Meaning And Types Of Industrial Or Business Goods

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The goods which are purchased to operate a business organization or produce other goods, are called business or industrial products. Industrial goods are purchased in line with the objective or goal of any business organization. The business organizations such as manufacturers, business houses, non-profit organizations and government offices buy such goods. Business or industrial goods are purchased ti facilitate effective operation of organization to improve efficiency and increase organizational effectiveness. 

There are some basic differences between consumer goods and industrial goods. Individual customers buy goods to fulfill personal or family needs. But organizational customers buy goods to achieve organizational objective. The consumer goods are related with the satisfaction or psychological reward of the consumers, whereas industrial goods are related with operational aspect of the organization.

As different business organizations have their own objectives, needs and operational areas, they need goods of different natures and types. So, it is not easy to classify business or industrial goods, however, they can be classified as follows:

1. Raw Materials
The material, which is indispensable to use for production of any finished goods, is called raw material.

2. Fabricating materials and parts
Fabricated materials and parts are those which become the actual parts of finished industrial products. 

3. Installations
Installations are high priced capital or industrial products.

4. Accessory equipment
Accessory equipment needs to be used in the production process in any business firm.

5. Operating supplies
Operating supplies are supposed to the convenience goods of business sector.

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