Marketing is always evolving and changing to keep pace with changes in consumers’ behavior and in the last few years, we have seen two complementary strategies emerge: demand generation and lead generation.

Even though they might sound like the same thing, and some marketers use the terms interchangeably, they are not the same.

What’s the difference between demand generation and lead generation? It’s quite simple, really. Demand generation is the process of reaching members of your target audience and lead generation is the process of turning them into customers. The two are intricately intertwined and are both important parts of inbound marketing.

Let’s dig a little deeper into each.

What is demand generation?

Demand generation is a process to create awareness of your products or services and to generate interest in them. Its basic purpose is to cut through all the other marketing messages your target audience sees and make them aware of you.

Demand generation campaigns emphasize your brand positioning and messaging and are typically focused on a specific market, or specific need of your target audience. Most people are not ready to buy your product or service right now, or even engage with you yet, so demand generation is specifically meant to make them aware of you so that when the times comes for them to buy, you are included in their “must talk to” list.

Demand generation tactics include SEO, blogging, social media engagement, and content marketing, and is considered Top of the Funnel (TOFU) marketing, where the goal is to reach and attract as many potential customers as possible and work them through the conversion funnel.

What is lead generation?

Lead generation is the process of increasing that initial interest people have shown in your products or services and nurturing them into customers. A key part of lead generation is collecting information from your prospect like their name, company, and email address, and either handing them off to sales if they are ready to buy or placing them in a nature campaign to help them along in their purchase decision.

Lead generation tactics include campaign landing pages with calls-to-action that trade content like white papers for contact information, retargeting display ads, free product trials, coupons or discounts to encourage trial, and use of marketing automation tools to nurture your prospect in their buying journey.

Lead generation is a Middle of the Funnel (MOFU) and Bottom of the Funnel (BOFU) strategy,

How do demand generation and lead generation work together?

Demand generation and lead generation isn’t an either-or choice. Demand generation creates lead generation and even though they are two distinct processes, they work together to create a customer acquisition strategy. In fact, it requires both demand generation and lead generation for your marketing to be successful.

As mentioned, every business needs to drive awareness and create demand because not everyone is ready to buy right away and combining Top of the Funnel demand generation and Middle- and Bottom of the Funnel lead generation gives you a full funnel advantage. Having full-funnel digital, content, and traditional marketing strategies will get you even farther.

Demand generation and lead generation are complementary marketing strategies that can create a pipeline of qualified leads for your brand. DRM can support your marketing efforts with demand and lead generation activities that fill your funnel and get results. Have a challenge? We’d love to hear about it.

DRM is a full-service marketing agency that uses creativity to connect your brand to your audience and help your business grow. We were founded to do what we are passionate about: Putting creativity to work and connecting brands to their audience, connecting audiences to your company goals, and connecting your business to the success it deserves.