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5.3.2 Business Products
Individuals and organisations purchase a product for further processing or usage in
conducting business.
The difference between a consumer and an industrial product is determined by the
product's intended use.
A lawn mower purchased by a consumer for usage around the house is an example of a
consumer product. The lawn mower is an industrial product if the same consumers buy
it for use in a landscaping firm. The three groups of industrial product and services are:
a. Material and parts
b. Capital item
c. Supplies and services
Figure 5.6: Material and parts
Material and parts
Raw materials, as well as produced materials
and parts, are included.
Farm products (wheat, cotton, livestock, fruits,
and vegetables) and natural products are used
as raw materials (fish, lumber, crude
petroleum, iron ore)
Component materials (iron, yarn, cement,
wires) and component parts make up
manufactured materials and parts (small
motor, tires, castings).
The majority of manufacturing materials and
parts are sold to industrial customers directly.
The most significant marketing criteria are
price and service; branding and promotion are
less important.
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