The classification of products is a fundamental concept in marketing that organizes products based on certain characteristics, making it easier for marketers to strategize and tailor their approaches for different types of products.
Here's a detailed look at the primary ways products are classified:
I. Based on End-User
A. Consumer Products:
These are products bought by the final consumers for personal, family, or household use.
They can be further categorized into:
Convenience Products: Items that consumers purchase frequently, immediately, and with minimal comparison and buying effort (e.g., bread, soft drinks).
Shopping Products: Products for which consumers compare quality, price, and style in the process of selection and purchase (e.g., furniture, clothing).
Specialty Products: Items with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchasing effort (e.g., luxury cars, high-end electronics).
Unsought Products: Goods that the consumer does not know about or does not normally consider buying (e.g., life insurance, funeral services).
B. Industrial Products:
Products purchased for further processing or for use in conducting a business.
Unlike consumer products, these are based on the demand derived from consumer products.
They include:
Materials and Parts: Raw materials and components used to create other products.
Capital Items: Long-lasting goods that facilitate developing or managing the finished product (e.g., buildings, machinery).
Supplies and Services: Operating supplies, maintenance items, and services that do not directly enter the production process (e.g., lubricants, repair services).
II. Based on Durability and Tangibility
A. Durable Goods:
Tangible goods that survive many uses and are typically more expensive. They include items like cars, appliances, and furniture.
B. Nondurable Goods:
Goods consumed in one or a few uses, such as food products, fuel, and stationery.
C. Services:
Intangible goods that cannot be seen, tasted, felt, heard, or smelled before they are bought (e.g., haircuts, repairs, and legal advice).
III. Based on Consumer Shopping Effort
A. Convenience Goods:
Require minimal shopping effort. Consumers expect these to be widely available.
B. Shopping Goods:
Consumers are willing to put in effort to compare for the best quality, price, or style.
C. Specialty Goods:
Unique goods for which consumers will put in considerable effort to search out and buy.
IV. Other Classifications
A. Emergency Goods:
Products that are purchased due to an urgent need (e.g., umbrellas during rain).
B. Homogeneous and Heterogeneous Goods:
Homogeneous goods are seen as identical by consumers, who usually buy the cheaper one.
Heterogeneous goods are seen as different, with consumers weighing quality, style, or price differently.
Understanding these classifications helps businesses in various ways, including product design, positioning, pricing strategies, distribution planning, and promotional tactics. Each category requires a different marketing mix to effectively reach and satisfy the target market.