Types of Products Consumer Products and Industrial Products

They start with raw materials and go through a production process before they become consumer products. Products can be divided into convenience products, shopping products, specialty products, etc. Products aren’t just physical items; they can be intangible too, like services or virtual products like software and in-app purchases for mobile games. Consumer buying behavior is focused on the individual, while industrial users focus more on the derived demand for a product.

Specialty Products

Understanding industrial products aids in efficient resource allocation. By identifying which products are in demand, businesses can allocate resources, such as inventory and production capacity, more effectively. This prevents wastage and optimizes operations, akin to steering a ship in the right direction. The buying process for industrial products is often a collaborative effort involving professionals with technical expertise. Engineers, procurement specialists, and other professionals evaluate and make purchasing decisions based on detailed analysis and technical specifications. Companies rely on operating supplies to keep their businesses running, such as paper, pens, and cleaning products.

What are Industrial Products? Features, Types, & Examples

This article will help you identify the different types of products out there and provide an overview as to how they can fit into your business. The providers of these services usually offer them under a contract. There are small businesses that offer maintenance services what are the industrial products whereas the repair services are available from the manufacturer of the original equipment.

Raw materials

Marketers begin with developing product classification schemes to formulate effective marketing strategies. They classify products and services into two broad categories based on the types of consumers that use them. Similarly products like heavy machinery and robotics might be used by car manufacturers but not by end users or customers. The types above can be classified as industrial products as they are more suited to an industrial and B2B setup. There are certain scenarios in which the same product might be used by both industrial and consumer groups. A computer may be used by a consumer as well as industry but the uses of it might be very different.

Business goods have demand inelasticity since their demand is derived, that is, based on the products they are made from. Recently, Dan decided to expand his market and offer cold storage services to attract new customers. However, industrial goods are necessary to the creation of consumer goods. Haircuts and car washes are typical examples of consumer services. This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. The content on MBA Skool has been created for educational & academic purpose only.

1. Building strong relationships with industrial customers is essential for long-term success.
2. A tyre is a finished product for a business, but to be actually used in the market, it needs to be fitted on a car, cycle, or bike.
3. Refining processes help refine the item for specific use cases, so it can be put to its best possible use.
4. The types of Industrial goods are raw materials, component parts, major equipment, accessory equipment, operating supplies, and services.
5. Ensuring that each part functions correctly is vital to the overall performance and longevity of industrial systems.

Different types of industrial products come with different risk profiles. Understanding these risks, whether related to supply chain disruptions or changes in customer demand, enables businesses to implement risk mitigation strategies. It’s akin to preparing for unexpected weather; you bring an umbrella when rain is forecasted.

Providing multiple options for customers can be beneficial, as shoppers are more likely to make decisions based on the comparison. Most of the manufactured materials and parts are sold to the industrial user directly. Consumers do not consciously want or actively seek out unsought goods.

Difference between Consumer Products and Industrial Products

Industrial goods companies often engage in business deals with other companies. The examples include a construction company buying cement in bulk at 10% less than the market price. Apart from domestic transactions, they are also often imported and exported.

“Unsought goods are goods that potential customers do not yet want or know they can buy. Those goods that the consumer buys on a very regular basis plans for the purchase, and tends to be somewhat brand loyal. Ballpoint-pens soft drinks, pickles, tobacco products, etc., are usually considered as staple goods. Brand loyalty for these particular products stems from the desire to simplify the buying process by automatically selecting one brand and minimizing purchasing time. Industrial and consumer goods occupy distinct niches in the market.

Strategic, data-driven investments can help you make improvements across the value chain. To stay competitive, organisations must be able to integrate new resilient business models and technologies to accelerate and adapt. All the while, addressing critical risk, tax and assurance issues across the globe. PwC collaborates with industrial product companies to help tackle today’s challenges and find new ways to create value and realise the vision for tomorrow. Our solutions, which are human-centered and tech-powered, help to build trust and deliver sustained outcomes.

Component parts are smaller pieces that make up finished products. Examples include nuts, bolts, and other hardware used in automobile manufacturing or components used to build computers and other electronics. Unlike convenience goods, shopping products are those for which the consumer typically does research and comparison shopping before making a purchase. Abhijeet Pratap is a passionate blogger with seven years of experience in the field. Specializing in business management and digital marketing, he has developed a keen understanding of the intricacies of these domains. Through his insightful articles, Abhijeet shares his knowledge, helping readers navigate the complexities of modern business landscapes and digital strategies.

Manufacturers are constructing smart factories while building a global presence and enhancing supply chains. And as you build and grow, you must balance innovation with risk, regulatory and legal shifts and market considerations. A highly skilled digital workforce has become critical to keeping pace with this evolving industry. PwC can help your employees unlock their full potential and the potential of digital manufacturing. We help to identify and fill talent gaps, improve engagement and build a culture of performance. Additionally, it’s important to make sure customers have access to a wide range of choices when it comes to these products.