4 Keys to successfully sell to the government: Market Research
The largest customer in the world is the government. It buys all kinds of goods and services, both in big and small amounts. But the process of getting a government contract is long and complicated, with a lot of paperwork and red tape.
If you want to sell to the government successfully, you need to know a lot about the government market and their needs. And the only way to find out about that, is to do a thorough market research.
Market research is one of the most important keys to success when selling to the government. In fact, it should be your first step before you start selling to the government. You need to know who your potential customer is, what they want, and how to reach them. If you don't have this information, you'll probably waste a lot of time and money on leads that won't turn into sales.
In this post, we'll talk about market research for the government market and why it's important. If you're a business owner just getting started on government contracts, this post will tell you how much information you need to find out during your market research.
So, if you want to sell to the government, keep reading!
Table of Contents
- 1. • Why is it necessary to do market research before selling to the government?
- 2. • What are some of the benefits of doing good market research ?
- 3. • What information do you need to uncover during your market research ?
- 4. • How does Tendertube help you with Market Research?
- 5. • Wrap Up
Why is it necessary to do market research before selling to the government?
It's important to keep in mind that the government is a big, bureaucratic organization. So it is a good idea to take a step back and study this market first before doing anything else. And market research is the sure way to help you figure out how the government works and what they look for in a vendor.
Because the government is a complex customer with its own needs, requirements and ways of purchasing, market research can help you figure out what they want. This will help you come up with strategies on how to match your products and services to their needs in the best way..
If you don't do market research, there's a chance that what you offer won't match what the government needs. This could cause you to lose sales and waste time and money.
Additionally, market research can also help you learn more about your competitors, find possible business partners, and come up with strategies for success.
Knowing who your competitors are can help you come up with plans to take advantage of your competitors' weaknesses, and strengthen your position on the market. Also, it will enable you to set your prices competitively.
By taking the time to learn about the customer, the competition, and the market, you can increase your chances of success and make the most of the opportunity.
What are some of the benefits of doing a proper market research?
A good business person should never undervalue the benefits of market research. Properly conducted market research is the only way to help you make sound business decisions and to prevent costly mistakes when it comes to government sales.
Some of the benefits of doing market research are as follows:
1. It gives valuable insights about the target market, customers, and competitors.
Understanding the basics, such as who your customers are, what they want, how your products or services help them get what they want, and how much they are willing to pay for your products, can be the first step towards success in selling to the government.
2. It makes strategic planning easier
For you to successfully compete in government contracts, you need to have a plan and solid strategy in place.One of the things most business owners struggle with a lot is mapping your business strategy with government sales strategy. Going after government contracts is a strategic decision and not a tactical decision.
And if your plan is based on facts and you've done your own (and, ideally, ongoing)market research, you can be sure you've given yourself the best chance to reach your business goals.
3. It helps you strengthen your business position
Knowledge is power. Using market research to learn more about your customer and competitors is the sure way to understand and use your competitive advantage.
4. It greatly reduces risk of failure
One thing to keep in mind is that selling to the government is quite different from selling to private companies. There are more obligations for you which means more risks on your part. Performing market research can help business owners understand how much risk is involved in dealing with the government. Simply put, it helps you figure out decisions that need to be made to lower your chances of failing.
What information do you need to uncover during your market research?
There are a few key pieces of information you need to find out in your market research.
First, you need to figure out your target government customer.
You might discover that there are different kinds of government agencies and departments such as government ministries, parastatals, defense, hospitals, local councils etc.
So, who exactly buys what you sell?
What kinds of goods and services do they buy?
From whom do they buy?
At what price?
Second, you'll have to know how the government buys your products and services. What steps do your government agencies go through when they want to buy products or services?
Lastly, you need to be aware of government rules and regulations that could actually impact your business. For example, you can't do business with any government agency without PRAZ registration and Tax Clearance. Now, what are other compliance requirements that you need to meet in order to sell to the government?
If you know these key pieces of information, it will become much easier for you to sell to the government and get contracts.
How does Tendertube help you with Market Research?
1. With our Contract Awards feature, you can see who your competition is,and their pricing. Once you know that, you'll be able to determine your competitors pricing strategy. And then create your bidding strategy.
2. With our Tender Alerts feature, we'll let you know when a new tender comes out. You will find out which government agencies are buying your goods or services and what they are buying.Once you know that then you will be able to tailor your products and services to suit the government market.
3. With our Tender Archives feature, you can explore detailed information about tenders from the past three years. You will find out who has been buying your goods or services more frequently. Analysing and understanding past spending habits will help you to understand future spending trends.
If you’re thinking of selling to the government, make sure to do your market research first. It could be the difference between success and failure.
There are four key components of effective market research:
1) knowing your customer
2) knowing your product
3) knowing your competition
4) knowing your pricing
By understanding these four key components, you can develop an effective marketing and sales strategy and increase your chances of winning government contracts.
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