Definition Myth: Business Development

Business development is a general term with different interpretation by different organizations. There’s no end to the debate to pinpoint a single definition. Generally speaking this term can be applied to any process / efforts made to advance the business by strengthening ties with existing clients as well as growing customers in new targeted market or segment.
Business development aims to grow the business by means that aren’t part of the Marketing and sales daily tasks. It requires the development and cultivation of relationships with buyers, suppliers, and competitors. In order to accomplish this goal, business development normally crosses the traditional barriers between sales, marketing, customer care, operations and management in order to promote the process of expansion on more than one level.


Categories of Business Development

• Product

Developing a new product or technology.

• Commercial

Prospecting new customers in new segments or markets or by development of new channels. The new channel includes partners, agents, distributors, licensees, franchisees.

• Corporate

Activities that are focused on mergers, acquisitions, joint ventures, direct and strategic alliances.


Conclusion
It is quiet hard to set single definition of business development, the confusion in definition is caused by categories discussed briefly above. This variation of categories demands Organizations / professionals to have different competencies, skills and process resulting in deferent interpretation of the term business development.


J. Biyrouti
Marketing Manager
Meirc Training and Consulting