Demand generation has become a cornerstone of B2B marketing, yet it remains a misunderstood and often underutilised strategy. For seasoned professionals like Jesse Conflon, a digital marketing expert with over 12 years of experience, demand generation isn’t just about getting leads—it’s about building “an intense desire in your dream customer to purchase from you.” But what exactly does that mean, and how can marketers implement it effectively?
This article explores the key concepts behind demand generation, debunking common myths and highlighting its critical components: demand creation and demand capture. We’ll draw insights from Jesse’s strategies, alongside external research, to provide a tangible framework for modern marketers.
What Is Demand Generation?
Demand generation is a go-to-market strategy that combines efforts across the entire buyer journey. Unlike lead generation, which focuses on collecting contact information, demand generation aims to create and capture demand holistically.
As Jesse explains, “A holistic demand generation strategy should work across the entire buyer journey, both capturing demand from those who are ready to buy right now and creating demand for those who are not in market yet but will be someday.” This dual approach ensures that marketers aren’t just chasing the 5% of the market ready to buy but are also nurturing relationships with the remaining 95% who will eventually become customers.
The Five Stages of Awareness: A Framework for Demand Generation
At the heart of demand generation lies the “Five Stages of Awareness” framework, a funnel that maps the buyer’s journey from unawareness to a purchase decision. Each stage represents a unique mindset, requiring tailored strategies:
- Unaware: Customers don’t yet realise they have a problem.
- Problem Aware: Customers recognise the problem but aren’t aware of solutions.
- Solution Aware: Customers know solutions exist but aren’t familiar with your brand.
- Product Aware: Customers understand your product but compare it to competitors.
- Most Aware: Customers are ready to buy and need a final nudge.
Jesse highlights the importance of early-stage engagement: “The unaware and problem-aware stages are where you want to create demand. It’s about building trust and relationships in a way that makes customers realise not only that they have a need but that you’re the perfect fit to solve it.”
Demand Creation vs. Demand Capture
A balanced demand generation strategy hinges on the interplay between demand creation and demand capture. While these concepts are interconnected, their objectives and methods differ significantly.
Demand Creation: Reaching the Other 95%
Research shows that only 5% of a total market is actively looking to buy at any given time. Demand creation focuses on the other 95%: those who may not yet be aware of their problem or your solution. The goal is to build relationships and “make them feel the pain of the problem that your product solves,” says Jesse.
Key Tactics for Demand Creation:
- Educational Content: Blogs, webinars, and podcasts that address pain points.
- Social Media Engagement: Organic posts and thought leadership.
- Event Hosting: In-person or virtual events to establish your brand.
These tactics aim to build trust and establish your brand as a thought leader, ensuring that when customers eventually enter the buying stage, your solution is top of mind.
Demand Capture: Winning the In-Market Buyers
For the 5% who are in buy mode, demand capture ensures your brand stands out in a competitive field. This involves targeting customers actively searching for a solution with high-intent strategies.
Key Tactics for Demand Capture:
- Paid Campaigns: Google Ads, LinkedIn Ads, and retargeting.
- SEO Optimisation: Ensuring your website ranks for key search terms.
- Email Campaigns: Personalised outreach to drive conversions.
Jesse cautions against relying solely on demand capture: “It’s like jumping into a pool full of sharks and competing for a very small number of fish. The cost of acquisition will be extremely high.” Instead, he advocates for integrating demand creation to balance short-term gains with long-term growth.
Why Both Are Essential
Focusing only on demand capture can limit scalability. Jesse notes that of the 5% of in-market buyers, only about 20% will consider purchasing from a brand they haven’t encountered before. That means brands solely relying on capture strategies may be competing for just 0.6% of the market.
By contrast, demand creation ensures a steady pipeline of future buyers. A McKinsey report reinforces this, showing that companies investing in early-stage engagement experience 30% higher growth rates than those focusing solely on bottom-funnel tactics.
Implementing a Balanced Strategy
Here are actionable steps to integrate demand creation and capture into your strategy:
- Identify Your Ideal Customer Profile (ICP): Deeply understand your target audience’s pain points, decision-making processes, and preferred communication channels.
- Map Content to the Awareness Stages: Create specific content for each stage, ensuring alignment with customer needs.
- Leverage Paid Media Strategically: Amplify high-performing content and target key personas within your ICP.
- Foster Cross-Functional Collaboration: Align marketing with sales, product, and customer success teams to maximise impact.
Final Thoughts
Demand generation isn’t a one-time activity. As Jesse emphasises, “You have to build and maintain demand for your products over time, which requires continuous monitoring, analysis, and optimisation.”
By balancing demand creation with demand capture, marketers can build sustainable growth while staying ahead of competitors. As the B2B landscape evolves, adopting a holistic approach to demand generation will be critical to long-term success.
