30-second answer: Demand generation is the discipline of creating, capturing, and converting B2B interest into qualified pipeline. The vocabulary spans funnel terms (TOFU, MOFU, BOFU, MQL, SQL, MQA), program terms (content syndication, paid social, webinars, ABM), measurement terms (CPL, CPMQL, CPO, ROAS, payback), and execution terms (lead nurture, lead scoring, lead-to-account matching, lead routing). This glossary defines 24 demand-gen terms B2B marketers use most.
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TOFU is the awareness stage where prospects learn the vendor and the category exist. TOFU programs include SEO content, paid social brand campaigns, podcasts, and PR. Conversion targets are newsletter, content download, or webinar registration.
MOFU is the consideration stage where prospects evaluate possible solutions. MOFU programs include comparison content, calculators, case studies, deep-dive webinars, and gated reports. Conversion targets are demo requests, trials, and direct sales conversations.
BOFU is the decision stage where prospects evaluate specific vendors. BOFU programs include product pages, ROI calculators, customer references, and bottom-funnel ads. Conversion targets are signed contracts.
An MQL is a contact whose marketing engagement crossed a defined scoring threshold, signalling readiness for sales follow-up. MQLs are contact-level, which is increasingly seen as the wrong unit for B2B because the buying committee, not the individual, decides.
An SQL is a contact whose disposition has been confirmed by sales as a real opportunity worth pursuing. The MQL-to-SQL conversion rate is the operational handoff metric between marketing and sales.
An MQA is an account whose combined fit and engagement signals exceed a defined threshold, signalling that the account is ready for sales engagement. The MQA replaces the per-contact MQL in account-centric programs. See marketing qualified account.
An SAL is an MQL that sales has explicitly accepted into their pipeline, often via a defined SLA. The SAL gate is a quality control step that prevents low-fit MQLs from rotating through unworked sales queues.
Content syndication distributes gated content (whitepapers, reports) through publisher networks to generate leads at agreed cost-per-lead pricing. The lead quality varies; tight ICP filters and exclusion lists are essential.
Paid search bids on Google and Bing keywords to capture in-market intent. Branded search defends; non-branded captures category demand. Paid search is the highest-intent paid channel.
Paid social runs on LinkedIn, Meta, X, and increasingly TikTok for B2B. LinkedIn is the dominant B2B paid social channel because of native firmographic targeting.
Programmatic advertising buys display and video inventory through automated exchanges with audience and account-level targeting. ABM programmatic targets named accounts. See how to do account-based advertising.
A webinar program runs scheduled live or simu-live events on category topics, capturing registrations as MQLs and sustaining engagement with on-demand replays.
ABM is the strategic discipline that targets named accounts rather than individual leads, with marketing and sales running coordinated campaigns. ABM and demand gen overlap; the distinction is the unit of targeting. See account-based marketing.
Lead nurture is the automated sequence of emails, retargeting ads, and content offers that move not-yet-ready leads through the funnel. Nurtures live in the marketing automation platform.
Lead scoring assigns numeric weights to contact behaviour and demographics to rank readiness. Modern programs run two scores: a fit score (firmographic) and an engagement score (behavioural). See lead scoring.
Lead-to-account matching links incoming leads to existing CRM accounts, preventing duplicate accounts and routing leads to the right opportunity owner. It is the foundation of account-based reporting.
Lead routing assigns inbound leads to the correct sales rep based on territory, account ownership, deal stage, or signal-based rules. See how to route leads from intent signals.
A form fill is a lead-capture event where a contact submits personal data in exchange for content, demo, trial, or webinar access. Form-fill data is the cleanest first-party signal in demand gen.
CPL is total program spend divided by leads generated. It is a coarse efficiency metric because not all leads convert; many programs report CPMQL or CPO instead.
CPMQL is total program spend divided by MQLs generated. It is more useful than CPL because it filters out low-fit, low-engagement leads.
CPO is total program spend divided by opportunities created. CPO is the standard B2B efficiency metric because the opportunity is the first measurable revenue-side outcome.
ROAS is closed-won revenue from ad-attributed pipeline divided by ad spend. ROAS is most useful for short-cycle, single-touch B2B; multi-touch B2B usually pairs ROAS with attribution-model output.
Payback period is the number of months for gross profit from new customers to repay the demand-gen investment that acquired them. Healthy B2B SaaS targets 12 to 24 months.
Pipeline coverage is the ratio of open pipeline to revenue target in a period. Healthy B2B targets 3x to 4x. Demand gen is the primary lever for moving coverage.
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Demand generation creates broad-market interest and captures contact-level leads. ABM picks named accounts and runs coordinated programs at the account level. Modern programs do both: demand gen scopes the addressable market, ABM scopes the top accounts inside it. See account-based marketing.
For SMB programs and short-cycle motions, contact-level MQLs work fine. For mid-market and enterprise where the buying committee is 8 to 12 people, MQAs are the better unit because they avoid double-counting the same account. See marketing qualified account.
Conversion rates vary by category, deal size, and program mix. A B2B SaaS program with strong fit filters typically converts 8 to 15 percent of MQLs to opportunities. Below 5 percent suggests the MQL bar is too low; above 25 percent suggests the bar is too high.
Most well-run programs allocate 60 to 70 percent of budget to demand gen and 30 to 40 percent to ABM, but the right ratio depends on average deal size and TAL size. Higher contract values and smaller TALs justify more ABM-weighted spend.
Lead nurture remains useful for keeping not-yet-ready leads warm but is less central than it was a decade ago because intent data and signal-based selling now identify in-market accounts more directly. Nurture is one channel; it is no longer the primary channel.
Demand generation vocabulary keeps evolving as the discipline merges with ABM, intent data, and signal-based selling. Use this glossary as a reference when reading vendor documentation and program plans. The right test is whether each defined term still produces actionable distinctions.
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