What Types of Product are There?
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All right so as marketers, we think very
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carefully about
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our product that we're going to offer
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and and one way that
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we can differentiate between products is
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between goods and services. Whatever
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product we offer though
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another way to categorize them or it is
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either as a consumer product
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or as a business product. So this is
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helpful for us to think about as
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marketers because
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while the product itself could be the
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same there are some things
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that would differentiate between these
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two so what I mean is
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whatever we sell it could be a consumer
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product or it could be a business
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product.
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The difference is why is it bought? So
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consumers buy products to consume them,
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in other words they buy them to use them
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on the other hand businesses could buy a
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product just to use it
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in running their business or a lot of
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times the products they buy
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they buy it to resell, so that makes a
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key difference in how they choose
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between products.
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That leads me to the next difference
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which is consumer products
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are subject to direct demand in other
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words
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we as consumers want a product and that
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drives how many products we buy,
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that's direct demand. Business products
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on the other hand
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the demand is derived in other words
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as consumers we demand a certain product
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well that demand
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is going to drive the demand for
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business products
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if nobody's buying the products they
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make a business doesn't need to buy
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products
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to make their products. Hopefully that
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makes sense but that's the nature of
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derived demand.
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So while these uh differences may seem
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fairly obvious
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they make a very big difference in the
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way we design our marketing strategy
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depending on whether we're selling
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consumer products
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or business products. Those are the key
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differences that I want you to think
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about.