TEL 340 1nd Edition Exam 2 Study Guide Lectures 7 11 Lecture 7 January 29th What are the laws of positioning 1 5 Law 1 is the law of leadership It is the first successful company brand identity tends to stay successful Law 2 is the law of the category This law says that if you cannot be number one in your category start a new category Law 3 is the law of the mind This law says that it is better to be first in the mind of the customer than first in the marketplace Law 4 is the law of focus This law says that it is critical to own an attribute in the customer s mind Law 5 is the law of the name It says that the best advertising for a company product is a descriptive name Lecture 8 January 30th What are the laws of positioning 6 8 Law 6 is the law of division It says that over time a category will divide into two or more categories For example television has divided into free TV and cable Law 7 is the law of perspective This law says that marketing results take place over a long period of time The short term benefits sometimes become long term liabilities Frequent sales condition consumers into waiting for the next sale Law 8 is the law of line extension It says that there is a temptation to extend the equity of the brand and it usually backfires New products require new names and giving the new product the name of the established product confuses consumers about the new product and alienates them about the established product Lecture 9 11 January 3rd January 5th What are the laws of positioning 9 13 Law 9 is the law of the ladder This law says that your marketing strategy is determined by your position on the competitive ladder You can tell if the ladder is long if products are bought frequently if the product is inexpensive if the consumer has high personal intimacy interest and if the product involves high personal status Law 10 is the law of duality It says that in a stable industry consumer markets often become a 2 or 3 product contest Law 11 is the law of the opposite It says that secondary brands in a category can be competitive by positioning opposite 1 s attributes Your overall business strategy is determined by the number of competitors you have Law 12 is the law of unpredictability This law says that you cannot predict the future Eventually circumstances change Law 13 is the law of candor This means that products admitting a negative get credit for a positive When you admit there s a problem and criticizes your product or service it is good If you have a problem admit it as soon as common sense requires