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bidding


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The process in which potential suppliers submit their offers (or tenders) in response to a published requirement. This process is normally competitive. Competitive bidding is one dimension of selling, particularly in a business-to-business market. There are always judgements to be made around the balance of value, price, actual cost, and the desire to win the contract. For many, the physical and oral presentation of the tender to the potential client is the ‘sharp end’ of marketing, when the potential client judges all attributes of the potential supplier, including the specific proposal. Competitive bidding principally benefits the buyer, given that it creates an impartial environment that is likely to drive value for money efficiency. It also helps to ‘educate’ the buyer by giving him a lot of information on various competitors and their offerings. This process is increasing for large-scale purchases, and is almost mandatory for large government contracts. See also sales.

Subjects: Marketing.


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