what are the two categories of products, explain each one. course hero

What are the two broad categories of products?

Product or goods can be classified into two broad categories depending upon the use for which they are meant. 1. Consumers’ goods and 2. Industrial goods Type # 1. Consumers’ Goods: Consumers’ goods are meant for final consumption by the ultimate consumers. Bread, butter, TV sets, cosmetics and garments are all consumer goods.

How do the types of consumer products differ?

Thus, the types of consumer products differ in the way consumers buy them and, for that reason, in the way they should be marketed. Among the four types of consumer products, the convenience product is bought most frequently.

What are the different types of shopping products?

Shopping products. Types of consumer products that fall within the category of shopping products are: furniture, clothing, used cars, airline services etc. As a matter of fact marketers usually distribute these types of consumer products through fewer outlets, but provide deeper sales support in order to help customers in the comparison effort.

What are the three broad categories of industrial goods?

The three broad categories of Industrial goods are as follows Machine and Machine Parts: These goods are used entirely in the manufacturing process. These include raw materials like cotton, lumber, petroleum etc. They also include manufactured products like glass, rubber etc.

What are consumer products?

What is specialty product?

What is the life cycle of a product?

What are business services and supplies?

What is the first P of a marketing mix?

How many stages are there in a product lifecycle?

What are some examples of convenience products?

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What are the two categories of products?

Products are broadly classified into two categories – consumer products and industrial products.

What are the categories of products?

What are the four classifications of products?Convenience goods.Shopping goods.Specialty goods.Unsought goods.

What are the categories of consumer products?

Consumer products are defined as products that satisfy a consumer's wants or needs. There are four types of consumer products, and they are convenience, shopping, specialty, and unsought. Convenience products are low cost, routine, low involvement, wide target market, and easily available.

What are the 3 types of products explain?

Here are the three main types of products used in commerce:Consumer products. A consumer product is a finished product available for sale to a customer. ... Industrial products. Businesses usually purchase an industrial product to make other products or to help them with running their business. ... Service products.

What is product category with example?

A group of products that offer similar benefits can be referred to as product categories. Products from a same product category will have similar physical features and will offer similar benefits. For example, in the luxury cars product category, cars such as the BMW, Mercedes, and Audi compete with each other.

What are examples of categories?

The definition of a category is any sort of division or class. An example of category is food that is made from grains. (logic) Any of the various basic concepts into which all knowledge can be classified.

What are the three categories of consumer products and describe each?

Types of Consumer Goods Bicycles and refrigerators are considered durable goods. Nondurable goods are consumed in less than three years, are commonly used one time and include packaged food and drinks or laundry detergent. Service goods include items like auto repairs and haircuts that are intangible consumer goods.

How products are classified based on use give one example each?

Products are classified as – Non-durable Goods, Durable goods and services on the basis of durability and tangibility. i. Non-Durable Goods – These represent the tangible goods that are consumed in one or few uses. Example – Soap, Salt, coke etc.

Why is product categorization important?

Correctly categorizing products allows your search engine to fetch products quicker. As a result, you create a quicker and more accurate search engine. Since the search engine is often the first element users will interact with on eCommerce sites, a strong search engine is pinnacle to the user experience of your site.

How do you define a product category?

A product category is a group of similar products that share related characteristics. Product category marketing focuses on promoting certain categories to meet consumer expectations. Your distinct offerings and customer personas should guide the organization and grouping of your product categories.

What are the examples of products?

A product is any item or service you sell to serve a customer's need or want. They can be physical or virtual. Physical products include durable goods (such as cars, furniture, and computers) and nondurable goods (such as food and beverages).

What are the two types of product in entrepreneurship?

The two types of products are goods and services. We may use the two interchangeably. But, in business, marketers differentiate between the two. Goods represent tangible products such as clothing, laptops, smartphones, bicycles, cars, food, and beverages.

What are the 7 types of products?

Types of Product – Goods, Services, Experiences, Convenience, Shopping, Specialty Goods, Industrial Goods and Consumer Goods.

What are the 6 categories of business products?

These products are divided into six subcategories: installations; accessory equipment; raw materials; component parts and processed materials; maintenance, repair, and operating supplies; and business services. Business products also carry designations related to their durability.

What are 5 examples of products?

Examples of shopping productsComputers.Mobile phones.Entertainment equipment, such as an Xbox or PlayStation.Cameras.Household furniture.Washing machines and dishwashers.Clothing.Sports equipment.More items...

What are the categories of new product?

The Six Categories of New ProductsNew-to-the-world Products (really new Products) ... New-to-the-firm Products (new Product Lines) ... Additions to existing Product Lines. ... Improvements and Revisions to existing Products. ... Repositionings. ... Cost Reductions.

7 Types of Product - Simplicable

Commodity Products and services that customers view as undifferentiated.This means that customers buy on price alone and see no difference between products as long as they meet a minimum level of quality.Firms that produce a commodity have no influence over price and must accept market prices.

9 Types of Product Category - Simplicable

A product category is a type of product or service. Product categories are typically created by a firm or industry organization to organize products. This can include a hierarchy of categories that resemble a tree structure. Alternatively, product categories can be a flat structure such as a list of product types.

What are the main categories of products?

The major classification of products may be Consumer Products and Business products.

What matters here is only the specialty of the product?

Since price does not have any impact, the producer has to focus only on the ever-increasing trust and loyalty of the customer, for which a consistent improvement in the product is required. Above all, a sense of status consciousness is also associated with this category of products

What is the difference between business and consumer products?

Business Products are generally Industrial Products, whereas Consumer Products are further classified on the basis of shopping habits of consumers, Durability of product and to some extent tangibility of the products. On the basis of above-mentioned criteria, products may broadly be further classified in following different types:

What are products that users buy as a routine matter for their daily life usage?

Products that users buy as a routine matter for their daily life usage are convenience products. These are bought by the customer just habitually without having a thought for an alternative option. In fact, these are mostly low-cost items; hence there is hardly any difference between different brands. Resultantly customers keep on buying the same brand over and over without considering any other brand.

What is an unsought product?

Unsought Goods. Product Classification: Product is an article/substance/service, produced, manufactured and/or refined for the purpose of onward sale. It may be any item that is the result of a process or action. It can be intangible or intangible form. A product has a cost and therefore has a price, means to produce a product you have ...

What is the opposite of convenience goods?

2. Shopping Goods. Just opposite to Convenience Goods, Shopping Goods are the products that carry relatively high costs, such as house, car and clothing, etc. Customers spend a little time on research and analysis while buying such products.

What are the different types of classification?

Segregation or grouping of various products in different types is somewhat informal. In general, there is no definite or standardized procedure followed by most manufacturers but still, there are certain standardized methods of classification that exist in different parts of the word. These may include: 1 GS1 Global Product Classification 2 International Classification of Goods & Services (NICE) 3 North American Product Classification System 4 Harmonized Commodity Description and Coding System (HS)

How are consumer products classified?

Consumer products are classified by how they meet the need for which they are purchased and by the way they are purchased rather than on the basis of the characteristics of the products themselves. The three main categories of consumer product are consumables, durables and ser­vices.

How many categories of goods are there?

Product or goods can be classified into two broad categories depending upon the use for which they are meant.

What is emergency goods?

Emergency goods are those consumable products for which buyers are likely to make a special visit to the shops when supplies run out or are low. Disposable nappies, milk, coffee, and cigarettes are all products likely to come within this category. ADVERTISEMENTS: ii. Speciality Goods:

How many categories of products does Kotler suggest?

Kotler suggests there are four categories of products:

What are some examples of consumables?

Examples are prescription medicines, alcoholic beverages, and hobby consumables including DIY products such as paint, photographic processing chemicals and artist supplies. In a second category would be food products purchased for a special occasion or, as a gift, cosmetics and personal care products.

What is a shopping good?

a. Shopping Goods – These are those products which are usually selected after ‘shopping around’ to compare price, quality, design or colour. Clothes, white goods (washing machines, refrigerators, etc.), brown goods (television, stereo systems, etc.), furniture, and motor vehicles are typical of products in this category. Buyers generally exhibit dissonance-reducing buying behaviour when purchasing this type of product.

What is impulse category?

It is often useful to further differentiate products within this category using the fol­lowing subcategories – staples, impulse, and emergency. Staples are those products which are usually bought as part of an everyday shopping-list. Impulse goods are those purchased on sight without being considered previously, e.g., special offers or the chocolates, sweets and magazines sold at supermarket checkouts.

What are the two types of products?

They classify goods based on whether they are consumer goods or industrial goods. Generally, products are classified into two types; Consumer Products ( convenience products, shopping products, ...

What are the types of industrial goods?

The types of Industrial goods are raw materials, component parts, major equipment, accessory equipment, operating supplies, and services. Let’s understand the main two types of product and their subcategories one by one. 1.

What is consumer product?

Consumer products are those which are bought by consumers for ultimate consumption and not for resale. These goods can be further classified based on how consumers buy them. Consumer products include (1) convenience products, (2) shopping products, (3) specialty products, and (4) unsought products. Industrial products are those intended ...

What is industrial product?

Industrial products are those intended for use in making other products or operating a business or institution. Thus, industrial products are differentiated from consumer products based on their ultimate use. The types of Industrial goods are raw materials, component parts, major equipment, accessory equipment, operating supplies, and services.

What are staple goods?

Staple goods. Those goods that the consumer buys on a very regular basis plans for the purchase, and tends to be somewhat brand loyal. Ballpoint-pens soft drinks, pickles, tobacco products, etc., are usually considered as staple goods.

What are some examples of impulse purchases?

Magazines, street foods, ice cream, are examples of impulse items. One of the most common misconceptions about impulse goods is that they are bought irrationally. Though such purchases are not preplanned, they satisfy consumer needs, and therefore cannot be viewed as wasteful.

What are emergency goods?

Candles, matches, antiseptics are certainly emergency goods. 2. Shopping Products. Shopping goods are those consumer goods which the customer in the process of selection and purchase characteristically compares on such bases as suitability, quality, price, and style.

What are consumer products?

Consumer Products. Products are broadly classified into two categories – consumer products and industrial products. Consumer products are products that the ultimate consumer purchases himself for direct use. The consumer purchases these consumer products to satisfy his personal needs and desires. Some examples of consumer products are toothpaste, ...

What is specialty product?

Specialty Products: For specialty products, consumers make special efforts to buy them. They are not your regular run of the mill consumer products. The buyer is willing to go through a lot of effort to purchase such products. Take for example any artwork, paintings, sculptures etc. The demand for such specialty products is usually pretty limited and the prices are high.

What is the life cycle of a product?

Product life cycle is a representation of the cycle through which each product goes through from introduction to decline and eventual demise of the product. The Product Life Cycle helps us recognize which stage the products are in.

What are business services and supplies?

Business Services and Supplies: These are industrial goods and services that facilitate the manufacturing process. They include services such as painters, technicians, maintenance, and repairs. And products such as lubricants, stationary etc.

What is the first P of a marketing mix?

The first P of the Marketing Mix is Product. It is the bases of the marketing mix of a company. It is important for a company to develop the perfect product for the right market. Here we will look at the various types of products and the life cycle of a product. Let us get started!

How many stages are there in a product lifecycle?

There are four distinct stages in a product’s lifecycle. Right from the introduction of the product in the market to its end. Every stage has its own distinct features. And the company should change its marketing strategy every time the product makes its move from one stage to another.

What are some examples of convenience products?

They are bought frequently and with very little effort. Examples include medicines, toiletries, newspapers etc. Such convenience products have ongoing and continuous demand. Such goods are also bought in small quantities and are also generally lowly priced.

What are the types of consumer products that fall within the category of shopping products?

Types of consumer products that fall within the category of shopping products are: furniture, clothing, used cars, airline services etc.

What are the different types of consumer products?

Marketers usually classify consumer products into these 4 types of consumer products: Convenience products. Shopping products. Speciality products. Unsought products. These 4 types of consumer products all have different characteristics and involve a different consumer purchasing behaviour. Thus, the types of consumer products differ in ...

What is a consumer product?

Firstly, what specifically is a consumer product? A consumer product is a product bought by final consumers for personal consumption. But not every consumer product is the same. There are four different types of consumer products. Marketers usually classify consumer products into these 4 types of consumer products:

What is number 3 of consumer products?

Number three of the types of consumer products is the speciality product. Speciality products are consumer products and services with unique characteristics or brand identification for which a significant group of consumers is willing to make a special purchase effort. As you can see, the types of consumer products involve different levels ...

What are some examples of convenience products?

Examples include articles such as laundry detergents, fast food, sugar and magazines. As you can see, convenience products are those types of consumer products that are usually low-priced and placed in many locations to make them readily available when consumers need or want them.

Do unsought products require marketing?

As a consequence of their nature, unsought products require much more advertising, selling and marketing efforts than other types of consumer products. Unsought products require some specific marketing strategies. Have a look at marketing strategies for unsought products. Below you can find relevant marketing considerations for each ...

How many different types of products are there?

There are four different types of products as we explore this concept in-depth, these are; ‘convenience products’, ‘shopping products’, ‘specialty products’ and ‘unsought products.’

What are some examples of products that consumers do not know about?

Examples include funeral services, house alarms, fire extinguishers, life insurance, and even encyclopedias.

What is a consumer product?

Simply put, a consumer product is something that has been purchased by the end consumer or a household for their consumption.

Why is the purchase process not only requires an extra effort but also led comparison?

The purchase process not only requires an extra effort but also led comparison because of falling in the niche category. Here, the consumers are brand conscious and brand loyal and are more concerned regarding the quality of their purchases.

How many categories of new products are there?

As you see, we have to broaden our definition of new products to include the following six categories of new products.

What are some examples of P&G products?

Current products made better. Examples: P&G’s Ivory Soap and Tide power laundry detergent have been revised numerous times throughout their history, and there are countless other examples.

What is the most important commitment to bring new products to market?

A greater commitment of human and financial resources is clearly often required to bring the most innovative new products to market successfully.

What are some examples of P&G line extensions?

Examples: P&G’s Tide Liquid detergent, Bud Light, Special K line extensions ( drinks, snack bars, and cereals).

Is a new product a new product?

All the categories of new products are considered new products, but it is clear to see that the risks and uncertainties greatly differ, and the categories need to be managed differently.

Is repositioning a new product?

As we already discussed before, you may have an argument about whether repositions are actually new products. Yet, they can be considered as new products, as the firm undertakes a new products process. Repositionings are products that are retargeted for a new use or application. Examples: Arm & Hammer baking soda repositioned as a drain or refrigerator deodorant; aspirin repositioned as a safeguard against heart attacks. Also includes products retargeted to new users or new target markets. Marlboro cigarettes were repositioned from a woman’s cigarette to a man’s cigarette years ago.

What are consumer products?

Consumer Products. Products are broadly classified into two categories – consumer products and industrial products. Consumer products are products that the ultimate consumer purchases himself for direct use. The consumer purchases these consumer products to satisfy his personal needs and desires. Some examples of consumer products are toothpaste, ...

What is specialty product?

Specialty Products: For specialty products, consumers make special efforts to buy them. They are not your regular run of the mill consumer products. The buyer is willing to go through a lot of effort to purchase such products. Take for example any artwork, paintings, sculptures etc. The demand for such specialty products is usually pretty limited and the prices are high.

What is the life cycle of a product?

Product life cycle is a representation of the cycle through which each product goes through from introduction to decline and eventual demise of the product. The Product Life Cycle helps us recognize which stage the products are in.

What are business services and supplies?

Business Services and Supplies: These are industrial goods and services that facilitate the manufacturing process. They include services such as painters, technicians, maintenance, and repairs. And products such as lubricants, stationary etc.

What is the first P of a marketing mix?

The first P of the Marketing Mix is Product. It is the bases of the marketing mix of a company. It is important for a company to develop the perfect product for the right market. Here we will look at the various types of products and the life cycle of a product. Let us get started!

How many stages are there in a product lifecycle?

There are four distinct stages in a product’s lifecycle. Right from the introduction of the product in the market to its end. Every stage has its own distinct features. And the company should change its marketing strategy every time the product makes its move from one stage to another.

What are some examples of convenience products?

They are bought frequently and with very little effort. Examples include medicines, toiletries, newspapers etc. Such convenience products have ongoing and continuous demand. Such goods are also bought in small quantities and are also generally lowly priced.