Demand Generation vs Lead Generation: What’s the Difference?

As a B2B marketer, you’ve probably heard several different marketing terms. As you work more and more in marketing, you find that there are so many terms that it can get confusing, especially marketing similar jargon.

Two of the most popular terms that marketers get mixed up are “demand generation” and “lead generation.” They might sound like they’re the same thing, but they aren’t.

To learn the difference between demand generation vs lead generation, keep reading. We have everything you need to know to differentiate these terms and show your higher-ups that you know what you’re talking about.

Demand Generation vs Lead Generation

We’re not putting you on the spot but can you tell these two common marketing terms apart?

Don’t worry if you’re now second-guessing yourself it is easy to be confused by these two terms, so we have a quick easy to remember tip for you. Think of these terms in chronological order.

Lead generation follows demand generation. Therefore, demand generation happens and then lead generation happens.

In much the same way as marketing happens and then sales happen. 🙂

Demand Generation – explained

Demand generation is the set of processes that an individual or a company uses to create interest in a product or service. Simply put, it’s generating demand for a product or service. With that simple definition, it’s easy to see why the term is coined “demand generation.”

Lead Generation – explained

Lead generation is just as easy to understand. Remember it follows on after demand generation.

Social Media advertising funnel

Both terms are part of the social media advertising funnel. You can read more about this here.

Lead generation is the set of processes that an individual or a company goes through to create leads. Usually, these leads come about in phone numbers or other contact information that a business can use to follow up with a potential customer.

It makes sense that lead generation follows demand generation if you look at both definitions in this way. You cannot have leads without interest.

The Biggest Difference between Demand Generation and Lead Generation

There is one easy way to differentiate between demand generation from lead generation in action. All you have to do is look for the contact information of a potential customer’s data record.

If there’s a box asking you to input any kind of contact information, like a phone number or an email address, you’re looking at a lead generation tool. If you don’t see a section to submit contact information, it’s likely a demand generation tactic.

By asking you for your contact information, companies and individuals are looking for a way to contact you about future products and services. They’ll typically obtain contact information in exchange for something that you may want, like a free PDF or a trial of some sort.

If a company isn’t asking for your contact information, they’re simply trying to show you a product or service to build a reputation around it. Rather, they’re looking to build interest in and demand for that product or service.

Reading More

Demand generation vs lead generation is just one of the many things you – as a marketer – have to learn to succeed.

There are plenty of other advertising and marketing terms and strategies that you have to understand and master if you’re looking to get conversions and make sales.

For example, you need to know which social media platform is better for your marketing, and there is not the right answer, but there is a way to work it out. To learn more about everything else that you need to know, about marketing and sales strategies, check out the rest of our blog.