The 22 Laws & Segmentation Profiles
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Transcript of The 22 Laws & Segmentation Profiles
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Marketing 467
Week 1
Tim Mantz
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Implementation of a marketing plan
Make sure all aspects are in alignment
Mission Segmentation
Product Price
Place Promotion
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#1. The Law of Leadership
It is better to be first than it is to be better
First 2 people to fly across the Atlantic solo1. Lindbergh
2. HinklerThe leading Brand in a category is almost always
first into a prospects mind.Hertz, IBM, Coca Cola, Disneyland, McDonalds
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#2. The Law of the Category
What is the name of the third person to fly across
the Atlantic Solo?1. Lindbergh
2. Hinkler3. Earhart
Amelia Earhart was third person but first woman
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#2. The Law of the Category
If you cant be first in a Category, set up a new
category.E.g., Computers category- IBM is #1
Burroughs, Control Data, GE, Honeywell, NCR,RCA, Sperry (Nicknamed 7 Dwarfs)
Who became a worldwide powerhouse andsecond largest?
DEC. DEC became #1 in Mini Computers
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#3. The Law of the Mind
It is better to be first in the mind than first in the
marketplace.Altair created 1st PC- The 8800
Du Mont invented first TV
Duryea first automobile
Remington Rand was first computer- Univac
IBM out-marketed themIt is extremely hard to change a consumers perception
once its been driven home
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#3. The Law of the Mind
Great example- Pepsi challenge.
Results: Pepsi tastes better than Coke
New coke tastes better than PepsiThen why is coke classic still #1 by a lot?
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#5. The Law of Focus
The most powerful concept in marketing is
owning a word in the prospects mindFederal Express- Overnight
Volvo- safetyIBM computer
Copier- XeroxChocolate Bar Hersheys (Great American Choc.
Bar)
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#6. The Law of Exclusivity
Two companies cannot own the same word in
the prospects mind.Duracell owns long lasting
Energizer Bunny is far secondVolvo owns safe
GM, Mercedes an VW tried to use it.VW ad- Crunchy on the outside.
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#7. The Law of the Ladder
The strategy you use depends on which rung you occupy.
If you are first in a prospects mind then your tact will be different ifyou are 2nd or 3rd.
1. Hertz
2. Avis
3. NationalIn the 70s Avis used finest in Rent-a-Cars.
Consumers did not buy it because they were not #1 in their mind
and on the ladder.When Avis switched to: Were #2 and we try harder, they became
profitable.
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#8. The Law of Duality
In the long run every market becomes a two
horse race.1. Coke
2. Pepsi3. Royal who
Nike/ Adidas, McDonalds/Burger King,Crest/Colgate
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#9. The Law of the Opposite
If you are shooting for second place your
strategy is determined by the Leader.1. Coke
2. Pepsi
Wherever a leader is strong there are opportunities.
Dont try to be better, be different.
Coke is the old classic.Pepsi is the new Pepsi Generation
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#10. The Law of Division
Over time a category will divide to become 2 or
more categories.Category: Computers-
1. Mainframes1. Super
2. Fault
2. Minis1. PCs
2. Laptops
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#10. The Law of Division
Television had 3 networks that accounted for 90%
of viewing audience.Now with FOX, UPN and Cable, three majors
capture closer to 40%
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#11. The Law of the Perspective
Marketing effects take place over an extended periodof time.
Is alcohol a stimulant or depressant? Short term effect is depressing a persons inhibitions-
acting like a stimulant
Long term effects is they pass out!E.g. Does a Sale increase a retailers business or decrease it.Short Term- a sale increases businessLong Term- teaches consumers not to buy unless there is
a saleE.G. Pizza Coupons
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#12. The Law of the Line Extension
Theres an irresistible pressure to extend the Equity ofa Brand.
Michelob was known as a full flavored beer.Then it released: Michelob Lite Michelob Dry Michelob Ice
The brand went downhill and lost share.Heineken saw this mistake and successfully introducedAmstel Lite.
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#13. The Law of Sacrifice
You have to give up something in order to get
something.Marlboro was known as a full flavored brand. They
came out with lights and menthol and lost share.They dropped the latter and kept the Origional.
E.g., Kraft- Strong Brand 9% of Jellies and Jams
Smuckers has 35%. With a name like Smuckers
Dont be a generalist!
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#14. The Law of Attributes
For ever attribute, there is an effective opposite
attribute.1. Crest- Fights cavities
2. Aim- Tastes Good3. Ultrabrite- Whitens teeth
4. Close-Up -Freshens breath
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#15. The Law of Candor
When you admit a negative, the prospect will
give you a positive.Avis Were # 2, so we try harder
1970 VW Bug- will stay uglier longer.
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#16. The Law of Singularity
In each situation, only one move will produce
substantial results.Use your segmentation and research to determine whereyour competitor is vulnerable.
Auto market owned by US auto makers up till the 60s.Japanese went for the low end. Germans went for thehigh end.
GM started making look alike cars across brands and triedto move high and low, neither successfully
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#17. The Law of Unpredictability
Unless you write your competitors plans, you
cant predict the future.Wang failed to predict the fall of the word
processor!
When General Pickett was asked at Gettysburgwhich general was responsible for the defeat of
the Rebel Army, he replied, Ive always thoughtthe Yankees had something to do with it.
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#17. The Law of Unpredictability
Faxes were invented in the U.S. None are made
here today because research showed peoplewould rather get a clean original overnight thana low quality fax.
Orville Redenbacher used research to determinepeople would pay more for High End Gourmet
Popcorn.
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19. The law of Failure
Failure is to be expected and accepted.
Too many companies try to fix things rather thandrop them. AMC should have dropped its carsand focused on Jeep. IBM should drop Copiersand Xerox should drop computers.
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20. The law of Hype
The situation is often the opposite of the way it
appears in the press.New coke received a ton of press. Great products
receive little hype at maturity.
Polyester was going to make wool obsolete!
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22. The law of Resources
Without adequate funding an idea wont get off
the ground.Even the best ideas die without proper resources.
A&M pet products in Houston, TX invented
clumping cat litter. The brand was called ScoopAway.
The # 1 manufacturer Golden Cat recognizing agreat idea introduced their own called TidyScoop. Guess who wins?
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Segmentation Profiles
Tim Mantz
Need Focused Individuals
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Need Focused Individuals
11% of U.S. Adult Population
Have limited material resources
Are preoccupied with the satisfaction of lifesbasic needs
Have perspectives that are influenced by theeffects of their severely limited resources
Feel left out of the cultural mainstream
Tend to feel powerless, and without real oreffective advocates
Type 1
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Type 1
Need focused 4%
Very poor
Old
Struggling against poverty Conventional
Conservative
Traditional
Feel uninvolved or powerless Unable to fend for themselves
See the need for change- Wishthings were the way they were
Discouraged about positive changeever occurring
Type 1
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Type 1
Need focused 4%
Home- Public or lowincome housing
Work- Retired or onWelfare
Car- NoneEntertainment- Watch TV,
Talk on phone
Type 2
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Type 2
Need focused- 7%
Low, frequently sporadic income Younger than Type 1 Little formal education
Distrustful of the System Generally alienated from mainstream values
and thought May be chronically angry about their
circumstances Distrust elected officials Anxious to get ahead Face limited prospects Many minority group members Less likely than Type 1 to passively accept
their circumstances Expect more of the future than Type 1 Try to get around, take advantage of, or
bend the law
Type 2
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Type 2
Need focused- 7%
Home Apartment in ghetto
Work- Sporadic laborer
Car- Older flashy car, low rider Impala
Entertainment- Hang out with friends
Bumper Sticker- One day at a time
Outer Focused Individuals
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Outer Focused Individuals
66% of U.S. Adult Population The personification of Middle America
Are oriented towards mainstream activities, beliefs and traditions. Are
ordinarily supporters of the cultural status quo. Are focused on home and family
Want to fit in and be accepted by others
Behave conventionally and within the boundaries of well accepted social
norms Tend to be happy and satisfied with their lives
Are resistant to change for its own sake
Favor familiar and well known
Are somewhat materialistic and want possessions that both benefit theirfamilies and reflect active participation in the material world
Are typically neither demonstrative nor vocal about their convictions
Type 3P
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Type 3P
Outer focused- 22%
Moderate income
Traditional
Mainstream Typify middle class America
Family Oriented
Cautious Conformant
Conservative
Content Want to fit in and be
accepted
Type 3P
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Type 3P
Outer focused- 22%
Slow to change opinion Loyal to the U.S. Favor known institutions
Want the system to work Dislike change for changes sake Love their country Supportive of the military
Conservative about religion, morals,and the family unit and its cohesiveness more affluent and educated than Type
3C More progressive, more permissive, and
less conservative in many respects More flexible or tolerant than
Type 3C Likely to have live and let live attitude
Type 3P
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Type 3P
Outer focused- 22%
Home- Modest
Work Assembly line,union jobs
Car American Chevy,
FordEntertainment Visiting
family & friends
Bumper Sticker-Disneyland
Type 3C
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Type 3C
Outer focused- 16%
Moderate income
Traditional
Mainstream Typify middle class America
Family Oriented
Cautious Conformant
Conservative
Content Want to fit in and be
accepted
Type 3C
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Type 3C
Outer focused- 16%
Slow to change opinion Loyal to the U.S.
Favor known institutions Want the system to work Dislike change for changes sake Love their country
Supportive of the military Conservative about religion, morals,and the family unit and its cohesiveness
Less affluent and educated than Type3p
Narrowly focused Less flexible or tolerant than
Type 3p Surer of their convictions than Type 3p
Type 3C
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Type 3C
Outer focused- 16%
Home- Modest
Work Assembly line,union jobs
Car American Pickup
Entertainment Visitingfamily & friends
Bumper Sticker- Protectedby Smith & Wesson
Type 4
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e
Outer focused- 10%
Moderate income Young Ambitious Competitive Striving Seek growth and advancement Anxious for greater material success Seek approval of higher status
groups Ask much of both themselves and
the system
Believes the system treats themunfairly
Distrust institutional information
Type 4
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Outer focused- 10%
Home- Apartment or starterhome
Work Lower management,lack experience and polish
Car MR2, Mustang
Entertainment Bowling, pool,golf at public courses
Bumper Sticker- My other car is
a Mercedes
Type 5
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Outer focused- 18%
High Income
Conservative
Hard working
Self Reliant
Self Confident Personify material
success
Feel that their hard workhas entitled them to thebest
Type 5
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Outer focused- 18%
Like their success to show
Do not like radical change Favor leaders who have
earned positions of respect
Encourage U.S. IndustrialGrowth
Want U.S. to be involved in
world affairs Supports the military
Type 5
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Outer focused- 18%
Home- Best neighborhood,large home, landscaped and
decoratedWork High level exec or
company owner
Car Cadillac, Mercedes,BMW
Entertainment Expensiveadult toys (yachts, golf clubs,
cars), country clubs, patronof the arts
Bumper Sticker- Yale, Wharton
Inner Focused Individuals
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18% of U.S. Adult Population
Are less oriented toward the status quo, the accepted, or the traditional Rely more on their own judgment than on social norms
Are strongly individualistic, expressive, and complex Seek first-hand involvement in the world; are less likely to passivespectators
Are more risk-oriented
Embrace the new, different, and usual Are more adventurous with new ideas, philosophies, and experiences Are not likely to view money and possessions as ends in themselves Are more passionate about their beliefs and values
Frequently lead the establishment of new cultural and social trends
Type 6
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Inner focused- 3%
Low to moderate income Young
A transitional type Rebellious Countercultural
Flamboyant Inventive Strongly attuned to peers and
peer pressure
Embrace radical change Want to break away from
what has gone on before
Type 6
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Inner focused- 3%
Home- Live with parents orfriends
Work part time job or inschoolCar Weird cars that have been
painted or customized to not
look normal, tie-dye etc.Entertainment Countercultural music, illegaldrugs, anything unacceptable
to societyBumper Sticker- F@#$!
Everybody
Type 7
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Inner focused- 5%
Moderate income
Younger Independent
Self Reliant
Energetic
Experimental
Seeking first handexperience
Type 7
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Inner focused- 5%
On the go
Enjoy active Risky Sports
Usually very liberal Often establish new ideas and
trends
Rely more on feelings thanlogic or reason
Attuned to growth andchange
Prefer the unusual, impulsiveor daring
Type 7
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Inner focused- 5%
Home- Apartment or Simplehome, not much their
Work Something meaningfulto them, creative- ArtDirector/ writer, computerprogrammer
Car 4WD, Subaru, 4 Runner,Audi or Saab (must carrytheir toys)
Entertainment Extreme
sports, rock climbing,skydiving, mountain bikingBumper Sticker- Its not a sport
if you cant die.
Type 8
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Inner focused- 10%
High Income
Highly Educated
Strongly concerned withsocial issues, trends andevents
Often activists for change
Culturally and politically
savvy Unafraid of new and
different
Type 8
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Inner focused- 10%
Information sponges
Evaluate issues and
candidates carefully Resistant to many marketing
and advertising techniques
Frequently single issue liberalagenda spokespersons (e.g.,over population)
Feel a responsibility to bepolitically participative
Type 8
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Inner focused- 10%
Home- Upscale but less obvious,acquire a home they like ratherthan what is culturally acceptable.Work Staff positions whereeducation is a plus, doctors,lawyers, college professors
Car Volvo- can justify as thesafestEntertainment Patron of theArts, believe in Art, beach clean-upsBumper Sticker- Kill yourtelevision/ I give to NPR
Outer/Inner Focused Individuals
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5% of U.S. Adult Population
Are psychologically and emotionally mature
Have great intellectual and psychologicalresources
Are sensitive to the problems, needs, and
circumstances of others Are concerned with what is fitting and
appropriate
Frequently have lifestyles characterized bybalanced perspective and tempered judgement
Type 9
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Inner/Outer focused 5%
High Income
Well educated
Sensitive
Attentive
Emotionally andpsychologically mature
Wise Have perspective and a
large field of vision
Type 9
I /O 5%
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Inner/Outer focused 5%
Understanding andtolerant of others
Concerned withaccomplishments rather
than process Decisive
Less concerned about
status, station, or beingpolitically correct
Type 9
I /O 5%
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Inner/Outer focused 5%
Home- Can be simple orelegant. Whatever they arecomfortable in.
Work Business of theirchoosing, entrepreneur orcraftsman, proud andconfident of accomplishment
Car Classic Car Entertainment Art,
sculpture, painting,
gardening, writing, crafts Bumper Sticker- Classic CarRestoration Society