IBMR, IPS ACADEMY

MBA III SEM (A)

ADVERTISING & BRAND MANAGEMENT

ASSIGNMENT

SUBMITTED BY SUBMITTED TO
DIPALI VERMA MR. ARPAN SHRIVASTWA

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Demand creation
Demand creation is the process of increasing the demand for a
product or service using marketing techniques. The term is
typically applied to unsought products that have
little demand because it's they are unknown to customers.

The difference between demand

generation and demand creation
Often in marketing circles these two phrases are used
interchangeably or even together as “lead/demand generation.”
They are, however, two very different things and must be viewed,
approached, and measured differently.
Demand Creation is just that – creating demand for something
where either none exists or you don’t know if it exists and need to
test to find out. This is often necessary if you are launching a new
product or service, entering a new market where you don’t know
if demand exists, or if there is no awareness of who you are as a
brand so you must create the awareness to tap the demand that
may or may not be there.
Sounds expensive, right? It is. And time consuming. Demand
creation as part of a go-to-market strategy requires patience and
buy in among key executives who truly understand you are in a
phase focused on stimulating demand vs. generating qualified
sales leads. The leads will come but you have to lay the
foundation around “why” they need to do something about it.
You are essentially trying to stimulate a market to understand
they need a product or service (and they need it from you) so
marketing efforts are heavy on problem identification, education
on what to do about that problem, thought leadership, and the
return on investment from doing something about it.
Demand Creation measurements eventually line up with more
traditional lead generation ones but need to initially include
elements around media coverage, thought leadership, and subject
matter expertise. You know more about the problem than your
prospects so be sure to include this thought leadership advantage
in the success calculation and understand that Presence to Market
is your objective.
Through demand creation you are trying to push your product or
service into the market with an objective to eventually getting the
market to pull it from you and moving from demand creation to
lead generation.
Lead Generation is more about harvesting the demand that exists
through marketing programs and campaigns. In this case,
demand for your product or service is part of the market dynamic
and you are merely trying to reach and convert those who have
the need. The goal is to get people to raise their hand that they
have a need and are interested in you addressing it – thus the
sales cycle begins. The primary objective in lead generation is
Presence to Decision Makers meaning getting to the right person
at the right time with the right message.
Measurements here are focused on cost per lead, cost of customer
acquisition, and customer lifetime value. You can’t take your foot
off the accelerator of building market awareness and stimulating
demand but demand is not an obstacle to lead generation in a
“pull” scenario. You can generate leads because there is
demand. If there is no demand, it will be very difficult to
generate leads because you will be spending time on educating,
informing, and demonstrating vs. selling and implementation.
Not properly understanding your market dynamic as a “push” or
“pull” scenario can lead to frustration and mis-aligned
expectations in the business, so knowing whether you are creating
demand or generating leads as a foundational piece of your go-to-
market thinking is critical.
Advertising's Effects on Demand

Advertising is an effective way to build brand awareness and to

tell consumers about the benefits of your product or service.
Creating targeted advertising campaigns can help businesses
increase demand for their offerings. However, if an advertising
campaign is unsuccessful, it can also reduce the demand for the
products or services. It’s important to understand how
advertising works and the ways it can change the demand for your
product.

Understanding Advertising and Promotion

Advertising is a fundamental aspect of marketing. It involves
paying for a promotional space to encourage consumers to
purchase a product or service. There are several goals for
advertising, and they depend on where the advertising takes place
and who it is targeting.
Like most promotional vehicles, advertising is most successful
when it is targets a specific segment of an audience. Businesses
can segment their audience in a number of ways,
including demographic characteristics such as age, gender and
income or behavioral characteristics such as purchasing history
and social causes. Understanding Advertising and Promotion
Advertising is a fundamental aspect of marketing. It involves
paying for a promotional space to encourage consumers to
purchase a product or service. There are several goals for
advertising, and they depend on where the advertising takes place
and who it is targeting.
Like most promotional vehicles, advertising is most successful
when it is targets a specific segment of an audience. Businesses
can segment their audience in a number of ways,
including demographic characteristics such as age, gender and
income or behavioral characteristics such as purchasing history
and social causes.

Understanding Consumer Demand

Demand is an economic principle that involves a

consumer’s readiness to pay a certain price for a specific product of
service. Aside from price, there are many factors that affect
demand, such as weather, consumer confidence, brand
popularity and supply or inventory.
For example, the weather or season plays a role in creating
demand for certain types of products. In the summer, there is
a greater demand for bathing suits than in the winter. During
Christmas, there is a greater demand for Christmas trees than in
the summer.
Supply is closely connected to demand, as well. Demand usually
increases when there is limited supply for a particular product or
service. The exclusivity of a product can entice consumers to want
it more. In some cases, the increase in price for a product actually
increases the demand, such as for luxury cars or high-end jewelry.
In most cases, however, lowering the price of a product increases
demand.

Effects of Advertising on Consumer Demand

Advertising plays an important role in increasing and
decreasing demand for a product or service. It’s a way to engage
consumers and educate them about the business, product or
service and results. If the advertising is targeting the audience
segment correctly, then the effects on demand will likely be
positive. However, if the advertising misses the mark, the effects
on the business can be devastating. Advertising can affect both the
demand for a particular product or service, and the demand
within a particular audience segment

Increasing Demand for a Product or Service

In order to increase demand for a particular product of service,

it’s important to create messaging that outlines the problem
consumers are facing, and offer the product as the solution. This
kind of persuasive advertising influences demand by setting the
product apart from competitors and educating consumers about
the results they will achieve.
For example, if a small business is selling children’s backpacks,
the best time to increase demand for the product may be in the
late summer before schools reopen. Parents and children are
likely shopping for school supplies during this time, so they are
more likely to pay attention to school-related messages.
To increase demand, the business needs to show consumers why
their backpacks are better than any other backpacks on the
market. If they are more durable, for example, this may be a key
selling point for parents who do not want to have to purchase
multiple backpacks if one rips. The small business can increase
demand for their product by carefully selecting the timing and
venue for advertising, and setting themselves apart from the
competition.

Increasing Demand Within an Audience Segment

Another way to increase demand is to target a particular

audience segment through advertising. The effects of
advertisement on consumer demand are linked to brand
awareness and brand loyalty. If an audience segment doesn’t
know about the product or service, they have no way of affecting
the demand. That’s why it’s important for businesses
to understand their consumers and target them effectively.
Advertising aimed at creating consumer awareness for a product
needs to carefully consider who the audience segments are. There
are often multiple audience segments for a specific product. Those
different segments may have different needs and problems, but
the same product may fill those needs and solve those problems.
For example, while the main target audience for the small
business that sells backpacks are parents and their school-aged
kids, they may also have a secondary audience of new moms who
use the backpacks as diaper bags. To increase demand for that
particular audience segment, the small business could advertise in
local online mommy groups or hand out flyers at mom and tot
activity classes. This way, they can raise brand awareness and
build demand in a new audience segment.

7 Marketing Tips To Create A

Demand For Your New Product

1. Product Scarcity
Scarcity is often used to bolster sales, but it can also be used to create massive
brand lift. It plays on the customer’s fear of missing out. Marketers use
limited-time offers like daily deals, limitations on quantities, or one-time only
promotions to create a sense of urgency and leverage scarcity.

Promoting “out of stock” items is another effective approach to developing

product scarcity, as it shows potential customers that your product was so
popular that your inventory is temporarily depleted. This strategy has
been leveraged by a number of manufacturers in recent years:

 Amazon Fire TVs ran out of stock just a week after launch

 Nintendo shorted the production of the Wii game console

 Apple delayed shipping by two weeks or more on the iPhone 5

just minutes after it launched

You could shrug it off as a supply and demand issue, but these companies
certainly didn’t refuse the heightened media coverage and consumer demand
that resulted from supply shortages.

2. Information Scarcity
If you really understand your target audience, then you already know what
will get their attention. If you leak just enough information before launch, you
can generate tremendous buzz as your audience searches everywhere for
more information.

In 2013, Hello Games announced No Man’s Sky, which was marketed as a

revolutionary new game unlike anything seen before. Leading up to its release
in 2016, Hello Games director Sean Murray teased out small tidbits of game
footage and information. As press coverage and word-of-mouth grew, No
Man’s Sky quickly became one of the most hyped and heavily-discussed games
in years.

3. Leverage User-Generated Content

Sometimes creating demand for a product is as simple as letting your
customers sell the experience for you. There’s no better example than GoPro.
The company doesn’t have to put in much effort to market the brand other
than leveraging content created by customers actively using their products.
Rather than relying on expensive marketing campaigns, GoPro instead lets
their customers’ experiences do the talking and selling.

You can take the same approach to user-generated content by promoting your
good reviews, highlighting your best customers, and using images and video of
real customers using your products across your social channels.

4. Make It Exclusive
People generally want something more when they can’t have it. They demand
to know why they can’t have it, what factor excludes them, and how they can
possibly get access to it. Exclusivity plays on the scarcity mindset and fears of
missing out, except there are plenty of products to go around.

In an article for Forbes, Siimon Reynolds shared a story about a friend’s trip
to Paris, where he visited a luxury watch dealer, Patek Philippe. In the store,
his friend discovered a single watch in a glass display case with the price tag of
$1 million.

“In order to buy this watch you must write to the CEO of Patek Philippe and
tell him why you deserve it,” said Reynolds, founder of Photon Group. “Can
you believe that? They have the gall to charge a million for a watch and then
you have to pass a test to see if you are worthy of it? Amazing.”

That’s enough to make some want that watch, but it also goes a step beyond
that specific watch. The exclusivity of that single piece elevates the perceived
value of every other watch sold by Patek Philippe.

5. Focus on the Biggest Problem

Once you’ve identified a major issue facing an audience and you know your
product is the perfect fit, you can then take the market by storm with a
comprehensive content marketing strategy. Find how they’re currently
searching for solutions and develop a your strategy based on those searches.

This is something we do for clients at my content marketing agency. We

research the audience’s biggest issues, create a ton of useful content, then
distribute and promote it extensively across every channel where the audience
might be.

To ramp up your strategy, create a high-value offer that is completely free for
anyone interested in it. This offer should consist of your best work that gives
away information that is both relevant and helpful for your audience. While it
might initially seem counterintuitive, educating your audience with high-value
content can help you generate a lot of buzz around your brand and featured
product.

“Firstly, it creates a sense of trust between your audience and your brand,
which means they’re more likely to come back to your content or your
website,” writes content marketer Dan Shewan. “Secondly, it reflects well on
your brand – so much so that enthusiastic prospects may take things one step
further and advocate for your brand on your behalf, becoming the elusive
‘brand ambassadors’ companies are always talking about.”
A key benefit to this approach is that you’ll capture their attention with the
value in your free content. Once you pique their interest, you can draw the
connection to your solution. Rather than selling and promoting the product
and its features, concentrate on selling the experience and solution.

6. Partner with Rockstars

Influencers hold a lot of sway over their followers. Their audience respects
them, trusts their ideas and opinions, and are willingly persuaded by their
interactions and content. When you’re launching a new product,
incorporating influencers into your marketing strategy can really give your
product the boost it needs to get off the ground.

Find influencers in your market who are most relevant to your audience and
connect with them to promote your upcoming product launch. Lyfe Kitchen
went this route by working with influencers in the sports, health, fitness, and
fashion worlds, as well as influential moms, to promote their new food
products. The influencer promotions helped them expand from 400 to 1,400
stores in a matter of months.

7. Constantly Innovate
The first version of your product might’ve been revolutionary for your
industry or market, but don’t stop there. That first launch was just a first
strike on the indifference of the market. After launching the original version
of your product, immediately switch your focus to improving on it with the
help of customer feedback. Figure out how you can make it better and
complete it faster, then launch a new version to capture more of your
audience.

This is what Amazon did when it launched the first Kindle reading device.
Every version since the initial launch has added functionality, more content,
and more affordable price points. In addition to innovating products that
supercharge demand with each new version, Amazon also sells the lifestyle
benefit to its target audience: enjoying the best of your favorite books, shows,
movies, and mobile games, no matter where you are.

THANK YOU