Industrial Products

Industrial products are those purchased for further processing or for utilize in conducting a business. Therefore, the distinction between a consumer product and an industrial product is depending on the purpose for which the product is bought. If a consumer buys a lawn mower for utilize around home, the lawn mower is a consumer product. If the similar consumer buys the similar lawn mower for employ in a landscaping business, the lawn mower is an industrial product.

The three groups of industrial services and products include materials and capital items, parts and supplies and services. Parts and Materials include raw materials and manufactured materials and parts. Raw materials contain of farm products (cotton, wheat livestock, vegetables, fruits) and natural products (lumber, fish, crude petroleum, and iron ore).  Manufactured materials and parts consist of component materials (yarn, iron cement, wires) and component parts (small motors, tires, castings). Most of the manufactured materials and parts are sold directly to industrial users. Service and Price are the main marketing factors; branding and advertising tend to be less significant. The demand for industrial products is derived from the demand for consumer products. This is known as "derived demand."  Capital items are industrial products which aid in the buyer's production or operations, by including installations and accessory equipment. Installations consist of main purchases like buildings (offices, factories) and fixed equipment (drill presses, generators, large computer systems, and elevators). In accessory equipment portable factory equipment and tools (lift trucks, hand tools,) and office equipment (desks, fax machines) are included. They have a smaller life than installations and easily aid in the production procedure. The final group of business products is services and supplies. Supplies include operating supplies (coal, paper, lubricants, and pencils) and repair and maintenance items (, nails, paint, brooms). Supplies are the ease products of the industrial field because they are typically purchased with a minimum of attempt or comparison. In Business services maintenance and repair services (computer repair, window cleaning and business advisory services (management consulting, legal and advertising) are included. Such type of services is typically supplied under contract.