Industrial products

types of product in marketing

1. Industrial products

2. Meaning Industrial products are those products that are purchased by individual or organizations for further processing, for resale and for the use in operation a business. In other words If an individual, group or firm purchases the product and services with further motive rather than personal use, then they are known as industrial product . The buyers of industrial product may be business organizations, organizational institution, private and government offices and producers. Industrial products can be divided into five categories.

3. 1. Raw materials Unprocessed and semi- processed item that will be converted into final product by a manufacturer is called raw materials . Finished goods are made by changing quality, shape, and form of such raw materials. Form and utilities of raw material change many times under the process of production. Such basic materials are purchased by producer and business organizations . The raw materials are also divided into two categories as Agricultural products such as millets, wheat, corn, paddy, cotton tobacco, fruits animal products, and N atural products such as gold, silver, iron, copper, coal, petroleum, herbs.

4. Raw materials cont.. Features of raw materials Buying frequency:- Raw materials are purchased frequently Life :- The life of raw material is very short. Per unit price:- Per unit price of raw materials becomes low. Limited Supply:- Supply of raw materials is limited, especially natural raw materials. Purchase quantity:- Raw materials are purchase in large quantity. Availability :- It is available in limited area or place. Effect :- Raw materials cost affect the product cost .

5. Raw materials cont …. Marketing Consideration for raw materials:- Branding :- More importance should be given to the quality of raw materials than to the branding Before sales and after sales service:- No need of before sales and after sales service. Transportation and warehouse:- As such goods becomes different in quality and nature during transportation and storing, there should be carefully stored and transported. Contract period:- Long term contract should be done for supplying such goods of different quality and standard. Promotion :- No promotional activities need to be conducted in distribution of raw materials. Price competition:- Competitors price strategy of raw materials should be consider when determining price of raw materials Distribution Channel:- Distribution channel should be short and direct

6. 2. Fabricating Materials and parts Fabricating materials and parts are those industrial products that becomes an actual components of the finished products. After including such materials in main product, new types of product becomes ready. Such finished materials and parts are used without changing their quality, form and nature to prepare a third product. Per unit price of such products are relatively low. They give completeness to the new products or goods. Motors tyres , buttons, zippers, batteries, nuts and bolts, machinery parts etc. are the example of such goods .

7. Fabricating Materials and parts cont.. Features of Fabricating materials and parts:- Organ :- Fabricating materials and parts are important organ of final product. Life :- Parts and materials have short life period and it also depends on the life of final product. Per unit price:- per unit price of fabricating materials and parts becomes relatively low Purchases quantities:- Fabricating materials and parts are purchased in large quantities. Standardized :- Such products are highly standardized. Direct purchased:- Such products are purchased directly.

8. Fabricating Materials and parts cont.. Marketing Consideration of Fabricating materials and parts Duration of contract :- Duration of contract or agreement between buyer and sellers of fabricating materials and parts should be long. Channel of distribution :- distribution channel of fabricating materials and parts should be short and direct as far as possible. After sales service :- Service after sales is essential for such materials and parts. Promotion :- Promotional activities for fabricating materials and parts should be conducted Branding :- Branding of such goods is not given importance but not applicable for all. Packaging :- Packaging is not important for such types of product so packaging is not necessary. Price competition :- marketing manager should analyze the competitors price strategy when setting the price of such products.

9. 3.Installations Big industrial capital equipment and instruments are installations. Capital goods or installations are industrial products that support in the buyers production or operations. They are the highly price of machinery items in the organization and the entire production process depends on it Installation consists of major purchases such as buildings like as factories, offices, fixed equipment like as generators, press, large computer system, lift, etc. In the lack of these installation, raw materials cannot be converted into finished goods. As these items need huge investment, a rational decision should be taken to buy installation.

10. Installations cont.. Feature of Installation:- Per unit price:- Per unit price of installation is very high Life span:- Installation have very long life span Purchase quantity:- Very few items are purchased in installation. Buying frequency:- Installation need not to be bought frequently. Importance :- Brand name or trade mark of installation is very important. Problems :- No problems of supply .

11. Installations cont.. Marketing consideration of Installation Channel of distribution:-Distribution channel of installation should be direct and short as far as possible. Brand : - After producing capital items, they should be given brand name and trade mark. Before and after sales service:- Before and after sales services should provide by the sellers. Promotion :- Personal selling should be given preference rather than advertising and other promotional activities. Knowledge :- The supplier of installation should be efficient and experienced and he/ she must have technical knowledge. Contract period:- Long term agreement should be applied. Profit margin:-High per unit profit margin strategy should be adopted . Price competition:- Industrial users gives priority to quality, after sales service rather than price of . So there is no need of price competition.

12. 4. Accessory Equipment Accessory equipment is an industrial product . It does not become a part of the finished goods, but it plays an important role on the operation of organization. Accessory equipment includes portable factory equipment's and tools such as hand tools, lifts, trucks, pick, liver, tables, chairs, drawers, office equipment like computer, fax machine, operating desk etc. Such equipments do not come into direct use in the production process but helps in the production activities to run the production functions smoothly.

13. Accessory Equipment cont … Features of accessory equipment: Regular help:- The accessory equipment help in production process Price :- Per unit price of accessory equipment become low than installation. Purchase frequency:- Purchase frequency of accessory equipment becomes medium Purchase quantity:- As demand of accessory equipment becomes low and purchasing quantity is also low. Time and effort:- less time and effort is needed for purchase in such products. Capital Items:- It is not capital items like installation. Durability :- Accessory equipment have moderately long life span but less than installation .

14. Accessory Equipment cont … Marketing Consideration for accessory equipment Distribution Channel:- Distribution channel of accessory equipment should be long. it should be through intermediaries such as agents, wholesalers, and retailers. Promotional tools:- Promotional activities should be conducted for such equipment. Generally personal selling and advertising can be effective. Brand :- Trade Mark and brand of such equipment should be given more importance. Price factors:-Marketers should give more emphasis on quality rather than price of the product. Contract period:- Medium contract period is needed for such product. Before and after sales service:- Pre and post sales service should be provided according to buyer's needs. Packaging :- Customer gives more priority to quality, brand, warranty rather than packaging of product. So it is not necessary to give more emphasis on packaging of the product.

15. 5. Operating Suppliers:- This things which help to make production easy and regular are called operating suppliers. It help to conduct business activities continuously . Operating suppliers are also called the convince goods. Stationary , fuel, oil chemicals, petroleum, coal, cloths, computer, etc. and repair and maintenance items such as nails, paints, brushes etc. Features of Operating suppliers:- Life span:- Operating suppliers have short life span. Per unit price:- These products have low unit price. Purchase frequency:- Operating suppliers are frequently purchased items. Parts :- operating supplier cannot be a part of finished products. Time and Effort:- Neither much effort nor time is needed to buy operating suppliers. Knowledge :- Customers have full knowledge about such product. Supply Problems:- No supply problem of such product .

16. Operating Suppliers cont … Marketing Consideration of operating suppliers Wide distribution:- Intermediaries should be used to supply operating suppliers. Brand :- Importance is not given to the brand and trademark of such goods. Contract :- The duration of the contract for supplying such goods should be short. Promotion :- Promotional activities are not important for such goods. Before and after sales service:- Before and after sales service is rarely provided for such goods. Packaging :- Marketer should give more importance to quality of such product rather than packaging Price competition:- Price strategy should be followed when setting price of such product.

17. Service

18. Concept of service – I mportant C omponent of Product Service is one of the component of product, goods being another. Any activity or benefits that one party can offer to another that is essentially intangible is called service product. Service is the combination of any activity, benefits that have some worth and have ability to satisfy human needs that is primarily intangible, non perishable and doesn't remain in ownership of party. Communication , transport, banking, insurance, hotel, restaurant, advertisement, counseling services etc. are the examples of service product. Such service cannot be stored. Price and quality of service product cannot have uniformity . service can be classified into two types: person related service and equipment related service. Teachers ' service, doctors service, lawyer's service are person related service whereas lifting machine service, vending machine service, television service, computer service are equipment related service.