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Guruwo Paul T.
CLASSIFICATION OF CONSUMER
PRODUCTS IN BOTSWANA
1
Product Differentiation
• Consumer goods are bought by end-users for
household or personal consumption.
• Industrial goods are bought by firms for resale
or as raw materials for further processing into
finished items.
• Some products however fall under both
consumer goods and industrial goods
classification e.g. a car bought and used for
private use is a consumer good but one used
for business is classified as an industrial good.
2
CLASSIFICATION OF CONSUMER PRODUCTS
Consumer Products are BROADLY classified according to either their
tangibility or durability.
• Durable products are tangible products that can be used over and over
again, i.e. they survive a number of uses over time e.g. a car, furniture
etc.
• Non-durable products are products that are consumed in one or a few
uses. The satisfaction that one gains from nondurable products is
essentially short-term e.g. cigarettes, fuel, medication, etc.
• Services are acts or performances that one party can offer to another
that is essentially intangible and does not result in ownership of
anything e.g. watching a movie, a transport ride, massaging.
3
Classification of Business Vs Consumer Goods
Business / Industrial Goods Consumer Goods/ markets
•Production goods
- Raw materials
- Manufacturing materials and component parts
- Process materials
•Installation and accessories
- Installations
- Accessory equipment
•Supplies and services
- Operating supplies
- Software packages
- Services such as machine maintenance,
professional services, consultants, etc.
 Convenience Products
- Staple
- Impulse
- Emergency
 Shopping Products
- Uniform
- Non-uniform
 Specialty Products
 Unsought Goods
- New unsought goods
- Regularly Unsought
goods 4
1. Convenience goods
These are consumer goods and
services that end-users usually buy
frequently, immediately and with a
minimum comparison and buying
effort e.g. candies, chocolates,
newspapers, fast foods, bread,
condiments, etc.
These products are usually low priced
and marketers place them in many
locations to make them readily
available when customers need them.
5
2. Shopping goods
 They are less frequently purchased products
and services that customers compare
carefully on suitability, quality, price and
style.
 When buying shopping products, consumers
spend much time and effort in gathering
information and making comparisons e.g.
furniture, clothing, used cars, major
appliances, hotels and motels, etc..
 Marketers usually distribute these products
through fewer outlets but deeper sales
support is used to help customers in their
comparison efforts 6
3. Specialty goods
Specialty goods have exceptional
characteristics or reputable brands which
buyers are willing to make an extra effort
looking for and can pay a premium price
e.g. special car brands/types, unique
photographic equipment, designer clothes,
specialists legal/medical services, jewellery
etc.
Buyers of specialty products are a specific
target market that’s is willing to invest
their time, effort and travel long distances
to buy such luxurious specialty products.
7
4. Unsought goods
• Unsought consumer goods are those that
the consumer either do not want to think
about or knows about but does not
normally think of buying, until a dormant
need is aroused e.g. life insurance, funeral
policies, etc.
• The major new innovations are unsought
until the consumer becomes aware of them
through advertising.
• By their nature, unsought products require
a lot of advertising, personal selling and
other marketing communications.
8
Thank you
Paul T. Guruwo
Marketing Management Lecturer & PhD Candidate,
Department of Entrepreneurship,
BA ISAGO University,
P. Bag 149,
Gaborone, Botswana
guruwopt@gmail.com
9

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Classification of consumer products in Botswana by Guruwo Paul T.,pdf

  • 1. Guruwo Paul T. CLASSIFICATION OF CONSUMER PRODUCTS IN BOTSWANA 1
  • 2. Product Differentiation • Consumer goods are bought by end-users for household or personal consumption. • Industrial goods are bought by firms for resale or as raw materials for further processing into finished items. • Some products however fall under both consumer goods and industrial goods classification e.g. a car bought and used for private use is a consumer good but one used for business is classified as an industrial good. 2
  • 3. CLASSIFICATION OF CONSUMER PRODUCTS Consumer Products are BROADLY classified according to either their tangibility or durability. • Durable products are tangible products that can be used over and over again, i.e. they survive a number of uses over time e.g. a car, furniture etc. • Non-durable products are products that are consumed in one or a few uses. The satisfaction that one gains from nondurable products is essentially short-term e.g. cigarettes, fuel, medication, etc. • Services are acts or performances that one party can offer to another that is essentially intangible and does not result in ownership of anything e.g. watching a movie, a transport ride, massaging. 3
  • 4. Classification of Business Vs Consumer Goods Business / Industrial Goods Consumer Goods/ markets •Production goods - Raw materials - Manufacturing materials and component parts - Process materials •Installation and accessories - Installations - Accessory equipment •Supplies and services - Operating supplies - Software packages - Services such as machine maintenance, professional services, consultants, etc.  Convenience Products - Staple - Impulse - Emergency  Shopping Products - Uniform - Non-uniform  Specialty Products  Unsought Goods - New unsought goods - Regularly Unsought goods 4
  • 5. 1. Convenience goods These are consumer goods and services that end-users usually buy frequently, immediately and with a minimum comparison and buying effort e.g. candies, chocolates, newspapers, fast foods, bread, condiments, etc. These products are usually low priced and marketers place them in many locations to make them readily available when customers need them. 5
  • 6. 2. Shopping goods  They are less frequently purchased products and services that customers compare carefully on suitability, quality, price and style.  When buying shopping products, consumers spend much time and effort in gathering information and making comparisons e.g. furniture, clothing, used cars, major appliances, hotels and motels, etc..  Marketers usually distribute these products through fewer outlets but deeper sales support is used to help customers in their comparison efforts 6
  • 7. 3. Specialty goods Specialty goods have exceptional characteristics or reputable brands which buyers are willing to make an extra effort looking for and can pay a premium price e.g. special car brands/types, unique photographic equipment, designer clothes, specialists legal/medical services, jewellery etc. Buyers of specialty products are a specific target market that’s is willing to invest their time, effort and travel long distances to buy such luxurious specialty products. 7
  • 8. 4. Unsought goods • Unsought consumer goods are those that the consumer either do not want to think about or knows about but does not normally think of buying, until a dormant need is aroused e.g. life insurance, funeral policies, etc. • The major new innovations are unsought until the consumer becomes aware of them through advertising. • By their nature, unsought products require a lot of advertising, personal selling and other marketing communications. 8
  • 9. Thank you Paul T. Guruwo Marketing Management Lecturer & PhD Candidate, Department of Entrepreneurship, BA ISAGO University, P. Bag 149, Gaborone, Botswana guruwopt@gmail.com 9