"Find your difference and use it as a benefit to your customer," Trout said. "Make sure your message makes sense and that you have the credentials to back up your claim of being different - and communicate your difference!"

Trout, who began his career in the advertising department of General Electric before moving on to Uniroyal and joining Al Ries in an advertising agency, mapped out some strategies for competitive marketing.

Jack Trout discusses marketing strategies with AirTime 500 members.

Familiar Case Studies

He talked about Gillette, the maker of razor blades. He said Gillette was constantly attacking itself to improve the company's market position.

Trout noted Gillette kept changing razor blade models, which was done to promote its next generation of razors while undermining its current models. One of the company's strategies was to fend off competition from Bic, which had introduced a new disposable razor.

"They [Gillette] didn't want to make disposables but they wanted to block Bic and become the market leader with their Good News disposables," he said. "They were successful, although they didn't make any money on the razor blades."

Trout said that leaders, like Gillette, may have a weakness, which could be exploited by a competitor. He cited the example of a bottled water maker who owned the largest share of its market but whose water had high sodium content. Its competitor decided to attack this fact by advertising that its product was low sodium.

"Create a point of superiority by simply using what you have," he suggested.

He said that some market leaders get away from what makes them successful by trying to do too much, moving away from a niche market. He used the Volkswagen example.

For many years Volkswagen captured a significant share of the compact car market with its only model, the Beetle. But Volkswagen abandoned its strategy of being different by offering other larger models. Now they were competing with car companies that featured similar models. Their market share and sales declined.

It was only when the company reintroduced a new Beetle in the late 90s that the downward sales trends were reversed and Volkswagen enjoyed an uptick in sales.

"You have to eventually become one thing," Trout said. "You can't sell everything to everybody."

He also gave the example of Marlboro cigarettes, whose symbol was a rough-and-tough cowboy. Marlboro decided to introduce "mediums," menthols, and "ultra-lights" to the market. These new brands were confusing to consumers because Marlboro cowboys are only associated with the original brand.

"You can't keep changing who you are," he said. "If you move with the marketplace you change who you are."

Trout used White Castle as an example of a business that has done very little to change its products for decades and still has remained successful. He summed up his presentation by telling contractors to: