Category: Business Development References

  • Business Development or Marketing – Are they One in the Same?

    Definition of Business Development vs. Marketing Communications

    Business Development is, by simplest definition, the conscious decision to seek out, qualify, and legitimize opportunities that broaden and deepen the offerings of a business.  While seemingly a simple concept on the surface, the activities involved in consciously deciding to develop business are as broad as they are deep.

    Such activities include the proactive analysis of present business activities, and the realistic and brutally honest assessment of where those activities are taking the business.  They include the formulation of decision-making criteria that will determine opportunities a business will and won’t explore.  They are the activities required to conduct competitive landscape analyses, and the determination to perform due diligence and develop risk/reward profiles for both near and long-term growth for all opportunities designed to compete within the defined market space.

    Business Development is a conscious decision to dedicate resources toward the identification of new growth opportunities for the company, and then design and develop a solid infrastructure to support and deliver on these new opportunities. In support of Business Development, is Marketing Communications.

    Marketing Communications is the design and development of communications plans, channels of communications, and tactics that detail, inform, and promote company offers to economic buyers.  Marketing Communications’ efforts are designed, by default, to pick up and drive home the business concepts and strategies articulated by the Business Development team.

    By design, Marketing Communications specializes in the articulation of promotional messaging, the development of physical tactics used to promote services, and the means by which sales staff communicates with prospects and customers. Market Communications does not, nor should it ever, be tasked with risk assessments, product and service P&L responsibility, or financial-based decision-making criteria.

    Business Development and Marketing Communications Process Optimization

    The optimization of Business Development and Marketing Communications activities can only occur when each is afforded the opportunity to focus on its area of core competency.  For Business Development, time taken away from the evaluation of new opportunities, competitive products and services, and growth through licensing opportunities equates to lost opportunity.  Conversely, for Marketing Communications, time taken away from getting the word out, priming the press, providing timely information to customers, and supporting sales through the provision of support tactics and services, equates to lost opportunity.

    It is critical to understand that this stated position is not intended to dilute or diversify, but rather consolidate and focus.  Business Development and Marketing Communications should always…always…communicate, practice shared-learning’s, and work together to achieve the common goal.

    When properly structured, mutually exclusive Business Development and Marketing Communications groups actively engage each other and interact in ways that focus the overall business effort.  The end result is the generation of more leads, more bids, and more contract opportunities that ultimately lead to more revenue growth and expanded business opportunities. [i]


    [i] Sabre Systems, Inc, Business Development and Marketing Communications Best Practices Version 5.0 , September 2003.

  • Traditional BD Roles and Responsibilities

    Traditional Business Development Roles and Responsibilities

    In the field of commerce, the specialist area of business development comprises a number of techniques and responsibilities which aim at gaining new customers and at penetrating existing markets.

    Techniques used include:

    1. Assessment of marketing opportunities and target markets;
    2. Intelligence gathering on customers and competitors;
    3. Generating leads for possible sales;
    4. Advising on, drafting and enforcing sales policies and processes;
    5. Follow-up sales activity;
    6. Formal proposal or presentation management and writing;
    7. Pitch and presentation rehearsals; and
    8. Business model design.

    Skill sets and experience for business-development professionals usually consist of a mixture of the following (depending on the business requirements):

    • Marketing
    • Legal
    • Strategy
    • Finance
    • Proposal management or capture management
    • Sales experience

    Business development involves evaluating a business and then realizing its full potential.

    A sound organization aiming to withstand competitors never stops business developmentbut engages in it as an ongoing process.

    Successful business development often requires a multi-disciplinary approach beyond just “a sale to a customer”.  Successful business development requires the establishment of a “pipeline”.

    The “pipeline” refers to flow of potential clients that a company has started developing. Business-development staffs assign to each potential client in the pipeline a percent chance of success, with projected sales-volumes attached. Planners can use the weighted average of all the potential clients in the pipeline to project staffing to manage the new activity when finalized. Enterprises usually support pipelines with some kind of CRM (customer relationship management) tool or CRM-database, either web-based (such as the salesforce.com software-as-a-service solution) or an in-house system.

    Business development specialists manage and analyze the data to produce sales management information (MI) such as:

    • Reasons for wins/losses.
    • Progress of opportunities in relation to the sales process.
    • Sales of services/products.

    Small to medium-sized companies often do not establish procedures for business development, instead relying on their existing contacts. People in such companies may assume that because they know people in high places that this will solve any business-development problems and that somehow new financial transactions will come to them. Such thinking can have significant ramifications if one cannot exploit those relationships. Such a situation may result in no new sales in the pipeline.

    For larger and well-established companies, especially in technology-related industries, the term “business development” often refers to setting up and managing strategic relationships and alliances with other, third party companies. In these instances the companies may leverage each others’ expertise, technologies or other intellectual property to expand their capacities for identifying, researching, analyzing and bringing to market new businesses and new products, business-development focuses on implementation of the strategic business plan through equity financing, acquisition/divestiture of technologies, products, and companies, plus the establishment of strategic partnerships where appropriate.

    Business-development practitioners cannot reduce their activities to simple templates applicable to all or even most situations faced by real-world enterprises. Creativity in meeting new and unforeseen challenges may help sustainable growth.

    Business-development roles may have one of two modes:

    • Sales-oriented (client-facing); or
    • An operational function to support sales.

    In a sales role, business development concentrates on developing strategic-channel relationships or on general sales; this is sometimes referred to as capture management.

    Capture management is one of the sales policies and processes that Business Development professionals advise on and develop for their companies. Others include proposal drafting and management, business development strategy, and the integration of branding and marketing to support the overall strategy.

    In the US, the term “capture management” appears as an alternative job or role title, typically used when describing business development as an operational function to support the selling function of a company.

    The “Capture Management Lifecycle” includes three broad stages:

    • Pre-bid phase.
    • Bid phase.
    • Post-bid phase.[1]

    [1] The preceding information is an excerpt from the Wikipedia article on Business Development. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. See Terms of Use for details.
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