The document classifies products into three categories: 1) Based on durability into non-durable, durable, and services. 2) Consumer products are bought for personal use and include convenience, shopping, specialty, and unsought goods. 3) Industrial products are bought for resale or business use and include raw materials, capital items, and supplies/services. Raw materials are further divided into farm/natural products and manufactured materials. Capital items include installations and equipment. Supplies/services include maintenance/operating supplies and business services.
The document classifies products into three categories: 1) Based on durability into non-durable, durable, and services. 2) Consumer products are bought for personal use and include convenience, shopping, specialty, and unsought goods. 3) Industrial products are bought for resale or business use and include raw materials, capital items, and supplies/services. Raw materials are further divided into farm/natural products and manufactured materials. Capital items include installations and equipment. Supplies/services include maintenance/operating supplies and business services.
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The document classifies products into three categories: 1) Based on durability into non-durable, durable, and services. 2) Consumer products are bought for personal use and include convenience, shopping, specialty, and unsought goods. 3) Industrial products are bought for resale or business use and include raw materials, capital items, and supplies/services. Raw materials are further divided into farm/natural products and manufactured materials. Capital items include installations and equipment. Supplies/services include maintenance/operating supplies and business services.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
Faculty in marketing DIT school of Business Greater noida Product classification
1. On the basis of durability
2. Consumer Product classification 3. Business Product classification 1. On the basis of durability
A. Non durable: non durable goods are tangible
goods normally consumed in one or few uses. i. They are purchased frequently consumed very often. ii. Smooth distribution and intensive availability at all possible places makes these products succeed in the market. iii. The marketer charges a small mark up and advertises heavily to build brand preference. B. Durable goods: durable goods are tangible goods that can be normally be used for many years. These products need more personal selling, after sales service, they offer higher margin and are often backed up by guarantee and warranty programs.
C. Services: services are intangible, inseparable,
perishable products. Services need a good amount of quality control, credibility of the supplier and adaptability to variable consumption behavior. 2. Consumer Product
A product bought to satisfy personal and
family needs. There are three categories of consumer products. These groupings are based primarily on characteristics of buyer’s purchasing behavior PRODUCT CLASSIFICATION- Consumer Products
A. Convenience Products B. Shopping Products C. Specialty Products D. Unsought Goods A. Convenience Products
Convenience Products Is a relatively
inexpensive, frequently purchased item for which buyers want to exert only minimal effort. The buyer spends little time in planning the purchase of a convenience item or in comparing available brands or sellers. Ex:- Bread, Chewing Gum, Soft Drinks B. Shopping Products It is an item for which buyers are willing to spend considerable effort on planning and making the purchase. Buyers allocate ample time for comparing stores and brands with respect to prices, product features, qualities, services, and warranties. These products are expected to last for a fairly long time and thus are purchased less frequently than convenience items. Ex:- Appliances, Furniture, Bicycles, Cellular Phones. C. Specialty Products It possesses one or more unique qualities for which a buyer is willing to spend considerable purchasing effort. Buyers actually know what they want and will not accept a substitute. In searching for specialty products, purchasers do not compare alternatives. Ex:-Unique Sports Cars, Rare imported wine, Specific type of antique bone china set, Special handcrafted furniture D. Unsought goods
These are goods the consumer does not
know about or does not normally think of buying. These goods need advertising and more of personal selling for making a sale. 3. Industrial Product
A product bought for resale, for making
other products, or for use in a firm’s operation. Business Products can be classified into: A. Raw Materials B. Capital items C. Supplies and business services A. Raw Material and parts These are goods that enter the manufacturer’s product completely. They are two types namely: material and parts 1. Raw materials can be of a. farm products: are renewable as they involves agricultural production b. Natural products: the natural products are very often limited and often available in great bulk and low unit value 2. Manufactured materials can be classified as a. components material – iron, steel, zinc b. components parts- motors, integrated circuits B. Capital items These are long lasting goods that facilitate developing or managing the finished product. They include two groups: 1. Installations are the major purchases for the organization. e.g., buildings, offices, shop floors 2. Equipment: these equipment are not permanent and they need to be changed at different period of time. e.g., earthmovers, trucks,, office equipment like personal computers C. Supplies and business services These are the short term goods and services that facilitate managing or developing the finished product supplies. They can be of two types: 1. Supplies- a. maintenance supplies b. operating supplies 2. Business services- a. maintenance services e.g., writing papers etc b. Business advisory services e.g., consultancy, advertising, etc.