A product is a physical good or intangible service that is offered to consumers in exchange for money or other forms of value. It can be anything that satisfies a consumer's needs or wants, including tangible goods like clothing or electronics, intangible services like consulting or financial planning, or even ideas or experiences like travel or entertainment.
Marketers classify products in different ways based on their characteristics, usage, and consumer preferences. The classification of products helps marketers to understand the product better and create a targeted marketing strategy that appeals to the target audience. The following are some of the common bases of classifying products:
1. Consumer Goods vs. Industrial Goods: Consumer goods are products that are used by individuals for personal use and enjoyment. Examples of consumer goods include clothing, food, electronics, and entertainment. Industrial goods, on the other hand, are products that are used by businesses to produce other goods or services. Examples of industrial goods include machinery, raw materials, and office equipment.
2. Tangible vs. Intangible Products: Tangible products are physical goods that consumers can touch, see, and feel. Examples of tangible products include clothing, cars, and appliances. Intangible products, on the other hand, are services that consumers cannot physically touch, see or feel, but still offer value. Examples of intangible products include consulting, financial planning, and software.
3. Convenience Products vs. Shopping Products vs. Specialty Products: Convenience products are low-involvement products that consumers purchase frequently and without much thought. Examples of convenience products include snacks, soft drinks, and household items. Shopping products are higher-involvement products that consumers purchase less frequently, such as clothing or electronics. Specialty products are unique or rare items that consumers are willing to go out of their way to purchase, such as luxury cars or high-end jewelry.
4. Durability and Tangibility: Durability refers to how long a product lasts, and tangibility refers to whether a product is physical or intangible. Based on these factors, products can be classified as either durable or non-durable, and tangible or intangible. Durable products are those that last a long time, such as cars, furniture, or appliances. Non-durable products are those that are used up quickly, such as food or cleaning supplies.
5. Product Line vs. Product Mix: A product line is a group of related products that a company offers under a single brand. For example, a company that sells personal care products might have a product line that includes shampoo, conditioner, body wash, and lotion. A product mix, on the other hand, is the complete set of products that a company offers. This includes all product lines, as well as any other products or services offered by the company.
6. Generic vs. Branded Products: Generic products are unbranded products that are sold under a common name, such as "store brand" or "generic." Branded products, on the other hand, are products that are sold under a specific brand name, such as Nike or Apple.
Another way to classify products is by the level of consumer involvement they require. Products can be divided into four categories based on consumer involvement:
1. Convenience Products: These products are low-priced and frequently purchased items that require minimal effort from the consumer. Examples of convenience products include groceries, toiletries, and snacks. Consumers do not invest much time or effort in buying these products, and they often purchase them out of habit or convenience.
2. Shopping Products: Shopping products are moderately priced items that require more effort from the consumer in terms of research, comparison, and evaluation before purchase. Consumers are willing to invest time and energy into shopping products because they are more expensive and have a higher perceived risk. Examples of shopping products include clothing, appliances, and electronics.
3. Specialty Products: Specialty products are high-priced items that are unique and difficult to find. Consumers are willing to spend a considerable amount of time and effort to locate and purchase these products because they are perceived to be of high value and quality. Examples of specialty products include luxury cars, high-end jewelry, and custom-made furniture.
4. Unsought Products: Unsought products are items that consumers are not actively looking for or do not know exist. These products require aggressive marketing efforts to generate demand and awareness. Examples of unsought products include life insurance, funeral services, and emergency medical supplies.
In summary, the classification of products by marketers is based on a variety of factors, including their physical attributes, use, and consumer involvement. Understanding these classifications can help businesses develop effective marketing strategies and reach their target customers more effectively.
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