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MGT301 Principles of Marketing GDB 2 Solution Fall 2012

The premise
In business markets, large opportunities are available for companies of all sizes as the governments are the major buyers of many goods and services. Usually government units open tenders/bids for the required goods and services through newspapers to avail best prices and suppliers. To enter or penetrate into government’s market, the vendors focus their efforts in the pursuit of identifying key decision makers, key requirements of requisition and understand the buying decision process. The governments usually prefer local suppliers over foreign suppliers. But in government markets, some inadmissible practices are also prevailing to secure the tender/bid even if the prices are not competitive. For example, paid dinners, commissions, country tours with family and even share in the organization are offered to key decision makers. Suppliers treat such practices as selling tactics and even multinational companies are indulged in such practices.
Point of Discussion
Think from both angles, as government agent and as a supplier, and discuss the following question.
Is the practice of local and multinational companies dealing in government markets to offer special favors to key decision makers justified? Generate sufficient number of arguments in the support of your answer. Discuss with reference to Pakistan.

Solution:
Yes in practice practice of local and multinational companies dealing in government markets to offer special favors to key decision makers as  they offer paid dinners, commissions, country tours with family and even share in the organization are offered to key decision makers.Suppliers treat such practices as selling tactics and even multinational companies are indulged in such practices. Government prefer local supplier but final decision is makes by key decision makers. so other supplier try to offer some personal benefits to key decision makers in order to get the tender. they offer personal benefits to them. There are certain ethics in the business which must be followed by all businessmen especially the marketers. These ethics are developed by different companies in their own way which suits their environment. Marketing involves many tactics to promote and sell the products. These vary from company to company. An unethical action may be ethical for some other company. Competitors are taken the top consideration. In order to penetrate into the Governments Markets, marketers adopt different methods and techniques to capture their share. Key decision makers and spotted and targeted to do so. Now its the moral obligation at the end of Government employees to be honest and loyal to the government. Once Pakistani government employee are bribed then it become very easy for a particular company to get the tender passed.

Government organizations typically require suppliers to submit bids, and normally they award the contract to the lowest bidder. In some cases, the government unit will make allowance for the supplier’s superior quality or reputation for completing contracts on time. Government buying has emphasized price, making suppliers invest their
effort in technology to bring costs down.


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