Most of sales and marketing personnel’s professional lives revolve around lead generation and demand generation. Often used interchangeably these two approaches of information exchange are co-dependent but not the same.
Demand generation v Lead generation happens to be our most confusing of jargons because due to the lack of definitions, we are nebulous about their roles.
Here is a simple difference which is at the core of these two functions:
The chief function of demand generation is to create market awareness and brand recall/association. In this, content is freely given out without having to fill forms with personal details like phone, email, job title etc. Different content is to be created and spread for various levels of the buyers’ journey to successfully associate the brand with an idea and as a first step of penetrating newer markets.
Lead generation on the other hand moves further from the ‘awareness’ phase to the ‘interest phase’. Here any content disbursed in the market comes with strings attached (read: info like email, phone, job, interest etc). Any viable potential customer shall wilfully part with their information for content which is valuable and not freely available in the market. This campaign is highly dependent on successive quality, no one shall share their data or might even block companies from contacting them again.
Lead generation and Demand generation are based on easily digestible, knowledge parting content which connects with its audience instantly.
In the funnel ‘AIDA’ viz awareness, interest, desire, acquisition; Lead generation (interest) should always be following Demand generation (awareness). Any reversal in this strategy causes a less than favourable RoI situation for your marketing campaigns.