SESSION 2: PRODUCT CLASSIFICATION - SUMMARY

 

SESSION 2: PRODUCT CLASSIFICATION SUMMARY

Product classification helps marketers effectively position products in the market by considering their characteristics. These characteristics include durability, tangibility, and user type, which guide segmentation, targeting, and positioning.

1. Classification Based on Durability and Tangibility

• Durability: Refers to the product's lifespan.
• Non-Durable Goods: Tangible products consumed in one or a few uses (e.g., food items, toiletries).
• Durable Goods: Tangible products that last for many years and require after-sales services (e.g., LCD TVs, mobile phones).
• Tangibility: Differentiates physical products from services.
• Physical Products: Tangible items that can be touched.
• Services: Intangible products (e.g., hospitality, airlines, insurance).

2. Classification of Consumer Goods

Consumer goods are classified based on the effort and time the buyer is willing to invest.

• Convenience Products: Frequently bought with minimal effort. These include:
• Staple Goods: Regular purchases like bread and milk.
• Impulse Goods: Purchased spontaneously (e.g., chocolates, magazines).
• Emergency Goods: Bought in urgent situations (e.g., toiletries at tourist destinations).

Marketing Strategy for Convenience Goods:

• Price: Low price, widely available.
• Promotion: Mass advertising.
• Place: Distributed at convenient locations.
• Shopping Products: Purchased after careful comparison of price, quality, and suitability. They can be:
• Homogeneous: Similar products, often compared by price.
• Heterogeneous: Differing products, with style or quality being a focus.

Marketing Strategy for Shopping Goods:

• Price: Moderate pricing.
• Promotion: Advertising and personal selling.
• Place: Specialty stores in shopping areas.
• Specialty Products: Unique goods that consumers make special efforts to acquire (e.g., luxury cars, high-end watches).

Marketing Strategy for Specialty Products:

• Price: High pricing.
• Promotion: Targeted advertising.
• Place: Exclusive outlets.
• Unsought Products: Products that consumers are unaware of or don't wish to purchase, such as insurance or health services. These products are promoted through personal selling and aggressive advertising.

3. Industrial Products

Industrial products are used in the production of consumer goods and serve business purposes.

• Features of Industrial Products:
• Fewer buyers compared to consumer goods.
• Shorter distribution channels.
• Technical considerations in purchasing decisions.
• Often involves reciprocal buying.
• Leasing instead of buying in some cases.
• Types of Industrial Products:
• Materials and Parts: Raw materials (e.g., rubber, iron ore) and manufactured parts (e.g., batteries, glass).
• Capital Items: Used in producing finished goods (e.g., machinery, tools).
• Supplies and Business Services: Maintenance items (e.g., lubricants) and business services (e.g., consultancy, advertising).