[GTM glossary](/glossary.md) Demand

Marketing

# Demand

In short

Demand, in B2B go-to-market, is the existing need and intent among buyers to purchase a type of solution. It describes how many companies have the problem, recognize it, and are willing to spend to solve it.

Teams often split demand into two parts: active demand from buyers already looking, and latent demand from buyers with the problem who are not yet searching. Knowing which kind you are serving changes the plan.

## Types of demand

* **Active demand:** Buyers are researching and comparing vendors now.
* **Latent demand:** Buyers have the problem but have not named it or started looking.
* **No demand:** Buyers do not feel the problem or cannot justify the spend.

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## How to read demand in your market

### Search and category signals

Look at search volume for your category terms, review site traffic, and questions from prospects.

### Your own funnel

Inbound requests, win rates, and sales cycle length show whether the market is pulling or you are pushing.

### Intent signals

Behavior such as content consumption and job postings can show accounts that are starting to look.

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## What to do with each type

Active demand is captured with search, review presence, and fast sales response. Latent demand needs education, point of view content, and community presence so you are known when the need becomes active.

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## Example

Say a company sells a data quality tool. A small group of buyers search for it directly. A much larger group suffers from bad CRM data but calls it a sales problem. Serving only the first group caps growth.

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## Common mistakes

* **Confusing demand with leads:** A lead is one person raising a hand. Demand is the broader market need.
* **Assuming demand exists:** Test it with interviews and pilot campaigns before scaling spend.
* **Only harvesting:** Serving only active buyers limits reach over time.

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## Demand FAQs

**What is demand in B2B marketing?**

Demand is the need and willingness of buyers to purchase a type of solution. It includes active demand from buyers already researching and latent demand from buyers who have the problem but are not yet looking for a vendor.

**What is the difference between active and latent demand?**

Active demand comes from buyers who are researching and comparing vendors now. Latent demand comes from buyers who have the problem but have not recognized it or started to search. Each requires a different marketing approach.

**How do you measure market demand for a product?**

Combine search volume for category terms, inbound request trends, win rates, buyer interviews, and intent signals such as research activity. No single number is exact, so compare several sources and test with small campaigns.

**Is demand the same as a lead?**

No. A lead is an individual or account that has shown interest in your company. Demand is the broader market need for the type of solution. Many buyers with demand never become leads until they find you.

Share term

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## More related phrases

* [G2 reviews](/glossary/g2-reviews.md)
* [Buyer’s journey](/glossary/buyers-journey.md)
* [Decision stage](/glossary/decision-stage.md)

## Similar phrases

* [Demand creation](/glossary/demand-creation.md)  
Demand creation builds awareness and need among buyers who are not yet looking, using education, point of view content, and community to shape future buying decisions.
* [Demand capture](/glossary/demand-capture.md)  
Demand capture is the practice of winning buyers who are already looking for a solution, using search, review sites, and fast sales response at the moment of intent.
* [Demand generation](/glossary/demand-generation.md)  
Demand generation is the set of marketing activities that create awareness and interest in a product among target buyers, before and alongside lead capture.
* [Intent data](/glossary/intent-data.md)  
Intent data captures behavioral signals, such as research activity, content consumption, and hiring, that show an account is likely to buy soon.
* [Total addressable market (TAM)](/glossary/total-addressable-market.md)  
Total addressable market (TAM) is the total revenue available if every possible customer for your product bought it.