Difference Between Marketing and Business Development -
Today we will talk about the Difference Between Marketing and Business Development. Businesses are always on the lookout for strategic prospects that can improve operations for more revenue.
While the importance of marketing in an organization cannot be overstated, business development also plays an important role in building a brand.
However, despite the differences between the two terms, they are often used interchangeably. This can be attributed to the assimilation of the roles of marketers and business developers in some organizations.
What is Marketing?
Marketing refers to the series of activities carried out by a business entity to create interest and awareness and to facilitate the sale of products and services to potential consumers.
A strategic marketing plan should take into account the interests, information, and capabilities of the organization. According to the marketing strategy, the marketing department should execute the marketing strategy and ensure that all information is accurate and consistent.
To ensure profitability, marketing aims to match consumers with a brand's service or product. To effectively market a product or service, marketing must incorporate the four Ps of marketing into its strategy.
- Product - Usually in intangible and tangible form, these attributes include functions, characteristics, uses, and benefits that can be used or exchanged. A product can be a service, idea, or commodity.
- Price - This is the monetary value attached to a product or service. The price of a product should include all costs involved, including marketing, production, and distribution.
- Location - This is where the product or service is distributed to consumers. It shows how well a given product covers a specific market. Market coverage is based on the method by which the company intends to distribute its products. This can be done through online platforms, brick-and-mortar stores, or both.
- Promotions - These are tactics used to entice potential consumers to make a purchase. Examples of promotional methods include a promotion, sponsorship, and public relations.
Marketing plays a vital role in the success of a business such as:
- Create effective ways for consumers to interact with brands
- Help build and maintain the company's reputation
- Build relationships between consumers and businesses
- Provide insights about a product or service
- Boost product sales to increase revenue
What is business development?
This is creating long-term value for the business through ideas, activities, and initiatives in relationships, customers, and markets. Establishing strategic business partnerships and business decisions improves profitability, business expansion, and business expansion.
Areas covered in business development include strategic initiatives, market development, sales, marketing, business partnerships, and business expansion. However, these should not be confused with business development.
Business development plays a huge role in:
- Partnerships and Strategic Moves – Businesses looking to enter new markets can gain an easier way through partnerships with other companies. Business development teams can weigh the benefits and risks of each available option.
- Product Stewardship - Product requirements may vary by consumer and even by geographic location. Business developers will come in handy in identifying cost-effective and legal ways to make products acceptable in other markets.
- Networking, Negotiations, and Lobbying - This May require commercial developers to negotiate commercial with government agencies, regulators, and other third parties.
- Set cost-cutting measures - Business developers may need to conduct an internal assessment to identify some cost-saving initiatives in the business.
Similarities Between Marketing and Business Development
- Both are designed to generate and nurture leads
Difference Between Marketing and Business Development
- definition: Marketing refers to the series of activities carried out by a business entity to create interest and awareness and to facilitate the sale of products and services to potential consumers. Business development, on the other hand, is about creating long-term value for a business through ideas, activities, and initiatives in relationships, customers, and markets.
- focus: Marketing focuses on matching consumers with a brand's service or product. Business development, on the other hand, focuses on creating long-term value for the business by qualifying leads and converting them into customers.
Marketing and business development: how to redefine them
What is Marketing? and business development? Ask ten people these questions and you may get ten different answers.
As an industry, we certainly have no shortage of opinions and definitions, but those definitions often do not fit into the broader definitions accepted by other industries.
Philip Kotler, the "father of modern marketing" and the author of many college marketing textbooks, sees it this way:
Marketing is the science and art of exploring, creating, and delivering value to meet the profit needs of target markets. Marketing identifies unmet needs and desires. It defines, measures, and quantifies the size and profit potential of identified markets. It identifies the market segments the company can best serve, and designs and promotes appropriate products and services...
In my 11th edition of Marketing Management by Philip Kotler, I described the most important ones in Chapter 1 Marketing concept.
They are Segmentation, Positioning, Positioning, Needs, Demands, Demands, Products, Brands, Value and Satisfaction, Exchanges, Transactions, Relationships and Networks, Marketing Channels, Supply Chains, Competition, Marketing Environment, and Marketing Plans.
These terms make up the working vocabulary of marketing professionals. Unfortunately, in the industry, there is no unified definition of marketing and business development. Many companies use "marketing" and "business development" interchangeably. I've been involved in some informal research recently and found that there is little difference between the two at the executive level - it's all about getting a job.
For other companies, there are obvious responsibilities between the two: Marketing = Brochures, Resumes, Proposals, Presentations, Websites Business Development = Sales, Networking, Trade Shows.
In this case, however, too many companies have "marketing" employees with little to no marketing responsibilities.
Of course, they are busy. They're doing a 50+ hour work week to bust their ass rollout proposal. For them, it seems like a new proposal is coming out every week. (Or multiple proposals in a given week.) While we could chatter about the merits of a robust go/no go process in the pursuit of minimizing the time and money wasted on low-probability proposals, we would Save it to another post.
What's important here is the fundamental misunderstanding of the proposal, which is a function of business development, not "marketing" - at least not as many companies define marketing.
Pricing is also usually handled at the principal or operational level. Set budgets, adjust multipliers, and publish rate schedules. Project managers then use current rates and historical data to set project costs.
Most marketing teams have absolutely no voice or involvement here, although many business development professionals have heard their muttering, "Our fees are too high to get this project off the ground!"
At some companies, the marketing team was brought over to Place. They may be asked about trade shows, market expansion, new offices, and other projects related to locations that provide or facilitate services to potential clients.
In the 21st century, for many industries, websites are part of Place. Most companies don't actually "sell" their products online, but companies like Amazon and Zappos are built on the internet.
However, promotions are a role we typically find marketing in A/E/C companies - although promotions are a rarely used marketing tool. In large companies, the public relations function can be handled by a dedicated communications department. Of course, in many other companies, there is no PR function!
Let's get back to our challenge: too many companies don't understand that proposals are a function of business development. Marketing coordinators who spend their days in the trenches preparing proposals are actually in-house business developers. Now, before we dive into it, let's first define business development as a sales-related activity.
After all, "sell" is a four-letter word that is often avoided in companies! Some people define business development as distinct from sales.
For example, business development is the process of building a relationship with a potential customer -- or enhancing a relationship with an existing customer -- while sales is the effort required to pursue a particular project: writing a proposal, participating in project interviews, negotiating a contract.
Marketing in this context is about building a brand, creating name recognition, and generating demand. , It's about figuring out where your potential customers are and getting your message in front of them.
It's about getting your product (service) into the right markets, and understanding those markets. Tools used by marketers include websites, blasts, direct mail, advertising, public relations, research, and content such as blogs, articles, and general presentations (community programs, professional association meetings, or client organizations).
Business development is about focusing on specific prospects and converting them into customers. Tools used by business developers include personal email and phone calls, social selling, networking, trade shows, face-to-face meetings, proposals, and client- or project-specific presentations and interviews.
Marketers are focused on helping convert suspects into leads. A business developer's focus is on the few - or one - to move prospects into opportunities and convert them into customers.
In the past, business development often represented some interactive elements - telephone conversations, personal meetings, web conversions, email exchanges, etc.
Marketing, on the other hand, lacks interaction. Maybe someone saw an ad, read a press release, or checked a website. But with social media, blog reviews and product reviews, interaction with customers and prospects is becoming more common in marketing.
The Association Marketing is an organization serving industry marketing and business development professionals.
Their members have different responsibilities: branding, communications, research, public relations, digital marketing, proposal writing, presentation development, brochure creation, graphic design, sales, networking, and more.
However, at the end of the day, their role is to create awareness for the company, build the brand and create new business opportunities. New definitions of marketing and business development have recently been adopted, bringing back traditional views of marketing - and those taught in college marketing programs for decades.
Marketing = the process of creating corporate awareness; building and differentiating brands; driving business development activities; and identifying, predicting, and meeting customer goals to achieve profitable business goals.
Business development = is an integral part of marketing, the process of identifying customers and opportunities, developing relationships, and working to ensure a profitable company. What I like about these is that they go beyond common definitions.
Awareness and differentiation are key activities in marketing - but they play an important role in business development. They make business development easier to happen.
Furthermore, marketing is defined in the context of customer goals and profitability. This aspect is often forgotten or overlooked. Your marketing will go to waste if your marketing message ignores the needs and goals of potential customers.
Marketing and Business Development Summary
Marketing refers to a series of activities carried out by a business entity to create interest and awareness, as well as to facilitate the sale of products and services to potential consumers. Business development, on the other hand, is about creating long-term value for a business through ideas, activities, and initiatives in relationships, customers, and markets. However, the two work in tandem. Business development ensures that leads are not lost by nurturing them if marketing is done right and leads to interest.