By Sales, marketing, project management, product management, leadership development program and vendor management are just a few of the departments involved in business development. There is also networking, negotiating, cooperation, and cost-cutting measures. All of these various departments and operations are motivated by and linked with corporate development objectives.
For example, a company may have a successful product or service in one location, such as the United States. In addition, the company development team evaluates potential future growth. After careful consideration, investigation, and analysis, it is determined that the product or service may be expanded to a new region, such as Brazil.
Sales employees concentrate on a certain market or a specific (set of) client(s), generally with a specific revenue goal in mind.
In this scenario, business development evaluates the Brazilian markets and determines that $1.5 billion in sales may be attained in three years. Moreover, with such goals in place, the sales department uses their sales methods to target the consumer base in the new market. Keep reading the blog to learn more.
Know the Business Development Fundamentals
1. Marketing
It entails promotion and advertising aimed at successfully selling things to end users. Furthermore, marketing aids in the achievement of sales objectives. An expected marketing budget may allocate to business development projects. Increased marketing budgets enable for more aggressive marketing methods such as cold phoning, personal visits, roadshows, and free sample distribution. Low-budget marketing methods, such as restricted internet ads, print ads, social media ads, and billboards, are more common.
2. Partnerships or Strategic Initiatives
Will it be better to enter a new market on your own by completing all necessary paperwork, or will it be more prudent to build a strategic alliance or collaboration with local enterprises already functioning in the region? The business development team, assisted by legal and finance teams, assesses all of the advantages and cons of the available options and chooses the one that best serves the firm.
3. Business Planning/Project Management
Is a new facility in the new market require for business expansion. It will all products create in the base country and then import into the target market? Will the latter option need the construction of an extra facility in the base country?
As determined by the company strategy, these requirements drive the activity of the product management and manufacturing departments. A business development plan evaluates cost considerations, legal permissions, and regulatory conformance.
4. Vendor Administration
Will the new company require the services of third-party vendors?
Will, for example, the shipment of a product necessitate the use of a dedicated courier service? Next, Will the company collaborate with an established retail chain for retail sales? What are the expenses for these engagements? The business development team is addressing these concerns.
Final Thoughts
The above business development scenario is specific to a business expansion plan. Moreover, the impact of which can practically every unit of the firm. Similar developmental goals for work objectives include the creation of a new business line, the creation of new sales channels, the creation of new products. Moreover, the formation of new alliances in existing or new markets, and even merger and acquisition (M&A) decisions.
