Business-to-government
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Business-to-government (B2G), also referred to as business-to-public-administration (B2PA) or business-to-public-sector (B2PS), describes commercial transactions in which businesses supply goods or services to government entities acting as customers.[1][2][3][4]
The concept is closely related to public procurement and may also include marketing activities directed toward government institutions at the local, regional, or national level through public relations, branding, advertising, and digital communications.
B2G is commonly discussed alongside business-to-consumer (B2C) and business-to-business (B2B) markets as one of the principal commercial interaction models. It integrates elements of business administration, public administration, marketing, communications, and political science to facilitate exchange between private-sector suppliers and public-sector organizations.
The B2G domain is relevant: the public sector represents 54% of EU GDP,[1] and 47% of US GDP. Public sector procurement amounts to 14-20% of GDP. In the European Union, the public procurement market is 13.6% of the GDP, i.e. 2 trillion Euro, spent by 250,000 public authorities.[2]
More than 60% of Fortune 1000 companies are active in the B2G market, with government customers generally having a positive impact on a firm’s value.[3]
Public-sector organizations generally post tenders in the form of requests-for-proposals, requests-for-information, requests-for-quotations, and sources-sought, to which private suppliers respond. Business-to-government networks provide a platform for businesses to bid on government opportunities that are presented as solicitations, in the form of requests-for-proposals, through a reverse auction.
Government agencies typically have pre-negotiated standing contracts vetting the vendors/suppliers and their products and services for set prices. These can be local or national contracts, and some may be grandfathered in by other entities. For example, in the United States, California's MAS Multiple Award Schedule will recognize the federal government contract holder's prices on a General Services Administration Schedule.[4]
See also
[edit]- DTC or B2C (direct-to-consumer or business-to-consumer / retail)
- B2B2C (business-to-business-to-consumer)
- Business marketing
- G2B
- Hit rate
- Industrial marketing
- Marketing
- Tendering
References
[edit]- ^ a b "Public spending ratio in EU countries 2021". Statista. Retrieved 2023-03-10.
- ^ a b "The Public Procurement Data Space (PPDS)". single-market-economy.ec.europa.eu. Retrieved 2023-03-16.
- ^ a b Josephson, Brett W.; Lee, Ju-Yeon; Mariadoss, Babu John; Johnson, Jean L. (2019). "Uncle Sam Rising: Performance Implications of Business-to-Government Relationships". Journal of Marketing. 83 (1): 51–72. doi:10.1177/0022242918814254. ISSN 0022-2429. S2CID 169462621.
- ^ a b "Multiple Award Schedule". www.gsa.gov. Retrieved 2023-11-24.
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