Products and services falls into two broad classes based on the type of consumers who use them, that is consumer products and industrial products.Broadly defined Products also include other marketable entities such as experience,organization,persons,places and ideas. therefore will be discussing both Consumer and Industrial Products.

1. PRESENTED BY: THABISO FRANK MOLISE
MBA MARKETING

2.  PRODUCS FALL INTO TWO BROAD CLASSES BASED ON THE TYPE OF
CONSUMERS WHO USE THEM.
 CONSUMER PRODUCTS
 BUSINESS PRODUCTS

3.  Consumer products are products purchased for personal, family, or household use.
 They are often grouped into subcategories on the basis of consumer buying habits.
 Consumer products can also be differentiated on the basis of durability.
 Durable products are products that have a long life, such as furniture and garden
tools.
 Non-durable products are those that are quickly used up or worn out, or that
become outdated, such as food, school supplies, and disposable cameras

4.  Convenience products
 Shopping products
 Specialty products
 Unsought products

5.  These are products that consumers usually buy frequently, immediately and with
minimal comparison and buying effort.
 Convenience products are bought by consumers as soon as a need for them is felt
and at their earliest convenience. Example laundry detergent, candies and fast
foods
 They are usually low priced and marketers place them in many locations to make
them readily available when customer need or want them.

6.  These are less frequently purchased consumer
 Consumers usually compare attributes of shopping products such as quality, price,
and style between other products.
 Therefore, shopping products are more carefully compared against, and
consumers spend considerably more time, as opposed to convenience products,
comparing alternatives.
 As the name indicate, the reputation of the “SHOP” selling them matters a lot and
play a decisive role in consumers choice of making a purchase.
 Example include: Furniture, Clothing, major appliances and hotel services.

7.  Specialty products are products with unique characteristics or brand
identification.
 Consumers of such products are willing to exert special effort to purchase
specialty products.
 Specialty products are typically high priced, and buyers do not use much time to
compare against other products.
 Rather, buyers typically spend more effort in buying specialty products compared
to other types of products.
 Example purchase of Ferrari need to spend considerable effort sourcing a car.V
 they are found in select places.

8.  Unsought products are products that consumers do not normally buy or would not
consider buying under normal circumstances.
 Consumers of unsought products typically do not think about these products until
they need them.
 The price of unsought products varies.
 As unsought products are not conventionally thought of by consumers, they
require aggressive advertising and personal selling.
 Diamond rings, pre-planned funeral services, and life insurance are all examples
of unsought products.

9.  Business products are products and services that companies purchase to produce their
own products or to operate their business.
 Unlike consumer products, business products are classified on the basis of their use
rather than customer buying habits.
 These products are divided into subcategories:
 installations;
 accessory equipment
 raw materials
 component parts and processed materials
 maintenance, repair, and operating supplies
 business services
 Business products also carry designations related to their durability. Durable business
products that cost large sums of money are referred to as capital items. Nondurable
products that are used up within a year are called expense items.

10.  Installations are major capital items that are typically used directly in the
production process of products.
 Some installations, such as conveyor systems, robotics equipment, and machine
tools, are designed and built for specialized situations.
 Other installations, such as stamping machines, large commercial ovens, and
computerized axial tomography scan machines, are built to a standard design but
can be modified to meet individual requirements.
 The purchase of installations requires extensive research and careful decision
making on the part of the buyer.
 Manufacturers of installations can make their availability known through
advertising. Actual sale of installations, however, requires the technical
knowledge and assistance that can best be provided by personal selling

11.  Products that fall into the subcategory of accessory equipment are less expensive
and have shorter lives than installations. Examples include hand tools,
computers, desk calculators, and forklifts.
 While some types of accessory equipment, such as hand tools, are involved
directly in the production process, most are only indirectly involved.
 The relatively low unit value of accessory equipment, combined with a market
made up of buyers from several different types of businesses, dictates a broad
marketing strategy.
 Sellers rely heavily on advertisements in trade publications and mailings to
purchasing agents and other business buyers. When personal selling is needed, it
is usually done by intermediaries, such as wholesalers

12.  Raw materials are products that are purchased in their raw state for the purpose
of processing them into consumer or business products.
 Examples are iron ore, crude oil, diamonds, copper, timber, wheat, and leather.
 Some (e.g., wheat) may be converted directly into another consumer product
(cereal).
 Others (e.g., timber) may be converted into an intermediate product (lumber) to be
resold for use in another industry (construction)
 Most raw materials are graded according to quality so that there is some
assurance of consistency within each grade.

13.  Component parts are items that are purchased to be placed in the final product
without further processing.
 Processed materials, on the other hand, require additional processing before being
placed in the end product.
 Many industries, including the auto industry, rely heavily on component parts.
Automakers use such component parts as batteries, sunroofs, windshields, and
spark plugs. They also use several processed materials, including steel and
upholstery fabric
 Buyers of component parts and processed materials have well-defined
specifications for their needs.

14.  Maintenance, repair, and operating (MRO) supplies are frequently purchased
expense items.
 They contribute indirectly to the production of the end product or to the
operations of the business.
 MRO supplies include computer paper, light bulbs, lubrication oil, cleaning
supplies, and office supplies.
 Buyers of MRO supplies do not spend a great deal of time on their purchasing
decisions unless they are ordering large quantities.

15.  Business services refer to the services purchased by companies to assist in the
operation of the firm.
 They include financial, marketing research, promotional, legal, lawn care, and
janitorial services.
 The decision to hire an outside business to perform needed services is often
predicated on how frequently the service is needed, the specialized knowledge
required, and the relative costs of providing the service internally versus
contracting with an outside firm

16.  It is not always clear whether a product is a consumer product or a business
product.
 The key to differentiating them is to identify the use the buyer intends to make of
the product.
 Products that are in their final form and are ready to be purchased and consumed
by individuals or households for their personal satisfaction are classified as
consumer products.
 On the other hand, if they are bought by a business for its own use, they are
considered business products.