The Growing Power of Consumers and Brand

Digital Marketing - Study Notes:

Shift in balance of power

In recent years, the balance of power between the consumer and producers, retailers, and brands has shifted in favor of the consumer. The modern consumer has many different purchase options and it’s easier for them to identify companies that cater to their functional needs, ethical needs, and price needs than ever before. As a result, markets are now demand-led.

Underlying factors 

Various factors have caused the balance of power to shift toward the consumer. 

The Internet, along with the explosive growth of mobile devices and social media platforms in recent years, is a huge factor. The Internet provides consumers with easy and constant access to information. As a result, consumers can carry out research into brands and products 24/7, at any time and in any place. 

In addition, consumers are increasingly using ad-blocking tools to block out traditional marketing broadcasts and advertisements. Millions of devices now have ad blockers installed and 42.7% of Internet users worldwide report using them. This provides huge challenges for marketers.
 
According to research, the top five reasons of using ad blocker are:

•      There are too many ads on the internet.
•      Too many ads are annoying or irrelevant.
•      Ads are too intrusive.
•      Ads take up too much space.
•      Ads sometimes contain viruses or bugs.

Finally, many consumers simply prefer to use self-service models that are independent of retailers and producers and put them in control when it comes to product discovery and making purchase decisions.

Changing ways consumers engage with brands

The way consumers engage with organizations and brands has changed as a result of digital channels and the wide-ranging information they make available. 

Consumers can quickly and easily research products and their alternatives online. They can use comparison websites to compare market offerings. The Internet allows them to find out more about the company behind a product and what they stand for. Review sites like Trust Pilot can affect their decision-making and purchase behavior.  

Branding

Branding shapes how consumers feel about your company, product, or service. Branding encompasses the advertising methods you choose, the content you produce, the experiences you offer customers, and the way you differentiate yourself from your competitors. 

It can involve creating brand ambassadors, communities, and influencers to spread the word about your brand and help you communicate about it. The way consumers are influenced by a brand and form perceptions about it can lead to the brand’s success or failure.