There are innumerable products and they can he classified in different ways—as to source, or to the scale on which they are produced and consumed or as to the physical attributes. Here we shall attempt a classification or goods according to their marketing characteristics. From the standpoint of marketing, goods may be classified into two main groups: (1) Industrial goods and (2) Consumer goods. Industrial goods may again be classified into five categories—installations, accessory equipment, operating supplies, raw materials and partly manufactured goods and parts.Consumer goods consist of (a) convenience goods and (b) shopping goods. Shopping goods may be divided into fashion goods and service goods.
Industrial goods: Industrial goods are those goods which are primarily purchased by !he business concerns for the purpose of producing other products. They are not bought for final consumption. They include raw materials, accessory equipment, operating supplies, installations and fabricating materials and parts.
Consumer Goods: Consumer r goods are those goods which are destined for use by ultimate consumers. They can be used without commercial processing. A toilet soap or toothpaste, for example, are consumer goods because they are purchased by a person who finally destroys its utility and he can use it without further processing. They are always ready for instant consumption.
Distinction Between Industrial and Consumer goods:
Industrial goods are those consumed by organization in the production of consumers goods or other industrial goods or in conducting an enterprise. The distinguishing characteristics of these goods is the purpose for which they are destined to be used, in carrying on business or industrial activities rather than for consumption by individual ultimate consumers or resale to them. The industrial goods are, in contrast with consumer goods, usually marketed under conditions where transactions involve large amount of money. They are often purchased according to specifications or on the basis of rational motivation. They are more subject to the influence of cyclical business fluctuations.
On the other hand, consumer goods are purchased by individuals because of the type of satisfaction they are expected to yield in consumption. They are usually bought in small quantities and often on the basis of non-rational considerations.