Demand Generation Marketing | 4 mins read

What to Know About Demand Generation Marketing

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Hanh Truong

By Hanh Truong

Introduction to Demand Generation Marketing

Innovative marketing practices are constantly being introduced in today's business world. One activity that companies across the globe are partaking in is demand generation marketing. This marketing effort helps brands attract customers from each stage in the buyer's journey. Organizations looking to attracting leads, boosting brand value, and increasing sales, should consider adopting demand generation tactics.

What is Demand Generation Marketing?

Demand generation is a marketing practice that focuses on promoting awareness of a brand to directly generate more revenue. Also known as demand gen, this activity refers to all marketing efforts used to engage with customers throughout their buyer's journey. With these means, demand gen marketers target leads and convert them into sales.

Data is the foundation of all demand generation strategies. This ensures entrepreneurs are making informed decisions for attracting and retaining customers. Some of the most common demand gen marketing strategies include the following.

  • Increase website traffic - Brands will boost the number of website visitors by having promotions, using search engine optimization (SEO) best practices, and building backlinks.
  • Blogging or content marketing - Companies will often have a blog section on their websites where employees and guest writers create articles related to the business, products, or services.
  • Social media engagement and marketing - According to statistics, 3.9 billion people use social media worldwide. Modern businesses will leverage their social media platforms to market to a wide range of audiences.
  • Email marketing - Companies will have teams to create newsletters and promotional emails to send to customers.

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Importance of Demand Generation

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Demand generation is becoming increasingly important for marketing teams because it is effective in generating revenue. This type of marketing effort focuses on being relevant and influential. As seen with common strategies and their emphasis on social media and digital marketing, demand gen marketers are trying to stay in tune with modern tools and consumer preferences. This allows brands to effectively engage with customers, align themselves to their audience, and gain widespread exposure.

Marketing with demand gen also emphasizes the practice of explaining why customers need to invest in a product or service to remedy a challenge they are facing. Through this, brands can pose as the solution to whatever issue the prospect is experiencing. This strategy will help companies appear as the most accessible and the right choice for customers. For example, a SoCal restaurant marketing team can use SEO tools to boost their website on the first page of a search engine when people look for best places to eat in LA.

Challenges of Demand Generation to Look Out For

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Before implementing a demand generation-driven marketing team, business owners should be aware of the various challenges they may face with this marketing technique. Understanding these obstacles will allow for better strategy and risk management. The most common challenges include the following.

  • Business Website is Not Attracting Traffic
A key demand generation strategy is maximizing brand awareness and website traffic. This ensures people know about a product or service, which in turn increases the likelihood they become a customer. However, if the company's website is not attracting users, then it will fall short in customer acquisition. In this case, the marketing team must reassess their brand identity, SEO tools, and social media strategy.

  • Lack of Consumer Base Knowledge
If the marketing team does not understand who their target audience is, they will not be effective in attracting them. In turn, it will be harder to retain customers and upsell products and services. Therefore, the company must do comprehensive market research and ensure advertising efforts align with customers' preferences and needs.

  • Prospects Are Not Becoming Customers
If the brand is having a difficult time converting leads into customers, it is time to evaluate the customer journey. It is important to look at why shoppers are unsatisfied or disinterested and make improvements promptly.

  • Low Customer Retention Rates
While the focus of most demand gen efforts is typically focused on customer acquisition, retention is highly important as well. Marketing managers should establish strategies aimed at existing clients.

  • There are No Measurable Insights
Demand generation strategies are most effective when it is backed by data and technology. Companies need to know exactly how much they are falling short, what percentage of their tactics work, and the amount of revenue they are accumulating. To gain access to measurable insights, companies should invest in analytics software designed for marketing and sales.

Key Takeaways to Demand Generation Marketing

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  • Demand generation marketing is a data-driven effort to promote brand awareness and profit generation.
  • This innovative marketing effort focuses on the buyer's journey and entails social media, content, and email campaigns.
  • Creating a demand generation campaign is becoming increasingly popular because it ensures brands stay relevant and influential in peoples' lives.
  • Some challenges demand gen marketers should be aware of include low website traffic, customer retention, and conversion rates.

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