If you freeze an idea too quickly, you fall in love with it.
If you refine it too quickly, you become attached to it
and it becomes very hard to keep exploring, to keep
looking for better. The crudeness of the early models
in particular is very deliberate.
– Jim Glymph, Software Specialist, Gehry Partners
“I’m not a teacher, or a preacher. I’m a reacher” – Michael Cimino writer-director, editor of Academy Award Winning Film The Deerhunter.
The book is titled 22 Laws of Marketing by Al Ries and Jack Trout
To avoid being a teacher or a preacher. I would just like to say, before I lay out what the authors have described and provided many examples of 22 laws of marketing. That I’m currently in exploration phase, and hopefully, and when I do find something to market and hence put it on the net. I will take these laws into high consideration. As it brings a lot of past and current events of marketing gone wrong to light. Without further ado,
#1 The Law of Leadership
-It’s not about being better. It’s about getting there first. Today, see the online real estate rumors of Zillow (got there first by a couple months is now buying it’s competitor Trulia for $3.5B in all stock)
#2 The Law of Category
– If you can’t get there first in a category set up a category you can be first in.
Book example: “After Heineken became a big success in America, the people at Anheuser-Busch could have said, ‘We should bring in an imported beer, too.’ But they didn’t. Instead, they said “If there’s a market for a high-priced imprted beer, maybe there’s a marked for a high priced domestic beer.” See Marketing to the Affluent
#3 The Law of the Mind
It’s better to be first in mind than to be first in the marketplace.
– Nike. Enough said.
#4 The Law of Perception – My personal favorite
-Marketing is not a battle of products, it’s a battle of perceptions.
-*This is a good one for people who have traveled.
#5 The Law of Focus
-The most powerful concept in marketing is owning a word in the prospect’s mind.
Like – Facebook
Followers – Twitter
Thick – Heinz
Fast – Ferrari
etc.
#6 The Law of Exclusivity
Two companies cannot own the same word in the prospect’s mind. (Peer Pressure)
Ex: Fed Ex walked away from overnight and trying to take away worldwide from DHL.
Someone already owns it. Long-lasting – Duracell, Energizer tries to steal it.
#7 The Law of the Ladder
The strategy to use depends on which rung you occupy on the ladder.
Don’t try to follow and be number one if you’re number two or three. Own number three and take Law number 2 into consideration.
1. Marc Jacobs – High end to discount
2. Tom Ford – Specialized in high end
“It might be better to be a small fish in a big pond than a big fish in a small pond.”
“It’s sometimes better to be No. 3 on a big ladder than number 1. on a small ladder.
#8 The Law of Duality
– In the long run, every market becomes a two horse race.
Apple versus Samsung/Google in smartphones.
Remember Blackberry and the Microsoft Zune?
The market always shakes out to a two horse race.
#9 The Law of the Opposite
-If you’re shooting for second place your strategy is determined by the leader.
Position yourself as the only alternative. From 37signals’ book Rework.
Pick a Fight and present the only alternative.
#10 The Law of Division
– Overtime, a category will divide and become two or more categories.
The media industry – First started out as 3 TV stations, now there’s HBO’s pay per view, YouTube, cable, PBS-public TV, satellite and streaming media) All on the Net!
#11 The Law of Perspective
–Marketing effects take place over an extended period of time.
“Is Alcohol a stimulant or a depressant?”
Happy Hour = Stimulant
Morning after = Depressant
Look at what the stock market does in the name of short term profit vs long term sustainability.
See Collin’s book Built to Last.
#12 The Law of Line Extension
There’s an irresistible pressure to extend the equity of the brand.
Coca-Cola – New Coke, Coke Cherry, Coke Zero, etc
#13 The Law of Sacrifice
Most brands are doing this, and it seems acceptable to the eye, but think of it as good marketing gloss compared to the real numbers. Ferrari selling shoes and clothes.
Exploit Specializations.
#14 The Law of Attributes
For every attribute, there is an opposite, effective attribute.
When competing, use the opposite attribute to exploit the leader.
#15 The Law of Candor
-Being brutally honest of your product even if it is negative.
Buckley’s Cough Syrup “It tastes awful, but it works!”
#16 The Law of Singularity
– In each situation, only one move will produce substantial results.
Marketing is warfare. The big guys are far away from reality and the start ups are on the front lines to gain edge, a singular concept to break through the wall of competing ideas, to challenge the consumer to come over the “right” side
#17 The Law of Unpredictability
– Unless you write your competitors’ plans, you cant predict the future.
“Most companies live from quarterly report to quarterly report. = problems”
Good short term planning is differentiating yourself from the pack. Then set up for not a long term plan, but a long term direction.
#18 The Law of Success
Success often leads to arrogance, and arrogance to failure.
Case and point Blackberry. When Barack Obama was sporting the hottest BB device, it was only destiny to unfold that Blackberry was going to be an invincible industry leader in the business smartphone market. He took his eyes off the prize, got distracted by trying to bid for the Phoenix Coyotes and then the iPhone slipped in under radar.
#19 The Law of Failure
– Failure is to be expected and accepted.
The Japanese anticipate failure, readjust and keep firing.
Walmart: “ready, fire, aim”
Don’t play it safe.
#20 The Law of Hype
The situation is often the opposite of the way it appears in the press.
Chances are if it’s in the press it’s the opposite of what’s really happening.
The frequent Facebook updater…Life is ruins. Even I can attest to that!
Spin doctors and Publicists usually churn the media frenzies.
#21 The Law of Acceleration
Successful programs are not built on fads, they are built on trends.
I’ll argue that fads are a trend.
#22 The Law of Resources
Without adequate funding an idea won’t get off the ground.
The numbers simply suck for funding.
The book even admits that the most real ways to attain funding is for you to marry, divorce or inherit it to get the funds you need.(This book was written in 1993.
Self mades are more prevalent today then any time in history.
But the man or woman who has the power, controls the idea’s destiny.
For me, dopeness is what I like the most. People who wanna make things as dope as possible. And by default, make money from it. The thing that I like the least, are people who only wanna make money from things whether they’re dope or not, and especially make money from making things [the] least dope as possible.” -Kanye West, 2014
4. Profit margin and markup are the same. They are not. Profit margin is profit as a percentage of revenue. Profit percentage (or markup) is profit as a percentage of cost (the percentage difference between your cost and the selling price). Another metric is cash margin, which is not expressed in a percentage.” – Andrew Miller, President, ACM Consulting Inc.
I picked number four because most people including myself think/thought they are the same.
Got an iPhone?
gross profit divided by total revenue
http://ycharts.com/companies/AAPL/gross_profit_margin
See article on Startup Master
Got Facebook?
http://ycharts.com/companies/FB/gross_profit_margin
That’s Mark up (profit percentage)!
Most of the Internet believes that profit margin is the made for/retail formula.
It’s not.
Profit Margin is the percentage iPods profit/sold in comparison to total revenue (gross/net) Apple makes.
Here’s a graph
Now you know.
Watch out for another post on Pricing Strategy in the next couple of days.
The link(s) for Profit Margins below:
“Your cash ain’t nothin’ but trash” – Steve Miller Band
Cash is King, what happens if you’re a pauper?
Customers are the lifeblood of your business… What happens if you have none?
The Symptoms of Cashflow Problems
Here’s a tip: http://www.inc.com/kevin-daum/the-holy-grail-of-business-make-money-and-keep-clients-happy.html
What’s the difference between Cash Flow and Profit? An entrepreneur’s goal is to make money, and eventually get rich. A civilian’s goal is supposed to make money and get rich. For personal and corporate. Why is there little resources on these two extremely important areas of entrepreneurship? This blog is going to help spread the good word that Cash flow and uncommon Customer courtesy is the essential focus for you not only to make your customers feel rich and in turn be rich. I’ll be referencing my vast library, the Calgary Public Library and other expert’s ideas on Cash Flow and Customer Retention and Allocation.
My Cash Flow books just came in the mail. So I’ll be updating this blog post and and I’ll be putting up the misleading traits of profit and Cash Flow.
Dan S. Kennedy has a chapter in his No BS to Business Success on Managing Cash Flow
Inc. Magazine has done a bit on Cash Flow:
10 Absolute Must Follow Cash Rules
Put it On the Net 