GROUP MEMBERS

• PRAVIN

• PUNIT

• SWEETY

• PRIYA

IMMUTABLE

OF MARKETING

Al Ries Jack Trout

LAW 1 – THE LAW OF LEADERSHIP

IT’S 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

toothpaste

cereals

• Products purchased infrequently – few rungs

• Unpleasant experience – few rungs

furniture

• 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, it’s 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,

IT’S 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 consumer’s 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 don’t 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 competitor’s can’t take..

• Narrow the focus & reduce the scope of your operations.

• You can’t 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 CONSUMER’S MIND

IS VITAL; MARKETING IS A

CONTINUOS SEARCH FOR EXCLUSIVITY

• It concentrates on not just owning a word in the prospect’s 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, don’t 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?

• Don’t 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 company’s 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

CAN’T PREDICT THE FUTURE

• COMPLACENCY – “We’re 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.

• Murphy’s 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 don’t arrive at noon.

LAW 18 – THE LAW OF ACCELERATION

SUCCESSFUL PROGRAMS

ARE NOT BUILT ON FADS,

THEY’RE 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 YOU’RE 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 two-edged sword.

• E.G. Beck’s beer – couldn’t be first imported beer (Heineken), nor the first German beer (Lowenbrau).

“You’ve tasted the German beer that’s 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 WON’T GET

OFF THE GROUND, AND A BRAND

CANNOT BE BUILT

• Even the best idea in the world won’t 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.