0208

Problem

Fearing red tape and mounds of paperwork, Tom Bronson, president of B&E Electric, has always avoided the government market. A recent discussion with a colleague, however, has rekindled Tom’s interest in this sector. What steps should B&E Electric take to learn more about this market?

Step-by-step solution

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Step 1/2

There are three markets in the business world. They are the business market, consumer market, and the third one is unique and different called the government market. The government market is mounted with paperwork and with red tape.

Step 2/2

Before entering the government market, the following information has to be understood. Here, B electrics and Mr. T should first understand the different marketing strategies that the government market focuses on. The first and foremost thing that should be considered is the rules and regulations. The government market is full of complex rules and standards that one must meet. Secondly, it is necessary for C electrics to develop agencies that can get information from the government offices. This is the only way in which the procurement plans can be easily made available. Thirdly, the government market gives more focus on innovative products. Thus, B electrics should invest more in the research and development team to respond to the government's needs. Fourth is that there should be a communication strategy for B electrics that can help to develop technologies that meet changing government needs. Further, it is also important to have a negotiation strategy for B electrics. This is to secure favorable terms with the government in relation to contract completion, cost, and payment cycles.