Demand Generation Vs Lead Generation: What's the Difference?

Update date : 20 Jan 2023 | 5 Min Read

Demand generation vs lead generation is a highly discussed topic in sales and marketing domains. Demand generation and lead generation are two of the most crucial tasks for any sales and marketing professional.

But one interesting fact is that many people often don’t have a clear idea about these two, as a result, these two terms are often used interchangeably or sometimes people consider them kind of similar which is not true!

In this blog, we will walk you through all you need to know about demand generation vs lead generation to help you target and execute them better. So, let’s get started!

What Is Demand Generation?

Demand generation is a data-driven marketing strategy with the ultimate aim of creating long-term consumer engagement. It focuses on raising awareness and interest in an organization's goods and services.

Chart Showing Covid 19 impact on lead generation activity

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Lead gathering, lead nurturing, and pipeline acceleration are all parts of demand generation. Demand generation marketing's primary objective is to create and expedite a predictable pipeline for your sales force. To progress them through the buyer's journey till they are a qualified lead is the key objective. The ideal sales pitch can then turn them into a new client.

What Is Lead Generation?

In order to turn prospects into customers, a process known as lead generation involves driving them to the company and cultivating their interest. Ads, webinars, blog articles, coupons, live events, and campaigns are a few ways to generate leads.

Infographic Image of Lead Management with 12 statistics that you should know

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Lead generation converts the interest of your target audience into a real, actionable lead. Although lead generation is a specific step in the process that calls for its own specialized talents and strategies, it may fit under the broader demand generating umbrella.

Demand Generation Vs Lead Generation: A Comparative Guide

So, what is the difference between lead generation and demand generation?

1. The Key Goal

Demand generation vs lead generation differs in a straightforward way. For instance, marketing campaigns are used in demand generation to generate interest in a product or service while the foundation of lead generation marketing is its initiatives to gather data about prospective clients and convert them into leads.

2. The End Result

By generating demand for your target audience and the new visitors and presenting them with your solutions, demand generation expands the audience. Lead generation, on the other hand, transforms your viewers into qualified leads. The two tactics are closely related, but there is a small difference between them.

3. How it Works

Another important difference in demand generation vs lead generation is - demand generation takes potential customers from identifying that they have a problem you can address to invoking their interest in your products or services.

Lead generation focuses on converting this interest into a concrete, practical outcome. For instance, whether a campaign requests contact information or not is the key distinction between a demand generation campaign and a lead generation effort.

Demand Generation Vs Lead Generation: Execution Process

1. Build Awareness

In today's cutthroat sales and marketing environment, brand awareness is essential for a steady supply of high-quality leads. However, while it may seem simple, developing brand awareness involves more than just attracting the interest of potential customers. For both demand and lead generation, this step is crucial.

2. Develop Industry Knowledge

Building industry knowledge goes hand in hand with brand recognition as a crucial component of effective demand gen vs lead gen. The brand is viewed as an authority in its sector from the very first engagement with a potential customer thanks to its industry expertise.

3. Nurture Demand/High-Quality Leads

For lead generation and lead nurturing, throughout the sales funnel, marketing teams should collaborate with sales, keeping an eye out for customer queries, issues, and attitudes. Marketing teams should stay in touch with these high-value leads until they make a purchase by offering useful material that addresses common queries, depending on how robust their resources are.

For demand generation, the process should be more focused on increasing demand as per the target.

4. Incorporate Account Based Marketing

A thorough, trustworthy understanding of the accounts and target consumers is essential to an account-based marketing approach. In order to target and nurture accounts through tailored interaction and support, ABM requires marketing and sales teams to make strategic account selections to boost lead generation. Demand generation strategies on the other hand take the same path but the target is more on brand demand, identity, and awareness.

5. Emphasize on Networking

A sharper enhanced focus on digital marketing is necessary because of the recent quick transition from in-person to virtual business contacts for demand gen vs lead gen. Increased digital contacts appear to be here to stay, even as businesses start to return to secure, demand generation vs lead generation in-person encounters with clients and employees.

Demand Generation Vs Lead Generation: Should You Combine Both?

What is the difference between demand generation and lead generation? Despite the fact that demand generation vs lead generation have many of the same end goals, they are not the same thing. If demand creation and lead generation are not done separately, you risk missing out on leads and overpaying for them.

Demand generation aims to increase interest in a company's product or service and encourage customers to make purchases from you. So, what is demand generation vs lead generation in marketing campaigns? For demand generation, the brand identity, product demand, and USPs are to be promoted. For lead generation, the focus is on collecting leads. Both are crucial as long-term strategies for any business, and keeping them separate is the best way to optimize the respective outputs.


1. What is demand generation?

A.    Demand generation is a data-driven marketing strategy with the ultimate goal of creating long-term consumer engagement. It focuses on raising awareness and interest in an organization's goods and services.

2. What is lead generation?

A.    In order to turn prospects into customers, lead generation helps drive them to the company and cultivates their interest.

3. What is demand generation vs lead generation?

A.    The brand and/or product are typically unknown when a business first starts out or introduces a new product or service. Demand generation seeks to remedy this by increasing public awareness of the new product or service. Lead generation helps collect more leads to improve sales in the future.

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Krunal Shah
Article by
Krunal Shah

Having worked on numerous challenging projects in the fields of social businesses, the automotive sector, and education, Krunal has over 10 years of expertise in the IT industry.

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