Business-to-Government

What Does Business-to-Government Mean?

Business-to-government (B2G) is a business model that refers to businesses selling products, services or information to governments or government agencies.

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B2G networks or models provide a way for businesses to bid on government projects or products that governments might purchase or need for their organizations. This can encompass public sector organizations that propose the bids. B2G activities are increasingly being conducted via the Internet through real-time bidding.

B2G is also referred to as public sector marketing.

Techopedia Explains Business-to-Government

Governments are contained within the federal, state and local arenas. Governments typically work with prenegotiated contracts and they’ve usually vetted out contractors they’ve used before or for whom there are standing contracts that might be grandfathered in. Types of B2G techniques called integrated marketing communications encompass Web-based communications as well as strategic public relations and electronic marketing.

Government bids are solicitations that originate from businesses that have something a government needs. The solicitations may be in the form of reverse auctions where sellers are competing to obtain business. The American Recovery and Reinvestment Act of 2009 has spurned the use of B2G.

Social platforms such as LinkedIn, Facebook and Twitter can be part of this vertical market, although businesses largely neglect this form of B2G selling. Businesses can provide documents such as a "Statement of Capabilities" which outlines the abilities, products and services of a company that wishes to contract with government agencies. This document will frequently accompany a "Proposal of Service" that can be supplied when submitting contract bids.

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Margaret Rouse

Margaret Rouse is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical, business audience. Over the past twenty years her explanations have appeared on TechTarget websites and she's been cited as an authority in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine and Discovery Magazine.Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages. If you have a suggestion for a new definition or how to improve a technical explanation, please email Margaret or contact her…