There is much confusion in the minds of many B2B orgnaisations - particularly SMEs - about the distinction between lead generation and telemarketing. Many even quite senior business professionals do not understand the distinction and see the two as interchangable terms. This article sets out to try and help clarify this situation and draw a clear distinction between these quite different activities. The article is not an attempt to argue that one is better than the other, it simply sets out the main differences between the two activities.

Lead generation campaigns consist exclusively of business-to-business outbound calling conducted by sales professionals with finely honed presentation and qualification skills and who are highly trained on the products and services they represent. Products and services are generally complex and high-value and they are marketed to high-level decision makers.

Lead generation is an interactive medium.

It is used to gather information, "qualify" prospects and generate interest. Lead generation identifies prospects worthy of a sales person's attention by providing critical sales information, such as motivation for buying, common objections, the decision making unit (DMU), purchase process, interest level and key competitor information. In addition to appointmnet setting, effective lead generation activity provides sales people with the information they need once they are in front of the customer to close the sale.

Telemarketing is not an interactive medium.

In a B2B environment, Telemarketing campaigns are generally not used to gather information, qualify prospects or generate interest, but rather to sell such things as publication subscriptions, advertising space or exhibition space. Telemarketers most frequently represent easy-to-understand products and services and often do not receive extensive sales training. Presentations are frequently robotic and result in many ineffective calls. Volume not targeting is frequently the key to success.