22 Immutable Laws of Marketing | A Refresh for 2023

It has been some time since I wanted to publish a summary of the book 22 Laws of Marketing by Al Ries and Jack Trout. This book taught me some key concepts of brand building and understanding how brands can make a mark in the minds of the customers. I would keep the concepts that are presented in the book at par with the Marketing Textbook by Philip Kotler that all management students worship.

But the one thing stopping me from writing the review was that the examples shared in the book were too outdated for the time we live in. The first edition came out in the year 1994 and by then a lot has changed. So presenting the 22 Laws of Marketing with a small twist where I try to capture more relatable brands that follow these laws for the next 22 weeks (1 law every week). Obviously, just like any rule based theory these laws have caveats and examples defying the law, but at a majority of the brands will be following these laws.

So, hoping to get into a good discussion with anyone who can help with more examples of brands that follow a particular law or even defy one!

#1 Law of Leadership

It is better to be the first in a category than to be the best in a category once it is established. Marketing is a battle of perceptions rather than products. Acquiring a customer’s mind (the most valuable asset in this day and age where people are easily distracted) is the most important strategy in this battle. It is easier to be the first and capture the “Share of Mind” than convincing the customer that the product is better. Being first to the market has an added advantage of a brand becoming a verb (think Google, Uber, Xerox).

This does not mean that people coming in second have not been able to establish themselves but they will have to spend more to acquire a customer from a competitor.

Coming to the brand that follows this law, what comes to your mind when I say Milk?

If you are an Indian, you would have pictured the following:

The brand is none other than Amul. Even though there have been multiple dairy associations across India and even more D2C start-ups entering this play now, we all still relate to this brand and its mascot. The brand has given witty and well-timed advertisements based on global news day on day and year on year since the inception of the “Amul Girl”. It has created a perception of being the leader in milk production and distribution given its association with The White Revolution led by Dr. Kurien in 1970s.

Another brand that follows the law of leadership is the Post-It Notes. 3M was the first company that introduced this product in the market in 1977. The Post-It note is a trademark of 3M but it is used as a verb for whichever sticky note that we use these days. Not only post-it, but 3M also gave us Scotch Masking Tape in 1925 and from there on “Scotch Tape” has become a household name.

#2 Law of the Category

This law simply states that if you are not first in any category then you need to set up a new category where you can claim to be the first in the category. In short, when you create something for the first time, the intrigue that it generates is sufficient for capturing the mind space of the customer. Now instead of the brand you are talking and building the category itself. There is basically no competition that you have!

The first motorised two wheeler was a moped called Luna launched by the Kinetic group in 1972. With a total of 21 Cr. registered two wheelers in India in the year 2022, and more than 12 brands contributing to this staggering number, it is difficult to get a share of the customer’s mind. But Ather did it. Instead of being any other two-wheeler brand, it became India’s first “Electric” two wheeler brand. With Ather crossing the 1 lac production mark in January this year it says a lot on how the brand has captured the mind space of the customer as the first electric two wheeler brand.

Internationally, Tesla is well known for its positioning as the first EV car company. I am sure there are many more examples. A lot of the upcoming D2C startups are positioning themselves in this manner. A recent example is that of Sugar Cosmetics, there are a lot of beauty care brands, but Sugar has positioned itself as a brand for the bold and independent women.

#3 Law of the Mind

If a customer thinks about a category and if you are the first brand that pops up in his mind, you have won the battle of positioning. This law supersedes the law of leadership. Being first in the mind of the customer is more important than being first in the marketplace. Marketing is more about perception than product, period. Once a mind is made up it is always difficult to change it and changing a mind or user behavior is the most expensive marketing activity. It takes a lot of resources - time and money to make that happen.

A lot of examples can be shared for this law:

Search - Google

Photocopy - Xerox

Safety and Reliability in Automobiles - Volvo

Trust - Tata Group

Performance in Sports - Nike

Premium Phones - Apple

Luxury Watches - Rolex

As you can see, all of these brands capture the mind space in their respective categories. And the larger communication and positioning of the brand is done in line with these perceptions.

#4 Law of Perception

The authors keep repeating that marketing is all a battle of perceptions. This law solidifies this further by saying that there is no true reality but only a perceived truth. Whatever the crowd perceives becomes the truth and everything else is an illusion. Marketing should not be based on the product but it should be about how one can change and manage the perception.

When we talk about perceptions, let us take an example of “on-time flights”. Within India, only one brand would have popped up in your mind if you are a frequent flier and have borne the brunt of airlines. Indigo has taken the effort to cement this perception in the minds of the customers. They do not need to market themselves on this fact anymore because the perception has already been created!

Another such example is that of Redbull. By associating with adventure sports and high-adrenaline events, Redbull has created a perception of giving that boost to people.

#5 & #6 Law of Focus and Exclusivity

Since these two laws are very close to each other, it makes more sense to discuss them together.

The law of focus states that, as a marketer your target should be owning a word in the mind of the consumer. The word need not be complex or innovative. It should be simple and one that can be easily recalled. In fact, the author suggests that words taken out of the dictionary are the best. The leader of a category would own the word for that category. So if you are not the leader, you need to search for a niche (similar to law of the category) and find a word for yourself. Owning this word helps capture the customer’s attention during their buying journey. While establishing a connect, the brand needs to ensure that that word is available in that category. Just like change is constant, a brand cannot own a word for long. With change in market scenarios, brands need to change their word associations.

The law of exclusivity states that, no two companies can own the same word in the customers mind. Just like how no two brands can claim the same category as a leader, no two brands can get the same word. Chasing behind too many words and trying to establish your brand with every word can be disastrous. A better strategy would be to claim a word, and then defend it ferociously in the market. It would be foolish for a brand to think that by spending significant amount of money they can claim a word that the competitor has established for themselves.

Building on the airline industry example from before, in the aviation category Indigo has been able to capture the “low cost” word in the customer’s mind whereas the “premium” word has been captured by Vistara. It will be very difficult for any other airline to make a claim on any of these words that have been captured by the brands.

In the cab aggregator space, BluSmart has captured the “Electric Vehicles” word recently and are going strong on it. Given the business model, they also have another word “no cancellation” that they are using to capture the focus. Uber and Ola might still be able to make the second word redundant if they change their business model but capturing the first word is next to impossible given the scale of Blu’s business.

#7 Law of the Ladder

Not all brands can be at the top all the time. In any category, there is a hierarchy of brands that occupy the first, second, third, and so on positions. A brand needs to decide its marketing strategy basis the position it holds on this ladder. The human mind is full of biases and hence if the marketing strategy is not in line with the position on the ladder it might happen that the customer rejects that association altogether.

High frequency and high involvement purchases would have more rungs on the ladder as compared to a low frequency category. The position of the brand on a ladder is relational to the market share that the brand holds in that category. Going back to the second law of creating a category for oneself, it might happen that the market size in a niche category becomes restrictive for growth. Hence, it is better to be on the No. 2 or No. 3 in the larger ladder than being No. 1 on the niche ladder. Only thing that the brand needs to keep in mind is that the marketing has to be done in line with the positioning of the brand in the mind of the customer.

A simple example of this law is McDonalds and Burger King. These two brands have been known at taking jibes at each other when it comes to advertising, but at the same time it is a fact that Burger King is the second rung in the fast-food category ladder. Burger King has to accept that it is second and ensure that their strategy is in line with where their customers place them. To see some of the interesting ads where Burger King takes a jibe at McD continue to the video below!

#8 Law of Duality

What is common between Uber Eats, Google+, Vodafone Idea and Hike Messenger? All of them have failed due to the contribution of what is called the Law of Duality.

This law states that in the end game, each category ladder becomes a competition between two brands. As a category matures, the competition is between the old and established brand and a new challenger brand. Rest of the brands’ share becomes miniscule and they eventually fade out unless they carve out a niche category for themselves.

Examples are numerous when it comes to this law. In the food delivery business, we do not remember the names of erstwhile challengers like Uber Eats and Amazon Food. Zomato and Swiggy are the front-runners in the game today. Similarly, we have Jio and Airtel in the telecommunications category. Pepsi and Coca Cola in the beverages category. Boeing and Airbus in the aviation industry.

On a side note, do you think Indian politics will also succumb to the law of duality? ??

Do share your thoughts on which brands do you think have failed/managed to survive after going through the law of duality in their respective categories!

#9 Law of the Opposite

The strategy of the second entrant is determined by the leader. Any new entrant in the category has to prove its legitimacy by differentiating themselves else the leader will prove them to be illegitimate. Hence, the second entrant should leverage the weakness of the leader into its strength. Over time any brand accrues some negative damage, at that time if the second entrant can position itself as the opposite they can lure that customer away from the leader. To position yourself as the opposite and capture the customers is a daring endeavour. The brand cannot play on the back foot while going for this strategy.

Two examples of brands that were able to successfully play out this strategy are FedEx and Paper Boat.

In the 1970s, when FedEx was first launched, the dominant player in the package delivery market was UPS. FedEx positioned itself as the opposite of UPS, offering faster and more reliable delivery services. FedEx's marketing campaign with the slogan "When it absolutely, positively has to be there overnight" emphasized its speed and reliability. The campaign was a success, and FedEx gained market share as a result.

Another example is Paper Boat, a beverage company that markets traditional Indian drinks such as aam panna and jaljeera. Paper Boat differentiates itself from more established beverage brands such as Coca-Cola and Pepsi by positioning itself as the opposite of western-style drinks. Paper Boat emphasizes the nostalgia and authenticity of traditional Indian drinks, and markets itself as a healthier and more wholesome alternative to carbonated soft drinks.

#10 Law of Division

Over time, it is common for categories to divide into two or more distinct segments, each of which could be considered a new category. Although these new categories may have emerged from an existing category, they often have their own unique characteristics. This means that brands that were once successful in the original category may struggle to compete in the new, segmented categories without a clear strategy for differentiation. One approach that companies may take to compete in these new categories is to create a sub-brand or a completely new brand altogether that is tailored to the specific needs and preferences of the target market. It is worth noting that new category creation is often driven by new entrants to the market who are able to identify and capitalize on emerging trends and unmet consumer needs.

In the automotive industry, new categories like electric, hybrid, and autonomous vehicles have emerged. This has forced traditional car manufacturers to create sub-brands or completely new brands to compete. For example, General Motors created Chevrolet Volt for the hybrid segment and Tesla is the leader in electric vehicles.

Similarly, the beauty industry has also seen the emergence of new categories like clean, vegan, and gender-neutral beauty products. Brands that were once successful in traditional beauty have had to adapt their strategies to cater to these new segments. L'Oreal launched Seed Phytonutrients to cater to the growing demand for clean and sustainable beauty products.

Titan is a brand that has used the Law of Division to its advantage. It has segmented its market based on customer needs and introduced sub-brands like Titan Raga, Titan Edge and Fastrack catering to different segments.

In conclusion, the emergence of new categories is a natural evolution of any industry, and brands that want to stay competitive must be willing to adapt and innovate to meet the changing needs and preferences of their target markets. Whether it's through the creation of sub-brands or the launch of entirely new brands, companies must be proactive in their approach to new category creation if they want to remain relevant and successful in the long run.

#11 Law of Perspective

Marketing effects take place over an extended period of time. More importantly, the impact of marketing in the short term might not be the right parameter of judging the impact of the same marketing in the long term.

#12 Law of Line Extension

Line extension means taking an existing brand name and adding a new product it.

The Law of Line Extension states that there is a limit to the number of products or services that a brand can successfully extend its brand name to. When a brand extends beyond its core category, it risks diluting its brand image and confusing its customers. The key is to maintain a balance between staying true to the core brand while extending into new categories that make sense for the brand. After all, if there is one theme that is common across all these laws is that marketing is a game of perception. When you see Harley Davidson, automatically the image of a hefty biker comes to your mind. Having said that let us see, what happened when Harley Davidson extended their product line.

Harley-Davidson, known for its iconic motorcycles, attempted to extend its brand into the perfume market in 1994. The venture was a complete failure and the company was forced to discontinue the product line. The key idea is that one should not alienate their existing customers when going for a line extension.

On the other hand, there are successful examples of line extension as well. Apple, known for its computers and tech products, successfully extended its brand into the music industry with the launch of the iPod in 2001. The brand maintained its core values of simplicity and innovation while entering a new category that made sense for the brand. Another example is Nike, known for its athletic footwear and apparel, has successfully extended its brand into the technology space with the launch of Nike+ in 2006. The brand leveraged its existing customer base and brand image to create a new offering that was well-received by its customers.

In conclusion, while line extension can be a successful strategy for brands to enter new categories and grow their business, it is important to maintain a balance between staying true to the core brand while extending into new categories that make sense for the brand. Brands that fail to strike this balance risk diluting their brand image and confusing their customers. Brand extension gives short-term wins but if one wants to win in the long-term it is important to narrow down the focus and stay true to the brand identity and build the right image in the mind of the customers.

#13 Law of Sacrifice

The law of sacrifice states that in order to succeed you need to let something go. To ensure that you are there in the prospect’s mind you need to narrow the focus.

There are three things to sacrifice:

• Product Line: Choose your focus products and double-down on them.
• Target Market: Choose your TG. Focus on your core customer and given them the best experience to ensure they keep returning to your brand.
• Constant Change: Too much transitioning in teams or product lines is always harmful for the brand positioning.

Some of the brands that have followed the Law of Sacrifice and succeeded include:

1. Southwest Airlines: Southwest Airlines has built its brand around the idea of low fares and no frills. The company has sacrificed many of the amenities that other airlines offer, such as assigned seats and in-flight meals, in order to keep its costs low. This has allowed Southwest to offer some of the lowest fares in the industry, and has helped the company to become one of the most successful airlines in the world.
2. Domino's Pizza: Domino's Pizza is a great example of a company that has succeeded by sacrificing its product line. In the early 2000s, Domino's was struggling to compete with other pizza chains such as Pizza Hut and Papa John's. The company realized that its pizza was not very good, and decided to completely revamp its recipe. This meant sacrificing its existing product line, but the result was a vastly improved product that helped the company to regain its footing in the market.
3. Volvo: Volvo, the Swedish automotive brand, has followed the Law of Sacrifice by sacrificing flashy design and luxurious features in favor of safety. The brand has consistently positioned itself as a leader in automotive safety, developing innovative safety technologies and features in their vehicles. By making safety their primary focus, Volvo has attracted a loyal customer base that values the brand's commitment to protecting passengers.

The constantly changing world of brands calls for niche players rather than diversified generalists. At the end of the day, let us not forget - Strategy is not just about opening doors and choosing, but also knowing which ones to close!

#14 Law of Attributes

We all have heard the Newton’s third law of motion: For every action, there is an equal and opposite reaction. Similarly there is a law in marketing: for every attribute that a brand might own there is an effective and opposite attribute that competition might own.

Often, companies try to engage in copy-cat strategies and emulate the leader by using the same attributes as them. This might not be a great strategy. If the attribute fails, you too shall fail. As a brand manager, one should find the best attribute that will allow one to play against the leader. The brand owner should try to see which attribute is more important to the customer because not all attributes own the same mind space in the customer’s mind.

In today’s world, “convenience” as an attribute was owned by Uber and Ola. New age car rental companies like The Smart Taxi and Blu are coming up with completely new attributes for the customer. They have positioned themselves as “safe and reliable” and “energy saving and no cancellation” respectively. These might be a combination of attributes but people have started preferring these over the age-old cab services.

Think McD vs Burger King. One owns “iconic” whereas the other owns “big”. In fact in a recent tiff off between both these brands, they asked AI to see who comes on top. Head to the image to find out what happened next!

#15 Law of Candor

The law states that to enter a customer’s mind, a brand might have to embrace a negative first to create a positive image inside the prospect’s mind. No proof is required to give a negative statement. It will be accepted much more easily than a positive statement because who is a fool enough to accept negative attributes about oneself, right?

That is a space where brands play. Admitting a problem is something very few companies do. Hence, when a company starts a message by admitting a problem, people tend to almost instinctively open their minds. It creates a differentiation of sorts in the market.

The Law of Candor must be used carefully and with great skill. Your negative must be widely perceived as a negative. It has to trigger an instant agreement with your prospect’s mind. Next, you have to shift quickly to the positive. The purpose of candor isn’t to apologize. It is to set up a benefit that will convince your prospect.

For this law, I will have to go with the example mentioned in the book itself: Listerine - the taste you hate twice a day!

#16 Law of Singularity

Brands must differentiate themselves and stand out to capture the market's attention and build a unique identity that resonates with consumers. For each situation, there is only one strategy which will result into maximum results. There are no two ways about it.

#17 Law of Predictability

Consumer and competitor behavior can be unpredictable, so marketers need to be adaptable and open to shifts in trends and preferences to stay relevant. Failure to predict competition movement, might result in marketing failure.

In the short term you would define the “word” that defines your brand. In the long-term you need to create a story or direction building on that word.

The core idea is that since no one can predict the future, as a marketer you need to stay on top of trends. Ensuring you are always ahead of the pack helps in getting the much talked about “customers’ mind share” for your brand. This can be achieved through building a flexible and agile marketing team.

#18 Law of Success

As a brand succeeds, competitors will emerge to challenge its dominance, making continuous innovation and vigilance imperative for sustained success.

Once you are successful, you cannot relax. There will always be someone trying to capture your place in the ladder of your category. Arrogance often leads to failure.

With success also comes the urge to extend your line of products. In that race to have your name on everything, you often tend to spread yourself too thin. This results in lack of sufficient attention to each product line and thus giving the competition an opportunity to move up the ladder in that category.

#19 Law of Failure

Not all brand initiatives will succeed, and recognizing and rectifying failures quickly is crucial to avoiding long-term damage to the brand's reputation.

Failure is to be expected and accepted.

#20 Law of Hype

Excessive hype can lead to disappointment if it's not backed by genuine value, so marketers should focus on delivering real benefits to consumers. Customers are even more aware these days. They can differentiate between fluff and facts. If your marketing is based purely on hype, there is some re-thinking that needs to be done.

#21 Law of Acceleration

Being the first in a new category can lead to long-term market leadership, as the brand becomes synonymous with the category itself.

Learn to differentiate between trends and fads. Trends stay for the long-term, fads die down. You need to ensure you build on trends and not fads.

#22 Law of Resources

Wise allocation of resources is essential to maintaining brand success, ensuring that investments are aligned with the brand's objectives and market needs.

At the end of the day, its all about the ??????