This article covers the types and classification of products. Product is simply anything, tangible or intangible, which can be offered to the market for sale or exchange purpose. Let’s try to understand various categories associated with the classification of products.
What is a product?
The product can be defined as anything consists of Goods, Services or combination of both to fulfil market or consumer needs.
Products can be divided into two parts:
- Goods: Goods are generally physical and tangible in nature.
- Services: Services are generally virtual and intangible in nature.
Read more about: Levels of Product
The basis for the classification of products
Products can be classified on the basis of these factors:
- The user type
The Classification of Products
The classification of Products is given as below.
On the basis of Durability and tangibility
Products can be classified on the basis of how durable or tangible the product is!
- Durable products
- Non Durable Products
Services again can be divided into subcategories:
- Business Services
- Public Services
- Infrastructural Services
On the basis of user type
Products can be classified on the basis of types of users.
Consumer goods are goods sold to the final user for personal use. You may like to know the difference between personal & industrial consumers
Consumer goods can be classified into four sub types.
- Convenience Goods: For Example Biscuits, Chocolates, Cigarettes
- Shopping Goods: For Example Watches, Garment, Shoes
- Speciality Goods: For Example Car, Jewellery, Painting
- Unsought Goods: For Example Insurance, Smoke Detector
Industrial goods are the physical products sold to the organizations or businesses for assembling or manufacturing and reselling purpose.
Industrial goods can be classified into three subcategories.
- Raw Material: For Example: Iron Ore, Coal
- Components Parts: For example: Valves, Electric Motor
- Installations: For example – Shop Floor
- Machine Tools
- Storage Racks
- Lubricating oil
This is all about various types and classification of products with examples.