Taking classic Web3 projects as examples, interpreting the seven major marketing principles

Original Author: phillip_xyz, Marketing & Growth of Sei Labs

Original Compilation: Felix, PANews

Introduction: The competition among projects in various tracks of cryptocurrency is becoming increasingly fierce. To stand out as a leader, one can learn from some traditional marketing principles. The 7 immutable laws of Web3 marketing are derived from the classic theories of the most outstanding strategists in traditional marketing, Al Ries and Jack Trout. These laws have stood the test of time and remain highly valuable for today's Web3 marketing.

1. Law of Leadership: It's better to be first than to be better

The law of leadership focuses on the ability of a brand to shape consumer perception, define consumer needs, and pave the way for new market categories. It's not about being the best, but about being the first in the consumer's mind. Marketing is a battle of perceptions; whoever establishes their image in the consumer's mind first will surpass those who may objectively be better.

No matter how unique or excellent the products of later entrants are, the "first" brand usually leaves a lasting impression in consumers' minds. Once a brand fills a gap in a category, it becomes difficult for consumers to change.

Web3 Examples:

Ethereum: As the first smart contract platform, Ethereum shaped the market's view of blockchain computing and dApps. Today, despite fierce competition from other capable platforms, Ethereum still holds a dominant position in people's minds.

Metamask: Metamask may not be the fastest or smoothest, but it is the first on-chain wallet. As the first wallet launched, despite competitors offering lower transaction fees and smoother user experiences, Metamask has maintained its status as the preferred crypto wallet.

2. Law of Category: If you can't be first in a category, create a new category

Can't be first in an existing category? Then create a new category. This law emphasizes establishing a new, unique space in a broader market. In this space, your brand can become a leader rather than trying to compete with leaders in the original track.

As a Web3 marketer, you may find that the track you are in is already dominated by pioneering projects. This principle encourages you to think innovatively and create a new niche market. This approach not only allows you to avoid fierce competition but also provides an opportunity to lead and shape a new category.

Web3 Examples:

Axie Infinity: Axie Infinity dominates the "Play to Earn" space. However, new games like "StepN" have been able to carve out their own niche market, such as "Move to Earn."

Trader Joe: Trader Joe was initially a fork of SushiSwap but has now become the top DEX in the Avalanche ecosystem. Trader Joe strategically carved out a new category by developing a gamified user interface and features to dominate.

3. Law of the Mind: It's more important to be first in the mind than first in the marketplace

This law emphasizes that a brand must first penetrate the consumer's mind and then reinforce that position through repetition. The real battlefield of marketing lies in the hearts and minds of your target audience; through consistent messaging, slogans, and core brand positioning, you can shape consumer thoughts.

In the chaotic Web3 world, the ability to create a unique space in your audience's mind is invaluable. It's all about creating lasting impressions and strengthening connections with your audience. Essentially, you are not just selling products or services, but a perception, a feeling evoked by your brand.

Web3 Examples:

Solana: Despite network instability, Solana has gained widespread attention as a fast and cheap alternative to Ethereum by consistently promoting its speed and cost advantages.

DOGE: Although DOGE was not the first MEME coin, it became the top MEME coin in the minds of crypto enthusiasts due to excellent marketing, brand promotion, and a cult-like community.

4. Law of Focus: The most powerful concept in marketing is owning a word/concept in the prospect's mind

The key to this law is the power of simplicity and specificity; by narrowing the focus to a single word or concept, you can "dig deep" into the user's mind. Marketing is about manipulating the perceptions of your target audience, and success tends to favor those who solidify brand positioning rather than those who expand brand scope.

Owning a word in the prospect's mind allows you to occupy a unique space that competitors cannot easily penetrate. By focusing on a single concept, you can become an expert in your field, making it easier to be recognized and remembered.

Web3 Examples:

Phantom Wallet: Phantom Wallet focuses on the term "Solana wallet," creating a strong association for users.

1inch: 1inch has consistently focused on DEX aggregation, consciously ignoring other DeFi niche markets to solidify its position as a category leader.

5. Law of the Ladder: Your strategy depends on your market position

The law of the ladder states that your marketing strategy should be determined by your brand's position in the market. If you are the market leader, your focus should be on the entire category. If you are a challenger or follower, you should concentrate on how to differentiate yourself from higher-tier brands.

Remembering this law helps brands develop clear and effective marketing strategies. It emphasizes the importance of understanding your market position and acting accordingly.

Web3 Examples:

Tensor: Tensor strategically positions itself as a competitor to Magic Eden, focusing on professional traders to carve out a share of Magic Eden's market dominance in Solana.

LayerZero: Although LayerZero entered the cross-chain infrastructure space late, it identified current gaps and adjusted its positioning.

6. Law of Brand Extension: There is irresistible pressure to extend brand value

The law of brand extension states that excessive expansion of a brand often leads to dilution and confusion. When a brand represents everything, it ultimately represents nothing, as brands that try to cater to everyone's needs often struggle. Brands should focus on leveraging effective methods rather than assuming that having a loyal customer base will automatically lead to brand growth.

Understanding this law can help prevent your brand from falling into the trap of overextension. If a brand is considering expanding into new areas, it will dilute its brand message and confuse users. Don't easily destroy a brand that has taken a lot of time and effort to build.

Web3 Examples:

Magic Eden: After expanding beyond the Solana ecosystem, Magic Eden quickly lost its market dominance.

Uniswap: DeFi protocols like Uniswap, after successfully building a mature brand in decentralized finance, attempted to expand into NFTs but failed.

7. Law of Acceleration: Successful projects are built on trends, not fads

The law of acceleration emphasizes that successful marketing strategies are built on long-term trends rather than short-lived fads. While fads may bring profits in the short term, they do not lead to lasting benefits.

While tracking fads is important, it is crucial to recognize that fads heat up quickly and cool down just as fast. A brand's marketing strategy should be authentic and focused, rather than following every fad.

Web3 Examples:

Wonderland DAO: Wonderland DAO (TIME) is a fork of OlympusDAO (OHM) on Avalanche, which failed to maintain active trading activity after the initial hype.

Additionally, many virtual metaverse projects have made the mistake of chasing fads instead of focusing on long-term trends or providing sustainable utility.

In summary, adhering to these seven laws of Web3 marketing can help establish a lasting brand in this ever-evolving industry.