PRODUCT CLASSIFICATION

The nature of product is found to have considerable impact on the method of product positing. There
are two classes of products consumer goods, and industrial goods, and this classification is useful in
product positioning. The table given below shows the categories of consumer and industrial goods.
Marketers have traditionally classified products on the basis of there characteristics: durability,
tangibility and use. The following figure shows the products classification:

1 1. Durability 2 2. Consumer 3 3. Industrial

and tangibility goods goods
N on-durable Convenience Material and
goods goods parts
i. Stable goods:
consumer
purchase on
regular basis.
ii. Impulse
goods:
consumer
purchase
without any
planning or
search efforts.
iii. Emergency
goods:
consumer
purchase on
urgent need.
Durable goods Shopping Capital items
goods

Services Speciality Supplies and

business
services
Unsought
goods

Tangible / Intangible Attributes – key points

Tangible Touch See Taste Smell

Intangible Can’t see Can’t touch Can’t smell Can’t taste

DURABILITY AND TANGIBILITY

(a) Non – durable goods: non-durable goods are tangible goods normally consumed In one or a few uses,
for example, soap, salt and biscuits.

(B) Durable goods: for example, colour TV, Refrigerator, washing machine and Vacuum cleaners.

(c) Services: services rate intangible, inseparable, variable and perishable products, for example, airline
and banking services

CONSUMER GOODS CLASSIFICATION

a. Convenience Goods: these are goods that the customer usually purchases frequently immediately
and with a minimum of efforts, example includes soaps and newsppers
. Convenience goods can be further classification into three categories:
a. i. Stable goods: consumer purchase on regular basis.
b. ii. Impulse goods: consumer purchase without any planning or search efforts.
c. iii. Emergency goods: consumer purchase on urgent need.

b. Shopping Goods: these are goods that the customer, in the process of selection and purchase
characteristically compare on such bases as suitability and quality. Example: furniture, electrical
appliances etc.

c. Specialty goods: these are goods with unique characteristic or brand identification for which a
sufficient number of buyers are willing to make a special purchasing effort. For example, cars. a.
Unsought goods: these are goods the consumer does not know about or does not normally think of
buying. The classic example of known but unsought goods is life insurance.

INDUSTRIAL GOODS CLASSIFICATION

a. Material and Parts: these are goods that enter the manufacturer’s product completely. They fall into
two classes. Raw material and manufactured material part

b. Capital Items: these are long lasting goods that facilitate developing or managing the finished
products. They include two groups: installation and equipments.

C. Supplies and Business Services: these are short-listing goods and services that facilitate developing or
managing the finished products.