classification of industrial products in marketing


Impulse goods require massive advertising in the largest media and it is the responsibility of the producer. Here the products are classified depending upon the shopping habits adopted by the consumer in buying the product. Services They are acts provided by one party to another that are essentially intangible in nature and are usually manufactured and consumed simultaneously. Product flanking refers to the introduction of different combinations of products at different prices to cover as many market segments as possible. (e) Geographically Concentrated i.e., similar production units are located in a particular area. There are many goods, such as typewriters and stationery can be classified as both industrial and consumer goods. Typical shopping goods are furniture, car, appliances, shoes, etc. Product has many tangible as well as intangible attributes. (c) They are often bought by habit, without much deliberation. Much of the advertising of specialty goods is done by retailers, frequently with the cooperation of the producer. Perishability of services is obvious. Such items are paints, soaps, detergents, etc. There are exceptions to this rule. Many manufacturers purchase rather than construct some of the component parts of their product. Industrial Products are purchased by business firms for further processing or for use in conducting a business .The distinction between consumer product and industrial is based on the purpose for which the product is bought. These products have brand loyalty of highest order. Example Medical services, Transportation Services etc. They are difficult to display, demonstrate or illustrate. (b) Technical Considerations in their purchase include advice from experts like engineers, production managers cost accountants. It has introduced a wide variety of biscuits in the past few years. (c) Supplies and services Industrial product that does not enter finished product at all. Strategic Planning in the Industrial Market, Need for Advertising Agencies in Industrial Marketing, Industrial Distribution Channel Management, Product Life Cycle and Industrial Pricing, Business Ethics Case Study: Caterpillar Tax Fraud Scandal, Case Study: Corporate Merger Between Volkswagen and Porsche. The decision process is complicated by the existence of brands, which force the consumer to make comparison and choices. (iv) Business Services Business Services include maintenance and repair services (window cleaning, copier repair) and business advisory services (legal, management consulting, advertising). They are classified into Component Material and Component Parts. Products can also be classified based on types of consumers that use them. Major equipment is of two types: Since the net price of major equipment is sometimes very high, its purchase may involve financial problem for the buyer. While buying such products or services, consumer spends much time and effort in gathering information about the product and purchases the product after a careful consideration of price, quality, features, style and suitability. These are the products which are less known and consumer is likely to not think of buying them. Examples- Furniture, Electrical Appliances, etc. Thus purpose for which the product is bought makes it consumer or industrial. Durable products normally require more personal selling and service, command a higher margin and require more seller guarantees. The market for such goods is small but prices and profits are high. These are products normally not purchased except when a certain problem arises to be solved e.g., emergency automobile repair, polio vaccine, cancer treatment. iv. (v) Supplies e.g., fuel, coal, cleaning materials, lubricating oil, electric power etc., nuts, bolts. (b) Capital items Industrial products that partly enter the finished product, including installation and accessory equipment. Services are intangible, inseparable, variable and perishable products. Content Filtration 6. For example postal service, hair cutting, tailoring, transportation etc. Natural products like iron ore, crude oil, fish are limited in nature having low unit value but high transport cost. Convenience Products are usually low priced, easily available products that customer buys frequently, without any planning or search effort and with minimum comparison and buying effort. These are purchased in routine manner and involve lesser negotiation. Window displays are made to draw consumers attention. (g) Leasing instead of Buying (this is a growing trend). Mostly these products have very good brand identification. Generally, outside service companies are used when the cost of self-servicing is higher than the cost of buying the service. (a) Materials and Parts- These are goods that enter the manufacturers product completely. Shopping Goods 3. Required fields are marked *. b. Heterogeneous In these types of goods, product features vary and they are compared while buying. Customers will not go out of their way to purchase convenience goods; frequently the purchase is not planned. (iv) Installations e.g., overhead cranes, Buildings, Machines. The cookie is used to store the user consent for the cookies in the category "Performance". Industrial goods may be divided into the following categories: Raw materials used in the production of other goods are called industrial goods. With the help of new products a company can enter an expanding market for the first time and supplement its existing product lines. Consumer products are the products purchased for ultimate consumption by the consumers for satisfying their needs. Examples- Cars. The demand for industrial products is concentrated at certain fixed geographical locations. This cookie is set by GDPR Cookie Consent plugin. A small family may use three to four cakes of soaps in a month. Analytical cookies are used to understand how visitors interact with the website. (5) No enquiries about quality, price as customers know about them due to regular purchase. For example, Tata may buy tyres and tubes from Ceat which may in turn purchase Tatas trucks. Once a consumer gets used to a particular brand of cigarettes, he does accept any other brand. For example raw material, machinery, tools, lubricants etc. They are relatively low priced and usually bought in small quantities. Convenience in purchase is the main criterion in purchasing it, for example easy and quick availability, nearness of shop etc. They have a shorter life than installations but a longer life than operating supplies. Examples include soaps and newspapers. Maintenance and Repair items and Operating Supplies. The decision to make an impulse purchase is made on the spot. Shopping goods are durable in nature. Marketing, Products, Classification of Products. It is an inexpensive product and is available almost everywhere. Manufactured materials are again classified as component materials (cement, wires) and component parts (small motors, tires etc.). These are the products that require considerable time and effort. Manufactured Materials are materials that are manufactured in the manufacturing unit using some raw material. Speciality Goods 4. Advertising is required to build awareness about an FMCG which is available in the market but not many people might know about it. Marketers have traditionally classified products on the basis of three characteristics- durability, tangibility and use. teltonika Middlemen are rarely used for the purchase of installations and the channel of distribution is short, running from the producer directly to the industrial user. Minor equipment items are standardized and suited to the performance of a function involved in more than one operation of a business. Such products are made available to the customers through widespread distribution channels-through every retail outlets. Not known to consumers or known but not sought. This refers to time and efforts buyers are willing to spend on buying the product. The price of such product varies. Content Guidelines 2. Terms of Service 7. When consumers search extensively for a product and are extremely reluctant to accept substitutes for it, it is a Specialty Good. The vast array of consumer goods can be classified on the basis of shopping habits and variables like time, effort and risk. On the basis of Consumer Shopping Habits: 3. These goods are more costly and involve more risk than convenience goods, thereby causing buyers and users to invest more time and effort when making the selection. Substitutions will not be made because of a brand name or a characteristic that the customer insists upon. In other words, they know what special type of products they want. FMCGs are usually low-priced products. (c) Services- Services rate intangible, inseparable, variable and perishable products. Shopping goods are goods bought only after comparing quality, price, suitability and style in several stores and putting some effort in the process and not buying in haste. They are classified based on how customers go about buying them. Here the purchasers involvement in the purchase process is higher and this will take more of his time and money. The goods consumers buy can be classified on the basis of shopping habits. A producer promoting his convenience goods is promoting his emergency goods at the same time, since they are the identical goods sold under different conditions. For successful marketing, convenience goods must be placed in as many outlets as possible. Example Chocolates, Ice creams, Shirts etc. Goods or products are classified as either consumer goods or industrial goods. Supplies are materials used in the operation of a business that do not become a part of the finished product. They are major purchases. d. Unsought Goods- These goods are those the consumer does not know about or does not normally think of buying like life insurance. For example chocolates, magazines etc. These are further classified into Installations and Equipments. Example Mercedes Car, Nakshatra Diamonds. There are various motives for doing this. For purchasing staple goods, consumers do not spend too much time. Examples of unsought product are cemetery plots, blood donation to Red Cross, umbilical cord stem cell banking services. This cookie is set by GDPR Cookie Consent plugin. Before making final purchase, a consumer compares the quality, price, style etc. How A Personal Loan Helps Save You Money? (iii) Emergency goods- Consumer purchases on urgent need. Some authors consider impulse goods to be a specific type of convenience goods. Readymade Garments, shoes, sarees, major appliances. Examples are Furniture, clothing. Consumers of specialty goods pay for prestige as well as the product itself. The cookie is used to store the user consent for the cookies in the category "Analytics". Unlike convenience goods, shopping goods are planned and there is no rush to get the product. iii. In the FMCG market, the life of a product is short. This website uses cookies to improve your experience while you navigate through the website. There is a big market for industrial services. (ii) Semi-finished-goods, supplied by one industrial unit to another; these goods are further processed by receiving unit. They include tools, machines, computer etc. Business services include maintenance and repair services (window, doors repair) and business advisory services (legal, advertising). (c) Direct Selling (by manufacturers, and sometimes, according to buyers specifications). Examples are cold drinks, eatables, drinks, textiles, toothpaste, shoes, pens, fans etc. Fabricating Materials and Parts 3. Machinery and equipment of an industrial producer are depreciated by long use and new ones are to be installed. The more expensive is the accessory product, the shorter is the channel of distribution. Manufacturers of emergency goods will place them in many outlets to capture the sale. Consumer preferences for the FMCG products are not rigid. They are purchased on sight without forethought, e.g., magazines, gift items, etc. The growing complexity of business has reached a point where even the largest manufacturers are unable to fulfil all their needs internally. Shoppers generally do not know all the characteristics of the goods they buy and part of the shopping effort is spent for learning about the product. (ii) Component parts and materials e.g., tyres and batteries for cars. Hence such products require heavy support and advertising. Emergency goods purchased when a need is urgent umbrella for rainy season. Materials and parts are further classified into raw materials and manufactured materials. Services cannot be stored for later use. Goods or products are classified as either consumer goods or industrial goods. On the basis of durability and tangibility of the product. (3) Small unit of purchase and low price.

(iv) An aggressive promotion is essential for the sale of such products. help in marketing of these products. Characteristics of convenience goods are: (a) They are non-durable they are frequently required. Learn how your comment data is processed. This is because the higher-priced articles have a smaller market and their sales are large enough to make it worthwhile for a producer to send a salesman to a prospective customer. These include goods like paints, lubricants, computer stationary etc. Typical examples are cigarettes, grocery products, drugs, newspapers, etc. The notion of brand loyalty is not prevalent in a large section of the market. These cookies will be stored in your browser only with your consent.

Following are the main features of Industrial products: Industrial Products have limited number of buyers as compared to consumer goods. 2. Lubricating oil, coal, stationery are examples of supplies. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. A company can add new products through the acquisitions of other companies or by devoting ones own efforts on new product development. But specialty goods possess such unique characteristics and brand identification that the consumers would make any effort to have that particular product. Classifications of Products in Marketing: Consumer and Industrial Products! Speciality goods do not involve making comparisons, buyers invest time to get to specific dealers handing such products special branded products such as designer suits. Unsought product is consumer products that the consumer either does not know about or knows about but does not normally think of buying. With this view in mind, it is appropriate to consider products in identifiable groups. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Marketing strategy should reduce the cost of transportation. So basically Product is anything that is offered to market to satisfy a need or want. Thus a phone, refrigerator, a vehicle, an under construction building, a catering service at an event or a sports event like IPL, can be termed as a Product. (vi) Managerial Materials used in management/administration of an enterprise, e.g., Stationery, Accounting Machines, and Data Processing Machines. Convenience Goods 2. These goods are of very high unit value and infrequently purchased. Customer does not have much time to bother about price/quality of a product. Shopping products are high priced (compared to the convenience product), less frequently purchased consumer products and services. For example, transport agencies instead of purchasing public carriers on outright basis, take them on hire basis. Impulse convenience Goods As the name implies there is no preplanning involved with the purchase of impulse convenience goods. (b) Shopping goods These are the goods that the customer in the process of selection and purchase characteristically compares on such bases as suitability, quality, price and style. Consumers select such goods only after analysis and evaluation of merits and demerits of all substitutes of product and comparing the brands as well as stores. This cookie is set by GDPR Cookie Consent plugin. In other words, their minds are open for the choice. The buyers do not compare speciality products. Products are classified as Non-durable Goods, Durable goods and services on the basis of durability and tangibility. (iii) Fabricating Goods used by receiving unit without processing e.g., speaker/cabinet of TV, Tyre and Tube of Cycle, Tyre, Tube, Light, Horn, Plug of Scooter. Examples are raw-materials, engines, lubricants machines, tools etc. Brand identification is unimportant to industrial users, who are more concerned with low prices and certainty of supply. Wholesalers, by carrying the lines of many manufacturers, are able to have their salesman call on many users and sell large quantities of the goods of various producers to make the call profitable. Examples include cars, stereo, cameras etc. Durability and Tangibility Classification, On the Basis of Durability, Tangibility and Types of Consumers, Classification of Products Durability and Tangibility, Consumer-Goods Classification and Industrial Goods Classification, Classification of Products: On the basis of Durability and Tangibility, On the basis of Consumer Shopping Habits and a Few Others, Classification of Products 2 Major Classification: Consumer Products and Industrial Products, Classification of Products On the Basis of Durability, Tangibility and Types of Consumers. Classic examples are luxury cars or Apple products. Some of the types of consumer goods are:- 1. Speciality Products refer to those products which have certain special features due to which the buyers are willing to spend a lot of time and effort on the purchase of such products. These products are used for non personal & business purposes. Purchased on some urgent and compelling need; e.g., handkerchief by a traveler, umbrella due to sudden rains, pain reliever for headache etc. These are goods purchased frequently, immediately and with least time and efforts. Products like cigarettes, though an FMCG product, are found to command a high level of brand loyalty. These products aid the consumers in their own production or operations. Furniture, famous brand clothing are examples of heterogeneous goods. Essays, Research Papers and Articles on Business Management, Channels of Distribution: Definition and Characteristics | Products | Marketing, Channels of Distribution | India | Products | Marketing Management, Test Marketing: Considerations, Purpose and Procedures | Products | Marketing, Advantages and Limitations of Advertising. Producers and marketers have traditionally classified products on the basis of characteristics such as durability, tangibility and use. The product remains unsought until the consumer becomes aware of them through advertising. These products have some unique capability and the buyer is ready to take some extra efforts to buy these products. (iii) Before making final purchase, consumer compares the products of different companies. These generally hold a snob appeal for the buyer. They are further classified as materials that are natural and extracted from the nature and farm products that are grown in the farm. Each product has its own durability, that is how long a product can be used or how many times a product can be used. Consumers generally are not aware of these products or their importance till they realize it. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Consumers have no pre-thinking about their purchase nor do they indulge in any serious deliberation to purchase them. (a) They are relatively durable and long-lasting. A company may purchase some raw material from another company and also may sell its finished good to the same company. As regard to place, this insistence brings about a willingness to travel a considerable distance to make the purchase. For this reason, they cannot be marketed by normal promotion but need special and imaginative programmes. Durable products are the products with longer consumption period and uses. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. These are classified into Operating Supplies and Maintenance and repairs.

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