The Internet – creating the perfect market economy?

Nottingham's old market square
Nottingham's perfect market economy in the old days - if a seller sold bad product - everyone knew

I’ve written a few pieces recently about consumer power (and blogger power) and wonder whether we are reaching the position of a perfect market economy. That is the previously theoretical situation, where all the buyers having all the information to buy identical products.

When I studied economics at school the section I was most fascinated with was the perfect economy.

And I think that we’re almost there, because that’s the Internet now isn’t it?

All the buyers have all the information and almost all retailers are selling identical products.

And, as the theory of the perfect economy states, if all the buyers have all the information and the market is selling identical products, then people will always buy from the lowest price supplier. This has to be true, doesn’t it?

Well, no. they’ll buy from the one they trust the most, as long as the price is there or thereabouts.

My mate and business guru Andy Hanselman once said to me that ‘advertising is the price you pay for being mediocre’.

He’s right.

Products and services rise from mediocrity by being exceptional, by being differentiated and by being well branded.

So rather than the internet killing brands, it’s offering them the most incredible opportunity. A world at their feet, that’s theirs for the taking.

It’s the perfect market opportunity.

A version of this article was first published as The Perfect Economy and branding? on Technorati.