22 Immutable Laws of Marketing Summary

The 22 Immutable
Laws of Marketing
by Al Ries and Jack Trout
Prepared by Colin Post – find me at
www.expat-chronicles.com

Slideshow put together by:
Colin Post
post.colin@gmail.com
Web development and e-marketing campaigns
Import / export management for US-South America
Inmersiones ingleses en Cundinamarca
Freelance writing

The Law of Leadership
It’s better to be first than it is to be better.
1st person to fly the Atlantic Ocean solo? Charles Lindbergh
2nd person? Bert Hinkler did it faster w/ less fuel, but who cares?
List of 1st’s to market:
Gillette
IBM
Coca-Cola
TIME magazine
Tylenol
Tide

The Law of the Category
If you can’t be first in a category, set up a new
category you can be first in.
Who was the 3rd person to fly across Atlantic, or 1st woman to fly
across Atlantic? Amelia Earhart.
1st’s in new category:
Amstel Lite (imported light beer)
Charles Schwab (discount brokerage firm)
Lear’s (mature woman’s magazine)
Dell (computers sold by phone)

The Law of the Mind
It’s better to be first in the mind
than to be first in the marketplace.
The MITS Altair 8800 was the first personal
computer on the market, but the Apple II was
the first in consumers’ minds.
Once minds are made up, it’s almost impossible
to change them.

The Law of Perception
Marketing is not a battle of products, it’s a
battle of perceptions.
All truth is relative. There is no objective reality,
only perception.
In Japan, Honda became known for motorcycles and sells almost
no cars. Could Harley-Davidson sell cars in the US?
Why is Campbell’s soup #1 in the US and nowhere in the United
Kingdom? Why is Heinz soup #1 in the UK and a failure in the
United States?

The Law of Focus
The most powerful concept in marketing is
owning a word in the prospect’s mind.
FedEx = overnight
IBM = computer
Xerox = copier
Hershey’s = chocolate bar
Coke = cola
Crest = cavities
Domino’s = delivery
Nordstrom = service

The Law of Exclusivity
Two companies cannot own the same word
in the prospect’s mind.
FedEx can’t co-own ‘worldwide’ with DHL.
Burger King can’t co-own ‘fast’ or ‘kids’ with
McDonald’s.
GM can’t co-own ‘safety’ with Volvo.

The Law of the Ladder
The strategy to use depends on which rung you
occupy on the ladder.
“Avis is only No. 2 in rent-a-cars. So why go with us? We
try harder.”
“Ask yourself … Where are we on the ladder in the
prospect’s mind? … Then make sure your program
deals realistically with your position on the ladder.”

The Law of Duality
In the long run, every market becomes a two-
horse race.
Coke and Pepsi
Energizer and Duracell
“Only businesses that are No. 1 or No. 2 in their
markets could win in the increasingly competitive
global arena. Those that could not were fixed,
closed, or sold.” – GE CEO Jack Welch

The Law of the Opposite
If you’re shooting for second place, your strategy
is determined by the leader.
In strength there is weakness. If you’re #2, attack the leader.
100 year-old Coke was the classic. Pepsi became the “new
generation.”
TIME magazine features colorful writing, so Newsweek focused
on a straightforward style.
Scope attacked Listerine’s bad taste by calling itself the “good-
tasting mouthwash that kills germs.”

The Law of Division
Over time, a category will divide and become
two or more categories.
Automobiles segmented into luxury, full-size, economy,
more.
Beer segmented into premium, light, craft, etc.

The Law of Perspective
Marketing effects take place over an extended
period of time.
It takes years for perceptions to change, positive
or negative consequences to culminate.

The Law of Line Extension
There’s an irresistible pressure to extend the
equity of the brand.
“When you try to be all things to all people, you
inevitably wind up in trouble.”
Line Extension failures
• A1 poultry sauce
• Life Savers gum
• Tanqueray vodka
• Heinz baby food

The Law of Sacrifice
You have to give up something in order to get
something.
- opposite of line extension
Narrow focus is key:
Victoria’s Secret – sexy undergarments
Foot Locker – athletic shoes
Marlboro – cowboy
FedEx – overnight

The Law of Attributes
For every attribute, there is an opposite,
effective attribute.
- don’t emulate the leader
Toothpaste brands and attributes:
Crest – fights cavities
Aim – tastes good
Ultra brite – whitens teeth
Close-up – freshens breath

The Law of Singularity
In each situation, only one move will produce
substantial results.
Of all the attacks on GM over the years, only
two flanking moves bore fruit. Japanese
makers with small, inexpensive cars on low-
end and German makers with expensive
super-premium cars on high-end.

The Law of Unpredictability
Unless you can write your competitors’ plans,
you can’t predict the future.
The unexpected always happens … Research does best
at measuring the past … New ideas and concepts
are almost impossible to measure.”
e.g. Xerox market research said nobody would pay five
cents for a plain paper copy.

The Law of Succes
Success often leads to arrogance, and arrogance
to failure.
“You start thinking you can do anything … I got into
frozen pizzas for a while and that was a disaster. If I
hadn’t … Domino’s would probably would have a lot
more stores by now.” – Tom Monaghan of Domino’s
Pizza

The Law of Failure
Failure is to be expected and accepted.
Recognize failure early and cut your losses.
Don’t be afraid to fail.
Ready, Fire, Aim.

The Law of Hype
The situation is often the opposite of the way it
appears in the press.
Big-hype failures: New Coke, personal helicopters,
manufactured home, videophones.
Un-hyped phenomenon: fall of Soviet Union and
communism, arrival and dominance of Japanese
autos

The Law of Acceleration
Successful programs are not built on fads,
they’re built on trends.
A fad is a wave in the ocean, and a trend is the
tide.
“If faced with a rapidly rising business with
characteristics of a fad, you should dampen
the fad. Stretch it out so it becomes like a
trend.”

The Law of Resources
Without adequate funding an idea won’t get off
the ground.
“You’ll get further with a mediocre idea and a
million dollars than with a great idea alone.”
“Who has the most money to drive in the idea?
… The more successful marketers front load
their investment … Money makes the
marketing world go round.”

22 Immutable Laws of Marketing Summary

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22 Immutable Laws of Marketing Summary