The more options there are in a given market, the more there is a need for brand to help the consumer decide. How does brand help the consumer decide? Simply put, an effective brand is created through a business focusing its efforts to have clarity with the consumer.
When a business is wanting to create a “brand” it must first accept that if you sell to everyone, you sell to no one. This forces the business to make decisions and be strategic about certain actions and investments. By doing so, it cuts excess parts of the business and shines more light on the parts it wishes to focus on.
This focus creates clarity in the business and in the eyes of the market. When the focus for the business is determined, it instantly brings clarity to not just the business, but to the potential consumers. Just as you associate certain attributes to people (Sally is funny, John is tough, Mary is smart, Will is outgoing), we do the same with businesses. Our brains want to simplify so they are constantly in search to find an easy association with a business to consolidate what it means to them. This is the starting soil for growing a brand in their mind. Note that a business should focus on an attribute and not so much singling out a service, although that is most likely to be a byproduct. This attribute/vibe then draws in the audience who will most likely purchase, enjoy, and appreciate the specific offering the business sells. Disney = family fun to sell kid-friendly IP. Starbucks = relaxing place between home and work to sell coffee, Nike = you can do it attitude to sell athletic wear to all. You get the point.
This newfound clarity allows the consumer to separate your business from the rest of the market’s white noise. They will understand the value your business brings and if they want it or not. Beyond just your business, your brand will standout from the competition because you have given your audience the opportunity to actually perceive your business a certain way and have clarity on how to remember your brand.
In the end, all markets have a natural tendency to become generalized. This creates commoditization and price wars as businesses race to be the cheapest. The best solution is to rise above the masses and standout. Give your audience the chance to notice you, understand what you’re about, and have clarity if you’re the right match for them.