What is Demand Generation?

If you’re busy generating leads, sooner or later you’ll come across target customers without a specific need. What do you do with them? Put them on hold? File them in the newsletter distribution list? Or maybe marketers can help out a bit and artificially increase demand? Demand Generation deals with these questions.

Need vs. Demand

Before we go into more detail about Demand Generation, let’s take ourselves back to the 1st semester of business administration for a few minutes. According to this, demand is to be understood as follows:

Need

= Need (subjectively perceived deficiency) + Desire to eliminate this deficiency + Means to eliminate the deficiency

Example:

Customers enter a fashion boutique again and again without a specific need. Do they actually need another top? A good salesperson immediately recognizes how to “heat up” customers, i.e., grow their needs.

But the need is not enough. Customers only buy if they have the necessary small change. Only then does demand arise.

Demand

Demand = Need + Purchasing Power

Demand in B2B marketing

If you offer expensive products that require explanation, it’s best not to wait until customers contact you with a specific request. Because by the time they do, they may already be in contact with a competitor. Ergo: Even leads without a concrete demand have value for your company.

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