156 CHAPTER 7 INTRODUCINGAND,MANAGINGTHEPRODUCT
toanotherhairsalon.Itisgenerallydesirablefora marketertoliftherproductfromthe
shopping tothespecialty class(andkeepitthere), Withtheexceptionofprice-cutting,the
entirerangeofmarketingactivitiesarerequired~oaccomplishthisgoal.ClassificationofIndustrialGoods
Consumergoodsarecharacterizedasproductsthatareaimedat andpurchasedbytheulti-
mateconsumer.^2 Althoughconsumerprod'lcts aremorefamiliartomostreaders,industrial
goodsre presen t a veryimportantproductcategory,andinthecaseofsomemanufacturers,
they aretheonlyproductsold.The meibodsofindustrialmarkethgaresomewhatmore
specialized, but ingeneraltheconceptspresentedin thistextarevalidfortheindustrial
marketer aswellasforthe consumergoodsmarketer.
Industrialproductscaneitherbecategorizedfromthe perspectiveoftheproducerand
howtheyshopforth e product, ortheper:;pectiveofthemanufacturerandhowtheyare
producedandhowmuch theycost.Thelattercriteriaoffersa moreinsightfulclassification
forindustrialproducts.
Fanns,forests,mines, andquarriesprovideextractiveproductsto producers. Although
therearesomefarmproductsthatarereadyfor consumptionwhentheyleave thefarm, most
farmandother extractiveproductsrequiresomeprocessingbeforeourchasebythecon-
sumer. Ausefulwaytodivideextractiveproductsisintofarmproductsandnaturalprod-
ucts,sincetheyare marketedinslightlydifferentways.
Manufacturedproductsarethosethathave undergonesomeprocessing.Thedemands
for manufactured industri algoodsareusuallyderivedfromthedemandsforultimate con-
sumergoods.Therearea numberofspecifictypes of manufacturedindustrialgood~.
Se mi-manufacturedgoodsarerawmaterials thathavereceivedsomeproce~,singbut
requiresomemore beforetheyareusefultothepurchaser. Lumberandcrudeoilareexam-
ples ofthese typesofproducts. Si ncetheseproductstendtobestandardized, thereis a strong
emphasisonprice andvendorreliability.
Partsaremanufactureditemsthatarereadyto beincorporatedintootherproducts,
For instance, the motorsthatgointolawnmowersandsteeringwheels onnewcarsarecare-
fully assembledwhentheyarriveatthemanufacturingplant.Sinceproductssuchasthese
areusuallyorderedwellinadvanceandinlargequantities,priceandservicearethe'.wo
mostimportantmarketi ngconsiderations.
Processmachinery(sometimescalled"installations") referstomajorpiece"ofequip-
ment usedinthemanufactureof othergoods.Thiscategorywouldincludelilephy::icalplant
(boilers,la thes,blas t furnaces, elevators , and conveyorsystems),Themarketingprocess
would incorporate theeffortsofa professional salesforce, s upportedbyengineersandtech-
nicians,and a tremendousamountofpersonalizedservice.
Equipmentismadeupofportablefactoryequipment(e.g.,fork;ifttrucks,fireextin-
guisher) andoffice equipment(e.g., computers,copiermachines).Althoughtheseproducts
donotcontribute directly tothephysicalproduct,theydoaidintheproduction process.
Theseproductsmaybe solddirectlyfromthemanufacturertotheuser,or a middleman
canbeused ingeograp hicallydi spersedmarkets.Themarketingstrategyemploysa wide
range of ac tivities,includingproduct qualityandfeatures, price,service,vendordeals, and
promotion,
Suppliesandservicedonot enterthefinishedproductat all,bJtarenevertheiessCO~l
sumed in conjunctionwithmaki ngtheproduct.Supplies wouldincludepaper,pencils, fuel
oil,brooms, soap, andsoforth. Theseproducts arenormallypurchasedasconvenienceprod-
uctswithaminimumofeffort andevaluation.Business servicesincludemaintenance(e,g.,
officecl eaning), repairs(e.g.plumbing), andadvisory(e.g.legal).Becausetheneedforserv-
icestendstobeunpredictable, they areoftencontractedfor a relatively longperiodoftime,