Take a case of five fast moving consumer goods-bathing soaps, toothpaste,facial creams,shampoos, ballpen.analyse as to how the market for these product is characterized by product differentiation.
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Answer:
The products may be consumer products and industrial products. Consumer products are used by the ultimate users, but industrial products are used by intermediate users.
Industrial Products may also be known as Business Products. Business products may be subdivided into seven classes – Installations (a boiler or power generation machine for a hydro-electric power plant); Accessory equipment (hand tools for a motor garage); Raw materials (Fortis Escort buying wheat flour, rice, milk, fish, vegetables, etc for the patients’ kitchen); component parts (used in assembling of automobiles – Tata Motors buys spark plug, tires, brakes, clutch plates, switches, etc for its automobiles); Process Materials (not readily identifiable – like vinegar or salad oil used for dressing of salad); Maintenance, Repair, and Operating items (only facilitate, not part of finished product – cotton, old dhotties, oil, Greece, paints, pen, paper, etc); and Business Services (financial, outsourcing, marketing, legal, marketing research, logistics – Blur Dart, First Flight provide overnight delivery of documents).