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

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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.

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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

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between products.

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That leads me to the next difference

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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.