In marketing, not every brand can be number one. The marketplace inside the customer’s mind is like a ladder with multiple rungs, and each rung represents a position held by a brand in a specific category. This is the core idea behind the Law of the Ladder — one of the immutable laws of marketing proposed by Al Ries and Jack Trout.
The Law of the Ladder states: “Your marketing strategy depends on which rung you occupy on the ladder in the customer’s mind.” If you’re at the top, you can focus on reinforcing your leadership. But if you’re second or third, you need a different strategy — you can’t act as if you’re number one.
For example, Hertz was the number one car rental company in the U.S. for many years. Avis, in second place, didn’t try to claim superiority. Instead, they launched the famous slogan: “We’re number two. We try harder.” This approach was not only honest but also earned customer trust and sympathy.
The Law of the Ladder emphasizes that you must acknowledge your actual position in the customer’s mind. If you’re not number one, find a way to leverage your current spot to create a unique advantage. Don’t pretend to lead — customers will sense the lack of authenticity. Instead, choose a message that fits your position and turn it into a strength.
In a market where top brands already occupy the highest rungs, understanding where you stand on the perception ladder helps you build the right strategy. Because in marketing, not everyone needs to be number one — what matters is knowing your place and using it wisely.
