Product Policy. Product Classifications
Category: Marketing
In seeking marketing strategies for individual products, marketers have developed several product classification schemes based on product characteristics.
Durable Goods, Non-durable Goods, and Services
Products can be classified into three groups according to their durability or tangibility. Nondurable goods are consumer goods that are normally consumed in one or a few uses. Examples include beer, soap, and salt. Durable goods are consumer goods that are used over an extended period of time and which normally survive many uses. Examples include refrigerators, automobiles, and furniture. Services are activities, benefits, or satisfactions that are offered for sale. Examples include haircuts and repairs.
Consumer Goods and Industrial Goods
Products can also be classified into groups according to who utilizes the goods — the consumer or the industry. Consumer goods are those bought by final consumers for personal consumption. Marketers usually classify these goods based on consumer shopping habits. Classification of consumer goods:
Convenience goods are consumer goods and services which the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. They are usually low-priced and widely available. Examples include tobacco products, soap, and newspapers.
Shopping goods are consumer goods which the customer, in the process of selection and purchase, usually compares on such bases as suitability, quality, price, and style. When purchasing shopping goods, consumers spend considerable time and effort in gathering information and making comparisons. Examples include furniture, clothing, used cars, and major appliances.
Specialty goods are consumer goods which have unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Examples include specific brands and types of cars, high-priced photographic equipment, and men’s suits.
Unsought goods are consumer goods which the consumer either does not know about or knows about, but does not normally think of buying. New products such as smoke detectors and compact disc players are unsought goods until the consumer is made aware of them through advertising.
Industrial goods are those bought by individuals and organisations for further processing or for use in conducting a business. Thus, the distinction between a consumer good and an industrial good is based on the purpose for which the product is purchased. If a consumer buys a lawn mower for use around his house, the lawn mower is a consumer good. If the same consumer buys the same lawn mower for use in a landscaping business, the lawn mower is an industrial good.
Industrial goods can be classified according to how they enter the production process and according to what they cost. Materials and parts are industrial goods that enter the manufacturer’s product completely. Price and service are the major marketing factors, and brochures and advertising tend to be less important than price and service.
Capital items are industrial goods that enter the finished product partly. Quality, features, price, and service are major factors in supplier selection. The sales force tends to be more important than advertising, although advertising can be used effectively.
Suppliers and services are industrial goods that do not enter the finished product at all. Price and service are important factors because suppliers are quite similar and brand preference is not high.