Kotler-Analyzing Business Market-Question 6

1. How institutional buyers and
government agencies do their buying

3. DMU
First of all They form a DMU a decision making unit or in plain language;
a committee that draws up a list of wants and needs

4. On Contract basis
Then They asks suppliers to submit bids and often
Award the contract to the lowest bidder

5. Based on Quality and
Reputation
In some cases, they will make allowance for superior
quality or a reputation for completing contracts on time

6. Online
Now a days Web-based catalogs are there that allow
authorized defense and civilian agencies to buy everything
from medical and office supplies to clothing online

7. Summary
The institutional market consists of schools,
hospitals, nursing homes, prisons, and other
institutions that provide goods and services to
people in their care. Buyers for government
organizations tend to require a great deal of
paperwork from their vendors and to favor
open bidding and domestic companies.
Suppliers must be prepared to adapt their
offers to the special needs and procedures
found in institutional and government markets

8. Credit
KOTLER, P. & KELLER, K. 2011. Marketing
Management 14th Edition,Upper Saddle River,
NJ, Prentice Hall(With due thanks to the owners
of Photographs)