PDCT

Product Classifications
Traditionally classified products on the basis of

characteristics such as:
• Durability
• Tangibility
• Use
• Services
Cont’d….
Durability: durable and non-durable
• None durable
Example: salt, beer, soap, gillet
Marketing strategy:
– make them available in many locations,
– charge only a small mark-up, and
– advertise heavily to induce trial and build
preference.
Cont’d…
Durable goods: survive many uses
Examples: refrigerators, machine tools, and
clothing
Marketing strategy:
• require more personal selling and service,
• command a higher margin, and
• require more seller guarantees.
Cont’d…
Tangibility: tangible and intangible
Cont’d…
Services :
• intangible,
• inseparable,
• variable, and
• perishable products
Cont’d…
Use
1. Consumer, and
2. Industrial use
Consumer
• Are Classified on the basis of shopping habits.
a) convenience,
b) shopping,
c) specialty, and
d) unsought goods.
Cont’d…
Convenience goods :
• Are those the customer usually purchases
frequently, immediately, and with a
minimum of effort
• Examples include
– tobacco products,
– soaps, and
– newspapers
Further classification of convenience
goods:
• Staples convenience goods
goods are consumed by most people every day or on a regular basis.
Examples: milk, bread and potatoes

• Impulse convenience goods
purchased without any planning or search effort
Examples: Candy bars and magazines

• Emergency convenience goods
purchased when a need is urgent

Shopping goods:
• Are types of goods that require efforts to
compare in the process of selection and
purchase based on the characteristics such as
suitability,
quality,
price, and
style.
Examples include furniture, clothing, used
cars, and major appliances.
Further classification of shopping
goods
• Homogeneous shopping goods
similar in quality but different enough in price
to justify shopping comparisons.
Heterogeneous
• Heterogeneous shopping goods
shopping goods differ in product features and
services that may be more important than
price
Specialty goods:
• Have unique characteristics or brand
identification for which a sufficient number of
buyers are willing to make a special
purchasing effort
• The market for such goods is small but prices
and profits are high
• Consumers of specialty goods pay for prestige
as well as the product itself.
Unsought goods
• consumer does not know about or does not
normally think of buying
Examples:
insurance, cemetery plots, gravestones, and
encyclopedias, casket or coffin
Industrial goods
• Industrial goods can be classified in terms of
how they enter the production process and
their relative costliness.
– materials and parts,
– capital items, and
– supplies and business services.
Materials and parts
• Materials and parts are goods that enter the
manufacturer’s product completely.
a) Raw materials and
b) Manufactured materials and parts
• Raw materials: falls in to two classes
i. Farm products
(e.g. wheat, cotton, livestock, fruits, and vegetables) and
ii. Natural products
(e.g., fish, crude petroleum, iron ore),
• Manufactured materials and
parts:
a. component materials
(iron, yarn, cement, wires) and
b. component parts
(small motors, tires, castings)
Marketing strategy: branding and advertizing
are less important B/c they are sold directly to the
manufacturer
Capital items
• Long-lasting goods that facilitate developing or
managing the finished product
a. Installations and
b. Equipment
• Installations consist of buildings (factories,
offices) and
• Equipment: (generators, drill presses,
mainframe computers, elevators).
Marketing strategy: personal selling is the
appropriate strategy
• Equipment comprises
a. portable factory equipment and
b. tools (hand tools, lift trucks) and
• Office equipment (personal computers,
desks).
These types of equipment do not become part of
a finished product
Marketing strategy: sales force is more
preferable than advertising
Supplies
• Are short-lasting goods and services that facilitate
developing or managing the finished product.
a. Maintenance and Repair items (paint,
nails, brooms), and
b. Operating supplies (lubricants, coal, writing
paper, pencils)
Marketing strategy : Similar to convenience
goods supplies better to be promoted via
advertizing
Business services
a) Maintenance and repair services
(window cleaning, copier repair) and
b) Business advisory services
(legal, management consulting, and
advertising).

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Product Classifications

Traditionally classified products on the basis of

• Staples convenience goods

goods are consumed by most people every day or on a regular basis.

Examples: milk, bread and potatoes

purchased without any planning or search effort

Examples: Candy bars and magazines

purchased when a need is urgent

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