You are on page 1of 6

Product Classification

A. Durability and Tangibility Classification
a. Non –durable goods: Non Durable goods are tangible goods normally consumed in or few days.

Example: soap, salt and biscuits.
b. Durable Goods: are Tangible goods that can normally be used for many years. For example, color TV, refrigerator, washing machines and vacuum cleaners. c. Services are intangibles, inseparable, variable and perishable products

For example: airlines and banking services.

B. Consumer good classification Consumer products are products and services bought by final consumers for personal consumption. Marketers usually classify these products and services further based on how consumers go about buying them.

Consumer products include continence products, shopping products, specialty prod. And unsought products.

These products differ in the ways consumers buy them.

a. Convenience Products: are consumer products and services that consumers usually buy frequently, as soon as they feel the need for them, they require minimum or no planning before the purchase.

Example: detergent, soft drinks, cigrattes, cholocates magazines , fast food etc. Convenience goods can be further classified into three categories:

Eg: A Mercedes is a specialty product. . designer clothes.1. Shopping products: are less frequently purchased consumer products and services that customers compare carefully on suitability. these are differ in product feature and services that may be more important than price. Specialty Products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Examples include specific brands of cars. high priced photographic equipment. consumer spend much time and efforts in gathering information and making comparisons. they spend a lot of time in planning the purchase deciding on the brand and arranging for the money to buy the product. Shopping goods are of two types: Homogeneous goods. They are more expensive than convenience products and are not purchased frequently. clothing. jewelry and hotel and air lines. and household appliances like TV. Shopping products marketers usually distribute their products through fewer outlets that are known for the quality of their merchandize and provide deeper sales support to help customers in their comparison efforts. When buying shopping products and services. price. However. Emergency goods: Consumer purchases on urgent need. b. used cars. and style. quality. Impulse goods: Consumer purchase without any planning or search effort 3. c. these are similar in quality but different enough in price to justify shopping comparison. Staple goods: Consumer [purchase on regular basis 2. These are goods that the consumers in the process of selection and purchase characteristically compares on such bases as suitability and quality Examples include furniture. refrigerator and washing machines and services of medical or legal specialists. They invest only the time needed to reach dealers carrying the wanted products. Buyers do not compare specialty product. Heterogeneous goods.

Unsought products are consumer products that the consumer either does not know or knows about but does not normally think of buying. tires. Suppliers and services Material and parts…… include raw materials and manufactured materials and parts. Materials and parts 2. petroleum. wires) and component parts ( small motors. desks) they have a shorter life than installations and simply aid in the production process Suppliers and services: . Industrial products: A IP are those purchased for further processing or for use in conducting a business. Thus distinction between a consumer product and IP is based on the purpose for which the product is brought. cement. vegetables) and natural products (fish. castings) Capital parts are long lasting goods that facilitates developing or managing the finished product. cotton. Eg Life insurance. crude. Three groups of IP and services include 1. donation for charity and blood donations to hospitals. ore) Manufactured materials and parts consists of components materials(iron.Eg cars d. C. They include two groups: installation and equipments Installation consists of major purchases suh a s builidings( factories . Capital item 3. Fax machines . Raw mat consists of farm products (wheat. offices) and fixed equipment includes portable factory equipment and tools (hand tool. fruits. By their very nature. personal selling and other marketing efforts. lift trucks) and office equipment (computers. unsought products require a lot of advertising.

Services include maintenance and repair services ()windows cleaning. Marketer must see themselves as benefit providers. computer repair) and bus. paper. advertising)) such services are usually supplied under contract. the marketer needs to think through five levels of the product. and repair and maintenance items(paints. I Level . Each level adds more customer value and the five constitute a customer value hierarchy. Bus. nails. the purchaser of drill is buying “holes”. mgmt consulting. Product Levels In planning its market offering. pensils a). of efforts or comparision. )) Suppliers are the convenience products of the industrial field because they are usually purchased with a min. A hotel guest buying “ rest and sleep“.Core Benefit The most fundamental level is Core Benefit: the fundamental service or benefits that the customer is really buying. Advisory services(legal. coal. the market offering.Su[pplierss include operating supplies(lubricants. Potential Product Augmented Product Expected Product Basic Product Core Benefit . These are short listing goods and services that facilitate developing or managing the finifhes product.

In less developed countries.II Level . the marketer has to turn the core benefit into basic product.Augmented Product At the fourth level. Thus a hotel room include a bed. Each augmentation adds cost. Because most hotels can meet this minimum expectation. a set of attributes and conditions buyer normally expect when they purchase this product. towel. and a relative degree of quiet. The marketer has to ask whether customers will pay enough to cover the extra cost. 2. this means that competitors will have to search for still other features and benefits. Some things should be noted about product augmentation strategy: 1. competition takes place mostly at the expected product level. . Hotel guests expect a clean bed. III Level . using. the traveler normally will settle for whichever hotel is most convenience or least expensive. working lamps. dresser etc. A hotel include a remote control Television set. fresh flowers. fresh towel. Augmented benefits soon become expected benefits. IV Level . fixing and disposing of the product. Product augmentation leads the marketer to look at the user’s total consumption system: the way the user performs the tasks of getting. the marketer prepares an augmented product that exceeds customer expectations.Basic Product At the second level. bathroom.Expected Product At this level. the marketer prepares an expected product. Today competition essentially takes place at the product augmentation level. Rapid check in. fine dining and room service.

Successful companies add benefits to their offering that not only satisfy customers but also surprise and delight them. Here is where companies search for new ways to satisfy customers represent an innovative transformation of the traditional hotel product.Potential Product At this level. all the possible augmentations and transformations the product might undergo in the future.V Level . . Delighting is a matter of exceeding expectations.