In recent years, we’ve seen a growing increase in consumers’ purchasing power over various types of products, 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 sets the rules of this game now? And how can business owners prepare to gain a little more authority over sales?
The relationship of purchase and sale 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 brands was as a sign of ownership. By placing their name or symbol on an asset, such as cattle, the owner could mark their ownership. The ancient Egyptians were the first to use brands as signs of ownership at least 5,000 years ago. And that, of course, is where the word ‘brand’ comes from..
At their core, brands today serve to literally mark a type of product and declare that it belongs to a specific entity. This need arose as civilizations began to prosper, and, in this sense, everyday items began to have multiple producers, which created the need for a way to differentiate the origin of each one..
However, in the past, brands lacked the power and message they began to convey after the Industrial Revolution and the growing number of competitors for commodities and everyday products. Something more was needed than just a name that could be synonymous with quality—after all, competitors could obtain the same machinery and use the same production methods—whether through a company’s history (storytelling), its points of view, charitable activities, or other strategies..
What was once a one-time activity has become an ongoing process. Today, it’s clear that most companies seek to reach an audience that 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..
Nowadays, however, there are so many brands catering to specific market niches that customers can choose from ten, twenty, or thirty competitors, simply considering the differentiating factors that each considers important. Essentially, consumers make an assessment by comparing various factors and analyzing whether they align with their ideals..
This has led, for example, several companies to start caring more about social causes, values, social responsibility, innovation, personalization, convenience and agility, after-sales and fair pricing, entering the battlefield to try to differentiate themselves from their competitors and attract potential consumers with the intention of retaining them..
Since the beginning of the use of brands and the creation of branding, the power, or authority of the consumer, has only grown throughout technological developments, gaining more and more authority to select the desired products and, today, they have, more than ever, the power of choice..
Given this panorama, 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 buy. While previously a recognized name was enough to secure a sale, today it’s necessary to go further: understand the audience’s desires and values, establish authentic connections, and build a presence that directly speaks to their expectations..
Thus, brand authority hasn’t disappeared, but it 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..
