*The 22 Immutable Laws of Marketing by Al Ries and Jack Trout

intro:

The 22 Immutable Laws of Marketing highlights the foundations of marketing and how to avoid violating these laws. Airplane innovators do not build airplanes without considering the laws of physics. However, many modern marketers attempt to market a fantastic idea without a foundation of marketing laws. The 22 Immutable Laws of Marketing aims to solve this problem by offering these fundamental laws. Hello every one!, this is {speaker name} . I am an Entrepreneur, public speaker and a passionate book lover.

The 22 Immutable Laws Of Marketing is an absolute marketing classic, outlining 22 rules by which companies function, and, depending on how much you adhere to them, will determine the success or failure of your products and ultimately, your company.

The 22 Immutable Laws Of Marketing was meant as a guideline for companies to understand how they can make their products successful internationally and not just locally. Sure, you could try to go after Coca-Cola, but chances are you won’t be able to accomplish much. This book will help you focus your marketing efforts and not waste precious energy, money and time on battles you can’t win.

Here are 3 lessons from The 22 Immutable Laws of Marketing:

  1. If you can’t be first, be first in peoples’ heads.
  2. Create your own category to avoid competition.
  3. Remember that each product comes with an opportunity cost.

I hope you’re in a marketing mood, because we’re about to talk about some real game-changers!.So, join me know in the class and Discuss other aspects and principles given in the book thanks

Chapter 1: The law of expansion

The motor vehicle company Chevrolet used to be a dominating company but has declined significantly over the years.   Chevrolet is known for its inexpensive, large, and small cars or trucks. While Ford is the leading car company in America, it’s also suffering from the same problem as Chevrolet: the expanding line weakens the brand name and overall company.  If we compare the two companies, we will find that Chevrolet put out 10 different lines of cars last year while Ford only put out eight.
 
So how and why does Chevrolet market all these cars? Simple, Chevrolet intends to outsell Ford. However, we know that in the long run, Ford will come out on top.  This is because increasing expansion lines increases sales only in the short term, but having a narrow line of a few products helps to build your company in the long term.

  Companies use all those line expansions and mega-branding approaches to milk their products, but in time these products get worn out and lose their power.Here is another example: American Express used to be the premier credit card with actual membership privileges. Previously, American Express dominated the public with a market share of 27 percent. However, they started offering 12 to 15 cards a year, which caused their market share to drop to 18 percent.
 
A similar situation happened with the jeans company, Levi. They offered every cut and style of jeans, which was good in the short term but didn’t help long-term sales.We see these examples all around us, but these companies don’t understand the basics of branding. A consumer’s mind keeps one image and one significant name to each brand, so expansion causes markets to develop complicated names to distinguish their products.Marketers have to understand that sales don’t come from the power of the product alone but also the weakness of the competition.

Chapter 2: The law of contraction

Coffee shops can be found in every corner, selling breakfast, lunch, dinner, and everything in between. However, a man named Howard Shultz did something unexpected when he opened a coffee shop specializing in guess what …. coffee. Today, his coffee shop has grown into a worldwide chain known as Starbucks. A similar thing happened when Fred DeLuca opened a fast food restaurant that only specialized in submarine sandwiches, and he chose a brilliant name that could not be forgotten: ‘Subway’.By narrowing the focus of your company, you can build a strong brand with a known fingerprint. Today, Subway is the eighth-largest fast-food chain in America.
 
Here is another example: Children’s Supermarket was a small store that sold children’s furniture and toys, but at some point, the owner decided that he needed to expand. So, he did away with the furniture department and added more toys in a wider range, renaming the company “Toys ‘R’ Us”.  This change gave the company a niche in the market, selling 20 percent of all toys sold in America.  When you consider every successful company, they all have a special thing they sell: Home Depot for furniture; Gap for comfortable clothes, etc.
 
The five steps for the best branding and contracting are:
1.    Narrow the focus 
2.    Stock in depth
3.    Buy cheap 
4.    Sell cheap 
5.    Dominate the category

Perhaps you are wondering why many companies want to expand instead of contract? The answer is that most people look at what rich people are doing and try to copy them. Instead, you should consider what their actions were before they got rich.

Chapter 3: The law of Publicity

A big misconception that often happens with new marketers is that advertising is how a brand is born. This may be true with big companies that are already well-established, but it is not true with new companies. For example,  for the first ten years of Starbucks’ life, they only spend about 10 million dollars on advertising – consider that this is a business that brings in about 2.6 billion in profits annually. The same goes for Wal-Mart, one of the biggest stores in America-  they hardly spend money on advertising. So what is the key for a brand to be born? The answer is good publicity, especially in this new age of technology and social media. The best way to get good publicity is by being a new category like :

●    Heineken, the first imported beer 
●    Xerox, the first plain paper copier 
●    KFC, the first fried chicken fast food
 
And the list goes on and on. The media doesn’t care about what’s good; they care about what’s new.If publicity is so important, you might be asking yourself why advertising agents own all public agencies? The answer is because publicity is a new rising art, just like faxes: at first, they were unknown, but slowly faxes became the most used method of communication in business.However,  what works today is publicity, not advertising. The authors share a story of when they were asked to market for Lotus Development Corp.They promoted it as “The first groupware product, “ and the idea of groupware caught on fire because it was a new, fresh category. Their idea succeeded not because of advertising but because of publicity and being the first of its category.

Chapter 4: The Law Of Advertising

Publicity may be the way brands are born, but they have to turn to advertise to maintain their leadership. While advertising may cost a lot of money and may not even pay for itself, it is an important way to protect your business from the competition.  The best way to advertise your product is to say that you are the best because that’s what people want and that’s what people buy.Xerox first rose to the light due to publicity because it was the first plain paper copier, but people stopped talking about it after a while because there was nothing new. So, how does a company protect its share after the power of publicity wears out? Advertising.  Xerox started advertising their brand as the best copier, and because of that, any competition has to work harder to compete against them.The thing about advertising is that it’s very expensive, so only the leading companies can pay for it.

Chapter 5: The Law of the Word

The most powerful brands are those that have one word that resonates with the consumer. If you ask an automobile buyer what the word “prestige” reminds them of, the answer would be Mercedes-Benz. If you ask about “safety,” then Volvo would probably win.But the common mistake that many companies make is that they get away from these categories they created themselves. Now, Volvo has started making sports cars.Kleenex is probably the best brand ever made because when people talk about tissues, they use the word Kleenex in general. This is an example of a brand that has succeeded.

But, Kleenex stuck to their brand as they were the first pocket-sized tissues, and they didn’t go on to toilet paper or kitchen paper. They remained in their category.Fed-Ex has a similar approach: they were known for overnight deliveries, but when they started to deliver more widely, they stayed with their category even as they expanded their focus.

Chapter 6: The Law of Credentials

What makes a brand stand out is its special features. When a consumer buys your product, they want the absolute best. But will they take your word for it? Probably not, so your item must be unique, different, and have credentials to prove it is the best.

Chapter 7: The Law Of Quality

Quality is relative. How do you know that Coca-Cola tastes better than Pepsi or BMW has fewer problems than a Volvo? Because they are leading brands, and your brain tricks you by telling you they must be good for a reason. Quality is important if you want to succeed, but we have to define what quality we are talking about. It’s all about how you do it, your name, your style, and how unique you are. You have to narrow your focus to understanding how to be the best.

Chapter 8: The Law of the Category

Remember, focusing on one category for your brand is the best approach.. Before Johnson and Johnson, there was no other baby shampoo company, and before Volkswagen, there were no cheap, affordable cars. If you become your category, then you limit competition and will be at the top.  A little competition is vital because it grabs the consumer’s attention; without the Cola/Pepsi war, no one will pay attention to the cola market, would they?

Chapter 9: The Law of the Name

In the short run, a brand needs a sturdy idea and a unique category. But, in the long run, what keeps a brand alive is its name. Xerox was the first plain paper copier, which was initially a unique idea, but now there are hundreds of plain paper copiers. Still, Xerox is the best, as it was the first, and its name will always ring a bell with consumers.

Generic names will always fade away; names like Paper Master will disappear within the crowd.The difference between Japanese and American companies is that the American companies are more focused on their category, while the Japanese companies are scattered. That difference may not appear to the public, but it is apparent in sales:American companies make about 2.6 percent of sales, while  Japanese companies make only about 0.7 percent.

Chapter 10: The Law of Extensions

Expanding your brand can be disastrous. If you are offering a new line, you must ensure it won’t contradict the old one. For example, light ketchup makes the consumer think that something is wrong with normal ketchup. Crystal Pepsi makes consumers ask, “what is the problem with ordinary Pepsi?”Consumers are not stupid; you have to ensure that you are not pushing them away from your original brand. Before you expand your brand, ask yourself how this new product will affect the market?
 
Studies show that there are 26,000 products on supermarkets shelves and the number is increasing every day. Of these products,  only 16,000 are bought regularly, while 5,000 or more are left collecting dust.So you have to be smart and ask yourself what is special about your product? There were only 4 brands of beer in the past, while now there are about 15 brands of beers: the number of consumers did not increase; it only crowded the market. 

Chapter 11: The Law of Fellowship

No one brand can control all the market shares, and that’s a lesson a lot of brands refuse to learn. Competition is always healthy, and the best example of that is Cola/Pepsi: their competition grabs people’s attention. But by competition, we mean one or two rivals, not 40.

The wine industry in America is an example of too much competition; there are about 14,000 different brands, so customers have no way to choose their favourite. On the other hand, Absolut Vodka and Jack Daniels’ Whiskey have made an international market for themselves. The best and top-leading brands can only have 50 percent of the market share, so you will have to open more than one individual brand if you want more.

Chapter 12: The Law of the Generic

Generic names might have worked in the past, but these companies only worked because they were the first. To get the best name, you have to take the generic name and twist it, like Staples: where can you buy the best office supplies (and, yes, your staples) from? Staples.But some brands get lucky, like Vaseline, they added the intensive care part as a generic name, not as a descriptive name.

Chapter 13: The Law of the Company

The consumer only cares about the brand, not the company. When you name the brand after the company, the name will dominate, like Coca-Cola is the company that produces Coca-Cola the drink, and the list goes on. Consumers don’t care about the company  they are using; they just want the brand. Who does care about the company? The managers.Do you care what publisher published the book you are reading? Probably not.That’s the manager’s job to innovate their brand to attract consumers.

Chapter 14: The Law of Sub-brands

After a while, a brand may want to expand to innovate from itself, and they can do that by sub-branding. Holiday Inn is one of the leading hotels/motels in the US. Still, when they wanted to expand themselves, they came up with a prestigious, expensive hotel: Holiday Inn Crowne Plaza. However, what happened is that people thought it was a little expensive for a Holiday Inn,  so the company disconnected the two, and so it went by Crowne Plaza Hotel only. That’s the basic idea of sub-branding,  sometimes you will want to expand, but your two brands will contradict each other, so you will have to separate them

Chapter 15: The Law Of Siblings

Not every company can do the whole family of brands approach. It is tricky because it can be done well, or it could dilute the first brand. Wrigely Jr. Company dominates the chewing gum industry with billions of dollars but not with one brand only. Here are the different chewing gums offered by Wrigely brand:

●    Big Red 
●    Doublemint
●    Extra 
●    Freedent 
●    Juicy Fruit 
●    Spearmint 
●    Winterfresh
 
And the Times Newspaper has a similar approach. To be a big family of a brand, you need the right formula:
1.    Focus on a common product area
2.    Select a single attribute to segment 
3.    Set up rigid distinctions among your brands 
4.    Create different, not similar brand names 
5.    Launch the new sibling when you can create a new category 
6.    Keep control of the sibling family at the highest level
 
Launching a new sibling to your brand is not for everyone; it needs strategy and hard work.

Chapter 16: The Law of Shape

Logos come in all shapes and sizes, but the optimal shape is horizontal. Logos are essential as they are how you represent yourself as a brand. American marketers have excelled at logos with all their designs, but once in a while, you will find a simple logo that will resonate with you like the three-pointed stars of Mercedes-Benz.

Chapter 17: The Law of Colour

Choosing the color of your brand is a very hard decision. You have to choose from a handful of colors like red, yellow, blue, orange, and green, and your color choice must be different to differentiate you from your competition.  When the authors were asked to name and brand a farm tractors company in Brazil, they chose the name Maxion (meaning power), but when choosing colors, they looked at the competition’s colors. One was green while the other was red, so they chose blue completely from the other two. Pepsi made a huge mistake while choosing their color as they picked blue, which is a laid-back color, and their competition Coca-Cola had a red color which is more vibrant and eye-catching.

Chapter 18: The Law of Borders

Many brands believe that they will never be able to grow in their native country, so they will have to grow and expand internationally. But, as the previous chapters have shown more than once, expansion is not the answer for growth.  Grow in your country first, and then go global. By focusing on one category only and being the first, you will succeed.Heineken Brewery is one of the biggest beer companies worldwide; while it originated in the Netherlands, a very small country, it used its strengths to become a top-brand name in beer.

Chapter 19: The Law of consistency

By building a brand, you build the character and future of the company. From time to time, trends will change, which may negatively affect your brand, but resist the urge to follow the trend, as that would be a wrong move. When a kid grows up, he changes his preferences from cola to beer as a sign of maturity, so just imagine if Coca-Cola came out with a cola beer line.

That happened with Jack Daniels Whiskey: they came out with Jack Daniels beer, but they had to stop because no one was buying it. Volvo also fell into that trap as they are always known for their safe cars, and someone came up with the idea of selling a Volvo sports car that diluted the Volvo safety brand and hurt the company a lot. Remain consistent and don’t fall into the trap of following trends.

Chapter 20:  The Law of Change

Now and then, some company thinks that it’s time to change their brand. Kentucky Fried Chicken tried getting away from the ‘whole fried chicken thing’ and changed their name to KFC and started advertising healthier options, but customers still went for the fried chicken. This shows that it doesn’t matter what you think your brand is; what matters is what the customer thinks your brand is. Once you identify this, continue with it and don’t try to change your brand.

Chapter 21:  The Law Of Morality

Like everything in life, even brands must one day die. Many companies don’t understand this, and they spend millions of dollars trying to bring back an absolutely useless brand.Instead, they should build a new brand. The rise of personal computers resulted in Dell, and online streaming services made us forget about Blockbuster Video.

Chapter 22: The Law of Singularity

A brand’s singularity is its strength.. Atari was a leading video game brand,  but it wanted to be a computer and lost its life. On the other hand,  brands as Heineken and Rolex are known for their craft and singularity.

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