Brand versus Demand: A Marketer's Dilemma

A long time debate among marketing professionals is whether to lean more heavily into brand marketing or demand generation. As a marketing leader with over 25 years in the trenches, I've witnessed and experienced firsthand this dilemma of having to choose between brand or demand due to budget limitations and pressures to provide better ROIs on marketing spend. And after many years, and many rounds of jousting between the two, one truth has emerged: the most successful marketing strategies are those that achieve a harmonious balance between building a brand and generating demand. Let me share why.

Understanding these two forces

Brand marketing is about storytelling. It's the art of connecting your brand's values, mission, and personality with your audience, building a relationship that transcends transactions. Think of the brands you love – the ones you return to, time and again, not just because they offer a product or service you need, but because they stand for something that resonates with you.

On the flip side, demand generation is the science of converting interest into action. It's data-driven, focused on measurable outcomes, and deeply concerned with the customer's journey from awareness to decision. Effective demand generation strategies ensure that when a customer is ready to make a purchase, your brand is top of mind and easy to choose.

The dance between brand and demand

While it might seem like these strategies sit at opposite ends of the spectrum, in reality, they complement each other beautifully. Brand marketing sets the stage, creating an environment of trust and engagement. Demand generation leverages this groundwork, converting the goodwill and recognition built by brand efforts into actionable leads and sales.

LinkedIn's data has shown that audiences exposed to both brand and acquisition acquisition messages on the platform are 6x more likely to convert. And I have seen first hand how this has played out in many of the marketing programs we manage for clients. When the focus is solely on demand, we do see a good traction but it starts to taper off gradually when the program is run in the long term without any investment in the brand. But once we add in the brand marketing elements, we see a boost in the demand and the effects are felt long after.

An example where this balance has played out well is at AWS. Its marketing strategy exemplifies a masterful balance between brand marketing and demand generation, employing a broad array of tactics to strengthen its brand while driving business growth.

• Its adept use of media relations ensures a widespread coverage of its innovations, customer success stories, and thought leadership across tech-focused media outlets, business publications, and major tech events.
• Coupled with its own content platforms like the AWS News Blog and the AWS Podcast, that not only educates the market on AWS's offerings but also cements its position as a thought leader in the industry.
• AWS's regular presence at major tech events and conferences provide opportunities for AWS to make strategic announcements, share insights, and engage with customers and partners in a public forum. Alongside the brand's own events like re:Invent conference, AWS has built a strong brand presence, showcasing its commitment to innovation and community engagement.
• Simultaneously, demand generation efforts, including a freemium model, certification programs, and a robust partner network, have effectively attracted and retained customers through a connected marketing ecosystem.

This strategic approach has not only solidified AWS's position as a cloud leader but has also led to significant outcomes like expanded customer bases and operational efficiencies.

The pitfalls of playing favorites

Of course not every brand has the same financial strength as AWS. And more often than not, I have seen marketers forced to make this difficult choice: where to put their marketing dollars in order to generate the most optimised ROI. However, there are downsides to choosing one over the other.

Focusing solely on demand generation can yield quick wins, but at what cost? Without the foundation of a strong brand, these efforts can become unsustainable. Customers might choose you for a one-time purchase but without a deeper connection to your brand, they have no reason to stay loyal.

Conversely, pouring all resources into brand marketing without a clear path to conversion can also lead to missed opportunities. Your audience might love your brand, but if they're not being guided towards making a purchase, that admiration won't translate into revenue.

Striking the perfect balance

Achieving the right mix of brand marketing and demand generation doesn't come with a one-size-fits-all solution. It requires a deep understanding of your business goals, market conditions, and, most importantly, your customers. Here are a few strategies I recommend:

1. Budget wisely: Allocate your marketing budget to support both long-term brand building and short-term sales objectives. Some brands use the 60/40 rules that states that your marketing budget should be allocated 60% to brand and 40% to demand. However, the right balance for you will depend on your current business needs and market dynamics.
2. Unify for synergy: Ensure your marketing and sales teams are not operating in silos but are collaborating closely to align brand and demand generation efforts to drive growth for the business.
3. Leverage technology: Use marketing technology to gather insights, measure impact, and streamline campaigns. And make sure that these data points are fed into a single source of truth so that they can help you better understand how your brand and demand strategies intersect.

When the right balance is struck, magic happens. With the many clients I have worked with, the ones who were farsighted enough to invest in both brand and demand. And were able to align their marketing programs to connect the dots from top to bottom of the funnel, making sure there was a clearly established thought leadership program as a foundation, and an efficient demand generation program to ensure that leads generated were followed up seamlessly via nurture and sales. And who were able to integrate their Martech stacks to measure outcomes and provide comprehensive insights to inform their decision-making, were the ones that showed the most uplift in terms of ROI and impact on the business.

The future is integrated

As we look to the future, the lines between brand marketing and demand generation will continue to blur. It is my hope that marketers will move beyond the dichotomy of brand versus demand, to recognize that a holistic approach that includes both is the key to long-term success. A strong brand is your most valuable asset, and demand generation is how you capitalize on that value. By embracing both, you can create a marketing ecosystem that is not only resilient but also primed for growth.

As you evaluate your current strategies, I encourage you to think about how you can bring these two worlds together for the benefit of your brand and your bottom line.

Looking to find the right balance between brand marketing and demand generation for your organisation but not sure where to start? I'm here to chat, share insights, and help you find the best path forward for your business. Reach out to me via LinkedIn or email me at [email protected].