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Product Classification: What It Is & Its Impact on Marketing Efforts
Product classification is key to uncovering the reasons behind your consumers’ buying behaviors.
For example, I’ve been buying the same toothpaste for years. I don’t think about testing out a different brand or buying from another retailer. Toothpaste, as it turns out, is a “convenience good.” Shoppers like me usually buy this product without putting too much thought into it.
Understanding product classifications like this can help you better market, price, and distribute your products.
There are four types of product classification and a variety of reasons why these classifications are important. Let’s dive into each type, so you can decide where your product falls, and learn the top marketing strategies for each.
Continue reading, or jump to the section you’re looking for:
- What is product classification?
- Product Classification in Marketing
- What are the four classifications of products?
- Why the Classification of Consumer Products Is Important
- Product Classification Examples
Product classifications are not the same as product categories. Both can help to organize products for promotion. But product categories are usually specific to a business, industry, or niche.
Product Classification in Marketing
Understanding product classification is vital when devising a marketing strategy. Why? Well, it lets you know the mindset most consumers have and the behavior they display when interacting with your product.
This knowledge helps you create effective customer-centric marketing strategies. It also helps you decide on a realistic marketing budget.
For instance, say your products fall under the “unsought goods” classification. This means that you’ll likely need to take a more aggressive marketing approach to reach consumers that may not have considered your product or brand.
Think of charity organizations, life insurance companies, and funeral homes. These are usually not top of mind for consumers. As such, these brands must put in more effort to be visible to consumers and highlight the benefits of their goods or services.
Shopping goods, on the other hand, are highly visible and competitive. Consumers typically spend time comparing quality, cost, and value before making a purchase. That’s why building brand loyalty is vital for this product classification.
As you can see, there are factors to consider for every classification of product. The more familiar you are with consumer habits and beliefs for that category, the more equipped you will be to market your product.
There are four types of products and each is classified based on consumer habits, price, and product characteristics: convenience goods, shopping goods, specialty products, and unsought goods.
Let’s dive into each one in more detail.
1. Convenience Goods
Convenience goods are products that consumers buy repeatedly without much thought.
Once consumers choose their brand of choice, they typically stick to it unless they see a reason to switch. For example, …read more
Source:: HubSpot Blog
