5.3:
Types of Products
Marketers must understand the types of products and services they create to develop effective marketing mix strategies tailored to consumer needs and behaviors.
Products and services that individuals utilize for their personal needs are called consumer products and services, for example, smartphones and tourism.
Marketers classify these consumer products into four categories based on how they are bought and used.
For instance, convenience products and services are bought frequently, quickly, and without much thought. They're often habitual purchases, with consumers sticking to a preferred brand. Examples include toothpaste and milk.
Shopping products and services are purchased less frequently, often after carefully comparing quality, price, and suitability. Customers spend time and effort before buying these products—for example, furniture and airline services.
Specialty products and services, like luxury cars and fine art, possess unique qualities and command premium prices, appealing to brand-loyal customers.
Finally, unsought products and services, like fire extinguishers or life insurance, are considered by consumers only when a need arises, necessitating significant marketing efforts to ensure consumer awareness.
5.3 Types of Products
Marketers need to understand the significance of different types of consumer products – convenience, shopping, specialty, and unsought products as they require distinct marketing strategies.
Convenience products: such as fast-moving consumer goods, necessitate strategies that build brand loyalty due to frequent purchases and low customer involvement. For instance, Nutella leverages brand communities to empower consumers and cultivate loyalty.
Shopping products: like electronics, often involve higher customer involvement. Marketers should understand the role of consumer innovativeness and cultural context in product adoption.
Specialty products: are unique items with unique characteristics. Buyers are motivated by the perceived value of products, leading them to exert more effort in acquiring them. Brand recognition plays a key role, symbolizing quality and exclusivity and rendering comparisons with other products less critical.
Unsought products: are those consumers do not usually consider buying and require aggressive advertising and personal selling—for example, life insurance.
In summary, understanding the nature of different consumer products enables marketers to devise effective strategies, from enhancing product appearance to building brand communities, fostering loyalty, and promoting innovation.