SETTING PRODUCT STRATEGY

What are the characteristics of products, and how do marketers classify products? 

IS PRODUCT ALWAYS TANGIBLE?

Not necessarily, Product is anything that can be offered to market to satisfy a want or need, including physical goods, services, experience, events, persons, places, properties, information and idea.

FIVE PRODUCT LEVELS

PRODUCT CLASSIFICATION

• Durability and Tangibility• Use

Durability and Tangibility

Non Durable Goods: frequently used, tangible

Durable Goodslast long, tangible

ServicesPerishable, intangible

Use

Consumer Goods/Products

Convenience GoodsShopping GoodsSpecialty GoodsUnsought Goods

Industrial Goods/Products

Raw MaterialFabricating Parts and

MaterialInstallationAccessory

Operating Supplies

CONVENIENCE GOODS

Purchased immediately, frequently. Soaps, Soft drinks etc

SHOPPING GOODS

Compared on the basis of price, quality and style like furniture, clothing etc.

SPECIALITY GOODS

Unique brand image enough for buyer to buy like car

UNSOUGHT GOOD

Consumer doesn’t have knowledge or has little intention to buy like fire extinguishers, smoke detectors etc.

MATERIALS AND PARTS

Goods which enter the manufacturer’s process completely like farm products etc.

INSTALLATIONS:

Brought directly from industries user like heavy machinery etc.

ACCESORY EQUIPMENTS:

Shorter life than installations. Factory and office equipment etc.

OPERATING SUPPLIES

Shorter term goods and services like lubricants etc.

THANK YOU

DISCLAIMER

These slides were created by Deepak Madan, BITS Pilani, during a Marketing internship by Prof. Sameer Mathur, IIM Lucknow (See www.IIMInternship.com )