In addition to the well-known B2C (business to consumer) and B2B (business to business) marketing, there is also B2G marketing. Such a model of cooperation between private business and state structures has its own legal basis, rules, and benefits. Let’s take a closer look at what B2G marketing is and explore its features.
What is B2G
Business to Government (B2G) is a business model that refers to entities that sell products, services, or information to governments or government agencies. It presupposes a multi-level decision-making system, a tender procurement structure, and complex project financing schemes. On the other hand, it ensures the attraction of administrative resources and large-scale transactions between companies and the state.
An essential feature of this type of business is the predominant use of eCommerce. Managers study qualitative characteristics and use them to make a choice in favor of the desired product or service.
Who are the clients
The state takes part in all the processes as a client. On behalf of the state in this case may act:
- state and city authorities (parliament, president’s office, cabinet of ministers, city council);
- law enforcement agencies (army, police, courts);
- health care facilities (hospitals, ambulance services, clinics);
- educational institutions (schools, universities, kindergartens);
- scientific and cultural organizations (libraries, scientific and research centers, theaters).
Forms of cooperation are organized both at the municipal level and at the level of the whole country.
Additionally, another way of interaction is private-public partnerships, which are created to solve complex socially significant tasks. In this case, the business invests funds in various state projects such as political marketing.
One of the main advantages of B2G is the possibility of long-term cooperation and orders. In B2G, a private company can get a client on behalf of the state for several months or even years, which is less common in ordinary business relationships.
On top of that, participation in public procurement and tenders is an opportunity to gain market share and improve brand reputation for companies without many years of experience. Since contracts for products or services are concluded with the state, the company is insured against fraud and other forms of risk.
Selling a large volume of goods is another plus. The state is the largest organization, so it may need large orders. A B2G company can find such a customer in the face of one of the government agencies and save time and money on finding smaller customers.
On the other hand, there are also a number of downsides to B2G. The existence of complex tenders is one of them. The supplier and executor of the state order are selected in a transparent tender system. In order to take part in the tender, the business should pass a multi-stage verification, be aware of the law, correctly fill out the documentation and meet certain criteria to receive an order.
Often, the company executing the state order is obliged to provide a guarantee of the quality of goods and services. If for some reason, the work is performed poorly, the contractor must fix or redo it. Moreover, the company has to do that at its own expense, which can be problematic and unprofitable.
Furthermore, at each stage of cooperation with the state, bureaucratic red tape can arise. In this way, decisions on simple issues can take a long time, and making quick changes to the planned actions can be difficult. Meanwhile, the most dangerous things can be related to potential delays in settlement.
B2G corruption is thought to be one more disadvantage. The corruption component lies in the requirements for the executor of the order. The state may deliberately set tender conditions such that only one company will qualify. This means that there will be only one bidder in the tender, who sets the price and receives the order without any competition.
B2G main communication channels
The most common communication channels that can be helpful in staying connected with decision-makers are a website and email. Let’s take a closer look at each channel.
If you are unable to communicate the value of your product through every action your business makes, having a useful product is not enough. Beginning with the optimization of your website to meet the requirements of your potential government customers, particularly in terms of SEO and User Experience, you may begin developing your identity and branding. Your website is your primary marketing tool, which may sound obvious to say, but far too many businesses still rely on poor website designs, unclear product or service offerings, and exaggerated claims about their capabilities.
B2G organizations should instead create engaging landing pages that are responsive and able to tell stories, solve problems, and highlight opportunities utilizing interactive content and appealing calls to action rather than relying just on website brochures. Videos and infographics are excellent tools for visual storytelling and for disseminating information. So use them too.
- Email marketing
Email marketing can help attract potential government clients. For example, an email newsletter is an excellent way to educate government agencies on your brand’s capabilities and products. The main issue here is that often such content looks boring. Adding an email signature with a sender’s image would be a great solution here because it makes your email communications more human. On top of that, you could improve the overall experience of your reader while interacting with your brand. Your email signature can include various clickable links and calls to action. See these email signature examples to get an idea of what a good email signature looks like. The best part, such a signature can be easily created with a few mouse clicks with the help of a professional email signature generator.
In simple words, B2G is when a business sells and markets to the government. Like any other business relationship, B2G has its own nuances, which we covered in this article. We also shared valuable info about the main communication channels for B2G. Let it guide you, but don’t limit yourself, try various tools, and see what works best for you.