Top 15 Laws every Marketer should know

Welcome, dear reader, to the whimsical world of marketing laws! No, we’re not talking about the kind that requires a gavel and powdered wig. We’re diving into the unofficial commandments that govern the chaotic cosmos of advertising and branding. Think of these as the “Pirates’ Code” for marketers—guidelines rather than actual rules, but ignore them at your peril. Let’s embark on this journey through the top 15 marketing laws, sprinkled with real-world brand escapades.

1. Murphy’s Law: “Anything that can go wrong, will go wrong.”

Ah, Murphy’s Law—the eternal pessimist’s mantra. In marketing, this translates to: “Prepare for chaos, and then some.”

Case Study 1: Pepsi’s Kendall Jenner Ad Fiasco

In 2017, Pepsi launched an ad featuring Kendall Jenner, aiming to promote unity. Instead, it was accused of trivializing social justice movements. The backlash was swift, and Pepsi had to pull the ad, showcasing how even well-intentioned campaigns can go horribly wrong.

Case Study 2: Hoover’s Free Flights Promotion

In the early ‘90s, Hoover UK offered free flights to the U.S. for customers who purchased £100 worth of products. The promotion was so popular that Hoover couldn’t fulfill the flight requests, leading to a PR disaster and significant financial losses.

2. Parkinson’s Law: “Work expands to fill the time available for its completion.”

In marketing, this means campaigns will take as long as you allow them to—deadlines are your friend.

Case Study 1: Apple’s Product Launches

Apple’s meticulously planned product launches are a testament to setting strict deadlines. Each launch is timed perfectly, creating anticipation and ensuring timely delivery.

Case Study 2: Volkswagen’s “Think Small” Campaign

In the 1960s, Volkswagen’s agency, Doyle Dane Bernbach, operated under tight deadlines to produce the iconic “Think Small” campaign. The time constraints led to focused creativity, resulting in one of the most successful ads in history.

3. The Law of the Few (from The Tipping Point): “A tiny percentage of people do the majority of the work.”

In marketing, influencers and key opinion leaders often drive trends.

Case Study 1: Nike’s Collaboration with Michael Jordan

Nike’s partnership with Michael Jordan led to the creation of the Air Jordan line, revolutionizing athletic footwear and setting sales records, all driven by the influence of one athlete.

Case Study 2: Oprah’s Book Club

Books featured in Oprah’s Book Club often become bestsellers overnight, demonstrating the impact a single influencer can have on consumer behavior.

4. The Pareto Principle (80/20 Rule): “80% of effects come from 20% of causes.

In marketing, a significant portion of sales often comes from a small fraction of customers.

Case Study 1: Amazon Prime

Amazon identified that a small percentage of loyal customers accounted for a large portion of sales. Introducing Amazon Prime enhanced their shopping experience, increasing overall revenue.

Case Study 2: Coca-Cola’s Focus on Core Products

Coca-Cola generates most of its revenue from a few core products, leading them to focus marketing efforts on these bestsellers.

5. Goodhart’s Law: “When a measure becomes a target, it ceases to be a good measure.”

Overemphasis on specific metrics can lead to manipulation, rendering them ineffective.

Case Study 1: Wells Fargo’s Sales Quotas

Wells Fargo’s aggressive sales targets led employees to create fake accounts to meet goals, resulting in a major scandal and loss of customer trust.

Case Study 2: Facebook’s Video Metric Inflation

Facebook’s overemphasis on video views led to inflated metrics, misleading advertisers about the effectiveness of their campaigns.

6. The Peter Principle: “Employees rise to their level of incompetence.”

In marketing, promoting without proper assessment can lead to inefficiency.

Case Study 1: JC Penney’s CEO Misstep

JC Penney hired Ron Johnson, who implemented drastic changes without understanding the brand’s core customers, leading to a significant drop in sales.

Case Study 2: New Coke Debacle

Coca-Cola’s decision to introduce New Coke in 1985, led by executives out of touch with consumer preferences, resulted in a public outcry and the return of the original formula.

7. The Streisand Effect: “Attempting to hide information only makes it more widespread.”

In the digital age, trying to suppress information can backfire spectacularly.

Case Study 1: McDonald’s #McDStories Campaign

McDonald’s Twitter campaign encouraging customers to share positive stories led to a flood of negative experiences, amplifying criticism.

Case Study 2: United Airlines’ Passenger Incident*

United Airlines’ attempt to downplay the forcible removal of a passenger led to viral videos and global outrage, damaging the brand’s reputation.

8. The Halo Effect: “Positive impressions in one area lead to positive impressions in another.”

A strong brand image can enhance perceptions across all products.

Case Study 1: Apple’s Ecosystem

Apple’s reputation for quality in computers extended to its other products, like the iPhone and iPad, boosting overall brand perception.

Case Study 2: Toyota’s Lexus Launch

Toyota’s reputation for reliability helped establish Lexus as a trustworthy luxury brand.

9. The Pygmalion Effect: “Higher expectations lead to improved performance.”

Belief in a campaign’s success can boost team morale and outcomes.

Case Study 1: Dove’s Real Beauty Campaign

Belief in promoting real beauty standards led to a successful campaign that resonated with consumers and boosted sales.

Case Study 2: Nike’s “Just Do It” Campaign

Nike’s internal belief in empowering athletes translated into a campaign that inspired consumers and elevated the brand.

10. The Boomerang Effect: “Persuasive attempts can result in the adoption of opposing views.”

Overly aggressive marketing can drive consumers away.

Case Study 1: Sony’s Fake PSP Blog

Sony’s attempt to create a fake blog to promote the PSP was met with backlash, leading to negative publicity.

Case Study 2: McDonald’s “I’d Hit It” Campaign

Aimed at younger audiences, the campaign’s slang was misinterpreted, leading to ridicule and a quick withdrawal.

11. The Law of Unintended Consequences: “Actions can have unforeseen effects.”

Campaigns can lead to unexpected outcomes, not always positive.

Case Study 1: Starbucks’ “Race Together” Campaign

Starbucks’ initiative to encourage conversations about race was criticized as tone-deaf, leading to public backlash.

Case Study 2: Burger King’s “Whopper Neutrality” Campaign

An attempt to explain net neutrality through a Whopper pricing stunt confused customers and led to mixed reactions.

12. The Law of Diminishing Returns: “Increasing investment yields progressively smaller returns.”

Imagine pouring water into a glass. Initially, each pour significantly fills the glass, but as it nears capacity, additional water has less impact and eventually overflows. In marketing, this principle suggests that after a certain point, increasing investment in a particular strategy or channel results in progressively smaller gains.

Case Study 1: Google’s Ad Spend Saturation

Companies investing in Google Ads often experience diminishing returns as they scale up their budgets. Initially, increasing ad spend leads to higher impressions and conversions. However, beyond a certain threshold, the cost per acquisition rises, and the return on advertising spend (ROAS) declines. This occurs because the most receptive audiences are reached first; additional spending attempts to engage less interested users, leading to reduced efficiency. Recognizing this saturation point is crucial to optimize ad budgets effectively. 

Case Study 2: Content Marketing Overload

A tech startup launched an aggressive content marketing strategy, publishing daily blog posts, whitepapers, and videos. Initially, website traffic and engagement soared. However, as the content volume increased, the quality declined, leading to audience fatigue and decreased engagement. The company’s failure to recognize the diminishing returns of excessive content production resulted in wasted resources and a diluted brand message.

13. The Law of Unintended Consequences: “Actions can have unforeseen effects.”

Even the best-laid marketing plans can lead to unexpected outcomes, sometimes counteracting the original intent.

Case Study 1: Social Cause Advertising Backfire

A company launched a campaign highlighting a social cause, featuring advertisements depicting violent situations to raise awareness. While aiming to promote positive change, the ads inadvertently triggered aggressive thoughts among certain audience segments, particularly individuals with predispositions toward aggression. This unintended consequence highlighted the need for careful consideration of content and audience sensitivities in cause-related marketing. 

Case Study 2: Ford’s Corporate Jet Policy

Ford Motor Company, in an effort to cut costs, implemented a policy requiring executives to use chartered jets instead of company-owned aircraft. This decision led to increased expenses due to higher charter costs and logistical inefficiencies. Additionally, it resulted in job losses among transportation staff. The policy, intended to reduce expenditures, ultimately exemplified the law of unintended consequences by causing financial and human resource setbacks. 

14. The Law of Reciprocity: “People tend to return favors.”

In marketing, offering something of value can encourage customers to respond positively, fostering loyalty and engagement.

Case Study 1: Sephora’s Beauty Insider Program

Sephora offers a loyalty program where members receive free samples, birthday gifts, and exclusive access to products. This generosity encourages customers to make repeat purchases, as they feel compelled to reciprocate the brand’s goodwill.

Case Study 2: HubSpot’s Free Tools

HubSpot provides free marketing tools and resources to businesses. By offering value upfront, they establish trust and encourage users to consider their paid services when scaling their operations.

15. The Law of Social Proof: “People follow the actions of others.”

Consumers often look to others’ behaviors and opinions to guide their own decisions, especially in uncertain situations.

Case Study 1: Amazon’s Customer Reviews

Amazon prominently features customer reviews and ratings for products. Positive reviews serve as social proof, influencing potential buyers to make purchases based on others’ experiences.

Case Study 2: McDonald’s “Billions Served” Signage

McDonald’s displays signs stating “Billions Served,” signaling widespread customer approval. This social proof reassures potential customers of the brand’s popularity and reliability.

16. The Rule of Seven: “A prospect needs to see or hear your marketing message at least seven times before they take action.”

This classic marketing principle suggests that potential customers require multiple exposures to a message before making a purchase decision. The idea is to build familiarity and trust through repeated interactions.

Case Study 1: Coca-Cola’s Consistent Advertising

Coca-Cola has long embraced the Rule of Seven by maintaining a consistent and omnipresent advertising strategy. From television commercials to billboards and sponsorships, the brand ensures that consumers encounter its messaging repeatedly, reinforcing brand recognition and encouraging purchases.

Case Study 2: Local Service Providers’ Direct Mail Campaigns

Local businesses often utilize direct mail campaigns, sending out flyers and postcards multiple times to the same households. By adhering to the Rule of Seven, these service providers increase the likelihood that potential customers will remember their offerings and reach out when in need of their services.

17. The Law of Perception: “Marketing is not a battle of products, it’s a battle of perceptions.”

This law emphasizes that consumer perception, rather than the actual product, dictates market success. Shaping how customers perceive a brand can be more critical than the product’s inherent qualities.

Case Study 1: Apple’s Premium Image

Apple has cultivated a perception of innovation and premium quality, allowing it to command higher prices despite comparable alternatives. This perception is reinforced through sleek design, high-profile product launches, and a focus on user experience.

Case Study 2: Listerine’s “Tastes Bad, Works Great” Campaign

Listerine turned a negative—its strong taste—into a positive by positioning it as proof of effectiveness. This strategic shift in perception helped Listerine dominate the mouthwash market.

18. The Law of Focus: “A company becomes more powerful when it focuses on one thing.”

Specialization can lead to a stronger brand identity and market dominance. By concentrating efforts on a single product or service, companies can become synonymous with that offering.

Case Study 1: Domino’s Pizza’s Delivery Promise

Domino’s focused on fast delivery with its “30 minutes or it’s free” guarantee. This singular focus differentiated it from competitors and built a loyal customer base.

Case Study 2: Volvo’s Safety Emphasis

Volvo concentrated its marketing on vehicle safety, leading consumers to associate the brand with reliability and protection, setting it apart in the automotive industry.

19. The Law of Exclusivity: “Two companies cannot own the same word in the prospect’s mind.”

Once a brand becomes associated with a particular attribute, it’s challenging for competitors to claim the same position.

Case Study 1: FedEx’s “Overnight” Delivery

FedEx established itself as the leader in overnight shipping. Competitors attempting to adopt the same positioning struggled to change consumer perception.

Case Study 2: BMW’s “Ultimate Driving Machine”

BMW’s branding around driving performance made it difficult for other car manufacturers to position themselves similarly without appearing imitative.

20. The Law of the Category: “If you can’t be first in a category, set up a new category you can be first in.”

Creating a new market category can position a brand as a leader without direct competition.

Case Study 1: Southwest Airlines’ Low-Cost Carrier Model

Southwest Airlines introduced the low-cost carrier category, differentiating itself from traditional airlines and attracting cost-conscious travelers.

Case Study 2: Cirque du Soleil’s Circus-Theater Hybrid

Cirque du Soleil combined elements of circus and theater, creating a unique entertainment category and achieving global success.

Key Takeaways:

1. Repetition Builds Recognition: The Rule of Seven highlights the importance of consistent messaging to foster familiarity and trust.

2. Perception Shapes Reality: The Law of Perception underscores the need to manage how consumers view your brand, sometimes outweighing the product’s actual attributes.

3. Focus Drives Strength: The Law of Focus demonstrates that specializing in a particular area can lead to a stronger market presence.

4. Own Your Unique Attribute: The Law of Exclusivity suggests that establishing a unique brand association makes it challenging for competitors to encroach on your positioning.

5. Create Your Niche: The Law of the Category encourages innovation by establishing new market segments where your brand can lead.

Conclusion:

Understanding and applying these marketing laws can provide strategic advantages in building and maintaining a strong brand presence. By focusing on consumer perceptions, consistent messaging, and carving out unique market positions, businesses can navigate the competitive landscape more effectively and foster lasting connections with their audiences.