S1 - Intro

Question 1

What exactly is business development?

Answer 1

Business development is the creation of long-term value for an organization from customers, markets, and relationships.

• Long term value: creating opportunities for that value to persist over the long-term
• Customers: no business if they’re not here
• Markets: entering new markets important gateway to unlock LT value
• Relationships: Building, managing, and leveraging relationships that are based on trust, respect, and a mutual appreciation of each other’s value is fundamental to enabling the flow of value for the long-term

Question 2

How de we measure “Long-term value for an organization”?

Answer 2

Value LT = (Revenue - Expenses) / (1+r)^t

Question 3

How did the role of the sales function change?

Answer 3

Before: Taking orders, product and specialist knowledge

Now: Customer relationship management

Question 4

What are the three aspects to master to sell value-based?

Answer 4

1. Understanding the customer’s business model
2. Crafting the value proposition
3. Communicating the value