What is Industrial Product? Features, Types, & Examples

industrial products meaning

This category comprises industrial products used to make, process, or sell other goods. These include machinery, typewriters, computers, automobiles, tractors, engines, and so on. Unlike raw materials, parts usually have been processed before being used in the finished product. Although they may not be visible, parts are left intact and assembled into the total product.

They include component part buyers such as car manufacturers, those who purchase and install machinery, and distributors or anyone else who buys for resale. There are various characteristic and features which are not required by the normal customers in day to day life but only are required by the industries. So products are designed keeping in mind the industrial requirement and specific to them. Industrial products are one of the two categories of products, the other being consumer products.


However, at a particular time, businesses purchase products for both consumption and further processing purchase, e.g. when a business buys snacks for its employees. The raw material is an industrial product that businesses use for the production of other products. Natural resources like livestock, agricultural products, oceanic products, mineral water, and forest products fall under the category of raw material. The raw material usually loses its original state during the process and the final product.

  • Marketers consider goods primarily in terms of whom they are being targeted.
  • It’s because the category of consumer products is so vast and diverse to make any sense when you’re making any strategy.
  • There are other key differences between both industrial and consumer goods including buyers.
  • Emergency goods are closely similar to impulsive goods because you don’t plan for them.

Products like glue having high adhesive strength are not required by people in day to day to life but are key requirement for various industries like automobile, leather etc. Similarly products like heavy machinery and robotics might be used by car manufacturers but not by end users or customers. B) Maintenance and repair services – There is a difference between repair goods and repair services.

Final Words: Product Classification Requires for Developing Effective Marketing Strategies

They classify products and services into two broad categories based on the types of consumers that use them. As such, it is necessary that you should first understand the different types of industrial products, and their nature, and apply relevant marketing strategies. For example, trolleys, small power tools, forklifts, display racks, etc. 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.

industrial products meaning

Specialty products are very expensive, however, customers are ready to pay for them. Consumers are very loyal to a brand, and if there is no availability of product they want to purchase from, they do not move to another brand. Examples may be, a specific brand of cars, photographic equipment, high-end mobiles, watches, expensive suits, etc. Let’s move into these consumers as well as industrial types of products. The above was 5 of the major classification of Industrial products and the numerous sub classes within them. Depending on the abilities of the small business or the large business, they can contribute to one sub class or another.

The marketers of industrial goods usually supply the goods directly to their customers. Wholesalers, retailers and others who work actively in the consumer and agricultural goods markets are generally absent in the market for industrial goods. The buyers of consumer goods may not hive absolute knowledge of the goods they buy. This is something which is always important in the marketing of industrial goods. The seller must ensure regular repair and maintenance service to the buyer. These are the goods fundamental for business organizations to smoothly run the production process.

Business services

They have a short span of life when compared to installations, but as compared to the life span of normal operating supplies (paper, pen) they have a longer life span. These equipments are sold mainly through intermediaries, though larger the equipment, more is the involvement of the brand directly. In the sale of equipments, personal selling plays a major role as compared to marketing and advertising. These are the industrial products that are to some extent already processed and assembled to make final products.

Quantinno Capital Management LP Scales Back Investment in … – Best Stocks

Quantinno Capital Management LP Scales Back Investment in ….

Posted: Fri, 04 Aug 2023 18:22:01 GMT [source]

Specialty products are usually costly consisting of a high-profit margin and you could only find them in the limited stores. The reason they’re available in a limited number of stores because the customers won’t accept the brand from any store. Consumer products are the products that the customers buy for the sole purpose of consumption, instead of reselling it.

Impulse goods

Once understanding the types of products is necessary to understand the definition of the product. To understand what product the consumer wants and design a product that full fills that want analyzing the levels of the product are important. Industrial products are usually standardized then consumer products that require frequent changes in fashion and style. As the complexities industrial products meaning of business increase, so does the need for a specialized service. Professional services like accounting, advertising, marketing research, legal advice, and management consulting rely on more and more. Accessory equipment is marketed through intermediaries because the buyers of those products are scattered over a large geographic area, and individual purchase volume is small.

Curtain Rising on Era of ‘diplomatic War’ over Semiconductors – The Japan News

Curtain Rising on Era of ‘diplomatic War’ over Semiconductors.

Posted: Fri, 04 Aug 2023 23:00:00 GMT [source]

But because they are commonly used, there is hardly any marketing applied to them. Some common products include cheese, eggs, fruits and vegetables, cotton, wheat etc. The supplies of farm products come from small producers, and they use various intermediaries to sell their products. Natural product producers are usually limited in number and bulk quantity.

Differentiating industrial goods from finished goods is not only helpful in defining various segments of the production process. In some nations, the tax debt for these goods is significantly lower than for finished goods, while in other areas there is no tax debt accrued on industrial goods at all. Personal selling and after-sales service are generally more important for industrial products. Advertising is an important promotional tool for consumer products, but may not be so in the case of industrial products.

industrial products meaning

The concept of product not only relates to the physical product but also the benefits offered by the product. Hence, it can be said that a product is a mixture of tangible and intangible features, a consumer can exchange for a value in return to satisfy their needs. Products can be classified into two categories; viz., Consumer Products and Industrial Products. Components parts are the goods that have gone through the processing phase and the finished product of the previous industry. They may seem ordinary, but they’re the assembling parts of the final product. The producer would directly install the equipment, and the accessory equipment would comprise the fax machine, calculator, tools, etc.

Convenience products further can be subdivided into three categories like staples, impulse, and emergency. Learn the definition of a consumer good and understand how it differs from a producer good. Overall, there are many sub parts of the major classes, and each of them has a separate role in the classification of Industrial products. @giddion – I am an artist, so I suppose that my industrial goods would be paint, canvas, and paintbrushes, among other things. I have been keeping up with every receipt from the art supply store, so if I actually sell any of my paintings, I will be prepared to do my taxes.

These raw materials undergo some type of fashioning or transformation in preparation for use in the manufacturing of different kinds of goods and services. At times, these raw materials are leftovers from the creation of other products, as with the remnants of oil sludge that are used to create various types of artificial fibers. Those fibers are eventually used to manufacture upholstery for furnishings, car seats, and various other textile products. Sometimes referred to as intermediate or intermediary goods, industrial goods are any type of products that are used in the production of other goods.

Such brand products have got unique features that differentiate their brand from the rest. Homogeneous shopping products are the goods that the customers would consider the same in terms of suitability, style, price, quality, and design to satisfy their needs. For example, the quality of the refrigerator would be the same, but prices would be different when you make a comparison among various brands. Convenience products are those products that the consumers want to purchase easily without any difficulty.

Similarly cold storage can be used by both the groups but then the performance and power requirement might be very different. Consumer services are intangible products or services produced and consumed at the same time. Haircuts and car washes are typical examples of consumer services. Industrial products are the goods which is used to produce consumer products by any industry. Raw materials,machinery and equipment are some example of industrial goods. Industrial products are the goods that the companies and businesses use for the production of other products or their business operations.

  • Depending on the particular service, they are either consumer or industrial goods.
  • Personal selling and after-sales service are generally more important for industrial products.
  • These products are operating supplies that are used up in the operation of the firm but do not become part of the product.
  • Those fibers are eventually used to manufacture upholstery for furnishings, car seats, and various other textile products.

The consumption of a durable good is spread out over the entire life of the good which causes demand for maintenance and upkeep. In simple terms, a specialty product is one that is very special to the buyer. Specialty products require a willingness to purchase and the buyers are ready to make an adequate effort on knowing about them. Consumer products are the finished goods produced by industry for end users.Household items like detergents, soaps,clothes are some example of consumer goods. A) Farm products – Farm products are products which can be re produced or recycled easily. However, due to their nature, they are perishable and have to be handled accordingly.