What is meant by "lead generation" in sales?

Lead generation refers to the process of identifying and attracting potential customers who may be interested in a company's products or services. This phase is critical in sales as it lays the groundwork for any subsequent stages, including nurturing relationships, presenting solutions, and ultimately closing deals. Effective lead generation utilizes various strategies, such as content marketing, social media outreach, networking, and targeted advertising, to create interest and engage prospects. The goal is to build a pool of potentials, transforming them into leads that can be followed up on by the sales team, ensuring a continuous flow of potential sales opportunities.

In contrast, the other options focus on different dimensions of the sales process. Closing a sale pertains to the final step in the selling process when a buyer makes a purchase decision, while pricing products involves determining the monetary value attached to goods or services. Branding, on the other hand, refers to creating a perception of a product in the minds of consumers, which is separate from the process of generating interest from potential customers. Thus, lead generation serves as a foundational step that supports the overall sales strategy.