Difference Between Marketing and Business Development

Businesses are constantly on the outlook for strategies that can improve operations hence more gains. While the importance of marketing in an organization cannot be emphasized enough, business development also plays an important role in building a brand. However, these two terms are often used interchangeably despite the differences between them. This can be blamed on the assimilation of the roles of marketers and business developers in some organizations. In this article, we will lay out the differences between marketing and business development. 

What is Marketing?

Marketing refers to a series of activities undertaken by a commercial entity to create interest and awareness as well as facilitating the sale of products and services to prospective consumers. 

A strategic marketing plan should take into consideration the organization’s benefits, messages and capabilities. Based on the marketing strategy, the marketing department should then execute marketing tactics and ensure all information is accurate and consistent. 

To ensure profitability, marketing aims at matching consumers to a brand’s services or products. To effectively market products or services, marketing must incorporate the four Ps of marketing in its strategy. These include:

• Product- Usually in intangible and tangible forms, these are attributes including functions, features, uses and benefits that are capable of use or exchange. Products can be services, ideas or goods. 
• Price- This is the monetary value attached to a product or service. A product’s price should include all costs involved including marketing costs, production costs and distribution expenses. 
• Place- This is the distribution of products or services to the consumers. It demonstrates the extent to which a given product covers a certain market coverage. Market coverage is based on the method the company intends to distribute its products. This can be done via an online platform, a physical store or both. 
• Promotion- These are tactics used to attract prospective consumers into making a purchase. Examples of promotion methods include sales promotions, sponsorships and public relations. 

Marketing plays a vital role in the success of a business such as:  

• Creating an effective avenue for consumers to interact with the brand
• Helping build and maintain the reputation of a company
• Building a relationship between consumers and businesses
• Providing insights about a product or service
• Boosting product sales hence increasing revenue

What is Business Development?

This is the creation of long-term value for a business through ideas, activities and initiatives in relationships, customers and markets. Building strategic business partnerships and business decisions result in increased profitability, business expansion and business expansion. 

Among fields involved in business development include strategic initiatives, market development, sales, marketing, business partnerships and business expansion. However, these should not be mixed up with business development. 

Business development plays a huge role in:

• Partnerships and strategic initiatives- Businesses looking to enter new markets may have a simpler way by forming partnerships with other firms. The business development team can weigh the benefits and the risks of each available option. 
• Product management- The requirements of a product may differ with different consumers or even geographical locations. Business developers come in handy in determining cost-effective and legal ways to getting products accepted in other markets. 
• Networking, negotiations and lobbying- Business developers may be needed to carry out business negotiations with government agencies, regulators and other third parties. 
• Setting cost-cutting measures- Business developers may need to carry out internal assessments to determine some cost-saving initiates in a business.  

Similarities between Marketing and Business Development

• Both aim to generate and nurture leads

Differences between Marketing and Business Development

Definition

Marketing refers to a series of activities undertaken by a commercial entity to create interest and awareness as well as facilitating the sale of products and services to prospective consumers. On the other hand, business development is the creation of long-term value for a business through ideas, activities and initiatives in relationships, customers and markets.

Focus

Marketing focuses on matching consumers to a brand’s services or products. On the other hand, business development focuses on the creation of long-term value for a business through qualifying leads and converting them into clients.  

Marketing vs. Business Development: Comparison Table

Summary of Marketing vs. Business Development

Marketing refers to a series of activities undertaken by a commercial entity with the aim of creating interest and awareness as well as facilitating the sale of products and services to prospective consumers. On the other hand, business development is the creation of long-term value for a business through ideas, activities and initiatives in relationships, customers and markets. The two, however, work together. If marketing is done right and generates interest from prospective customers, business development ensures the leads are not lost by nurturing them. 

Sharing is caring!