The 22 Immutable Laws of Marketing

1. The 22 Immutable Laws of Marketing By Al Ries and Jack Trout

2. Definitions • Immutable – (adjective) Unchanging or unable to change. • Law – (noun) A rule which cannot or should not be broken.

3. . The Law of Leadership • It’s better to be first than it is to be better. • The basic issue in marketing is creating a category you can be first in. • E.g., most people know who flew across the Atlantic first, but not second. • Sometimes called: The First Mover Advantage

4. The Law of Category • If you can’t be first in a category, set up a new category you can be first in. • E.g., most people don’t know who flew across the Atlantic third, but they know who the first woman to do that was. • Lexus was the first Japanese luxury car

5. . The Law of the Mind • It’s better to be first in the mind than to be first in the marketplace. • E.g., Altair 8800 was the first PC, but Apple got first in the mind. • IBM was the first software vendor, but now we associate software with…

6. The Law of Perception • Marketing is not a battle of products; it is a battle of perceptions. • Is Honda better than Toyota? Is Toyota better than Honda? • Which would you rather have? Why?

7. The Law of Focus • The most powerful concept in marketing is owning a word in the prospect’s mind. • Or when the brand become synonymous with the category • E.g., Xerox this, FedEx that, and get me some Kleenex. • New ones: iPod & Blackberry

8. The Law of Exclusivity • Two companies cannot own the same word in the prospect’s mind. • What companies do you think of when I say “operating system” or “mustard” or “frozen pizza”?

9. The Law of the Ladder • What strategy to use depends on which rung you occupy on the ladder. • E.g., Avis is 2nd – we try harder. • Hardee’s is third or forth, and they try even harder—and trying to find an unoccupied rung • Being closer to the top usually leads to risk aversion

10. The Law of Duality • In the long run, every market becomes a two horse race. • E.g., Coke v Pepsi, Kodak v Fuji, McDonalds and Burger King. • Dell v HP/Compaq

11. The Law of the Opposite • If you’re shooting for second place, your strategy is determined by the leader. • E.g., Coke is an old soft drink, so Pepsi went successfully for the choice of a new generation.

12. The Law of Division • Over time, a category will divide and become two or more categories. • e.g., computers, automobiles, coffee

13. The Law of Perspective • Marketing effects take place over an extended period of time. • Don’t expect results to be instantaneous • A successful campaign can resonate for years

14. The Law of Line Extension • There is an irresistible pressure to extend the equity of the brand. • Coming soon: Arm and Hammer Cat Food

15. The Law of Sacrifice • You have to give up something in order to get something. • E.g., FedEx sacrificed other air freight options for small packages overnight, and owned the word “overnight”. • For years Honda focused all its efforts on the Civic (cvcc) and dominated the sub-compact market

16. The Law of Attributes • For every attribute, there is an opposite, effective attribute. • E.g., Crest toothpaste fights cavities, but Close Up freshens breath. • PC is synonymous with business computing, Apple = creativity

17. The Law of Candour • When you admit a negative, the prospect will give you a positive. • E.g., the 1970 VW will stay ugly longer – implies reliability not good looks. • Prospects know what the truth is, and they reward honesty • UPS’s brown trucks are ugly, but we love the truck

18. The Law of Singularity • In each situation, only one move will produce substantial results. In a military sense, this is called the line of least expectation. • Choose the move where you expect the least chance of “surprises”. • E.g., the Allied invasion of Normandy.

19. The Law of Unpredictability • Unless you write your competitors’ plans, you can’t predict the future. • It is best to be flexible and ready to react to changes in the market.

20. The Law of Success • Success often leads to arrogance, and arrogance to failure. • GM was successful into the 70s but continued to lose share thru the 90s, and all that time they assumed they knew what consumers wanted • In 1985 IBM assumed they owned the PC market

21. The Law of Failure • Failure is to be expected and accepted. • Ford almost lost the company on the Edsel in the 50’s • Radio Shack and Apple marketed some disappointing computers in the 80’s

22. The Law of Hype • The situation is often the opposite of the way it appears in the press. When Ford was successful, the company said very little. Now it throws a lot of press conferences. • What do you think when a car dealer says, “We have the best prices in town.”

23. The Law of Acceleration • Successful programs are not built on fads; they’re built on trends. Ninja Turtles could have been the next Barbie dolls if the market hadn’t been flooded, and if the makers had tried to turn the fad into a trend.

24. The Law of Resources • Without adequate funding an idea won’t get off the ground. • Regardless of how good a product is, the only product that sells is the one the consumer is aware of.