Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Find a Job
  • Home
  • Marketing, Advertising, Sales & PR
  • Principles of Marketing

What Types of Product are There?

Written by Jason Gordon

Updated at June 17th, 2021

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More


0:00:00.160,0:00:04.400

All right so as marketers, we think very


0:00:03.439,0:00:06.080

carefully about


0:00:04.400,0:00:07.520

our product that we're going to offer


0:00:06.080,0:00:11.040

and and one way that


0:00:07.520,0:00:14.000

we can differentiate between products is


0:00:11.040,0:00:15.679

between goods and services. Whatever


0:00:14.000,0:00:18.880

product we offer though


0:00:15.679,0:00:20.720

another way to categorize them or it is


0:00:18.880,0:00:23.439

either as a consumer product


0:00:20.720,0:00:24.800

or as a business product. So this is


0:00:23.439,0:00:26.480

helpful for us to think about as


0:00:24.800,0:00:28.080

marketers because


0:00:26.480,0:00:30.000

while the product itself could be the


0:00:28.080,0:00:32.160

same there are some things


0:00:30.000,0:00:34.079

that would differentiate between these


0:00:32.160,0:00:36.160

two so what I mean is


0:00:34.079,0:00:37.840

whatever we sell it could be a consumer


0:00:36.160,0:00:39.040

product or it could be a business


0:00:37.840,0:00:42.320

product.


0:00:39.040,0:00:44.960

The difference is why is it bought? So


0:00:42.320,0:00:47.760

consumers buy products to consume them,


0:00:44.960,0:00:50.480

in other words they buy them to use them


0:00:47.760,0:00:52.000

on the other hand businesses could buy a


0:00:50.480,0:00:54.559

product just to use it


0:00:52.000,0:00:56.160

in running their business or a lot of


0:00:54.559,0:00:59.039

times the products they buy


0:00:56.160,0:01:00.559

they buy it to resell, so that makes a


0:00:59.039,0:01:02.239

key difference in how they choose


0:01:00.559,0:01:03.920

between products.


0:01:02.239,0:01:06.240

That leads me to the next difference


0:01:03.920,0:01:08.479

which is consumer products


0:01:06.240,0:01:10.000

are subject to direct demand in other


0:01:08.479,0:01:12.479

words


0:01:10.000,0:01:15.200

we as consumers want a product and that


0:01:12.479,0:01:17.520

drives how many products we buy,


0:01:15.200,0:01:19.040

that's direct demand. Business products


0:01:17.520,0:01:22.560

on the other hand


0:01:19.040,0:01:24.880

the demand is derived in other words


0:01:22.560,0:01:26.240

as consumers we demand a certain product


0:01:24.880,0:01:28.799

well that demand


0:01:26.240,0:01:30.320

is going to drive the demand for


0:01:28.799,0:01:32.400

business products


0:01:30.320,0:01:34.720

if nobody's buying the products they


0:01:32.400,0:01:35.439

make a business doesn't need to buy


0:01:34.720,0:01:37.759

products


0:01:35.439,0:01:39.600

to make their products. Hopefully that


0:01:37.759,0:01:41.439

makes sense but that's the nature of


0:01:39.600,0:01:44.399

derived demand.


0:01:41.439,0:01:45.759

So while these uh differences may seem


0:01:44.399,0:01:47.759

fairly obvious


0:01:45.759,0:01:49.840

they make a very big difference in the


0:01:47.759,0:01:51.520

way we design our marketing strategy


0:01:49.840,0:01:53.040

depending on whether we're selling


0:01:51.520,0:01:55.439

consumer products


0:01:53.040,0:01:57.799

or business products. Those are the key


0:01:55.439,0:02:00.799

differences that I want you to think


0:01:57.799,0:02:00.799

about.


Was this article helpful?

Yes
No

Related Articles

  • Traditional Marketing Tools - Explained
  • Marketing Controls - Explained
  • Market (Marketing) - Explained
  • Brand Loyalty - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand