Comparison between industrial goods and consumer goods

comparison

1. COMPARISON BETWEEN INDUSTRIAL GOODS AND COSTOMER GOODS

2. PRESENTED BY ASHUTOSH PATTNAIK

3. CONTENTS ABOUT GOODS INDUSTRIAL GOOD CONSUMER GOODS COMPARISON

4. ABOUT GOODS Commerce : An inherently useful and relatively scarce tangible item (article, commodity, material, merchandise, supply, wares) produced from agricultural, construction, manufacturing, or mining activities. According to the UN Convention On Contract For The International Sale Of Goods, the term 'good' does not include items bought for personal use, items bought at an auction or foreclosure sale, ( 3) aircraft or oceangoing vessels. 2. Economics: A commodity, or a physical, tangible item that satisfies some human want or need, or something that people find useful or desirable and make an effort to acquire it .

5. TYPES Goods are of varius types according to varius basis but it is of two types on the basis of its consumer/buyer types 1) Industrial goods 2) consumer goods

6. INDUSTRIAL GOODS Machinery , manufacturing plants, materials, and other goods or component parts for use or consumption by other industries or firms. Demand for industrial goods is usually based on the demand for consumer goods they help produce (called derived demand). They are classified as (1) Production goods, that enter the production of a final product, such as the raw materials and component parts, or (2) Support goods, that assist in the production process, such as fixed equipment and machinery, instruments, jigs, tools, etc .

7. EXAMPLES OF INDUSTRIAL GOODS flap-disc-power-tool vacuum-cleaner-fan fan-ventilator

8. CONSUMER GOODS Consumer goods are products that are purchased for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see on the store shelf. Clothing, food and jewellery are all examples of consumer goods. Basic materials such as copper are not considered consumer goods because they must be transformed into usable products .

9. EXAMPLE OF CONSUMER GOODS Name of company Product name COCACOLA COLD DRINKS HUNDAI AUTOMOBILE (CAR) TATA STEAL AND CO. STEAL Gilette U.K Ltd BLADE CADBURY Company Ltd. CHOCOLATE ITC CIGRATE HP COMPUTER

10. COMPARISION 1. Number of Buyers: Numbers of buyers of industrial products are limited as compared to consumer products. 2. Channel of Distribution: Shorter channel of distribution is used for sale of industrial products as there are limited buyers . But in case of consumer goods there are infinite number of consumer so channel of distribution is very long 3. Geographical Concentration: Generally the demand for industrial goods is not scattered but is concentrated at a fixed geographical location . But in case of consumer goods it is scattered because consumer of every geographical location want it. 4. Derived Demand: Industrial products are demanded to produce consumer products that is why it is called derived demand, but in case of consumer goods it is demanded by consumer directly and called direct demand

11. 5. Technical Consideration: Industrial products are produced as a result of complex process so there is more technical consideration of these products. But in case of consumer goods there is less technical consideration on this product. 6. Reciprocal Buying: Some industries buy product from a company with intention of selling the finished goods to the same company. For example the Maruti Co. may buy tyres from MRF Company and tyre Company may in turn buy car from Maruti Co. 7. Combination: Some industrial products are also sometime combine to create consumer product . But in case of consumer goods it can’t be.

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