Wednesday, February 3, 2010

Existing Demand vs. Latent Demand - Advertising in Guelph, Kitchener, & Waterloo

Making the distinction between existing demand and latent demand is very important when creating an advertisement. Existing demand is exactly that; people that already consume your product or service, whether it is from you or a competitor. Latent demand refers to consumers that have either decided not to spend their money on the product or service or do not understand why they need it.

From a marketing point of view, making this distinction is critical in ad creation. Speaking to someone who already consumes your type of offering means that we need them to come to you instead of someone else, or come back sooner than later. This means that the message needs to cater to that purpose. An offer or sale might work, a packaged offering might be an option, and other ideas can be explored.

If the ad is aimed towards latent demand, then we need to emphasize how your product or service will benefit the potential consumer. Showing people what life would be like with your product or service, and how it solves problems that they experience. The idea here is that we need to demonstrate why they need to spend money on your offering. Whereas existing demand does not need convincing, they need persuasion to come to you and not someone else.

Making the distinction between existing demand and latent demand is very important, so be sure to take it into consideration for all of your ad campaigns.