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1. The fundamental law of Marketing is the Law of Leadership. It is better to be the first than to be the best. Microsoft launched in ’81 while Apple launched in ’84. Apple is better in hardware, software, and other areas, but it only has a 3% share, while Microsoft has a 94% share.
2. Despite this law, every company focuses on being better. America’s top-rated marketing book is titled “Simply Better.”
3. If you first perceive yourself as the best, the company will automatically attract good people, good distributors, etc. The key is to create the perception in the mind that being the first means being the best.
4. To win the battle in the market it is necessary to win the battle in the mind. Xerox invented the laser printer. But it did not enter the market. HP was the first. Red Bull was the first energy drink. Coca cola introduced the KMX energy drink. Red Bull outsold KMX 20:1. The last leading brand produced by Coca-Cola was ‘Sprite’. Your strategy has to be better indeed.
5. Instead of trying to build a better product, win the ‘best perception’.
6. Another Law of Marketing is the Law of Mind. First on the market is nothing. First in the mind is everything. Duryea was the first car on the market, but Ford’s Model T was first in mind. Yuengling was the first beer on the market, but Budweiser was the first beer in mind. Similarly, the first bookstore on the Net was Powell’s.com, but Amazon.com comes first in mind.
7. The first search engine was Alta Vista. But the first search engine in mind is Google. Focus puts you in the mind. Alta Vista became a portal. It lost its focus and was eventually sold to Overture and then to Yahoo. Today Google is the leading search engine. It is not enough to be the first, but it is necessary to be the first in the mind.
8. The Law of Leadership is the Law of Public Relations. Rumor making makes news. Being the first in a new category is news. Don’t be better than your competitors.
9. Profit Law. You can sell anything if it’s cheap enough. To make money you need a brand.
10. Motorola invented the cell phone. But Motorola put its name on a variety of products. In the last 10 years, Motorola has achieved sales of 289,000 million dollars. And a net profit margin of less than one-half of one percent. It is now in the process of focusing. He has sold his satellite and other businesses. Nokia also once did everything, including paper. But he decided to focus on mobile phones and now he dominates this market. Nokia in the last 10 years achieved sales of $193 billion. And a net profit margin of 11%.
11. What makes India successful today? High intelligence and low wages. Success will turn low wages into high wages. As a result, the business will move from India to China. USA is a country with average intelligence and high salaries. It is successful because it has powerful brands. India will not become powerful if it does not have powerful brands. If Indian brands don’t go global, global brands will come here and take over.
12. The Line Extension Law. You can’t defend something if you put your name on everything. In the Japanese electronic market, everyone makes everything. It is a line extension company. Nobody builds a brand. Everyone sells by price. Nobody makes money. The total consumer electronics industry in Japan over the past 10 years has earned $3 billion in revenue, but its net profit margin has been only 0.2%. While in the United States the revenue of the top 500 companies in the last 10 years has been $7 billion and the net profit margin of 6%. The automotive market in Japan is more focused.
13. Japan has it all. Smart workforce, world-class production facilities, etc. Purpose without Marketing. In the last 15 years the Japanese stock market has dropped 59% while the American stock market has risen 378%. The same will happen in Korea. They too will put their name on everything and fail to create brands. IBM also put its name on everything. He suffered from a mainframe mentality. Didn’t capture the position in mind for PC. In the last 23 years it has lost $15 billion. on PC. It has now been sold to Lenovo. The leader in PCs is Dell. Ironically, the University of Texas sophomore took on the world’s biggest viz. IBM and the student won because Dell had a product, a market, a distribution channel, and had an outstanding performance in the stock market.
14. Law of divergence. As time goes by, each category will diverge. Telephones will expand and become regular phones, cordless phones, walkie-talkies, and cell phones. Similar television will be divided into broadcast television, pay-per-view television, cable television, and satellite television. Televisions branch out to become Cathode Ray Tube (CRT), Liquid Crystal Display (LCD), Liquid Crystal on Silicon (LCOS), Digital Light Processing (DLP), Plasma, Organic Light Emitting Diode (OLED). Hotels will diverge and be expensive, mid-priced, low-priced, motels, low-priced motels, suite hotels, weekly hotels.
15. The divergence comes from Darwin who has explained the concept in ‘The Origin of Species’. The panthera tree has a lion, a jaguar, a tiger and a leopard. The humanoid tree has the Gorilla, the Chimpanzee, the Orangutan and the Human Being. Man did not evolve. He diverged. Evolution is gradual change. Divergence is an abrupt change.
BRAND SENSE BY MARTIN LINDSTROM
1. The brand is what happens in one’s mind.
2. The brand is not a logo. The proof is that if you remove the logo, you will still be able to recognize the brand!
3. Traditional communication no longer works because we are being over-communicated.
4. What appeals to so many senses will be remembered.
5. The story goes that the challenge given to Coco-Cola was to create a bottle that, if broken, could still be recognized by its glass pieces. So the meaning of ‘Crush your brand’ is that one needs to look at all the little pieces the brand can be broken into and see what the brand itself can do.
6. The brand wheel is a tool that indicates portions of real estate that a brand can optimize and own, viz. Image, Colors, Forms, Name, Language, Icons, Sound, Behavior, Service, Tradition, Rituals and Navigation.
7. Orange has appropriated a color. Absolut rated as ‘spelling error’. So its variants are Rasberri, Vanilia, Kurant, etc. The brand needs to have something more besides the logo. Absolut has also marked the shape of its bottle.
8.The ‘Idea’ brand icon is the ‘Sumo Wrestler’. So if one removes the logo and keeps only the Sumo Wrestler, the ‘Idea’ brand will be recognized.
9.The brand creates community and belonging.
10. Louis Vuitton was renovating its store in Paris. For this he created a façade in the shape of his luggage bags and accessories. People remembered the facade. In fact they identified with her. To the point that when it was going to be torn down after 2 years when the renovation was completed there was a demonstration outside the store.
11. The Tiffany Box is a registered trademark. The Pantone color tone used for the Tiffany box is owned by Tiffany. Therefore, it is necessary to obtain permission from Tiffany if you want to use the same color tone.
12. Branding is about consistency.
13.Today Pepsi has the color ‘blue’. Pepsi took it from IBM. If one wants to secure property, then one must stick to it.
14. The Peugeot car has the ‘0’ marked in the middle of its car plate numbers. The story goes that the creator of the Peugot car used to experiment with breaking the number in the middle into 2 pieces to use the crankshaft to start the car. Because the crankshaft had to drill that number. He then thought that if the crankshaft had to be inserted into a ‘0’, then there would be no breaking of a number into 2 pieces. And so all Peugeot cars have ‘0’ in the middle of their license plate numbers.
15. Ipod has now extended its brand even to its earplugs. Seeing a person with Ipod earplugs, you can recognize an Ipod user.
16. There are certain words that are proprietary to Disney and that people recognize as being associated with the Disney brand. These words are: Fantasy, Dreams, Magic, Smiles, Happiness, Creativity. Disneyland staff use these words. These words are embedded in the lyrics of Disney songs. And so.
17. Colgate owned the smile but it went to Disney and McDonald’s.
18. One needs to create a difference in the mind.
19. We are too focused on the visual aspect of the brand. We have to see how we can mark ‘sound’.
20. The main theme of the James Bond movie. In fact, James Bond has marked so many things around him. The logo, ‘Bond, James Bond’, ‘Shaken Not Stirred’, gadgets, old scenes, title intro, character names, weapon, theme, filming, etc.
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