Product classification

classification of product in easy way

1. PRODUCT Presented by Amaresh Tyagi Assistant Professor Sobhasaria Group of Institutions

2. PRODUCT “A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or a want.” According to Philip Kotler Product levels/Dimensions of Product-

3. Product classification Product may be of two types – 1- Consumer products 2- Industrial products 1- Consumer products – These products are meant for use or consumption by the ultimate consumers. e.g. Butter ,T.V., Cosmetics products etc. Convenience Goods- The consumer usually purchases these goods frequently , immediately and with a minimum of efforts. Ex. – Soft drink , Soaps

4. These can be further divided – Staples - These are the goods consumer purchases on a regular basis. Ex. – Toothpaste. Soap Impulse Goods – These are purchased without any planning or search effort. Ex. - Potato Chips, Chocolates Emergency Goods – These are purchased when a need is urgent. Ex. – Umbrella , rain Coats Shopping Goods - These are the goods that the consumer characteristically compares on such bases as suitability, quality, price, and style. Ex. – Furniture , Clothing etc.

5. These goods may be of two types- Homogeneous Shopping Goods Heterogeneous Shopping Goods Specialty Goods – These have unique characteristics or brand identification for which sufficient number of buyers are willing to make a special purchasing efforts. Ex. – Mercedes car , Photographic equipment etc. Unsought goods - These are the goods that consumer does know about or does not normally think of buying such goods. These goods require advertising and personal selling support. Ex. - Smoke Detectors

6. Type of Consumer Products Marketing Considerations Convenience Shopping Specialty Unsought Customer buying behavior Frequent purchase; little planning, little comparison or shopping effort; low customer involvement Less frequent purchase; much planning and shopping effort; comparison of brands on price, quality, and style Strong brand preference and loyalty; special purchase effort; little comparison of brands; low price sensitivity Little product awareness; knowledge (or, if aware, little or even negative interest) Price Low price Higher price High price Varies Distribution Intensive Selective Exclusive Varies

7. Contd. Marketing Considerations Convenience Shopping Specialty Unsought Promotion Mass promotion by the Producer Advertising and personal selling by both the producer and resellers More carefully targeted promotion by both the producer and resellers Aggressive advertising and personal selling by the producer and resellers Examples Toothpaste, magazines, and laundry detergent etc. Major appliances, televisions, furniture, and clothing Luxury goods, such as Rolex watches or fine crystal Life insurance and Red Cross blood donations

8. INDUSTRIAL PRODUCTS Industrial products are those purchased for further processing or for use in conducting a business. Industrial products can be classified – Materials and Parts , Capital Items , and S upplies and Services. Materials and Parts – These includes – Raw materials Manufactured material s and parts Raw materials- It consists Farm products (wheat, cotton, livestock,fruits , vegetables ) Natural products (fish, lumber, crude petroleum, iron ore).

9. Manufactured material s and parts - These consists Component materials ( iron, yarn, cement) Component parts ( small motors, tires) Capital Items - Capital items are industrial products that aid in the buyer’s production or operations, including I nstallations and A ccessory equipment. Installations consist of major purchases such as buildings (factories, offices) and fixed equipment (generators, drill presses, large computer systems , elevators). Accessory equipment includes portable factory equipment and tools (hand tools, lift trucks) and office equipment (computers, fax machines, desks). They have a shorter life than installations and simply aid in the production process.

10. Supplies and Services – Supplies includes O perating supplies (lubricants, coal, paper, pencils) and Repair and maintenance items (paint, nails, brooms ). Supplies are the convenience products of the industrial field because they are usually purchased with a minimum of effort or comparison. Business services include M aintenance and repair services (window cleaning, computer repair) and Business advisory services (legal, management consulting, advertising). Such services are usually supplied under contract .