A proper classification scheme is a useful marketing tool.
In general, products are classified according to two fundamental elements; its level of physical transformation or processing and its type of use or target market.
The basic classification scheme according to their physical transformation divides the products into:
1. Agricultural products and raw materials: These are the "basic" goods , naturally extracted from land or sea. Such products generally have a low cost, are sold in large volumes, and are generally used to generate other products with higher added value.
Examples: Unrefined oil, iron and crude metals, wheat, corn, etc.
2. Semi-industrial goods: They are those elements that are mass produced but do not have high added value and are of simple production.
Examples: brooms, pencils, tables, chairs, simple metallurgy (keys, doors).
3. Industrial goods : These are high value-added goods, medium-high technology, which require various transformation processes.
Industrial goods include:
- Semi-finished products. Large and small teams, where we find basic machinery, tools and production goods. Supplies for the elaboration of other products. Parts of a final product.
4. State-of-the-art goods : These are super specialized goods, which are of restricted consumption and are generally used in high-tech tasks. This category is born in the face of recent great technological advances.
Example: Spaceships, cutting edge technology such as biomedical genetics, weapons of war etc.
Division: Currently, the aim is to divide the products into more specialized categories, since technological changes have created new needs and new products.
The basic transformation scheme according to the type of use or target market is:
1. Final consumer goods: They are those that supply an immediate need to be used or enjoyed immediately.
These are divided into:
to. Unit items: Cover basic needs such as food. Generally, your purchase decision is easy to make.
b. Items subject to purchase process: They are those that require a purchase decision and a capital saved for its use.
The clear example is household appliances, which are general consumer goods, not necessary and that require a purchase decision based on comparisons with other options.
c. Specialty or luxury items: Generally unique consumer products that require additional purchasing effort.
2. Intermediate consumption goods : They are those goods that serve to maintain, repair, or produce new things.
An example of this type of products are cement, tools, etc.
The goods can also be divided into: 1. Industrial consumer goods. 2. Personal consumption goods.
Marketing considerations for products:
Marketing managers should take into account additional considerations when classifying their products.
The following table can summarize these considerations a little:
| Marketing consideration | Assessment | Assessment |
| Time and effort of the consumer in the purchase | Low | Tall |
| Time spent on
purchasing planning |
Low | Tall |
| Price | Low | Tall |
| Product profit margin | Low | Tall |
| Type of buyer | Person | Business |
| Product turnover level | Low | Tall |
| Technological complexity | high | Low |
| Advertising | Specialized (one on one, direct) | General (mass media) |
| Physical duration of the good | Perishable | Nonperishable |
| Purchase frequency | Low | high |
| Type of need | Not necessary | Necessary |
| Used seller | Internal (direct) | External (retail, distributed,
wholesale) |
When goods are properly classified, marketing decision makers have a tool that makes it easier for them to make marketing decisions.
Notes, sources and resources
- MARKETING BASIS CLASSIFICATION OF INTERMEDIARIES IN THE MARKETING PROCESS Materials and their classification PACKAGING, PACKAGING AND PACKAGING MARKETING PLAN MARKETING CONCEPTS
