Name and explain the four categories in the consumer product classification system?
1. Convenience products:
The key to success for convenience products are a strong brand (product mix) and intensive distribution (place mix). This fundamental platform can then be enhanced through in-store sales promotions (promotional and place mix) and leveraged through product line extensions (product mix).
Therefore, the key marketing mix factors for convenience products are:
Place - intensive distribution with good in-store position
Product - a strong recognizable brand
2. Shopping products:
The key marketing mix elements for shopping products include selective distribution (place mix) and various trade promotions targeting the distribution channels, that is, retailers and wholesalers (which is both the promotional mix and the place mix).
Therefore, the key marketing mix factors for shopping products are:
Place - selective distribution into the appropriate retailers
Promotion - trade promotions targeting the channel partners
3. Specialty products
Specialty products rely on a high quality or a unique product that consumers will deliberately seek out (product mix). The selection of a few appropriate retailers - known as exclusive distribution (place mix) - to perform partnerships with is the other key aspects of the marketing mix.
Therefore, the key marketing mix factors for specialty products are:
Product - high quality or unique products
Place - exclusive distribution partnerships with appropriate retailers
4. Unsought products
As suggested by the name, these are products not sought out by consumers on a proactive basis. To generate sales or to penetrate the market with unsought products, usually aggressive marketing is required, often in the form of direct marketing and personal selling (promotional mix).
To support these promotional methods, often a direct channel needs to be utilized, as these products will not generate significant retailer support (place mix).
Therefore, the key marketing mix factors for unsought products are:
Promotion - more aggressive promotional techniques
Place - direct or shortened distribution channels