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We train thousands of product managers in hundreds of companies. Some work at businesses that sell to other businesses (B2B) and so do B2B product management. This is also known as Enterprise product management. Others work at companies that only sell to consumers which are known as B2C product management. Some do both. We’re sometimes asked to highlight the differences between a product manager building products for businesses with one whose customers are consumers. To help answer this question we’re showcasing a recent blog from Rich Mironov, Understanding Enterprise Product Companies, which explores these differences in some detail. The truth is that B2B product management probably has more similarities than differences compared to product management in a B2C business. Even so, there are differences caused by, amongst other things, the number of potential customers, the level of engagement and the value of each customer as well as the way that things are sold. To give you a sense of scale – some of the clients we train have 100’s of millions of customers whilst, at the other end of the scale, some have a global market of just a few hundred potential customers. From our work experience and from our training and reviews, we recognize the truth in many of the comments Rich makes in his blog. The differences for product managers dictate where they need to spend time and the approaches to completing product activities that are most likely to work well. If you’re building your skills so you can work across business and consumer products, then it’s useful to gain insight into these differences. As a reminder again, this is the link to Rich’s blog. How does this compare to your experience in managing consumer or business products? Share this pageIndustrial goods are materials used in the production of other goods, while consumer goods are finished products that are sold to and used by consumers. Industrial goods are bought and used for industrial and business use. They are made up of machinery, manufacturing plants, raw materials, and any other good or component used by industries or firms. Consumer goods are ready for the consumption and satisfaction of human wants, such as clothing or food. Key Takeaways
Industrial GoodsIndustrial goods are based on the demand for the consumer goods they help to produce. Industrial goods are classified as either production goods or support goods. Production goods are used in the production of a final consumer good or product, while support goods help in the production process of consumer goods such as machinery and equipment. Unlike consumer goods, which are purchased by the general public, there are very specific buyers of industrial goods. They include component part buyers such as car manufacturers, those who purchase and install machinery, and distributors or anyone else who buys for resale. Characteristics of industrial goods include:
Companies involved in the industrial goods sector represent a variety of industries including (but not limited to) machinery, construction, defense, aerospace, and housing. Consumer GoodsConsumer goods are tangible commodities produced and purchased to satisfy the wants of a buyer. That's why these goods are also referred to as final goods or end products. They are goods that consumers can typically find stocked on store shelves. As such, they can be purchased for use at home, school, or work or for recreational or personal use. Consumer goods are divided into three different types: Durable goods, non-durable goods, or consumer services. Durable goods have a significant lifespan of three or more years. The consumption of a durable good is spread out over the entire life of the good, which causes demand for maintenance and upkeep. Bicycles, furniture, and cars are examples of durable goods. Non-durable goods are purchased for immediate consumption or use. These goods generally have a lifespan of fewer than three years. Food, beverages, and clothing are examples of non-durable goods. Consumer services are also intangible products or services produced and consumed at the same time. Haircuts and car washes are typical examples of consumer services. Fast-moving consumer goods make up one of the largest consumer goods groups. Because of consumer buying patterns, consumer goods are typically classified into four different categories including convenience, shopping, specialty, and unsought goods.
Key DifferencesThere are other key differences between both industrial and consumer goods including buyers. Buyers of industrial goods are generally limited because there are fewer consumers of these products. Consumer goods, on the other hand, have a larger pool of buyers. Demand also differs between both types of goods. Industrial goods are driven by derived or indirect demand. This demand stems from the need to provide finished products to consumers. Demand for consumer goods, on the other hand, is direct demand which results from the direct usage of a good or service. Which of the following is a difference between consumer products and business products quizlet?Which of the following is a difference between consumer products and business products? Consumer products are products that are purchased for personal consumption, whereas business products are products that are used either directly or indirectly to produce other products.
Which of the following characteristics distinguishes business products from consumer products quizlet?The key characteristic distinguishing business products from consumer products is intended use, not physical form."
Which of the following is an example of a business product?Examples of business products include raw materials, equipment, component parts, supplies, and business services.
What is the difference between final consumers and business consumers quizlet?Business consumers are persons, companies, and organizations that buy products for operation of a business for incorporation into other products and services or for resale to their customers. Final consumers are persons who buy products and services mostly for their own use (end-user).
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Which of the following is a difference between business products and consumer products?
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