The world of marketing is often misunderstood by business owners, managers and executives. This is largely because the fields are different in nature and scope. Marketing focuses on providing information to customers, while business development looks to engage with prospective customers to create new business opportunities.
However, there are some similarities between these two fields and how they can be used effectively to build your company's brand. And, what's the key difference between Marketing Vs Business Development?
Here, you have a complete guide to marketing vs business development. What is the difference between marketing and business development?
Marketing vs business development are two completely different aspects but equally important.
The marketing function is concerned with attracting potential customers to the business, maintaining current customers and retaining them through their journey from awareness to loyalty.
A key task is identifying a target market, that is, a group of people who have the same values as your business but are not yet aware of you.
This often involves evaluating segmentation data generated by research and analysing marketing budget spend using tools like profit analysis or P&L reports.
Another key aspect of this function which often gets overlooked is customer naming (finding names for people when they are at best referred to in text). It’s extremely important in terms of simply remembering a name, but it can also be used effectively to provide recognition within the business.
Business strategy should reserve marketing time and allocation for attracting new customers rather than focusing on retention or expansion – this is because spending money on customers who don’t stick around will only lead to higher expenses down the line. Low cost can help startups become an established global brand with limited overhead, and turn admissions into income as soon as possible.
Business development is all about your company’s revenue.
The business development department aims to create the products or services customers will be willing to buy, and condense it into an easy-to-understand messaging strategy that can be successfully sold in a variety of ways (such as channel sales representatives, direct marketing and advertising).
In order for a product or service idea to be successful, there needs to be an interaction with a potential customer somewhere along the way. Business Development utilizes several strategies that help identify who these customers are, what they need and what they want.
Within this role, several people need to be able to communicate with these customers in one way or another, and they also all have individual roles such as a sales lead who is responsible for achieving revenue goals by securing new orders while retaining current clients.
To support the business development needs of marketing manager, business development role falls on various departments under it which are: corporate sales managers / branch management team; departmentalization - where the product that will create strong revenues
The following is a full comparison between Marketing vs Business Development:
Business development does not have to be a marketing function. They are often grouped together because they do similar things but as we will see there are some very important differences between the two.
One thing that most business people know is that both functions must work together in order for the company to grow and stay profitable.
It’s great if you can develop amazing products or services regardless of what those are called, so by no means should each department just be working separately and disconnected with each other through these processes.
Business Development has to gain market share because it ensures profitability of your product or service, while marketing has to sell these products or services by drawing customers in through the right channels that are agreed with clients.
However, as we will see below there is a lot more business development that goes into product launch than just meeting the sales target numbers and getting three times higher market penetration compared to your competitors.
Marketing and business development are important strategic functions in any company. Their major roles include:
Marketing: Developing awareness, boosting demand, providing information to customers, increasing brand loyalty and engagement, creating marketing campaigns.
Business Development: Selling products or services to new clients or strengthening relationships with current clients through sales promotion.
To understand the difference between a marketing manager vs a business development manager , it is helpful to understand the respective areas of expertise that make each role unique.
Marketing managers focus on analytics and tracking tactics for online strategies like email marketing. They can also be responsible for other types of digital marketing including web, PPC marketing and social media platforms.
Overall marketing managers focus on increasing demand for a brand or product through activities like creating campaigns, expanding target audiences as well as providing information to customers in the form of online content.
Departments at companies such as Google, Pinterest and Facebook that employ these strategies are responsible for cost-effective results provided via their organic reach across all important channels (email , FB pages , Twitter etc.).
Consumers are continually asking their peers, "Am I being marketed to?" marketers must do a better job of monitoring what consumers say they like and dislike.
Studies reveal that salespeople earn more commissions if they receive positive sales referrals than negative ones.
Consumers don't want to be marketed at; however, once the consumer grows comfortable around the relationship, he or she will begin thinking about how much value is in play. The growth curve for both marketing and business development works hand-in-hand.
Growth curves within companies can get stuck due to slow marketing efforts; however, it is just as important that companies find the right growth rate for business development. Marketing only measures demand; however it can fall behind if there are no drivers to bring in more sales and revenues.
Business stakeholders often complain they do not get enough value from marketing departments (or have a poor return on investment) due to under-reach of their target audiences or potential customers through stale advertising strategies .
1.What is the difference between marketing and business development?
Marketing is the term used to describe the process of promoting a product or service.
Business development is when you are looking for new opportunities and investment in your company.
So, marketing deals with promotion whereas business development deals with seeking new opportunities for growth.
2.What is the difference between business development & marketing?
In business development, the goal is to find and grow new markets for your company. This can be done by identifying needs in a specific market and then creating solutions that meet those needs.
Marketing is all about bringing awareness of your product or service to potential customers through advertising.
Business development focuses on finding and growing new markets while marketing focuses on advertising your product or service so people know about it.
3.Does marketing fall under business development?
Marketing is a business development process that aims to create, develop, and implement marketing plans for products or services.
Business development deals with the process of identifying market opportunities, planning how to seize them and putting in place effective strategies.
4.What do you mean by strategic marketing?
Each strategy should be measured and evaluated for their effectiveness. It is not enough to simply place an advertisement in a magazine or web marketing site, it must effectively help your business grow.
When marketing strategy includes sales and service, the results are much greater than when one of these two aspects is left out of the equation. All elements should work together towards achieving company objectives – otherwise all parts will lead you nowhere.
Strategic marketing is the strategic execution of marketing plans by organizations that have a clear marketing purpose in mind.
More specifically, strategic marketing provides a brief to management for how promotion activities will be determined and focused on accomplishing specific organizational goals. Strategic marketing considers which approach(es) will best accomplish those goals (i.e., traditional competition vs low-cost/ high-volume).
5.Who is a business developer?
Business developers work within a company to help direct business growth, often working in partnership with marketing and other departments.
Business developer's role comes from the activity of developing new opportunities for clients but they are not necessarily based arounds the sales process so they can manage projects that involve product strategy and global marketing communications.
Marketing should work with Biz Dev and not compete against it. Integration is key.
Marketing and business development are two teams whose goal is the same: improve bottom line revenue.
They are the core teams and should be inside the communication channel of the business (strategy, planning, positioning & sales execution), in addition to working with other internal departments.
Differentiation is essential for any company and a successful integration will create better results: new products sustain higher impulse purchases Sales Acceleration - marketing has never been more important than it is today - cannot be achieved without proper management structures that integrate salesforce and Biz Dev resources.