Question

How do institutional buyers and government agencies do their buying?

Answer 1

Answer:

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1. INSTITUTIONAL AND GOVERNMENT MARKETS

2. Institutional markets provide and services to people in their care. They are characterized by low budgets and a captive clientele.

3. ● Government Markets are major buyers of goods and services. ● They typically require suppliers to submit bids and often the contract is awarded to lowest bidder.

4. ● The government also buys on a negotiated contract basis, primarily in the case of complex projects involving major R&D costs and risks.

● Considerable paperwork is required from suppliers.

5. ● The procedures followed by the government are very elaborate and have to meet legal requirements.

 6. Global tenders are floated for large projects inviting tenders from international suppliers.

7.Disclaimer: ““These slides were created by Shine Ali, MES Cochin, during a marketing internship

Hope you liked the answer.

Explanation:

Answer 2

Answer:

There are two sorts of market. Like-

• Institutional markets
• Government markets

These two have different characteristics and wishes.

Institutional markets:

• Schools, colleges, hospitals,  home , prisons and other organizations that provide goods and services to people in their care are commonly  referred to as  institutional markets. This institution differs from  each other . Because  all of them  have different motive and goals.
• Many institutions have low budgets and captive patrons.  for instance , patients in any hospital have little  option to  make any decision but they can make a choice about the food they eat or not that provided by the hospitals. Hospital’s agents can make  a far better  decision for ensuring food quality for the patients. Because, if they select better food, patients never refuse  to require  this.

Government markets:

• Many companies enjoy large opportunities  within the  government market.  regardless of  whether the company is large or small,  all kinds  of companies can enjoy these facilities. In many countries, government organizations are  the main  sources of goods and services for buyers.
• In this market, sellers are the key decision makers. Only sellers can easily identify the factors that affect buyer behavior and their buying decision process. Government market doesn’t need suppliers but  the govt.  selects those types of suppliers to have the lowest bids. Sometimes,  the govt.  makes some allowances for the suppliers having a reputation and superior quality.  the govt.  also buy on the negotiation contract basis.
• Government organization provides facilities to domestic suppliers than foreign suppliers. Favoritism is one  quite  complaint that every country faces.

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