There are three fundamental types of product classification which are durable and non durable products and pure services. Durable products are those products, which are used for longer period of time, such as Freezer, Car, Mobile Phones, Shoes, and TV, etc. No durable products are those products, which we need to use quickly as these products expired after some specific period of time. Such as all the vegetables, fruits, and juices, etc.
Pure services include those benefits that are intangible or inseparable in nature and are offered for sale to customers. Ownership of nothing is transferred because these products are experiential in nature. Accountant, Doctors, Lawyer, and Teaching, etc are the best examples that indicates the term pure services.
These all products are purchased by either industrial buyer or final consumer. The consumer products are purchased by final consumers for personal consumption. The industrial products are purchased by the organizations for their usage in the processing operations & administration. Moreover the industrial products are used mostly which includes consumables like raw materials or paper clips that can be transformed into finished products.
Product Classification – Types of Products
Product classification that is also known as different types of products. These types of products or product classification are as below in three different forms.
- Consumer Products
- Industrial Products
- Persons, Organizations, Ideas & Places
Each one is discussed in detail below.
- Consumer Products
Those products that are purchased by final consumers for personal consumption are called consumer products. The way of purchasing these products provides the basis for the marketer to further classify these products. The following is an important classification of these consumer products on the basis of the manner of purchase & manner of marketing.
- Convenience Products
Those consumer products that are purchased immediately & frequently with little efforts and comparison are called convenience products. Examples of convenience products include the following.
- Fast Food etc.
The convenience products are placed at the front locations of the stores in abundance quantity so that they are easily available to the customers. The price of these products is kept lower.
- Shopping Products:
This type of product is purchased less frequently & careful comparison is made by the customer on the price, quality, sustainability & style. In case of purchase of shopping products, increased time & effort is made by the customers in collection of information & comparison making. Following are some of examples of shopping products.
- Major Appliances
- Used Cars
- Hotel & Motel Services
These products are distributed in fewer outlets by the marketer along with the strong sales support services that assist customers in their comparison making.
- Specialty Products:
Specialty products are those consumer products that have brand identification or unique characteristics and an important group of customers are happy to purchase these products. Following are some of examples of specialty products.
- Specific brand & kinds of cars
- Photographic equipment with high price
- Designer clothes
- The services of legal or medical specialist
The customers of such products can make enough effort with them for reaching relevant dealers. However, they do not compare the specialty products normally.
- Unsought Products:
Those consumer products that are either not known to the customers or they are known, but customers do not usually consider them to purchase. The important innovations are usually included in the category of unsought products because the customers get the awareness through advertisement. Following are the examples of unsought products.
- Life Insurance
- Blood donation to Red Cross
A lot of personal selling, advertising & marketing efforts are required for unsought products.
- Industrial Products:
Those products that are purchased that are buying for further processing or for use in operating a business are called industrial products. So the main difference between industrial and consumer product is based on the purpose of purchase of the product. For example, if a lawn mower product is purchased for use around the house, then this lawn mower is categorized in the consumer product. But if the same lawn mower is purchased for use in landscaping business, then this is categorized as an industrial product. Following are some of the three product classification of industrial products.
- Material & Parts:
Raw materials, natural products & manufactured materials are included in the category of material & parts. Farm products & natural products are included in raw material part like cotton, wheat, vegetables, fruits, fish, crude petroleum, iron etc. Component materials & component parts are included in the manufactured area like yarn, wires, cement, iron, tires, small motors etc. Manufactured material & parts are mostly sold to the industrial users directly. Major marketing factors employed in this category are price & service. The advertising & branding is not so much important. Also the demand of the industrial products is derived demand, which is derived from the consumer demand.
- Capital Items:
Those industrial products that assist the production & operation of customer are called capital items like accessory equipment’s & installations. Building & fixed equipment’s are included in the installations. Office equipment & portable factory equipment are included in the accessory equipment. Accessory equipment’s have much shorter lifetimes & they are only helpful in the process of production.
- Supplies & Services:
Supplies contain repair & maintenance items and operating supplies like nails, paint, lubricants, pencil, paper, coal etc. The supplies are regarded as the industrial convenience products because they are purchased with little effort & time. Business advisory services and repair & maintenance services are included in business services category. These services are given under some contract.
- Persons, Organizations, Ideas & Places:
The marketing entities named persons, organizations, ideas & places are also included in the category of products recently. The organization sells itself by carrying out certain activities like creating, maintaining & changing the behavior & attitude of customers for an organization. Similarly, people also perform certain activities for development, maintenance & change of behavior & attitude towards certain people through person marketing. Similarly the ideas & places are also regarded as products.