Business Development Lifecycle

Question 1

What is business development?

Answer 1

The ability to generate revenue that sustains the business

Question 2

How do you increase the probability of winning bids?

Answer 2

By positioning services early and building strong customer relationships, organizations improve the probability of winning a contract

Question 3

What are the four positions an organization can be in with a customer?

Answer 3

• Unknown Position
• Known Position
• Improved Position
• Favored Position

Question 4

How can an organization move to a favored position with customers?

Answer 4

• Effective Marketing
• Opportunity
• Sales Activity

Question 5

Known Position

Answer 5

Using brand, market, messaging, and early sales strategies, companies develop a known position in relation to potential customers

Question 6

Improved Position

Answer 6

Effective relationship-building strategies and selling skills can advance company into an improved position with potential customers

Question 7

Favored Position

Answer 7

Organizations collaborate with customers to develop a business case based on customer needs, issues, and hot buttons. This collaboration builds trust and helps put companies into a favored position with customers

Question 7

8 Phases of Business Development Life Cycle

Answer 7

1. Market Identification
2. Account planning
3. Opportunity Assessment
4. Opportunity Planning (Capture/Win)
5. Proposal Planning
6. Proposal Development
7. Negotiation
8. Delivery (Ongoing Customer Relationship)

Question 8

Market Identification

Answer 8

Identify markets using market risk assessment. Market risk is highest for opportunities with new customers and new products; market risk is lowest fr opportunities with existing customers and existing products. Organizations must constantly assess and reevaluate their markets, identifying new market segments and validating current markets

Question 9

Account Planning and Positioning

Answer 9

An account can be a prospective customer, an existing customer, an entire organization, or a single buying unit within a large company. Account planning invlves long-term positioning with a potential customer and is an ongoing activity across the business development lifecycle. Phase includes marketing activities that position an organization in the market and with specific target customers.

Account planning requires an unbiased assessment of current account activity and future potential business opportunities. Account plan consists of historical account information, buying history, key customer, personnel, and decisionmakers, and strategies for penetrating or growing an account.

Question 10

Opportunity Assessment (Identification & Qualification)

Answer 10

• Preliminary bid/no-bid decision on specific opportunity
• Marketing team works in collaboration with sales to identify and qualify potential opportunities
• Can use third-party sales opportunity tracking programs to track and monitor future bidding opportunities
• Questions to consider at the opportunity assessment phase
  
  1. Is there an incumbent on this opportunity?
  2. What is the incumbent’s performance?
  3. Who are known competitors?
  4. Are there possible unknown competitors?
  5. Can we win? Can we deliver profitability?
  6. Do we need to team up with another organization?
  7. What will it cost us to bid?
  8. Will bidding this opportunity better position us for future opportunities?
  9. Does this opportunity fit within our strategic plan and vision?

Question 11

Opportunity Planning

Answer 11

• Continues through proposal submission
• 4Cs:
  
  1. Customer: need basic understanding of customer’s situation, needs, hot buttons, issues, and biases
  2. Competition: analysis of competition; identify whether there is an incumbent, known competitors, or potential unknown competitors