If you’re wondering how demand generation for products and services works then you need to start by thinking about what your business is bringing to the market.
You’ve either got a new product or service that nobody knows exists yet or you’ve got a product or service that already exists in the market and you;re offering an alternative choice.
Start by differentiating yourself in established markets to start the demand generation process.
For products and services that already have an established market like food or clothing you need to position your product or service so that it appeals to a particular niche or market segment better than the more general choices out there.
What you’re creating demand for essentially is the product or service that fits a particular type of customer with certain beliefs, values and tastes.
Demand generation for new ideas starts by leading with the reason for change.
On the other hand when it comes to promoting a relatively new product or service, more common in the hi-tech markets, which nobody yet knows is available or even possible you need to lead with the reason first, not the product or service.
That reason could be a problem or desire of some kind which may be financially motivated, resolve an on-going pain or problem, or open up new opportunities.
An examples of a market evolving and new demand being created was with a simple piece of technology called the drill.
Before the drill even existed, people needed to make holes which they created using laborious, time consuming methods that resulted in uneven holes which were difficult to make consistently or in an even fashion.
The problem existed but nobody knew they needed a drill yet.
People understood their problem,so by entering the market and positioning yourself alongside the problem which is the reason in this case you win the opportunity to discuss the solution, a drill.
Once the drill was established the market grew and developed with lots of different types of drills and manufacturers.
Methods of demand generation
Market or marketing led companies will always outgrow sales led or delivery led firms.
If you’re looking to stimulate long term growth then a marketing led demand generation strategy should be a high priority.
Marketing can take time to get right and ramp up, although marketing online has significantly reduce the costs and time for entry for a lot of businesses.
A sales led approach on the other hand can start generating demand, albeit slowly, much more quickly as long as there is a clear understanding of who the target market is and how they can be reached. The sales proposition must also be clear and sufficient sales collateral available in order to progress opportunities.
Ideally you will do both, and evolve your marketing into a lead generation and nurturing system which will help make your sales operation more efficient and effective and bring your revenue generating business units closer together into an integrated business development system.
This has been made possible with new developing in marketing like inbound marketing.
Making the choice between product or services for demand generation.
If you’re selling a product that is complex or maybe not quite ready for market it may be easier to sell a service using the product in order to help educate the market and learn how to improve your product.
If your selling a service, then breaking it into smaller bite size chunks, such as individual products can offer prospects a simpler or lower cost option before they buy into the bigger or more complex idea.
You’ve now got some useful ideas to help with your demand generation strategy.
