Tag Archives: Laws of marketing

EP.67. Discussing the Immutable Laws of Marketing – Part I

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Even marketing has laws. Have a listen and get yourself informed.
Even marketing has laws. Have a listen and get yourself informed.

While marketing courses are helpful for the budding entrepreneurs, some of the teachings there just exist in the university level. In this episode, David Counsell and David Pritchard talks about the real principles that apply in the real world. This discussion is based on the book The 22 Immutable Laws of Marketing by Al Ries and Jack Trout.

In the world of business, there’s always the challenge of becoming the first and being at the top. But who could’ve thought that you can market being the second? Or you can find your own niche from the division of the segments? Or that you can use a word akin to your branding (not just about anything though like a Zafinsnuffunberger.) These are just some of the ground rules discussed and you may have gotten a crash course in marketing. And we are just even starting. So have a listen and start learning.

In this Episode

00:00 Opener
00:55 Welcome to another episode of David versus David
00:58 It is the podcast for small to medium business entrepreneurs looking for help in their marketing and advertising
01:20 Greetings from Paradise North in the UK
01:26 And greetings from Paradise South, in Hobart, Tasmania in Australia
01:33 A small chat about the weather as winter is coming to London and summer to Hobart
01:48 But aside from the change of season, it will soon be the Cricket season
03:07 Timing is a major facet of marketing
03:25 We’re sure that a good business owner has at least one or two business books sitting on their shelf
03:47 One that we are discussing is more than a decade old, The 22 Immutable Laws of Marketing by Al Ries and Jack Trout
04:07 We will be chatting about these laws but the chance of getting all 22 is definitely next to zero
04:30 It is important that even small business people understand these
05:17 You should go and take your brain around these 22 laws
06:09 Law #1 – Law of leadership
06:11 It is better to be the first in the market than to have a better product
06:20 There are always exception to the rule e.g. Apple
06:27 Apple weren’t the first in their line of devices but they are the best
06:44 If you’re building a website, don’t wait until that website is perfect
06:59 It’s better to get in the market and get your message out there than let your competitors get ahead of you
07:15 Once you started justifying things, you become a “me too” in your industry
07:50 Be the first to frame the market
07:55 But there’s also caveat to this
08:22 Your idea or product should still be what the people want
09:04 But don’t just put products out there and you need to do your research
09:40 Law # 2- Law of Category
09:43 The first person to fly from America to the continent (France) is Charles Lindbergh but probably don’t remember who the 2nd person was
10:09 The law states that you may not be the first in that category, then redefine the category
10:35 Charles Lindbergh wasn’t actually the first person to cross the Atlantic but the first to do it alone
11:05 Create that new category in people’s brains
11:17 In terms of colas, will you try to beat Coca-cola or rather create a new category like cherry colas?
11:40 Cherry colas, for example, is dominated by Dr. Pepper
11:54 This is the same case in the liquor department
11:57 The wine industry was used to be dominated by the European soil but now has been dominated by the new world grows
12:52 The French introduced that only they can produce authentic Champagne or Bordeaux
13:09 So in Australia, it can only be a sparkling wine
13:25 Thus, there has been a category of grapes producing these wine thus the French can’t say they have those kind too
13:38 So for our French listeners, we apologize in behalf of our Australian co-host
13:52 But it is just true that Australia produce fine wine
14:02 Law # 3 – Law of Mind
14:09 It is important to be the first in the mind of the consumer
14:17 For example, if someone thinks of fast food, McDonald’s tries to be top of mind
14:35 If they managed to put that in people’s mind, the other fast food shops won’t get a looking
14:56 There are certain words that they focus on to be top of mind
15:16 Law # 6 – Law of Exclusivity
15:26 Burger King, or Hungry Jack’s in Australia tried to own the word fast in terms of fast food but McDonald’s already got that in people’s brains
15:37 In courier deliveries, FedEx tried to take over the word worldwide from DHL but couldn’t do it
16:13 You have to define what it is that you’re selling to your customers
16:23 try and pick up the word that can become the word that is associated with your product
16:27 You can do it in a local market and not just in a global scale
17:02 Offer something that you can actually fulfill
17:17 And it has to be a word that means to your clients and can’t just invent a word and say “Zafinsnuffunberger” cause it doesn’t mean anything
18:10 Law # 7 – Law of the ladder
18:14 you might not be the first or leader in the market, but you’re happy if your no. 18:35 It can be expensive to hold the number 1 place
18:49 For example, Avis car rental used the line “We try harder”
19:00 They used to say in their ad that they are the no.2 choice and you should rent your car from us because we try harder and that was a successful campaign
19:23 Law # 9 – Law of opposites
19:31 If you’re targeting to be a 2nd place, your plan is determined by the one on top
19:42 For example, Pepsi is the no. 2 cola and the first is Coca-Cola
19:54 When Michael Jackson was doing the publicity for Pepsi, the marketing line was “ The choice for the new generation”
20:01 Since they cannot convert the Coca-cola drinkers, so they will go on the segment of the market that they can get
20:21 generally, the old market diminishes
20:48 The Pepsi Challenge, where people will est the colas and judge which they like better, was actually a good campaign
21:32 There was a rumor though that John Sculley, then president of Pepsi for a few years, failed the challenge and chose Coke
22:20 Don’t try to beat Coca-cola as it builds it’s own game, it’s own rules
23:48 This is also the same in cigarettes where they have different categories and target different market
24:23 Law # 10 – law of Division
24:39 every category will divide and will become multiple categories as the market develops
24:45 Computers started as main frames for companies, then there’s desktop, laptop, notebooks, and now tablets
25:18 You create second category so that you can sell more things
25:20 Apple joined the bandwagon of phablets and released iPhone 6 plus
26:07 The same with cars having different lines like race cars, sports car or luxury cars
26:13 Toyota has a segment for luxury cars which is Lexus
26:51 We hate to say this, but we need to wrap it up and come back next week with the remainders of the laws
27:06 In the mean time, you might want to go out and find the book, The 22 Immutable Laws of Marketing by Al Ries and Jack Trout
27:36 Get it anyhow you can as it is a must-listen to for people in business
27:50 Find us and like our page on Facebook, www.facebook.com/davidversusdavid
27:55 Check out more episodes at www.davidversusdavid.com
28:03 Leave us glowing 5-stars ratings in iTunes
28:16 You can also visit our personal sites. David Counsell’s www.infernopromotions.com.au and David Pritchards’ www.d10solutions.com
28:26 Goodbyes!