Before going into the marketing strategies for the government market, it is necessary to understand the particular characteristics of this market. Some of the characteristics are mentioned as follows-
Constant Under Public Watch – Government and government agencies need to be very alert and particular while making their purchases. As they are using public money, the manner in which they are spending that money is constantly monitored. Hence, the governmentâ€™s decisions to procure goods and services are always under public scrutiny.
Purchase or Procurement Policy – When any government intends to procure goods or services, it has to go through a very detailed procedure that is defined under its purchase or procurement policy. Such policy involves these steps more often than not, asking for bids from the public, vetting of the bids, analysis of the bids and possible vendors, and allotment to the lowest bidder / competent bidder. Therefore, the government follows a very rigorous procedure when it needs to procure goods or services, which is not the case in the general market.
Long Processing Time – The time between the date when the bids were called for, and the date when the order is placed is generally longer in the case of the government. Even after getting the order and dispatching the goods, such departments take considerable time in releasing the payment. This happens due to the bureaucratic nature of the work, and the companies need to be patient while dealing with such government departments or agencies.
Constant Monitoring of Performance – Once the companies get the order from the government, the respective department would constantly be monitoring the progress of the work and would require lots of paperwork at each stage of work. Therefore, companies working with the government and allied agencies would be under constant supervision by the government.
Essential Qualities in Company to Marketing Effectively to Government
There are certain qualities a company should have if it intends to market its goods and services to the government successfully:
Clean Image – A company to be able to work with the government must have a clean image and should not be involved in any wrongdoing or questionable activities.
Legally compliant – Company should be in compliance with all the laws of the land and should not be a regular or major offender if it needs to be considered as a vendor for the government department.
Competitive Pricing – Government invites bids for their needs in order to ensure that it gets the goods or services at a lower rate or competitive rate. The company should be able to offer its product or service at a price that is lower than its competitors if it wants to get purchase orders from the government.
Execution Skills – Government requires its vendors to complete the task or deliver the products in a time-bound manner. It is essential for a company to have proven execution capabilities if it wants to successfully market its products and services.
Marketing to Government
Salient features of the government market were discussed earlier. It makes it clear that traditional marketing would not be of much use when the company intends to sell its goods and services in the government market. Advertising or brand building when the goods and services are meant for the use of government becomes redundant.
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