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A Beginner’s Guide To Demand Generation Marketing – Pros and Cons

Do you want to learn how to get the most out of your marketing efforts? Then demand generation is something you should consider! Demand generation marketing is an essential tool that can help businesses reach their goals by creating strategies tailored specifically to target prospects and customers.

It helps companies build brand recognition, leads, and sales, and ultimately enhance ROI. In this guide, we will discuss what demand generation is, what types of strategies are available, and how they are measured for effectiveness.

What Is Demand Generation Marketing?

Demand generation marketing is a multifaceted strategy designed to engage potential customers and nurture them along the entire buying process, from initial recognition of a need for a product or service, to eventually making a purchase.

It’s focused on creating long-term relationships with your customer base, through different channels such as email campaigns, webinars, and search engine optimization (SEO). The core principles emphasize personalized content tailored specifically toward individual user interests and needs.

An important part of demand generation marketing is creating a well-defined demand generation funnel. This involves evaluating the metrics at multiple stages in the customer journey, from initial contact to post-purchase engagement, and making adjustments accordingly to ensure that they are being guided toward conversion or purchase.

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When properly executed, these funnels can provide valuable insight into user behavior, allowing marketers to better optimize their campaigns and improve their ROI. The main benefits of demand generation marketing are increased overall brand awareness and an improved lead conversion rate which will ultimately result in more sales.

Additionally, marketers who use this strategy can generate higher quality leads that are likely to convert into paying customers compared to traditional approaches due to generic messaging across many target demographics.

However, like all strategies there are limitations associated with it too – cost being one of the major issues, as demand generation requires significant investment into resources. This includes time and personnel costs before results become visible making it hard for individuals or small businesses.


  • Increased brand awareness
  • Improved lead conversion rate
  • Generates higher quality leads and customers


  • High resource costs
  • Time intensive strategy

Types of Demand Generation Strategies

Demand generation strategies can be split into two broad categories: inbound and outbound. In this section, let’s take a look at both types of strategies and how to effectively use them for maximum results.

Inbound Strategies involve content marketing tactics like blogging, social media campaigns, website optimization, search engine optimization (SEO), and email marketing as well as other means of reaching prospects directly through their own channels.

These methodologies are often used to draw customers in by offering value-driven information or products on a company’s website or online presence. For example, gated content pieces and free downloads can attract potential buyers who have had no prior relationship with the business.

Outbound Strategies focus on using direct outreach methods such as cold calling, direct mail campaigns, and sales meetings. Outreach activities also include trade show appearances and webinar events sponsored by the organization.

Outgoing efforts may target specific individuals within an organization or customers from segments that fit tight buyer profiles identified by the marketer. By taking advantage of all these outlets allows you not only to target larger audiences but also tailor your message precisely based on demographic data gathered during the research phase.

How To Measure The Effectiveness Of A Demand Generation Campaign

Measuring a successful demand generation campaign is essential for determining the success and scalability of your efforts. If you want to know if your activities are bringing in quality leads or hitting desired ROI goals, then understanding how to measure the effectiveness of a demand gen campaign is key.

Here we will discuss defining targets and goals, tracking metrics, and analyzing data to gain insights into how effective your campaigns truly are.

Defining Targets & Goals

In order to effectively measure a demand gen campaign’s performance, it is important to determine what exactly you would like the end result of each individual activity campaign should be before launching it. This includes setting realistic but ambitious KPIs, such as lead quantity or conversion rate projections that can be tracked over time in order to identify any weak points within the journey.

To do this properly, you’ll need careful segmentation criteria based on customer personas so that targeted messaging can reach ideal customers at various stages throughout their personalized buying cycle.

Tracking Metrics

To accurately measure the success of a demand generation campaign, establish permissible access to channels like Google Analytics and third-party/internal CRMs, website click tracking, etc.

Factor in stories across multiple scenarios involving micro and macro metrics as markers for identifying strengths or weaknesses over time. Having well-defined trackable criteria will determine the accuracy of reported results.

Analyzing Data

Analyzing your data is key to understanding the effectiveness of a demand generation strategy. Categorize and report your relevant collected data, then visualize it through platforms like Tableau or Power BI dashboards. Doing this allows you to properly interpret trends from generated insights so that you can draw more meaningful conclusions quickly and effectively.

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