Circumventing The Law Of Line Extension

Continuing our discussion on the book 22 Immutable Laws Of Marketing by Al Ries and Jack Trout which I’m reading at the moment, I had some interesting thoughts when I came across the Law Of Line Extension and how it’s applying to internet business today.

Definition

The Law of Line Extension basically says:

“Don’t try to be all things to all people; companies that overextend themselves consistently lose market share”

That means that when you introduce a new product into your product line, you’ll experience a burst of sales of both products. Your original product will peak and begin a low unrecoverable decline to a smaller market share (or death). The book gives multiple examples that while a little dated (the book was written in the 90s) illustrate the example.

The New Phenomenon

The phenomenon I’ve noticed lately is that companies are trying to circumvent this by giving new products on their product line their very own website and marketing it separately.

Additionally, lots of bloggers and internet marketers are starting to come around to the idea too. Making their new information products almost appear as seperate from them in the consumer’s mind.

It’s like its attributed to the same person or business, but not really related directly. It has it’s own name, it’s own location, and usually serves a unique purpose separate from the business’ other products.

I think this is a really smart strategy and would be something I would consider myself when launching a new product – be it informational, a service or a physical product.

Final Thoughts

People always end up trying to be all things to all people. A strategy that has failure written all over it.

I’ve almost finished the book now and I’ve already been highly recommending it to my friend and family. Something I don’t usually do lightly with business books since I read so many of them.

I recommend you pick up your copy of 22 Immutable Laws Of Marketing today. It’s only thin, and it’s definitely worth taking the time to read and absorb.

In the interest of full disclosure, if you do buy the book from the above Amazon link, I’ll get a small commission. Not enough for a Big Mac, but it should be enough for a soft serve cone

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