Understand the key difference between Demand Generation and Lead Generation


Dec 26, 2023


17 min read

Creating demand and generating leads are two different inbound marketing strategies, especially crucial in the competitive landscape of B2B marketing SaaS companies. While lead generation gathers prospective customers’ contact information to boost sales temporarily, demand generation builds a brand’s identity and reputation for long-term success, especially in the competitive B2B SaaS sector.

You could be tempted to give priority to leads as a marketing leader in the software sector in order to impress stakeholders. The fact remains, nevertheless, that over 60% of software purchasers ultimately go with the brand they initially intended to purchase. Ignoring brand building impedes future sales and is a stupid decision.

You must carefully balance the needs of your long-term brand value and short-term results in order to get the most out of your saas marketing budget. This entails comparing and contrasting the benefits of lead generation and demand generation. To assist you in striking the ideal balance, let’s examine these subtleties in more detail.

What Is Demand Generation

To know what is demand generation we need to first understand that the demand period is a deliberate and systematic approach intended to domesticate interest in and attention toward a company’s goods and services. This multidimensional approach to advertising and marketing aims to generate buzz, grow the audience, and increase website traffic, ultimately transforming a pastime into a business.

Demand generation is really about more than just igniting an ambiguous pastime; it involves understanding target audiences and using customized strategies to entice and engage them. Imagine it aiming a massive internet screen directly at a vast ocean of potential clients, enticing them to discover what an agency can provide. And at Saffron Edge, a B2B marketing agency, we understand the difference between lead generation vs demand generation. And we would have our experts to get your brand to work on both and help your SaaS business grow. Hire SaaS marketing experts to get the best out of your demand generation campaigns. In the realm of strategic marketing, demand generation fuels widespread interest, while account-based marketing hones in on personalized engagement, combining forces to cultivate a comprehensive approach that resonates with specific target accounts. Saffron Edge has the expertise in providing demand from your potential customers via account based marketing.

Creating brand awareness is usually the first step in the demand-creation process. This first stage entails establishing a company’s brand in the market by consistently using a variety of saas marketing and advertising channels, such as content marketing, social media, and traditional advertising. Companies hope to attract attention and make a name for themselves in a congested industry by demonstrating corporate awareness and solving capacity clients’ pain points.

The demand period, crucially, transcends simple visibility. It dives into creating deep relationships with potential customers through the submission of valuable content, customized messaging, and targeted advertising. This approach does not employ a one-size-fits-all approach; rather, it involves customizing tactics to effectively appeal to certain target audience groups.

In addition, the demand generation is a continuous system that adjusts to changing saas marketing customer journey and market trends. Companies continually adjust their SaaS marketing strategy to maximize results as they gather and evaluate data on customer interactions and engagement. The ultimate objective is to lead potential clients through the sales funnel, converting their initial curiosity into actions like inquiries, trial sign-ups, or purchases.

Demand generation is essentially a dynamic and purposeful program that uses statistics and creativity to attract, engage, and turn potential consumers into devoted ones. In the competitive business environment, companies may create enduring bonds with their customers and ensure long-term fulfillment by being knowledgeable and attentive to their needs.

Demand technology supports essential components necessary for successful marketing and advertising:

1. Content on Brand Awareness: It’s critical to create material that strengthens the employer’s sense of belonging to the sector. One such instance is Microsoft Excel, whose logo has come to represent spreadsheet software. Thanks to this material, the company is strategically positioned at the forefront of consumer attention. It’s essential to explore topics that resonate with your audience, such as what is a saas company, ensuring that your brand aligns with the latest industry trends and developments.

2. Thought Leadership material: Thought management material helps set a brand apart from rivals. Brands like Deloitte, with its Insights weblog library in analytics and research, demonstrate how idea leadership material promotes credibility and distinguishes a logo by establishing knowledge and placing the employer as a trusted expert. This content not only educates but also strengthens the brand’s reputation, encouraging thought and interaction within the intended audience.

What is Lead generation?

One of the most important aspects of advertising is lead generation, which is the dynamic way that businesses find and engage potential clients. As a concrete outcome of strong demand for technology initiatives, capacity clients progress beyond simply expressing interest to being legitimate leads.

Lead generation may be compared to expertly baiting the hook with the most alluring lure, carefully selected to entice certain fish, to make a fishing analogy. Lead generation is different from more general demand generation projects because of this focused approach. The key to lead generation is acquiring crucial contact information from those who have demonstrated a sincere interest in a good or service.

The results of efforts to understand client behavior, preferences, and pain spots are successful lead generation. Groups may attract potential prospects and set up a date by effectively utilizing a variety of promotional media. Creating engaging content, conducting meaningful exchanges, and implementing calls-to-action that prompt users to provide their contact information are all part of this process.

The link between initial interest and the start of sales interactions is lead generation. It develops prospects, assisting them along the path of becoming customers while gradually broadening their scope of interest. The objective is to go above and beyond typical attention to establish a more direct and personalized connection with people who are considerably more likely to become clients.

Lead generation is, above all, an iterative and dynamic process. Businesses may continuously improve the efficiency and success of their lead generation initiatives by analyzing data on prospect interactions and adjusting strategies in light of new information. This flexibility is essential in an environment where consumer trends and market dynamics are ever-changing. To put it simply, lead generation is the deliberate and focused process of turning curiosity into prospects that may be taken further. It makes sure that the right messages reach the right audience at the right time by coordinating advertising activities with income goals. Understanding the subtleties of lead generation allows businesses to optimize their strategy and build a solid pipeline of quality leads ready to become devoted clients.
Understanding the subtleties of lead generation allows businesses to optimize their b2b saas marketing strategy and build a solid pipeline of quality leads ready to become devoted clients. Exploring the nuances between BDR and SDR roles is crucial for refining your approach and tailoring your efforts for maximum impact. The meaning of BDR (Business Development Representatives) proactively identify and qualify potential customers, laying the groundwork for successful sales interactions. On the other hand, SDRs (Sales Development Representatives) focus on engaging and nurturing leads, ensuring a smooth transition into the saas marketing funnel.

Crucial features of lead generation consist of tactical components that entice and grab prospective clients:

1. Gated information: Providing high-quality, valuable information such as eBooks, webinars, reviews, and case studies is an effective way to generate leads. Agencies encourage individuals of the target market to voluntarily provide their information in exchange for valuable insights by hiding this content behind a gate that requests contact information to gain admission.

2. Social Media Platforms:Posting content isn’t the only thing required to use social media as a lead generation tool. It involves carefully placing calls-to-action (CTAs) within engaging postings and including links to current information. Social media platforms serve as dynamic channels that draw in the target audience and point them in the direction of the next phase of the customer journey. Social media’s interactive features allow for instant communication with potential leads, which makes it an essential component of any saas marketing strategy.

Demand generation vs Lead generation


Demand Generation: Focuses mostly on the top of the sales funnel, where the objective is to attract a large audience and create a lot of awareness. This entails building industry expertise, spreading brand awareness, and bringing the company’s presence to a wider audience.

Lead generation: focuses on turning interest created by demand generation into concrete leads by moving the emphasis to the bottom of the funnel. This entails locating people who have shown a sincere interest in the good or service and getting in touch with them to continue the conversation.


Demand Generation: Seek to broaden the target market, cultivate credibility, and establish the business as the industry thought leader. The main goal is to establish an atmosphere that is responsive to the brand so that potential consumers are more likely to remember its products.

Lead Generation: Seek to get vital contact information, develop leads, and guide them through the sales funnel, ultimately converting them into qualified leads. The main goal is to drive customers from initial curiosity to a more advanced stage in the customer journey by facilitating meaningful interactions, which should ideally result in a conversion.


Credits: Hubspot

How Demand and Lead Generation Collaborate

Strong demand technologies are typically the cause of the lead era. For an advertising and marketing strategy to be comprehensive for your SaaS marketing in a startup, those strategies must work together harmoniously. Demand technology draws attention to the brand, acquaints potential customers with it, and provides an opportunity for sales and marketing staff to win them over.

Both lead and demand generation must evolve with a thorough understanding of the audience in order to create synergy. Identifying pain issues, doing in-depth research, and creating optimum buyer profiles are crucial for creating complementary strategies. Demand-generation assets set the stage for the lead generation by illuminating possibilities, boosting engagement, and igniting them to submit touch statistics.

Finding a balance between demand and lead generation

Demand period creates a brand identity and outlines the issues the company aims to resolve. An efficient call-for-generation approach generates curiosity, facilitates communication with the target market, and provides leads to the advertising team.

As a more focused approach, lead generation entails guiding those leads through the sales funnel in order to achieve conversions. Clearly defined income movements are necessary to establish links and direct potentialities through various funnel degrees. A successful saas marketing mix should start with demand generation, build thought leadership, and then move to guiding technology for long-term connections with buyers.

Tools for Effective Demand and Lead Generation: Adobe Marketo Engage

The use of cutting-edge machinery is required to successfully synchronise the lead and demand generation. One such solution is Adobe Marketo Engage, a formidable tool that uses artificial intelligence to communicate with clients at every stage of the sales process.

With its smooth integration with several advertising and marketing workflows, this cutting-edge platform goes beyond traditional tools for marketing and advertising. It thrives at establishing unified and personalised encounters with their clients, which builds trusting bonds. What makes Adobe Marketo Engage unique is its ability to effectively nurture prospects—helping them navigate the complexities of the customer journey and turning them into devoted, long-term clients—in addition to generating leads.

Adobe Marketo Engage guarantees that advertising efforts are both highly concentrated and adaptable by utilising its exceptional artificial intelligence capabilities. This flexibility is essential given the dynamic nature of the marketplace and the always changing behaviour of customers. This platform’s extensive feature set makes it a vital component for agencies seeking to create a continuous cycle of demand and lead generation, ultimately driving a long-term boom in business activity.

B2B Demand Generation: What Is It?

A complete marketing strategy known as “B2B Demand generation” aims to increase awareness and interest in a company’s goods and services among business-to-business (B2B) consumers. In contrast to lead generation, which focuses on immediate conversion, demand generation functions at the highest point of the sales funnel. The main goal is to educate prospective clients about the difficulties they may encounter and how a SaaS marketing agency like Saffron Edge can help them overcome those difficulties.
Demand generation in the B2B environment refers to using various strategies to establish enterprise thought leadership, build brand recognition, and engage a broad target audience. Content material advertising, social media outreach, webinars, and corporate event involvement are a few examples of these initiatives. Through cultivating a profound comprehension of the problems their products solve, B2B organizations may establish the groundwork for effective lead generation strategies downstream in the sales funnel.

Demand generation Strategy

Demand generation techniques comprise a range of tactics designed to appeal to a wide range of potential customers. The key component of such tactics is the deliberate introduction of content that provides insightful scholarly materials addressing the issues the target market is facing. This resource includes podcasts, weblog posts, webinars, whitepapers, and information in many codecs.

Social media sites and networking events operate hand in hand as essential channels for expanding reach to a larger target audience. Establishing authority, fostering consensus, and improving logo recognition within the industry are the main goals. Website traffic, social media reach, and regular brand display are important indicators for assessing the request for technology fulfilment. These measurable metrics provide information on the efficacy of call-for-generation initiatives, showing how appropriately a organization is resonating with and capturing the eye of its intended audience.

B2B lead generation

Demand for technology activities foster first degrees of awareness, and B2B lead generation is a focused and strategic portion that follows. After potential consumers demonstrate an interest, firms focus on converting those prospects into viable leads by obtaining their contact information. Offering valuable resources behind a digital gate, like as ebooks, whitepapers, or exclusive access to webinars, is typically used to encourage this shift.

When compared to a more comprehensive demand creation strategy, the B2B lead generation is more transactional. Its main objective is to identify people or organisations that have a high likelihood of becoming clients, setting up a more direct and personalised relationship. Key overall performance signs for measuring the fulfillment of lead generation tasks encompass assessing the quantity and first-rate of leads, conversion quotes from leads to customers, and the cost incurred consistent with generated lead. These metrics provide treasured insights into the effectiveness of the lead generation method and its effect on the overall sales funnel.

Lead Generation Strategies

Lead generation tactics are specific initiatives created to draw in certain people or organizations that may be interested in a given service or good. Common tactics for engagement include the use of name-to-motion (CTA) buttons, committed touchdown pages, and lead seize paperwork. Lead generation initiatives are commonly carried out through email campaigns, paid advertising and marketing, and SaaS semantic seo.

Content created specifically for lead generation is frequently more straightforward, emphasizing the benefits of the good or service. This content is often gated, meaning users must provide contact information in order to gain access. The conversion rate of leads into clients and the overall return on investment (ROI) from these tactical sports are used to measure the success of the lead generation. This method ensures that efforts are not only effective in attracting hobby but also efficiently guiding capability customers via the journey to conversion.


Credits: Gartner


Demand generation aims to inform and raise awareness of the company’s offerings within its target audience. The goal is to spread knowledge and promote understanding in order to create a market climate that is open to new ideas.
Lead generation is to turn interested parties into responsive leads who are more likely to make a transaction. The objective is to establish a more direct and customized relationship with potential clients by going beyond generic knowledge.


Demand Generation: Places emphasis on establishing authority, credibility, and brand awareness. It seeks to create a favorable impression of the business by positioning it as a thought leader in the sector.
Lead generation: stresses standing out from rivals and highlighting certain features of the product. Here, the emphasis is on emphasizing what makes the good or service unique to pique the interest of potential customers.


Demand generation is the process of producing unrestricted, free resources, such as educational articles, to address audience inquiries. The goal is to add value without demanding a commitment right away.
Lead generation: Makes use of more graphic material and resources that are gated and need contact details. By capturing leads and facilitating a more direct follow-up, this strategic approach highlights the transactional aspect of the customer experience.

How to Make Demand Generation & Lead Generation Work Together for Your Business?

For your business plan to work as well as it can, the demand and lead generation must be in harmony. An essential component of this collaboration is understanding the client’s journey and implementing a unified approach that smoothly combines all processes. A lead scoring machine is a crucial instrument for achieving this integration as it allows the determination of the optimal moment to target leads with more personalized and compelling content. This guarantees that your marketing endeavours are not only reaching the intended audience but also attracting them at the most favorable times.

It is critical that the marketing and sales teams work together effectively. Businesses may create a seamless handover process for qualified leads by coordinating their efforts, which will make the shift from marketing duties to the income pipeline.This alignment ensures that capable clients receive consistent message and support throughout their journey, complementing average performance.

It’s important to realize that, in contrast, to lead creation, boosting demand requires excellent content strategies and distribution methods. Lead period frequently uses more direct and focused strategies, but demand generation may also make use of lower-rational channels, such as podcasts or network activities, to cast a wide net and create symbolic attention. Developing strategies to fit the specifics of each consumer journey segment guarantees a comprehensive and successful approach that draws in prospects, piques their curiosity, and turns them into devoted clients. Agencies may establish a powerful synergy that drives them towards long-term growth and fulfillment by providing the proper stability and combining these tactics with ease.

Take Your Demand Generation & Lead Generation One Step Ahead

Being ahead of the curve in the ever-evolving world of B2B marketing and advertising requires having a strategic understanding of each lead generation and demand generation. Within the marketing funnel, these complementary methods perform amazing yet related roles. Ignoring either can lead to unhappy customers, higher acquisition costs, mismatched goals, and decreased worker productivity.

Finding a delicate balance between the immediate lead technological effects and the development of long-term emblem price is the key to optimising marketing costs. Contemporary marketers recognise that those tactics are not only noteworthy but also essential components of a comprehensive approach to long-term business growth.

Advertising executives are able to make wise choices because of their deep understanding of the subtle difference between lead gen and demand gen. Businesses may successfully capture attention, develop that interest, and turn leads into devoted clients by coordinating such techniques. This integrated approach not only optimises the impact of marketing campaigns but also creates a foundation for sustained success in a competitive environment. In summary, to succeed in the business-to-business (B2B) space, one must recognize the mutually beneficial relationship between demand and lead technologies and make use of their combined strengths to create a strong and innovative advertising and marketing strategy.

In Conclusion

In conclusion, a strong and effective advertising strategy in the ever-changing world of B2B marketing depends on the symbiotic relationship between lead and demand generation. It’s crucial to comprehend the subtleties of each strategy and strike a careful balance between immediate lead generation benefits and long-term brand worth. Marketing efforts may be assured to engage the proper target market and reach them at critical periods by integrating both tactics, driven by a thorough understanding of the customer journey.

The tools and technology, such as Adobe Marketo Engage, are essential to the smooth synchronization of the demand generation and lead generation, utilizing artificial intelligence to enhance customer interactions. By employing thought management and brand awareness building, B2B demand technology sets the basis for a successful lead period downstream. Combining these tactics, supported by analytical lead generation procedures and data-driven decision-making, enables businesses to capture, develop, and turn leads into devoted clients, resulting in long-term growth and success in the cutthroat business world.

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