The document discusses how marketers classify products. It outlines that products are classified based on durability and tangibility into non-durable goods, durable goods, and services. Non-durable goods are consumed quickly, durable goods last longer, and services are intangible. Consumer goods are further divided into convenience goods, shopping goods, specialty goods, and unsought goods based on frequency and cost of purchase. Industrial goods include materials and parts, capital items, and supplies that facilitate product development or management. The classifications help marketers develop appropriate strategies for different product types.

1. SETTING
PRODUCT
STRATEGY

2. 1. What are the
characteristics of
products and how
do marketers
classify products?

4. Components
of Market
Offerings
VALUE BASED PRICE
PRODUCT
FEATURES
AND
QUALITY
SERVICES
MIX AND
QUALITY

5. PRODUCT
LEVEL:

6. PRODUCT
CLASSIFICATION
DURABILITY
AND
TANGIBILITY
CONSUMER
GOODS
INDUSTRIAL
GOODS

7. 1. DURABILITY AND TANGIBILITY
NON DURABLE GOODS:
• GOODS CONSUMED IN ONE OR FEW USES
• PURCHASED FREQUENTLY
• STRATEGY: AVAILABILITY, LOW PRICE, HEAVILY ADVERTISED

8. 1. DURABILITY AND TANGIBILITY
Durable goods:
• Goods that survive many uses
• Require more personal selling

9. 1. DURABILITY AND TANGIBILITY
SERVICES:
• INTANGIBLE PRODUCT
• REQUIRES MORE QUALITY CONTROL

10. 2. CONSUMER GOODS
CONVENIENCE GOODS:
• FREQUENTLY PURCHASED
• INEXPENSIVE
• EMERGENCY GOODS

11. 2. CONSUMER GOODS
SHOPPING GOODS:
• NOT FRQUENTLY PURCHASED
• COSTLY

12. 2. CONSUMER GOODS
SPECIALITY GOODS:
• UNIQUE CHARACTERISTICS OR BRAND IDENTIFICATION

13. 2. CONSUMER GOODS
UNSOUGHT GOODS:
• CONSUMER WILL BE NOT AWARE OF THESE GOODS
• DOES NOT THINK OF BUYING

14. 3. INDUSTRIAL GOODS
MATERIALS AND PARTS:
RAW MATERIALS
MANUFACTURED
MATERIALS AND PARTS
FARM PRODUCTS
NATURAL PRODUCTS

15. 3. INDUSTRIAL GOODS
RAW MATERIALS
MANUFACTURED
MATERIALS AND PARTS
FARM PRODUCTS
NATURAL PRODUCTS
MATERIALS AND PARTS:

16. 3. INDUSTRIAL GOODS
MATERIALS AND PARTS:
RAW MATERIALS
MANUFACTURED
MATERIALS AND PARTS
COMPONENT
MATERIALS
COMPONENT PARTS

17. MATERIALS AND PARTS:
RAW MATERIALS
MANUFACTURED
MATERIALS AND PARTS
COMPONENT
MATERIALS
COMPONENT PARTS
3. INDUSTRIAL GOODS

18. 3. INDUSTRIAL GOODS
CAPITAL ITEMS :
• LONG LASTING GOODS
TWO TYPES:
1. INSTALATION
2. EQUIPMENT

19. 3. INDUSTRIAL GOODS
SUPPLIES:
• FACILITATE IN DEVELOPING OR MANAGING FINISHED PRODUCTS
TWO TYPES:
• MAINTAINANCE AND REPAIR ITEMS
• OPERATING SUPPLIES

20. 3. INDUSTRIAL GOODS
BUSINESS SEVICES:
TWO TYPES:
1. MAINTAINANCE AND REPAIR ITEMS
2. BUSINESS ADVISORY SERVICES

21. RECAP:
PRODUCT
CLASSIFICATION
DURABILITY AND
TANGIBLITY
CONSUMER
GOODS
INUDSTRIAL
GOODS
NON DURABLE
GOODS
Durable goods
SERVICES
UNSOUGHT
GOODS
SPECIALITY
GOODS
SERVICES
SUPPLIES AND
BUSINESS SEVICES
CAPITAL ITEMS
MATERIALS AND
PARTS

23. Created by:
sagar s t
s.i.t, tumkur
during an
internship by
prof. Sameer mathur
iim, lucknow