Classification of Industrial Products
The industrial goods are classified into the following major categories:
(i) Materials and Parts: These include goods that enter the manufacture’s products totally. Such goods are of two types:
- Raw material: including farm products like cotton, sugar cane, oil seed and natural products such as minerals (pgas, iron ore), fish and lumber; and
- manufactured material and parts. These are again of two types – component materials like glass, iron, plastic and component parts such as electric bulb, steering, and battery.
(ii) Capital Items: These are such goods that are used in the production of finished goods. These include:
- installations like elevators, mainframe Computers, and
- equipments like Hand Tools, Personal Computer, Fax Machines, etc. products have different buying motives and have different attitudes and use different approaches in the purchase of the products.
For example, an industrial buyer is expected to be more rational who will study the cost of different available
(iii) Supplies and Business Services: These are short lasting goods and services that facilitate developing or managing the finished product. These include:
- maintenance and repair items like Paint, Nails, etc., and
- operating supplies like Lubricant, Computer Stationary, Writing Paper, etc.
The difference in the nature of consumer products and industrial products is important because of the fact that the buyers of the two sets of brands, their technical specifications and the goodwill of the supplier.