What Part of the Funnel is Demand Generation in Marketing?
Demand generation is one of those marketing terms that gets thrown around with little to no explanation. At its core, it’s all about creating awareness and interest in your brand, sparking curiosity among potential customers, and setting the stage for engagement. But when it comes to answering the question, “What part of the funnel is demand generation in marketing?” things can get a little fuzzy.
Some marketers might tell you demand generation is about building awareness at the top of the marketing funnel. Others argue it goes deeper, supporting interest and engagement in the middle. And still others will say demand generation touches every part of the funnel in its own way.
The truth? They’re all a little right.
Demand generation isn’t confined to one stage of the funnel—it’s a dynamic, multi-faceted approach that creates awareness, builds interest, and ultimately supports conversions. Let’s dig in and explore where demand generation fits in the marketing funnel and how you can use it to drive results.
Demand Generation vs. Lead Generation: A Quick Detour
Before we dive into the funnel, let’s clear up a common misconception: demand generation isn’t the same as lead generation. Demand generation is about creating awareness and interest in your product or service. Think of it as rolling out the red carpet for your target audience, making them think, “That’s exactly what I need!”
Lead generation, on the other hand, is more specific. It focuses on converting that awareness into tangible leads and contact information you can follow up on. If lead generation is the party, demand generation is collecting RSVPs. Both are important, but they serve different purposes.
Where Demand Generation Lives in the Funnel
Top of Funnel (Awareness Stage)
Now, let’s place demand generation in the context of the sales funnel. It mostly sits at the top of the funnel (TOFU). But any good marketer has the flexibility to where it doesn’t have to stay in one place.
At its core, demand generation starts at the very top of the funnel, where the focus is on creating awareness and sparking interest. This is the stage where you’re grabbing attention and making a memorable first impression.
At this level, it’s not about pushing a product or service but rather positioning yourself as a trusted resource. Effective demand generation at the top of the funnel helps potential customers realize they have a problem worth solving and builds curiosity about how your brand can help. This stage sets the tone for the rest of their journey, laying the foundation for a relationship built on value and trust.
Tactics here include:
· Blog posts that address common challenges your audience faces.
· Social media campaigns that focus more on engagement than direct sales.
· Gated resources like whitepapers or eBooks that provide high-value insights.
But here’s the twist: demand generation doesn’t stop at awareness.
Moving Down the Funnel: From Awareness to Interest
Once you’ve captured your audience’s attention, demand generation follows them into the middle of the funnel (MOFU). This is where you’re nurturing the relationship, building trust, and turning curiosity into genuine interest.
For example, let’s say someone clicks on your blog about “5 Ways to Streamline Your Marketing Automation.” They’re intrigued. Great! Now’s the time to serve them a webinar invite or a case study to showcase how your automation platform helped another company save hours every week. The key here is to keep the momentum going without pushing too hard.
The Role of Demand Generation in Conversions
Okay, so demand generation mostly lives at the top and middle of the funnel. But can it help close deals? Absolutely, though its role is more indirect here.
At the bottom of the funnel (BOFU), you’re focusing on converting prospects into customers. While traditional demand generation tactics might take a backseat, the foundation it built earlier in the journey is what makes conversions possible.
For example:
· That insightful blog post? It positioned your brand as a thought leader.
· The helpful case study? It proved you can deliver results.
· The consistent messaging and engagement? It made you memorable.
By the time your sales team gets involved, the groundwork demand generation laid ensures prospects are primed to say yes.
How Demand Generation and the Funnel Work Together
Here’s the thing to remember: demand generation isn’t a strict phase in the funnel. It’s more like a guide, leading your audience from one stage to the next. It creates awareness, nurtures interest, and subtly supports conversion efforts.
Think of it as the stage crew at a play. They’re not delivering the lines or taking the final bow, but they’re behind the scenes, setting up the lights, arranging the props, and ensuring everything runs smoothly for the main performance. Without them, the show wouldn’t go on.
Why is the continuous nature of demand generation so important? Well, the numbers speak for themselves, as businesses that excel at demand generation see 50% more sales-ready leads at a 33% lower cost.
Why Demand Generation is a Long Game
One of the biggest misconceptions about demand generation is that it delivers instant results. In a perfect world that would be the case, but that simply isn’t the reality.
Demand generation revolves around building relationships, and like any good relationship, it takes time. You’re creating brand awareness and trust that will pay off in the long run, not just in clicks and leads, but in loyalty and advocacy.
Where so many companies stumble is when they expect demand generation to work like lead generation. Demand generation isn’t about getting someone to fill out a form immediately, it’s about making them want to fill out a form when the time is right.
Putting It All Together
So, what part of the funnel is demand generation in marketing? The answer is everywhere (but mostly at the top and middle). It’s the strategy that sets the tone for your entire customer journey, creating the kind of awareness and interest that eventually leads to conversions.
If you’re not investing in demand generation, you’re missing out on one of the most effective ways to build a sustainable, scalable pipeline. And if you’re already doing it, take a moment to evaluate if your efforts align with the funnel stages and if you’re nurturing relationships as well as generating leads. Use tools like HubSpot or RollWorks to track your demand generation efforts and see how they’re impacting your funnel. When done right, demand generation fills your funnel with a mass of qualified, high-value leads.
Track your demand generation efforts with these helpful tools!
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Demand Generation is Everywhere
Demand generation might not fit neatly into one stage of the funnel, but that’s what makes it so powerful. It’s the glue that holds your marketing efforts together, guiding your audience from awareness to conversion in a way that feels natural and valuable.
So, the next time someone asks, “What part of the funnel is demand generation in marketing?” you’ll know what to say: “It’s everywhere, and it’s what makes the funnel work.”
Let Vonazon help you build a demand generation strategy that fits seamlessly into your funnel and drives real results. Because when it comes to marketing, the magic happens when strategy meets execution. Contact us to learn more.
