An assignment on

22 Immutable Laws of
Marketing
Violate Them at Your Own Risk!!!

Submitted by:

Gaurav Anand
15PGP148
Section A

The law of Leadership:

You want to be first in a category rather than best in a category. Its better
to be first than it is to be better marketing i People stick with what theyve
got.
People stick with what theyve got. Brands keep leadership by becoming
generic like Xeroz. If youre introducing the first brand in a new category,
select a name that works generically the battle of perception, not products.
Examples
Godrej and Boyce (1897)
ITC (1910)
Tata Steel (1902)
Times of India (1838)
Taj Mahal Palace- Indian Hotels Company (1902)

The law of the Category:

If you cant be first in a category, set up a new category you can be first in.
Promote the category. If you cant be first in a category just create your own
new category. (Examples: multimedia computer, magazine for mature
women, Clothes for tall people, etc.)
When you launch a product, dont think How is this better? but What is
this first in? How do I get people to prefer my brand? Forget the brand, think
of categories. Prospects feel defensive about brands. Everyone wants whats
new; few people want whats better.
Examples
Sensodyne A toothpaste for sensitive teeth and gums
Sunfeast Peanut butter and Nutella A new taste with unique
ingredients
Fogg deo No gas perfumes
Red bull Energy drink
Dettol Antiseptic Soap

The law of the Mind:

Being first in the mind is everything in marketing. Being first in the
marketplace is only good if it allows you to get in the mind first. In mind it is
a battle of perception, not product, than the mind takes precedence over the
marketplace.
Even more important than being first in the marketplace is being first in
the mind. This modifies the law of leadership. Being first in the mind is most
important when possible. Apple got off the ground with very little money.
They had a simple, easy to remember name and a focused, creative ad plan.
Once a mind is made up, it rarely changes. Biggest waste in marketing is
trying to change the mind. If you want to make a big impression on
someone, you cant worm into their mind over time. You have to BLAST your
way into the mind. Reason you blast instead of worm is because people dont
like to change their minds. Once they perceive you one way, thats it.
Examples
TVS (1979) vs Hero Honda (1984)
Shalimar Paints (1902) vs Asian Paints (1942)

 Brittania (1892) vs Parle (1929)

Maaza(1976) vs Frooti (1985)
Goodknight(1984) vs Allout (1990)

The law of Perception:

Perceptions count for more than products. Its not a battle of products. Do
not focus on the facts, the truth and the features. This is all good, but
marketers need to sell the product around what people want and perceive.
Your name, slogan, image, message, etc. all need to factor into this.
Marketers believe that in the long run the best product will win. Its an
illusion, there is no objective reality, and there are no facts. All that exists in
the world are perceptions in the minds of customers. The perception is the
reality.
People cling to the belief that reality is the world outside of the mind and that
the individual is one small speck on a global spaceship. The only reality you

can be sure about is in your own perceptions. If the universe exists, it exists
inside your own mind and the minds of others.
You wont win on the merits of the product. Only by studying how perceptions
are formed in the mind and focusing your marketing programs on those
perceptions can you overcome your incorrect marketing instincts.
Truth is nothing more or less than one experts perception. And who is an
expert? Someone perceived to be an expert in the mind of somebody else.
A perception in the mind is considered universal truth. People, in their own
minds, are never wrong.
Examples
Tide Whiteness
Wheel Power of Lemon (Nimbu ki Shakti)
Peter England The Honest Shirt
Axe Seduction
Colgate Active Salt

The law of Focus:

Owning a word in the prospects mind is the most powerful thing there is in
marketing.

For instance: kleenex with paper tissues, google with search on the
internet, or xerox with copiers.
Own a word in the mind of your prospect. Simpler words or concepts are the
best. If youre not a current leader, you need to reduce the scope of your
operations and focus. Protect your word and continue to brand and focus on
the law of the mind. Focus on a single, powerful word if possible.
If youre NOT the leader, your word needs to be completely available and
focused. Most effective words are simple and benefit oriented. No matter
how complex the product or needs or market is, best to use ONE word that
communicates an important benefit.
Sometimes companies need to change words. Lotus owned spreadsheets but
that became too crowded, then began to focus on groupware. First in that
category and tried really hard to own that word. You cant take someone
elses word, doesnt work. You cant stand for something if you chase after
everything.
Examples
Kamardard Moov
Sardi, Khansi Vicks
Two minutes Maggi
Fati Aediyan Krack cream
Youngistaan - Pepsi

The law of Exclusivity:

Two companies cannot both own the same word in the prospects mind.
Its hard for two competing companies to own the same word in the mind of
the consumer.
You cant change peoples minds once they are made up. When you compete
for the same word, you reinforce your competitors position by making its
concept more important. You put together a list of things people want, but
you cant have all of them. You cant own the idea from someone else by
spending a lot of money.
If the leader owns the most important word, take the second most important.
If the leader ever tries to leave that word, take it then.
Examples
30 minutes Dominos vs Pizza Hut
2 minute noodle Maggi vs Yippie
Sensitive - Sensodyne vs Colgate sensitive
Purity- Bisleri vs T-Series Ganga mineral water
T-Series launched Ganga and tried to promote it as the purest of the form but
it lost its focus when they could not market it properly on the name of purity.
Blue Detergent Surf Excel vs Nirma Blue

The law of the Ladder:

Your strategy depends on where you are on the ladder. On top? One rung
down? Your products location on the ladder determines what strategic
options are available to you.
Trying to get into the mind first is best but there are strategies to use to play
off your competitors if youre behind. Theyre big and were small and
better, Theyre more successful in the market but we try harder,
Sometimes its better to be 3rd on a big ladder than first on a small ladder.
Products you use every day (cigarettes, cola, cereal) have many rungs.
Products you purchase infrequently (ladders, lawn mowers, luggage) have
few rungs. Products that involve personal pride (automobiles, watches,
cameras) have many rungs even though theyre sold infrequently. Products
that are bought infrequently with an unpleasant experience (coffins, life
insurance, plan B) have few rungs.
Theres a relationship between market share and position on ladder. Tend to
have twice the market share of company below you and have half of the one
above you. Seven rungs probably the maximum number of rungs someone
can have in their mind.
Examples
1. Bislery

2. Aquafina
3. Kinley
1. Air India
2. Jet Airways
3. Indigo
1. Colgate
2. Pepsodent
3. CloseUp
1. VIP
2. Samsonite
3. American Tourister
1. Bajaj
2. Cropton Greaves
3. Usha

The law of Duality:

With time, all markets become two-horse races. Gradually over time the
battle becomes a two rung affair.
Usually two front-runners, if one company controls the market share, itll
come close to evening out with the second place.

The customer believes that marketing is a battle of products. Its that

thinking that keeps the two brands on top: if theyre the leaders they must
be the best. We know its a battle of perceptions though.
Examples
Android and IOS
Dettol and Savlon
Duracell and Eveready
Google and Bing
Ariel and Surf Excel Premium segment

The law of the Opposite:

If you are aiming for second place, your strategy is determined by the
market leader.
Wherever the leader is strong, there is an opportunity. Turn the strength into
the weakness. Dont try to be better, be different. There are people that want
to buy from the leader and there are people that absolutely dont want to
buy from the leader. You are the alternative. A second rung company must
go for these people. (Example: Broiled, not fried, etc.)
Discover the essence of the leader and present yourself as the opposite.
There are two types of people, the people that like the leader and that dont,
be the opposite of the leader.
Dont try to be better, try to be different. Coca-Cola is the old, established
product. Using the opposite theory, Pepsi reversed the essence of Coca-Cola
to become the choice of the new generation.
Dont try to copy them, dont try to be them, be the opposite. Time built a
reputation with colorful writing; Newsweek turned that around by writing with
a straightforward style.
Dont just knock on the competition, but pick a weakness even theyd
acknowledge. Scope went with good-tasting because Listerine tasted like
crap.
You cant be timid, when you stop focusing on No. 1; you become vulnerable
to not only the leader but also to the rest of the pack.
Examples
Axe vs Wild Stone
Keo Karpin vs Hair & Care
Fair and Lovely vs Emami Fair and Handsome
Maggi vs Knorr soup noodles
Axe vs Fogg

The law of Division:

With time, a given category will split, and become two, or more categories.
The computer category broke into personal computers, laptops, notebooks,
etc. Cars broke into luxury cars, fast cars, and adventurous cars. Each new
category has its own reason for existence and each segment has its own
leader, which is rarely the leader of the original category.
Categories are dividing, not combining. American Express thinks its selling
financial services, but what customers actually buy are stocks and bank
accounts and customers prefer buying each category from different brands.
For a leader to maintain dominance in different categories is to use different
brands. Using a well-known brand in one category for another category is a
HUGE MISTAKE. Better to be too early than too late.
The market is an ever dividing sea of categories. The automobile industry is
a perfect example. Find or create a new category and stick with it. Do not try
to get into other categories after having success history has shown this is a
mistake.
Examples
Colgate CloseUp-Sensodyne-Colgate Active
Economic times Times of India- India Today- Hindustan Times
Pepsi Maaza- 7Up- Appy-Redbull-Paperboat.

 DD National DD News - DD Metro DD Sports.

Lux - Dettol Dove Cinthol Cool Wild Stone - Medimix

The law of Perspective:

The effects of marketing are not immediate and need time to be
effective.Most of time what works in the short term usually doesnt work in
the long term. Line extension is a major concern. Instant results might give
you trouble years down the road. Focus on your core goals.
The long-term effects are often the exact opposite of the short-term. In the
short term, a sale increases business, but studies show customers get used
to sales and stop buying during normal times, which forces businesses to
make constant sales.
Line extension increases business in the short term but decreases in the
long.
Examples
Koutons ( always discounts)
Kingfisher Airlines (full frills)

 Ruff and Tuff Jeans

Godrej Ganga (wrong positioning polluted Ganga)
Moto Rokr

The law of Line-Extension

The pressure to extend a brand is irresistible, causing what was once a
tightly focused product to be a thinly spread line of many products.
Do not spread yourself too thin and try to be everything for everybody.
Development, marketing budget, support, staff, perception, are all affected.
Be strong somewhere instead of weak everywhere. Less is more. Narrow your
focus.
One day company tightly focuses on a single profitable product, next day it
spreads thin over many products and loses money.

When you try to be all things to people, you end up in trouble.Line extension
means taking the successful brand of one product and putting it on another.
But marketing is a battle of perceptions, not products. The name of that
successful brand becomes the product, and people cant separate the two.
Line-extension loses in long-term, but helps in short-term, like couponing. If
you want to be successful, you need to narrow your focus so you can build a
position in the prospects mind.
For a new brand to succeed, needs to be first in the prospects mind, first in
its category, or position itself as the alternative to the leader.
Examples:

The law of Sacrifice:

In order to get something, you must be willing to give up something else.
Rule 1 Minimize product line (dont be a dept. store without focus)
Rule 2 Limit your target market

Rule 3 Be consistent. Have a brilliant narrow position and stick with it. DO
NOT become all things to all people.
The apparent target of your marketing is not the same as the people who will
actually buy your product. For example, there are not many teenagers, but
LOT of people that want to feel like teenagers. Stop changing your strategy
when you become successful.
Examples
Raymonds
Shahnaz Husain Group
Talwalkars
Ambuja Cements
MDH Masala

The law of Attributes:

For every attribute, there is an opposite effective attribute
Do not emulate the leader. Play off against the leader and offer something
similar but opposite to differentiate. It doesnt even have to be different, just
a needed niche.
Much better to search for an opposite effective word that will help you play
off your leader. Key is OPPOSITE, not similar.
Some attributes are more important than others. You must try to own the
most important attribute. If your competitor owns the most important, take
the second most important. Seize that attribute, dramatize its value, and
increase your share.
Examples
Close Up(freshness) and Colgate (whiteness)
Kingfisher and Indigo
Wheel and Surf Excel
Airtel (Network) and Tata Docomo (plans)
Garnier Shampoo and Head & Shoulder

The law of Candor:

When you admit a negative, the prospect will give you a positive. The
example given is of Avis admitting that they are number 2 in rental cars.
Consider being honest and admit a negative but twist it into a positive. Every
negative statement you make about yourself is taken as true. Positive
statements are looked at dubiously. Marketing searches for the obvious.
Because you cant change a mind once its made up, your marketing efforts
have to be devoted to using ideas and concepts already installed in the
brain. When a company begins a message by stating a problem, the public
open their minds.
Your negative has to be an obvious negative. This has to resonant with the
public. Next, shift focus to its positive aspect. The point of candor isnt to
apologize, but to set up a benefit that will convince your prospect.
Examples
Tata Docomo ( well pay if you find error in bill)
Flipkart Big Billion Day.
Bournville (not so sweet)
Volkswagen Beetle (Size is small and focused on small nuclear family
though it created an expensive product)
Internet Explorer ( Every firm in India uses IE yet web surfing through
other browsers is way better as it is dependable)

The law of Singularity:

For every situation, only one move will produce substantial results.
Focus on several good marketing avenues. Dont dabble a little in everything.
Trying harder does not get you to success. Make a single bold stroke that is
least expected by the competition. Find out where the competitor is
vulnerable.
Many marketing people seem to believe that the best way to grow is to get
into everything. The only thing that works in marketing is the single, bold
stroke. Most often, there is only one place where a competitor is vulnerable.
To find that singular idea, marketing managers have to know whats
happening in the marketplace. They have to be down at the front in the mud
of the battle. Hard to find the single broad stroke if youre in headquarters or
delegating important marketing decisions.
Examples

Nestle Maggi

Volkswagen

Ganga Bathing Soap

Patanjali Putra Jeevak Beej

Shikhar Paan masala

The law of Unpredictability:

Unless you write your competitors plans, you cant predict the future.
Do not assume the future. Get a handle on trends not fads. If something can
go bad, it will always go bad so prepare for it. Try to build an enormous
amount of flexibility into your organization so when things change in your
industry youre ready to deal with it and deal with it quickly. Always keep
innovating.

Most companies live from quarterly report to quarterly report, thats their
focus. Good short-term thinking is coming up with a word that differentiates
your company, focusing on the best available attribute, and picking products
to drop. Then you make a long-term plan to maximize on that word. THATS
NOT A LONG-TERM PLAN, THATS A LONG-TERM DIRECTION.
Although you cant predict the future, you can get a handle on trends, which
is a way to take advantage of change. Market research can be more of
problem than a help. Research does best at measuring the past. New ideas
and concepts are impossible to measure; no one has a frame of reference.
PEOPLE DONT KNOW WHAT THEYLL DO UNTIL THEY FACE AN
ACTUAL DECISION.
EXAMPLE

Nokia: Nokia always held a firm belief that people will always hold on
to the current status quo of using a highly economical phone with basic
features, and was unable to see a rising demand of smart phones in
the country. Unfortunately by the time it realized this thing, it was too
late.
Orkut: It did not predict new emerging style of social networking.
Gold Spot: It was one of the first soft drinks on India to be
manufactured by Indian Company Parle Agro went out of business
when it was unable to handle the severe competition offered by
incoming Coca-Cola.
Kodak: Once it used to be a leading name in the photographic and
printing industry. But Kodak was unable to see a whirlwind of Digital
cameras coming from Sony, Nikon and Cannon. By the time it realized
this thing it was too late.
IBM developed a massive marketing plan to hook up all PCs to its
mainframes but the plan was dead due to developments at Microsoft.

The law of Success:

Success often leads to arrogance, and arrogance to failure. Never stray too
far from your customers.
Lose your ego and be more objective. DO NOT substitute your own
judgement for what the market truly wants. Do not blind yourself by success,
focus. Always think like a prospect thinks and try to base that on trends and
real data. Dont try to read your prospects mind. Do not oppose your view of
the world on the customer. Never lose touch with the front lines.
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

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 mid1990s, offering models with contemporary designs and technology. It failed
to re-invent itself.

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 Microsoft.

Kodak It was clear market leader but lost when during the dawn of
digital age.

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 it.

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 away.

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.

The law of Failure:

Failure is to be expected and accepted, so dont be afraid to take risks.
You must also be ready to cut your losses when confronted with failure,
however. Do not try to fix things. Recognize a failure early and change fast.
Marketing decisions are often made first with the decision makers career in
mind and second with the impact on competition.
Sometimes ideas get rejected not because of its merit but because no one in
top management will personally benefit from its success. The ideal
environment allows managers to judge a concept on merit and not on who
will benefit. This takes a sacrificing leader. The ready, fire, aim approach try
new ideas but nobody succeeds every time. Reward new ideas and the
resulting success. Do not be afraid to take risks.
Examples

Coca cola bought ThumbsUp, 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, Thumbsup is also being marketed and
sold.

FlipKart bigbillion day sale faced a lot of technical and distribution

problems. Flipkart admitted the mistake and made changes and
improvements in the same

Among the worst performing MPVs in India, the Evalia has always
struggled to get going in the segment. To make 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.


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.

Telegraph services: It offered by post office went out of competition when

e-mail and texting service came into existence.

Cable TV: Its Connection came under severe threat when TATA SKY and
Airtel Digital came into existence. But then it was able to revamp and
digitize itself to offer HD quality channels and hence it is still surviving.

T-series music cassettes: It lost out to CDs which in turn is facing a huge
threat from free song playing apps on todays smartphones.

The law of Hype:

Your situation is often the opposite of the way it appears in the press: When
things are going well, a company doesnt need the hype. When you need the
hype, it usually means youre in trouble.
When your company needs the hype it usually means youre in trouble or
your plan is not strong or failing.
The hype not only says that the new product is going to be awesome, but
that itll render others obsolete. These predictions violate the law of
unpredictability; no one can predict the future, even a reporter for the Wall
Street Journal. Only revolutions you can predict are the ones that have
started.
Forget the front page, if youre looking for clues to the future, look in the
back of the paper for those innocuous little stories. Capturing the
imagination of the public is not the same as revolutionizing a market. Over
the years, greatest hype has been for developments that promise to singlehandedly change an entire industry. One creates interesting read, nothing
more as hype is hype. Real revolutions dont come down main street with a
marching band they sneak up on your in the middle of the night.

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 out to be huge 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.
The implications of this law in Indian context can be understood as follows:

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

The law of Acceleration:

Successful programs are not built on fads, theyre built on trends.
Do not focus on fads. Focus on trends. A fad gets a lot of hype, and a trend
gets very little. Fad is a short-term phenomenon that might be profitable, but
too short to do a company any good. A fashion is a fad that repeats itself.
If faced with a rapidly rising business, with all the characteristics of a fad,
best thing you could do would be to dampen the fad. By dampening, you
stretch the fad and it becomes more like a trend.

Some owners of hot toys want to put their toy name on everything. Results in
an enormous fad bound to collapse. When everyone has a Chota Bheem,
nobody wants one anymore.
Examples
Double Breasted Suits by Raymond's.
Teenage Mutant Ninja Turtles on Cartoon Network.
Tazzos by Frito-Lay
Indiaplaza.com (E-commerce boom fad)
Mosantos Biotech Agri products

The law of Resources:

Without adequate funding, an idea wont get off the ground.

Even the best idea in the world will not go far without proper funding. Ideas
without money are worthless. As Marketing is fought in the mind of the
prospect, you need money to get in the mind and you need money to stay
there.
Use your idea to find the money, not the marketing help. Entrepreneurs
believe they can use publicity and live without other promotions but publicity
isnt free, opportunity and labor costs, or PR firm costs. The rich get richer
because they have the resources to drive their ideas into the mind. Their
problem is separating the good ideas from the bad, and avoiding spending
money on too many products.
Unlike a consumer product, a technical or business product has to raise less
marketing money because the prospect list is shorter. More successful
marketers front load their investment. Take no profit for two or three years as
they reinvest all earnings into marketing.
Many of these laws fly in the face of corporate culture. Benchmarking and
beating the competition on price, service and features is a traditional focus
and its deeply ingrained.

Examples of this law in the Indian context are:

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.
Discount bull.com: Online e-commerce platform for showing discount on
clothes. The problem was lack on funds and less than attractive website.
Techbloggers: The Company used to deliver online technology news. The
main reason for their failure was lack of proper cash flow.
Late night food: The Company was a late night food-delivery startup with
outsourced food. It failed because of financial problems.
Visifybooks: It was a company which provided video cliff notes for business
books and it failed because of lack of funds.