Classification of Products

Classification of Products

 Consumer Products – intended for consumer market

or end users who purchase for their personal
consumption or family consumption.

 Industrial Products – intended for business market

who purchases products for further processing or for
their own business use.
Classification of Consumer Products

 Convenience Products
 Inexpensive, frequently purchased.
 Little effort needed to purchase them.
 Staple, Impulse and emergency goods.
 Shopping Products
 Less frequently purchased
 Consumer does research before purchase.
 Specialty Products
 Unique features
 Consumer is prepared to pay a premium price.
 Unsought Products
 Those good that consumers do not know or
 Doesn’t think of buying.
 Durability and Tangibility
 Nondurable Consumer Products
 Tangible goods consumed in one or few uses
 Purchased frequently
 Strategy : availability , low priced , heavily advertised
 Durable Consumer Products
 Tangible goods that survive many uses
 Require more personal selling and service
 Tangible Products – can be touched or stored
 Intangible Products – services
Classification of Industrial Products

 Materials and Parts

Raw Materials Farm Products

Manufactured Natural
materials and parts
Products
 Materials and Parts

Raw Materials Farm Products

Manufactured Natural
materials and parts
Products
 Materials and Parts

Raw Materials Component

materials

Manufactured Component
materials and parts
Parts
 Materials and Parts

Raw Materials Component

materials

Manufactured Component
materials and parts
Parts
 Capital Items
 Installations – major purchases such as buildings and
fixed equipment
 Accessory Equipment – portable factory equipment
and tools and office equipment
 Supplies and Services

a. Supplies
 Maintenance and repair items
 Operating supplies
b. Business Services
 Maintenance and repair services
 Business advisory services
 DIFFFERENCE BETWEEN CONSUMER
MARKET AND INDUSTRIAL MARKET

Consumer Market
a. Products are purchased by an individual or final user.
b. Products are purchased in small quantities or retail.
c. Products are purchased from retail stores or convenience stores.
d. Purchase decision is usually done by the final user
e. Consumer buys from different stores
Industrial Market
a. This type of market has fewer but larger buyers.
b. Close supplier and customer relationship.
c. Demand for products is derived from consumer market level of demand.
d. This type of market orders and buys products directs form manufacturers.
e. Buyers are composed of professional purchasers.
f. Purchase decision is not based on the decision of only one person.
CHARACTERISTICS OF SERVICE
PERISHABILITY

Service if not used in time is lost forever. Service

cannot be stored.

The concept is simple – if you do not watch the

movie now, you wont get a refund of the ticket. If you
do not board your plane or your train, you cannot ask
back for the charges of the ticket. A service once order,
perishes, if it is left unused.
INTANGIBILITY

Unlike product, service cannot be touched or

sensed, tested or felt before they are availed. A service
is an abstract phenomenon.
Thus, there is neither potential nor need for
transport, storage or stocking of services.
HETEROGENEITY

The features of service by a provider cannot be

uniform or standardized.
Each service is unique. It is one-time generated,
rendered and consumed and can never be exactly
repeated as the point in time, location, circumstances,
conditions, current configurations and/or assigned
resources are different for the next delivery, even if the
same service consumer requests the same service.
INSEPARABILITY

Personal service cannot be separated from the

individual and some personalized services are created
and consumed simultaneously.
For example hair cut is not possible without the
presence of an individual. A doctor can only treat when
his patient is present.