Institutional markets like governments are major buyers of goods and services, typically requiring suppliers to submit bids where the contract is often awarded to the lowest bidder. Considerable paperwork is required from suppliers as government procedures are elaborate and must meet legal requirements, sometimes floating global tenders for large complex projects that involve major R&D costs and risks and are negotiated instead of awarded solely based on price.

1. INSTITUTIONAL AND GOVERNMENT MARKETS

2. Institutional markets provide and services to
people in their care. They are characterized by
low budgets and a captive clientele.

3. ● 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.

4. ● 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.

5. ● The procedures followed by the government are very
elaborate and have to meet legal requirements.

6. ● Global tenders are floated for large projects
inviting tenders from international suppliers.

7. Disclaimer:
““These slides were created by Shine Ali, MEC Cochin,
during a marketing internship by Prof. Sameer
Mathur, IIM Lucknow (See www.IIMinternship.com)”