PRODUCT CLASSIFICATION MARKETING STRATEGY O.C. FERRELL MICHAEL D. HARTLINE CHAPTER 3 Thonburi University A.Suchada Hommanee

Product Classification 1 1.Product lifetime  Nondurable product  Durable product 2.Physical  Tangible product  Intagible product 3.Purpose of purchase  Consumer product  Industrial product

Product Classification Consumer Product ClassificationsConsumer Product Classifications These groupings are based primarily on characteristics of buyer’s purchasing behavior I.Convenience Products II.Shopping Products III. Specialty Products IV. Unsought Products (1) Products of which consumers are unaware (2) Products that consumers do not consider purchasing until a need or emergency arises 2

I.Convenience Products 3 –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.

4 I.Convenience Products Convenience product Staple productImpluse productPure impluse buying Reminder impluse buying Suggestion impluse buying Planned impluse buying Emergency product

5 Examples of convenience products are : Bread Gasoline Newspapers Chewing Gum Soft Drinks Convenience Products

7-7 Convenience Products Marketing Strategy Marketing Strategy Product Product Flanking Multibrand Brand- extension Quality Product innovation PriceDistribution The level of Distribution Retailer Intensive Distribution Promotion Advertising Sales Promotion Sale force 5

6 Shopping Products Is an item for which buyers are willing to expend 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. Examples of shopping products are Examples of shopping products are : Appliances Furniture Men’s Suites Bicycles Cellular Phones

7 These products are expected to last for a fairly long time and thus are purchased less frequently than convenience items Shopping Products Homogeneous shopping product Hetrogeneous shopping product Marketing Strategy : 4P’s Marketing Strategy : 4P’s

8 Specialty Products  It possesses one or more unique qualities for which a buyer is willing to expend 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

9 Specialty Products Examples of specialty products are : Unique Sports Cars Rare imported Special handcrafted furniture

Business Product Classifications 10 A product bought for resale, for making other products, or for use in a firm’s operation PRODUCT CLASSIFICATION- Business Products Raw Materials Major Equipment Accessory Equipment Component Part Process Material Supply Business Service

11 Product Classification Business Product ClassificationsBusiness Product Classifications  Raw Materials Raw materials usually are bought and sold according to grades or specification. Examples of Raw Materials are : Gravel Trees Aluminum Wood Copper

Business Product Classifications 12  Major Equipment Includes large tools and machines used for production purposes. Some major equipment is custom-made for a particular organization, but other items are standardized products that perform one or several tasks for many types of organizations. Examples of Major Equipment are : Cranes Bulldozers Furnaces Dump Truck

Business Product Classifications 13 Examples of Component Parts are : Tires Computer chips Switches  Component Parts Is part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly.

Business Product Classifications 14  Process Materials Is used directly in the production of another product. Unlike a component part, a process material is not readily identified in a finished product. Like component parts, process materials are purchased according to industry standards. Examples of Process Material are : Food Preservatives Industrial Glue

Business Product Classifications 15  Accessory Equipment Is standardized equipment used in a firm’s production or office activities. Compared with major equipment, accessory items are usually much less expensive and are purchased routinely with less thought. Examples of Accessory Equipment are : Hand tools Computers Calculators

Business Product Classifications 16  Supplies Facilitates production and operations, but it does not become part of the finished product. Examples of Supply are : Paper Pencil Oil Cleaning Agents

Business Product Classifications 17 An intangible product that an organization uses in its operations. Purchasers must decide if they want to do their own services or to hire them from outside the organization.  Business Services Examples of Business Services are : Financial Rubbish Marketing/Advertising Legal

18 Product Classification Product Lines and Mixes –Product Line –Product Mix Benefits of offering a wide variety and deep assortment of products: –Economies of Scale –Package Uniformity –Standardization –Sales and Distribution Efficiency –Equivalent Quality Beliefs

19 Consider the number of product choices that are available in the THAI. consumer market. In virtually every product category, consumers have many, many options to fulfill their needs. Are all of these options really necessary? Is having this many choices a good thing for consumers? Why or why not? Discussion Question

ASSIGNMENT 2  ในการดำเนินกลยุทธ์ด้านการตลาด กลยุทธ์ ด้านผลิตภัณฑ์เป็นปัจจัยที่สำคัญที่ผู้บริหารให้ ความสำคัญเป็นอย่างยิ่ง จงอธิบาย ความหมายของคำว่า “ ผลิตภัณฑ์ ” พร้อมทั้ง อธิบายส่วนประสมทางผลิตภัณฑ์ (Product Mix) โดยยกตัวอย่างสินค้าประกอบ 20