Capital Building

Understand the Government Market to Be a Successful Federal Contractor

Blog Title

Government purchases goods and services from the private sector companies. Just imagine, the scope of opportunity for private sector businesses or companies. You can also make a position in the federal market by selling your goods and services to federal agencies. In order to do that, you have to be a good federal contractor. You will be involved in dealing with government contracts. So the approach of working is different from doing business with the companies that are in the private sector.

Federal, state, and local governmental organizations are the main buyers in the government market. To grab the market opportunity you need to know the important aspects. Market research plays a significant role in making your business stand out. You need to showcase your contracting abilities and other things that validate your experience to the federal agencies.  

In this blog, readers will be able to figure out how the government market regulates, and how it is distinct from dealing with the businesses of the private sector. We will also talk about the important things that are associated with government marketing services and strategies. It will help them to market their contracting business in the government market which will help them to acquire more contracts and generate more revenue.

Distinct nature of government sector and private sector

Public sector organizations focus on providing services to the public as a whole. Private sector organizations mainly focus on building their entities in the industry to make a profit and contribute to a country’s economy indirectly. The government market consists of only necessary supplies and resources to benefit people.

Thus, the government marketing approach has to be different by setting suitable government marketing strategies. To do business with the federal agencies you must be well aware of all the rules and regulations as well as the procedures. The government also gives advantages to some kinds of businesses so in order to experience that you need to fulfill certain requirements. The government does take special care of the legalities of their purchases.

Specific procurement process

As we have already said that in order to do business in the government market, private companies need to acquire federal contracts. This involves a specific procurement process and companies need to adhere to all the required steps.

When a government wants to buy something, the government institutes place public bids. In return, the institutes get a wide range of offers from contractors. The government institutes choose the contractors that provide the lowest possible bid. The bidding process creates a fair situation for all the contractors in obtaining contracts.

The associated criteria also include a positive reputation of a company on the market and superior quality of goods and services.

So when you are planning to implement government marketing tactics, do showcase your company’s reputation and the quality of your goods and services. It will help to win government contracts.  

Strict contract monitoring

The government is obliged to show the spending decisions to the public. It is because the government makes purchases for the welfare and development of the country and its people. This sort of monitoring requires a lot of paperwork from sellers. Companies that work for the government often have a special department set for these purposes.

In your government marketing strategies, you need to set a price that is not overpriced but perfect depending on the quality. While carrying out the process of government marketing you need to justify the price that you have set for your goods and services. It will help you to convince the federal agencies and you will be able to acquire contracts.

Long sales cycles

Don’t think that it is a quick process, so don’t expect that you will execute your government marketing techniques and you will finish short sales cycles. It has been seen that comparatively the government has long sales cycles. The cycles are all B2B because government organizations make purchases from private sector companies. Accepting bids and choosing the offers can take up to several months. So that is why federal contractor often finds the sales cycles time-consuming and lengthy.

So remember, in the process of government marketing you need to target the federal agencies and not the public. Don’t create a government marketing strategy has is focused on showcasing the goods and services to the public.  Your marketing tactics should support the lengthy procurement process and create a long-lasting positive impact on the federal agencies.

Give preferences to certain sellers/contractors

The government prefers specific types of sellers or contractors. For instance, the government prefers to choose domestic suppliers over foreign suppliers. It is because the government wants to support the local business which will contribute to the development of a country and the economy. Government support non-profit organizations because it is charitable businesses are solely developed for the welfare of the society, the environment, and the economy. The government also supports depressed firms, small businesses, and minority-owned companies. No chance of discrimination is encouraged in the process of acquiring federal contracts.

So think, if you have or your business has any sort of disadvantages or your business falls into the category that will help you to get government support then do showcase that in the process of government marketing. Put emphasis on the factors that will help you experience all the perks and benefits from the government.

The minor role of marketing 

Federal contractors in the government market reduced the marketing budget. It has been seen that sometimes they keep zero budget for government marketing. That is not a good idea. It is true that there is no need for frequent government marketing activities and a robust government marketing strategy. Though in order to make a position in any market, federal contractors have to show their existence and convince their buyers that they have the quality and potential to meet the expectations. The procurement process does not rely on brand awareness but in order to validate your experience and strengths you have to show something or the other. The government will not buy from a contractor who has negative reviews or no experience.

In fact, there are so many government marketing consultants who provide consultation on government marketing strategies and activities.

Government marketing services

In this section, we have mentioned some of the most popular and common types of government marketing services.

  • Marketing strategy.
  • Marketing technology.
  • Creative advertising.
  • Content marketing.
  • Social media.
  • Data analysis.


So if you are planning to become a federal contractor or you are already one but struggling to win government contracts then do utilize the shared information. Understand the differences between the public and private sectors and also understand how the government market works. According to that, try to fit your business in the market and develop abilities to deal with the federal agencies. Don’t forget to enjoy all the perks that the government provides. If you are still confused then contact a government marketing consultant and position your business in the right way.


Also Read