22 immutable laws of marketing a perspective

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    06-Aug-2015
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Transcript of 22 immutable laws of marketing a perspective

  1. 1. Parameshwar Hegde Alliance School of Business 24th EPGDM batch
  2. 2. 1) The Law of Leadership It is better to be first than be better My opinion Example Disagree For a sustainable business, it is always better to be better in the business, rather than first in the business MCI Mail was the first (1983) commercial electronic mail service provider, officially it closed its operations in 2003. Now Apple Iphone and Gmail are leading in the market because of their service.
  3. 3. 2) The Law of the Category If you cant be the first in a category, set up a new category that you can be first in Example My Opinion Kingfisher Airlines aimed at premium service to Indian fliers. But after a decade, it collapsed, because Indian consumers are aimed travelling from one destination to another not the value added service. Disagree The law may not hold well in todays business world unless one has expertise and the product has market demand
  4. 4. 3) The Law of the Mind Its better to be first in the mind than to be first in the marketplace Example My Opinion In many parts of India, Godrej means an almirah / cupboard. Even though Godrej is a brand, mind determines it as a product. I agree. The brand should get printed in the consumers mind. Then the market will decide the products place in the market.
  5. 5. 4) The Law of Perception Marketing is not a battle of products; its a battle of perceptions When VRL travel says The name you can trust, I am sure lakhs of customers believe it. I can trust that this bus is safe to women, has safe driving habits, and can arrange an alternate vehicle in the shortest possible time in case emergency. I strongly agree. Perception about a product in the consumers mind makes a lot of difference when it comes to choices of similar product. Example My Opinion
  6. 6. 5) The Law of Focus The most powerful concept in marketing is owning a word in the prospects mind Whenever I listen Tata word, whatever the product it is, I start believing that the product has high standard and the product is manufactured with high degree of social responsibility and environmental care. I agree The name of a product should be associated with a kind of perception in the customers mind. Example My Opinion
  7. 7. 6) The Law of Exclusivity Two companies cannot own the same word in the prospects mind When Hutch was introduced to India, it had the Pug dog in it. Whenever one sees a Pug outside, immediately he/she relates it to Hutch. Now, Vodafone continue the tradition with new kind of images / videos in their ads. Partially agree One can snatch the word from other provided the second one has a better product and consumers are inclined to it more than the first product Nowadays, it is all about pictures / videos. These things own the consumers mind Example My Opinion
  8. 8. 7) The Law of the Ladder The strategy to use depends on which rung you occupy on the ladder For me, few years ago, Meru cab was in first rung of the ladder. Slowly this was occupied by Ola cab. Now whenever I have to travel locally, the first name comes to mind is Ola Agree with slight modification Comparison should happen among same category and used by same segment of consumers Example My Opinion
  9. 9. 8) The Law of Duality In the long run, every market becomes a two horse race Telecom industry in India has many players like Airtel, Vodafone, Idea, Aircel, Reliance, BSNL, Tata Docomo, MTS In Retail industry we can see Future group, Reliance, Birla (More), Spencers, Bharti, others Partially disagree It is important to set a timeframe. In the initial stages of market growth there will be many players. Subsequently, only few will remain. It is difficult to say whether 2/3/4 will remain in the race. Example My Opinion
  10. 10. 9) The Law of the Opposite If youre shooting for second place, your strategy is determined by the leader Low Cost Carriers (filght business) in India have very well understood that it is the cost that matters most after the safety parameter. So focus on safety and low cost. They are not competing with AirIndia or Jet Airways based on any other parameter but on the price. Three major airlines in India operate as LCCs (Spicejet, Indigo and GoAir) Disagree It is not necessary to be opposite to beat the other product. One should exemplify the features of the product in a way that is well understood by the consumers and it should meet the consumers requirementExample My Opinion
  11. 11. 10) The Law of Division Over time, a category will divide and become two or more categories Television is one category of entertainment product. But, there are many types of televisions such as Plasma, LED, LCD, Curved, Ultra HD. Each product caters to different tastes of different segment of consumers. Partially agree There will be a segmentation of the original product category based on the consumer preferences and geography. Example My Opinion
  12. 12. 11) The Law of Perspective Marketing effects take place over an extended period of time Presently, few tier-3 real estate companies are trying to gain a huge profit by lowering the prices of the assets by conducting exhibitions / giving discounts. Later, it fails to give proper services to the customer. Such businesses are not going to last for long. Agree When price is the sole criteria apart from market share, then we use sales tactics which results in short term gain. But if it is not backed up by the proper service mechanism / after sale services, the sale will have a huge negative impact in the long run for the business operations. Example My Opinion
  13. 13. 12) The Law of Line Extension Theres an irresistible pressure to extend the equity of the brand Sony is competent in music players. But, it failed in mobile phone business Tata is one brand, has more than hundreds of products in its brand name. over the years, it has developed the competency in all these products Partially agree This depends on the Law of focus also. If there is a core competency, one can venture into new product line with the same brand name. If the core competency is present in the new product, there is a chance of losing the brand credibility itself which harm the original product as well Example My Opinion
  14. 14. 13) The Law of Sacrifice You have to give up something in order to get something Some reputed builders (Mantri, Prestige) focus entirely on one customer segment (Upmarket). They wont build houses for lower middle class families. I agree It is advisable to focus on one category / one geography / one customer segment at one time. If we try and too many at one time under one brand, there is a chance of collision and all may fail. Example My Opinion
  15. 15. 14) The Law of Attributes For every attribute there is an opposite, effective attribute There are many laptop brands in the market, each is explaining about its feature but not trying to imitate the competitor or trying to oppose them Disagree It is not necessary to be opposite. It is essential to be fair enough to explain about the feature of the product. Example My Opinion
  16. 16. 15) The Law of Candor When you admit a negative, the prospect will give you a positive Many companies call back their products to correct the defects. Especially, automobile companies follow this a lot. If there is a genuine problem and rectification has happened, the consumer will tend to keep the brand on top of his/her mind. Agree Consumer is the king. At the same time consumer is a human being. He/she appreciates openness. It is not only important to accept the failure but also to be important to attend the failure and make sure that the consumer is satisfied. Example My Opinion
  17. 17. 16) The Law of Singularity In each situation, only one move will produce substantial results One single move of globalization by Government of India has opened the market for foreign players and consumers started experiencing global brands and quality at an affordable price. Agree Pareto Effect. 80% results are caused by 20% actions. Example My Opinion
  18. 18. 17) The Law of Unpredictability Unless you write your competitors plans, you cant predict the future When a discount sale is announced by a garment manufacturer, other (equal brand image in the market) has to follow the race. Otherwise its future will be in dark. Agree The market has many producers and many consumers. They are all dependent. None of them are independent. Any action of competitor can have a huge impact on the other. Future not only depends on the competitors plan but also on several other parameters such as regulations, climate, taste and preference. Example My Opinion
  19. 19. 18) The Law of Success Success often leads to arrogance, and arrogance to failure Kodak has reached its peak during 20th century. But, it could underestimated the digital camera potential and now its almost extinct. Agree Its a thin line that differentiates self respect and ego. Success-Ego-Failure is a kind of cyclic reaction. Example My Opinion
  20. 20. 19) The Law of Failure Failure is to be expected and accepted 2008 financial crisis was expected much earlier. But it was accepted only when nothing can be done and personal gains were maximized. In the process millions of people lost hard earned savings and assets. Agree Failures are bound to happen. It should be accepted and corrective actions need to be taken. If one tries to procrastinate the failure to save from public, later the failure will attack like a monster and haunt in the future. Example My Opinion
  21. 21. 20) The Law of Hype The situation is often the opposite of the way it appears in the press Mouthshut.com is a forum in the media which can give all kinds of reviews regarding a product. So hype in a television media can be masked by such intern