Demand generation vs. demand fulfillment is critical in today’s world. So just what is the difference between both these terms?
Loads Of Confusion
In the business world, there is a great deal of confusion that surrounds the terms ‘Demand Generation’ and ‘Demand Fulfillment’. Many people in the business community tend not to understand either of these terms and think of them as the same.
Worse still, when people use these terms, they tend to interchange them with one another, not knowing the real meaning of each term.
What is Demand Generation?
In marketing, as you are probably already aware, there are many disciplines. One such is known as demand generation. The focus of this marketing division lies on the changes in the behaviors of customers. Demand generation attempts to get customers interested in the products or services of a company.
For instance, let us say there is an IT company, who plans to launch brand new software. So, this company would have its demand generation process, of doing all that it can, to make people aware of their upcoming product, getting them interested in it and convincing them to buy it.
Demand Generation Tactic Examples
White paper creation for the embracement of new technology and to assess business readiness.
Sending direct emails to customers, informing them about the launch of a new product shortly.
Running a massive advertising campaign, Traditional Marketing and Social Media are some platforms used for Demand Generation.
What Is Demand Fulfillment?
This is a part of the functionality of the business operations of a company. In this process, that particular business operations department in the organization would ensure that when the customer has purchased the recently launched product, it becomes available to the customer, via the respective channel, through which the consumer had placed the order for the product.
Returning to the example of the IT company which plans to launch a brand new software. As a result of demand fulfillment, the company will ensure that when the customer has placed the order for the newly launched product, it will be delivered to the customer.
Search engines are the most commonly used platform for Demand Fulfillment.
Just What Does It All Mean?
For any company to grow in today’s highly competitive business environ, the company needs to employ tactics that include both demand creation, as well as demand fulfillment.
You need to be able to come up with a smart product or service, to be able to stand apart from your competitors. And once you have got that step right, you need to have an excellent marketing and advertising strategy in place then. You need to be consistent with your tactics and your advertising messages, with your target audience, so that these are reflective of both demand generation and also demand fulfillment.
Two Types Of Potential Customers
Every smart company of today, recognizes the fact that they need to be able to reach out to 2 kinds of audiences and these are:
Potential customers who are very well aware of the fact that they have a need or a problem. These customers are constantly looking out for ways to satisfy that need that they have or solve the problem they have.
The second type of customer is the one who is not yet on the lookout to satisfy the need that they have, and neither are they looking at finding a solution to the problem they have.
As it is impossible to reach both types of these customers with the same type of tactics, we have what is known as ‘Demand Generation’ and ‘Demand Fulfillment.’
To Put It Simply
Demand generation is all about creating an interest in the product or service that company is about to launch. On the other hand, demand fulfillment is all about the delivery of the product, to customers who have paid for it.