Product Classification: What It Is & Its Impact on Marketing Efforts
The other day, I roamed the aisles of CVS and picked up the same toothpaste I’ve been buying for years.
I didn’t think twice about it. I made the purchase on auto-pilot. I didn’t consider testing out a different brand or purchasing one from another retailer.
Toothpaste, as it turns out, is known as a “convenience good,” which consumers usually buy without putting too much thought into the brand or effort.
Understanding product classification is key to uncovering the reasons behind your consumers’ general buying behaviors and how you can better market your products as a result.
There are four types of product classification. Let’s dive into each type, so you can determine where your product falls.
Product Classification in Marketing
Knowing the classification of a product is vital when devising a marketing strategy. Why? Well, it lets you know the mindset most consumers have and the behavior they exhibit when interacting with your product.
This knowledge arms you to devise an effective marketing strategy that will meet your consumers where they are. It also helps you decide on a realistic marketing budget.
For instance, say your products fall under the “unsought goods” classification (more on that in this section). 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 work a little harder to be visible to consumers and highlight the benefits of their goods or services.
Shopping goods, on the other hand, are highly visible and very 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
Like the Crest toothpaste example, convenience goods are products that consumers purchase repeatedly and without much thought.
Once consumers choose their brand of choice, they typically stick to it unless they see a reason to switch, such as an interesting advertisement that compels them to try it or convenient placement at the checkout aisle.
These products include gum, toilet paper, soap, toothpaste, shampoo, milk, and other necessities that people buy regularly.
To market a convenience good, you want to consider that most people will impulse buy these products. Placing your products near the checkout line at a store could be a good idea for these products — which is why you’ll often find candy and gum at …read more
Source:: HubSpot Blog
