Business-to-government (B2G),Market Business News
What is B2G or business-to-government? Definition and examples
accessed 31 August 2020 also known as business-to-public-administration (B2PA) or business-to-public-sector (B2PS) refers to trade between the

business sector In economics, the business sector or corporate sector - sometimes popularly called simply "business" - is "the part of the economy made up by companies". It is a subset of the domestic economy, excluding the economic activities of general gover ...

as a supplier and a government body as a customer playing a major impact in

public procurement Government procurement or public procurement is the purchase of goods, works (construction) or services by the state, such as by a government agency or a state-owned enterprise. In 2019, public procurement accounted for approximately 12% of GDP ...

. Business-to-government also includes the segment of

business-to-business Business-to-business (B2B or, in some countries, BtoB) refers to trade and commercial activity where a business sees other businesses as its customer base. This typically occurs when: * A business sources materials for its production process for ...

(B2B) marketing known as ''public sector marketing'' — a form of business-to-business-to-government (B2B2G) phenomenon, which encompasses marketing products and services to various government levels—

local Local may refer to: Geography and transportation * Local (train), a train serving local traffic demand * Local, Missouri, a community in the United States Arts, entertainment, and media * ''Local'' (comics), a limited series comic book by Bria ...

, state/provincial, and national—through integrated

marketing communications Marketing communications (MC, marcom(s), marcomm(s) or just simply communications) refers to the use of different marketing channels and tools in combination.Tomse, & Snoj, 2014 Marketing communication channels focus on how businesses communicate ...

techniques such as strategic public relations, branding, marketing communications, advertising, and web-based communications. B2G is a fundamental market, alongside

Business-to-Consumer Direct-to-consumer (DTC or D2C) or business-to-consumer (B2C) is the business model of selling products directly to customers and thereby bypassing any third-party retailers, wholesalers, or middlemen. Direct-to-consumer sales are usually transa ...

(B2C) and

Business-to-Business Business-to-business (B2B or, in some countries, BtoB) refers to trade and commercial activity where a business sees other businesses as its customer base. This typically occurs when: * A business sources materials for its production process for ...

(B2B). It is a relevant marketing and sales area, distinct from B2B or B2C. Other terms used are business-to-administration (B2A); and public procurement (PP). It combines elements of

business administration Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization. Overview The administration of a business includes the performance o ...

public administration Public administration, or public policy and administration refers to "the management of public programs", or the "translation of politics into the reality that citizens see every day",Kettl, Donald and James Fessler. 2009. ''The Politics of the ...

marketing Marketing is the act of acquiring, satisfying and retaining customers. It is one of the primary components of Business administration, business management and commerce. Marketing is usually conducted by the seller, typically a retailer or ma ...

communications Communication is commonly defined as the transmission of information. Its precise definition is disputed and there are disagreements about whether Intention, unintentional or failed transmissions are included and whether communication not onl ...

political science Political science is the scientific study of politics. It is a social science dealing with systems of governance and Power (social and political), power, and the analysis of political activities, political philosophy, political thought, polit ...

, and several other fields in order to facilitate trade between the

private sector The private sector is the part of the economy which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government. Employment The private sector employs most of the workfo ...

and

public sector The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, pu ...

. The B2G domain is relevant: the public sector represents 54% of EU GDP, 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. 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. 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 Reverse or reversing may refer to: Arts and media * ''Reverse'' (Eldritch album), 2001 * ''Reverse'' (2009 film), a Polish comedy-drama film * ''Reverse'' (2019 film), an Iranian crime-drama film * ''Reverse'' (Morandi album), 2005 * ''Reverse'' ...

. 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 California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...

's MAS Multiple Award Schedule will recognize the

federal government A federation (also called a federal state) is an entity characterized by a political union, union of partially federated state, self-governing provinces, states, or other regions under a #Federal governments, federal government (federalism) ...

contract holder's prices on a

General Services Administration The General Services Administration (GSA) is an Independent agencies of the United States government, independent agency of the United States government established in 1949 to help manage and support the basic functioning of federal agencies. G ...

Schedule.

References

E-commerce Marketing by target group Information technology management {{Government-stub

See also

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