Traditionally, retail was an over-the-counter activity. There was a physical counter between the buyer and the seller, and the buyer would demand what he wanted, and the shopkeeper would hand it over to him. This form of retail gave greater power to the shopkeeper, which meant that brands could practice what can be described as “push marketing”.
Most of the marketing effort would be spent in selling to the shopkeeper and then providing him sufficient incentives to sell it on to the customer. In most cases the customer didn’t have that much of a choice. She would ask for “salt”, for example, and the shopkeeper would give her the brand of salt that benefited him the most to sell.
Sometimes some brands would provide sufficient incentives to the shopkeeper to ensure that similar products from competing brands wouldn’t be stocked at all, ensuring that the customer faced a higher cost of getting those products (going to another shops) if they desired it. Occasionally, such strategies would backfire (a client with extremely strong brand preferences would eschew the shopkeeper who wouldn’t stock these brands). Mostly they worked.
The invention of the supermarket (sometime in the late 1800s, if I remember my research for my book correctly – it followed the concept of set prices) changed the dynamics a little bit. In this scenario, while the retailer continues to do the “shortlisting”, the ultimate decision is in the hands of the customer, who will pick her favourite among the brands on display.
This increases the significance of branding in the minds of the customer. The strongest incentives to retailers won’t work (unless they result in competing brands being wiped out from the shelves – but that comes with a risk) if the customer has a preference for a competing product. At best the retailer can offer these higher-incentive brands better shelf space (eye level as opposed to ankle level, for example).
However, even in traditional over-the-counter retail, branding matters to an extent when there is choice (as I had detailed in an earlier post written several years ago). This is in the instance where the shopkeeper asks the customer which brand she wants, and the customer has to make the choice “blind” without knowing what exactly is available.
I’m reminded of this issue of branding and traditional retail as I try to navigate the Alexa voice assistant. Nowadays there are two ways in which I play music using Spotify – one is the “direct method” from the phone or computer, where I search for a song, a list gets thrown up and I can select which one to play. The other is through Alexa, where I ask for a song and the assistant immediately starts playing it.
With popular songs where there exists a dominant version, using the phone and Alexa give identical results (though there are exceptions to this as well – when I ask Alexa to play Black Sabbath’s Iron Man, it plays the live version which is a bit off). However, when you are looking for songs that have multiple interpretations, you implicitly let Alexa make the decision for you, like a shopkeeper in traditional retail.
So, for example, most popular nursery rhymes have been covered by several groups. Some do the job well, singing the rhymes in the most dominant tunes, and using the most popular versions of the lyrics. Other mangle the tunes, and even the lyrics (like this Indian YouTube channel called Chuchu TV has changed the story of Jack and Jill, to give a “moral” to the story. I’m sure as a teenager you had changed the lyrics of Jack and Jill as well :P).
And in this situation you want more control over which version is played. For most songs I prefer the Little Baby Bum version, while for some others I prefer the Nursery Rhymes 123 version, but there is no “rule”. And this makes it complicate to order songs via Alexa.
More importantly, if you are a music publisher, the usage of Alexa to play on Spotify means that you might be willing to give Spotify greater incentives so that your version of a song comes up on top when a user searches for it.
And when you factor in advertising and concepts such as “paid search” into the picture, the fact that the voice assistants dictate your choices makes the situation very complicated indeed.
I wonder if there’s a good solution to this problem.