How do institutional buyers and government agencies do their buying

INSTITUTIONAL AND GOVERNMENT MARKETS

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

● 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.

● 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.

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

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

Disclaimer:““These slides were created by Shine Ali, MEC Cochin, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow (See www.IIMinternship.com)”