Demand Generation vs Marketing: Making Informed Choices in 2023
Have you ever needed clarification when someone asks you what the difference is between Demand Generation vs Marketing? It might surprise you, but you’re not alone. Most of the time, people think it’s the same. Well, yes, it’s under the same umbrella, but the roles in Marketing vs Demand generation can shape the core of a company’s outreach and directly impact revenue streams. Making the right hiring decision, knowing when to prioritize one over the other, and understanding the potential investment (even the key differences in salary) can make all the difference in a company’s business growth.
What is Demand Generation?
At the heart of it, Demand Generation revolves around sparking interest and creating a demand for a company’s offerings, mainly focusing on top-of-the-funnel activities. This role demands a seasoned marketer, a quarterback adept at leveraging various marketing channels to their maximum potential. This comes at a cost; according to ZipRecruiter, the average annual salary of a Demand Generation Manager in the U.S. is around $101,000.
What about Marketing?
Marketing has more moving parts. It governs the entire customer journey—from educating new customers to guiding them to the purchase and ensuring they stay engaged post-purchase. Here’s an example of a marketing team that I’ve worked with in previous roles:
Email Marketing: Targeted email campaigns to engage and nurture leads.
Marketing Operations: Ensuring seamless workflows and processes. They also work with your CRM and Analytics.
Paid/Digital: Leveraging online platforms like LinkedIn, Meta, and Google.
SEO Specialists: Ranking content higher on search engines.
Product Marketing: Bringing a product to market, promoting it, and selling it to a customer.
Content Specialist: Building out content such as white papers and more.
A Deeper Look Between Demand Generation vs Marketing:
Demand Generation
Picture it as the premiere night of a much-anticipated movie. The aim? To capture the audience’s curiosity and get them in the door. Demand Generation Tactics? Blog Articles, Illustrations, Podcasts, Social Media Posts, and Infographics. These channels really depend on where your customer base hangs.
(Image Source: DigitalMarketer)
Marketing
Now, imagine the entire cinema experience. It’s about holding the viewer’s hand throughout the story. Marketing maps out the full spectrum of the customer experience, from the brand introduction to customer acquisition and retention to keeping the customer engaged with your product/service.
Metrics:
Demand Generation
When I review metrics, the selected channel plays a role. I usually consider how much website traffic we get, their engagement length, and what prospects do for early-stage activities. But this can change depending on the objectives I have for a campaign.
It’s also a key to look at CPC (Cost per click) and CPA (Cost Per Acquisition). This helps in determining if we’re reaching the right people. If it’s too high, you may need to change your marketing tactics or adjust your target audience.
Marketing
Marketing looks at growth, customer retention, people’s feelings about the brand, and generating marketing-qualified leads. A Marketing Operations Specialist can set up dashboards to make data easier to review.
Marketing should also utilize Lead Scoring to see where leads are in the buying process. Think of it as awarding points when someone opens an email, joins a demo, or grabs some content. Once they rack up enough points, it’s time for the sales team to step in.
(Image Source: Cyberclick)
Shared Aspects of Marketing and Demand Generation:
Teamwork Across the Board:
Demand Generation and Marketing must sync with sales, product development, and customer service teams to drive revenue growth and bring in a sales-qualified lead.
Why’s this a big deal?
Consistent messaging. If an ad highlights a product or service feature one way, and then a marketing and sales rep says something different, it’s confusing. We don’t want customers scratching their heads wondering what’s what.
So, when we align:
Everyone knows the company’s message loud and clear.
Our campaigns and sales pitches mesh well, boosting our chances with potential customers.
Customers who connect with our brand get the same trustworthy message.
All About the Data:
Both Marketing and Demand Generation are buddies with analytics. They use it to make decisions, check if campaigns are working, and tweak strategies. With data, we know what customers really want and how they behave. It’s like having a crystal ball that tells us which demand-generation marketing strategies to bet on and which ones to skip
Tool Utilization:
Marketing and Demand Generation have their go-to tools for SEO, Email, and Paid Advertising to catch qualified leads. As a Demand Generation Manager, I often hang out in SEMrush, Writer.com, and HubSpot.
But hey, the traditional marketing toolbelt you wear depends on your mission. Every marketer’s own marketing tactics and tech stack is as unique as their fingerprint. So, while I’ve got my favorites, you might have your own secret sauce for capturing qualified leads and bringing in paying customers.
When to Hire Marketing vs Demand Generation:
This is very important to understand. I’ve joined companies that think they need a Demand Generation Marketer only to find out that, in reality, they needed a content writer to help produce gated material and email campaigns.
Demand Generation Manager:
1. Team Size & Structure
You may benefit from a Demand Gen Manager if you have a sizable marketing team with specialists for SEO, Email Marketing, Paid Advertising, Social Media, and more. Demand Gen Managers act as the quarterback, coordinating between the various channels and ensuring everyone’s moving towards the same goal.
A Demand Gen manager is especially beneficial if your team has multiple marketers but needs a unified direction.
2. Entering New Territory
A Demand Gen Manager is crucial for creating that initial buzz when entering a new market, launching a groundbreaking product, or even starting a new campaign. They devise strategies tailored to the audience, ensuring a memorable first impression. Ideally, they’d collaborate closely with Sales, Marketing, and Product teams to fine-tune the strategy so everyone is on the same page.
3. Resource Allocation
With a larger budget, a Demand Gen Manager can optimize where dollars are spent, ensuring you get the most bang for your buck. They can oversee and adjust campaigns in real time based on performance metrics.
Marketing Managers (Specific Channel):
1. Startups & Smaller Teams
Hiring specialists for specific channels you’re keen to exploit might make more sense if you’re a startup or a business with a leaner team and budget. For instance, if SEO and content marketing are your primary focus, prioritize an SEO specialist over a Demand Gen Manager. You can even go the route of hiring a growth marketing agency to help.
2. Established Strategies
If you’ve already established successful campaigns on particular channels, hiring experts in those areas is wise to bolster that success. Don’t fix what’s not broken, but do optimize and expand.
3. Budget Considerations
With a limited budget, funneling resources into one or two proven channels could be more effective than hiring a Demand Gen Manager who may spread efforts too thin.
(Image Source: HubSpot)
Future Outlook with AI & ML in Demand Generation and Marketing:
Demand Generation in the Age of AI & ML
Optimized Data-Driven Campaigns: Demand Generation focuses on generating awareness and interest. AI enables companies to pinpoint the audience segments most likely to engage, leading to better budget and resource utilization.
Enhanced Predictive Analytics: ML empowers Demand Generation by predicting market shifts and consumer preferences. This foresight allows businesses to strategically present their products or services, positioning them at the forefront of industry developments.
Automated Content Creation for Demand Generation: Using AI’s grasp of language patterns, it’s possible to craft targeted messages for specific demographics. This amplifies the initial ignition of consumer interest, ensuring the first touchpoint is compelling and resonant.
Marketing Evolution with AI & ML:
Challenge: In Marketing, expansive teams traditionally juggle tasks ranging from customer behavior analysis to devising long-term strategies.
The AI & ML Solution: These advanced technologies diminish the need for manual intervention and repetitive tasks. As a result, marketers can channel their energies into strategic planning, creative ideation, and orchestrating a seamless customer journey.
Personalized Customer Journeys: AI’s capabilities allow brands to tailor unique experiences based on historical interactions and predicted behavior. From the first touchpoint to post-purchase interactions, customers can enjoy experiences that resonate, reinforcing brand loyalty.
Real-time Campaign Adjustments: Marketing’s role extends beyond just sparking interest—it seeks to cultivate lasting relationships. AI facilitates real-time insights and modifications to ongoing campaigns. This ensures that longer-term strategies remain effective and agile in changing dynamics.
Conclusion:
Think of Demand Generation and Marketing as two teammates playing different positions but aiming for the same goal: connecting with customers. As AI & ML technologies bridge the gap, roles between these two are set to become increasingly blended, making transitions more fluid from generating initial interest to fostering enduring customer relationships. Despite the advancements and potential overlaps, each still has its unique strengths. Recognizing and leveraging these strengths appropriately in the evolving demand generation and growth marketing landscape is crucial. While integrating new technologies might introduce complexity, the core mission remains unchanged: building genuine customer relationships. If you found this Demand Gen and Marketing exploration insightful, dive into our other blog topics for more insights! If you have any questions feel free to contact me.
