Markets are a Living Ecosystem
A market isn’t just a collection of customers, it’s a living ecosystem shaped by:
- Customer needs and desires
- Competitor activity
- Economic conditions
- Cultural context
- Regulations, media, and technology
And most importantly: it’s dynamic. Markets expand, contract, and evolve. Demand rises and falls. Preferences shift. When you’re winning, you have brand momentum.
So the challenge, and the opportunity, lies in reading these changes and acting ahead of them. You need to understand the norms well enough to meet expectations, while also knowing where to push the boundaries to create distinction. That’s the market paradox in action.
Understanding Demand: The Levers You Can Pull
If markets are where demand meets supply, then demand is what you want to shape. But shaping demand doesn’t mean breaking all the rules—it often means bending them just enough to spark interest without losing relevance. Here’s how:
1. Psychological Triggers
Demand isn’t always rational. It’s shaped by emotion, perception, and narrative. Great brands tap into:
- Aspirations (Apple, Gymshark)
- FOMO (limited editions, early access)
- Trust, credibility and beliefs (backed by evidence, social proof)
Example: Greggs’ plant-based launches—backed by cultural shifts and smart influencer seeding—drove demand far beyond their core customer base. They didn’t abandon what made them familiar (affordable, accessible food), but they stretched into a new space that felt fresh and relevant.
How to use it: Use research to identify what emotional triggers your target audience responds to, then align product messaging accordingly. Fit in with the values they hold, but stand out in how you express them.
2. Cultural Signals and Timing
Markets don’t exist in isolation. Social movements, news cycles, and memes influence purchase behaviour.
Example: Heinz tapped into food nostalgia with “Beanz on Bix” and social media reactions exploded—driving cultural engagement and short-term spikes in demand. It worked because the campaign felt both familiar and subversive.
How to use it: Monitor cultural and media trends. Tools like social listening, ethnography, and semiotics help you align with the moment—or better yet, create it. The goal? Speak the same cultural language as your audience, but with an accent that’s unmistakably yours.
3. Price, Value & Perception
Price alone doesn’t drive demand but value perception does. And value isn’t always rational.
Example: Oatly didn’t just sell oat milk – they sold a lifestyle. By focusing on identity and rebellion, they justified premium pricing in a competitive market. They positioned themselves as both an everyday staple and a statement purchase.
How to use it: Research how your audience evaluates value both functionally and emotionally. Then test messaging, bundles, and formats that emphasise what matters most to them. Deliver what’s expected, but wrap it in something unexpected.
Brand Momentum: Are You Riding the Market or Being Dragged by It?
If your market is declining and you’re doing nothing, your brand momentum will decline too unless you do something different..
Brand Momentum is your ability to move with the market or accelerate ahead of it. It’s measured by our Brand Velocity Score – a composite view of your relevance, visibility, and future preference.
To gain momentum, you need to ask:
- Is the market expanding? If not, how do we grow share or stimulate latent demand?
- Is our positioning helping us ride the wave or are we stuck in the middle?
- Are we activating the right channels to generate demand in the moment?
Strategic research here is vital. Knowing your place in the market is one thing. Knowing where the market is going—and preparing your brand to lead that direction—is something else entirely. It’s about fitting into the category conversation, while simultaneously steering it.
The Differentiation Paradox: How to Influence the Market in Your Favour
You can’t control the market. But you can play the game smarter. Here’s how to shape demand and grow and overcome the differentiation paradox: