classification of product in easy way

1. Presented by
Amaresh Tyagi
Assistant Professor
Sobhasaria Group of Institutions

2. PRODUCT
“A product is anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a need or a want.”
According to Philip Kotler
Product levels/Dimensions of Product-

3. Product classification
Product may be of two types –
1- Consumer products
2- Industrial products
1- Consumer products –
These products are meant for use or consumption by the ultimate consumers.
e.g. Butter ,T.V., Cosmetics products etc.
 Convenience Goods-
The consumer usually purchases these goods frequently , immediately and
with a minimum of efforts.
Ex. – Soft drink , Soaps

4. These can be further divided –
o Staples - These are the goods consumer purchases on a regular basis.
Ex. – Toothpaste. Soap
o Impulse Goods – These are purchased without any planning or search effort.
Ex. - Potato Chips, Chocolates
o Emergency Goods – These are purchased when a need is urgent.
Ex. – Umbrella , rain Coats
• Shopping Goods - These are the goods that the consumer characteristically
compares on such bases as suitability, quality, price, and style.
Ex. – Furniture , Clothing etc.

5. These goods may be of two types-
o Homogeneous Shopping Goods
o Heterogeneous Shopping Goods
• Specialty Goods – These have unique characteristics or brand
identification for which sufficient number of buyers are willing to make a
special purchasing efforts.
Ex. – Mercedes car , Photographic equipment etc.
• Unsought goods - These are the goods that consumer does know about or
does not normally think of buying such goods. These goods require
advertising and personal selling support.
Ex. - Smoke Detectors

6. Type of Consumer Products
Marketing
Consideration
s
Convenience Shopping Specialty Unsought
Customer
buying
behavior
Frequent
purchase; little
planning, little
comparison or
shopping
effort; low
customer
involvement
Less frequent
purchase;
much planning
and
shopping
effort;
comparison of
brands
on price,
quality, and
style
Strong brand
preference
and loyalty;
special
purchase
effort; little
comparison of
brands;
low price
sensitivity
Little product
awareness;
knowledge
(or, if aware,
little or
even negative
interest)
Price Low price Higher price High price Varies
Distribution Intensive Selective Exclusive Varies

7. Contd.
Marketing
Consideratio
ns
Convenience Shopping Specialty Unsought
Promotion Mass
promotion by
the
Producer
Advertising
and
personal
selling by
both
the producer
and
resellers
More
carefully
targeted
promotion by
both the
producer and
resellers
Aggressive
advertising
and personal
selling by
the producer
and
resellers
Examples Toothpaste,
magazines,
and laundry
detergent etc.
Major
appliances,
televisions,
furniture,
and clothing
Luxury
goods, such
as
Rolex
watches or
fine
crystal
Life insurance
and Red
Cross blood
donations

8. INDUSTRIAL PRODUCTS
Industrial products are those purchased for further processing or for use in
conducting a business.
Industrial products can be classified –
 Materials and Parts,
 Capital Items, and
 Supplies and Services.
 Materials and Parts –
These includes –
o Raw materials
o Manufactured material s and parts
o Raw materials- It consists
 Farm products (wheat, cotton, livestock,fruits, vegetables)
 Natural products (fish, lumber, crude petroleum, iron ore).

9. o Manufactured material s and parts - These consists
 Component materials (iron, yarn, cement)
 Component parts (small motors, tires)
 Capital Items - Capital items are industrial products that aid in the buyer’s
production or operations, including
o Installations and
o Accessory equipment.
Installations consist of major purchases such as buildings (factories, offices)
and fixed equipment (generators, drill presses, large computer systems,
elevators).
Accessory equipment includes portable factory equipment and tools (hand
tools, lift trucks) and office equipment (computers, fax machines, desks).
They have a shorter life than installations and simply aid in the production
process.

10. • Supplies and Services –
Supplies includes
o Operating supplies (lubricants, coal, paper, pencils) and
o Repair and maintenance items (paint, nails, brooms).
Supplies are the convenience products of the industrial field because they are
usually purchased with a minimum of effort or comparison.
Business services include
o Maintenance and repair services (window cleaning, computer repair) and
o Business advisory services (legal, management consulting, advertising).
Such services are usually supplied under contract.