Let’s break this down into its separate elements —
**business-to-business** — this means that the company’s target customer is other businesses. They aren’t selling a product or service directly to consumers.
**demand generation marketing** — this refers to “top of the funnel” marketing, i.e. increasing brand awareness and generating interest in your business. “Demand” is the key word here — vs. something like lead generation marketing, which is when marketers try to directly identify people who might be good customers for the business.
A very simplified example in the B2C (business to consumer) context would be: Netflix Super Bowl ads are “demand generation marketing.” They want to make you familiar with the Netflix brand and make it seem desirable. When they send a coupon email to your inbox, or offer you a subscription bundle — that is “bottom of the funnel” marketing where they’re trying to close a sale.
**agency** — this means that the marketing firm isn’t operating from within the company that they’re marketing for. A marketer hired _by Netflix_ who works in Netflix’s marketing department is an in-house marketer. An agency is an outside firm that a company hires for a specific purpose — they generally work with lots of companies.
So a B2B demand generation marketing agency is an agency (not in-house for one company) that B2B companies (companies whose target customer are other businesses) can hire to design top-of-funnel (brand awareness) marketing tactics.
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