The Demand Drivers.

VOL. 0034 – FLORIDA, MONDAY, OCT 2, 2023

Juan F. Arjona Harry

President & CEO Strategee

In understanding the mechanism by which demand is satisfied, it is vital to understand that the demand is generated from what is called "The demand drivers", so that the company and its CMO can:

1. Identify the creation of demand for its category.

2. Understanding when the category is slowing in demand.

3. When it is necessary to accelerate innovation processes.

4. On which one(s) of the driver(s) act, to impact demand properly.

5. On which one(s) of the driver(s) work, to accelerate Value for Money of the value proposition.

6. On which one(s) of the driver(s) work, to aid the construction of Brand Equity.

7. On which one(s) of the driver(s) react to actions of competitors.

8. On which one(s) of the driver(s) work, in order to stimulate primary demand.

9. On which one(s) of the driver(s) work, in order to stimulate selective demand.

Within the value generation process (a process which must create a strategy for a brand) understanding the drivers of demand provides a useful perspective to the CMO who wants to build on solid ground demand generation for the category / product.

Within this perspective, the brand / company can find areas of work in shaping the value (also in enhancing delivery or reinforcing the perceived value of the end user) which provide more profitable pathways of development or more powerful Brand Equity, than simply acting on some of the pillars of selective demand only.

The selective or primary demand, is formed from the following eight (8) drivers thereof which are generators of a market. They are:

1. Units of consumption.

2. The rate of consumption per unit of consumption.

3. Chances of use or consumption.

4. The frequency of purchase.

5. The purchase occasions.

6. The volume purchased per purchase occasion.

7. The rate of the first equipment.

8. The replacement rate.

In order to grow a category by primary demand growth is vital to identify for each driver of demand, what the current position is, so that CMO’s can act intelligently on it, making moves on the zone of demand generation, pushing through these drivers.

Similarly, the mechanics of competitive action may fill its strategic tactics package arising from each of the drivers of demand, acting intelligently on the generator (sometimes impacting primary demand, sometimes impacting selectively demand) but still markedly increasing the value delivered by a brand to its consumer group. It is much smarter to think of how to act on a strategy that is based on the value delivered to the final consumer, not the generation of strategies for stumbling competitors in a market.