MineZone Wiki

Notes from The 22 Immutable Laws of Marketing by Al Ries & Jack Trout

Law of. . .

1. Leadership: It is 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 better to be first than it is to be better."
2. the Category: If you can't be first in a category, set up a new category you can be first in.
   • Lindbergh was the first to fly solo over the Atlantic. Hinkler was the second. Earhart the third, but the first woman.
3. the Mind: It's better to be first in the mind than to be first in the marketplace.
   • "It is better to be first in the prospect's mind than first into the marketplace. . . Being first in the mind is everything in marketing. Being first into the marketplace is important only to the extent that it allows you to get into the mind first."
4. Perception: Marketing is not a battle of products, it's a battle of perceptions.
5. Focus: The most powerful concept in marketing is owning a word in the prospect's mind. (ie, copier = Xerox, chocolate bar = Hershey's, etc.)
   • benefit related (cavity prevention)
   • service related (home deliver)
   • audience related (younger people)
   • sales related (preferred brand)
6. Exclusivity: Two companies cannot own the same word in the prospect's mind.
   • "When a competitor owns a word or position in the prospect's mind, it is futile to attempt to own the same word."
7. the Ladder: The strategy to use depends on which rung you occupy on the ladder.
   • "There's a relationship between market share and your position on the ladder in the prospect's mind. You tend to have twice the market share of the brand below you and half the makret share of the brand above you."
   • "What's the maximum number of rugns on a ladder? There seems to be a rule of seven in the prospect's mind."
8. Duality: In the long run, every market becomes a two-horse race. (ie, #1 = Coke, #2 = Pepsi, #3 = Royal who?)
9. the Opposite: If you're shooting for second place, your strategy is determined by the market leader.
   • "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."
10. Division: Over time, a category will divide and become two or more categories.
11. Perspective: Marketing effects take place over an extended period of time.
12. Line Extension: There's an irresistible pressure to extend the equity of the brand
    • "One day a company is tightly focused on a single product that is highly profitable. The next day the same company is spread thin over many products and is losing money."
13. Sacrifice: You have to give up something in order to get something.
    • "The law of sacrifice is the opposite of 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."
14. Attributes: For every attribute, there is an opposite effective attribute.
    • "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. Candor: When you admit a negative, the prospect will give you a positive.
    • "...it may come as a surprise to you that one of the most effective ways to get into a prospect's mind is to first admit a negative and then twist it into a positive."
    • "Avis is only No. 2 in rent-a-cars."
    • "With a name like smucker's it has to be good."
    • "The 1970 VW will stay ugly longer."
    • Listerine: "The taste you hate twice a day.
16. Singularity: In each situation, only one move will produce substantial results.
    • "Most often there is only one place where a competitor is vulnerable. And that place should be the focus of the entire invading force."
17. Unpredictability: Unless you write your competitor's plans, you can't predict the future.
    • "Implicit in most marketing plans is an assumption about the future. Yet marketing plans based on what will happen in the future are usually wrong."
18. Success: Success often leads to arrogance, and arrogance to failure.
    • "Ego is the enemy of successful marketing. Objectivity is what's needed."
19. Failure: Failure is to be expected and accepted.
    • "Admitting a mistake and not doing anything about it is bad for your career. A better strategy is to recognize failure early and cut your losses."
20. 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. Acceleration: Successful programs are not built on fads, they're built on trends.
    • "If you were faced with a rapidly rising business, with all the characteristics of a fad, the best thing you could do would be to dampen the fad. By dampening the fad, you stretch the fad out and it becomes more like a trend."
22. Resources: Without adequate funding, an idea won't get off the ground.
    • "Marketing is a game fought in the mind of the prospect. You need money to get into a mind. And you need money to stay in the mind once you get there."

See also: Book Summary: The 22 Immutable Laws of Marketing