The 22 Laws & Segmentation Profiles

8/7/2019 The 22 Laws & Segmentation Profiles

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Copyright Tiomthy K. Mantz 1992 1

Marketing 467

Week 1

Tim Mantz


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Implementation of a marketing plan

Make sure all aspects are in alignment

Mission Segmentation

Product Price

Place Promotion


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#1. The Law of Leadership

It is better to be first than it is to be better

First 2 people to fly across the Atlantic solo1. Lindbergh

2. HinklerThe leading Brand in a category is almost always

first into a prospects mind.Hertz, IBM, Coca Cola, Disneyland, McDonalds


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#2. The Law of the Category

What is the name of the third person to fly across

the Atlantic Solo?1. Lindbergh

2. Hinkler3. Earhart

Amelia Earhart was third person but first woman


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#2. The Law of the Category

If you cant be first in a Category, set up a new

category.E.g., Computers category- IBM is #1

Burroughs, Control Data, GE, Honeywell, NCR,RCA, Sperry (Nicknamed 7 Dwarfs)

Who became a worldwide powerhouse andsecond largest?

DEC. DEC became #1 in Mini Computers


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#3. The Law of the Mind

It is better to be first in the mind than first in the

marketplace.Altair created 1st PC- The 8800

Du Mont invented first TV

Duryea first automobile

Remington Rand was first computer- Univac

IBM out-marketed themIt is extremely hard to change a consumers perception

once its been driven home


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#3. The Law of the Mind

Great example- Pepsi challenge.

Results: Pepsi tastes better than Coke

New coke tastes better than PepsiThen why is coke classic still #1 by a lot?


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#5. The Law of Focus

The most powerful concept in marketing is

owning a word in the prospects mindFederal Express- Overnight

Volvo- safetyIBM computer

Copier- XeroxChocolate Bar Hersheys (Great American Choc.

Bar)


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#6. The Law of Exclusivity

Two companies cannot own the same word in

the prospects mind.Duracell owns long lasting

Energizer Bunny is far secondVolvo owns safe

GM, Mercedes an VW tried to use it.VW ad- Crunchy on the outside.


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#7. The Law of the Ladder

The strategy you use depends on which rung you occupy.

If you are first in a prospects mind then your tact will be different ifyou are 2nd or 3rd.

1. Hertz

2. Avis

3. NationalIn the 70s Avis used finest in Rent-a-Cars.

Consumers did not buy it because they were not #1 in their mind

and on the ladder.When Avis switched to: Were #2 and we try harder, they became

profitable.


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#8. The Law of Duality

In the long run every market becomes a two

horse race.1. Coke

2. Pepsi3. Royal who

Nike/ Adidas, McDonalds/Burger King,Crest/Colgate


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#9. The Law of the Opposite

If you are shooting for second place your

strategy is determined by the Leader.1. Coke

2. Pepsi

Wherever a leader is strong there are opportunities.

Dont try to be better, be different.

Coke is the old classic.Pepsi is the new Pepsi Generation


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#10. The Law of Division

Over time a category will divide to become 2 or

more categories.Category: Computers-

1. Mainframes1. Super

2. Fault

2. Minis1. PCs

2. Laptops


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#10. The Law of Division

Television had 3 networks that accounted for 90%

of viewing audience.Now with FOX, UPN and Cable, three majors

capture closer to 40%


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#11. The Law of the Perspective

Marketing effects take place over an extended periodof time.

Is alcohol a stimulant or depressant? Short term effect is depressing a persons inhibitions-

acting like a stimulant

Long term effects is they pass out!E.g. Does a Sale increase a retailers business or decrease it.Short Term- a sale increases businessLong Term- teaches consumers not to buy unless there is

a saleE.G. Pizza Coupons


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#12. The Law of the Line Extension

Theres an irresistible pressure to extend the Equity ofa Brand.

Michelob was known as a full flavored beer.Then it released: Michelob Lite Michelob Dry Michelob Ice

The brand went downhill and lost share.Heineken saw this mistake and successfully introducedAmstel Lite.


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#13. The Law of Sacrifice

You have to give up something in order to get

something.Marlboro was known as a full flavored brand. They

came out with lights and menthol and lost share.They dropped the latter and kept the Origional.

E.g., Kraft- Strong Brand 9% of Jellies and Jams

Smuckers has 35%. With a name like Smuckers

Dont be a generalist!


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#14. The Law of Attributes

For ever attribute, there is an effective opposite

attribute.1. Crest- Fights cavities

2. Aim- Tastes Good3. Ultrabrite- Whitens teeth

4. Close-Up -Freshens breath


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#15. The Law of Candor

When you admit a negative, the prospect will

give you a positive.Avis Were # 2, so we try harder

1970 VW Bug- will stay uglier longer.


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#16. The Law of Singularity

In each situation, only one move will produce

substantial results.Use your segmentation and research to determine whereyour competitor is vulnerable.

Auto market owned by US auto makers up till the 60s.Japanese went for the low end. Germans went for thehigh end.

GM started making look alike cars across brands and triedto move high and low, neither successfully


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#17. The Law of Unpredictability

Unless you write your competitors plans, you

cant predict the future.Wang failed to predict the fall of the word

processor!

When General Pickett was asked at Gettysburgwhich general was responsible for the defeat of

the Rebel Army, he replied, Ive always thoughtthe Yankees had something to do with it.


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#17. The Law of Unpredictability

Faxes were invented in the U.S. None are made

here today because research showed peoplewould rather get a clean original overnight thana low quality fax.

Orville Redenbacher used research to determinepeople would pay more for High End Gourmet

Popcorn.


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19. The law of Failure

Failure is to be expected and accepted.

Too many companies try to fix things rather thandrop them. AMC should have dropped its carsand focused on Jeep. IBM should drop Copiersand Xerox should drop computers.


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20. The law of Hype

The situation is often the opposite of the way it

appears in the press.New coke received a ton of press. Great products

receive little hype at maturity.

Polyester was going to make wool obsolete!


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22. The law of Resources

Without adequate funding an idea wont get off

the ground.Even the best ideas die without proper resources.

A&M pet products in Houston, TX invented

clumping cat litter. The brand was called ScoopAway.

The # 1 manufacturer Golden Cat recognizing agreat idea introduced their own called TidyScoop. Guess who wins?


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Segmentation Profiles

Tim Mantz

Need Focused Individuals


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Need Focused Individuals

11% of U.S. Adult Population

Have limited material resources

Are preoccupied with the satisfaction of lifesbasic needs

Have perspectives that are influenced by theeffects of their severely limited resources

Feel left out of the cultural mainstream

Tend to feel powerless, and without real oreffective advocates

Type 1


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Type 1

Need focused 4%

Very poor

Old

Struggling against poverty Conventional

Conservative

Traditional

Feel uninvolved or powerless Unable to fend for themselves

See the need for change- Wishthings were the way they were

Discouraged about positive changeever occurring

Type 1


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Type 1

Need focused 4%

Home- Public or lowincome housing

Work- Retired or onWelfare

Car- NoneEntertainment- Watch TV,

Talk on phone

Type 2


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Type 2

Need focused- 7%

Low, frequently sporadic income Younger than Type 1 Little formal education

Distrustful of the System Generally alienated from mainstream values

and thought May be chronically angry about their

circumstances Distrust elected officials Anxious to get ahead Face limited prospects Many minority group members Less likely than Type 1 to passively accept

their circumstances Expect more of the future than Type 1 Try to get around, take advantage of, or

bend the law

Type 2


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Type 2

Need focused- 7%

Home Apartment in ghetto

Work- Sporadic laborer

Car- Older flashy car, low rider Impala

Entertainment- Hang out with friends

Bumper Sticker- One day at a time

Outer Focused Individuals


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Outer Focused Individuals

66% of U.S. Adult Population The personification of Middle America

Are oriented towards mainstream activities, beliefs and traditions. Are

ordinarily supporters of the cultural status quo. Are focused on home and family

Want to fit in and be accepted by others

Behave conventionally and within the boundaries of well accepted social

norms Tend to be happy and satisfied with their lives

Are resistant to change for its own sake

Favor familiar and well known

Are somewhat materialistic and want possessions that both benefit theirfamilies and reflect active participation in the material world

Are typically neither demonstrative nor vocal about their convictions

Type 3P


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Type 3P

Outer focused- 22%

Moderate income

Traditional

Mainstream Typify middle class America

Family Oriented

Cautious Conformant

Conservative

Content Want to fit in and be

accepted

Type 3P


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Type 3P

Outer focused- 22%

Slow to change opinion Loyal to the U.S. Favor known institutions

Want the system to work Dislike change for changes sake Love their country Supportive of the military

Conservative about religion, morals,and the family unit and its cohesiveness more affluent and educated than Type

3C More progressive, more permissive, and

less conservative in many respects More flexible or tolerant than

Type 3C Likely to have live and let live attitude

Type 3P


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Type 3P

Outer focused- 22%

Home- Modest

Work Assembly line,union jobs

Car American Chevy,

FordEntertainment Visiting

family & friends

Bumper Sticker-Disneyland

Type 3C


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Type 3C

Outer focused- 16%

Moderate income

Traditional

Mainstream Typify middle class America

Family Oriented

Cautious Conformant

Conservative

Content Want to fit in and be

accepted

Type 3C


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Type 3C

Outer focused- 16%

Slow to change opinion Loyal to the U.S.

Favor known institutions Want the system to work Dislike change for changes sake Love their country

Supportive of the military Conservative about religion, morals,and the family unit and its cohesiveness

Less affluent and educated than Type3p

Narrowly focused Less flexible or tolerant than

Type 3p Surer of their convictions than Type 3p

Type 3C


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Type 3C

Outer focused- 16%

Home- Modest

Work Assembly line,union jobs

Car American Pickup

Entertainment Visitingfamily & friends

Bumper Sticker- Protectedby Smith & Wesson

Type 4


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e

Outer focused- 10%

Moderate income Young Ambitious Competitive Striving Seek growth and advancement Anxious for greater material success Seek approval of higher status

groups Ask much of both themselves and

the system

Believes the system treats themunfairly

Distrust institutional information

Type 4


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Outer focused- 10%

Home- Apartment or starterhome

Work Lower management,lack experience and polish

Car MR2, Mustang

Entertainment Bowling, pool,golf at public courses

Bumper Sticker- My other car is

a Mercedes

Type 5


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Outer focused- 18%

High Income

Conservative

Hard working

Self Reliant

Self Confident Personify material

success

Feel that their hard workhas entitled them to thebest

Type 5


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Outer focused- 18%

Like their success to show

Do not like radical change Favor leaders who have

earned positions of respect

Encourage U.S. IndustrialGrowth

Want U.S. to be involved in

world affairs Supports the military

Type 5


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Outer focused- 18%

Home- Best neighborhood,large home, landscaped and

decoratedWork High level exec or

company owner

Car Cadillac, Mercedes,BMW

Entertainment Expensiveadult toys (yachts, golf clubs,

cars), country clubs, patronof the arts

Bumper Sticker- Yale, Wharton

Inner Focused Individuals


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Are less oriented toward the status quo, the accepted, or the traditional Rely more on their own judgment than on social norms

Are strongly individualistic, expressive, and complex Seek first-hand involvement in the world; are less likely to passivespectators

Are more risk-oriented

Embrace the new, different, and usual Are more adventurous with new ideas, philosophies, and experiences Are not likely to view money and possessions as ends in themselves Are more passionate about their beliefs and values

Frequently lead the establishment of new cultural and social trends

Type 6


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Inner focused- 3%

Low to moderate income Young

A transitional type Rebellious Countercultural

Flamboyant Inventive Strongly attuned to peers and

peer pressure

Embrace radical change Want to break away from

what has gone on before

Type 6


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Inner focused- 3%

Home- Live with parents orfriends

Work part time job or inschoolCar Weird cars that have been

painted or customized to not

look normal, tie-dye etc.Entertainment Countercultural music, illegaldrugs, anything unacceptable

to societyBumper Sticker- F@#$!

Everybody

Type 7


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Inner focused- 5%

Moderate income

Younger Independent

Self Reliant

Energetic

Experimental

Seeking first handexperience

Type 7


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Inner focused- 5%

On the go

Enjoy active Risky Sports

Usually very liberal Often establish new ideas and

trends

Rely more on feelings thanlogic or reason

Attuned to growth andchange

Prefer the unusual, impulsiveor daring

Type 7


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Inner focused- 5%

Home- Apartment or Simplehome, not much their

Work Something meaningfulto them, creative- ArtDirector/ writer, computerprogrammer

Car 4WD, Subaru, 4 Runner,Audi or Saab (must carrytheir toys)

Entertainment Extreme

sports, rock climbing,skydiving, mountain bikingBumper Sticker- Its not a sport

if you cant die.

Type 8


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Inner focused- 10%

High Income

Highly Educated

Strongly concerned withsocial issues, trends andevents

Often activists for change

Culturally and politically

savvy Unafraid of new and

different

Type 8


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Inner focused- 10%

Information sponges

Evaluate issues and

candidates carefully Resistant to many marketing

and advertising techniques

Frequently single issue liberalagenda spokespersons (e.g.,over population)

Feel a responsibility to bepolitically participative

Type 8


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Inner focused- 10%

Home- Upscale but less obvious,acquire a home they like ratherthan what is culturally acceptable.Work Staff positions whereeducation is a plus, doctors,lawyers, college professors

Car Volvo- can justify as thesafestEntertainment Patron of theArts, believe in Art, beach clean-upsBumper Sticker- Kill yourtelevision/ I give to NPR

Outer/Inner Focused Individuals


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Are psychologically and emotionally mature

Have great intellectual and psychologicalresources

Are sensitive to the problems, needs, and

circumstances of others Are concerned with what is fitting and

appropriate

Frequently have lifestyles characterized bybalanced perspective and tempered judgement

Type 9


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Inner/Outer focused 5%

High Income

Well educated

Sensitive

Attentive

Emotionally andpsychologically mature

Wise Have perspective and a

large field of vision

Type 9

I /O 5%


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Understanding andtolerant of others

Concerned withaccomplishments rather

than process Decisive

Less concerned about

status, station, or beingpolitically correct

Type 9

I /O 5%


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Home- Can be simple orelegant. Whatever they arecomfortable in.

Work Business of theirchoosing, entrepreneur orcraftsman, proud andconfident of accomplishment

Car Classic Car Entertainment Art,

sculpture, painting,

gardening, writing, crafts Bumper Sticker- Classic CarRestoration Society

The 22 Laws & Segmentation Profiles

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