Write briefly decision on the institutional and government market (1)

Answer

Write briefly decision on the institutional and government market

Institutional and government markets are not-for-profit markets. Institutional markets include colleges, schools, hospitals and prisons while the government market includes governmental units and state.

Explanation

When it comes to the buying decisions, the institutional markets have a low budget making them source for good quality products at a low price. For instance in a hospital, hospital’s agents ensures that the patients have food of good quality. The agents find a suitable supplier whose quality meets the standard and offer less price. With different suppliers having different demands, the marketers set separate division to meet the special needs of institutional buyers.

When it comes to the government market, sellers are the key decision makers. Sellers identify the factors that affect buyer behavior and their buying decision process. Government market does not need suppliers but it’s the government that selects those types of suppliers to have the lowest bids. The government makes some allowances for the suppliers having a reputation and superior quality. In addition, the government also buys on the negotiation contract basis.

Source

https://www.zabanga.us/sales-promotion/how-do-government-buyers-make-their-buying-decisions.