What is the secret to a Fortune 500 brand’s success? Brands fail not because they lose market share, but because they lose competitive differentiation and profits. The conventional definition of a brand’s value in the provider-driven market used to be the price that the brand could command over a generic competitor. In today’s consumer-driven market, the power of the brand seems to have become separated from its origins: the ability to create and sustain a long-term flow of profit by making people want to buy the product or service, and be willing to pay a higher price for it.
This shift has caused sales and marketing teams to become fixated on driving sales without regard for profitability. We are no longer living in the provider-driven market of decades past, where the company held the power and the information, and could use that to sway the consumer toward purchasing. I can’t think of one industry today that is not impacted by the consumer-driven market that exists. Consumers now hold the power with more access to information, they are the ones driving the purchasing decision, and the providers are now at the mercy of the decisions they make.