Public sector procurement, also known as Business to Government (B2G) procurement, is the process whereby businesses in the private sector sell products, services, or works to central or local government bodies. The concept sounds simple, but matching public sector organisations with suitable suppliers can be tricky without the right know-how.
There are several public procurement methods, but we’re going to look at dynamic marketplaces (DMs) and touch on dynamic purchasing systems (DPS) to see how they impact B2G marketing – one of the most specialised marketing fields of them all.
First of all, what is a dynamic market?
Dynamic markets comprise a list of pre-approved suppliers. Public sector buyers award contracts to these pre-qualified suppliers only. This simplifies, shortens, and streamlines the procurement process, saving time and money, and enhancing efficiency for buyers and suppliers alike.
Now, let’s go into more detail.
Dynamic Marketplace vs. Dynamic Purchasing System vs. Framework Agreement
A DPS is kind of like a blend between a framework agreement and a dynamic marketplace. Suppliers are pre-approved before they can join a shortlist of qualified suppliers that have the kind of business offerings that specific contracting authorities need.
The primary difference between a DPS and framework agreement is that new suppliers can join the DPS marketplace at any time. The submission period of frameworks is limited to a specific window. The extended open period of a DPS is great for encouraging competition and innovation among suppliers and ensuring that the public procurement market is always up to date with the global trends.
The primary similarity between a dynamic marketplace and dynamic purchasing system is the “open door” policy – suppliers can join at any time, provided they meet the qualifying criteria. Both enhance the procurement process, making it smoother, simpler, and quicker.
Why the Dynamic Marketplace Matters for Public Sector Suppliers
Dynamic marketplaces are a great route for new and local suppliers and SMEs to enter public sector procurement. Contracts are usually straightforward, off-the-shelf purchases without any major demands or complexities. They also tend to be relatively low-value, making them accessible to small businesses and medium-sized enterprises.
Their simplicity also means that onboarding processes are easier and faster, so actual work starts earlier, which immediately saves costs.
One of the biggest benefits for suppliers is the ongoing opportunity to win contracts with public sector buyers. For example, just because one contract is awarded, doesn’t mean that that’s it, there’s nothing else available. New opportunities for selling to the government crop up all the time, throughout the duration of the marketplace.
The tricky bit for suppliers is distinguishing themselves from the competition. Because all the suppliers in the pool have been pre-qualified, there’s little difference between their core services, goods, or works. They must step up their game to provide greater value than their competitors. This kind of stiff competition is perfect for developing innovative solutions, which is great for public sector buyers and the market in general.
The Role of Marketing in Dynamic Purchasing Systems
One of marketing’s primary roles is ensuring brands, products, or services are positioned to attract the attention of interested parties. It’s about being front of mind, but that’s not all.
It’s also about reputation, credibility, trustworthiness, experience, and value. B2G marketers must do all of this while operating within fairly rigid restrictions. The public sector is bound by regulations and compliance requirements that don’t affect private sector marketers. So, B2G marketers must understand their limits and find creative ways to optimise their marketing campaigns accordingly.
Some of the tools at their disposal include:
Digital marketing
Digital marketing includes everything that emphasises or extends your digital presence, so:
- Specific landing pages on your website, for example, a landing page for a new product or service or a temporary landing page dedicated to an upcoming event.
- Capability statements that highlight your core business offerings, strengths, and past success. They must be tailored to meet a specific contract’s requirements.
- LinkedIn targeting places your ads in front of decision-makers and influencers who can sway the decision your way in a tight competition.
Content marketing
Pretty much all content you publish online can be used in a public sector marketing strategy, but the most effective types of content include:
- White papers: Great for establishing thought leadership and spreading innovative ideas.
- Case studies: Great for demonstrating your practical skills and the effectiveness of your innovative solutions.
- Webinars: Great for advertising your expertise, extending your reach, and making announcements, like new products or partnerships with other industry experts.
Practical Tips to Boost Visibility and Win Work on a DPS
What can you do to optimise your presence on a dynamic purchasing system?
- Refine your supplier portfolio on the platform. Use keywords and phrases, both primary and related searches, be specific about your region, and your target value.
- Use targeted content to support credibility and capability. Take your lead from your capability statement.
- Like calls to like, so it’s important to show public sector buyers you share common ground and fully understand their pain points. That means aligning marketing efforts with things like value for money, social value, mission, and ongoing innovation.
Dynamic Marketplaces Are On The Way Up
Dynamic marketplaces are becoming increasingly popular in public sector procurement, due largely to their simplicity, efficiency for off-the-shelf contracts, and open nature, which enables suitable suppliers to qualify at any point during the contract.
They are sufficiently different from other types of public procurement to require a different approach to marketing. That’s where specialist B2G marketing agencies, like Cadence Marketing, come in.
We have extensive experience in public sector marketing, developing strategies for public sector customers that can be adapted to a range of requirements, including dynamic marketplaces.
We’re glad to be of assistance, so contact us for a free consultation to talk about building a B2G marketing strategy that works in a dynamic marketplace.
