What are the Types of Product in Marketing?

All right so as marketers, we think very carefully about our product that we’re going to offer. 

One way that we can differentiate between products is between goods and services. 

Whatever product we offer though another way to categorize them or it is either as a consumer product or as a business product. 

So this is helpful for us to think about as marketers because, while the product itself could be the same, there are some things that would differentiate between these two. 

So, what I mean is whatever we sell it could be a consumer product or it could be a business product.

The difference is why is it bought? So, consumers buy products to consume them.

In other words, they buy them to use them on the other hand businesses could buy a product just to use it in running their business. 

A lot of times the products they buy, they buy it to resell. So, that makes a key difference in how they choose between products.

That leads me to the next difference which is consumer products are subject to direct demand. 

In other words, we as consumers want a product and that drives how many products we buy. That’s direct demand. 

Business products on the other hand, the demand is derived in other words. 

As consumers, we demand a certain product. Well, that demand is going to drive the demand for business products. 

If nobody’s buying the products, they make a business doesn’t need to buy products to make their products. 

That’s the nature of derived demand. 

So while these uh differences may seem fairly obvious. They make a very big difference in the way we design our marketing strategy depending on whether we’re selling consumer products or business products. 

Those are the key differences that I want you to think about.