GROUP MEMBERS

PRAVIN PUNIT SWEETY PRIYA

IMMUTABLE

OF MARKETING

Al Ries

Jack Trout

LAW 1 THE LAW OF LEADERSHIP

ITS BETTER TO BE THE FIRST THAN IT IS TO BE BETTER

 Its much easier to get into the mind of consumers 1st than to try to convince people.
Eg:

 Once the company is 1st & gets the consumer to buy their brands, often they wont bother to switch

 The 1st company into the market has the opportunity to have its brand name adopted as the GENERIC category name.

Eg: Toothpaste Photocopy

So, the competitors will find it difficult to fight with the competitor as long as they keep their products up to date & of comparable quality

LAW 2 THE LAW OF THE CATEGORY

IF YOU CANNOT BE FIRST IN A CATEGORY, CHANGE THE NATURE OF THE CATEGORY OR SET UP A NEW CATEGORY YOU CAN BE FIRST IN

Eg:

How is this new product better than the competition? But First what? In early days, Eg: Hertz sold rent a car service Coca Cola sold refreshment

LAW 3 THE LAW OF THE LADDER

THE STRATEGY TO USE DEPENDS ON WHICH RUNG YOU OCCUPY ON THE LADDER

 In long run, generally three brands dominate the market. How many rungs are there in a ladder for a product depends on whether the product is a high interest or a low interest product. Products used everyday tend to be high interest products
cereals

toothpaste

 Products purchased infrequently few rungs

furniture

Unpleasant experience few rungs

 Sometimes own product can be too small. It might be better to be a small fish in a big pond then to be a big fish in a small pond

In other words, its sometimes better to be No. 3 on a big ladder than to be No.1 on a small ladder

LAW 4 THE LAW OF DUALITY

IN THE LONG RUN, EVERY MARKET BECOMES A TWO-HORSE RACE

 1 is old reliable & stable brand & another is new & upstart brand Eg: Burgers(Philippines) Jollibee(Filipinos) Hamburgers, Crispy Fried chicken. 200 outlets with turnover of US$2.30

LAW 5 THE LAW OF THE MIND & PERCEPTION

MARKETING IS NOT A BATTLE OF PRODUCTS, ITS A BATTLE OF PERCEPTIONS; AND SOMETIMES ITS BETTER TO BE FIRST IN THE MIND THAN TO BE FIRST IN THE MARKET PLACE

 No. 1 position in the mind. Great ideas are one thing & getting them into the minds of others is another. China & other Asian countries Product-quality perception Having a strong position in consumers mind can work in a positive as well as negative way.

 Only best products will not win the marketing battle. Attributes & figures do not make winners, perceptions do. You believe what you want to believe. All truth is relative to your mind.

Therefore, the task of marketers is to establish or change consumer perceptions, because if they dont they will not win the battle.

LAW 6 THE LAW OF FOCUS

THE MOST POWERFUL CONCEPT IN MARKETING IS OWNING A WORD IN THE PROSPECTS MIND

 Find a way to own a word in the mind of the prospect. The leader owns the word. Think big bikes, Think Harley-Davidson A word, the competitors cant take.. Narrow the focus & reduce the scope of your operations.

 You cant stand for something if you chase after everything.

There are some words that are difficult to own but still companies chase after them. Eg.Quality.

LAW 7 THE LAW OF EXTENSION

THERE IS AN IRRESITABLE PRESSURE TO EXTEND THE EQUITY OF THE BRAND

 Line extensions & brand extensions

Sometimes extensions plants the seeds for future problems.

 Its better to be strong in one area than work in many.

Some companies resist the temptation to extend their line.

LAW 8 THE LAW OF EXCLUSIVITY & SUPERIORITY

OWNING A SUPERIOR POSITION IN THE CONSUMERS MIND IS VITAL; MARKETING IS A CONTINUOS SEARCH FOR EXCLUSIVITY

 It concentrates on not just owning a word in the prospects mind, but owning words, relationships & self expressions. Desire & wealth Asian culture.

Exclusivity rules among the rich & the famous

LAW 9 THE LAW OF DIVISION

OVERTIME, A CATEGORY WILL DIVIDE AND BECOME TWO OR MORE CATEGORIES

 Ever expanding ocean Each segment reason for existence. Categories are dividing, not combining.

To maintain dominance - different name Mistake done: well known brand name used for another category
Understand your market segment & when you create a division, dont confuse prospects.

LAW 10 THE LAW OF THE HEART (EMOTION)

MARKETING STRATEGIES WITHOUT HEART WILL NOT WORK

 Emotion stimulates 3000 times faster than rational thought Rational Emotional Do I need it? I want it! What does it do? It looks cool! How does it compare I only want this one! to brand X? Dont chase share of wallets chase Share of Heart

LAW 11 THE LAW OF ATTRIBUTES

WHEN YOU HAVE TO FOCUS ON ATTRIBUTES, FOR EVERY ONE OF THEM, THERE IS A OPPOSITE & EFFECTIVE ATTRIBUTE

 Companies to prove themselves or to demonstrate innovation. Opposite works Similar wont do Smart companies turn their attributes into brand personality characteristics. Attributes are easily copied best one different route

LAW 12 THE LAW OF CANDOR

WHEN YOU ADMIT A NEGATIVE, THE PROSPECT WILL GIVE YOU A POSITIVE

 Candor is disarming Admitting a problem is something that very few companies do. It must be used carefully & with great skill. Honesty is the best Policy

LAW 13 THE LAW OF SACRIFICE

YOU HAVE TO GIVE SOMETHING UP IN ORDER TO GET SOMETHING

 3 things to sacrifice: Product line, Target market,

Constant change.
Good things come to those who sacrifice.

LAW 14 THE LAW OF SUCCESS

SUCCESS OFTEN LEADS TO ARROGANCE, AND ARROGANCE TO FAILURE

 Ego is the enemy of successful marketing Objectivity. Ego is an effective driving force.

Success leads to failure

Small companies closer to front not tainted by Law of Success.

LAW 15 THE LAW OF FAILURE

FAILURE IS TO BE EXPECTED AND ACCEPTED

 Admitting the mistake & not doing anything for it is bad for companys future. If a company is going to operate in an ideal way, it will take teamwork, esprit de corps, & a self sacrificing leader.

LAW 16 THE LAW OF UNPREDICTABILITY

UNLESS YOU WRITE YOUR COMPETITORS PLANS, YOU CANT PREDICT THE FUTURE

 COMPLACENCY Were doing okay now, so why change? E.G. In Philippines Colgate was outclassed by Hapee

 One way to cope with an unpredictable world is to build an enormous amount of flexibility into the organization. E.G. Trend in Asia towards good health. Murphys law The unexpected will always happen. Companies are trying to press the HOT BUTTONS that turn the consumers on.

LAW 17 THE LAW OF HYPE

THE SITUATION IS OFTEN THE OPPOSITE OF THE WAY IT APPEARS IN THE PRESS

 The only revolutions you can predict are the ones you have already started. Capturing the imagination of the public is not the same as revolutionizing a market.

Real revolutions dont arrive at noon.

LAW 18 THE LAW OF ACCELERATION

SUCCESSFUL PROGRAMS ARE NOT BUILT ON FADS, THEYRE BUILT ON TRENDS

 A fad is like a wave in the ocean. A trend is like a tide. Dampen the fad.

 Quantum leap from fad to trend: Get into the mind of the consumer. Allow the brand to grow. Develop & mature with its target audience.

LAW 19 THE LAW OF PERSPECTIVE

MARKETING EFFECTS TAKE PLACE OVER AN EXTENDED PERIOD OF TIME

 Is alcohol a stimulant or depressant ? Many marketing activities exhibit the same phenomenon. E.G. Coupon weapon

 Building a brand takes time, Brands bring premium prices & short-term sales boosters dilute the brand image.

LAW 20 THE LAW OF THE OPPOSITE

IF YOURE SHOOTING FOR THE SECOND PLACE, YOUR STRATEGY IS DETERMINED BY THE LEADER

 In strength there is weakness. Position yourself against the leader. E.G. Absolut vodka

 The law of opposite is a twoedged sword. E.G. Becks beer couldnt be first imported beer (Heineken), nor the first German beer (Lowenbrau). Youve tasted the German beer thats the most popular in America & now taste the German beer that is the most popular in Germany.

LAW 21 THE LAW OF ORIGIN

WHERE BRANDS COME FROM IS OFTEN MORE IMPORTANT THAN HOW GOOD THEY ARE

 Accepted in the market place, need to have credibility. Names are a perceptual influence & can turn people on or off.

LAW 22 THE LAW OF RESOURCES

WITHOUT ADEQUATE FUNDING & EXPERTISE AN IDEA WONT GET OFF THE GROUND, AND A BRAND CANNOT BE BUILT

 Even the best idea in the world wont go very far without money to get it off the ground. Marketing is a game fought in the mind of the prospect. Lack of support from the top management Brands are assets.