In 1993, Al Ries and Jack Trout have defined the laws of marketing in The 22 Immutable Laws of Marketing (which is by the way a must read for any marketer). And while most of 90’s marketing ideas are not very accurate today (press and outdoor campaigns seem not to be enough and 2 for 1 sales strategy might not be the best sales strategy), the laws seem to last.
The idea for this article is to review those laws and see how they work today. I have found a lot of argue over the Internet whether the laws from the book work or not (ex. here and here). I will be very happy to listen what you thin about them.
The hype on digital tools has lead us to the world, where word “positioning” is instantly connected with SEO strategies and being visible in Google. Well… this article is not about it at all.
The very accurate description of what strategic positioning is has been coined by Al Ries and Jack Trout years back:
„Positioning is not what you do to a product. Positioning is what you do to the mind of the customer.”
Published in 2005 by INSEAD professors W. Chan Kim and Renée Mauborgne, Blue Ocean Strategy book has become a global phenomenon, as it has sold in over 3,5 million copies and was translated into 44 languages.
Thy hype over the new attitude on competing and the idea of creating new markets of so called noncustomers was extremely strong for a few years. But it’s gone. Today, marketers, trainers, entrepreneurs and business people in general have found a new hype – Alexander Osterwalder’s Business Model Generation and Value Proposition Design.
While it is out of question that the tools created by Osterwalder (and 470 practicioneers from 45 countries as the book was co-created) are very useful and make thinking about business models much less complex, I believe that Blue Ocean Strategy can still greatly support thinking about new products and businesses as it makes it easier to see things from other perspective.
Disruption means a fundamentally better alternative for solving a customer problem, in a cheaper, quicker and more convenient way with technology playing an essential, enabling role. It does not mean evolutionary change, but it is radical in the way it influences businesses and societies (Girn, 2014). It creates a new market and value network to eventually disrupt existing ones and displace established leaders (Bower, Christensen, 1995).
Disruption in few words is what Uber did to taxi drivers, how Spotify has changed the music business and how Airbnb diminishes the incomes of hotels all over the world. (more…)