Last Updated : 04 Jan, 2024
Anything of value offered by an organisation to the market for satisfying their want or need is known as a Product. The concept of product not only relates to the physical product but also the benefits offered by the product. For example, while purchasing a washing machine, a consumer does not only look for its physical qualities but also some intangible factors, such as its brand name, guarantee offered, company’s image, status symbol, etc. Hence, it can be said that a product is a mixture of tangible and intangible features, a consumer can exchange for a value in return to satisfy their needs. Products can be classified into two categories; viz., Consumer Products and Industrial Products.
Table of Content
- What are Consumer Products?
- What are Industrial Products?
- Difference between Consumer Products and Industrial Products
What are Consumer Products?
The products which directly satisfy the wants and needs of a consumer are known as Consumer Products. For instance, soap, clothes, bread, jam, butter, etc. Consumer products are used by consumers for their personal needs. These products can be further classified into two categories: On the Basis of Durability( Non-Durable Products, Durable Products, and Services) and On the Basis of Shopping Efforts(Convenience Products, Shopping Products, and Speciality Products).
What are Industrial Products?
The products used by the organisations as inputs for the production of other products are known as Industrial Products. For example, lubricants, tools, equipment, machines, etc. Industrial Products can be classified into three categories; namely, Materials and Parts, Capital Items, and Supplies and Business Services.
Difference between Consumer Products and Industrial Products
| Basis | Consumer Products | Industrial Products |
|---|
| Meaning | The products which directly satisfy the wants and needs of a consumer are known as Consumer Products. | The products used by the organisations as inputs for the production of other products are known as Industrial Products. |
| Buying Motive | Consumer products are purchased with the motive of personal consumption. | Industrial products are purchased with the motive of manufacturing other products. |
| Nature of Buyers | The buyers of consumer products are more impulsive and spend less time and effort in comparing different brands available in the market. | The buyers of industrial products are more rational and spend more time and effort comparing different brands available to them. |
| Factors affecting Purchase Decision | Advertisem*nts and Sales Promotion Schemes affect the purchasing decision of the buyers. | Technical factors, cost, and goodwill of the supplier affect the purchasing decision of the buyers. |
| Number of Buyers | The number of buyers of consumer products is large. | The number of buyers of industrial products is limited. |
| Nature of Demand | As these products satisfy the wants of consumers directly, they have a direct demand. | As these products indirectly satisfy the wants of consumers, they have a derived demand(derived from the demand for consumer products). |
| Geographic Distribution | The demand for consumer products is widely spread. | The demand for industrial products is concentrated at fixed locations. |
| Channel Levels | These products have longer channels of distribution. | These products have shorter channels of distribution. |
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FAQs
The products which directly satisfy the wants and needs of a consumer are known as Consumer Products. The products used by the organisations as inputs for the production of other products are known as Industrial Products.
What is the difference between industrial products and consumer products? ›
Industrial goods are bought and used by manufacturers. Consumer goods are ready for consumption by people. While industrial goods are made up of machinery, plants, and raw materials, consumer goods are finished products.
What is the main difference between consumer and industrial marketing? ›
Industrial marketing: It targets companies, organizations and institutions as customers. Target audiences are usually professionals and decision-makers within these entities. Consumer marketing: Targets individual consumers as customers. The audience can be diverse in terms of age, gender, preferences and behaviours.
What is the difference between industrial and consumer services? ›
A consumer service is a service that is given to the final buyer, while industria services is provided to one business to another.
What is the main difference between industrial buyers and consumers? ›
Consumers often make purchases on the spot, or with less than a few days consideration. Industrial purchases are different. Buyers make calculated decisions, often after a lengthy review process, analysis, and comparison between similar products.
What are examples of consumer products? ›
Common examples of these are food, beverages, clothing, shoes, and gasoline. Consumer services are intangible products or actions that are typically produced and consumed simultaneously. Common examples of consumer services are haircuts, auto repairs, and landscaping.
What is the distinction between a consumer product and an industrial product based on the purpose for which the product is bought? ›
The products which directly satisfy the wants and needs of a consumer are known as Consumer Products. The products used by the organisations as inputs for the production of other products are known as Industrial Products. Consumer products are purchased with the motive of personal consumption.
How are they different from consumer goods industries? ›
Basic good industry-Those industries which produce materials to be used as raw materials in other industries are known as basic goods industries Examples- iron and steel industry. Consumer goods industries- These are those industries which manufacture goods for directly used by consumers.
What is an example of an industrial market? ›
Industrial market example
For example, companies that sell steel, glass, wood, or other raw materials offer their products for other businesses to use for manufacturing their own new products. Other industrial market companies might include businesses that sell machinery or vehicles for other companies to use.
What is industrial product in marketing? ›
The products which are used as inputs to produce consumer products are known as industrial products. e.g. raw material, machinery, tools, etc.
Compared to consumer packaging, industrial packaging is engineered to protect and store large quantities of a single product. It has the capacity to meet essential product demands on a larger scale when it comes to size, weight, and industry application.
What is the difference between consumer and industrial channels? ›
Industrial channels are shorter than consumer channels because there are a small number of industrial customers, and they are geographically concentrated at a few locations. Industrial products are often complex in nature, and the buying process is long.
What is the difference between the consumer and industrial business to business sector? ›
In B2B markets, businesses purchase raw materials and add value through manufacturing processes before selling the product to other companies. B2C markets, on the other hand, focus on emotional connections with customers. This requires branding and product differentiation.
What is the difference between industrial goods and consumer goods? ›
Consumer goods satisfy human needs and are not used for the production of other goods. Whereas industrial goods are used by the company in order to produce other products. The industrial goods are used directly or indirectly to produce other goods which are sold as retail. The industrial goods seek for profit.
What is the major difference between industrial and consumer marketing? ›
While consumer marketing deals with product markets (think finished goods that are largely bought by individuals, like shoes, clothing, books, etc.) industrial marketing deals with factor markets, or highly specialized products and services for select consumers (think labor, machinery or unfinished products (1).)
What is the difference between consumer products and business products? ›
Consumer products are sold to individuals to satisfy personal or family needs. Business products are sold to businesses to satisfy their needs or bought by a form to make into other products. The majority of all products or services fall under these two categories.
What is the difference between a consumer product and a business product? ›
Consumer products are sold to individuals to satisfy personal or family needs. Business products are sold to businesses to satisfy their needs or bought by a form to make into other products. The majority of all products or services fall under these two categories.
What is the difference between industrial and commercial products? ›
“Industrial” refers to any business dealing with manufacturing goods. “Commercial” refers to any business done with the sole motive of gaining a profit. Furthermore, the Oxford dictionary says that industrial is “designed or suitable for use in industry” and that commercial is “concerned or engaged in commerce”.
What is the difference between consumer goods and production goods? ›
Consumer goods are the goods finally used by the consumers to satisfy their wants. These goods directly satisfy human wants. Producer goods are those goods which are used by the producers to produce more goods or continue the process of production.
