Product and Service Development Classification

• Product and Service Development Classification Firms classify their market offerings based on durability, tangibility, and use (consumer or industrial). Each type has an appropriate marketing mix strategy.
• 1. Durability and tangibility

  ⦁ Non durable goods: These tangible goods, usually called “fast-moving consumer goods

  (FMCG),” are typically consumed for one or a few uses, such as shampoo and soap.

  ⦁ Durable goods: These tangible goods usually have a longer lifetime, such as refrigerators, machine tools, and clothing. It normally requires more personal selling and service, a higher margin, and seller guarantees. Services: These are intangible, inseparable, variable, and perishable products that require more quality control, supplier credibility, and adaptability.
• 2. Consumer Goods

  ⦁ Convenience goods: These are readily available in all markets and require little buyer effort.

  ⦁ Shopping goods: These goods are of such importance that customers devote considerable time before making a purchase. Suitability, quality, price, and style are some of the basis of purchase. Examples include furniture, clothing, and major appliances.
• {2} Specialty goods: These goods have unique characteristics or brand identification for which customers are willing to make a special purchasing effort to reach dealers carrying the wanted products. Examples include cars, audio-video components, and men’s suits.

  {2} Unsought goods: These goods are those the consumer does not know about or usually thinks of buying, such as smoke detectors, life insurance, or fire extinguishers. Unsought goods require advertising and personal selling support.
• 3. Industrial Goods

  ⦁ Materials and parts – These goods become part of a finished product, such as raw materials and components like yarn, cement, and tires.

  ⦁ Capital items – These are long-lasting goods that facilitate the finished product’s development. They fall into two (2) groups:

  ⦁ Installations include buildings (factories, shops, and offices) and heavy equipment (generators, drill presses, mainframe computers, elevators).

  ⦁ Equipment includes portable factory equipment, tools (hand tools, lift trucks), and office equipment (desktop computers, desks).
• Supplies and business services – These are short-term goods and services that facilitate developing or managing the finished product. They are generally marketed through intermediaries because of their low unit value and the great number and geographic dispersion of customers. Price and service are important considerations because suppliers are standardized, and brand preference is often low.