22 immutable laws of marketing Book Summary
Synopsis
The 22 Immutable Laws of Marketing exposes the fundamentals of marketing as well as how to stay clear of violating these rules. Airplane makers don’t design airplanes without taking into consideration the laws of Physics. Yet, many marketers are trying to market an innovative idea without having the foundational law of marketing. This book, the 22 Immutable Laws of Marketing seeks to resolve this issue by providing these fundamental rules.
1 – Law of Leadership
As a leader, it’s better to be the first rather than superior to your competition. Furthermore, it’s easier for you to become the very first one to make your mark on the minds of your customers than making them believe that your product is superior to the previous.
The authors label the product that’s not initially considered a “me-too” product. These products are unlikely of becoming extremely profitable. In reality, the most prominent brand in nearly every industry is the first one that pops up in the minds of consumers. This can be substantiated when items are called after products, e.g., Coke. The advantages of being first to market could be lost if you do your timing wrong. For instance, your “first isn’t the best to be competitive.
Examples of companies that have been successful from the beginning:
- Hertz in rent-a-car
- IBM in computer systems
- Coca-Cola in cola
Firsts are also a failure when they are fundamentally a poor idea. The authors give an illustration that is Frosty Paws. Frosty Paws released the first dog-friendly ice cream and were not a huge success.
2. The Law of Category
In the event that your particular category is already unique and you want to be the first, then you need to create another category you could be the first to enter. For instance, Amelia Earheart was the third person to fly over the Atlantic Ocean on a solo mission. But this isn’t her most well-known accomplishment. She is, instead, known for being the first woman to successfully complete this feat. So, you can become famous and successful by establishing your own niche.
In addition, the authors provide the case of IBM. IBM was a huge success because it was the very first company to produce computers in large quantities. To be competitive, DEC did not choose this type of category. Instead, they made their own class by being the first company to manufacture minicomputers in mass quantities. As a result, DEC also became highly successful.
Don’t make the brand your main goal. Instead, look at the areas where your product can be dominant.
3. The Law of the Mind
“The only thing that you can be certain of is what you perceive. If the universe is real, it is within your mind as well as the minds of others.” Al Ries. Al Ries
It’s impossible to alter the mind of a client once their mind is already formed. So, the authors recommend that you do not waste money trying to influence people’s opinions. Thus, you should strive to be the first on people’s minds. Being the first on the market is important only because it improves your chances of being first in the minds of your customers. This is due to the fact that marketing is a war of perception and not a matter of the product itself. The answer is to make the name of your product easy to remember and simple.
4. The Law of Perception
The authors state that it is impossible to establish a reality in the market. Thus, everything that exists in the realm of marketing is the perceptions that exist within the minds of your clients. Your marketing must be created with only the goal of manipulating perceptions. Only by understanding the way perceptions are constructed in order to focus your marketing strategies on the perceptions that you form can you beat your marketing inclinations that are faulty.
5. Law of Focus
The most effective concept in marketing is to create a phrase that is etched into the mind of the potential customer. It must be one that everyone uses. If you are able to effectively apply this law then you’re able to start owning the word. The word you choose to use should fit into your specific category. For instance, IBM’s term was “computer.
It is crucial to note that you can’t use the same term for the duration of time. There is no way to guarantee that a word will last forever, and there will be a point that you need to consider changing the word you use. In the same way, you shouldn’t select a word that is already used by another. When you have your own word, you should take every step to safeguard it on the market.
Words come in different varieties. They could be benefit-related (captivity prevention) or service-related (home delivery) and related to the audience (younger people) or related to sales (preferred brands).
6. The Law of Exclusivity
The law states that two businesses can’t own the same term in the mind of a potential customer. The authors recommend not making use of money to buy the same word that someone else already has.
7. Law of the Ladder
Different brands are placed on different rungs of the ladder of a prospective customer’s hierarchy. Your marketing plan should be determined by the rung you think you are on within your customers’ minds. People generally will only take in information that is rational in relation to the various rungs on their ladder.
The authors point out that you typically have double the market share of the brand lower than you on the ladder. In turn, you will be just half the market share of the brand that is above you. Seven is the most number of rungs that can be placed on an incline in a prospect’s mind. But, you shouldn’t always strive to be the highest rung on the ladder. For instance, being the third on a big ladder may be better than being the first one on a ladder that is small. This analogy is similar to being a tiny fish in a huge pond.
8. Law of Duality
Every market turns into one-horse races over the long run. Thus, the seven steps on the ladder will be two. The authors suggest Pepsi along with Coke as examples.
9. Law of Opposite
“The most fundamental method of positioning isn’t to make something completely new and unique instead, it’s to modify the existing thoughts in the mind to connect the dots that are already in place.” Al Ries
Achieving first place in a race that is a two-horse affair depends upon your capacity to change your plan based on who’s in the first spot. Your business must leverage the strengths of the company’s leader to overcome its weaknesses. Your prospects should be presented with the complete opposite of the most reputable business. Don’t try to copy the top company, since you need to make yourself appear as a viable alternative in the end to beat them.
10. The Law of Diversion
Your place in the market is not going to remain a single one. In the future, your category will break up into multiple categories. Each segment will be led by a different person, and often the category’s original leader is also the leader of sub-categories. You can achieve the success of each new segment with a different brand name.
11. Law of Perspective
The efficacy of marketing will be determined by the perspective. Marketing results are a result of long periods of time. The authors point out that the long-term impact of marketing can be contrary to the immediate effect. They give the example of the increase in sales in the short-term, which are caused by customers refusing to purchase at normal prices.
12. The Law of Line Extension
There will be pressure to expand the credibility of your brand. In the future, your business will be focused on one successful product. It is, however, easy to be too scattered by releasing a variety of products that will ultimately cost your money. Being all things to everyone will end in failure.
The authors define line extension as applying the name of a brand that is successful and then placing it on a brand new product. A line extension is rarely successful over the long term. This is particularly the case when you face serious competition within your particular category. In general, the top performer in any given category does not get the one who has been extended. A line extension is generally preferred because it works in the short term. But, that doesn’t necessarily mean that it will be effective over the long haul.
13. The Law of Sacrifice
You must give up something to acquire something. This is an alternative to line extension. The authors suggest that you sacrifice three aspects: the product line, market target, and the constant need for alteration. By reducing rather than expanding the product line can make it easier for you to be successful.
14. The Law on Attributes
For every characteristic, there is an alternative, more effective characteristic. As mentioned earlier, businesses frequently make the mistake to imitate the traits of the most successful business. The best approach is to look for a different characteristic. Additionally, they say that you should strive to have the top attribute in your particular field. Additionally, there is a tendency to have companies immediately decide to reject an attribute because it’s not currently significant. You cannot be sure of the size of an attribute’s share, therefore be sure to reject any attribute by being cautious.
15. The Law of Candor
The most efficient method to influence a prospective client’s mind is to first acknowledge that your business has a problem. However, you must make this negative and optimistic. Each negative comment you make about your business will usually be accepted as true because companies don’t typically take negatives into consideration. So, if you’re able to transform these negatives into positives you have already got your prospects of gaining acceptance for positive attributes that are associated with your company.
To illustrate this the authors provide an illustration of Listerine. The company was known to promote using the slogan “The taste you dislike every day. Then, this negative became positive, as they promoted the notion that Listerine can kill germs.
In order to effectively apply this law the negative, you experience must be perceived by the majority as negative. In the next step, you must swiftly shift to positive thoughts.
16. the Law of Singularity
In every situation, it is the only way to yield significant results. Yet many marketers believe they must employ several strategies and hope that one of them works. However, attempting harder isn’t the only way to success. Effective marketing is based on a single, strong stroke. If you know your market and know what powerful stroke will impact the market in a significant way.
17. Law of Predictability
It’s difficult to forecast the future, particularly since the future depends on the choices your competitors do. Yet marketing campaigns usually take decisions based on forecasts about the future. Instead, create your short-term strategy with an aspect that is distinctive to your product. This can be integrated into your long-term strategy for marketing. It should be a direction rather than a set plan. Plans don’t have enough flexibility. The authors suggest incorporating the capacity for a lot of flexibility in your company. This way you will be able to cope with the uncertainty that is the nature of business.
18. A Law of Success
“Success in business boosts the high-level managers’ egos.” Al Ries
The enemy of ego is successful in marketing. The success of marketing is correlated with the subjective and a focus on judgment, not the market. The success of a company is a key element for line extensions. Many companies mistakenly believe that their current successes will be extended to different lines.
19. The Law of Failure
Failure is to be accepted and expected. Knowing your failures in advance can help you cut your losses. Most of the time it is best to stop your losses as early as possible instead of spending a lot of time and money trying to repair things.
20. The Law of Hype
It is not necessary to be exaggerated. A business that is successful doesn’t require the hype of others, and having to rely on hype typically means your company is in danger. In addition, the hype is often not correct. It’s often contrary to what is reported in the media. The real revolutions in the business do not arrive at midday with marches bands. They show up unannounced in late at night and are sneaky and sneaky.
21. The Law on Acceleration
It is important to base your business decisions on trends and not fashions. The authors define fads as waves, whereas trends are the waves. Fads can be the subject of significant attention however trends are the primary driver. Be sure to thwart fads whenever they appear. One method to ensure the long-term interest in your products is to not be able to satisfy all the demands.
22. Law of Resources
“Today brands are made, not born. The brand that is new must be able to attract positive publicity in the media otherwise it won’t stand an opportunity in the marketplace.”Al Ries – Al Ries
The most innovative ideas won’t take off without adequate resources. It is important to have money in order to begin to think and you require money to remain there. It is important to identify an idea, and then make the most of it through spending money.
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