03 Jul Personal Finance – The Law of Exclusivity
In Marketing a product one must never try to to own a ‘word’ that your competitor owns.
You must find your own ‘word’. You must seek out another attribute.
Too often a company attempts to emulate the leader. “They must know what works,” goes the rationale, “so let’s do something similar.”
Not good thinking.
It’s much better to search for an opposite attribute that will allow you to play off against the leader.
The key word here is opposite—similar won’t do-
Coca-Cola was the original and thus the choice of older people. Pepsi successfully positioned itself as the choice of the younger generation.
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.
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.
Your job is to seize a different attribute, dramatize the value of your attribute, and thus increase your share.
For many years IBM dominated the world of computers with its attributes of “big” and “powerful.”
Companies that tried to move in on those attributes had little success. RCA, GE, UNI-VAC, Burroughs, Honeywell, NCR, and Control Data lost a lot of money on mainframe com-puters.
Then an upstart from Boston went for the attribute of “small” and the minicomputer was born.
They probably laughed in Armonk because they knew corporate America wanted “big and powerful.”
Today “small” has grown to such proportions that IBM’s vast mainframe empire is in serious
Fixed Deposit today is known for ‘safety’.
For ‘Equity’ investing, while owning risky obviously isn’t an option but owning ‘short term risky’ is certainly worth dramatising.
When we say ‘short term risky’ we are actually saying the following : –
- If ‘Equity’ is short term risky it also in a sense means, ‘Equity’ is long term ‘safe’
- Perhaps FD is long term risky and short term safe. Let us find out and get ourselves educated
- If someone is so straightforward in accepting that they are ‘short term’ risky, it clearly means that they are trustworthy.
‘They’ could be the advisor who propagates the ‘short term’ risky message or it could also be the category if it starts to appropriate this kind positioning through communication and educational campaigns.