Manager – Business Development, VP Business Development or Executive – Business Development, are heavyweight and impressive terminologies used in business organizations. A business partnership, Strategic initiatives, business expansion, marketing, sales and market development are the fields take part in business development. These are considered as the sole functions in the field of business development. The question comes to mind “What is business development, in reality?” the answer to the question is given here.
In simple meaning, business development can think of as initiatives, ideas and those activities that are aimed to make the business better and better. This also includes revenues, increasing profitability via strategic partnerships, and growth of business expansion, and effective business decisions. The underlying concepts regarding business objectives are also discussed in this blog.
Scope and Concept of Business Development
The activities regarding business development cover different departments, including marketing, sales, vendor management, product management, and project management. Negotiations, Networking, Cost savings and partnership efforts are involved too. These departments or activities are aligned to and driven by the development goals.
As an example, a business is having a product or a service that is successful in a region. The team will try to expand the service in other regions also. After all research and studies, with due diligence and combined efforts, the product or service can be extended to other regions. Now let us discuss how the development goals can be used in various departments and functions:
Sales: The persons focus on a particular set of client or clients, a market or a revenue number. In the example given above, the business development will access the other regions and their markets for sales and profit can be achieved in 3 years. With these goals and objectives, the department will target the customer and sales strategies in that new market.
Marketing: The department involves advertising and promotion and aimed to sell the products to the customers or end users. Marketing plays a vital role in achieving company’s targets. An estimated budget may be allocated to the business development initiatives. High budgets allow strategies like road shows, free sample distribution, cold calling and personal visits. Low budgets may include billboards, media ads, and limited print.
Partnerships: Assisted by finance teams, the business team checks all the benefits and drawbacks of the options available, and selects the best that serves the business.
Business Planning/Project Management: Manufacture the products in the base region and then import them or a new facility in the market? These decisions are taken by the teams and they finalize on the basis of time, cost and other assessments.
Product Management: Does the market require a customized or new version of the service or the product? Such requirements drive the product management as well as manufacturing departments.
Vendor Management: The department deals with external vendors, shipping of products, firm partner, retail chains, retail sales and costs associated.
Networking, Negotiations, and Lobbying: Some business initiatives need expertise and skills. Lobbying is allowed in some locales and necessary in the markets. Negotiations and Networking are needed with third parties like agencies, vendors, regulators and government authorities. These initiatives are also the part of development.
Cost Savings: The development is not about increasing sales market reach and products. These decisions are required to improve costing measures.