There are three main types of product classification, but let’s check first what is product classification? Product classification is a term which is used to divide products into different categories on the basis consumer buying experience.
Each of these products can either purchased by industrial consumers or final consumers. Final end-users purchase consumer products for personal consumption.
Types of Product Classification
Businesses to business products are purchased by individual or other business organizations to utilize in their processing or administrative operations. Usually industrial products are broadly used.
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These products include consumables like raw materials or paper clips that are transformed into finished products. Let’s check here below the types of product classification.
- Consumer Product
Final Consumers buy consumer products for personal consumption. These products are further classified by the marketers on the basis of how consumers approach while purchasing them.
Consumer products are further classified into shopping products, convenience products, unsought products and specialty products. These products varies in the manners consumers purchase them and how they are commercialized.
Convenience Products: The consumer products or services that are generally purchased by consumers immediately, frequently and with less buying struggle & comparison are known as convenience products. Examples contain newspapers, soaps, candy and fast food.
Usually convenience products have lower price and these are placed in many locations so that when consumers need them, they are promptly available.
Shopping Products: The less often bought consumer products and services that are carefully compared on the basis of price, suitability, quality and style.
The consumers spent more time and efforts in collecting information and performing comparisons while purchasing of shopping products and services.
Examples contain major appliances, clothing, furniture, used cars and hotel &motel services. Usually products are distributed through few numbers of outlets by the marketers along with the potential sales support to assist consumers in their comparison endeavor.
Specialty Products: The consumer products and services that have brand identification or distinguished features for which an important portion of purchasers are ready to make particular buying struggle are considered as specialty products.
Examples contain high priced photographic equipment, particular brands and kinds of cars, services of legal or medical specialist and designer clothes.
The specialty products are not generally compared by the purchasers. The purchasers only put money for time required to contact with dealers that are holding the desired products.
Unsought Product: Unsought products are those products or services that are not known to the consumers or if they have information about those products and services, they do not consider the information during their purchasing activity.
Often main new inventions are unsought to the time when they become familiarized by consumers through advertisement. Blood donation to Red Cross and life insurance are two well-known but unsought examples.
Unsought products required high portion of personal selling, advertising and other marketing struggles, because of their very nature.
- Industrial Products
Those products that are bought for utilizing in operating business or for further processing are considered as industrial products.
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The objective for which the product is purchased, provides the basis for distinguishing industrial products from consumer products. For example, the lawn mower is a consumer product in case the consumer purchases it for utilization around home.
On the other side, the same lawn mower becomes industrial product when it is purchased landscaping business. There are three main categories of industrial products and services, which are as follow.
Material and Parts: Produced material & parts and raw materials are contained in this category. Raw materials further contain natural products or farm products.
Similarly components materials & components parts are contained in the produced materials & parts. In most cases industrial users directly purchase the produced materials & parts.
Two main marketing components in this regard are price and service. There is little importance of advertising and branding.
The demand for consumer products provides the basis for demand for industrial products. This is called “derived demand”.
Capital Items: Industrial products that support in the production & operations of purchaser, including accessory equipment and installation, are regarded as capital items.
Major purchases are contained in installation category like fixed equipment, building. Similarly office equipment and portable factory equipment & instruments are included in the category of accessory equipment. Their life cycle is smaller than installations and just assists in the manufacturing process.
Supplies and Services: Supplies and services is the final category of industrial products. It further contains repair & maintenance items and operating supplies.
Because of the reason that consumers usually purchased supplies with little comparison or efforts as supplies are the convenience products of the industrial area.
Business advisory services and repair & maintenance services are contained in the business services. Such services are generally provided under contract.
- Organizations, Persons, Ideas and Places
In recent years marketers have widen the thought of a product to contained other “marketable entities” known as organizations, persons, ideas and places, in addition to tangible services and products.
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The activities to “sell” organization itself are mostly executed by the organization. Activities undertaken to produce, keep or change the behavior and attitudes of the targeted customers towards the business organization are contained in the organization marketing.
Organizational marketing is executed by both profit and non-profit organizations. People can also be regarded as products. Activities considered to produce, keep or change behavior and attitudes of special people are contained in the person marketing.
Person marketing is executed by all kinds or business organizations and people. Similarly ideas too can be marketed.
