The ideas, efforts, and activities that contribute to the improvement of a business can be summed up in the simplest terms as business development. This entails raising sales, expanding the business, improving profitability through forming strategic alliances, and making strategic business choices.
Business organizations frequently use the impressive job titles “Business Development Executive,” “Manager of Business Development,” and “VP, Business Development.” The domains of sales, strategic initiatives, business relationships, market development, corporate expansion, and marketing are all engaged in business development. Still, they are sometimes confused and incorrectly thought to be their exclusive purpose.
Knowing the Foundations of Business Development
Sales, marketing, project management, product management, vendor management, and other divisions are all involved in business development. Additionally engaged are cost-cutting initiatives, alliances, negotiations, and networking. The company growth objectives serve as the motivation for and alignment between these various departments and operations.
For instance, a company might have a good or useful service that sells well in the United States or another similar country. The business development team evaluates the possibility for additional growth. After careful consideration, investigation, and analysis, it is determined that the good or service can be extended to a new area, such as Brazil.
Salespeople concentrate on a certain market or a specific (set of) client(s), frequently with an eye toward a particular target of revenue. Business development evaluates the Brazilian needs in this instance and determines that $1.5 billion in sales can be reached in three years. The sales department targets the consumer base in the new market with their sales methods to achieve these stated goals.
Marketing is successfully selling things to end users through promotion and advertising. To accomplish sales goals, marketing plays a complementary function. Initiatives for business development may allot a projected marketing expenditure. With larger funds, aggressive marketing techniques like cold phoning, in-person meetings, road shows, and the distribution of free samples are possible. Passive marketing techniques, like restricted web ads, print ads, social media ads, and billboards, sometimes come from lower budgets.