When we examine the business world, we discover a wide variety of products available in the market.
To better understand this diversity, products are often classified according to different criteria.
In this article, we will explore product classification with a primary focus on durability, tangibility, and usage.
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Table of Contents
Classification of products according to durability and tangibility
Products can be categorized into three groups based on their sustainability and tangibility: non-sustainable products, durable products and services.
Consumables : These are tangible goods that are consumed over a short period of time, either in a single use or a few uses. For example, all common consumer products such as tea, toothpaste, biscuits, gasoline, etc. These goods are consumed quickly and are therefore purchased frequently by customers.
Durable products : These are products that have a long lifespan, such as cars, refrigerators, furniture, etc. Durable goods are tangible. They are consumed over a relatively longer period, usually two to three years or more.
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Services : Services are intangible and perishable. The services can constitute an independent product, for example a medical consultation, a haircut, private lessons, etc.
Classification of products according to their use
Products can be classified into the following categories:
Industrial products : Products used for further production of goods and services are called industrial products, and they also include raw materials, spare parts, petroleum products, machinery, etc.
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Consumer products : Goods intended for final consumption by the consumer are called consumer products. They can be classified into the following categories:
• Convenience goods : Items purchased frequently by consumers and readily available in the market are called convenience goods. Daily use items such as soap, cereal, toothpaste, toothbrush, etc. fall into this category.
• Shopping goods : Goods purchased by consumers after comparing price, quality, etc. are called storage goods. Examples: clothing, furniture, appliances, etc.
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• Specialized Goods : Goods that are extraordinary in nature and for which the consumer has to put in extra effort are called specialized goods. These products are usually unique and require extensive research before purchasing.
Importance of product classification
Product classification is essential for businesses as it helps to better understand the market, consumer needs and buying trends. It also helps companies develop marketing strategies tailored to each product category, which can improve their competitive position.
How Companies Use Product Classification
Companies use product classification to tailor their marketing efforts based on the specific characteristics of each category.
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For example, non-durable products require quick and efficient distribution, while durable products can benefit from a marketing approach that focuses on sustainability and quality.
Impact of classification on marketing strategies
Product classification directly influences companies’ marketing strategies . By understanding the different shopping needs and behaviors associated with each product category, businesses can design more targeted advertising campaigns, promotions and special offers.
Factors Influencing Consumers’ Buying Decision
Several factors influence consumers’ buying decision , such as price, quality, availability, brand , customer reviews and current trends. By analyzing these factors, companies can better understand what motivates consumers to buy their products.
Conclusion
Product classification plays a vital role in the business world. It allows companies to better understand the market, develop effective marketing strategies and meet the specific needs of consumers. By using a strategic approach to classifying and marketing their products, companies can strengthen their presence in the market and stimulate their growth.
FAQs
Q: What are the different types of consumables?
A: Consumables are tangible goods that are consumed quickly, either in a single use or just a few uses. These products are intended for rapid and frequent consumption.
Q: What is consumer product classification?
A: Consumer product classification refers to the categorization of goods intended for final consumption by consumers. These products are generally classified according to their use and frequency of purchase.
Q: How do companies use product classification for their marketing?
A: Companies use product classification to tailor their marketing efforts based on the specific characteristics of each category. This allows them to design more targeted advertising campaigns and promotions.
Q: What are the most important factors that influence consumers’ purchasing decision?
A: The most important factors that influence consumers’ buying decision are price, quality, availability, brand and customer reviews.
Q: Why is product classification important in business?
A: Product classification is important because it allows businesses to better understand the market, develop effective marketing strategies, and meet specific consumer needs.