CHAPTER 3
PRODUCT CLASSIFICATION
MARKETING STRATEGY
O.C. FERRELL • MICHAEL D. HARTLINE
Thonburi University A.Suchada Hommanee
Product Classification
1.Product lifetime
 Nondurable product
 Durable product
2.Physical
 Tangible product
 Intagible product
3.Purpose of purchase
 Consumer product
 Industrial product
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Product Classification
• Consumer 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
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I. 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.
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I. Convenience Products
Staple product
Convenience
product
Pure impluse buying
Reminder impluse
buying
Impluse product
Suggestion impluse buying
Emergency
product
Planned impluse
buying
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Convenience Products
Examples of convenience products are :
• Bread
• Gasoline
• Newspapers
• Chewing Gum
• Soft Drinks
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Convenience Products
Marketing Strategy
Product
Product
Flanking
Price
Distribution
The level of
Distribution
Promotion
Advertising
Multibrand
Brandextension
Retailer
Sales
Promotion
Quality
Product
innovation
Intensive
Distribution
Sale force
7-7
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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 :
•Appliances
•Furniture
•Men’s Suites
•Bicycles
•Cellular Phones
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Shopping Products
These products are expected to last for a fairly
long time and thus are purchased less frequently
than convenience items
Homogeneous shopping product
Hetrogeneous shopping product•
Marketing Strategy : 4P’s
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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
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Specialty Products
Examples of specialty products are :
•Unique Sports Cars
•Rare imported
•Special handcrafted furniture
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Business Product Classifications
• 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
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Product Classification
• Business 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
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Business Product Classifications
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
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Business Product Classifications
 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.
Examples of Component Parts are :
•Tires
•Computer chips
•Switches
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Business Product Classifications
 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
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Business Product Classifications
 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
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Business Product Classifications
Supplies
Facilitates production and operations, but it
does not become part of the finished product.
Examples of Supply are :
•Paper
•Pencil
•Oil
•Cleaning Agents
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Business Product Classifications
Business Services
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.
Examples of Business Services are :
•Financial
•Rubbish
•Marketing/Advertising
•Legal
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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
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Discussion Question
• 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?
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ASSIGNMENT 2
 ในการดาเนินกลยุทธ์ ด้านการตลาด กลยุทธ์ ด้านผลิตภัณฑ์ เป็ นปัจจัยที่
สาคัญทีผ่ ู้บริหารให้ ความสาคัญเป็ นอย่ างยิง่ จงอธิบายความหมายของคาว่ า
“ผลิตภัณฑ์ ” พร้ อมทั้งอธิบายส่ วนประสมทางผลิตภัณฑ์ (Product
Mix) โดยยกตัวอย่ างสิ นค้ าประกอบ
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