Industrial Products MBA Marketing Notes

Sat, 11/05/2011 - 00:54 -- Umar Farooq

Industrial Products

Individuals and Organizations buy industrial products for further ultimation in the business operation or may use in other products. The main objective of industrial products is to use the products in business operation and earn profit. Following are the types of Industrial products

1. Material & Parts

  • Raw Materials
  • Manufacturing Materials and Parts

2. Capital Items

  • Installation
  • Accessory Equipment

3. Supplies and Services

Material and Parts

Raw Material

Raw materials are those business products that customers buy for the purpose of manufacturing other goods.In other word, raw materials are those products, which process in the business operation and become the part of other goods.

Characteristics of Raw Material

  • Low unit price          
  • Purchase frequently
  • Short life
  • Less branding
  • Standardization and Grading is important         
  • Large quantity purchase


  • Natural products like coal, petroleum, iron, fish etc.
  • Farm products like cotton, vegetables, wheat, livestock etc.

Manufacturing Materials and Parts

Manufacturing materials are the parts of those business goods, which are complete in all respect and might have gone all the manufacturing process but ultimate consumer cannot use them until when they combine with another finish product. They become the part of finish goods.

They complete in another manufacturing unit but can be ultimately use when they become the part of finish good.

Characteristics Manufacturing Materials

  • They do not change the form
  • They important part of another finish goods
  • The brand is not so important
  • Frequently purchase
  • Purchase in large quantity.


Yarn, Semiconductor, tires, zipper etc

Capital Items


An organization’s major expensive, long-lived equipments (fixed Assets) is called installation.


  • Long life
  • Expensive
  • Need large commitment to buy
  • Top management involve to purchase   
  • Technical Nature
  • Available at special places
  • Training needed to use it.


Large Generator used in a Dam, Large printing press, Long live Asset (depreciable Asset) such as machinery.

Accessory Equipment

The accessory equipments are those industrial products, which are bought by the organization or individual to support the real business operations, they may be revenue nature, or capital nature.


  • They do not become the integral part of the organization finish goods but used in the organization operation and these very helpful in this respect.
  • The do not impact the organizations seals of operation.
  • They have short time than installations but longer life them operating supplies.


Typewriter, Table, Chairs, Computer etc

Supplies & Services

Industrial Supplies

Operating supplies are those products, which are essential for normal business operation. They do not become part of the finish goods. But they just facilitate the business operation.


Oil, Coal, Fuel, Stationary, Cleaning material etc

Industrial Services

Industrial Services include maintenance and repair services and industrial advisory services, they are usually supplied under contract.


Computer repairing, management consulting, advertising etc