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.

The 4 P's of Marketing are out, the 4 C's are in.

4 C’s of Marketing.

Anyone who has ever taken a marketing course would know of the 4 P's of marketing...
Product, Place, Price, and Promotion. These four aspects were created in order to simplify how to sell a product or service. And for years it worked well, but times have changed and so have consumers.

Below is the 4 C's of Marketing and how they relate to the 4 P's.

1. Customer Value (Product) –
'Product' was based on what the seller offered, 'Customer Value' refers to how the product benefits from the buyer's point of view.

2. Cost to Customer (Price)–
'Price' was based on the price of the product or service, how it related to competition and cost, 'Cost to Consumer' refers to every and any cost incurred during the procurement of the product/service (shipping, time to get to the store, parking, gas, etc)

3. Convenience for the buyer (Place) –
'Place' referred to the location of where something would be sold, 'Convenience for the Buyer' refers to how easy it is to find information and purchase. With e-commerce available, catalog sales, delivery services, some businesses (like amazon.com) barely need a store or 'place' at all.

4. Communication (Promotion) –
'Promotion' referred to how one would tell a market about a product/service, 'Communication' is a dialog, a two way communication. Market research, social media, and formalized customer feedback gives businesses a chance to listen to their customers and begin to try and better understand their needs.

The idea here is that businesses have shifted or are shifting to a much more consumer focused orientation in order to maintain a viable business model and market products and services successfully. So, I ask you... do you know what your customers want? Have you asked them? or even better, do you give them a chance to tell you?