Today David Baeza, the Vice President of pretty much everything marketing-related at Citrix Online (client), stopped by to explain the growth and importance of demand generation, discovery and capture. You can catch up with David on Twitter.

Marketing has changed dramatically since the adoption of social media.  How consumers digest advertising and make buying decisions has forever been altered by the likes of Facebook, Twitter, Foursquare and LinkedIn.

I lead the Demand Generation team at my organization.  However, the teams name, as well as my title, only tell a small fraction of the story.  Demand, or the creation of it, can be broken down into three distinct, yet dependent parts:

Demand Generation

Commonly referred to as Awareness, encompasses traditional media such as Television, Radio, Print, Billboards, and so on.  These are the bullhorns of advertising.  In many cases this is a customer’s first interaction with a brand; consciously or subconsciously.  I read a lot of nonsense in pop media that suggests traditional advertising is dead.  I believe what is dead is the asynchronous nature of advertising.  It is evolving to become bidirectional.  We have social media and the broader social web to thank for the phenomenon.  Considering that the business models of Facebook and Twitter are predominantly ad based, we better hope that advertising isn’t dead.

While many people think they are immune to advertising, it’s simply not the case.  Many companies use traditional media to imprint or introduce a brand to the target market.  The introduction does not mean there is an expectation (in most cases), to buy now!  The advertising is designed to elicit an emotional response in terms of awareness or association with the product or service.  I’m speaking in generalities because there are many different approaches and theories, such as Direct Response marketing, Branded Response, Content Marketing, Branding, etc.  One of the primary objectives of Demand Generation is to have the prospect take their brand impression and move it onto web.  This is the first step toward Demand Discovery.

Demand Discovery

In this phase, an interested consumer would use the web to inquire about the product.  Such as going onto Twitter to ask about peoples experience with the brand, or engaging with the brand directly and asking questions.  They may look on Facebook or LinkedIn for more content and recommendations, or they may search on YouTube for a product demo.  They will also use the social web to seek out brand alternatives to evaluate what type of service or product best fits their needs.  During this phase customers seek out what is commonly referred to as word-of-mouth.  They are asking their friends both online and offline, about what they use and what they prefer.  During the Discovery phase the brand lets go of the conversation and hands it to the community.  Not literally, but figuratively.

This is the true test of the brands health.  If the product and the value proposition don’t delivery, you’re toast.  The brand can’t use the social web to suddenly make an inferior product sound superior.  This is also where happy customers along with not so happy customers do the marketing on behalf of the brand.  They will influence the buying decision more than any form of traditional media.

Let’s use the iPod as an example.  Everyone remembers the TV ad featuring the dancer with white ear phones playing Are You Gonna be My Girl!.  The ad could have promoted speed and ease of use, but it didn’t.  It turned a stale functional music player into a fashion brand.  In turn, it created an impression that this was more than a music player, it was a must have fashion accessory if you want to be one of the cool kids.  Their legions of fans carried the message from that point forward.  This leads to the final phase, which is Demand Capture.

Demand Capture

This is the sale.  Demand Capture, in my view, happens in one of two areas; search (Google, Bing, etc.), and direct traffic to the brand’s web site or retail store.  Frequently a prospective customer will use a search engine to navigate the web.  During this process they will be exposed to a brand via paid advertising (pay-per-click) or they will find the brand in the natural/organic rankings which leads to the web site.  The primary distinction between Discovery versus Capture, is the transaction.  The Demand is effectively captured by a search landing page and/or directly by the website.  The website can also be substituted or in conjunction with a retail outlet.

Admittedly, there is more than a little commingling between Demand Generation, Discovery and Capture.  The Demand sandwich, for lack of a better visual, now has a tasty slice of Discovery sitting in the middle.  The sandwich was bland and predictable, kind of link bologna.  Now it’s full of flavor and stacked high with choices.  I’ll take rich flavor over bland any day.  As a marketer and a consumer, I prefer choice.  I love the transfer of power and the infinite choices a customer has to aid in their buying decision.  This makes for an informed customer.

An informed customer has a higher lifetime value and is likely to become an advocate of the brand on the social web.  Another benefit is transparency.  The brand promise is clear, thus discouraging detractors or those that are not right for the product or service.  If you can prevent detractors from purchasing your product in the first place, better for them, better for your brand.

Marketing’s success does not hinge on traditional media.  The price of entry is a stellar product and an amazing customer experience.  If you have a small budget and a big dream, spend all your waking hours making it a reality.  Talk about your progress, what your creating, create a community of believers.  Those believers will turn into customers, customers become fans, fans become your marketing engine.

This is my view.  What’s yours?

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