Sales versus Business Development

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Sales versus Business Development
Vinod, Member
What exactly is the difference between a sales executive and a business development executive? Any suggestions welcome...

Sales & Business Development
Business development looks for new applications for the product rather than the regular use.

Diference SE versus BD
Ricardo Trevizo, Member
The difference is that BD is looking for new names in the target target. BD generates new customers to the firm.

Difference Between Sales and Business Development
bala, Member
My point of view is that a Business Development Executive is superior to a Sales Executive.
A sales executive will think about how to sell products to different customers.
A business development excecutive will think how to develop the business like new product development, extending the business unit, etc.

Difference Between Sales and Business Development
Lebona Tsotetsi, Member
- Marketing is a demand creation activity
- Sales is a demand realisation activity
- Development is an active initiation activity
- Business is a for-profit commercial activity
Therefore, it is clear that business development involves sales AND marketing in addition to other critical operational activities for the purpose of making a profit, thus it is more complex than sales.

Business Development versus Sales
Thomas Johansson, Member
A definition that is used in IBM for large deals is that a business development executive deals with the first parts of an engagement (identification, value prop etc) and a sales executive takes over and closes the deal.

Business Development Guides Sales
Omar Khodr, Member
Generally speaking, a business development executive guides the sales team on upcoming long term objectives, goals, trends and advises on must win opportunities ahead of time.
Sales execs deal with day-to-day activities to achieve short term objectives and ensure meeting the budget as well.
All in all, they complement each other and should always work together closely, keeping their communication open and listening well to the customer.

Sales versus Business Development Executives
S Shyam Prasad, Member
In fact business happens by
A) Need identification and creating an offer to satisfy the need.
B) Promoting the offer and positioning it in the mind of the customers so that the customers want to use it.
C) Selling the offer to the targeted customers and collecting the revenue.
Although marketing as a function takes care of all the above three stages of business, the marketing manager/executive takes care of point A above.
Sales takes care of point C above the job of sales manager/sales executive.
Point B along with newer uses of the offer and thereby identifying newer target markets are assigned to business development manager/executive.
These activities are so close to marketing that no wonder, some organisations call the people taking care of these responsibilities marketing executives.

Sales Executive versus Business Development Executive
Uditha Liyanage, Member
Sales Executives focus on today's business and Business Development Executives focus on tomorrow's business.

Sales versus Business Development
S K Bal Palekar, Member
An underlying concept is "Customer's Buying Journey". Sometimes, initially the customer does not even know that he has a problem that needs to be solved. In such case you need to make the customer realize the problem first and only then you can begin further contact. Business development generally focuses on this first stage such a customer journey.

What is Typical for a Business Development Executive
foyez, Member
To me.. A business development manager should relate a product to the customer needs; he has to understand this himself first and then the only thing is to take market share... Basically its all about expansion and market share.

Sales versus Business Development
  • A SALES REPRESENTATIVE normally sells existing products or services to existing customers, which may even approach the firm or shop by themselves.
  • A NEW BUSINESS SALES REPRESENTATIVE sells existing products to new prospects, which then become customers.
  • In business to business (B2B), a BUSINESS DEVELOPMENT EXECUTIVE finds new application of products, is searching for new markets, studies competitive products and suggests changes in existing products or in the price structure, demands for new practices, disciplines, certificates to remain relevant in the present market segment or to expand the market segment.
    In short, he/she conveys the customer voice to the organization and arranges suitable transformation.

Sales Executive and Business Development Executive
Felian Maefair Anne, Member
@Thomas Johansson: I think your explanation is short and simply understood. You've given the most accurate description in my opinion.

Sales vs Business Development
Isaac Adesanya, Member
Both are subset of marketing and are interwoven in a natural way.
Business Development (BD) precedes Sales.
BD includes researching to identify and develop new products/services or improving/upgrading/modifying existing products/services.
BD aims to expand the scope of business either vertically or horizontally.
BD maximises the marketing potential of the organisation business using SWOT analysis.
BD takes into consideration some elements of critical thinking and perpetual strive for constructuve innovations.
BD has indirect effect on the organization bottom line.
Sales on the other hand complements the process of BD. It ensures that the efforts of a BD manager comes to reality.
It's like the team work in a football team (attackers, defenders and the keeper).
Sales stands as a motivating factor for more future products/services development.
Sales has a direct effect on the organization's bottom line.

Sales Management versus Business Development
James Mudzikitiri, Member
@MANISH KUMAR: I would add that Business Development looks at more than the distribution of the product. BD may include a feasibility study, the demographics, the traffic flow, sustainability of particular locations which sales management generally has no time for.
In smaller organizations and those whose product is not about volumes but about value, the BD function is lumped up in Sales Management.
However in organizations where the product's success comes from volumes and a wide distribution network the functions have to be separated with clear roles for each.
Note that the dynamics in 1st and 3rd world countries are very different.

Sales versus Business Development
shobha H, Member
Sales and Business Development are both functions of the marketing organization of any organisation. The degree of their roles being intertwined varies from one industry to another. But normally "Business Development" is identifying platform, markets and new clients for the organisation's products or services while Sales' responsibility is to close deals and generate revenue for the company.

Sales versus Business Development
Henry Ayoroh, Member
Business Development is a systematical means of researching and developing new markets and target customers for a product and is also streamlining existing products to meet customer needs.
Sales is involved with the end part, closing. Sales brings in the revenue.
Marketing starts and comprises mostly of BD, but can't do without sales.
BD also deals with feedback and reactions of existing customers from the sales team.

The Difference between Sales and Business Development.
Laboy, Member
@Bala: I agree because a Business Development Manager not only deal with the sales, but also with other decisions, even beyond marketing decisions.

Business Development is Broader then Sales
amanya, Member
Sales are more focused on marketing, their activities therefore mainly concentrate on the market mix to achieve sales.
Whereas business development considers all stakeholders in order to achieve its objectives. Their activities will involve looking at the shareholders' expectations, government requirements, employees, and other individuals within and outside the organization.
That's why business development is a lot broader then sales.

Business Development is a Strategic Role
Tony Reeve, Member
Business Development is a misused label.
  • Some sales people are given a Business Development title, maybe because it sounds less direct, but they are still sales.
  • Business Development is also used to define the role of staff that converts marketing qualified leads (from the web site) into sales leads.
The 2 roles described above are operational ones. Selling the same products within the same markets, normally with a short term revenue focus.
But BUSINESS DEVELOPMENT AS A STRATEGIC ROLE is about developing business with a mid to long term revenue focus. This could be by developing new products and/or new markets. As a strategic role, it could also involve forging new partnerships and even identifying companies for acquisition.

Chief Business Development Officer (CBDO) - My Job Description
Charles Collins, Member
The role of Chief Business Development Officer (CBDO) is expected to have a broad and comprehensive knowledge of all matters related to the business of the Company with an eye towards identifying new sales prospects and driving business growth, and requirements for product development that will be coordinated with R&D functions. CBDO responsibilities include but are not limited to:
  1. Elaborate business development plans, design and implement processes to support business growth, through customer and market definition.
  2. Facilitate business growth by working together with clients as well as business partners (co-marketing partners, JV partners, technology providers, etc.).
  3. Build and maintain high-level contacts with current and prospective customer and other business and project partners.
  4. Drive prospects through to contract award (including identifying new customers and markets, developing approaches to the market, identifying prospects, proposal preparation, etc.)
  5. Develop marketing strategy.
  6. Develop Applications and other Systems.
As you can see, this particular job description supports other comments in this discussion which define the role of Business Development as a multi-functional hybrid crossing over key operational and planning areas of the business including:
a) Product Research & Development
b) Market Analysis
c) Direct & Indirect Distribution Channels
d) Brand, Product & Service Strategy.

The Difference Between Sales and Business Development
Sales is working on promoting and selling goods, products or services to the market. The activities consist of selling existing and new products to the current market.
Meanwhile, business development is developing new markets, new networking and promoting, advertising and offering new services. Business development also enhances the activities in the business chain.

Business Development versus Sales Development
Jayaram, Member
BD is focused in finding out new products / new markets / new technology. This function is called market to market (M2M). This comprises of the leader of M2M and under him there could be a team of R&D / technology / manufacturing / marketing / automation / etc. people.
The scope of BD is to develop, test, prove new ideas and hand them over to sales.
The sales function is just about finding existing or new opportunities and sell what the company has to offer.

Business Development versus Sales Management
Ishmael Molutsi, Member
I think the former is about creation of opportunities through strategies whereas sales is about disposal (selling) products/services by establishing who wants those business opportunities for their benefit.

CBDO - my Job Description
Charles Collins, Member
@Jayaram: Yes this is very close to the role I currently occupy.

Sales and Business Development Require Different Thinking
Alfred Ocka, Member
Sales persons need more pragmatic thinking, oriented at current situations and actions.
BD persons need to see, plan and construct things to serve in the future; things that are still not visible today.

BD versus Sales
Bruno Catherin, Member
@Ricardo Trevizo: Business development is less aggressive than sales. In my view, you realize BD mainly with an existing customer, you perform sales activities on targets in a market.

My Job Description
Charles Collins, Member
@MUNI DAVE: Yes, this is very close to my current job description.


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