What is the difference between prospecting and lead generation?

Originally Posted by Justyn In my humble opinion, Lead Generation is a practice that results in barely to highly qualified leads, depending on the approach. While prospecting qualifies at the same time.

If I'm sending out direct mail and the company is sending out direct mail how would I be qualifying and the company isn't?

I would consider sending direct mail to unqualified targets 'lead generation'. I consider prospecting to be a two-way interaction, but that's just my interpretation. Probably has a lot to do with my surroundings

Originally Posted by Justyn I would consider sending direct mail to unqualified targets 'lead generation'. I consider prospecting to be a two-way interaction, but that's just my interpretation. Probably has a lot to do with my surroundings

Would direct mail to qualified targets be prospecting? What did you mean by two-way interaction?

I think I would consider direct mail to qualified targets prospecting. Depending on how they were qualified. I think it comes down to my version of symantics on prospect vs. target. I consider a target to be someone who fits my general demographic, and a prospect to be someone who has expressed an interest/need for what I am selling (either by thier own accord, or through my companies lead generating efforts). In my opinion, once they have shown interest, they become a prospect. We have extended a message, and they have responded (two-way interaction).

It really is symantics though, so I don't stand by my interpretation with any vigor.

Justyn

Originally Posted by Justyn I consider a target to be someone who fits my general demographic, and a prospect to be someone who has expressed an interest/need for what I am selling (either by thier own accord, or through my companies lead generating efforts).

Direct mail to a target would be lead generation and direct mail to a prospect would be prospecting?

It could be, assuming the message to the prospect was tailored to the interest they have expressed. A general message to prospect would be marketing, brand awareness, top-of-mind marketing.

In my world, my marketing department would handle direct mail to a prospect (or target), I would interact via phone, personalized email or in person. I have thousands of targets, and only a few dozen prospects at any given times.

I think the difference between lead generation and prospecting has a lot to do with how your company views each activity, and defines a 'prospect'.

Originally Posted by Thomas Is prospecting different than lead generation? What is the difference?

I view one as generating leads and the other as sifting through the leads generated.

I look at lead generation as approaching "suspects" in some manner. If they show an interest, they become prospects because they're willing to participate in the sales process to some degree.

Originally Posted by Justyn I would consider sending direct mail to unqualified targets 'lead generation'.

I would call it a moronic practice. If I knew that the people I'm sending the letters to are unqualified, I would be an idiot to send the letter.

Thoughts?

Originally Posted by Bald Dog I would call it a moronic practice. If I knew that the people I'm sending the letters to are unqualified, I would be an idiot to send the letter. Thoughts?

Sending letters to unqualified recipients is very similar to traditional advertising where you're blasting out a "message" in hopes that someone pays enough attention to take action. While I wouldn't call that practice "moronic" per se, there are better ways to spend your time and money when prospecting.