What is the most important thing when forming a product need?

Working with those who know you is simple. You need to show this audience, who needs a specific product or service, the right advertising message. They are already familiar with your company and are ready to buy what you offer.

Currently, targeting and search advertising are the best methods for this task. For example, a customer searches for Ford and receives different offers to buy it, as well as options with additional services. Targeted marketing promotion allows for maximum return on investment and business success.

Advertising messages should contain compact and simple advantages, like prices and discounts. For example, Uber can inform that a taxi will arrive in 5 minutes, indicating the time on the locator. This message highlights the speed of arrival and offers different comfort levels, giving the opportunity to save or feel like a VIP. Additionally, an advertising message about the price increase due to high demand can also be provided.

Creating Product Demand

To create demand for a product, a lot of effort is needed, not so much to convince people but to understand them.

This task is related to human habits, prejudices, lifestyle, and how they spend their free time. This is much more complicated. We reach this point when we exhaust the potential of the target audience. We have to teach people and show them how they can improve to break that barrier.

The impact on human preferences is measured through surveys. Extracting a person's true attitude towards something that interests you is an art in itself. Metrics, spontaneous knowledge, first mention, attributes, second sales, conversions, and ROI all help evaluate effectiveness.

For effective communication, it is necessary to conduct research to determine which audience and on what topic is being addressed, as well as through which channel. Tools such as simulations, landing pages, qualitative and quantitative tests, and emotion analysis can be used for this.

It is necessary to start with the fact that people simply may not know about you. For them, things can be absolutely incomprehensible. They may never have thought about it or think differently.

Even if people know about you, they may think you are too expensive or inconvenient. Don't forget that people have things to do and are not obligated to be interested in you.

To understand what people think of your product and your competitors' products, marketers conduct both quantitative and qualitative research. Consumer behavior, their relationship with the product, and the satisfaction of their needs can also be investigated. This allows us to find the most effective ways to create product demand. Using the data obtained, psychological techniques can be applied to create product demand among the target audience. For example, competitions, games, and chatbots can be used. In advertising messages, it is necessary to provide RTB (Reason to Believe).

To get people to buy or use your product, it is necessary to build awareness. If you are a best seller or number one in your field, you can confidently announce it in an advertising campaign; this will sell you. People often rely on their habits or the experience of others. For this, metrics are needed so that they can compare your product with others.

You need to build awareness of your strengths that are important to people: price, quality, and features. Sometimes invented strengths may appeal to the team but are not necessary for people.

How to Act and How Not to Make Mistakes

In general, everything is relatively simple. After conducting research and understanding the needs of potential customers, select a metric and start optimizing it and tracking the trend.

For example, if we are at the bottom of the marketing funnel the audience we are targeting already knows about our existence and is ready to try our product, but has not yet bought or used it.

The main metrics that should grow are direct and indirect sales. We also evaluate ROI and compare CAC and LTV. For example, Apple sells the iPhone, which represents clear metrics. But there are others, such as the free MacOS operating system, which does not earn directly from users. However, thanks to it, they buy MacBooks, iPhones, and Apple Watches, as all this creates a unique user experience and stimulates device sales. Therefore, we compare two numbers: CAC and LTV.

One of the advantages of digital is the ability to accurately measure the LTV (Lifetime Value) of the user not only at the end of an advertising campaign but throughout the entire time. This allows calculating the main long-term business metric ROI. Additionally, digital allows tracking the effectiveness of the communication campaign in the long term. This can yield unexpected results. For example, initially failed campaigns can generate more money in the future. Digital can also provide additional information about the target audience and advertising messages.

The digital platform can provide us with a lot of data. It is important to collect and structure it well. Then we can split the data into cohorts and analyze their dynamics over time. This will allow us to assess how much we have improved or worsened in performing certain tasks. Cohort analysis is one of the most important tools, as forming different cohorts will help avoid erroneous conclusions.

Result

When improving a product or attracting new consumers, it is important to understand which metric we are optimizing, what goals we are setting, and how to measure them. In other words, what tools we will use to evaluate whether the result was achieved or not.

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