than one operation of a business. The organisation for marketing themmust be more widespread and such items are sold through many outletsand the relation between the buyer and the maker can be less direct andimmediate.Fabricating or Component part: Components are often bought on thebasis of specifications prepared by the purchaser, although many itemssuch as batteries of tyres in the automobile industry are standardizedaccording to the specifications of the parts manufacturer. Somecomponents retain their identity in the finished product; this offers theopportunity for the buyer of enhancing the sales appeal of these endproducts by including in them a component of market acceptance.
This closely resembles component part in that theyusually enter into and form an undistinguished part of the finished product.For example a good manufacturer may buy a variety of ingredients, mixthem in proper proportions and sell the resulting material on the market asa cake mix. Suppliers may build repulsion for these material for ensuringhigh quality and greater purity. The standardization is sufficient to throwconsiderable emphasis on price and service as a competitive factor in thesale of process material.
They do not become a part of the finished product,but are continuously worn out or used up in the process of operating or facilitating the operation of an enterprise. Such items are paints, soaps,detergents, etc. They are usually marketed through middleman andmaintenance and repair supplies are supplied directly by the firm.
Raw material is the basic materials of industry and aresupplied chiefly by agriculture, lumbering, mining and finishing industries.