The Law of Leadership
It is better to be first in the mind than it is to be better in the marketplace.
The easy way to get into a person's mind is to be first. The first person, the first product, the first company to occupy the position in the mind is going to be awfully hard to dislodge. When you trace the history of how leadership positions were established — from Hershey in chocolate to Hertz in rent-a-cars — the common thread is not marketing skill or product innovation, but seizing the initiative before the competitor has a chance to get established. In a mental contest, the odds favor the first product to get into the mind. The first brand in becomes perceived as the 'real thing,' and every follower is perceived as an imitation. Being first gives you an enormous advantage because the mind tends to stick with what it already has — changing minds in an overcommunicated society is extremely difficult. Leaders should use their short-term flexibility to assure a stable long-term future. Every product that gets into the mind first is perceived by the customer as the original and authentic option.
- It is better to be first than it is to be better — this is the most powerful positioning idea
- The first brand in the mind gets twice the long-term market share of the No. 2 brand
- Every product that gets into the mind first is perceived as the real thing; followers are imitations
- You do not have to be first in the marketplace to win — you have to be first in the mind
- Establishing leadership depends on luck, timing, and a willingness to pour it on while the situation is still fluid
- If you cannot be first in a category, set up a new category you can be first in
- The leader usually poured in the marketing money while the situation was still fluid — hesitation kills first-mover advantage
- Identify or Create a Category You Can Be First InIf you cannot be first in an existing category, find or create a new category where you can be first. The key is to find an empty ladder in the prospect's mind — a category that no brand currently owns. This can be a new product type, a new attribute, a new price point, or a new use case.Pro tipYou do not have to invent a new product to be first. You can be first in a new subcategory, a new geography, a new customer segment, or a new distribution channel. Benson & Hedges was not the first 100mm cigarette in the marketplace (Pall Mall Gold was), but it was the first in the mind.WarningIf your proposed position calls for a head-to-head approach against a marketing leader, forget it. It is better to go around an obstacle rather than over it.
- Seize the Initiative Before Competitors Establish ThemselvesSpeed matters enormously. The marketing leader 'got there firstest with the mostest.' When you see an open position, move aggressively to claim it. Pour in marketing investment while the situation is still fluid, before competitors can establish themselves.Pro tipHistory shows that leaders who hesitated or waited to see if the market would develop lost their opportunity. The window to establish first-mover advantage is often brief.WarningMany companies wait for market validation before committing resources. By then, someone else has claimed the position in the mind. You cannot be first by being cautious.
- Defend the Leadership PositionOnce you are first, use multi-brand strategy rather than line extension to cover new segments. Block competitive moves by introducing new brands to fill emerging niches. The leader should act like a leader — speak for the industry, set standards, and reinforce the perception of leadership.Pro tipThe leader's best strategy is to reinforce the original concept. Coca-Cola's 'The Real Thing' capitalizes on the tendency of prospects to put the first product on a pedestal. Being perceived as the original is perhaps the most powerful position in marketing.WarningLeaders most often lose their position by trying to be all things to all people, line-extending their brand, or failing to take competitive threats seriously when they are small.
Hertz was first in rent-a-cars, Coca-Cola was first in cola, and IBM was first in mainframe computers. In each case, being first in the mind — not necessarily first in the marketplace or best in product quality — established an enduring leadership position that competitors spent decades and billions of dollars failing to dislodge.
Pall Mall Gold was actually the first 100mm cigarette in the marketplace, but the company used its existing Pall Mall brand name — a classic line extension. Benson & Hedges, with its own dedicated name, became the first 100mm cigarette in the prospect's mind instead.
Ries and Trout observed a consistent pattern across industries: the brand that gets into the mind first almost always maintains leadership. They asked people simple questions — Who was the first person to fly the Atlantic solo? Everyone knew Lindbergh. Who was the second? Almost nobody knew. This pattern repeated across every category, from computers (IBM) to copiers (Xerox) to cola (Coca-Cola), demonstrating that mental primacy, not product superiority, determines market leadership.