The 22 Immutable Laws Of Marketing - Al Ries & Jack Trout - Book Notes
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1. The Law of Leadership
It’s better to be first than it is to be better. The basic issue in marketing is creating a category you can be first in. It’s much easier to get into the mind first than to try to convince someone you have a better product that the one that did get there first. (Roger Bannister was the first person to run a 4 minute mile. Who was the second?) If you’re introducing the first brand in a new category, you should always try to select a name that can work generically. Marketing is a battle of perception, not products. |
2. The Law of the Category
If you can’t be the first in a category, set up a new category you can be first in.
When you launch a new product, the first question to ask yourself is not “How is this product better than the competition?” but “First what?” In other words, what category is this new product first in?
Everyone is interested in what’s new. Few people are interested in what’s better.
When you’re first in a new category, promote the category. In essence, you have no competition.
3. The Law of the Mind
It’s better to be first in the mind than to be first in the marketplace.
The single most wasteful thing you can do in marketing is try to change a mind.
People don’t like to change their minds, so you have to blast your way in.
4. The Law of Perception
Marketing is not a battle of products, it’s a battle of perceptions.
It’s an illusion. There is no objective reality. There are no facts. There are no best products. All that exists in the world of marketing are perceptions in the minds of the customer or prospect. The perception is the reality. Everything else is an illusion.
5. The Law of Focus
The most powerful concept in marketing is owning a word in the prospect’s mind.
Not a complicated word. Not an invented one. You “burn” your way into the mind by narrowing the focus on a single word or concept.
If you’re not the leader, then your word has to have a narrow focus. Even more important, however, your word has to be “available” in your category. No one else can have a lock on it.
The word - simple and benefit orientated.
The halo effect - if you strongly establish one benefit, the prospect is likely to give you a lot of other benefits too. (E.g. A “safer” car implies better design and engineering)
Words come in different varieties. They can be benefit related (cavity prevention), service related (home delivery), audience related (younger people), or sales related (preferred brand).
The essence of marketing is narrowing the focus. You become stronger when you reduce the scope of your operations. You can’t stand for something if you chase after everything.
6. The Law of Exclusivity
Two companies cannot own the same word in the prospect’s mind.
Despite the disaster stories, many companies continue to violate the law of exclusivity. You can’t change people’s minds once they are made up. In fact, what you often do is reinforce your competitor’s position by making its concept more important.
7. The Law of the Ladder
The strategy to use depends on which rung you occupy on the ladder.
...The Avis did one the one thing you have to do to make progress inside the mind of the prospect. They acknowledged their position on the ladder. “Avis is only No.2 in rent-a-cars. So why go with us? We try harder”
The mind is selective. Prospects use their ladder in deciding which information to accept and which to reject. In general, a mind accepts only new data which is consistent with its product ladder in that category. Everything else is ignored.
Products that are purchased infrequently (furniture, lawn mowers, luggage) usually have few rungs on their ladders.
Products that involve a great deal of personal pride (automobiles, watches, cameras) are also high-interest products with many rungs on their ladders even though they are purchased infrequently.
Where are we on the ladder in the prospect’s mind? On the top rung? On the second rung? Or maybe we’re not on the ladder at all.
Then make sure your program deals realistically with your position on the ladder.
8. The Law of Duality
In the long run, every market becomes a two-horse race.
Furthermore, the law predicts that the leader will lose market share and No.2 will gain.
Knowing that marketing s a two-horse race in the long run can help you plan strategy in the short run (e.g. by instead carving out a profitable niche)
9. The Law of the Opposite
If you’re shooting for second place, your strategy is determined by the leader.
In strength there is weakness. Wherever the leader is strong, there is an opportunity for a would-be no.2 to turn the tables.
You must discover the essence of the leader and then present the prospect with the opposite. (In other words, don’t try to be better, try to be different.) It’s often the upstart versus old reliable.
When you look at customers in a given product category, there seem to be two kinds of people. There are those who want to buy from the leader and there are those who don’t want to buy from the leader. A potential No.2 has to appeal to the latter group.
In other words, by positioning yourself against the leader, you take business away from all the other alternatives to No.1.
Too many potential No.2 brands try to emulate the leader. This is usually an error. You must present yourself as the alternative.
But don’t simple knock the competition. The law of the opposite is a two-edged sword. It requires honing in on a weakness that your prospect will quickly acknowledge. (One whiff of Listerine and you know that your mouth will smell like a hospital.) Then quickly twist the sword. (Scope is the good tasting mouthwash that kills germs).
Marketing is often a battle for legitimacy. The first brand that captures the concept is often able to portray its competitors as illegitimate pretenders.
10. The Law of Division
Over time, a category will divide and become two or more categories.
The way for the leader to maintain its dominance is to address each emerging category with a different brand name.
11. The Law of Perspective
Marketing effects take place over an extended period of time.
12. The Law of Line Extension
There’s an irresistible pressure to extend the equity of the brand - this is usually a bad idea and leads to losses.
When you try to be all things to all people, you inevitably wind up in trouble. “‘I’d rather be strong somewhere, than weak everywhere.”
Invariably, the leader in any category is the brand that is not line extended.
More is less. The more products, the more markets, the more alliances a company makes, the less money it makes.
Less is more. If you want to be successful today, you have to narrow the focus in order to build a position in the prospect’s mind.
13. The Law of Sacrifice
You have to give up something in order to get something.
The law of sacrifice is the opposite to the law of line extension. If you want to be successful today, you should give something up.
There are three things to sacrifice: product line, target market, and constant change.
Take the retail industry. Which retailers are in trouble today? The department stores. And what’s a department store? A place that sells everything. That’s a recipe for disaster.
The target is not the market. That is, the apparent target of your marketing is not the same as the people who will actually buy your product. Even though Pepsi-Cola’s target was the teenager, the market was everybody. The 50-year old guy who wants to think he’s 29 will drink the Pepsi.
Good things come to those who sacrifice.
14. The Law of Attributes
For every attribute, there is an opposite, effective attribute.
It’s much better to search for an opposite attribute that will allow you to play off against the leader. The key word here is opposite - similar won’t do.
Marketing is a battle of ideas. So if you are to succeed, you must have an idea or attribute of your own to focus your efforts around. Without one, you had better have a low price. A very low price.
15. The Law of Candor
When you admit a negative, the prospect will give you a positive.
Admit a negative, twist it into a positive.
Candor is very disarming. Every negative statement you make about yourself is instantly accepted as truth. Positive statements, on the other hand, are looked at as dubious at best. Especially in an advertisement.
Since you can’t change a mind once it’s made up, your marketing efforts have to be devoted to ideas and concepts already installed in the brain. You have to use your marketing programs to “rub it in.”
You have to shift quickly from the widely accepted negative to the positive. The purpose of candor isn’t to apologise. The purpose of candor is to set up a benefit that will convince your prospect.
16. The Law of Singularity
In each situation, only one move will produce substantial results.
History teaches that the only thing that works in marketing is the single, bold stroke. Furthermore, in any given situation there is only one move that will produce substantial results.
Military strategist and author B.H. Liddell Hart calls this bold stroke “the line of least expectation.”
17. The Law of Unpredictability
Unless you’re writing your competitors’ plans, you can’t predict the future.
Good short-term planning is coming up with that angle or word that differentiates your product or company. Then you set up a coherent long term marketing direction that builds a program to maximise that idea or angle. It’s not a long term plan, it’s a long term direction.
18. The Law of Success
Success often leads to arrogance, and arrogance to failure.
The brand got famous because you made the right marketing moves. You got into the mind first. You narrowed the focus. You preempted a powerful attribute.
19. The Law of Failure
Failure is to be expected and accepted.
Too many companies try to fix things rather than drop things.
20. The Law of Hype
The situation is often the opposite of the way it appears in the press.
When things are going well, a company doesn’t need the hype. When you need the hype, it usually means you’re in trouble.
21. The Law of Acceleration
Successful programs are not built on fads, they’re built on trends.
The most successful entertainers are the ones who control their appearances. They don’t overextend themselves. They’re not all over the place. They don’t wear out their welcome.
22. The Law of Resources
You need funding to get an idea off the ground.
If you can’t be the first in a category, set up a new category you can be first in.
When you launch a new product, the first question to ask yourself is not “How is this product better than the competition?” but “First what?” In other words, what category is this new product first in?
Everyone is interested in what’s new. Few people are interested in what’s better.
When you’re first in a new category, promote the category. In essence, you have no competition.
3. The Law of the Mind
It’s better to be first in the mind than to be first in the marketplace.
The single most wasteful thing you can do in marketing is try to change a mind.
People don’t like to change their minds, so you have to blast your way in.
4. The Law of Perception
Marketing is not a battle of products, it’s a battle of perceptions.
It’s an illusion. There is no objective reality. There are no facts. There are no best products. All that exists in the world of marketing are perceptions in the minds of the customer or prospect. The perception is the reality. Everything else is an illusion.
5. The Law of Focus
The most powerful concept in marketing is owning a word in the prospect’s mind.
Not a complicated word. Not an invented one. You “burn” your way into the mind by narrowing the focus on a single word or concept.
If you’re not the leader, then your word has to have a narrow focus. Even more important, however, your word has to be “available” in your category. No one else can have a lock on it.
The word - simple and benefit orientated.
The halo effect - if you strongly establish one benefit, the prospect is likely to give you a lot of other benefits too. (E.g. A “safer” car implies better design and engineering)
Words come in different varieties. They can be benefit related (cavity prevention), service related (home delivery), audience related (younger people), or sales related (preferred brand).
The essence of marketing is narrowing the focus. You become stronger when you reduce the scope of your operations. You can’t stand for something if you chase after everything.
6. The Law of Exclusivity
Two companies cannot own the same word in the prospect’s mind.
Despite the disaster stories, many companies continue to violate the law of exclusivity. You can’t change people’s minds once they are made up. In fact, what you often do is reinforce your competitor’s position by making its concept more important.
7. The Law of the Ladder
The strategy to use depends on which rung you occupy on the ladder.
...The Avis did one the one thing you have to do to make progress inside the mind of the prospect. They acknowledged their position on the ladder. “Avis is only No.2 in rent-a-cars. So why go with us? We try harder”
The mind is selective. Prospects use their ladder in deciding which information to accept and which to reject. In general, a mind accepts only new data which is consistent with its product ladder in that category. Everything else is ignored.
Products that are purchased infrequently (furniture, lawn mowers, luggage) usually have few rungs on their ladders.
Products that involve a great deal of personal pride (automobiles, watches, cameras) are also high-interest products with many rungs on their ladders even though they are purchased infrequently.
Where are we on the ladder in the prospect’s mind? On the top rung? On the second rung? Or maybe we’re not on the ladder at all.
Then make sure your program deals realistically with your position on the ladder.
8. The Law of Duality
In the long run, every market becomes a two-horse race.
Furthermore, the law predicts that the leader will lose market share and No.2 will gain.
Knowing that marketing s a two-horse race in the long run can help you plan strategy in the short run (e.g. by instead carving out a profitable niche)
9. The Law of the Opposite
If you’re shooting for second place, your strategy is determined by the leader.
In strength there is weakness. Wherever the leader is strong, there is an opportunity for a would-be no.2 to turn the tables.
You must discover the essence of the leader and then present the prospect with the opposite. (In other words, don’t try to be better, try to be different.) It’s often the upstart versus old reliable.
When you look at customers in a given product category, there seem to be two kinds of people. There are those who want to buy from the leader and there are those who don’t want to buy from the leader. A potential No.2 has to appeal to the latter group.
In other words, by positioning yourself against the leader, you take business away from all the other alternatives to No.1.
Too many potential No.2 brands try to emulate the leader. This is usually an error. You must present yourself as the alternative.
But don’t simple knock the competition. The law of the opposite is a two-edged sword. It requires honing in on a weakness that your prospect will quickly acknowledge. (One whiff of Listerine and you know that your mouth will smell like a hospital.) Then quickly twist the sword. (Scope is the good tasting mouthwash that kills germs).
Marketing is often a battle for legitimacy. The first brand that captures the concept is often able to portray its competitors as illegitimate pretenders.
10. The Law of Division
Over time, a category will divide and become two or more categories.
The way for the leader to maintain its dominance is to address each emerging category with a different brand name.
11. The Law of Perspective
Marketing effects take place over an extended period of time.
12. The Law of Line Extension
There’s an irresistible pressure to extend the equity of the brand - this is usually a bad idea and leads to losses.
When you try to be all things to all people, you inevitably wind up in trouble. “‘I’d rather be strong somewhere, than weak everywhere.”
Invariably, the leader in any category is the brand that is not line extended.
More is less. The more products, the more markets, the more alliances a company makes, the less money it makes.
Less is more. If you want to be successful today, you have to narrow the focus in order to build a position in the prospect’s mind.
13. The Law of Sacrifice
You have to give up something in order to get something.
The law of sacrifice is the opposite to the law of line extension. If you want to be successful today, you should give something up.
There are three things to sacrifice: product line, target market, and constant change.
Take the retail industry. Which retailers are in trouble today? The department stores. And what’s a department store? A place that sells everything. That’s a recipe for disaster.
The target is not the market. That is, the apparent target of your marketing is not the same as the people who will actually buy your product. Even though Pepsi-Cola’s target was the teenager, the market was everybody. The 50-year old guy who wants to think he’s 29 will drink the Pepsi.
Good things come to those who sacrifice.
14. The Law of Attributes
For every attribute, there is an opposite, effective attribute.
It’s much better to search for an opposite attribute that will allow you to play off against the leader. The key word here is opposite - similar won’t do.
Marketing is a battle of ideas. So if you are to succeed, you must have an idea or attribute of your own to focus your efforts around. Without one, you had better have a low price. A very low price.
15. The Law of Candor
When you admit a negative, the prospect will give you a positive.
Admit a negative, twist it into a positive.
Candor is very disarming. Every negative statement you make about yourself is instantly accepted as truth. Positive statements, on the other hand, are looked at as dubious at best. Especially in an advertisement.
Since you can’t change a mind once it’s made up, your marketing efforts have to be devoted to ideas and concepts already installed in the brain. You have to use your marketing programs to “rub it in.”
You have to shift quickly from the widely accepted negative to the positive. The purpose of candor isn’t to apologise. The purpose of candor is to set up a benefit that will convince your prospect.
16. The Law of Singularity
In each situation, only one move will produce substantial results.
History teaches that the only thing that works in marketing is the single, bold stroke. Furthermore, in any given situation there is only one move that will produce substantial results.
Military strategist and author B.H. Liddell Hart calls this bold stroke “the line of least expectation.”
17. The Law of Unpredictability
Unless you’re writing your competitors’ plans, you can’t predict the future.
Good short-term planning is coming up with that angle or word that differentiates your product or company. Then you set up a coherent long term marketing direction that builds a program to maximise that idea or angle. It’s not a long term plan, it’s a long term direction.
18. The Law of Success
Success often leads to arrogance, and arrogance to failure.
The brand got famous because you made the right marketing moves. You got into the mind first. You narrowed the focus. You preempted a powerful attribute.
19. The Law of Failure
Failure is to be expected and accepted.
Too many companies try to fix things rather than drop things.
20. The Law of Hype
The situation is often the opposite of the way it appears in the press.
When things are going well, a company doesn’t need the hype. When you need the hype, it usually means you’re in trouble.
21. The Law of Acceleration
Successful programs are not built on fads, they’re built on trends.
The most successful entertainers are the ones who control their appearances. They don’t overextend themselves. They’re not all over the place. They don’t wear out their welcome.
22. The Law of Resources
You need funding to get an idea off the ground.
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