Products

Product

It simply refers to a firm’s offering to the public i.e something that can be offered to a market for attention, acquisition and consumption. It can be a good or service that meets the requirements of a particular market or segment and yields enough profit to justify its continued existence.

Classification of product

Consumer goods/ products

Industrial goods/ products

Consumer goods

These are final goods that are bought by ultimate consumers or households for personal consumption.

Types of consumer goods

Convenience goods

Shopping goods

Specialty goods

Unsought goods

Convenience goods

These are goods that are bought by the consumers with minimal buying effort. They are goods and services bought frequently, immediately and with minimal comparison. Examples include biscuits, newspaper, bread, egg etc.

Shopping goods

These are goods that consumers do a lot of selection and comparison based on various parameters, such as cost, quality, brand style, comfort etc, before buying them. Examples include television, radio, furniture etc.

Specialty goods

These are goods which are unique and luxurious in nature. They are goods that brand identification for which a number of buyers are willing to make special purchasing effort. Examples include cars, wedding dresses, men’s suits etc.

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Unsought goods

These are goods or services which are available in the market but customers are not really interested in buying them. Examples include insurance, buying of shares, donating blood to Red Cross etc.

Industrial goods

These are products bought mainly for the production of other goods. For example, cocoa is bought for producing bournvita, timber is used in making furniture, wheat is used in making bread etc.

Classifications of industrial products

Raw materials

Installations

Accessory equipment

Operating supplies

Raw materials

These are industrial goods that exist in their natural form and will become part of another physical products e.g cocoa, wheat, cotton etc.

                                                                   Installation

These consist of the major equipment of industrial users. They are ready-made, expensive and durable products which help the production processes. Examples include a school building, a factory building etc.

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Accessory equipment

This is used in the production operations of an industrial firm but it does not become an actual part of the finished products. Examples include white board, chairs and tables as used in the school.

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Operating supplies

These are convenient goods of the industrial field. They help in a firm operation but do not become part of finished products e.g pencils and stationery, fuel, board marker as used in schools etc