WHAT ARE INDUSTRIAL GOODS?
Industrial goods can be described as all commodities used by organizations to produce other products or services for the ultimate consumption of the final consumers. The main distinguishing characteristic of an industrial good from other goods is the purpose for which it is used. Some goods serve a dual purpose that is, acquired as an industrial good or for personal consumption. For example a car might be purchased for personal use or as a vehicle for transporting raw materials used for manufacturing purposes. CLASSIFICATION OF INDUSTRIAL PRODUCTS
Industrial products can be classified into two categories namely: (a) Products purchased for the production of other products and become a physical part of the final product. For example, flour is used to produce bread and it forms part of the final product. (b) Products purchased and put into used to support the conduct of business and not necessarily form part of the product. For example, a Van may be purchased by a manufacturing outfit to assist it delivery services. CHARACTERISTICS OF MARKET FOR INDUSTRIAL GOODS
Marketing industrial goods is quite different from marketing consumer goods and the basis for this difference can be better understood when the following characteristics of market for industrial goods are well studied. The characteristics are as follows: (a) The buyers of industrial goods are usually professionals such as Purchasing Officers who are well informed about the products they buy. Emphasis is placed on product quality, specifications and availability rather than impulse buying and responses to advertisement or sales promotion. (b) Retailers and wholesalers are eliminated from the distribution chain since industrial products are sold directly to the users except on rare occasions. (c) The buyers of industrial goods are fewer relative to consumer products, but an average sale is much larger than for consumer products. (d) Many industrial products...
Please join StudyMode to read the full document