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Demand generation is the focus of targeted marketing programs to drive awareness and interest in a company's products and/or services. [1] Commonly used in business-to-business, business-to-government, or longer business-to-consumer sales cycles, demand generation involves multiple areas of marketing and is really the marriage of marketing programs coupled with a structured sales process. [2]
There are multiple components of a stepped demand generation process that vary based on the size and complexity of a sale. These components include, among other things: building awareness, positioning relevance, supporting validation and mitigating customer evaluation. Useful demand generation methodologies include AIDA (attract Attention, maintain Interest, create Desire, get Action), developed by E. St. Elmo Lewis, an American advertising advocate.
Demand generation is a holistic approach to marketing and sales cohesion within the company. [3] [4] Through various nurture campaigns and marketing approaches, demand generation efforts aim to both create a long-term relationship between a brand and a potential buyer, and at the same time gauge and develop a prospect's purchasing interest in said brand's products/services. [5] [6] Building brand or product/service awareness is a vital component in the demand generation process, and often takes a continued effort and involves multiple facets of marketing. [6]
Advanced demand generation programs typically rely on some form of proactive Lead Generation activities supported by more traditional market programs and processes. This is because demand generation programs tend to assume that prospective customers are aware that they have a need or problem, and are attempting to solve it when they search for solutions. If the prospect is unaware (consciously or, at least, subconsciously) that they have the problem, then demand generation may not be effective — thus the need for adjunct lead generation activities. [7]
The second key area of focus for a marketer focused on demand generation is ensuring that when a prospect decides to seek a vendor to provide a solution in a given solution category, they discover the vendor that the marketer serves. This is again accomplished with a variety of techniques and tools, often overlapping with the tools used for creating awareness of the category, but with a different emphasis.
Again, in this phase of the demand generation process, many approaches and tools are used and this list is only a selection of the more common approaches.
Often confused with demand generation is the lead process itself. Converting demand into sales is a totally separate task. Many companies, however, will call themselves demand generation organizations when they are really lead generating. [12]
This later phase of the buying process involves validating that a selected vendor will meet specified requirements, coming to an agreement with the vendor on costs, contract terms, support and services, and finalizing the purchase process.
This often involves coordinating the involvement of other organizational and extra-organizational resources such as sales representatives and reference clients.
The coordination of sales involvement, the selection of the right sales resource, and the timing of the involvement can be difficult to determine. The scoring, ranking, and routing of leads into sales is a sufficiently deep topic to warrant further exploration.
The involvement of sales professionals in the solution validation process involves three main aspects. These are the same whether inside sales or field sales professionals are being involved.
In order to effectively manage and optimize the required communication, response, and lead management processes outlined above, marketers focused on demand generation must become proficient at two other related disciplines
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. A period during which goods are sold for a reduced price may also be referred to as a "sale".
Salesforce management systems are information systems used in customer relationship management (CRM) marketing and management that help automate some sales and sales force management functions. They are often combined with a marketing information system, in which case they are often called CRM systems.
Database marketing is a form of direct marketing that uses databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes. The method of communication can be any addressable medium, as in direct marketing.
Affiliate marketing is a marketing arrangement in which affiliates receive a commission for each visit, signup or sale they generate for a merchant. This arrangement allows businesses to outsource part of the sales process. It is a form of performance-based marketing where the commission acts as an incentive for the affiliate; this commission is usually a percentage of the price of the product being sold, but can also be a flat rate per referral.
In marketing, lead generation is the initiation of consumer interest or inquiry into the products or services of a business. A lead is the contact information and, in some cases, demographic information of a customer who is interested in a specific product or service.
Lead management is a set of methodologies, systems, and practices designed to generate new potential business clientele, generally operated through a variety of marketing campaigns or programs. Lead management facilitates a business's connection between its outgoing consumer advertising and the responses to that advertising. These processes are designed for business-to-business and direct-to-consumer strategies. Lead management is in many cases a precursor to sales management, customer relationship management and customer experience management. This critical connectivity facilitates business profitability through the acquisition of new customers, selling to existing customers, and creating a market brand. This process has also accurately been referred to as customer acquisition management.
The following outline is provided as an overview of and topical guide to marketing:
Digital marketing is the component of marketing that uses the Internet and online-based digital technologies such as desktop computers, mobile phones, and other digital media and platforms to promote products and services. Its development during the 1990s and 2000s changed the way brands and businesses use technology for marketing. As digital platforms became increasingly incorporated into marketing plans and everyday life, and as people increasingly used digital devices instead of visiting physical shops, digital marketing campaigns have become prevalent, employing combinations of search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, content automation, campaign marketing, data-driven marketing, e-commerce marketing, social media marketing, social media optimization, e-mail direct marketing, display advertising, e-books, and optical disks and games have become commonplace. Digital marketing extends to non-Internet channels that provide digital media, such as television, mobile phones, callbacks, and on-hold mobile ringtones. The extension to non-Internet channels differentiates digital marketing from online marketing.
Presales is a process or a set of activities/sales normally carried out before a customer is acquired, though sometimes presales also extends into the period the product or service is delivered to the customer.
Post-click marketing is emerging as a practice that aims at improving sales and marketing results by focusing on website visitors when they respond to online marketing activities such as pay per click advertising, HTML e-mails, and paid searches with the objective on increasing conversion rates.
Lead scoring is a methodology used to rank prospects against a scale that represents the perceived value each lead represents to the organization. The resulting score is used to determine which leads a receiving function will engage, in order of priority.
Performance-based advertising, also known as pay for performance advertising, is a form of advertising in which the purchaser pays only when there are measurable results. Its objective is to drive a specific action, and advertisers only pay when that action, such as an acquisition or sale, is completed.
The purchase funnel, or purchasing funnel, is a consumer-focused marketing model that illustrates the theoretical customer journey toward the purchase of a good or service.
Act-On Software is a software-as-a-service product for marketing automation. The company is headquartered in Portland, Oregon and was founded in 2008, originally retailing its software exclusively through Cisco, which provided $2 million in funding.
Voice-based marketing automation (VBMA) refers to software platforms designed for marketing, sales, and support departments to measure, manage, and automate their phone conversations. Marketing departments, sales teams, and support agents use VBMA to initiate, manage, monitor, track, route, record, and report on sales and support phone conversations.
Marketing automation refers to software platforms and technologies designed for marketing departments and organizations to more effectively market on multiple channels online and automate repetitive tasks.
Social selling is the process of developing relationships as part of the sales process. Today this often takes place via social networks such as LinkedIn, Twitter, Facebook, and Pinterest, but can take place either online or offline. Examples of social selling techniques include sharing relevant content, interacting directly with potential buyers and customers, personal branding, and social listening. Social Selling is gaining popularity in a variety of industries, though it is used primarily for B2B (business-to-business) selling or highly considered consumer purchases. C2C companies have been using social selling techniques since far before the Internet existed. B2B and B2C companies are now adopting many of those techniques as they are translated to social media platforms.
Recruitment marketing refers to the inbound strategies and tactics an organization uses to find, attract, engage, and nurture talent before they apply for a job, also called the pre-applicant phase of talent acquisition. It is the practice of promoting the benefits and value of working for an employer in order to recruit talent. It is analogous in many ways to corporate marketing, and is extremely similar to employer branding except recruitment marketing relates to trackable initiatives that drive awareness, engagement and conversion of applicants versus someone's impression of working at a company. Of course others see employer branding as a subset of recruitment marketing, in addition to extending the reach and exposure of career opportunities through search engine optimization (SEO), building and nurturing candidate relationships through talent communities, and the management of messaging and advertising of talent acquisition efforts.
Lead validation is the process by which sales leads generated by internet marketing campaigns are separated from other types of conversions. Lead validation is crucial for effective internet marketing management; without it, companies can neither accurately evaluate the results of, nor efficiently improve, their SEO, PPC, display advertising, email, content marketing and social media campaigns.
Data-driven marketing is a process used by marketers to gain insights and identify trends about consumers and how they behave — what they buy, the effectiveness of ads, and how they browse. Modern solutions rely on big data strategies and collect information about consumer interactions and engagements to generate predictions about future behaviors. This kind of analysis involves understanding the data that is already present, the data that can be acquired, and how to organize, analyze, and apply that data to better marketing efforts. The intended goal is generally to enhance and personalize the customer experience. The market research allows for a comprehensive study of preferences.