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The law of leadership
19-Feb-2009
Two thought leaders we often refer our clients to in the field of marketing and branding, are Al Ries and Jack Trout and their classic book, “The 22 Immutable Laws of Marketing”.
The authors state that customers tend to disbelieve or ignore company claims of product or service ‘quality’. Customers think, “That’s what they all say” - and as a result, this kind of strategic positioning does not cut through. Yet looking around, that’s what we see most companies doing in their marketing messages.
What makes a brand strong is not the actual product or the service. It's the strategic position your brand owns in the mind of the consumer.
Customers gravitate to what they perceive to be the leading brand in each category. While people love underdogs, they buy “overdogs”.
To maximize the growth of your company, it is important to create a strategic position in an industry category where you can legitimately claim “leadership” – and to clearly convey this message in the way you market your brand.
If however, a competitor firm is perceived as the leading brand in your industry - your best strategy is to create a new sub-category in which you can legitimately stake out your own leadership position.
Category leadership is the most powerful way to differentiate your brand from your competition. Also, when you are perceived as the category leader, customers are more likely to believe what you say about your brand.
When you can legitimately claim a leadership position, make sure your customers know it. Too many companies take their leadership for granted and never exploit it – because they don't want to appear to be bragging. All this does is leave the door open for your competition to gain market share. Never assume your customers know which brand is the leader. You must explicitly tell them!
Which brand will be the winner in each category? It won’t necessarily be the first in the marketplace. First mover advantage is a myth. It will be the first brand to establish the leadership position in the customer’s mind.
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