Do you know about business goods? If you want to know about business goods read the full article and get amazing information.
Kinds Of Business Goods
All goods that flow through our marketing system are generally classified into the following two groups:
- Consumer goods
- Industrial goods
A) Consumer Goods:
Consumer goods are those which are purchased by ultimate consumers from retail outlets for their own personal consumption. Based on the buying habits of the consumers.
Kinds Of Consumer Goods:
Consumers goods are further divided into three different types:
- Convenience goods
- Shopping goods
- Specialty goods
(i) Convenience Goods:
Convenience goods are that product that is frequently purchased by the consumers at the retail outlets most convenient to them.
- These goods are purchased in small quantities and have a low unit value.
- The profit margin on the convenience goods is low.
- Soft drinks cigarettes, sugar, soaps, newspapers, etc. convenience goods are common examples of convenience goods.
(ii) Shopping Goods:
Their buying is well-planned and involves effort and time, their unit value is greater than that of convenience goods.
- They are compared before buying as their prices and quality are not standardized.
- Every brand of a product is different from others in shape, design, and functions.
- They are bought infrequently and consumers possess little knowledge of them.
- They required more personal sale efforts
- The typical items of shopping goods are furniture, rug. jewelry, shoes, wearing clothes, etc.
iii) Specialty Goods:
Those goods for which buyers have a strong preference and make efforts to purchase are named as specialty goods.
- As compared to the convenience and shopping goods specialty goods are usually high priced and are available in a few retail outlets.
- They possess a special attraction for the customer.
- Usually, they bought by the rich, and if a particular brand, design, or model is not presently available buyers wait for it.
- Examples of these goods are; brand new precious cars, watches, cameras, plasma TV, DVDs, etc.
B) Industrial Goods:
Industrial goods are those which are used in the production Of consumer or another type of goods for business use.
- These are relative of the high cost.
- These are more complex and of technical in nature.
- They represent either current assets or fixed assets.
- Middlemen are not involved. They are bought directly from the manufacturer.
- Their buying requires special skill, intelligence, and counseling.
- Reciprocal buying is common. Reciprocity refers to’ you buy from us, we buy from you’.
Kinds Of Industrial Goods:
1) Raw Materials:
The raw material is a basic item that is used in the production of goods by the business firms. The examples of raw materials pulp are used in paper mills, iron ore for steel mill, cotton for textile plants, etc.
2) Semi-Manufactured Goods:
Those goods which are processed but are sold to other business concerns for further processing are called semi-manufactured goods. These include such items as leather, aluminum sheet, pig iron, etc
The goods which are manufactured, finished, and serve as components of large articles are named parts. Examples include tires for cars or motorcycles, computer parts, etc.
4) Machinery And Equipment:
This includes various types of machinery and office equipment such as a typewriter , calculators, computers are used in industrial and business operations.
The items which are essentials to the operation of a business are called supplies. These items include wrapping paper, cleaning compounds, lubricating oil, ribbons, stationery, etc.