{"id":17465,"date":"2020-11-05T07:00:16","date_gmt":"2020-11-05T13:00:16","guid":{"rendered":"https:\/\/www.marion.com\/?p=17465"},"modified":"2021-09-21T08:38:51","modified_gmt":"2021-09-21T13:38:51","slug":"what-is-demand-generation-vs-lead-generation-marketing","status":"publish","type":"post","link":"https:\/\/www.marion.com\/what-is-demand-generation-vs-lead-generation-marketing\/","title":{"rendered":"Demand Generation vs. Lead Generation in Marketing – How Are They Different?"},"content":{"rendered":"\n

Honing your product or service is a key element of running a successful business. However, contrary to Emerson\u2019s adage, simply building a better mousetrap will not cause the world to beat a path to your door.<\/p>\n

Today\u2019s world is filled with marketing noise and competition. If you have a service or product that the world will love, you must make sure they\u2019re aware of it before they can patronize your business.<\/p>\n

This demonstrates why demand and lead generation<\/strong> are critical to the success of your business, but you need to understand what they are and how they work together.<\/p>\n

Demand Gen vs. Lead Gen<\/h2>\n

It\u2019s common for performance marketers to throw terms like \u201cdemand generation,\u201d and \u201clead generation,\u201d around, even using them interchangeably. While there is a lot of overlap in the goals and tactics used within lead and demand generation, they are distinct marketing processes.<\/p>\n

It\u2019s not critical for small business marketers to delineate the two as both functions are frequently managed by one person. However, larger businesses that separate the job functions are looking for employees that have a strength in one or the other. When you use MARION as your outsourced marketing department in Texas<\/a>, we handle the details for you.<\/p>\n

We will dive deeper into the differences in demand creation vs. lead generation in this article. For now, the concepts can be differentiated using these two questions about your audience:<\/p>\n

    \n
  1. Do they know who you are?<\/li>\n
  2. Do you know who they are?<\/li>\n<\/ol>\n

    If you answer \u201cyes\u201d to question one, but \u201cno\u201d to question two \u2013 that\u2019s demand generation.<\/p>\n

    If you answer \u201cyes\u201d to both questions \u2013 that\u2019s lead generation.<\/p>\n

    You\u2019ve got a fundamental grasp on demand and lead generation already, now take a closer look at what they involve.<\/p>\n

    What Is Demand Generation Marketing?<\/h3>\n

    \"demand<\/p>\n

    Demand generation marketing is the comprehensive process of generating awareness and interest in your business\u2019s product\/service through different marketing channels. Demand gen makes up the first touchpoints that a potential customer will have with your business. However, not every person that is reached by your demand creation efforts will continue down your marketing funnel.<\/p>\n

    The chief aim of B2C and B2B demand generation is to set the stage for an individual to recognize and further engage with your business. Digital marketing KPIs<\/a> for demand gen include reach, impressions, clicks, and visits. Awareness for the sake of awareness is rarely the goal, especially for small business marketers whose budgets demand they are much more targeted in their efforts.<\/p>\n

    Some examples of demand gen include blog<\/a> and social media posts related to your product\/service or industry at large that grab the attention of your target audience. We cover more examples of demand generation<\/a> below.<\/p>\n

    Demand Generation vs. Marketing in General<\/h4>\n

    Demand generation is a subset of marketing. If you\u2019re familiar with marketing funnels, demand generation is represented by the top of the funnel, while the entire funnel is considered marketing. In short, all demand generation is marketing, but not all marketing is demand generation.<\/p>\n

    What Is Lead Generation in Marketing?<\/h3>\n

    \"demand<\/p>\n

    Lead gen is the process of attracting and stimulating the interest of your target audience to the point that they provide you with their contact information in exchange for something of value. For example, you can convert a stranger from your target audience into a lead by offering them a relevant free whitepaper or checklist in exchange for their name and email address.<\/p>\n

    Demand generation is a subset of lead generation. Demand gen grabs the initial attention of your target audience, while lead generation aims to grow that attention until contact information can be collected. The driving marketing goal<\/a> behind lead generation is to fill your business\u2019s sales pipeline so that you can further qualify and convert a lead into a paying customer.<\/p>\n

    We cover more examples of lead generation<\/a> in the section below.<\/p>\n

    Lead Generation vs. Lead Qualification<\/h4>\n

    Just because you\u2019ve generated leads for your business<\/a> through your site doesn\u2019t mean that your new contact is interested in or capable of becoming a customer. For example, someone can subscribe to your weekly blog because they love learning despite not wanting your product or service. Someone interested in what your business can offer may also not have the budget to work with you.<\/p>\n

    Lead qualification is the process of connecting with leads, either manually or through an automated system, to see if they are truly a potential customer. Once a lead is qualified, it\u2019s time to begin nurturing them toward a sale.<\/p>\n

    Lead Generation vs. Business Development<\/h4>\n

    Business development is another function that is frequently mixed up with lead generation. The most important differentiating factor about business development is that it focuses on building strategic relationships to generate customer referrals<\/strong>, whereas lead generation is more of a one-by-one approach to identifying potential customers.<\/p>\n

    Here\u2019s a situation that will help you draw the line. I used to work at a payroll software company where the marketing team and business development team were entirely separate.<\/p>\n