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A traditional market scenario is in a market where a company or service is catering to consumers, that company is the only big company. The number of companies is small. Each of the companies will differentiate themselves from the other with a range of prices and people choose companies/brands with the range that suits them.
In these markets the companies can come with advanced technologies and other strategies to capture more market share. Here the size and power of the players is an important factor to be considered. Giving the best of the products based on quality, using the best of the technology etc will help a company differentiate from others. This all is possible when there is a lot of variation in sizes of the companies.
But when all the companies are quite competitive this difference doest work.
The market becomes complex when there are plenty of players who are competing against each other. At this time companies start fighting against each other to capture a large market share with lot of efforts in various fields.
In complex markets, the differences between companies are not much. The companies can not differentiate much themselves from others on the basis of quality and technology etc. factors as all the companies are competent enough.
Even a new company would try to duplicate the ideas of market giants, technology, strategies etc, thereby narrowing the differences between the market giants and them.
This scenario explains the need for differentiation for the companies.
Here advertising and branding comes as major players. Branding, is an effort to give a unique identity to the companyӳ products and create emotional associations with consumers, a form of marketing. Building a strong brand involves a series of steps as part of a Ԣranding ladderԼ/p>
The success of a company mostly depends upon the extent to which it has stretched itself in branding. The other key factor or the major factor is advertising.
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