22 Immutable Laws

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Summary of 22 Immutable laws

Transcript of 22 Immutable Laws

SUMMARY ON 22 IMMUTABLE LAWS OF MARKETING

Submitted ByName: D.SANTOSHRoll Number: 15PGP013

Law 1: Law of Leadership

Its better to be first than it is to be better

It is always better to be first than to be better because its much easier to get into the mind first than to try to convince someone you have a better product than the one that did get there first.

Examples:

1. Mahindra Tractors introduced tractors in India way back in 1940s and till date it remains as the market leader in tractors with around 50% market share2. Surf was the first detergent powder to be introduced in India3. Godrej and Boyce Industries is the first to enter into organized Interior design market through Godrej Interio4. Maruti Udyog Limited is the first company to enter into hatchback segment and still holds the leadership position in the industry5. Cadbury was the first company to introduce chocolates and confectionery in India6. Nestle was the first to introduce instant noodles in India with the brand name Maggi7. Britannia is the first biscuit company in India8. Amul is the oldest and first established dairy company in India9. TATA Steel was the first company in India to produce steel 10. Fair & Lovely is the first fairness cream in India

Law 2: Law of the Category

If you cant be the first in a category, set up a new category you can be first in

If you didnt get into the prospects mind first, dont give up hope. Find a new category you can be first in.

Examples:

1. TVS Scooty was the first to get into exclusive women bikes. Now people refer the category itself by the name Scooty only2. Royal Enfield Continental GT caf racer is the first of its kind of bike in India3. Dell is the first to introduce customization in Laptops4. Ola cabs is the first to enter into app based taxi on demand category5. Urban ladder is the first furniture e-commerce website in India6. Zomato app is the first of its kind app in India to review hotels7. Dettol is the first germ protection product introduced in India8. Fair & Handsome is Indias first fairness cream for men9. Paperboat is the first company to enter introduce a new category known as Ethnic drinks10. TATA Ace was the first vehicle in the SCV segment

Law 3: Law of Mind

Its better to be first in the mind than it is be first in the marketplace

Marketing is not battle of product; it is the battle of perception. Then it is very much necessary to be at the top of the consumers mind.

Examples:

1. Best after sales network Maruti Suzuki2. Innovation Apple3. Search Engine Google4. Photocopy Xerox (Infact some people dont know the word Photocopy)5. Pizza Dominos6. Online Shopping Flipkart7. Economy bikes Hero Motocorp8. Luxury Cars Mercedes Benz9. Safety in Cars Volvo10. Home Appliances LG

Law 4: Law of Perception

Marketing is not a battle of Products, its a battle of perception

One of the important aspects of marketing is creating a perception in the mind of the consumers. A good product can be perceived as a bad one and the vice versa.

Examples:

1. TATA Nano Cheap Car2. TATA Indica Taxi Car3. Marie gold biscuits Tasteless biscuits4. Starbucks Expensive coffee 5. Taj Hotels, Rolex, Rolls Royce Cars Luxury 6. Maggi 2 minute cooking time7. Close Up Freshness

Law 5: Law of Focus

The most powerful concept in marketing is owning a word in the prospects mind

The law of leadership states that its better to be first than to be better. It enables the company to own a word in the mind of the consumers, The word should be simple and it is sometimes invisible.

Examples:

1. Photocopier Xerox2. Cola drink Coca Cola3. Cavities Colgate Toothpaste4. 100% Germ Protection Dettol 5. On time arrival IndiGo Airlines6. Youngistaan Pepsi 7. The Complete Man Raymonds

Law 6: Law of Exclusivity

Two companies cannot own the same word in the prospects mind

When a competitor owns a particular or position in the mind of consumers, it is not advisable to own the same word. It is very difficult to change the mind of consumers once they are made up.

Examples:

1. Maggi - 2 minute noodles Nestle used this slogan to penetrate into the minds of the consumers. After that no other brand dared to use that word because consumers related noodles to Maggi and made up their mind for that. Maggi held nearly 90% market share in instant noodles market2. Duracell Long lasting Battery The company communicated longer life of its battery through this slogan and occupied a strong position in the consumers mind. Competitors could not penetrate into consumers mind with the same words3. Pepsi Youngistaan Pepsi positioned itself as a drink for youth through these words while Coca Cola used the word Classic4. Dominos 30 minutes home delivery Dominos owned the word home delivery for pizza and still it remains as one of the X-factors for them. 5. Volvo Safety Volvo owns the word safety. Mercedes tried to own the word safety but couldnt succeed. So it started using the word Excellence

Law 7: Law of the Ladder

The strategy to use depends on which rung you occupy on the ladder

All products are not created equal. Theres a hierarchy in the mind that prospects use in making decisions. For each category, there is a product ladder in the mind. On each rung is a brand name. Your marketing strategy should depend on how soon you got into the mind and consequently which rung of the ladder you occupy.

Products Purchase every Day & High Interest Products Many Rungs on ladders Infrequent Purchase & Personal Pride Many Rungs Infrequent Purchase & Unpleasant experience- Very few rings Purchased once in lifetime & Unpleasant No rungs Examples:

1. Hatchback Cars Maruti Suzuki is the market leader in this segment their marketing strategy is entirely different from other players like Hyundai, Honda, Renault2. Beauty Soaps3. Detergents4. Carbonated drinks5. E-commerce sites

Law 8: Law of Duality

In the long run, every market becomes a two-horse race

When we take the long view of marketing, you find the battle usually winds up as a titanic struggle between two major players generally the old reliable brand and the upstart.

Examples:

1. Pepsi Coca Cola In Carbonated soft drink industry2. TATA motors Ashok Leyland In Commercial Vehicle industry3. Mahindra TAFE In Tractor Industry 4. Hindustan Unilever Procter & Gamble In FMCG industry 5. Dell HP In Laptop Industry 6. Nintendo - Sega In Videogame Industry 7. Maruti Suzuki Hyundai In Hatchback car segment

Law 9: Law of Opposite

If you are shooting for second place, your strategy is determined by the leader

Much like a wrestler uses his opponents strength against him, a company should leverage the leaders strength into a weakness. You must discover the essence of the leader and then present the prospect with the opposite. Simply, dont try to be better, try to be different. Often its upstart versus old reliable

Examples:

1. Pepsi marketing strategy is based on Coca Cola2. Ashok Leyland strategy is based on TATA motors3. P&Gs strategy is based on the HUL4. Samsungs marketing strategy is dependent on Apple5. Hyundai markets its products based on Maruti Suzuki strategy

Law 10: Law of Division

Over time, a category will divide and become two or more categories

Like an amoeba dividing in a petri dish, the marketing arena can be viewed as an ever-expanding sea of categories. A category starts off as a single entity.

Examples:

1. Cars divided into Hatchbacks, SUV, MUV, Sedan, Entry level sedan, Premium hatchback, luxury cars, Sub 4m SUV, 2. Bikes divided into Commuter bikes, Sports bikes, Super bikes, Dirt bikes, Scooters, Mobikes3. Phones divided into Landline, Mobile phones, Tablet, Phablet, Smart phone

Law 11: Law of Perspective

Marketing effects take place over an extended period of time

Many marketing moves exhibit a phenomenon where the long-term effects are exact opposite of the short-term effects.

Examples:

1. Big Bazaar gives discount coupons to its customers for increasing the sales. This increased the sales in the short run but in the long run it did not turn out to be a good option2. E-commerce websites All the sites like Flipkart, Amazon, Snapdeal, Myntra, Jabong gives huge discounts to the customers to encourage them for sales. The trend has been so that the customers buy products from sites that give more discounts

Law 12: Law of Line Extension

Theres an irresistible pressure to extend the equity of the brand

When a company becomes highly successful starts to believe it can be succeed in any business field it is choosing. Whenever that happens, the company ends up becoming weaker rather than stronger because it attempts to be all things all people rather than staying focused to one segment.

Examples:

1. Tata Originally Tata started with Textiles and expanded into Automobiles, Hospitality, Steel making, Airlines, Power2. Mahindra Initially Mahindra started with Jeep assembling and then diversified into various businesses like IT, Hospitality, Energy, Agri business, Aerospace, Two wheelers3. ITC Started as cigarette company and then diversified into FMCG, Agro business, Hotels and Stationery products4. Pepsico Started as a soft drink company and expanded into Chips, packaged drinking water and FMCG products5. Reliance Group Started as an Oil trading business and expanded into Oil refineries, Retail stores, Home appliance stores, Footwear

Law 13: 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 Constant Change

Examples:

1. Pepsi It sacrificed its target market. It targeted only the youths rather than the entire consumer base and now its the leading brand among youths2. Apple Produced products for Upper middle class and High-class customers only. It never gave products to the lower segment of the market3. Royal Enfield Offered only bikes above 350cc and did not extend the product line. Now it is the leader in that segment

Law 14: Law of Attributes

For every attribute, there is an opposite, effective attribute

Very often competitors emulate to follow the attributes of the leader. But this wont work. Its always better to search for attributes that will allow you to play off against the leader.

Examples:

1. Colgate toothpaste promoted itself as the one that prevents Cavities and Close Up promoted it as the toothpaste that gives Freshness2. Coca Cola focused on Old people. But Pepsi targeted the Youths and succeeded 3. TVS Scooty focused on the women market. On the other hand Hero Maestro promoted it as Its a boy thing4. KFC uses the tagline Its finger lickin good pointing the taste. Subway uses the tagline Eat Fresh conveying the attribute Freshness5. Lux soap focuses on beauty while medimix focuses on germ protection6. Facebook is a social networking site on the other hand Linkedin took another attribute of Professional networking

Law 15: Law of Candor

When you admit a negative, the prospect will give you a positive

It goes against corporate and human nature to admit a problem. For years, the power of positive thinking has been drummed into us. "Think positive" has been the subject of endless books and articles.

So it may come as a surprise to you that one of the most effective ways to get into a prospect's mind is to first admit a negative and then twist it into a positive.

A good example of this comes from IIT-JEE coaching industry of Kota, Rajasthan. The top coaching institute of Kota for many years Bansal Classes used to take only the very intelligent students, used to teach them in exclusive batches with very good teachers and used to give very good results. This used to give a feeling of neglect in people from other batches

To counter the challenge of Bansal Classes, Allen Institute Kota openly admitted that it gave admission to students of all types of caliber ( a negative ) and then all the batches would have equally good faculties. Allen clearly states in its website that ALLEN has a significant education system with a humble birth and an institution where no student is ever neglected, where every action and thought is student oriented.

This positioning of Allen from its inception helped it achieve rapid growth in the top institute of Kota.

One final note: The law of candor must be used carefully and with great skill. First, your "negative" must be widely perceived as a negative. It has to trigger an instant agreement with your prospects mind. If the negative doesn't register quickly, your prospect will be confused and will wonder, What's this all about?"

Next, you have to shift quickly to the positive. The purpose of candor isn't to apologize. The purpose of candour is to set up a benefit that will convince your prospect.

This law only proves the old maxim: Honesty is the best policy.

Examples:

1. Cadbury bournville advertised it as Not so sweet chocolate

Law 16: Law of Singularity

In each situation, only one move will produce substantial results

Marketers see success as the sum total of a lot of small efforts beautifully executed. They think they can pick and choose from a number of different strategies and still successful as long as they put enough effort into the program. History teaches that the only thing that works in marketing is the single, bold stroke. Furthermore, in any given situation there is only one move that will produce substantial results.

Examples:

1. Pepsi Focused only on youth and promoted the products to them only. It succeeded in capturing the market2. Maruti Suzuki Swift Tried to introduce different products like Alto, Wagon R, Estilo and Swift. But in the end only swift succeeded in capturing the market3. State Bank of India Introduced different schemes and promotions but succeeded in rural market penetration. It is the only national bank to have most number of customer touch points4. Mahindra & Mahindra It was introducing a series of SUVs after the success of Bolero and Scorpio. Every product failed except XUV5oo which created a buzz in the market 5. General Motors Tried to get into all the car segments like Hatchback, Sedan and SUV. But Sedan were only successful for them

Law 17: Law of Unpredictability

Unless you write your competitors plans, you cant predict the future

Implicit in most marketing plans is an assumption about the future. Yet marketing plans based on what will happen in the future are usually wrong.

With hundreds of computers and an army of meteorologists, no one can predict the weather three days in advance, so how do you expect to predict your market three years ill advance?

Good short-term planning is coming up with that angle or word that differentiates your product or company. Then you set up a coherent long-term marketing direction that builds a program to maximize that idea or angle. It's not a long-term plan. it's a long-term direction.

So what can you do? How can you best cope with unpredictability? While you can't predict the future, you can get a handle on trends, which is a way to take advantage of change.

If this is not done companies would go BPL, Videocon way.

The danger in working with trends is extrapolation. Many companies jump to conclusions about how far a trend will go.

Equally as bad as extrapolating a trend is the common practice of assuming the future will be a replay of the present. When you assume that nothing will change, you are predicting the future just as surely as when you assume that something will change, Remember Peter's Law: The unexpected always happens.

While tracking trends can be a useful tool in dealing with the unpredictable future, market research can be more of a problem than a help. Research does best at measuring the past. New ideas and concepts are almost impossible to measure. No one has a frame of reference. People don't know what they will do until they face an actual decision.

One final note that's worth mentioning: There's a difference between "predicting" the future and "taking a chance" on the future.

No one can predict the future with any degree of certainty. Nor should marketing plans try to.

Examples:

1. General Motors was doing fine until the financial folks took over and focused on numbers rather than the competitors

Law 18: Law of Success

Success often leads to arrogance, and arrogance to failure

The Law of Success often leads to arrogance, and arrogance to failure. 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. Dont 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. Its that little stuff that leads to success. Be confident, not arrogant! Examples:1. Hindustan Ambassador - Ambassador was the first car to be made in India and was once a status symbol, but began losing its dominance in the mid-1980s when Maruti Suzuki introduced its low-priced 800 hatchback and further when global automakers began setting up shop in India in the mid-1990s, offering models with contemporary designs and technology. It failed to re-invent itself2. IBM In 1985 IBM assumed they owned the PC market. They concentrated too much on hardware while ignoring development on software and Internet3. Nokia From 60% market share in 2006 it lost in mobile market, being slow to adapt to trends in smartphones, dual sim phones, and touchscreens. Finally it got taken over by competitors and was sold to Microsoft4. Kodak It was clear market leader but lost when during the dawn of digital age5. Blackberry Once market leader in terms of Safety and privacy in mobile communication, it remain stagnant on this two factorials while ignoring need for wi-fi, restrictive memory capacity and capacitive touchscreen. It adapted it later but was to late for it6. HMT Indias oldest watchmaker was shut down due to heavy financial losses. HMT dominated Indias watch market during the 1970s. Such was once its sway that it even had a waiting period, which could run up to 10 months. Introduction of Quartz watches by Titan at cheaper prices took the market away7. Kinetic Honda - A premium scooter in its brighter days. Lost to TVS scooty and tussle within JV of Kinetic and Honda, which ultimately led to a break-up. It failed to generate sales later owing to its high price

Law 19: Law of Failure

Failure is to be expected and accepted

Companies face a tricky situation when a product or a process used in the product is a failure. Admitting a mistake and not doing anything about it is bad for your career. A better strategy is to recognize failure early and cut your losses. A company can either

Find the mistake/failure and move forward with necessary operational changesOr Accept mistake and do nothing

The second choice would be detrimental for the companys future. It would result in losses and brand value also takes a beating. Following the first law, risks need to be taken to be the first and also best in business. These risks may lead to mistakes. Admitting these mistakes in a large organization may not be easy. It may affect employees future. So we often make "safe" decisions so as to not disrupt their progress up the corporate ladder. So, if a sense of team work and incentives for taking up creative work, also creating an ecosystem where new ideas are appreciated would be beneficial for the company.

Examples:

1. Coca cola bought Thumsup, and tried to decrease the brand presence so that COKE sales would increase. This strategy failed, but Coke did not make changes for a long time. Now, Thumsup is also being marketed and sold.2. FlipKart Big Billion day sale faced a lot of technical and distribution problems. Flipkart admitted the mistake and made changes and improvements in the same3. Among the worst performing MPVs in India, the Evalia has always struggledto get going in the segment. Tomake things better, Nissan had even given the Evalia a couple of facelifts, but all efforts went in vain as the MPV didnt strike the right cord with Indian car buyers.4. Maruti has decided to pull the plug on the Estilo due to poor sales. Since its launch in 2007, the Maruti Estilo was a replacement for the Zen but it could never garner the strong sales of its predecessor.

Law 20: Law of Hype

The situation is often the opposite of the way it appears in the press

Hype is the coin of the realm in the technology business. If you listen to vendors and the media, it may sometimes seem as though every new product, service, concept or even security threat will be the Next Big Thing. Some live up to all the fuss, but many don't -- and some fail spectacularly.

When things are going well, a company doesn't need the hype. When you need the hype, it usually means you're in trouble. Over the years, the greatest hype has been for those developments that promise to single-handedly change an entire industry.

People will read the labels and buy products on their merits rather than on the size of the brand's advertising budget. It's all hype.

The hype created around a product sometimes causes the product to failure. The marketing strategies used can go wrong causing failure of the product in the market.

Over the past year, some of the most hyped products, even those that showed promise, either turned outto behuge failures or still had quite a few kinks to work out. While some products werent as great as advertised, others were poorly marketed and quickly dropped off the consumer radar.

Examples:

1. The Diet Coke was advertised fiercely in India. But the outcome, diet Coke was a failure2. Tata Nano, did not reach the hype created around it.3. Many movies like Ra-1, Bang Bang did not reach the hype that was created around them.4. Dairy Milk Bubbly was promoted heavily but hasnt got good appreciation in the market.5. Akash Tablet introduced as cheaper price was much hyped but was a failure6. Windows 8 was much hyped but did not reach the expectations7. Apple Iwatch was seen as the next big thing, but its sales were way below expectations

Law 21: Law of Acceleration

Successful programs are built on fads, they are built on trends

We have seen very many products which was very famous and was selling extreamly well in the start and had exited the market in a very short span.These products are called Fads. Its examples are as follows:

Examples:Fad:1. Tazzo2. Selfy sticks3. Beyblade4. Pokemon cards5. Cinema based merchandiseThese fads are created due to the impact of a specific seasonal happening and if one can ride it will give huge profits in the initial stage but its market will get extinguished very fast. As we can see in the examples the there are regular fads of spider man T-shirt during the time of the cinema release. But sale drops fast.Trend:1. Smart phone2. Jeans3. Photography4. Gaming5. RadioThe Smart phones as a product had a steady growth and has a sustained one since it was satisfying a specific need of the people to communicate and its value add has made it into a necessity.This shows faster it grows faster it falls. The market will sustain if it is a steady market and the one with steady growth rather a rapid increase and a fall.

Law 22: Law of Resources

Without adequate funding an idea wont get off the ground

According to this law, if you have a good idea and you've picked up this book with the thought in mind that all you need is a little marketing help, this chapter will throw cold water on that thought. Even the best idea in the world won't go very far without the money to get it off the ground. Inventors, entrepreneurs, and assorted idea generators seem to think that all their good ideas need is professional marketing help.

Examples:

1. SAS Labs was a start up in the field of information security, service and products. They failed due to lack of funding and lack of proper team formation.2. Discount bull.com: Online e-commerce platform for showing discount on clothes. The problem was lack on funds and less than attractive website.3. Techbloggers: The Company used to deliver online technology news. The main reason for their failure was lack of proper cash flow.4. Late night food: The Company was a late night food delivery service start up with outsourced food. It failed because of financial problems.5. Visifybooks: It was a company which provided video cliff notes for business books and it failed because of lack of funds.