Product, Concepts and Classification

In marketing, a product is anything that can be offered to a market to satisfy a want or need. It may be a physical object, a service, an idea, a person, a place, or an organization. From a marketing point of view, a product is not limited to its physical form; it also includes features, quality, design, brand name, packaging, warranty, and after-sales service. Proper classification of products is essential because different products require different marketing strategies related to pricing, promotion, and distribution. Products are classified on various bases such as nature of use, buying behavior, durability, and tangibility.

Classification of Products on the Basis of Users

• Consumer Products

Consumer products are goods purchased by individuals for personal or household consumption. These products are not meant for resale or further production. Consumer products are mainly influenced by consumer buying behavior and are further classified into the following categories:

• Convenience Products

Convenience products are items that consumers purchase frequently, immediately, and with minimum effort. These products are usually low-priced, widely available, and bought on impulse. Examples include bread, milk, soap, toothpaste, newspapers, chocolates, and soft drinks. Consumers do not compare prices or quality extensively while purchasing convenience products. Because of frequent purchases, these products require extensive distribution and heavy advertising to ensure easy availability and brand recall. Convenience products are further divided into staple goods, impulse goods, and emergency goods.

• Shopping Products

Shopping products are purchased less frequently than convenience products and require careful comparison of price, quality, design, and brand. Examples include clothes, shoes, furniture, televisions, washing machines, and mobile phones. Consumers spend time and effort in gathering information and comparing alternatives before making a purchase decision. These products are usually priced higher than convenience products and are sold through selective distribution channels. Promotion for shopping products focuses on providing detailed product information and highlighting differences among competing brands.

• Specialty Products

Specialty products are those with unique characteristics or strong brand identification for which consumers are willing to make special purchasing efforts. Examples include luxury cars, designer clothes, premium watches, high-end smartphones, and exclusive perfumes. Consumers show strong brand loyalty and are less sensitive to price. These products are usually sold through exclusive distribution channels. Promotion emphasizes brand image, prestige, and uniqueness rather than price competition.

• Unsought Products

Unsought products are products that consumers do not normally think of buying or are unaware of until a need arises. Examples include life insurance, fire extinguishers, smoke detectors, and funeral services. These products often require aggressive advertising and personal selling to create awareness and stimulate demand. Marketers must educate consumers about the benefits and importance of such products.

Classification of Products on the Basis of Durability and Tangibility

• Durable Products

Durable products are tangible goods that have a long life and can be used repeatedly over a period of time. Examples include refrigerators, televisions, furniture, vehicles, and computers. Because of their long life and higher price, consumers take more time in decision-making. Marketing of durable products requires personal selling, after-sales service, warranties, and strong brand reputation. Promotion focuses on quality, durability, and long-term benefits.

• Non-Durable Products

Non-durable products are tangible goods that are consumed quickly or have a short life. Examples include food items, beverages, soaps, cosmetics, and stationery. These products are purchased frequently and at low prices. Extensive distribution and heavy advertising are essential to ensure availability and repeated purchases. Branding and packaging play a significant role in influencing consumer choice.

• Services

Services are intangible products that provide benefits without resulting in ownership. Examples include banking, insurance, education, healthcare, transport, tourism, and consultancy services. Services are characterized by intangibility, inseparability, variability, and perishability. Marketing of services focuses on service quality, customer experience, trust, and relationship building. Since services cannot be stored, timely delivery and customer satisfaction are crucial.

Classification of Products on the Basis of Use (Industrial Products)

Industrial products are goods purchased by organizations, businesses, or institutions for use in production, operations, or resale. These products are not meant for personal consumption. Industrial products are classified as follows:

• Raw Materials

Raw materials are basic materials used in the production of finished goods. They can be agricultural products such as cotton, wheat, rubber, and sugarcane, or natural products such as minerals, coal, crude oil, and iron ore. Raw materials are usually sold directly to manufacturers in large quantities. Price, availability, and reliability of supply are important factors in marketing raw materials.

• Manufactured Materials and Parts

Manufactured materials and parts include processed materials and component parts used in the production process. Examples include steel, cement, glass, tyres, engines, and electronic components. These products may be standardized or customized. Quality, consistency, and technical specifications are crucial in this category. Long-term relationships between buyers and sellers are common.

• Capital Items

Capital items are long-lasting goods used in production or operations. They include machinery, equipment, tools, factory buildings, and office infrastructure. Capital items involve high investment and are purchased after careful evaluation. Marketing of capital items relies heavily on personal selling, technical support, and after-sales service. Decisions are often based on cost-benefit analysis and long-term productivity.

• Supplies and Business Services

Supplies are short-term goods used in daily business operations, such as stationery, lubricants, cleaning materials, and office supplies. Business services include maintenance, repair services, legal services, advertising services, and consultancy. These products support smooth functioning of business activities. Convenience, reliability, and service quality are important factors in their marketing.

Classification of Products on the Basis of Buying Behavior

Products can also be classified based on how consumers purchase them:

• Routine Purchase Products: Purchased regularly with little thought, such as groceries and toiletries.

• Occasional Purchase Products: Purchased occasionally, such as clothes and household appliances.

• Emergency Purchase Products: Purchased during emergencies, such as medicines and repair services.

Understanding buying behavior helps marketers design suitable marketing strategies and promotional efforts.

Classification of Products on the Basis of Marketability