In The 22 Immutable Laws of Marketing, Al Ries and Jack Trout introduce a simple but powerful idea: the marketing ladder. Picture a ladder inside your customer’s mind, with each rung representing a brand in a specific category. The higher you are, the more likely you are to be remembered — and chosen.
This metaphor illustrates the hierarchy of brand awareness. Every industry has leaders, challengers, and newcomers, and customers mentally rank them whether they realize it or not. Your position on this ladder directly affects how your brand is perceived and how much market share you can realistically expect to earn.
Why the Top Rung Matters
The goal of marketing is to be the first brand that comes to mind when someone thinks of your category. That top spot is a fortress. But there’s good news: even if you’re not #1, you can still climb.
Take the classic example of Avis, the car rental company. Their famous campaign — “Avis is only No. 2 in rent-a-cars. Why go with us? We try harder.” — didn’t pretend they were #1. Instead, they leaned into their position and turned it into a strength. That honesty and positioning won them attention and market share. It wasn’t necessarily better service that made the difference — it was smarter marketing that aligned with customer perception.
How the Ladder Works
Here’s a rule of thumb:
- The brand above you usually has twice the market share,
- And the one below has half.
So while people may group the top three brands together, the actual difference between them can be massive. And typically, only 7 brands can fit on a ladder in any customer’s mind before things get fuzzy or forgotten.
This is why understanding your position is essential. It helps you clarify:
- Who the leader is
- What perception your brand currently owns
- And how much room you have to grow
Tall Ladder or Short Ladder?
Not all ladders are created equal. Some categories have a long list of competing brands (think: soft drinks), while others might only have a few (like luxury watches).
It’s worth asking:
Are you a big player on a small ladder — or a small player on a big one?
Either can be a winning strategy if you know how to play your position.
Final Thought: Choose the Right Ladder
Before you pour more time and money into marketing, step back and ask:
Are we even on the right ladder?
It’s much easier to climb when you’re in the right category, speaking to the right customer, with the right message.
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