In recent years, there has been a growing increase in consumers' purchasing decision power for various types of products, becoming more selective in choosing brands that represent the desired item or commodity. In light of this new market authority, is the power of companies in this relationship diminishing? Who now sets the rules of this game? And how can entrepreneurs prepare themselves to try to have a little more authority over sales?
The relationship of buying and selling has been developing 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 a good, such as cattle, the owner could mark their possession. The ancient Egyptians were the first to use marks as signs of ownership at least 5,000 years ago. And it was from there, of course, that the word 'brand' came about.
In essence, brands nowadays serve to literally mark a type of product and declare that it belongs to an entity. Such a need arose when civilizations began to prosper, and in this context, everyday items started to have multiple producers, which created the necessity for a way to differentiate the origin of each.
However, in the past, brands did not possess the strength and message they began to present after the Industrial Revolution and the increasing number of competitors for commodities and everyday products. Something more than just a name that could be synonymous with quality was necessary – after all, competitors could obtain the same machinery and use the same production methods – whether through a company story (storytelling), their viewpoints, charitable activities, or other strategies.
What was a one-time activity became a continuous process. Today, it is possible to see that most companies aim to reach an audience that, by the way, 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, their approaches are also different.
Currently, however, there are so many brands for specific market niches that customers can choose from ten, twenty, thirty competitors, only considering the differentiating points that each one finds important. Basically, the consumer makes an evaluation by comparing several points and analyzing whether they align with their ideals.
This has led, for example, to many 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 loyalty.
Since the beginning of brand usage and branding creation, the power, or authority, of the consumer has only grown throughout technological advancements, increasingly gaining authority to select desired products and, today, have more than ever, the power of choice.
In this context, it is evident that the authority in the purchasing process has shifted significantly from brands to consumers, who now play an active and discerning role in selecting what they consume. If a recognized name was enough to guarantee a sale before, today it is necessary to go further: understand the desires and values of the audience, establish authentic connections, and build a presence that directly engages with their expectations.
Thus, brand authority has not disappeared, but has been redistributed. Now, it needs to be constantly conquered, sustained, and renewed through strategies that value not only the product but also the experience, the identification, and the shared purpose with the consumer.
