Government Markets

The government market offers big opportunities for many companies, big and small both. In most of the countries, government organizations are chief buyers of services and goods. Government purchasing and business buying are same in many ways. But there are also differences that ought to be understood by companies that desire to sell services and products to governments. To succeed in the government market, sellers ought to locate key decision makers, recognize the factors that influence buyer behaviour, and understand the buying decision procedure.

Government organizations typically need suppliers to submit bids, and usually they award the contract to the lowest bidder. In some of the cases, the government unit shall make allowance for the supplier's superior quality or reputation for finishing contracts on time. Various companies that sell to the government have not been marketing oriented for many reasons. Total government spending is finding out by elected officials instead than by any marketing attempt to develop this market. Government buying has emphasized cost, making suppliers invest their attempt in technology to bring price down. When the product's characteristics are particular carefully, product differentiation is not a marketing factor. Nor do advertising or personal selling matter much in charming bids on an open-bid basis.