1. Companies Have To Focus on Multiple Marketing Channels

Before the invention of social media, brands used to advertise their products only on mass media platforms such as newspapers, televisions, radios, hoardings, or posters. These were the only popular modes of spreading the voice of a brand, and not every business can afford it.

However, after the penetration of the internet and the introduction of social media platforms like Facebook, Instagram, and LinkedIn, brands now have to segregate their budgets for them as well. As a result, now a brand manager has to run campaigns on these channels and measure the results of each campaign. This has led to complicated marketing practices and brand strategies.

2. Cut Throat Competition

As mentioned earlier, due to the relaxation of trade policies in different countries, consumers nowadays have more choices available in the market both online and offline. This leads to cut-throat competition among brands in the same niche, and an international brand either has to make its product extraordinary or lower its prices.

Another reason for the rising rivalry among brands is that the cost of advertisements is reduced and is made accessible to everyone. For instance, previously the main marketing channels were TV, newspaper, etc. and they were also very expensive as one has to hire a celebrity and then pay for channels to advertise but in the current era, a small business can run ads on social media or on Google and attract customers. They can hire a designer to create graphics or design them themselves on software like Canva, and upload them on social media profiles, and they are good to go. Hence, the competition has shot up significantly.

3. Financial Constraints

As there are so many platforms on which the ideal customer of a business can be present and to harness each channel, the businesses have to spend more. For a large corporate brand, this is not an issue as they already are earning and have budgets allocated.

Conversely, a start-up or small business has to use these resources intelligently, as they are tight on budget and cannot burn cash like big organizations. Hence, hiring a smart brand strategist or branding company will help them to cure this issue and each penny spent on marketing of brand will generate good returns.

4. Online Shopping

COVID-19 has changed the way in which customers purchase things. More and more people preferred to buy products or look for services online. This is evident from an article published by Instamojo which clearly states that the online buying of products has increased by 25% in the last year.

Moreover, with the introduction of affordable internet services in India, e-commerce shopping is at a boom. Some brands have created their websites and started working on their search engine optimization of them so that they rank higher in search results and eventually gain more customers. On the other hand, they are also running google and social media ads to target more users.

This poses a threat to small brands, as some of the business owners are not tech-savvy or do not have the budget to enhance the organic visibility of their brand. However, they can still compete with large companies in organic results by creating Google Business Profiles, and search engines like google also show local listings upfront as compared to websites in SERPs, hence giving a competitive edge to local businesses.

5. Complex Buying Behavior

This kind of behavior is usually encountered when the customers are buying a costly product such as a home, laptop, mobile phone, etc. not at the time of purchasing a packet of chips. When the risk of purchasing a product is very high, consumers prefer the advice of family, friends, or search at Google. Another reason why complex buying decisions show up is when the product or service is unfamiliar to the person.

The brands know that before buying their products the consumer will do their complete research, so they tend to provide proper education to users through videos, audio, educational blogs, and manuals. The buying behavior of a customer depends on various factors such as income levels, season, habits, and so on.

For example, the buying needs of a rural consumer are different from those living in metro areas. This leads to a complexity in the purchasing attitude of people, and brand awareness strategists are finding it difficult to access the needs of these individuals.

Additionally, if your brand is in a niche where there are lots of alternatives available, the slightest lack of feature or difference in price forces customers to drop that buying decision.
To overcome this issue some brands are focused on increasing the perceived value of products such as Apple. These brands provide their customers with all the features and benefits that are not included in their competitor brand products or service. To exemplify, when one purchases AirPods from apple, he or she will get six months of Apple Music subscription for free. These kinds of offers are uniquely available on apple products and encourage customers to buy them.

The Bottom Line

In conclusion, branding is a complicated problem. It requires agencies, consultants, and researchers with complex formulas, data analysis, and data interpretation. Once a company successfully creates a brand identity, the process can become even more difficult. It's a delicate balance between staying relevant and staying true to the brand identity. But, companies must create these changes with consumers in mind.