Types of Products
| Products are marketed after some time of their production. Products are of different types. Products can be classified on different bases. They can also be classified on the bases of utility, color, technology, durability, buyers etc. Nowadays, especially they are classified on the basis of utility/ value of study. Mainly they can be divided in two types/ classes as follows: |
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| Classification of Products on the basis of Use/ Utility |
1. Consumer goods/ Product
In simple meaning, the goods or materials bought to use or consumer are called consumer goods. Consumers buy such goods for the purpose of use. In other words, the goods bought for non-business purpose are called consumer goods. Pulse, rice, flour, milk, furniture, radio, television, different types of textiles, etc. are consumer goods. Such goods satisfy the needs of final consumers. Consumer goods also can be divided into different four classes to study. They are
a) Convenience Goods:
The goods the consumers buy time and again in simple way are called convenience goods. No long time or much cost needs to buy such goods. They can be bought easily at less cost and in short time. No plan is needed to buy these goods. It is also not necessary to use wisdom/rational in buying these goods. The consumers already know about price, quality, size, durability, taste etc. of the goods.
Generally, the goods which are compulsory for leading daily life and daily consumption are called convenience goods. Soap, match sticks, cigarette, medicines, toothpaste, fruits, vegetables, newspapers etc. are some of the examples of convenience goods. No extra efforts need to buy such types of goods. Their per-unit price becomes very low. Neither comparative study nor any other suggestions are needed to buy these types of goods.
i) Features of the convenience goods: As the convenience goods are bought frequently, they are bought in small quantity with less risk. The main features of convenience goods can be presented as follows:
- Convenience goods are needed daily for the consumers,
- Convenience goods are often named due to which the consumers can easily identify them.
- The consumers need to buy convenience goods regularly,
- Per unit cost of consumer goods become relatively low,
- Such goods have very short life and are less durable,
- No extra effort needs to buy such goods,
- Consumers have full knowledge about such goods.
ii) Marketing consideration: Convenience goods are daily needs. Such goods are not sold by the producers themselves. The producers give selling responsibility to different intermediaries, due to which selling channel for such product becomes long. Producers themselves bear the responsibility for the flow of information about the goods. Many depots/ sale centers are established to facilitate consumers to buy goods easily. The following things should be considered in selling such goods.
- Arrangements should be made to sell convenience goods through retailers.
- Long distribution channel should be selected for selling such types of goods.
- The responsibility of advertising such goods should be taken by the producers themselves.
- As the decoration attracts customers, goods should be set in attractive order in shops.
- Such goods should be given certain brand.
- Such goods should be packaged in attractive manner.
- Low profit margin strategy should be taken by the producers.
b) Shopping Goods
The goods which the customers buy giving more time and effort are called shopping goods. Buyer makes buying plan for shopping goods. The consumers should make rational decision to buy such goods. They buy these goods only after having compared to quality, price, size, original features etc. with substituting goods.
The consumers visit famous market centers or shopping centers for buying such goods. Since such goods are not related to daily life, the consumers may delay to buy them or postpone for some time. Refrigerator, computer, modern furniture, television, radio, car, motorcycle, camera, sewing machine, washing machine etc. are shopping goods. These goods become costly and take long time for selection.
i) Features of shopping goods: Shopping goods have various internal features. Buyers think seriously whether the benefit equivalent to the price from such goods can be taken or not. The customers make decision to buy such goods infrequently. The main features of shopping goods are as follows:
- More time and efforts need to buy shopping goods.
- Such goods become more durable than others.
- All the customers may not have full knowledge about such goods.
- Per unit price of shopping goods is more than other goods.
- Such goods are bought again only after a long period of time.
- Even if plan has been made to buy such goods, it can be postponed for some time.
- While buying shopping goods the customers compare with other substituting goods, study and analyze them.
ii) Marketing consideration: Shopping goods can be bought going anywhere if buyers like them. So, the shopping centers should be established in small number. Branding and packaging have no important role in such goods. Short distribution channel should be selected to supply such goods to the customers. Generally, the following things should be carefully considered in selling shopping goods.
- As decoration has no important role to attract customers, packaging need not be given importance,
- The supply channel for shopping goods should be short as far as practicable,
- Retailers’ role becomes effective in such goods. So, arrangement for selling goods through retailers should be made,
- Strategy for earning more profit from such goods should be made,
- Responsibility for advertisement of such goods should be given to retailers,
- As packaging of such goods has no importance, they should be packed suitably,
- The sellers of such goods should get full knowledge about quality, price, utility, operating methods etc. of such goods. Besides, the sellers should give warranty of services after sale.
c) Special Goods
The goods having special nature are called special goods. The buyers buy such goods only after long efforts and long time. These goods become very different from others in nature and specialty. So, the buyers become enthusiastic/ eager to buy such goods. These goods are compulsorily given brand name. The buyers do not buy such goods comparing them with alternatives even if available in markets. They give priority only to special brand goods. Expensive sports goods, cars, ornaments, currencies, stereo-sound equipment, photographic equipment, old stamps, valuable suits, electric goods etc. are special goods. As such goods can be easily obtained, the buyers need to pay much price and wait for a long time.
i) Features of specialty goods: Special goods have very important nature. Such goods become branded and buyers give more importance to brand name. Such goods cannot be found in all shopping centers and shops. These types of goods are generally, bought on special occasions or important day of any member of a family or on important social occasion. So, the buyers who try to find special quality goods, who can remain patient for long time and are ready to pay much price buy these goods. The specialty of such goods can be presented in the following points:
- Specialty goods are bought only on special occasions,
- Special efforts are made and time is given to buy such goods,
- While taking decision to buy such goods, their price and quality are not compared with others,
- The buyers of such goods take buying decision giving more importance to certain brand of the goods/ trade mark.
ii) Marketing considerations: As the demand of specialty goods become very low, shopping centers of such goods should be very limited. Demand of such goods may be high on special occasions and sale may be in large quantity. As far as practicable, channel of supply of such goods should be shorter. The producers and sellers should make joint efforts for the advertisement of such goods. Following things should be carefully considered for marketing such goods:
- As the buyers do not give any importance to branding and packaging of specialty goods, they should be packed properly,
- Producers and sellers should make joint efforts for the advertisement of such goods,
- A strategy to fix more prices per unit and more profit margins should be adopted,
- Decoration has no special role in selling such goods. So it is not necessary to give importance to decoration.
- Brand/ trade mark and store has special role in selling such goods,
- Shorter supply channel should be selected to sell such goods as the buyers buy them with their own special efforts.
d) Unsought Goods
If the consumers do not seek goods due to ignorance or even knowing about them, such goods are called unsought goods. Some such goods remain in markets or shops, about which the consumers do not know anything and even if they have knowledge about them they do not buy at that time. They do not realize the necessity of such goods. As they have no desire to buy, they also do not evaluate about the real utility of such goods. New invented goods, life insurance, valuable stones, electronic car, encyclopedia, talking computer audio-video, telephone etc. can be included in unsought goods.
i) Features of unsought goods: The consumers do not take interest to buy these goods even if they know completely or little about them. As necessity of such goods is not realized, the costumers do not think to buy them. Some of the features of unsought goods can be mentioned as follows:
- As the necessity of unsought goods is not realized, no buying plan is made for such goods,
- As such goods have differences in their natures, their prices also become different,
- As the brand/ trade mark of these goods has no role, it has no significance,
- The consumers may or may not have knowledge about such goods; some consumers may not give interest for not having money to buy them.
ii) Marketing considerations: Some consumers do not buy unsought goods due to lack of knowledge about them and some do not buy for not being able to pay price even if they know their importance. So, while marketing such goods, some important considerations should be taken in as follows:
- Consumers may not have any knowledge about newly developed/invented goods, so information about such goods should be provided to the consumers,
- A strategy of personal sale and advertisement should be made to promote the sale of such important and unknown goods,
- Price of such goods which cannot be found everywhere can be fixed relatively more.
- As far as possible, short and direct channel should be selected to supply or distribute such goods.
Industrial Goods
The goods purchased for industrial purpose but not for domestic use are called industrial goods. As such goods are purchased for manufacturing/ making other goods, they are also called business goods. The industrial goods are used to produce new goods, and simplify the production work. Machineries, equipment, raw materials, fuel, operational supply, manufactured goods, main part of the whole structure etc. are the examples of industrial goods. The buyers of industrial goods are business organizations, organizational institution, private and government offices and producers. Such industrial and business goods also can be divided into five classes as follows:
a) Raw Materials
The materials used to create new goods are called raw material. Finished goods are made by changing quality, shape and form of such raw materials. So, raw materials have an important role in production of new goods. Such basic materials are purchased by producers and business organizations. The raw materials are also divided into two categories as (a) farm products such as millets, wheat, barley, corn, paddy, cotton, tobacco, fruits, animal products etc. and (b) natural products such as gold, silver, iron, copper, coal, petroleum, herbs, valuable stones etc. As there are many producers of agricultural/ farm product, such products are supplied in many markets.
Comparatively, much effort needs to search, find and identify natural goods. So, business men or suppliers of such goods are found in limited numbers. As the suppliers or business men collect these goods by investing greater amount, this type of business may remain under control of limited business men. The natural goods become weighty and heavy. They have low unit value. Mostly, such goods are supplied by big producers and they establish direct relationship with industrial users. Therefore, business dealings may be conducted by having long term agreement/ contract between buyers and suppliers.
i) Features of raw materials: Raw materials are the part of any finished goods. The finished goods can be a quality goods only if the quality of raw materials is good. Raw materials also need to be collected from different places or regions. Features of such materials may be different. Generally, the main features of raw materials can be mentioned as follows:
- Businesses or industries purchase raw materials regularly,
- The life of animals, agricultural products becomes very short,
- Per unit value of natural raw materials becomes low,
- Only some big businesses or producers deal in natural goods and supply also remains limited.
ii) Marketing considerations: While selling/distributing raw materials agreement/ contract may be done between buyer and seller. Quantity, price, distribution, quality, standard etc. is determined on the basis of the contract/ agreement. This should be sincerely implemented by both sides. As far as possible, very short channel should be used for supplying such goods. The main things to be considered in marketing are as follows:
- More attention should be given to the quality of raw material than to the brand/ trade mark.
- Shortest channel should be used for distribution of such goods,
- As competition becomes tough in agricultural/ animal products, a proper strategy should be adopted for such goods,
- No promotional activities need to be conducted in context of distribution/ supply of raw materials,
- No pre or post sale services are needed,
- As such goods become different in quality and nature, they should be carefully stored and transported,
- Long term agreement/ contract should be done for supplying such goods of different quality and standard.
b) Fabricating Parts and Materials
Raw materials or finished goods can be used in making any type of new goods. A new product can be made using two or more types of goods. In this way, the goods which are used as part of readymade goods are called fabricating, so they are also called finished materials. After including such materials in main product, new type of product becomes ready. Such finished materials are used without changing their form to produce the third goods. Motor tyres, buttons, zippers, batteries, machinery parts etc. are the examples of such goods. Per unit price of such goods becomes relatively low. The producers or business houses try to buy these goods as much in amount as they can.
i) Features of fabricating parts and materials: The fabricating parts or materials are used without changing their quality, form and nature to prepare a third product. These parts have an important role in new goods. They give completeness to the newly made goods. They have various quality and features. They can be mentioned as follows;
- The fabricated goods or materials remain as important part of the ready-made products,
- The life of such goods depends on the parts and materials used in them,
- Per unit value of such products becomes relatively low,
- These types of parts or materials should be purchased in large amount.
- Industrialists do not buy fabricating parts or materials every time.
ii) Marketing considerations: The entrepreneurs decide to buy such goods on the basis of services and warranty of the sellers. Even such situation is present, at least something about the materials should be given special consideration. If consideration about important thing is not given, marketing can be affected. As a result, other suppliers control the market and reap benefits. So, the following things should be considered while marketing such goods/ materials.
- Duration of contract or agreement between buyer and supplier of machinery parts and materials should be long,
- Supply or distribution channel of such goods should be short and direct as far as possible,
- Post sale services (service after sale) should be compulsorily provided,
- Promotional activities for such materials and machinery parts should be conducted,
- Branding of such goods is not given importance.
c) Installation
Big industrial capital equipment and instruments are called big machines. In other words, they are called substituting equipments. Such capital equipment becomes costly and long lasting. In the lack of these important machineries, raw materials cannot be changed into finished goods. Industrialists get encouragement to conduct business with the help of such equipment. These types of goods signify the scope, nature and efficiency of any business organization. Generator, office building, offset machine, computer, lift, billing machines etc. are the examples of machines. As these machines and apparatus need huge investment, a rational decision should be taken to buy, collect and install them. Such decision is taken by high level management.
i) Features of installation: Big machines are the capital equipment of business organization. Collection, purchase or installation need to invest much amount of capital. Specialists are needed to install and operate some machines/ equipment. Such equipment and apparatuses may have many features. Among them the main are as follows:
- Comparatively, per unit price of big machines and equipment becomes high,
- As the price of such machines and equipment is high, they are not bought every time,
- As such equipment and machines have quality and are costly, they last long,
- Brand of such machines/ equipment and business organization plays important role.
ii) Marketing considerations: Entrepreneurs and industrialists make decisions to installation of machineries/ equipment considering their brand. So, such equipment intermediaries are not needed in buying them. As such equipment and machineries are bought through contract/ agreement, the term/ duration of the agreement should be provided for such equipment. Special suggestions and advice should be taken from specialists of such machineries. While marketing such big machineries, special considerations should be taken as follows:
- After producing capital equipment, they should be given proper brand,
- Supply or distribution channel of such equipment should be short as far as possible,
- The seller should give assurance to the buyer for post sale service/ after sale service,
- Personal selling should be given preference rather than advertisement for sale promotion,
- The persons selling such equipment should be efficient, experienced and have technical knowledge.
d) Accessory Equipment
The equipment and apparatuses which help in business activities are called accessory equipments. Such equipments and apparatuses are not directly used in production, even then they have significant role. Accounting machine, typewriter, hand tools, fork lift, pick, liver, tables, chairs, drawers etc. are some of the examples as such equipment and tools are less expensive and short lasting.
i) Features of accessory equipment: Accessory equipment and tools do not become any part of the products. However, they play an important role in production. Such materials facilitate production process. So, accessory equipment and apparatuses have many special features. They are mentioned as follows:
- The accessory equipment helps to make production easy and regular,
- Price of such equipment becomes average,
- Life of accessory equipment becomes short,
- Purchase repetition of such equipment becomes medium compared to heavy machineries,
- As demand of such equipment becomes low, purchasing quantity is also low.
ii) Marketing considerations: Accessory equipment and apparatus are the only helping means in the process of production. Some business organizations may use direct channel to sell them while some may use intermediaries. An efficient business man wished to sell products by standardizing market price, quality of products, services etc. He may select supply channel considering demands received from different parts and places. While supplying such accessory equipments, mainly the following things should be considered:
- Although life of accessory equipment becomes very short compared to big machines, they should be sold through intermediaries,
- Trade mark/ brand of such equipment should be given more importance,
- Promotional activities should be conducted for such equipment,
- Post sale/ service after sale should be provided if buyers needed,
- Agreement/ contract may be done to supply such equipment and the duration of contract should be of average type.
e) Operating Supplies
The operating supplies help to conduct business activities continuously. The things which help to make production easy and regular are called operating supplies. But such goods can be the part of products. Operating supplies can also be delivery function or in the process of producing new product. Stationery, fuel, oil chemicals, petroleum, coal, furniture, clothes, etc. are the examples of the operating supplies. Per unit price becomes very low and life span becomes very short in such goods. These types of goods can be purchased daily and no special decision is needed to buy them.
i) Features of operating supplies: Operating goods cannot directly affect products; however, they provide great help in the process of production. Such indirect support becomes very important in businesses. Operating supplies have different features, the main are mentioned as follows:
- The operating supplies cannot be direct part of finished products,
- Per unit value of such goods becomes very low,
- Such goods have relatively short life,
- No much effort nor time is needed to buy such goods,
- As price of such goods has low price, they can be bought at anytime by taking prompt decision.
iii) Marketing consideration: The operating goods are not supplied by the producers themselves. They make arrangement to supply/ sell through intermediaries. Some goods need branding and more advertisements and some need little. Term of contract for supplying such goods becomes short. The following things should be considered while marketing the operating supplies.
- Intermediaries should be used to supply operating goods,
- The duration of the contract for supplying such goods should be short,
- Post sale/ after sale service is rarely provided for such goods,
- Promotional activities are not important for such goods,
- Importance is not given to the brand/ trademark of such goods.
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