“A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is.” – Scott D. Cook
According to the Cambridge dictionary, consumer brand is a product that is well-known and that is bought by individuals rather than by companies. Amidst rapid business competition, having a solid consumer brand can effectively help more people aware of your products or services, thus making them more popular amongst the public. Consumer brand is also one of the fastest ways to publicise your product from word-of-mouth by consumers, making it an efficient booster in marketing. However, interestingly, some studies cited that consumer brand is popular amongst small enterprises rather than big enterprises, especially in the digital market.
Then a question pops-up, why don’t big enterprises maximise their consumer brand to get more consumers? The answer is not because they don’t want, but more because they have to deal with several challenges in building a consumer brand.
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A survey in 2015 by Juan Sampere found that big companies are struggling their way out in the online market. This happens due to established firms that are still doing traditional channels while newcomers dominate the virtual market. The new digital market, Sampere wrote, set up leaders to struggle to compete with their entrepreneurial rivals. CEOs from big firms are aware of the problems that hinder them from doing consumer brand. The problem includes traditional marketing method they adopt to advertise their products such as making ads on TV or billboard. And when big firms create a new product or service to compete, it doesn’t add value to consumer. That said, the process big companies use to adopt a response becomes their own disruptive unites – and it will take time to overcome it. So, with this disruption, it will benefit more for small enterprises to leverage their business and compete with big enterprises in the online market.
Then, a further survey carried out by David Kirkpatrick in 2017 found that among reasons why big companies struggle in the digital market is because they face a variety of challenges where small- and medium-sized businesses (SMEs) do not. The challenges include internal issues, dynamic media approached, and pressure to stay up-to-date in a quickly evolving space. While traditional campaigns with big budgets are affordable only by large enterprises, in a tech-savvy consumer age, a digital campaign such as in web media or social media is preferred rather than traditional ones.
Digital marketing also brings consumer brand closer than traditional marketing. Consumers today are much more comfortable trying new brands they discover online. This points out that consumers are ready to turn their buying needs to smaller companies that are thoughtful about their products and closer to their consumers. They see that digital marketing provided by SMEs are more preferred and seen to be more reliable by consumers.
Furthermore, a new survey by Alan Treadgold agreed that SMEs are benefited more in the digital market. However, the big enterprises are not only competing with SMEs in the digital market, but with retailers also. “As we as competing with the mass retailers that host them, major brand owners are also being put under pressure on margins by these very same retailers,” said Treadgold. Additionally, shoppers who want to shop for different products in very different ways are also the main challenges for retailers and traditional brands. Therefore, organisations at large, advised Treadgold, should reorganize their business around the consumer rather than retail customers. Organisations should be able to develop very different capabilities especially in data, consumer engagement, logistics, and fulfilment. There should also be a fast transform to deal with a very difficult future in the business world.
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