SlideShare a Scribd company logo
How institutional buyers and
government agencies do their buying
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
On Contract basis
Then They asks suppliers to submit bids and often
Award the contract to the lowest bidder
Based on Quality and
Reputation
In some cases, they will make allowance for superior
quality or a reputation for completing contracts on time
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
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
Credit
KOTLER, P. & KELLER, K. 2011. Marketing
Management 14th Edition,Upper Saddle River,
NJ, Prentice Hall(With due thanks to the owners
of Photographs)
How do institutional buyers and government agencies do their buying?

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How do institutional buyers and government agencies do their buying?

  • 1. How institutional buyers and government agencies do their buying
  • 2.
  • 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)