Institutional and government markets: Strategies and initiatives
Pratap Chandra Mandal
Institutional and government markets constitute not-for-profit markets. Their orientation is to serve people in their care. These markets have specific characteristics which are different from that of business markets. They are characterized by low budgets and captive patrons. Companies serving institutional markets establish and maintain separate divisions to the specific requirements of institutional buyers. Government organizations are the major and bulk buyers of goods and services in most countries. Government organizations have specified processes to be followed by suppliers. Government buyers require to be aware about their business environment. Doing business with government organizations poses a number of hurdles. Suppliers require to follow formal procedures, the processes may be time-consuming, and face bureaucracy. Governments are trying to streamline the processes by adopting online buying which overcomes a number of hurdles. Companies dealing with institutional and government markets require to be aware about all these aspects to succeed in the long run.