Marketers divide goods into two categories based on the types of consumers that purchase them. Consumer and industrial goods are the two types of products. Market goods are those that consumers purchase for their own personal use. Industrial goods, on the other hand, are those that are purchased for further production or use in a business process rather than for personal consumption.
There are goods that industries use but the end-user does not use it specifically.
There are many characteristics and features that ordinary consumers need in everyday life but industries only require them. As a result, goods are created with industrial needs in mind and are tailored to them. Thus, these items are industrial goods.
Three categories of manufacturing products:
Materials and components, capital goods, and sales and services are the three categories of manufacturing products.
Materials and parts are the types of raw products that are entirely consumed in the buyer’s product after manufacturing or as a portion of the manufactured goods. There are two kinds of materials and parts: raw materials and processed materials and parts.
Natural and far items are the most popular raw materials. Wheat, cotton, fruits, vegetables, and livestock are mostly produced by small farmers. They sell their goods to middlemen in the marketing process. Intermediaries will process and sell it. Natural goods, on the other hand, are greater in size and have a lower unit price ( production costs divided by the quantity produced). Furthermore, they necessitate extensive transportation. Petroleum, iron ore, and other natural resources must ship from one part of the world to another.
Manufactured materials and parts: Component materials and parts are the most common manufactured materials and parts. Component materials, such as iron or wool, are further processed, such as yarn being woven into clothing for sale. Component pieces, on the other hand, do not require any additional processing and they turn into the finished product. A tire purchased by Hyundai, for example, becomes a part of its vehicles. The majority of imported goods and components are sold directly to industrial users. The most important considerations in the selling of produced goods and parts are price and service. In their case, branding and advertisement are less relevant.
Capital Industrial goods:
Industrial goods that assist the customer with their output or operations are capital objects. This category primarily includes installation and accessory equipment. Buildings and fixed equipment are examples of installations. Installations include structures such as factories, offices, and warehouses, as well as fixed equipment such as lifts and generators. Installations are some of a company’s most important transactions, so there could be a lengthy period of deliberation before the final order. Since the procurement of installations entails a significant financial investment, businesses or customers weigh a number of factors before making a decision.
Additionally, consumers buy them directly from the manufacturers. Accessory equipment such as portable factory equipment, tools, and office equipment has a shorter life. They do not become part of the finished product, but rather help with the manufacturing process. For the selling of their goods, accessory equipment vendors depend on intermediaries such as distributors and resellers. The reason for this is that, although consumers are geographically at different places, they are numerous, and order sizes are typically small.
Supplies and Services:
Supplies and services are industrial goods that don’t make it into the final product. These include operating supplies as well as repair and maintenance products. They are similar to convenience products (consumer goods), in that they don’t take a lot of thought and contrast on the part of the customer. Operating materials such as coal, printing paper, pencils, and repair and maintenance products such as nails and brooms do not necessitate a great deal of buyer effort.
Maintenance and repair services, as well as business consultancy services, are examples of business services. Business services provide maintenance and repair services such as office cleaning and computer and equipment maintenance, as well as consulting services such as financial and legal advice. These services are normally provided under contract by the providers. Local companies provide maintenance services, while repair services are provided by the original equipment manufacturer.
Industrial goods Characteristics
1. Heavy Expenditure in Industrial Goods
The manufacture of products necessitates a significant amount of capital expenditure. The majority of companies that manufacture industrial products collect capital by selling securities and debentures, as well as borrowing from financial institutions.
2. The complexity of the products
Because of their technological existence, industrial products often tend to be complex. A layperson cannot determine the worth of such products. To evaluate them, one must possess technical expertise.
3. Market for Industrial Products Assumed
The demand for manufacturing products derives from the demand for consumer goods, that is, the demand for the products that they assist in the production influences it. The demand for soft drinks will decide the demand for a soft drink manufacturing plant.
4. Buyers are in short supply
The number of buyers of industrial products is small as compared to consumer and agricultural goods. Buyers like this can be found in many areas.
5. Demand that is inelastic
Industrial goods demand is relatively inelastic, meaning price changes do not affect it.
6. Purchasing is always a collaborative effort.
A person may make purchases of consumer or agricultural goods. In the case of industrial products, however, the procurement is usually made by a company or a team. Engineers, financial experts, and others may be on the team.
7. Industrial products have a higher purchasing value.
As industrial products have a high price, each purchase includes a very high sum. This is in contrast to industrial and agricultural products, where each purchase is often less expensive.
9. The seller's track record
In the market for agricultural products, the seller’s reputation is usually unimportant. It plays a role in the consumer goods market to some extent, particularly in the case of durable goods. In the case of industrial products, the seller’s credibility is crucial. Buyers often choose to purchase from reputable suppliers over an unknown source.
Another uncommon aspect of industrial goods marketing is that instead of selling the machinery directly, the seller may enter into a leasing agreement with the buyer. Consumer goods are exempt from this rule.
Businesses and individuals purchase industrial goods to help them achieve greater success in their operations. The primary goal of industrial goods is to incorporate them into company processes and benefit from them.
Myanmar Golden Heart is a true believer in providing dependable delivery to the rest of the world. Efficiency, confidence, and teamwork are the cornerstones of the business. They work with partners from all over the world to sell food, non-food, hardware, lubricants, and textiles to the most remote parts of Myanmar.