A product can be a material object or service used to serve a specific purpose of a consumer. Physical goods refer to consumer durables or anything tangible. Virtual products might include anything related to services, such as software applications, education, medical facilities, etc. In a business scenario, products can be classified into two major divisions. They are B2B products (business-to-business), B2C (business to customers) products, and B2B2C (industry products). In the last category, a company targets other businesses to reach the consumer market. B2B products are normally any products or services that go into making a complete product. For instance, strategic planning management, CRM, HR management, and software applications are required in large and small-scale enterprises. Business products are not meant for final sale; rather, they are sold to other business organizations. The companies sell items to educational institutions, healthcare sectors, religious institutions, factories, and stadiums. Raw materials, such as crude oil, coal, timber, wooden logs, or even iron ores and diamonds are chiseled into perfection and sold to end-users. Items, such as wheat, corns, leather, and beef also fall into agricultural business products. Ethylene, kerosene, or petroleum in petroleum or chemical industries are the business products of such industries. Marketers use an extensive range of goods and services in their production units, referred to as business products.
7 Types of Business Products
Types of business products are as follows:
Commodity: They are the undifferentiated host of items capable of offering an optimum level of satisfaction. Firms have no control over the price or demand of such products and must accept the market price.
Convenience products – Things that help to simplify yet enrich the quality of life. Items that are time-saving, money-saving, and labor-saving can secure a happy and peaceful living.
Unsought products – The products that have very little use in day-to-day life and hence customers are not motivated to explore any advanced version or technology. Most people are even unaware of the innovations and creativity attached to such items. Here, the marketer resorts to aggressive marketing to create awareness and demand for such products. Examples may be hi-tech smartphones, expensive designer footwear, automated shaving tools, coffin, etc.
Niche Products – Products target a small group of customers belonging to a particular economic class or society.
Customer preference – Goods that have a kind of special appeal to customers. For example, foods that appeal to taste, items that appeal to oneâ€™s sense of aesthetic beauty, and things that appeal to oneâ€™s preference or class.
Complimentary items – These are products that complement the attributes of another product. These are mainly accessories used in everyday life, such as mobile accessories, fashion accessories, etc.
Premium – These products serve as a status symbol and are generally leveled at a very high price are not for customers, in a generic term.
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