The Law Of Sacrifice – News of the World
In 2007 I spent 3 weeks travelling America with friends. We went to Vegas, LA, Anaheim (I lost a bet and had to go to Disneyland) and Hollywood. It was a brilliant holiday and one not to be forgotten in a hurry!
As a restless traveller I decided to purchase an American book on marketing – just to see if they knew something we didn’t! I purchased three books, one of which was a book by Ries and Trout called “The 22 Immutable Laws of Marketing”.
Interestingly, this book managed to simplify marketing into 22 ‘laws’. If only I’d known that at University, I could have spent more time at the beer gardens. Anyway, the intention of this post is not to slate one of the shortest marketing books I’ve ever read but to credit one of the laws, which is apt given recent developments in the press – the News Of The World / Murdoch saga.
“The Law of Sacrifice”
The 13th law by Ries and Trout explains that by giving something up you will maximise your opportunity to gain in other ways. For example, a mortgage broker may only wish to work on sub-prime mortgages because the commissions are 3 times more lucrative than prime mortgages. By sacrificing customers with a good credit rating sub-prime mortgage brokers could focus their energy on the most profitable client.
News Of The World
Rupert and James Murdoch made a decision to close the infamous News of the World newspaper following allegations of illegal phone hacking. The News of the World was one of the best selling English-read newspapers in the world, so why would anybody close this business and not try to fight on?
It’s down to the law of sacrifice. The News of the World circulation was over 2 million newspapers annually. The News of the World, despite being a popular, well read and profitable newspaper, was only 1% of the News Corp portfolio and by sacrificing the troubled newspaper it could attempt to save the remaining News Corp brands.
It remains to be seen how other brands under the News Corp umbrella are affected by the phone hacking scandal, regardless, it is a shrewd and tactical ploy to divert attention away from brands such as SKY TV and place the blame directly towards the News of the World scandal.