Types of products
From CEOpedia | Management online
(Redirected from Types of product)
|Types of products|
The product is called objects that are offered on the market in order to meet human needs, intended for consumption, use or further transformation. The products can be:
- material goods - car, telephone, wardrobe, etc.
- services - e.g. banks, restaurants, airlines
- places - e.g. New York, London
Breakdown of products
Due to the type of use by the recipient:
- Consumer goods - the purpose of acquisition is their consumption, these goods can be processed, but they are not sold.
- Industrial goods - after the purchase they are still processed, so that other goods that can be sold to consumers arise from them.
Such a division is fluid, for example the purchased sheet can be used by the final consumer or be used to produce the next good.
Due to durability and materiality:
- Products such as goods, physical goods can be:
- durable, long-term use - TV, washing machine,
- unstable, short-term use - sugar, magazine.
- Services are impermanent and immaterial, inseparable and indivisible.
We share them because of the way consumers behave and where they are acquired:
- Weekly products - we do not need information about these products, they are bought by the way, we buy them effortlessly easily, because they are properly displayed. There are:
- basic products - we buy them systematically, we do not think about buying them, we feel the need to buy them before leaving the store. The purchase is made regularly, e.g. buying bread, dairy products, beverages, etc. Shops use the strategy of placing such products at the end of the store, which is associated with the passage of the customer throughout the store, which may cause the desire to purchase additional products, e.g. impulsive,
- impulsive products - they are acquired under the impulse, we do not plan to buy them earlier, but seeing them in the store we feel a sudden desire to have them. An example can be a customer who, standing at the checkout, sees products and makes them purchase under the influence of a pulse such as chewing gum, candy bars, newspapers, etc. Purchases of such products are favored by appropriate display, eye-catching packaging, convenience of purchase and location,
- products of special need - needed unexpectedly, the quality, place and time is important when purchasing them, not the price. They are bought under the influence of an emergency, such as painkillers, bandages in the case of a wound. Such a need causes that attention is not paid to the price, but to its availability at a given moment. The appropriate sales strategy for these products is to make them available in many institutions, e.g. painkillers are sold in a pharmacy, kiosk, supermarket, petrol stations, etc.
- Selectable products - their purchase is made by choice. Consumers visit different places in a similar industry to compare the quality, functionality and prices of products. After such a comparison, customers get an opinion whether products are similar or different. Consumers are putting in or are ready to put in a lot of effort to compare products. There are:
- homogeneous products (identical) - the customer is guided by the price when choosing the same products and chooses a cheaper product. From the marketing point of view, the image of the same products arises in the consumer's consciousness, as generally there are no same products,
- heterogeneous products (non-homogeneous, they are not the same) - in terms of style, aesthetics, quality, etc. are perceived as different, when buying a client to some extent is not guided by the price, but draws attention if the product meets its expectations in terms of color, performance, parameters, size, etc. For example, when buying a phone, the customer is interested in its parameters, appearance, while the price is less important.
- Luxury products (purchased in special circumstances) - the purchase of such products is made responsibly after prior consideration. Before the client decides to purchase such a good, he is looking for information about its availability, price and quality, he consults with experts. These are usually expensive and rare products. When purchasing such products, the product brand plays a very important role.
* Unnoticed products (purchased without prior planning) - consumers do not perceive many products because they do not need them at the moment or do not know them. Examples of such products may be a dictionary, insurance, door bell. There are:
- unknown products,
- known but unnoticed products.
- Investment goods (main equipment) - they require large amounts of money, they are machines, buildings, land, whose purchase price is high, and they are used in a long period of time. There are:
- standard goods,
- non-standard goods - are adapted to individual needs.
- Additional equipment products - this is office equipment as well as equipment and tools used during production. These include office phones, fax machines, hand drills and all portable tools
- Raw materials - these are natural goods intended for consumption or processing. These are products of the mining industry, agriculture, forestry, fishery or are created as a result of waste processing. Types of raw materials:
- energy raw materials, i.e. fossil fuels, including hard coal and lignite, oil, peat, natural gas,
- secondary raw materials, i.e. already used products or waste, which are suitable for secondary processing,
- non-renewable raw materials, i.e. those that can not be renewed as a result of natural processes or it takes a very long time, e.g. crude oil, hard coal and lignite,
- renewable raw materials, i.e. those whose renewal is very short or current, e.g. air, water, renewable energy sources.
- Materials - they are consumed completely and once during production, they transfer their value entirely to products that are made of them.
- Semi-finished products - these are products that are intended for further processing or assembly.
- Supply products - they participate in the production process, but are less important than the previously discussed products. They do not become part of the final product. They are divided into:
- products for maintaining production continuity, e.g. diesel,
- additional products support the production process, e.g. light bulbs, cleaning products,
- spare parts, e.g. filters, bearings, V-belts.
- Professional services - current company activities are supported by warranty, financial, legal services, etc.
- Komninos, I. (2002). Product life cycle management. Thessaloniki: Aristotle University of Thessaloniki, 1-26.
- Berander, P. (2007). Evolving prioritization for software product management (Doctoral dissertation, Blekinge Institute of Technology).
- Cooper, R., Edgett, S., & Kleinschmidt, E. (2001). Portfolio management for new product development: results of an industry practices study. r&D Management, 31(4), 361-380.