The 22 Immutable Laws of Marketing by Al Ries and Jack Trout. This is a relatively short book. Only 130 pages or thereabouts. As the name suggests, the book is structured into 22 laws, each with 1 chapter.
Got this book after I decided to learn a bit about marketing. Having been through an entire finance degree and retaining little useful information about finance, however, I opted to learn about marketing with a “lean” amount of information. Perhaps you understand why I chose this particular non-fiction from among other books of the marketing genre.
In order to crystallise and consolidate my own knowledge from the book and also to create a useful summary, I’ll briefly summarise each of the 22 laws.
- The Law of Leadership. If you are perceived as being the first to do something there is a psychological preference given in buying decisions. I think this is Apple’s main advantage over Samsung with smart phones, it’s certainly part of the reason I prefer Apple.
- The Law of the Category. “If you can’t be first in a category, set up a new category you can be first in”. In other words, don’t try to beat Toyota in the car market, but perhaps try to beat them in a certain niche of the car market.
- The Law of the Mind. Closely related to the Law of Leadership. This states that it’s not so important that you are first in the market as you are first in the market in the minds of consumers. If you are first, people have to know that for it be advantageous.
- The Law of Perception. Marketing is not a battle of products, it’s a battle of perceptions. Often it’s not hard and fast facts which lead to marketing success, but rather working perceptions so as to influence consumer behaviour. It’s not so much about objective facts about products as it is about presenting products in a compelling way. In the long run, the best product does not always win.
- The Law of Focus. It’s a great victory in marketing if a company can own a word in the customer’s mind. FedEx managed to put the word “overnight” in peoples’ minds and their success skyrocketed because there was demand for that.
- The Law of Exclusivity. Two companies cannot control the same word in the customer’s mind. The one who already owns the word has managed to retain it time and time again.
- The Law of the Ladder. People tend to have a mental image of hierarchies between firms in certain industries, and if a company acts as if they are higher than they are they look upstart. Perhaps like they have no social intelligence. Thus the marketing strategy needs to take into account the company’s place on the ladder.
- The Law of Duality. In the long run every market becomes a two-horse race. I believe that this is due to the following law. Basically people tend to choose the product or they’ll choose the alternative. Think Apple and Samsung.
- The Law of the Opposite. If you want to be number two, present a popular alternative, don’t try to do what they do also.
- The Law of Division. Market categories divide over time. Thus the total number of categories tends to increase and become more niche.
- The Law of Perspective. These forces tend to occur over an extended period of time i.e. over the long run.
- The Law of Line Extension. It’s difficult to get a foothold in an established market so firms often leverage their existing brands. This weakens the brand in its key market category so this might not be smart in the long run.
- The Law of Sacrifice. The three things to sacrifice are product line, target market and change with time. Basically you need to say no to certain things in order to stand for something.
- The Law of Attributes. If the market leader is toothpaste that “fights cavities” for example, there are often other attributes which people will look for. “Whitens teeth” is another good attribute.
- The Law of Candor. A message of self-effacing honesty can make people drop their guards and be more receptive, there should be a positive message in there as well though.
- The Law of Singularity. It tends to be better to make singular definite moves than multiple unsure ones. Also, there is only ever one line of best practise, all others being relatively ineffectual. Not sure about that last part.
- The Law of Unpredictability. Peter’s law: the unexpected is always what happens.
- The Law of Success. “Ego is the enemy”. Success leads to arrogance and arrogance leads to failure.
- The Law of Failure. Failure is to be expected and accepted. Organisations should have the ability to accept failure. Japanese firms are good at doing this because they have a consensus approach to decision-making.
- The Law of Hype. The press often gets it wrong. The real story is often happening quietly, off the front pages.
- The Law of Acceleration. There are trends and fads. Trends last over the long term and accelerate slowly. Fads accelerate very quickly but don’t last long. Think Pokemon GO. Unless you have a way of cashing in big time from a fad, it’s usually better to hang your hat on a trend.
- The Law of Resources. Applies to business in general but regarding marketing, a good idea won’t have great effect if it’s not adequately funded.