Summary of The 22 Immutable Laws of Marketing by Ries and Trout
1.- THE LAW OF LEADERSHIP
"It's better to be the first than to be the best"
The fundamental question in marketing is to create a category in which you can be the first. It is the law of leadership: it is better to be the first than to be the best. It is much easier to get into the mind of the first one than to try to convince someone that you have a better product than the one that came before.
One reason the first brand tends to maintain its lead is that it often goes generic.
The authors regarding this law have formulated a series of questions, all oriented to the same context, which was the first?; And if it is better to be the first than to be the best, what has happened to those first who were not successful according to the authors themselves?
While it is true that many first products have remained in the minds of consumers for so long that their names become generic to classify this type of product; I think that not precisely because they were the first, their preference is due, but because of the quality they have offered.
Examples: We could cite; in the category of soft drinks to coca-cola, in self-loading tapes to “Scoch”, in containers for “Termolar” water. They are leading brands, they are First in their category
2.- THE LAW OF THE CATEGORY
"If you can't be first in a category, create a new one where you can be first"
When a product is new to a category, trying to satisfy a consumer need, its acceptance rate is probably high. Although it is of great advantage to be the first in a category we must take into account other considerations.
Convincing the customer to purchase a product in a new category I think is the determining factor; not by emphasizing that he is first but by demonstrating the need that he comes to satisfy in the market.
Example:
The company SONY manufacturers of electrical appliances (radio, television, CD player etc.) in our country known for many years for the prestige of the previously known electrical appliances occupying the number 1 by far. A new GOLDSTAR brand comes to our market who offers a line of household appliances (radio, television), but introduces the category "AUTO VOL" immediately revolutionized the market by becoming products of acceptance. Why?. For the utmost security of knowing the advantage offered by a device of being able to withstand voltage variation; the customer sees the need to buy a vol car kit, not the need to buy a GOLSTAR product.
3.- THE LAW OF THE MIND
"Better to be first in mind than first at the point of sale."
A product that has a presence in the minds of consumers should be preferred over a product for which there is no information of any kind, even if it arrived first at the store. If the key point would be to get to the store first, there would be no promotion, customers seek to satisfy their needs with previously known alternatives and which have been perceived by their minds.
4.- THE LAW OF PERCEPTION
"Marketing is not a product battle, it is a battle of perceptions"
There are no better products. The only thing that exists in the world of marketing are perceptions in the minds of current and potential customers. Perception is reality. Every thing else is an illusion.
According to this law, the perception of a product is like fidelity to the mind, what the client or consumer creates will be what will prevail when choosing a product, no matter what product is.
5.- LAW OF CONCENTRATION
"The most powerful concept in marketing is to appropriate a word in the minds of prospects"
When a company gets to appropriate a word in the minds of consumers, the product (s) of this will be identified (s) by that word. Not only to identify the product you can also identify the company itself. The secret is the use of simple words.
Examples:
In our country when we hear the word "white and golden beer" we know that the Munich brand is being talked about, when we say "The biggest the cheapest" we identify the Shopping Multi Plaza.
Others:
The big heart of Asunción ……………………………….. Mariscal Lopez Shopping
Clothes for men but women love it …….. L'Uomo
The taste of the meeting ………………………………………… Quilmes
6.- THE LAW OF EXCLUSIVITY
"Two companies cannot have the same word in the minds of customers."
When a company seizes a word in the minds of customers, it is useless to try to appropriate the same word. If another company tried to use the same word, what it would be doing is helping it flow, he ended up in favor of the competitor who owns the exclusivity of the same and therefore does not penetrate the mind of any potential client.
7.- THE LAW OF THE LADDER
"What strategy to use depends on the step you occupy on the ladder"
In the minds of customers there is a hierarchy that you use to make decisions. Customers are inclined by the order of preference they have in mind, meaning that if a brand is perceived as number 1, it will have a degree of preference over a number 2.
The company must assume the step it occupies in that ladder of the client's mind and from there design the strategy to use to try to influence the client.
8.- THE LAW OF DUALITY
"In the long run, each market becomes a two-participant race"
In the marketing fight there are always two brands that are competing for the first place; this normally occurs between the trusted brand and the applicant.
Although the fight is concentrated between two participants, another who is in a third place can take advantage of planning a short-term strategy.
9.- THE LAW OF THE OPPOSITE
"If you opt for second place, your strategy is determined by the leader."
When a company is in second place, its strategies must be focused on the strength of its competitor, in this case the leader. Once after discovering the strong point, the competitor in second place must present the opposite to the consumer, that is, not better but different.
If a product emphasizes its strength, it will not be difficult to know its weakness; but that weakness to which the campaign will be oriented must have a certain degree of truth.
Examples: Although in order to establish specific local examples, it is necessary to have a clear knowledge of the market where the company intends to put its positioning into practice. That is what we will try this time: in the category of beers in our country, a classic example is that of the fight for number two between Brama, which is presented as the golden beer option, while Muich presents a double option of not only being golden but of being a white beer, "The beer of two colors."
10.- LAW OF DIVISION
"Over time, a category will divide to become two or more categories"
Some companies use the law of division to have several categories of a product.
Example: In the world of music like that of computers, categories are created every day; To cite a station that at the beginning broadcast the "TOP TEN" and that after a while it was small on the list so much so that it divided the category into the "MAIN FORTY".
11. THE LAW OF PERSPECTIVE
"The effects of marketing are long-term"
This law tells us that depending on the marketing strategies used in a product, negative effects may arise in the future of said product.
Example:
In the case of Coca-Cola Company, this was a deuña of the cola soft drink market but he was not satisfied so he launched, in addition to the “Classic Coca-Cola”, the “New coke”, carrying out tastings of the New Coca- Cola seemed to be sweeter even more refreshing, so he took courage and launched it on the market without a lifesaver and what he achieved was a demand of thousands and thousands of dollars from the loyal consumers of Classic Coca-Cola, since for they were part of the North American culture, because it was in everything at family lunch, at the baseball game and at other times. The Coca-Cola Company decided to withdraw New Coca-Cola from the market.
12.- THE LAW OF LINE EXTENSION
"There is irresistible pressure to extend the value of the brand"
Usually a company tries to extend the brand based on the success of another product. They try to be everything to everyone that eventually causes you trouble.
Example: In our country we have observed the introduction of different products and in different areas; Nivea, the world brand of skin care products, tries to enter the shampoo category (imagine a shampoo that leaves hair creamy).
13.- THE LAW OF SACRIFICE
"You have to give up something to get something"
In a company there are three things to sacrifice: product line, target market, and constant change.
* Product line: This means that the product range should be reduced, not expanded, meaning that instead of introducing a new product, the concentration in which the product is available would be the best option.
* Target market: The target market is who the marketing programs are aimed at, therefore knowing who the campaign is aimed at would be something beneficial.
* Constant change: In this case, if a company has been successful with the strategy used in a product, it would not be feasible to change.
Example: Coca-Cola decides to launch Cherri-Coke (cola with cherri) to cover the market more. Some time later, it deregisters its innovative product for not having participation.
14.- LAW OF ATTRIBUTES
"For each attribute, there is another equally effective opposite"
This law states that a different attribute must be sought from that of the competition. Once this attribute has taken hold, promote its importance and thus increase its participation.
Example:
When GOLDSTAR television manufacturer launched it was based on the AUTOVOL attribute, promoting the importance of the voltage protector and automatically increasing its participation.
15.- THE LAW OF SINCERITY
"When you admit something negative, the prospect will acknowledge something positive."
By admitting a negative aspect of a product you must create a benefit that convinces the customer of a positive aspect of that product.
16.- THE LAW OF SINGULARITY
"In each situation only one play will produce substantial results."
When a problem occurs in a company, only one alternative will solve the problem and not a set or several alternatives. I think the decision-making game comes in here; that is to say, for each disease a medicine.
17.- THE LAW OF THE UNPREDICTABLE
"Unless you write the plans of your competitors you will not be able to predict the future"
Here it is argued that a company cannot predict the reaction of its competition. You should not only think about planning that obtains results in the short term, but also guide a long-term marketing direction.
One way to deal with the unpredictable is to be flexible enough in your organization. In other words, go according to the changes that the category requires over time.
18.- THE LAW OF SUCCESS
"Success often leads to arrogance and arrogance to failure"
When a company succeeds, it can become arrogant and later fail
Example: When CODETEL (telecommunications company) was the only telephone company in our country, it was obvious that the person interested in acquiring one of the communication services (residential line, cell phone, beepers, etc.) had to go to it; where they required the client to meet certain requirements (guarantor, credit card, etc.) to be able to sell the service, but nevertheless the client had to wait a certain time for his request to be approved. Years later, TRICOM entered the market, who set aside certain requirements and using flexibility took over a market that was forgotten and subordinated by the arrogance of CODETEL, which has not failed but has had to suffer after the arrival of TRICOM. the consequences that in addition to the law of success influenced the law of supply and demand.
19.- THE LAW OF FAILURE
"Failure is part of our life and we must accept it"
Some companies do not admit the failure of a certain product and instead try to fix it, which eventually leads to failure. It is convenient to recognize a failure in time to reduce possible losses.
20.- THE LAW OF THE SENSATIONALIST NOTE
"On many occasions the situation is the opposite of what appears in the press"
Through sensationalism, what is sought is to present the client that I know he is in a situation that does not really exist. Capturing the public's imagination is not the same as revolutionizing a market.
Example: Currently Microsoft (computer software company) is presenting a new product "Windows XP", it is really a sensation to see the show they have put on, but this does not mean that this product will revolutionize the market by accepting the consumers or computer users; although Microsoft enjoys a good perception in the mind of its target market.
21.- THE LAW OF ACCELERATION
"Programs that succeed are not built on whims but on trends"
A whim is a short-term phenomenon that can be profitable, but does not last long enough to produce something stable for the company. Short-term whims increase dramatically and in the same term decrease, on the other hand, trends tend to increase in the long term and with that they become something stable for the company and do not tend to decrease.
22.- THE LAW OF RESOURCES
Without the right funds, an idea won't get off the ground
In addition to having a good idea, you need the necessary resources to invest in that idea. The aim is to get into the minds of consumers through advertising, tools that are expensive.
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