Classification of Product
Classifying Products into meaningful categories helps marketers decide which strategies and methods will help promote a business’s product or service. Many types of classification exist. For example, marketers might categorize products by how often they are used. One-time-use products, such as vacation packages, require completely different marketing strategies than products customers use repeatedly, such as bicycles. Product classification helps a business design and execute an effective marketing plan.
Convenience products involve items that don’t require much customer effort or forethought. Food staples often fall into this category, because customers can buy them nearly everywhere and at roughly the same prices. Marketing convenience products can be a challenge if there are many similar products competing for the customer’s attention and driving down the price.
Following are the main features of Convenience products:
(i) These products are easily available and require minimum time and effort.
(ii) They are available at low prices.
(iii) These are essential goods; so their demand is regular and continuous.
(iv) They have standardized price.
(v) The supply of these goods is more than the demand; therefore competition for these products is very high.
(vi) Sales promotion schemes such as discount, free offer, rebate etc. help in marketing of these products.
Customers are willing to invest time and effort to buy shopping products. For example, a customer might compare ingredients, prices and safety information for a variety of deodorants before making a final purchase. Often, the most effective marketing approach is to use advertising and heavy promotions to develop brand preference and loyalty among customers, according to the book “Principles of Marketing,” by Ashok Jain
Following are the main features of shopping products:
(i) They are durable in nature
(ii) These goods have high unit price as well as profit margin.
(iii) Before making final purchase, consumer compares the products of different companies.
(iv) Purchases of these products are pre planned.
(v) An important role is played by the retailer in the sale of shopping products.
Specialty products require significant thought or effort. For example, a well-known luxury car model might be available at just a few local dealerships, meaning an interested customer has restricted options. Specialty products tend to be expensive, durable goods, often involving authorized dealerships and personal selling.
Following are the main features of specialty products:
(i) The demand for such products is relatively infrequent.
(ii) These products are very costly.
(iii) These are available for sale only at few places.
(iv) An aggressive promotion is essential for the sale of such products.
(v) Many of the specialty product require after sales service too.
Unsought products are items customers aren’t aware of or don’t often think about. New products that have no brand recognition fall under this classification, as do certain types of insurance. The marketing problems presented by an unsought product are as follows. First, you must convince customers they need the product or service. Second, you must convince customers to buy the product or service from you and not your competitor.
Following are some examples of unsought products
- Those innovative and new products you don’t know
- Life Insurance Policy
- Prepaid funeral Services
- Accidental and health insurance
- Smoke detectors
- Survival gears