Demand Capture Vs Demand Generation
Understanding the principles of Demand Generation and Demand Capture is vital in crafting a comprehensive marketing strategy.
Considering how your product or service aligns with these categories is crucial for shaping your marketing approach. It will guide decisions on which platforms to utilise when spending time on marketing, advertising and how to effectively communicate with your audience at various stages of their customer journey.
Demand Capture
People are actively searching for your product or service.
Demand capture, means there is a need for your product or service and an audience of people actively searching for it. As a business you want to capture the interest and intent of potential customers, converting the existing demand into sales.
Marketing strategies usually include lower funnel tactics such as Google Ads, Retargeting and Email Marketing.
Examples:
Lawyers
Emergency plumbers
Home essential products that you regularly need to buy or replenish
Hairdressers
Automotive Services
Customer journey examples:
Automotive: In the event of a car breakdown, a cracked windshield, or a flat tire, people often turn to Google to find assistance. As a business in the automotive industry, it's crucial to ensure your presence is visible when and where potential customers search, maximising opportunities to attract new clients.
Hairdressers: For hairdressers and similar industries with potential for repeat bookings, email marketing can be a valuable tool. Imagine receiving a friendly email from your hairdresser around 5-6 weeks after your last appointment, offering a 10% discount for rebooking. By tapping into existing demand and capturing customer intent, email marketing becomes a powerful way to nurture client relationships and encourage repeat business.
Demand Generation
You know your product is great, but people don’t necessarily know they need it.
Demand Generation aims to generate interest and educate potential customers about the benefits of a product or service, usually to a wide audience.
Marketing strategies typically include content marketing, social media marketing (paid and organic), SEO (search engine optimisation), influencer marketing, and educational webinars.
Examples:
Educational courses
Subscription boxes
Digital marketing servcies
Innovative technology
Customer journey examples:
Courses: If you have an educational course with upcoming spaces to fill, leveraging social media can be instrumental in growing awareness and showcasing the advantages of your course to your target audience.
Technology: When introducing a new technology that's not yet on people's radar, relying solely on search won't work as potential customers aren't actively seeking it out. Therefore, content marketing strategies, social media, email, and influencer partnerships, becomes crucial for increasing awareness and gaining traction in the market.
Where does your business fit?
In essence demand capture is about fulfilling existing demand while demand generation is about creating new demand. Both are important aspects of a comprehensive marketing strategy. Recognising the distinction between the two can empower businesses to adeptly navigate the digital marketing landscape and develop marketing strategies to best reach their target audience.
How would you categorise your product or service? I’d love to hear what you think!
