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What is product classification?

Product classification refers to the organization of the different types of
products that consumers buy. Knowing these classifications can help marketers
create advertisements for their company's goods and services.

There are four main product classifications. Professionals base these categories
on consumer habits, costs and their general characteristics. The four product
classifications are:

1. Convenience products

Convenience products describe the items and services that customers purchase
on a regular basis with little thought. Typically, consumers use the same or
similar brands for convenience products unless they are compelled to do
otherwise through an advertisement or availability. For example, dish soap is a
convenience product. Another characteristic of convenience products is that
they are easy to find. Most consumers can buy dish soap without conducting
research or making a special trip to the store for it.

2. Informed purchases

Informed purchases, also known as shopping goods, refers to the products and
services that consumers don't make often and usually perform research before
doing so. These types of products can range from more expensive items, such
as a house or car, or more regular purchases, such as a pair of shoes.
Consumers typically take more time to make informed purchases, which can
change the way marketers advertise them.

3. Specialty items

Specialty items are unique products that marketers can advertise to a certain
demographic of consumers without worrying about their competition. These
products can include innovative goods that are one of a kind on the market or
brand-name products that have a loyal fan base. While these items may be
more expensive than others, consumers often feel less of a need to deliberate
or research their decision to purchase a specialty item.
4. Mandatory purchases

Mandatory purchases, also known as unsought goods, are products that

consumers buy out of necessity rather than desire. Typically, these products are
household or safety items that customers don't feel excited to buy, such as
batteries, smoke detectors, air filters and cleaning products. Sometimes,
consumers may buy these items out of fear or an obligatory response, such as
buying a fire extinguisher or a car maintenance membership just in case of an
emergency.

Five Product Levels (Kotler)

Each level in this model represents the different categories of products and how
each fills different wants, needs and demands for a customer. Here are the five
different types of levels in Kotler's Model:

1. Core benefit

The core benefit is the primary need that customers can fill from purchasing a
product. This is the level of a product, therefore, that satisfies a basic want or
need for a customer. For example, a pet store's core benefit is to sell pet care
supplies.

2. Generic product

This is a version of the product that provides only the features that allow it to
meet a customer's fundamental needs. This means the product functions at its
most basic level. For example, if a company sells protein powder, a generic
version of its product might only contain the supplements that provide
nutrition, not any flavors or additives.

3. Expected product

This is the collection of traits that customers expect a product to have. For
example, a customer who buys a pair of headphones likely expects it to have
good audio quality and comfortable earpieces. Different customers may also
have different expectations for the same product.
4. Augmented product

This refers to a product to which a company adds extra and improved features
that allow the product to exceed its basic functions. Companies may do this to
make a product more competitive among similar products. For example, a
restaurant may entice customers by adding live music and performances to its
establishment.

5. Potential product

This includes all the changes that a company might add to its product in the
future. These changes aim to increase customer satisfaction and keep
customers engaged by continuously improving the product. For example, a car
wash might offer a rewards program to customers so that they receive a new
trinket for their car with each visit.

What is a product line?

A product line is a group of similar products manufactured and sold by one
company. Many larger and more established companies have multiple product
lines because of their financial capabilities and an understanding of customers'
needs, while newer companies tend to have fewer.

Companies place products into product lines depending on characteristics such

as functionality and price range. For example, a company that sells nail care
products may have one product line that sells different colors of nail polish and
another product line that sells multiple types of nail polish removers. The nail
polishes have the same function, so they are in the same product line. Neither
the polish nor the polish remover is used for the same purpose, so they are in
different product lines.

What is a product mix?

The product mix consists of every product a business develops and sells. Within
a product mix, there are four dimensions—width, length, depth and
consistency. Here is a brief description of each dimension:

 Width: The width of a product mix refers to the total number of

product lines a business has. For example, if a breakfast food
company has a product line for hot cereal, cold cereal and
breakfast snacks, it would have a width of three because it has
three product lines.
  Length: The length includes the total number of products in the
mix. For example, if the breakfast food company had three
product lines and each line had four products, the length of the
mix would be 12.
 Depth: Depth is the number of variations within a product line.
Variations consist of different sizes, flavors, colors or other
distinguishable characteristics. If the breakfast food company's
product line for hot cereal included strawberry, apple, banana
and cinnamon flavors, the depth of that particular product line
would be four.
 Consistency: The consistency of the product mix refers to how
closely products relate to each other in terms of use, distribution
channels or type of consumer. The breakfast food company is
likely going to have a higher consistency of product lines than a
retail company that sells shoes, clothes and home goods.

The Roles and Responsibilities of a Product Manager: 5 Things You Need

to Know

1. Defining a Vision and Strategy

Firstly, one of the key roles of a product manager is defining the product vision and strategy.
Product managers are responsible for establishing a clear vision and strategy for the product,
and then aligning it with the overall business objectives.

2. Identifying Customer Needs

Secondly, knowing what customers want is a crucial responsibility. To that end, product
managers conduct market research, gather feedback, and analyze user data to identify
customer needs and pain points.

3. Creating Product Roadmaps

This is another pivotal responsibility undertaken by product managers. They have to develop
product roadmaps that outline the planned features and enhancements of products,
prioritizing them based on customer and business needs.

4. Collaborating With Cross-Functional Teams

Effective collaboration with other members of the organization is also essential. They work
closely with UX/UI designers, developers, and other stakeholders to ensure successful
product development and delivery.
5. Monitoring and Analyzing Product Performance

Finally, monitoring and analyzing product performance is crucial for product managers. They
track Key Performance Indicators (KPIs) to assess the product’s success and make data-
driven decisions for its improvement.

Product Life Cycle

The term product life cycle refers to the length of time from when a product
is introduced to consumers into the market until it's removed from the
shelves.
Introduction Stage
The introduction phase is the first time customers are introduced to the
new product. A company must generally includes a substantial investment
in advertising and a marketing campaign focused on making consumers
aware of the product and its benefits, especially if it is broadly unknown
what the item will do.

During the introduction stage, there is often little-to-no competition for a

product, as competitors may just be getting a first look at the new offering.
However, companies still often experience negative financial results at this
stage as sales tend to be lower, promotional pricing may be low to drive
customer engagement, and the sales strategy is still being evaluated.

Growth Stage
If the product is successful, it then moves to the growth stage. This is
characterized by growing demand, an increase in production, and
expansion in its availability. The amount of time spent in the introduction
phase before a company's product experiences strong growth will vary
from between industries and products.

During the growth phase, the product becomes more popular and
recognizable. A company may still choose to invest heavily in advertising if
the product faces heavy competition. However, marketing campaigns will
likely be geared towards differentiating its product from others as opposed
to introducing the goods to the market. A company may also refine its
product by improving functionality based on customer feedback.

Maturity Stage
The maturity stage of the product life cycle is the most profitable stage, the
time when the costs of producing and marketing decline. With the market
saturated with the product, competition now higher than at other stages,
and profit margins starting to shrink, some analysts refer to the maturity
stage as when sales volume is "maxed out".

Depending on the good, a company may begin deciding how to innovate

its product or introduce new ways to capture a larger market presence.
This includes getting more feedback from customers, and researching their
demographics and their needs.

Decline Stage
As the product takes on increased competition as other companies
emulate its success, the product may lose market share and begin its
decline. Product sales begin to drop due to market saturation and
alternative products, and the company may choose to not pursue
additional marketing efforts as customers may already have determined
whether they are loyal to the company's products or not.