In recent years, we have seen a growing increase in consumers' purchasing power over various types of products, with them becoming more selective in choosing brands that represent the desired item or commodity. Given this new market authority, is the power of companies in this relationship declining? Who defines the rules of this game now? And how can entrepreneurs prepare themselves to try to gain more control over sales?
The buying and selling relationship has been built in our society since ancient Egypt. In an article titled “A Short Story of Branding,” the author highlights that the first commercial use of trademarks was as a sign of ownership. By placing their name or symbol on an asset, such as livestock, the owner could mark their possession. The ancient Egyptians were the first to use trademarks as signs of ownership at least 5,000 years ago. And it was from there, of course, that the word 'brand' came.
In essence, brands today serve to literally mark a type of product and declare that it belongs to a specific entity. This need arose when civilizations began to prosper, and with this development, everyday items began to have multiple producers, leading to the need for a way to differentiate the origin of each one.
However, in the past, brands did not possess the strength and message they began to present after the industrial revolution and the growing number of competitors for commodities and everyday products. Something more than just a name that could be synonymous with quality was needed – after all, competitors could obtain the same machinery and use the same production methods – whether through a company story (storytelling), its points of view, charitable activities, or other strategies.
What was once a one-off activity has become an ongoing process. Today, it's clear that most companies seek to reach an audience that, incidentally, may even be the same niche for several of them; however, their strategies, values, stories, and ways of adding value to their products are different, and therefore, so are their approaches.
Currently, however, there are so many brands for specific market niches that customers can choose from ten, twenty, thirty competitors, simply considering the differentiating points that each one deems important. Basically, the consumer makes an evaluation by comparing various points and analyzing whether they align with their ideals.
This has led, for example, to several companies starting to care more about social causes, values, social responsibility, innovation, personalization, convenience and agility, after-sales service and fair pricing, entering the battlefield to try to differentiate themselves from their competitors and attract potential consumers with the intention of building customer loyalty.
Since the beginning of the use of trademarks and the creation of branding, the power, or authority, of the consumer has only grown alongside technological advancements, gaining more and more authority to select desired products and, today, possessing more than ever the power of choice.
Given this scenario, it's clear that authority in the purchasing process has shifted considerably from brands to consumers, who now play an active and discerning role in selecting what they consume. While a recognized name was once enough to guarantee a sale, today it's necessary to go further: understanding the desires and values of the audience, establishing authentic connections, and building a presence that directly addresses their expectations.
Thus, brand authority has not disappeared, but has been redistributed. Now, it needs to be constantly earned, sustained, and renewed through strategies that value not only the product, but also the experience, identification, and shared purpose with the consumer.
