongrun,theyfigurethebestproductwillwin.That’sanillusion.Thereisnoobjectivereality,therearenofacts,andtherearenobestproducts.Mostmarketingmistakesstemfromtheassumptionthatyou’refightingaproductbattlerootedinreality.
Whatsomemarketingpeopleseeasthenaturallawsofmarketingarebasedonaflawedpremisethattheproductistheheroofthemarketingprogramandthatyou’llwinorloosebasedonthemeritsoftheproduct.Whichiswhythenatural,logicalwaytomarketaproductisinvariablywrong.Allthelawspresentedherearederivedfromtheexactoppositepointofview.
Onlybystudyinghowperceptionsareformedinthemindandfocusingyourmarketingprogramsonthoseperceptionscanyouovercomeyourbasicallyincorrectmarketinginstincts.Truthisnothingmoreorlessthanoneexpert’sperception.Andwho’stheexpert?
It’sanyonewhoisperceivedtobeanexpertinthemindofsomebodyelse.
WhyisCampbell’ssoupNo.1intheUSandnowhereintheUK?
WhyisHeinzsoupNo.1intheUKandafailureintheUS?
Marketingisabattleofperceptions,notproducts.Marketingistheprocessofdealingwiththoseperceptions.Whatmakesthebattleevenmoredifficultisthatcustomersfrequentlymakebuyingdecisionsbasedonsecond-handperceptions.Insteadofusingtheirownperceptions,theybasetheirbuyingdecisionsonsomeoneelse’sperceptionofreality.Thisisthe“everybodyknows”principle.
5)TheLawofFocus(Themostpowerfulconceptinmarketingisowningawordintheprospect’smind.)
Notacomplicatedword.Notaninventedword.Simplewordsarethebest,wordstakenrightoutofthedictionary.Ifyou’renotaleader,thenyourwordhastohaveanarrowfocus.Evenmoreimportant,however,yourwordhastobe‘available’inyourcategory.Nooneelsecanhavealockonit.
Themosteffectivewordsaresimpleandbenefitoriented.Nomatterhowcomplicatedtheproduct,nomatterhowcomplicatedtheneedsofthemarket,it’salwaysbettertofocusononewordorbenefitratherthantwoorthreeorfour.(Somewords,however,likeVolkswagen’sfahrvergnugen,arenotworthowning.)
Theessenceofmarketingisnarrowingthefocus.Youbecomestrongerwhenyoureducethescopeofyouroperations.Youcan’tstandforsomethingifyouchaseeverything.Somecompaniesaccepttheneedtonarrowthefocusandtrytoaccomplishthisstrategyinwaysthatareself-defeating,“We’llfocusonthequalityendofthemarket.”Thismaybegreatstuffinsidethecorporation,butoutsidethecorporationthemessagefallsapart.Doesanycompanyproclaimitselfasthe“unquality”corporation?
No,everybodystandsforquality.Asaresult,nobodydoes.
Youcan’tnarrowthefocuswithqualityoranyotherideathatdoesn’thaveproponentsfortheoppositepointofview.Youcan’tpositionyourselfasanhonestpolitician,becausenobodyiswillingtotaketheoppositeposition(althoughtheremaybeplentyofpotentialcandidates).
6)TheLawofExclusivity(Twocompaniescannotownthesamewordintheprospect’smind.)
Whenacompetitorownsawordorpositionintheprospect’smind,it’sfutiletoattempttoownthesameword.Plowingmoneyintosuchanattemptisawaste.
7)TheLawoftheLadder(Thestrategytousedependsonwhichrungyouoccupyontheladder.)
Whilebeingfirstintotheprospect’smindoughttobeyourprimarymarketingobjective,thebattleisn’tlostifyoufailinthisendeavor.TherearestrategiestouseforNo.2andNo.3brands.
Foreachcategory,thereisaproductladderinthemind.Oneachrungisabrandname.Yourmarketingstrategyshoulddependonhowsoonyougotintothemindandconsequentlywhichrungoftheladderyouoccupy.Thehigherthebetter,ofcourse.Themindisselective.Prospectsusetheirladdersindecidingwhichinformationtoacceptandwhichinformationtoreject.Ingeneral,amindacceptsonlynewdatathatisconsistentwithitsproductladderinthatcategory.Everythingelseisignored.
Howmanyrungsarethereonyourladder?
Itdependsonwhetheryourproductisahigh-interestorlow-interestproduct.Productsthatarepurchasedinfrequentlyusuallyhavefewrungsontheirladders.There’sarelationshipbetweenmarketshareandyourpositionontheladderintheprospect’smind.Youtendtohavetwicethemarketshareofthebrandbelowyouandhalfthemarketshareofthebrandaboveyou.Itmightbebettertobeasmallfishinabigpondthatbeabigfishinasmallpond.Inotherwords,it’ssometimesbettertobeNo.3onabigladderthanNo.1onasmallladder.
Beforestartinganymarketingprogram,askyourselfthefollowingquestions:
Whereareweontheladderintheprospect’smind?
Onthetoprung?
Onthesecondrung?
Orm
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