Products have tangible and intangible characteristics that define them to companies, markets, and consumers. Marketers classify products based on their durability and tangibility as nondurable goods, durable goods, or services. Marketers also classify consumer goods as convenience goods, shopping goods, specialty goods, or unsought goods based on how often they are purchased and the level of consumer effort in the purchase decision. Industrial goods are classified as raw materials, manufactured materials and parts, capital items, or supplies and business services.

1. WHATARETHECHARACTERISTICS
OFPRODUCTS,ANDHOWDO
MARKETERSCLASSIFYPRODUCTS?

2. PRODUCT
CHARACTERISTICS
AND
CLASSIFICATION

3. Features that identify the product to the
company, the market and the consumer.
Each product is a complex of tangible and
intangible characteristics which define
the product, its use and value.
ProductCharacteristics

5. DURABILITY AND TANGIBILITY
1. NONDURABLE GOODS
2. DURABLE GOODS
3. SERVICES

6. CONSUMER GOODS CLASSIFICATION
• CONVENIENCE GOODS
• SHOPPING GOODS
• SPECIALITY GOODS
• UNSOUGHT GOODS

7. CONVENIENCEGOODS
UNSOUGHTGOODS

8. SPECIALITYGOODS
SHOPPINGGOODS

9. INDUSTRIAL GOODS CLASSIFICATION
•MATERIALS AND PARTS
1. raw materials
2. manufactured materials and parts
•CAPITAL ITEMS
1. installations
2. equipment
•SUPPLIES AND BUSINESS SERVICES
1. maintenance and repair items
2. operating supplies

10. Raw Materials

11. Manufactured
Materials And
Parts

12. Capital Items

13. Supplies And
Business
Services

14. These slides were created by Ashish Soni, IIT
Delhi during a Marketing internship by Prof.
Sameer Mathur, IIM Lucknow (See
www.IIMInternship.com)