Summary the 22 immutable laws of marketing.docx

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