Lead generation and demand generation can often be mistakenly confused, whilst they have similar tools and both can be used to reach the same goal – more profit for your business.
You need to be careful when you target each of the methods.
What is the difference between demand generation and lead generation though?
Demand generation is the process from taking a prospect from no awareness of your business, product or service to the point where they are interested enough to buy what you offer.
Lead generation while using the same tools and sometimes starting from the same point is different in that it’s main objective is capture contact information so that the sale can be made directly either by a marketing automation system or by a human sales force.
So, knowing this if you are targeting different customer segments or have a different production positioning plan then you can use the method that suits the strategy better.
For example, if you are selling a enterprise software product you might start with a demand generation campaign that then evolves into lead generation to book sales demos for your staff where they can close the deal.
Or, if you are selling a fast moving consumer product then demand generation might be all that you need as the customer can make the purchase themselves the next time they have the opportunity for example when they are out shopping and the expense of trying to capture their details as lead generation might not be worthwhile.
The key to this is however having a good quality marketing strategy which will let you pick between either tactic or a combination approach depending on the target segment or the positioning strategy for your product or service.
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