Every field has its vernacular. Lawyers like talking about “rubrics” and “fulcrums”, doctors say things like “idiopathic” and “code brown” (yup – it’s what you think it is), and don’t get us started on politicians. Can anyone say “dollar diplomacy” and “sunset provisions”?

Well, the inbound marketing field isn’t immune from jargon – except most of the time, it’s not used to make speakers/writers feel important, but because there are some distinctions that need to be established and clarified. And one of the most important areas is in looking at the difference between demand generation vs. lead generation. 

What is Demand Generation?

As noted by HubSpot, demand generation is not an initiative or an activity, but an overall program that embraces everything that a business is doing to reach markets, promote products and features, generate buzz and mindshare, support PR goals, and re-engage current customers – ideally developing them into brand evangelists.

Because demand generation happens through various touch points (direct, web, social, email, etc.,), it’s important to understand that it’s a long-term strategy and not a short-term tactic. For example, launching a series of 6 buyer persona-targeted ebooks over the course of a year is part of a demand generation effort. Sending out an email blast or publishing a landing page isn’t (although such activities can certainly be worthwhile).

What is Lead Generation? 

Lead generation is based on three core functions.

  1. The first function of lead generation involves driving prospect interest towards products, services, brands and solutions. This engagement can be direct (i.e. reaching out to prospects through a website or social media), or it can be indirect (i.e. reaching out to prospects via influencers and third party thought leaders). What’s more, there is typically very little – if any – overt selling involved. Most of the conversation is focused on sharing information, providing advice, building credibility, and delivering value at a pre-sales level.
  2. The second function of lead generation uses content and other tools to filter prospects into those that are qualified, and those that aren’t. Qualified prospects are individuals and businesses that are legitimately on the buyer’s journey (though not necessarily ready to buy). Unqualified prospects are those that aren’t yet on the buyer’s journey, and may include students doing research, folks looking for free stuff, and so on. While it’s certainly possible for unqualified prospects to graduate to qualified status, the distinction is important because businesses need to know how to best allocate their resources (whether the outreach budget is $10,000 month or $100,000 month is beside the point – wasting money is wasting money!).
  3. The third function of lead generation is to use online forms to capture information from qualified prospects, and deepening the relationship through targeted campaigns that can include everything from emails and ebooks, to phone calls and video/in-person meetings. Tying together prospect data (gleaned from forms) with behavioral data (where prospects are coming from, what they’re doing, what day/time they’re on a website, etc.) creates a profile that marketing and sales teams can use to nurture the relationship – and ultimately drive sales and profits.

Demand Generation vs. Lead Generation – it’s not Either/Or

While understanding the difference between demand generation vs. lead generation is important (and not just so you can ensure that your inbound marketing agency or consulting firm knows what the heck they’re talking about!), we don’t want to send the message that it’s an either/or thing.

That’s because there needs to be a close, constant alignment between demand generation and lead generation – because they either support each other, or they undermine each other. In other words, a brilliant lead generation strategy will be sideswiped by a poorly developed (or perhaps non-existent demand generation) strategy, and vice versa. They each have their own pail and shovel, but they definitely play in the same sandbox.

Learn More

For more information on demand generation vs. lead generation, and all other aspects of running a successful and profitable inbound marketing program, contact Leap Clixx today. Your consultation with us is free. 

Learn more about lead generation and inbound marketing with our FREE downloadable eBook “A Guide to Inbound Marketing Best Practices“:

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