- characteristics
- Specialty Buyers and Sellers
- Rational purchasing power
- Relationship between buyer and seller
- High transaction value
- Complex product lines
- Quality and price
- After sales support
- Types
- -Natural materials
- Agricultural products
- Natural products
- -Raw materials and manufactured components
- Manufactured Materials
- Manufactured parts
- -Elements of capital
- Facilities
- Teams
- -Supplies
- -Company Services
- Consulting services
- Maintenance services
- Examples
- Agricultural products
- Natural products
- Manufactured Materials
- Manufactured parts
- Facilities
- Teams
- Supplies
- References
The industrial products are the property used by a company for business use itself. They are different from consumable products, which are goods purchased by individuals for their personal and family use.
A company that sells products to another company for business consumption is an excellent example of business-to-business or B2B marketing. Industrial products are based on the demand for the consumer items that they help to produce. They are classified as production goods or support goods.
Source: pixabay.com
Producer goods are used in the creation of a final consumer product, while support goods help in the manufacturing process of consumer goods, such as machinery and equipment.
They are perhaps less interesting than consumer products, but industrial product markets are often significant in terms of market size. For example, all manufacturers of consumer products need to purchase industrial materials in order to operate.
characteristics
Specialty Buyers and Sellers
The buyers of industrial products are the companies themselves. Therefore, they have more experience and specialist requirements. These are often strictly professional buyers.
Rational purchasing power
The decision and drive to buy industrial products is rational, compared to consumer products, which are bought primarily out of emotional need.
Relationship between buyer and seller
It is necessary to give the greatest emphasis to the necessary management to be able to strengthen the relationship with the client as much as possible, so that business is repeated.
High transaction value
The value of a purchase is often substantial in a single transaction. For example, through a mass purchase contract.
Industrial products are generally priced higher due to their complex nature and limited target market.
Complex product lines
Industrial products are often complex in nature, because they can be very technical. Those who use them must be highly qualified.
Quality and price
As much emphasis as possible should be given to product quality and price, where acceptable alternative products are available. The price is often negotiated by the buyer.
After sales support
For industrial products, the greatest requirement is that there is after-sales support.
Types
-Natural materials
Agricultural products
They are products that can be easily reproduced or recycled. They are present in sufficient quantities. However, due to their nature they are perishable and must be handled as such. Since they are commonly used, marketing is difficult to apply to them.
Natural products
They are products that appear naturally on earth and, therefore, cannot be recycled or reproduced.
The price depends entirely on the reliability of its supply and changes continuously. Government intervention for these products is also high.
-Raw materials and manufactured components
Manufactured Materials
Any process that requires the raw material to be processed to make a final product is part of the type of manufactured materials. In this case, the price and the commercialization of the product depend on the raw material used.
Manufactured parts
If you are making small components that play a role in larger products, you are making it as an industrial product.
The price and availability of the manufactured parts is more important than advertising, branding or marketing.
-Elements of capital
To make any large-scale manufacturing business possible, capital elements are used. These are included in the column "Balance sheet assets".
They are necessary elements for the operation of the organization and are very useful to invest in the long term.
Facilities
They are used for quite a long time. There are few middlemen when a company purchases a facility such as a production plant. Design is critical and there is a complete absence of marketing.
Teams
They are both heavy machinery and small equipment. They are sold mainly through intermediaries, although the larger the teams, the greater the direct involvement of the brand.
-Supplies
They are all the products or consumable materials necessary for the daily operations of a company.
They are traded through intermediaries and not directly through companies. Regular product sourcing is more important than marketing.
-Company Services
They are generally third-party services that are provided to companies. For example, business maintenance or consulting services.
Consulting services
Any business that exists requires a licensed accountant. This accountant can be hired or it can also be a company that runs the business.
Similarly, areas such as legal advice, advertising and marketing are carried out by business agencies, which provide services to industries.
Maintenance services
A maintenance service is for example cleaning windows or repairing printers and copiers, something that is best left to the professionals.
Examples
Agricultural products
Some common products of this type are cheese, eggs, fruits and vegetables, cotton, wheat, etc. In this area they are used to transform them later into finished products.
Natural products
Gasoline, diesel or oil are products that can be classified as industrial products. These are found in bulk and the rarer they are, the higher their value.
Manufactured Materials
If the supplied iron is used to make a final product, then that is an industrial product. In the same way, the yarn is woven to make final products: dresses and clothing in general.
If the yarn used to make the fabric is of very high quality, the price of the final product will be high and the commercialization will also be done with a high-level marketing.
Manufactured parts
Ball bearings are the perfect example of manufactured parts. There are so many ball bearing manufacturers out there that their marketing has become tedious, as there is no differentiation between them.
Facilities
Facilities such as factories, warehouses and other buildings are important items that can be sold directly to companies.
Teams
The equipment in the case of factories will be machinery, trucks, cranes and others. The equipment in the case of industrial services will be computers, design equipment, printers, copiers, etc.
Restaurants also purchase industrial kitchen equipment and machinery to prepare food in a large-scale kitchen.
Supplies
The sheets of white paper required for the operation of a business office are a good example of supplies. A single office in a large company may require thousands of sheets of paper per day for printing.
Paints are a form of maintenance supply. Cleaning services are another form of supply.
Pens, notepads, and automotive lubricants are all part of the daily required operational supplies. Staplers and printer inks also belong to this group.
References
- Neil Kokemuller (2017). What Are Industrial Products? Bizfluent. Taken from: bizfluent.com.
- Hitesh Bhasin (2018). Classification of Industrial products - Industrial products classification. Taken from: marketing91.com.
- Tutor2u (2019). Consumer and Industrial Products. Taken from: tutor2u.net.
- Evan Tarver (2019). Industrial vs. Consumer Goods: What's the Difference? Taken from: investopedia.com.
- Industrial Product Guide (2016). Types of Industrial Products. Taken from: industrialproductguide.wordpress.com.