Lead generation is a term in marketing that refers to the generation of consumer interest into a business, whether they are offering products or services.
Lead generation usually involves aggressive marketing activity that is targeted towards generating sales. Technically speaking, a ???lead??? is the information provided by the consumer to the company, who may be interested in buying, while ???generation??? could involve various activities in the marketing process.
In lead generation, depending upon the product, there may be heavy emphasis put on careful prospecting or proactive marketing. For complex transactions involving large products or services (such as in real estate) the most important aspect of lead generation is in identifying the most qualified prospects and then educating the buyer about the product.
You could say that prospecting is a reactive process, in which the seller reacts to the actions of the potential buyer. Lead generation can be highly intimidating, especially since cultivating interest can be a month long process or involve several parties.
Marketing for various commodity products can be very much the opposite; a proactive campaign that encourages impulsive buying, often time favoring emotional response over logical response.
Sometimes lead generation in this sense involves a marketing perspective of two parties, each seeking the other, but who are obscured by time and distance.
There are also differing strategies in lead generation, including broadcast and concentration techniques. Broadcast involves communicating to a broad audience expecting a statistical response. Concentration involves creating situations that concentrate an individual response, such as at a trade show.
What are some types of lead generation that have proven effective over time? Obviously, broadcast advertising has been proven lucrative for large companies and corporations.
For small to medium sized companies, efforts in direct mail or email marketing have reported positive results. For product marketing, trade show or events marketing has proven successful, while for others seminars and training sessions have earned a strong following.
Telemarketing is another common form of lead generation, as are white papers and product literature, such as pamphlets and brochures. Companies can also utilize publicity in their efforts, as well as exploit new technology in web marketing, whether through Search Engine Optimization or other Internet media advertising.
Lead generation is important in any business, whether their product or service is complex or commonplace. A business owner must constantly be looking for new leads of customer interest. A complacent business may well be a business on its way into bankruptcy.