Consumer Goods and Industrial Goods
What is industrial marketing?
The goal of industrial marketing, also known as business-to-business or B2B marketing, is to establish a working relationship between those who sell and purchase goods. Reaching contractual agreements for businesses to only purchase industrial goods from a particular seller is frequently the aim of industrial marketing. Industrial marketers concentrate their efforts on particular clients and customize their marketing based on research and the particular requirements of the company. In order to sell their products to potential customers, industrial marketing entails direct client contact, such as using email, phone calls, and in-person meetings.
What are industrial goods?
Products used by businesses to produce other goods are referred to as industrial goods. Because of their bulk and high price, these products are typically not intended for consumer use. Instead, companies produce these items with the intention of selling them to other companies.
Most businesses divide industrial good into two categories:
Production goods are the business uses to create a product. These materials are used by businesses to create goods destined for consumer sales. Raw materials, such as metals, woods, plastics, and other materials, are examples of production goods.
Support goods are the machinery that companies use to produce other goods. These products enable companies to transform production products into consumer goods. Examples of support goods include machines, computers and other equipment.
What are consumer goods?
Consumer goods are produced by businesses with the intention of daily use or consumption. They often give them little value to businesses. However, by using extensive marketing campaigns aimed at reaching as many potential customers as possible, this makes consumer goods marketable to average consumers.
The main types of consumer goods include:
Products that are not intended for immediate consumption are referred to as durable goods, hard goods, or consumer durables. These products have a long lifespan, usually three years or more. Businesses design the most durable products for frequent use with the understanding that consumers only occasionally purchase them. Furniture, home appliances, electronics, and even automobiles are examples of durable goods.
Non-durable goods, also known as soft goods, are those that are typically used only once or for a short time. These products are frequently bought by consumers, who also occasionally buy them in bulk or multiples. Examples of non-durable goods include:
Consumer services are non-physical. They frequently consist of things that individual consumers purchase, such as experiences and processes. Examples of consumer services include:
Consumer services typically have an indefinite shelf life and are intangible. However, they can take the form of subscription services. For instance, maintaining an internet connection requires regular payments.
Industrial goods vs. consumer goods
Consumer goods and industrial goods each have their own classifications and traits. This makes marketing the two types of goods very different.
The following characteristics set industrial goods apart from consumer goods:
Industrial products frequently involve intricate industrial processes and the supporting equipment for those processes. Most consumers lack the space to store these items. Additionally, many consumers might not be able to monitor the intricate industrial production processes these goods need.
Industrial products are frequently much more expensive than what the average consumer can afford. Due to their size or the sellers’ desire to sell industrial goods like raw materials in large quantities, this may be the case. However, businesses view industrial goods as an investment they can use to manufacture significant volumes of consumer goods.
Return on investment (ROI)
Since industrial goods are an investment, their ability to assist businesses in achieving their objectives is their most valuable feature. They enable a business to recover its costs before turning a profit from the sale of its goods. Industrial goods frequently necessitate access to resources that the average consumer might not have. This includes strategies for product marketing and distribution, connections with retailers, and a customer base that is prepared to purchase the products.
Industrial products frequently have highly technical operating processes, particularly the machinery used to produce consumer goods. This makes them difficult to operate. Safe operation typically necessitates a training period, special abilities, and possibly a certification procedure.
The difference between industrial and consumer marketing
Marketing for industrial goods and marketing to consumers differ significantly in three ways. These differences are:
Number of potential customers
Industrial goods are used specifically to create new goods, so there are fewer potential consumers who are interested in them. Finding the right customers who are most likely to make purchases is necessary for marketing these products. It also rarely includes advertising.
Consumer products, however, typically appeal to more people. Marketers of these products target much larger but thoroughly studied groups. This entails creating advertising campaigns that take into account the needs of typical consumers.
Relationship to the customer
Industrial product vendors frequently forge personal connections with their customers before closing a deal and portray their marketing as a business relationship that can benefit particular companies. However, due to the large number of consumers, many businesses that sell consumer goods are unable to establish close bonds with their clients. Instead, these companies typically use advertising to create brand awareness. Their objective is to produce goods that are so useful or appealing that consumers consistently choose them over similar or rival goods.
Companies sell industrial products to professionals with specific business needs in order to further their own objectives. Marketing these goods requires an understanding of the business return on investment they provide. However, consumers frequently look for solutions to their daily needs and desires when making purchases. Demonstrating how a product can make a consumer’s life easier is a common strategy in marketing consumer goods.
What are the examples of industrial products?
What are industrial goods? Examples of raw materials include cotton, wood, etc. Manufactured parts — Example: Radiator, battery, etc. , needed by a car manufacturer. Supplies or Consumables — Example: Lubricants, oils, etc.
What are three types of industrial goods?
Industrial products are divided into three categories: supplies and services, capital goods, and materials and parts.
What are industrial products?
- Capital goods.
- Raw materials.
- Component parts.
- Major equipment.
- Accessory equipment.
- Operating supplies.