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1. The Law of Leadership
It’s better to be first than it is to be better.
It’s much easier to get into the mind first than try to convince someone that you have a better
product. People usually remember who was first in a given category or who the number one leader is,
but they don’t remember the second leader. The leading brand in any category is almost always the
first brand into the prospect's mind. Hertz in rent-a-cars. IBM in computers. Coca-Cola in cola.
Neil Armstrong was the first person to walk on the moon. Who was second? No one remember….
The Law of the Category
If you can’t be first in a category, set up a new category you can be first in.
Everyone is interested in what’s new. Few people are interested in what’s better. it is more important to
be different than to be better. Every difference defines a category. And for each category, somebody is
the leader. A great example is The Mac by Apple. Microsoft is still the number one operating
system, but Apple created a different category with The Mac, which is number one in the
graphic design category.
The Law of the Mind
It’s better to be first in the mind than to be first in the market
The Law of the Mind follows from the Law of Perception. If marketing is a battle of perception, not
product, then the mind takes precedence over the marketplace. Being first in mind is everything. Being
first in the market is only important in that it allows you to get into the mind first.
Example: IBM wasn't first in the marketplace with the mainframe computer ... but IBM got into the
mind first and won the computer battle early for mainframe computers.
The Law of Perception
Marketing is not a battle of products; it’s a battle of perceptions
There is no objective reality. There are no facts. There are no best products. All that exists in the
world of marketing are perceptions in the mind of the customer. The two biggest selling Japanese
imported cars in America are Honda and Toyota. Most consumers believe the fight between
these brands is based on reliance, quality, style, horsepower, gas mileage, and price, but it really
isn’t. It’s about what people think of the Honda and Toyota that determines the winner. It’s the
battle of perception. Don't try to create a "better" product. try to create a product which is better
for a specific group of people with specific problems that are not being solved very well by
others. That specific group of people will perceive your product as the best.
5. The Law of Focus
The most powerful concept in marketing is owning a word in the prospect’s
A company can become incredibly successful if it can find a way to own a word in the mind of
the prospect. Not a complicated word. Not an invented one. The simple words are best, words
taken right out of the dictionary. This is the law of focus. You “burn” your way into the mind by
narrowing the focus to a single word or concept. It’s the ultimate marketing sacrifice.
Federal Express was able to put the word overnight into the minds of its prospects because it
sacrificed its product line and focused on overnight package delivery only.
Like Pepsi-Cola. . . youth and BMW. . . driving
The Law of Exclusivity
Two companies cannot own the same word in the prospects mind
When a competitor owns a word or position in the prospect’s mind, it is futile to attempt to own
the same word.
Example: Volvo owns safety. Many other automobile companies, including Mercedes-Benz and
General Motors, have tried to run marketing campaigns based on safety. Yet no one except
Volvo has succeeded in getting into the prospect’s mind with a safety message. You can't own
the same word or position that your competitor owns. You must find your own word to own.
You must seek out another attribute.
The Law of the Ladder
The strategy to use depends on which rung you occupy on the ladder.
Each category has its own ladder or hierarchy, and where your product or service is in this
hierarchy will determine your strategic options. It might be better to be a small fish in a big pond
than a big fish in a small pond. Example: For each category. There is a product ladder in the mind.
On each rung is a brand name. lets take the example of car rental category. In which hertz got
in the top rung. Avis got in second and national got in third.
8. The Law of Duality
In the long run, every market becomes a two horse race
In basic words duality is explain as two different sides which cannot exists one without other.
Also both sides are always in a perfect equilibrium. Never both sides will happen in the same
time and its will be in contrast, will alternate. It often takes a long time for things to settle down.
Markets usually give people what they want, which is two strong choices. Pragmatists buy
something only after they see the Early Adopters buying it. Conservatives buy it only after the
Pragmatists are buying it. Laggards buy it only when the peer pressure and ridicule is so severe
that they look like absurd for not buying it. Even as the market gets very mature, it will continue
to tolerate the presence of more than two players.Example: Coke v Pepsi, Kodak vs Fuji,
McDonalds and Burger King, Dell vs HP/Compaq, Nike and Reebok, Canon and Nikon,
National Vs Shan, Hamdard Vs Qarshi.
The Law of the Opposite
If you’re shooting for second place, your strategy is determined by the
E.g., Coke is an old soft drink, so Pepsi went successfully for the choice of a new generation.
10. The Law of Division
Over time, a category will divide and become two or more categories.
It’s a division of a category. As time passes, a category eventually divides into two or
more categories or sub-categories. The division into new categories basically caters to
different needs and wants of the prospect. For example, computers began as a single
entity but over time broke up into many different categories (mainframes, personal
computers, laptops, notebooks, etc.)
11. 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. it’s
important to be the first in the prospect’s mind, it’s also important to understand how your product or
service is perceived by the prospect. Your marketing strategies put things into perspective reasoning in
the mind of the prospect. For example, what is the benefit of having a sale? Does it produce long term
profits for your company? Typically it doesn’t. It may draw customers to your business and increase
sales in the short term, but it also educates consumers to not purchase at the regular pricing. A sale
implies that your regular prices are too high so the consumer waits until you have a sale.
12. The Law of Line Extension
There’s and irresistible pressure to extend the equity of a brand.
Line extension is the use of an established product’s brand name for a new item in the same
product category. Line Extensions occur when a company introduces additional items in the
same product category under the same brand name such as new flavors, forms, colors, added
ingredients. This is as opposed to brand extension which is a new product in a totally different
product category. The Law of Line Extension says that it is a mistake to take the name of one
product and apply it to another. Companies do this often, but it basically never works. Quite
often it is necessary to kill the second product before it causes too much damage to the first one.
13. The Law of Sacrifice
You have to give up something in order to get something.
The law of sacrifice is the opposite of the law of line extension. If you want to be successful
today, you should give something up.
There are three things to sacrifice: product line, target market, and constant change.
The full line is a luxury for a loser. If you want to be successful, you have to reduce your
product line, not expand it. Take Emery Air Freight. Emery was in the air freight services
business. Anything you wanted to ship you could ship via Emery. Small packages, large
packages, overnight service, delayed service.
Target Market: According to Fortune magazine Coca-Cola have the world’s most powerful
trademark. Coke has outsold Pepsi for years. So, what did Pepsi do? They sacrificed everything
else and focused on the teenage market only. They hired icons like Michael Jackson and Lionel
Richie to exploit this market. It worked. Pepsi closed the gap and sales were only 10% less than
Change: So many businesses fail because they change what is already working. If a product or service is
successful, leave it alone. You can enhance the service or atmosphere but do not change the basic
philosophy of what made your business and product successful. Sacrifice means the difference
between financial freedom and stressing over the bills. By making the right sacrifices and
knowing when to say NO, you too can reach financial success.
14. The Law of Attributes
For every attribute, there is an opposite, effective attribute.
Example: Coca-Cola was the original and thus the choice of older people. Pepsi successfully
positioned itself as the choice of the younger generation.
Since Crest owned cavities, other toothpastes avoided cavities and jumped on other attributes
like tastes, whitening, breathe protection. Marketing is a battle of ideas. So if you are to succeed,
you must have an idea or attribute of your own to focus your efforts around. Without one, you
had better have a low price.
Example: For many years IBM dominated the world of computers with its attributes of “big”
and “powerful.” Companies that tried to move in on those attributes had little success. RCA, GE,
UNIVAC, Burroughs, Honeywell, NCR, and Control Data lost a lot of money on mainframe
computers. Then an upstart from Boston went for the attribute of “small” and the minicomputer
was born. They probably laughed in Armonk because they knew corporate America wanted “big
and powerful.” Today “small” has grown to such proportions that IBM’s vast mainframe empire
is in serious trouble.
15. The Law of Candor
When you admit a negative, the prospect will give you a positive.
One of the most effective ways to get into the prospect's mind is to first admit a negative and
then twist it into a positive. Since you can't change a mind once it's made up, focus on using
ideas and concepts already installed in the brain. When a business practices candor it gives the
prospect a feeling of honesty and trust. With truth comes trust and building trust with your
prospects is very important.
16. The Law of Singularity
In each situation, only one move will produce substantial results.
The only thing that works in marketing is a single bold stroke. Getting into every thing, working
hard and wasting your resources in a number of programs. It’s a bad approach. Trying harder is
not the secret of marketing success. It might be Simple wastage of time and other resources.
Weakness of opponent is your strength. Try to avail the opportunity to fill the hole, that your
competitor left empty.
Example: Look at Coke. At present, Coca-Cola is fighting a two-front battle with Classic and
New Coke. While Coca-Cola Classic has regained a lot of its original strength, New Coke is
barely hanging on.
17. 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. You can not predict the future
but you can get a handle on trends and take advantage of change. IBM faced this years ago when
they developed a marketing plan to connect all personal computers to a mainframe. IBM called
the project, Office Vision. It was a great idea but wasn’t successful because of competitors like
Microsoft. IBM developed a great plan but didn’t anticipate the unexpected from the competition.
18. 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
Those that think they are market leaders tend to substitute what they think for what the market wants.
Often times, successful entrepreneurs get an ego and become less objective. They think their
strategies are the best and no one else is better than them. This may be true, but expressing it
arrogantly is a dangerous attitude that can lead to financial hardship.You still need to find time to
be interactive and be a part of your customers’ success. In the fitness industry relationships are
important to success. Customers need to trust you and once they do they will always be your customers.
Don’t get out of touch with your customers. Stay involved in some of the basic stuff. Your
ego should never get so big that you think you are too good for the “little stuff”. It’s that
little stuff that leads to success. Be confident, not arrogant!
19. The Law of Failure
"Failure is to be expected and accepted."
The Japanese are probably the best with this strategy because they leave their ego at the door and
admit early on when a mistake is made and make the appropriate changes to solve the problem.
As a result the Japanese are fierce marketers. We can stand to learn from them.
It’s been noted in many places that Thomas Edison may have failed as many as 1,000 times at
inventing an electric-powered light bulb, and when asked about his string of failures, he says “I
didn’t fail 1,000 times. I succeeded at inventing a light bulb, and it took 1,000 steps to arrive at
20. The Law of Hype
The situation is often the opposite of the way it appears in the press.
Law of hype means a new concept or situation that was successful in the press often times turns
out to be a marketing failure. When things are going well, a company does not need the hype.
When you need the hype, it usually means you are in trouble. The truth about marketing hype is
that it works. That’s why you see so much of it. A “boring” sales presentation won’t get very
many takers. There has to be excitement. There has to be some promise to the listeners.
Example: Coca-Cola’s New Coke launched in 1985, received so much hype ($1 billion of free
publicity) plus hundreds of millions of dollars launching it.60 days after being released CocaCola had to revert back to their original classic coke because All that hype and the product
21. 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. A fad gets a lot of hype, and a trend gets
Like a wave, a fad is very visible, but it goes up and down in a big hurry. Like the tide, a trend is
almost invisible, but it’s very powerful over the long term.ry little. A fad is a short-term
phenomenon that might be profitable, but a fad doesn’t last long enough to do a company much good.
Furthermore, a company often tends to gear up as if a fad were a trend. As a result, the company
is often stuck with a lot of staff, expensive manufacturing facilities, and distribution networks.(A
fashion, on the other hand, is a fad that repeats itself. Examples: short skirts for women and
double-breasted suits for men. Halley’s Comet is a fashion because it comes back every 75 years
22. The Law of Resources
Without adequate funding an idea won’t get off the ground.
You can have the best idea in the world but it won’t get far without having funds to market it.
When developing a new product or concept you have to be prepared to spend money. If you
don’t have the money, then you better have thought of ways to get it. If you lack advertising
funds and your competitor does not, you can be left behind. Competition is fierce. Companies
like Proctor & Gamble and Philip Morris spend more than $2 billion a year on advertising. It
takes money to run a business and successfully market to prospects. Some successful
entrepreneurs’ front load their investment which means they don’t take profit for a couple years
or however long necessary and put the money back into the marketing fund. Money is a
requirement to achieve financial freedom. You got to put in to get profits out!