The 22 Immutable Laws of Marketing Introduction Billions of dollars have been wasted on marketing programs that could never work. A marketing program can be well designed, well executed and well financed but still not work - because it violates one or many of the fundamental laws of marketing and is therefore doomed to failure. Marketing has fundamental laws just as nature does, but most marketers don't believe so. Programs that work are almost always in tune with some fundamental force in the marketplace. The principles that govern success and failure are called the 22 Immutable Laws of Marketing. Violate them at your own risk. The Laws of Leadership, Category, Mind and Perception The Law of Leadership. It's better to be first than to be better. It's much easier to get into the mind first than to try to convince someone that your product is better than the one that was there first. The leading brand in any category is almost always the first into the prospect's mind - e.g. Hertz, IBM, Coca- Cola, Gillette, Tide. People tend to stick with what they've got because it isn't worth the effort or cost to switch. The Law of the Category. If you can't be first in a category, set up a new category you can be first in. It's easier than you think to find a new category to be first in - e.g. Dell, Charles Schwab, Lear's. When you're first in a new category, you should promote the category, not your brand. Prospects are reluctant to think about what's better, but everyone is interested in what's new. This means you have no competition in your category! The Law of the Mind. It's better to be first in the mind than first in the marketplace. This law modifies the Law of Leadership. You can't change a mind once it's made up. Even vast financial resources spent on changing entrenched perceptions don't work well - e.g. Xerox as a copier company trying to become a computer company. The Law of Perception. Marketing isn't a battle of products, it's a battle of perceptions. Although many people think the best product will win in the long run, it's an illusion. All that counts is how the prospect perceives the product. Don't assume that the product is the heart of a marketing program. To be successful, you must study how perceptions are formed in the mind and focus your efforts on those perceptions. The Laws of Focus, Exclusivity, Ladder, Duality and Opposite The Law of Focus. The most powerful concept in marketing is owning a word in the prospect's mind. Burning your way into the mind by narrowing your focus to a single word or idea is the ultimate marketing sacrifice - e.g. Federal Express owns "overnight," IBM owns "computer." The most effective words are simple and benefit-oriented. The Law of Exclusivity. Two companies cannot own the same word in the prospect's mind. It's futile to try to own the same word as a competitor who's in the prospect's mind first, even with massive financial resources and marketing campaigns - e.g. Energizer after Duracell's "long-lasting" and Burger King after McDonald's "fast." The Law of the Ladder. The strategy to use depends on which rung you occupy on the ladder. For each category there's a product ladder (hierarchy) in prospects' minds that they use in making decisions. People use their ladders to decide which information to accept or reject, and they generally accept only information that's consistent with their ladder. Your marketing should deal constructively with your position on that ladder - e.g. Avis as No. 2 "tried harder" and won. The Law of Duality. In the long run, every market becomes a two-horse race. Although a new category is initially a ladder with many brand rungs, in the long run only the top two rungs remain significant players in the prospect's mind - e.g. Coke and Pepsi, Kodak and Fuji, Crest and Colgate. Remember that the prospect believes the leading brands are the best brands. The Law of the Opposite. If you're shooting for second place, your strategy is determined by the leader. If you're in the No. 2 position, you should aggressively leverage the leader's strength against him as a weakness by presenting the opposite - e.g. "good-tasting" Scope versus "medicine-breath" Listerine. There's no way to stay a strong No. 2! The Laws of Division, Perspective, Line and Sacrifice The Law of Division. Although many companies believe categories are combining synergistically, in fact every category divides into two or more segments over time. Each segment is distinctive, with its own reason for existence, so to maintain dominance, the category leader must address each emerging category with a different brand name. The Law of Perspective. Marketing effects take place over a long time. Long-term effects are often the exact opposite of short-term effects. You must be careful that short-term marketing efforts don't have a negative impact on long-term growth. For example, price discounts build short-term sales but destroy long-term volume. The Law of Line. There's an irresistible pressure to extend the equity of the brand. But when you try to be all things to all people, you inevitably wind up in trouble - e.g. IBM lost money as it diversified into a variety of related fields. Although line extensions are relatively easy and build short-term volume, the more products, markets and alliances a company goes into, the less money it makes. The Law of Sacrifice. You have to give up something in order to get something. Successful companies focus on one or a few products rather than becoming generalists - e.g. Federal Express focused on "small packages overnight" to become bigger than Emery, which air-shipped "anything." By focusing on a narrowly defined target, they paradoxically capture a wider market - e.g. Pepsi sacrificed everybody except the teen market but captured everyone who wanted to think they were young. And successful companies don't change marketing strategy in the short term - e.g. White Castle hasn't changed position in 60 years but averages sales per outlet above Burger King and very close to McDonald's. The Laws of Attributes, Candor, Singularity and Unpredictability The Law of Attributes. For every attribute, there's an opposite, effective attribute. Rather than emulate the leader, find an attribute that's opposite to the leader's. Ideally, try to own the most important attribute in the category. If that's already taken, seize another one and dramatize its value. You can never predict the size of a new attribute's share - e.g. "disposable" razors. The Law of Candor. When you admit a negative, the prospect will give you a positive. Candor is disarming. Negative statements you make about yourself are generally taken as truth, whereas positive ones generally require proof. Your negative must be widely perceived as such by your prospects, and must be quickly turned into a positive that's a convincing benefit - e.g. "Avis is No. 2, so we try harder." The Law of Singularity. In each situation, only one move will produce substantial results. The only thing that works in marketing is the single, bold stroke. The competitor is usually vulnerable in only one significant place. It's usually difficult to find, but once identified you must attack it with all your marketing effort. What works is the unexpected - e.g. Japanese introductions of low-end small cars flanking the mid-range strength of GM. To find that singular idea, you must be intimately involved in the front lines of the marketplace. The Law of Unpredictability. Unless you write your competitor's plans, you can't predict the future. Rather than manage by short-term financial thinking, differentiate yourself, set a coherent long-term marketing direction and support it with consistent short-term marketing efforts. Identify and follow trends rather than fads, and build an enormous amount of flexibility into your organization to cope with the inherent unpredictability of the marketplace. The Laws of Success, Failure, Hype, Acceleration and Resources The Law of Success. Success often leads to arrogance, and arrogance to failure. Objectivity and empathy are required for successful marketing efforts. A successful name isn't the reason for a brand's success - good marketing efforts are. Therefore, don't depend on attaching the successful brand or corporate name to new product line extensions for success. Instead, see the market from the prospect's eyes - this is the only perspective that counts The Law of Failure. Failure is to be expected and accepted. Recognizing failure early and cutting your losses is better than trying to fix things to save a bad situation. Don't punish people whose experiments fail and don't allow ideas to be guided by personal or career agendas. Instead, encourage managed risk - e.g. Wal-Mart's "ready, fire, aim" approach. Bring personal agendas out into the open constructively - e.g. 3M's "champion" system that identifies and supports the person who will personally benefit from a new project. The Law of 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 hype. When you do need hype, it usually means you're in trouble - e.g. New Coke received an estimated $1 billion in free publicity on top of its multi-million dollar marketing program, but Coca-Cola was forced to re-introduce Classic within 60 days. Revolutions arrive subtly and unexpectedly. The Law of Acceleration. Successful programs aren't built on fads but on trends. A fad is a short-lived, well- hyped market phenomenon that can produce enormous profits in the short term, but can drive a company into deep financial shock or ruin once it's over - e.g. Coleco's Cabbage Patch Kids. A trend is an almost invisible, powerful, long-term build in the market that represents long-term demand for your product - e.g. Barbie. The best thing to do with a business driven by a fad is to dampen the fad, as a successful entertainer restricts appearances. The Law of Resources. Without adequate funding, an idea won't get off the ground. Getting into, staying in and winning the battle of the mind takes money. First get the idea, then get the money to exploit it. If you have the idea and the money, spend enough to guarantee success. Successful marketers plow all profits back into marketing the idea for two or three years Be warned! In an existing organization, many of these laws run counter to prevailing corporate dogma. If you violate the immutable laws you run the risk of failure. If you apply the laws you run the risk of being criticized, ignored or even ostracized. But the immutable laws will help you succeed - and success is the best revenge of all. - End - . The 22 Immutable Laws of Marketing Introduction Billions of dollars have been wasted on marketing programs that could never work. A marketing program can be well. won't get off the ground. Getting into, staying in and winning the battle of the mind takes money. First get the idea, then get the money to exploit it. If you have the idea and the money, spend. fundamental force in the marketplace. The principles that govern success and failure are called the 22 Immutable Laws of Marketing. Violate them at your own risk. The Laws of Leadership, Category,