In the latest episode of #BiteSize, Aaron Ross describes the difference between corporate marketing and demand generation and shows the right way to build a B2B demand generation marketing program.
Aaron Ross (@motoceo) is the author of From Impossible To Inevitable. Aaron is married with 12 children (mostly through adoption), loves motorcycles, and keeps a 25-hour workweek. He’s a keynote speaker and best-selling author of Predictable Revenue, called “The Sales Bible of Silicon Valley,” based on an outbound prospecting system that’s created more than $1 billion across Salesforce.com and other companies. He’s co-founder and CRO of Carb.io, a Pipeline Automation software company, and is also the co-founder of PredictableUniversity.com.
Corporate marketing is more traditional branding, branding based advertising or it could be billboards, there are all kinds of ways you can advertise. You are not really sure exactly what is generating, in terms of leads or immediate results.
And there is demand generation which is more like lead generation. You are spending money in programs in generating leads that you can quantify.
They both can be valuable, there are pros and cons of both. Some of the pros about corporate marketing is, it’s important to help people find out about your brand. Putting in logos on billboards can be really helpful. The con, you can’t measure what you get.With demand generation, a pro is if you get a working and you have your finals like you get to a point where you say, if we spend a million dollars in marketing or outbound prospecting
With demand generation, a pro is if you get a working and you have your finals like you get to a point where you say, if we spend a million dollars in marketing or outbound prospecting and we generate a thousand leads, we will generate five million dollars from them, they can create a predictable way to grow. But a con in demand generation is that people get so caught up in the metrics, they sometimes forget to invest in the fuzzy stuff that ultimately can build relationships and expose yourself to bigger audiences.
The point is they both could be valuable but at what stage is it valuable?
When you are an early-stage company, may be under $9-10 million, may be under $50 million, may be under $100 million, corporate marketing usually does not make sense, in any significant way.
You want to focus more on demand generation, we spend money in some kind of marketing program, outbound prospecting, Google Adwords, webinars, can be measured what we get back and it can be doubled down. And if it doesn’t work we can stop it or change it, if you do get results we can double it, triple it, or ten times it.
The point we make in the book around this is, not only is the value of either one depends on the stage you are at, but also, the people who do them tend to be different.
If someone has a lot of background in corporate marketing, and you hire them as corporate marketing VP, or CMO of marketing at some big company, it can be very hard for them to pick up the skills and mindset that they need to be successful in demand generation, which is very activity-based, metrics-based, funnel based.
Someone who has done demand generation, it’s easier for them to pick the corporate marketing.
So, know what stage you should focus on either and be careful about who you hire. Don’t’ hire a big titled, big company person who may not be able to drive leads in your funnel. Don’t get blinded by the resumes.