By Pere Munar, on 10 January 2024
While much is said about the relationships companies establish with consumers or other businesses, there are also companies that need to market themselves to attract the attention of administrations and public entities. To capture the interest of these governmental entities, a business-to-government marketing or B2G model is implemented. Let's look into what this is, how it works, and its specific characteristics.
What Is the B2G Model and How Does It Work?
The B2G model, or business-to-government, refers to transactions or relationships established between a company and a governmental organization through digital marketing efforts.
In a B2G ecommerce model, strict compliance with certain commercial conditions and laws is essential, as transactions involve administrations and public companies belonging to the government. In other words, only companies meeting specific requirements can establish relationships and carry out transactions with governmental organizations.
Characteristics of a B2G Company and Its Marketing
A B2G company is one that provides products or services to government-managed enterprises. This means they focus on the public sector with the aim of fulfilling its needs.
It's crucial to note that the B2G model differs significantly from the buying and selling processes in B2C or B2B models. Companies must meticulously prepare tenders and participate in public tenders to secure a government entity as a client. Additionally, they must meet specific requirements and comply with regulations and standards that can vary based on the country and industry.
To succeed in a B2G market, understanding the government's needs is essential. It's important to realize that sales cycles are much longer, although they offer long-term stability, as contracts often span multiple years. Transparency is key, and stringent requirements regarding fiscal and accounting reports must be met.
Examples of B2G Companies
Several companies employ the B2G model. One example is Senseware, which provides hardware and software solutions, along with cloud data management. This enables governmental institutions to digitize and securely access their files. Opengov is another example, offering similar services by developing programs that facilitate the management of vast amounts of data.
Archer Soft is yet another example, offering services to the healthcare, automotive, and financial sectors to achieve the conversion of digital data and securely store it.
