Product Classification: Faculty in Marketing DIT School of Business Greater Noida

PRODUCT
CLASSIFICATION
Faculty in marketing
DIT school of Business
Greater noida
Product classification
1. On the basis of durability

2. Consumer Product classification
3. Business Product classification
1. On the basis of durability
A. Non durable: non durable goods are tangible

goods normally consumed in one or few uses.
i. They are purchased frequently consumed very
often.
ii. Smooth distribution and intensive availability
at all possible places makes these products
succeed in the market.
iii. The marketer charges a small mark up and
advertises heavily to build brand preference.
B. Durable goods: durable goods are tangible
goods that can be normally be used for many
years.
These products need more personal
selling, after sales service, they offer higher
margin and are often backed up by guarantee
and warranty programs.
C. Services: services are intangible, inseparable,

perishable products.
Services need a good amount of quality
control, credibility of the supplier and
adaptability to variable consumption behavior.
2. Consumer Product
A product bought to satisfy personal and

family needs. There are three categories of
consumer products.
These groupings are based primarily on
characteristics of buyer’s purchasing behavior
PRODUCT
CLASSIFICATION- Consumer
Products
A. Convenience Products
B. Shopping Products
C. Specialty Products
D. Unsought Goods
A. Convenience Products
Convenience Products Is a relatively

inexpensive, frequently purchased item
for which buyers want to exert only
minimal effort. The buyer spends little
time in planning the purchase of a
convenience item or in comparing
available brands or sellers.
Ex:- Bread, Chewing Gum, Soft Drinks
B. Shopping Products
It is an item for which buyers are willing to
spend considerable effort on planning and
making the purchase.
Buyers allocate ample time for comparing stores
and brands with respect to prices, product features,
qualities, services, and warranties.
These products are expected to last for a fairly
long time and thus are purchased less
frequently than convenience items.
Ex:- Appliances, Furniture, Bicycles, Cellular Phones.
C. Specialty Products
It possesses one or more unique qualities for
which a buyer is willing to spend considerable
purchasing effort.
Buyers actually know what they want and
will not accept a substitute.
In searching for specialty products,
purchasers do not compare alternatives.
Ex:-Unique Sports Cars, Rare imported wine,
Specific type of antique bone china set,
Special handcrafted furniture
D. Unsought goods
These are goods the consumer does not

know about or does not normally think of
buying.
These goods need advertising and
more of personal selling for making a
sale.
3. Industrial Product
A product bought for resale, for making

other products, or for use in a firm’s
operation.
Business Products can be classified into:
A. Raw Materials
B. Capital items
C. Supplies and business services
A. Raw Material and parts
These are goods that enter the manufacturer’s
product completely.
They are two types namely: material and parts
1. Raw materials can be of
a. farm products: are renewable as they involves
agricultural production
b. Natural products: the natural products are very
often limited and often available in great bulk
and low unit value
2. Manufactured materials can be classified as
a. components material – iron, steel, zinc
b. components parts- motors, integrated circuits
B. Capital items
These are long lasting goods that facilitate
developing or managing the finished product.
They include two groups:
1. Installations are the major purchases for the
organization.
e.g., buildings, offices, shop floors
2. Equipment: these equipment are not permanent
and they need to be changed at different
period of time.
e.g., earthmovers, trucks,, office equipment
like personal computers
C. Supplies and business services
These are the short term goods and services that
facilitate managing or developing the finished
product supplies.
They can be of two types:
1. Supplies- a. maintenance supplies
b. operating supplies
2. Business services-
a. maintenance services
e.g., writing papers etc
b. Business advisory services
e.g., consultancy, advertising, etc.

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PRODUCT

1. On the basis of durability

A. Non durable: non durable goods are tangible

C. Services: services are intangible, inseparable,

A product bought to satisfy personal and

Convenience Products Is a relatively

These are goods the consumer does not

A product bought for resale, for making

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