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)”