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Lead Generation vs. Demand Generation

Justin Steinle

A business administration, management, and marketing graduate of the University of Mary, Justin Steinle has amassed over 25 years of experience in the development and promotion of business enterprises. Justin Steinle draws on advanced knowledge of topics such as lead generation and demand lifecycle management to reach new audiences via various media channels.

Although marketing and sales professionals often use the two terms interchangeably, lead generation and demand generation are distinct concepts that require separate strategic consideration. While lead generation focuses on reaching new audiences to directly drive business growth, demand-generation efforts are generally more concerned with establishing a recognizable brand identity.

Lead generation involves transforming customer interest into new revenue. As technology empowers consumers to conduct more of their research on products and services independently, sales professionals are more often tasked with making the most of a prospect’s existing interest rather than reaching out to uninformed consumers. Many digital lead-generation strategies require prospective customers to share contact information with a company in order to receive more information, thus setting up the foundation of a formal sales relationship.

Successful lead generation requires companies to have a recognizable brand identity, while demand generation involves creating the momentum necessary to establish this brand power. Demand-generation strategies also typically focus on driving public understanding of a company’s offerings. For this reason, they often encompass inbound marketing tactics that share engaging content via channels such as e-mail lists or social media.


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