Demand Generation: A salesman's fantasy dressed up as the new paradigm
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"Demand generation" is the new name for "marketing." It has its roots in every salesman's fantasy. Salespeople are happiest when their product is in demand, when they're writing orders rather than having to make cold calls and trying to convince people to buy. The sweetest phrase a salesman can say to himself is, "I'm in demand!"
But "demand generation" has nothing to do with the customer's buying process. The only time "demand" can be applied to the customer's buying process is when a child is demanding something from a grownup. Picture the full-blown, in-store temper tantrum employed by the three-year-old, or the more subtle--but just as irritating--Major Sulk employed by a teenager using more "sophisticated" methods. But even in these cases, the child doing the demanding is not even the final decision-maker.
Once that same child goes out into the real world, he or she will spend the first six months racking up three year's worth of credit card debt. Then reality sinks in ("I'm broke and in debt!"), and this consumer shifts from a demanding child to a much more careful adult.
The word "demand" simply doesn't apply to adult buyers. Consumers simply have needs, not demands. "Things would be better if I had X," the consumer thinks. When he has an opportunity, he takes a look at X. He tries to decide if it's worth the money. He isn't "demanding" anything. He's just trying to improve his life.
After just a few buying experiences, consumers experience post-purchase disappointment. They shift from being the kid in the candy store to the skeptical, hesitant consumer that drives salespeople crazy.
Who owns the need?
The customer owns the need, not the salesperson. Salespeople (and marketers) cannot create a need. The need exists before the customer makes his first inquiry. Their job is to understand the need and then show how their product or service can meet the need. This is true for human salespeople and for websites.
"Demand generation" makes it sound like the company is in control of the buying process. Nothing could be further from the truth. The customer holds all the power. All it takes is a simple "Nope, not interested," and the game is over.
And, customers aren't "demanding" anything. They simply have needs. Companies can't "create demand," they can only satisfy those needs.
The sooner you start focusing on your customers' needs, and how you can meet those needs, the sooner you will start increasing your sales. "Demand generation" is just a money-wasting distraction.
"What's enchanting? A book that tells you exactly how to grow your revenue." - Guy Kawasaki, author of Enchantment: The Art of Changing Hearts, Minds, and Actions
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re: Demand Generation: A salesman's fantasy dressed up as the n
My understanding of Demand Generation may be different from yours, but I think you are setting up a straw man to knock it down. I have used the term to mean the generation of sales by the marketing and active selling efforts of a channel partner. Such a 'demand creation' partner understands outbound marketing and prospects for new business, as opposed to a 'demand fulfillment' channel partner who will convert leads that you supply to him (or that walk in the door), but will not create new leads himself.
So in my terms, Demand Generation is synonymous with qualified lead generation - identifying prospects with needs that you can meet and communicating your capability before the purchase decision is made, to create awareness, interest and desire. When selecting channel partners, it is important to know whether their strengths lie in demand creation or demand fulfillment.