Marketing management

1. A. SATHYA
AYYA NADAR JANAKI AMMAL COLLEGE

2. Product:
According to Prof. Kotler, “a product is anything
that might satisfy a want or need.It includes physical
objects, services, persons, places, organizations and
ideas.”

3. Product classification
 There are two classes of products goods, and industrial
goods, and this classification is useful in products
positioning. The table shows the categories of
consumer and industrial

4. PRODUCTS CLASSIFICATION
Durability and
tangibility
Consumer goods Industrial goods
Non-durable goods. Convenience goods. Material and parts.
Durable goods. Shopping goods. Capital items.
Services. Speciality goods. Supplies and business
services.
Unsought goods. 0

5. Durability and tangibility
 Tangible – Touch, See, Taste, and Smell.
Intangible – Can’t see, Can’t smell and can’t taste.
(a) Non- durable goods: non- durable goods are
tangible goods normally consumed in one or a few
uses, for example, salt and biscuits.
(b)Durable goods: for example, colour TV,
Refrigerator, Washing machine and Vacuum cleaners.

6. Consumer goods classification
 Goods which are directly consumed or used by the
buyers without any commercial processing, are known
as consumer goods.
A.Convenience Goods : These are goods that the
customer usually purchases frequently immediately
and with a minimum of efforts, example includes
soaps and newspapers.

8. Characteristics:
1.Consumer goods are purchased frequently.
2.No special skills required to buy such goods.
3. The unit value of the product is less.
4.There are number of brands of such goods
available in the market.
5.The buyers often have particular brand.

9. Convenience Goods
 These are goods that the customer usually
purchases frequently immediately and with a
minimum of efforts, example includes soaps and
newspapers

11. B. Shopping Goods:
 These are goods that customer, in the process of
selection and purchase characteristically compare on
such bases as suitability and quality.
Example: furniture, electrical, appliances etc.

12. Characteristics:
1. These are not purchased frequently like
convenience goods.
2. The buyer dose not have perfect knowledge of
the goods.
3.He shops around to find the best.
4. Brand name may not be an important criterion
in buying.
5. These are semi – durable in nature.

14. Specialty Goods:
 These are goods with unique characteristic or brand
identification for which a sufficient number of buyers
are willing to make a special purchasing effort. For
Example, cars.
 Unsought goods : These are goods the consumer dose
not normally think of buying. The classic example of
known but unsought goods is life insurance.

15. Characteristics:
1. These are very high value of goods.
2.It possess certain special features.
3. Special buying efforts are necessary.
4. It is durable in nature.
5.Trade name and Brand are important
considerations.

17. Industrial goods classification
 The goods purchased for industrial or business use are
known as industrial goods. The industrial goods will
fall under the following categories:
 A. Material and Parts: These are goods that enter the
manufacturer’s product completely. They fall into two
classes namely raw material and manufactured
material part.

19. B. Capital Items:
These are long lasting goods that facilitate
developing or managing the finishet products. They
include two groups: installation and equipment.
C. Supplies and Business Services
These are short – listing goods and services that
facilitate developing or managing the finished
products.

20. Characteristics of industrial goods
1. Heavy investment in goods:
The production of industrial goods calls for heavy
capital investment. Most of the companies involved in
the production of industrial goods raise capital by
issuing shares and debentures.

21. 2.Complex nature of products
Industrial goods always appear to be complex in
view of their technical nature. One has to have
technical knowledge to be able to assess them.
3.Derived demand for industrial goods:
The demand for industrial goods is a derived
demand. For example, the demand for a soft drink
making plant will be determined by the demand for
soft drink.

22. 4.Limited number of Buyers
When compared to consumer and agricultural
goods, the number of buyers of industrial goods is
limited.
5.Inelastic demand
The demand for industrial good is relatively
inelastic, i.e., it is not affected by change in price.

23. 6.Buying is always a group process
 In the case of industrial goods, a group or a team is
generally involved in the purchase. The team may
consist of engineers, financial experts and others.

24. THANK YOU