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Marketing Resources - home The Strategic Marketing Process Introduction: What is marketing? Part 1: Develop your strategy
Part 2: Create tools & processes Part 3: Generate & manage customers
Part 4: Support tools
Conclusion: What happens next? |
Business Development in the Marketing Process
“Business development” in the Marketing M.O. refers to high-level partnerships that generate revenue, create better products and/or increase efficiency. These partnerships can help you
In a true partnership, companies collaborate to achieve a common goal. It’s more than a short-term promotion such as a special offer or marketing to each other’s customers. Instead, it’s an agreement to do business together while sharing responsibilities, resources, risks and rewards. For example, here are three examples of true partnerships:
The first step in a successful partnership is structure; the right arrangement aligns both companies toward an important common goal. The second step is execution; a partnership should be managed like any business with careful attention to detail, solid communication and focus on the end goals. With the right structure and management, your business development deals have the greatest potential for success.
Since these partnerships involve multiple departments in each company, there are usually a number of people involved in the deal. It’s often an executive or high-level “biz dev” person leading the process for each company, although in small companies a sales or marketing executive will take the reigns. However, creating a partnership is more complex than pure sales -- it requires a solid understanding of the business and operational objectives of multiple organizations. Key concepts & steps
You can think about business development at any time. It’s common to identify potential partnerships during annual planning time, so many companies start pursuing deals after finishing a new marketing plan. Identify potential partnerships Brainstorm to identify partnerships that can help you meet your goals. For example, there may be related companies with customer relationships in a different market; you may have vendors or suppliers who can help you improve your products or firms that can help you round out your services. Think about structure as well – the resources each party would provide, how the partnership would be managed and what each party would invest and earn. A good “biz dev” person has a broad understanding of business strategy and operations; s/he can also can negotiate and close a complex sale. It’s a different skill set than many sales reps offer, but you may have a rep or executive on your team who can do these kinds of deals -- or you may tackle it yourself. Pitch a partnership Develop a strong pitch to capture the attention of your potential partners; focus on the high-level benefits for each party. As you move through the sales process, cover all aspects of the partnership including detailed structure and terms. Share responsibilities, resources, risks and rewards You have a much stronger chance of success when a partnership is balanced. As you negotiate the deal, make sure your interests are completely aligned and that each party is contributing in all areas.
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