Al Ries Quotes

What should a brand leader advertise? Brand leadership, of course. Leadership is the single most important motivating factor in consumer behavior.

Mind-changing is the road to advertising disaster.

According to a recent Spencer Stuart survey, a company’s chief marketing officer has the shortest tenure of any top executive. “This job is radioactive,

Quality is a nice thing to have, but brands are not built by quality alone.

fad is a wave in the ocean, and a trend is the tide. A fad gets a lot of hype, and a trend gets very little. Like a wave, a fad is very visible, but it goes up and down in a big hurry. Like the tide, a trend is almost invisible, but it’s very powerful over the long term. A fad is a short-term phenomenon that might be profitable, but a fad doesn’t last long enough to do a company much good. Furthermore, a company often tends to gear up as if a fad were a trend. As a result, the company is often stuck with a lot of staff, expensive manufacturing facilities, and distribution networks. (A fashion, on the other hand, is a fad that repeats itself. Examples: short skirts for women and double-breasted suits for men. Halley’s Comet is a fashion because it comes back every 75 years or so.) When the fad disappears, a company often goes into a deep financial shock. What happened to Atari is typical in this respect. And look how Coleco Industries handled the Cabbage Patch Kids. Those homely dolls hit the market in 1983 and started to take off. Coleco’s strategy was to milk the kids for all they were worth. Hundreds of Cabbage Patch novelties flooded the toy stores. Pens, pencils, crayon boxes, games, clothing. Two years later, Coleco racked up sales of $776 million and profits of $83 million. Then the bottom dropped out of the Cabbage Patch Kids. By 1988 Coleco went into Chapter 11. Coleco died, but the kids live on. Acquired by Hasbro in 1989, the Cabbage Patch Kids are now being handled conservatively. Today they’re doing quite well.

The issue is clear. It’s the difference between building brands and milking brands. Most managers want to milk. “How far can we extend the brand? Let’s spend some serious research money and find out.” Sterling Drug was a big advertiser and a big buyer of research. Its big brand was Bayer aspirin, but aspirin was losing out to acetaminophen (Tylenol) and ibuprofen (Advil). So Sterling launched a $116-million advertising and marketing program to introduce a selection of five “aspirin-free” products. The Bayer Select line included headache-pain relief, regular pain relief, nighttime pain relief, sinus-pain relief, and a menstrual relief formulation, all of which contained either acetaminophen or ibuprofen as the core ingredient. Results were painful. The first year Bayer Select sold $26 million worth of pain relievers in a $2.5 billion market, or about 1 percent of the market. Even worse, the sales of regular Bayer aspirin kept falling at about 10 percent a year. Why buy Bayer aspirin if the manufacturer is telling you that its “select” products are better because they are “aspirin-free”? Are consumers stupid or not?

But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect.

Големите компании виждат нещата такива, кавито са. Предприемачите ги виждат такива, каквито могат да бъдат.

All the recent marketing successes have been PR successes, not advertising successes. To name a few: Starbucks, The Body Shop, Amazon.com, Yahoo!, eBay, Palm, Google, Linus, PlayStation, Harry Potter, Botox, Red Bull, Microsoft, Intel, and BlackBerry. A closer look at the history of most major brands shows this to be true. As a matter of fact, an astonishing number of well-known brands have been built with virtually no advertising at all. Anita Roddick built The Body Shop into a worldwide brand without any advertising. Instead she traveled the world looking for ingredients for her natural cosmetics, a quest that resulted in endless publicity. Until recently Starbucks didn’t spend a hill of beans on advertising either. In its first ten years, the company spent less that $10 million (total) on advertising in the United States, a trivial amount for a brand that delivers annual sales of $1.3 billion today. Wal-Mart became the world’s largest retailer, ringing up sales approaching $200 billion, with little advertising. Sam’s Club, a Wal-Mart sibling, averages $56 million per store with almost no advertising. In the pharmaceutical field, Viagra, Prozac, and Vioxx became worldwide brands with almost no advertising. In the toy field, Beanie Babies, Tickle Me Elmo, and Pokémon became highly successful brands with almost no advertising. In the high-technology field, Oracle, Cisco, and SAP became multibillion-dollar companies (and multibillion-dollar brands) with almost no advertising.

A perception that exists in the mind is often interpreted as a universal truth.

What’s called luck is usually an outgrowth of successful communication.

Marketing is a battle of ideas. So if you are to succeed, you must have an idea or attribute of your own to focus your efforts around. Without one, you had better have a low price. A very low price. Some say all attributes are not created equal. Some attributes are more important to customers than others. You must try and own the most important attribute. Cavity prevention is the most important attribute in toothpaste. It’s the one to own. But the law of exclusivity points to the simple truth that once an attribute is successfully taken by your competition, it’s gone. You must move on to a lesser attribute and live with a smaller share of the category. Your job is to seize a different attribute, dramatize the value of your attribute, and thus increase your share.

The fickle-fingers affair Another missed opportunity is known in hand lotion circles as “the fickle-fingers affair.” The story starts with Jergens, the No. 1 brand with the dominant share of market. First, the company introduced Jergens Extra Dry, a creamlike product in an era of liquidlike lotions. Jergens Extra Dry was really a significant innovation smothered by the similarity of names. The prospect didn’t recognize the difference. But the competition did. Chesebrough-Pond’s introduced Intensive Care. Now for the first time, the new creamlike lotion had a name which positioned the product clearly in the consumer’s mind. And the product took off. Of course, when Jergens realized what was happening, they countered with a brand called Direct Aid. But it was the old story of too little and too late because the marketing victory went to Intensive Care. Today Intensive Care is the No. 1 brand. It outsells Jergens, Jergens Extra Dry, and Direct Aid combined. But isn’t the brand really called “Vaseline Intensive Care,” a line-extended name? True, but customers call the product Intensive Care, not Vaseline. In the mind of the prospect Vaseline is petroleum jelly; Intensive Care is a hand lotion.

Positioning is an organized system for finding a window in the mind. It is based on the concept that communication can only take place at the right time and under the right circumstances.

In politics,” said John Lindsay, “the perception is the reality.” So, too, in advertising, in business, and in life.