Classifications of Products/Goods

 Products that are marketed can be generally classified

according to USE, DIFFERENTIATION, TYPE, and
DURABLITY.
 According to Use
 CONSUMER GOODS- are goods that are purchased for
personal consumption and/or for household use.

Examples: instant noodles, biscuits, detergent soap,

shampoo and other similar items.
 According to Use
 INDUSTRIAL GOODS- are goods that are purchased in order
to make other goods, to serve as a raw material or input in
the production of other goods.

Examples: aluminum (manufacture kitchen equipment anf

cans), electronic cables and wires ( use for electric conduit for
home appliances.
 According to Differentiation
 UNDIFFERENTIATED GOODS- are products whose physical
characteristics are so identical , that it would be difficult, if
not impossible, to distinguish one purchased from one
vendor or another.

Examples: products that are sourced from NATURE.

 According to Differentiation
 DIFFERENTIATED GOODS- are products that are varied in their
characteristics and features that make them distinguishable from
one another.

Examples: designs, models, colors and features of cars, phones,

appliances and other similar products.

BRANDING- the ability of manufacturers to successfully distinguish their

products from other competitors.

Branding provides a product or service a unique distinguishing name,

logo, symbol, or image which is used to differentiate it from other similar
products and services.
Why do some manufacturers brand their products, while others
do not?

The major reason is COST . When a company decides to brand

its products, it must recognize that there are two
responsibilities that accompany branding:
1. All products carrying the brand must have quality
consistency.
2. The brand must be advertised and promoted
Once a brand acquires customer recognition, a
positive market reputation and goodwill,
higher selling prices can be charged, larger
sales revenues are generated, and higher profit
margins are realized. This is because customers
begin to attach value to the brand than to the
product itself. This appreciation in a brand’s
value from the point of view of the customers
is called BRAND EQUITY.
 According to Durability
 CONSUMABLE –is a product whose benefit can only be used
by a consumer for a short period of time, sometimes only a
few minutes.

Examples: foods, drinks and other edible items, soap,

shampoo, deodorant, and any other similar products.
 According to Durability
 SEMI-DURABLES –provide benefits to the consumer for a
longer period of time, usually spanning several months.

Examples: clothes, shoes, belts, jackets, etc.

 According to Durability
 DURABLES –are products that are manufactures to last a
long time. They are capable of providing consumers with
years of beneficial use.
 - usually expensive and need augmented product to market
them effectively.
Examples: cars, houses, home appliances, etc.
 According to Type
 CONVENIENCE GOODS–are products that are purchased
frequently, are usually inexpensive, and do not require much
purchase effort and evaluation.

Examples: candy, gum, newspapers, and the like

They key to the successful marketing of convenience goods is its

availability in as many retail outlets as possible, catering to
consumer need where and when it arises.
 According to Type
 SHOPPING GOODS –are products that are purchased less
frequently than convenience goods, are relatively more
expensive, and require some amount of information search
and evaluation prior to purchase.

Examples: shoes, clothes, handbags, and the like

The key to successful marketing of shopping goods depends on

intensive advertising, well-trained salespersons, and positioning
company products as superior alternatives to competitors’
products.
 According to Type
 SPECIALTY GOODS –are goods that require an unusually
large effort on the part of consumers to acquire. Consumers
are willing to travel great distances to where these goods
can be purchased.

Examples: branded luxury merchandise, work of art,

automobiles and homes.

The key to successful marketing of specialty goods require the

promotion of strong brand image and identities.
 According to Type
 UNSOUGHT GOODS –are goods that consumers seldom
actively look for, and are usually purchased for extraordinary
reasons, such as fear or adversity, rather than desire.

Examples: investments, memorial plans, insurance and the like.

The key to successful marketing of unsought goods require

advertising and aggressive selling efforts and are usually
marketed using highly-trained and persuasive salespersons.