Why Business Development is Important
Why business development is important
Table of content
- What is business development?
- Business development activities
- Who is a customer?
- Benefits of good customer management
- What makes business development important?
There goes a saying, if you keep on doing what you have always been doing, you will always get what you have now… or less. Business development is a wealth-building game, which if you only focus on the next sell, then you will lose momentum!
What’s business development?
Most often, people mistake business development to mean just SALE, far from it! Business development is a broad circle that SALE is just part of.
It’s obvious that, business development is purely concerned with growth of customer base of a particular company or organization. That is to say, getting new customers that are loyal. And, on the other hand doing all it takes to retain the existing ones. Because, the closer you get to your customers who after all represent your market-place, the more clearly you see the services required to develop your business.
Business development activities
Your offer
This is the purpose of your business. This is the product or services you offer to the market. Your business must exist to provide solution to a particular problem.
Marketing
This aspect of marketing, it consists a series of activities to avail your offer (product or service) to the market. Meanwhile, making the public aware of your offer gonna helps your business development journey in many ways than one.
“marketing is not a functions but the whole essence of business seen from the customer eyes; this, the key to a company’s survival, profitability and growth in a highly-competitive market place is it’s ability to identify and satisfy unfulfilled customers needs”
Peter Drunker
What about Marketing mix?
Marketing mix is the set of tools and activities carried out by an organization to shape the nature of it's offer to their customers. A good marketer should be familiared with the products, price, promotion, and place aspects of the marketing mix. Moreover, in the recent time, the traditional four P's of marketing mix have been extended to the Seven P's with the addition of process, physically evidence, and people.
In other word, marketing mix is a business tool use in marketing product. The marketing mix is often crucial when determining a product or brand’s unique selling point( the unique quality that differentiates a product from its competition).
The product
This is seen as an item that satisfied what a customer needs or wants. It is either tangible goods or intangible service. By tangible, we mean a service based like : Hotel industry, tourism industry, and or codes-based products like cell phone load and credit.
While, the tangible products are those items that can be felt physically. The typical example of mass-produced tangible products are the motor card and the disposal razor. Whereas, the less obvious but ubiquitous mass-produced service is a computer operator system.
The price
This element is very closely associated with perceptions of value. Customers’ perceptions of value may be different and the intangible nature of the service product will make it difficult to evaluate. Many services are public services or charities and in such cases there may be no direct price.
When pricing, the marketers must be aware of the customer perceived value for the product. Hence, there basically three pricing strategies:
- Market skimming pricing
- penetration pricing in marketing and,
- Neutral pricing
Note: take into proper consideration, one, the reference value ( where the customer reference to the prices of competing products) and the differential value ( the consumer’s view of this product’s attributes versus the attributes of other products).
The promotion
This represents all of the method of communication that a marketer may employ to disseminate information to different parties about the product.
Advertising
This could be any paid form of non-personal communication through mass media that informs about a service, product or an idea by the sponsor. It is done through; print media, broadcast media, billboard, brochures and catalogs, direct mails, in-store display, motion pictures, emails, banner ads, web pages, posters etc.
Public relationship
It is important to create a good image in the sight of general public as the image of an organization is crucial point in marketing. If the reputation of an organization is bad, consumers are less willing to buy a product from this company as they would have been, if the company has a good image. Hence, public relations in business development is sin-qua-non!
Personal selling
This is a person-to-person process by which the smaller learns about the prospective buyer’s want and seek to satisfy them by making a sales. The example of these are: sales meetings, sales presentations, sales training and incentive programs for intermediary sales people, samples and tele-marketing etc. Also, it can be of face-to-face or through telephone contact.
Sales promotion
This could be any activity which offers and incentive but for a limited period to obtain desired response from the target audience or intermediaries which includes wholesalers and retailers. It stimulates consumer demand, market demand and improvement products availability. The examples are: contest, products samples, coupons, sweepstakes, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
In addition, this aspect of the marketing mix ( promotion) is closely related to the product features. Most especially that, there is no physical products to promote; then the marketers and managers as well rely solely on promoting and image.
The place
This is simply refered to the product at which is convenient for consumers to access. Place is synonymous with distribution. It involves certain strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketers to compliment the other aspects of the marketing mix.
More so, place or distribution aspect of the marketing mix is, in some ways, a virtual concept. There is no physical distribution system. Given that, the services are performed. However, the marketers need to have a suitable environment for that performance!
And, one more thing, just one important thing to take into account is that, the physical evidence also provided tangible clues for customers to evaluate the service. And, most often than not, it humungously contributes to the overall images and ambience.
The people
This is referred to the customer, employees, management and everybody else involved in it. It is very essential for everyone to realize that the reputation of the brand that you are involved with is in the people’s hand. Therefore, it is salient to trade with caution.
The process
This refers to the methods and process of providing a service. It is very essential to have a thorough knowledge on whether the services are needful/helpful to the customer. Are they provided in time? Are the customers well informed about the services? And many such things.
The physical evidence
This is referred to the experience of using a product or service. When it goes out to the customer, it is essential that you help them see what they are buying or not. For example: brochures, pamphlets etc. Serve this purpose.
Selling
This aspect entails about acquiring new customers. But, in this aspect, you should be very careful to not to loose your existing customers along the way of getting new ones. As the saying goes “a bird in the hand is worth two in the bush”, so be cautious!
Customer management
You need to deliver your solution so that you retain, expand and leverage your customer base. Always remember this, 21st century customers always have certain needs and wants. Oh wait, do you ever take your time to think over what exactly your customers want from you in person and your business? The question may sound silly, as to WHY your customers would have to want anything from you other than the products or services you offer? Of course the real Why!
Well, this is what they always want – they always want feel appreciated and needed. Because, that means so much to them!
Remember , you are asking these people to give you their hard-earned money in exchange for your products or services. Is not this a pretty big request?
Therefore, it’s pretty much clear that you need your customers much more than they necessarily need you. They have other places to make their purchase from – therefore, you dire need them because they are the strongest pillar onto which your business destiny rest.
I am sure, you are in haste to know what those customer’s WANTS are? And how they contribute to the business development? If that’s the case, here you go. They are categorically three as follows:
Compassion
This plays a vital role in customer management. When your customers come to you with a problem, they want your care and any possible efforts to understand their problem. Don’t let them, in anyway, feel their problem is of little concern to you and your business. Let them feel you will do whatever it takes to sort out their problems.
Concern
By this word, we simply refer to your ability to be genuinely concerned not about anything or anyone but your customers. This is simply translate to giving them the best service when needed. And also being aware of their changes in beeds and wants.
It can go to the extent that, you call few of your customers a week before and item goes on sale. Based on their purchase history, you make them aware of the relevant sales. This will not only blown your customers away with the fact that you remember them and what they purchase but, they will feel their business is appreciated! And, this will, in a gigantic manner, impact your business growth/development.
Sincerity
If you are not sincere in your thoughts and actions, it will be very obvious to most people. And , this is very corrosive to your business growth. Sincerety as it is in this context, it is not something that needs to be practiced and mastered but, only requires your effort to learn to appreciate your customers and what they represent to you.
As you begin to respect your customers, you will see the reason to help them. And by frequently repeating this process , your honest sincerety will start to grow by itself. Hence, your business development goal is achievable!
Partnerships
You need to join hand with other firms. As the saying goes “two good heads are better than one”. This is gonna give you great chance to expand your opportunity. And also, it says much about your business security. A good partnership will be mutually beneficial. Consider the benefits of becoming a Preferred Partner with The Diamond Lab.
Feedback
This is paramount in business development, its gives you a glimpse of light about what your customers say or think about your products and what is the better way to serve them.
Therefore, it is no longer a myth that business development is cyclical-a feedback loop, which has the power and potency to improve, recreate and enhance your performance. The power of business development lies within that cyclical nature.
That’s not enough, customer feedback can be either positive or negative. It is worth knowing as well as useful to take account of what and where the business is getting it right or wrong.
The business is said to have positive feedback when it receives information from satisfied customers confirming that the business is doing something just right/well! It encourages and motivates staff to do more. However, it is obviously considered negative when a business receives information from an unhappy customers. Though, it is not that worse, as it is a vital indicator about what you may need to be done to gain and keep hold your customers. When a customer complains, it is a blessed opportunity, grab it. It is like a found diamond in the rough. The worst customer is he who is unhappy about your products or services and decide not to tell you about it. This means WAR!
Who is a customer?
A customer could be anyone who receives a product – either a goods or services from a particular organization. In most scenario, customers have to pay to obtain the goods or services but, this is not always the case. Some customers do not pay directly for the service they received i.e The students
Internal customer
These categories are the members of staff or outside suppliers that contribute towards the service provided to the external customers. They include :
- Colleagues
- Managers/Supervisors
- Staff in other functional departments.
A good customer service to internal customers will help to engage excellent working relationship between colleagues, managers, and staff teams. To a great extent, these relationship are important if the business is to function effective.
External customer
These are the people that are usually associated with the term customer i.e those who actually use an organization’s goods or services. Most likely, they could be people living around the immediate environment whenever your organization is located.
Something worth remembering is that, there are certain occasions in which a business comes into contact with external customers. However, It is beyond the transactional pace, much more than that. These contact paces are but not limited to:
- The moment customer is inquiring about the product.
- While taking a customer order/payment.
- And, when delivering a product.
- So also, when handling a complaint or problem.
- When making repairs or doing some maintenance.
- Providing after-sales care.
Benefits of good customer service
The potential benefits to the fame from providing a consistently high level of customers service included:
- Increased sales – more likely to try out other products/services too.
- Customer loyalty – more likely to be a source of repeat business and to recommend the business to friends and family.
- Enhanced public image – helps build a brand and provides protection if there is a slip-up in customer service.
- More effective workforce – satisfied customers help create a positive working environment.
Is business development important?
here we go..
It is very important because it helps growth oriented companies or organizations to expand their business objectives.
Also, It helps an organization to gain competitive-edge, market share increase, and boosting their shareholder values. And , it helps to achieve business sustainability and profitability. Similarly, it may also offer opportunities.
Moreover, it paves a way to establish strategic partnerships and alliances with other companies. So, it elevates a business to continue to flourish.
To sum up, business development is the most important drive of economic growth in various societies. And so, this includes; job creation, innovation, entrepreneurship, infrastructural development, above all skills development.
