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What is Demand Generation & Why Companies Keep Fail at It?

April 18, 2024  •    •  Rista Fathika Anggrela

Demand generation marketing is about generating interest in your products. It differs from lead generation, focusing on creating awareness and showcasing the necessity of your product to generate excitement around it. Manufacturers and other vendors who sell through a network of partners use demand generation strategies to generate interest in their partner program and products with end users.

However, demand generation strategies often fail. In this article we will discuss the importance of demand generation marketing, its challenges, common mistakes that often occur and how to overcome them, and how to create an effective demand generation plan.

The Importance of Demand Generation for Business

What does demand generation mean? Demand generation is crucial for businesses as it drives interest and awareness in their products or services. And, what is demand generation in sales and marketing? It helps create a steady stream of qualified leads, ultimately leading to increased sales and revenue.

By focusing on demand generation marketing, businesses can build brand reputation, establish credibility, and differentiate themselves from competitors. Moreover, it enables companies to understand their target audience better, tailor their marketing efforts accordingly, and ultimately drive long-term customer loyalty.

In today's competitive landscape, where customers have numerous options, effective B2B demand generation strategies can make a significant difference in a business's success. So, demand generation definition is about creating demand for products or services through various marketing activities, ultimately driving sales and revenue growth.

The Challenge of Demand Generation: Many Business Fails!

Demand generation marketing can be a challenging aspect of business, and many companies struggle to get it right. One of the main reasons for this is the evolving nature of consumer behavior and expectations. With the rise of digital channels and social media, customers have more control over the information they consume, making it harder for businesses to capture their attention. 

So, what is demand generation in B2B? To succeed in B2B demand generation, adapt to new digital channels. Collaborate with partners who excel in social media to improve overall strategy and convince less skilled partners to follow suit.

Another challenge is the increasing competition in almost every industry. Companies need to find innovative ways to stand out and differentiate themselves from competitors. This requires a deep understanding of their target audience, their needs, preferences, and pain points.

Additionally, measuring the effectiveness of demand generation efforts can be complex. Many businesses struggle to track and analyze the impact of their campaigns, making it difficult to optimize their strategies for better results.

To overcome these challenges, businesses need to focus on creating valuable and relevant content, utilizing data-driven insights, and continuously refining their approach based on customer feedback and market trends.

Common Demand Generation Pitfalls and How to Avoid

What is demand generation in marketing? Demand generation marketing is a critical component of any successful marketing strategy. However, many businesses fall into common pitfalls that can hinder their efforts. Here is 7 common demand generation pitfalls and on how to avoid them:

1. Finding the Right Balance Between Product and Emotion

One common mistake businesses make is focusing too much on product features and not enough on the emotional connection with their audience. While it's important to highlight the benefits of your product, it's equally important to evoke emotion and create a personal connection.

To avoid this pitfall, strive for a balance between highlighting product features and tapping into the emotions of your audience. Use storytelling and testimonials to make your content more relatable and engaging.

2. Poor Data Handling

Another common pitfall is poor data handling. Many businesses collect data but fail to analyze it effectively or use it to drive their demand generation campaign. One effective approach is to assign a chief data officer to oversee data quality, managing data collection, storage, and analysis for accuracy, completeness, transparency, and consistency. 

Automated solutions like CRM software can streamline customer data, enhancing access and analysis. Continuous monitoring helps identify and rectify discrepancies, ensuring informed demand generation for improved business outcomes.

3. Locking Content Behind Gates

While gating content can help you capture leads, it can also be a barrier to entry for some potential customers. Many people are hesitant to provide their contact information, especially if they are not familiar with your brand.

To avoid this pitfall, consider offering some content ungated to attract a wider audience. Use gated content strategically for more in-depth resources or tools that provide significant value.

4. Measuring Success Wrongly with Leads

One of the most common pitfalls in demand generation marketing is focusing solely on the number of leads generated. While lead generation is important, it's not the only metric that matters. The main difference between demand generation and lead generation is that demand gen is focused on increasing brand awareness while lead gen aims at converting brand-aware prospects into customers.

Instead of just looking at the quantity of leads, focus on the quality. Measure metrics like lead engagement, conversion rates, and return on investment (ROI) to get a more accurate picture of your demand generation efforts' effectiveness.

5. Unclear Ideal Customer Profile

Without a clear understanding of your ideal customer profile, your demand generation efforts may not be as effective as they could be. To avoid this pitfall, take the time to develop detailed buyer personas.

Conduct research to understand your target audience's demographics, interests, pain points, and buying behaviour. Use this information to tailor your messaging and content to better resonate with your ideal customers.

6. Ignoring Account-Based Marketing

Account-based marketing (ABM) is a highly effective strategy for targeting high-value accounts and driving demand. However, many businesses overlook ABM in favor of more traditional demand generation tactics.

To effectively utilize ABM, you should:

  • Gather pertinent data.
  • Develop a focused marketing strategy to connect with decision-makers.
  • Verify lead information.
  • Consistently assess performance.

By adhering to these steps, companies can enhance their B2B marketing efforts and gain more success in targeting important accounts.

7. Prioritizing Appearances over Results

One common pitfall in demand gen marketing is prioritizing appearances over results. It's easy to get caught up in creating flashy marketing campaigns or using the latest marketing trends, but if these efforts don't drive tangible results, they are ultimately ineffective.

To succeed, focus on one channel at a time to avoid diluted efforts. Start with content marketing by posting quality blogs addressing audience needs. Then, move to email marketing with a lead magnet to collect emails for targeted content. Finally, use social media to engage and interact with your audience for better results.

So, what is demand generation marketing? It is a complex and multifaceted aspect of marketing. However, by avoiding these common pitfalls and focusing on strategies that prioritize audience engagement, data analysis, and results-driven tactics, you can create a more effective demand generation strategy that drives growth and success for your business.

Create an Effective Demand Generation Plan

Creating an effective B2B demand generation plan is essential for businesses looking to attract and retain customers. Start by defining your target audience and understanding their needs and pain points. Conduct market research to identify key trends and competitor strategies.

Next, develop a content strategy that resonates with your audience. Create valuable, engaging content that addresses their pain points and positions your brand as a trusted resource. Use a mix of formats, such as blogs, videos, and infographics, to appeal to different preferences.

Utilize digital marketing channels to reach your audience effectively. This may include social media, email marketing, search engine optimization (SEO), and pay-per-click (PPC) advertising. Measure your results regularly and adjust your strategy based on performance data.

Finally, nurture leads through personalized communication and targeted campaigns. By following these steps, you can create an effective demand generation plan that drives growth and success for your business.

Demand generation marketing is vital for companies to raise product or brand awareness, generate interest, and build customer relationships. Despite its benefits, many businesses make mistakes that can harm their business. Recognizing and rectifying these mistakes early is crucial for successful demand generation.

Get your B2B company discovered with Pipeline's account-based marketing strategy. Our tailored solutions are designed to pinpoint your ideal target market and ensure your products or services are discovered by those actively seeking them. Let us help you stand out in Indonesia's market – Get discovered today with Pipeline

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