Product Classification and Characteristics

Product Definition and Classifications

• A product or service is an offering by an organization to satisfy consumer needs and wants, comprising the benefit, core product, and augmentations.
• Products are classified as either consumer products or business products, based on their intended users.

Consumer Product Classifications

• Convenience products: frequently purchased, easily accessible, and affordable.
• Shopping products: comparison-shopped, considered purchases, and often evaluated on factors like quality, price, and style.
• Specialty products: unique, high-value, and often sought out by consumers.
• Unsought products: unknown or unthought of by consumers, often requiring education or awareness.

Business Product Classifications

• Installations: capital goods, such as buildings and heavy machinery.
• Accessories: non-capital goods that support or maintain installations.
• MROs (Maintenance, Repair, and Operating) supplies: goods used to maintain or support business operations.
• Raw materials: unprocessed goods used in production.
• Processed/component materials: transformed or manufactured goods used in production.
• Business services: intangible offerings, such as consulting and logistics.

Product Differentiation

• Elements of product differentiation: quality, features and benefits, product lines, product mix, branding, and packaging.

Innovation Types

• Discontinuous innovation: revolutionary new ideas, introducing new markets or industries.
• Dynamically continuous innovation: significant product changes, enhancing existing products or creating new ones.
• Continuous innovation: slight modifications, improving existing products.
• Knockoff innovation: copycat versions of products, mimicking existing offerings.

Product Development Process

• Stages of product development: idea generation, idea screening, analysis, development, testing, and commercialization.
• These stages must be completed in order to avoid wasting resources on a poorly performing product.

Product Definition and Classifications

• A product or service is an offering by an organization to satisfy consumer needs and wants, comprising the benefit, core product, and augmentations.
• Products are classified as either consumer products or business products, based on their intended users.

Consumer Product Classifications

• Convenience products: frequently purchased, easily accessible, and affordable.
• Shopping products: comparison-shopped, considered purchases, and often evaluated on factors like quality, price, and style.
• Specialty products: unique, high-value, and often sought out by consumers.
• Unsought products: unknown or unthought of by consumers, often requiring education or awareness.

Business Product Classifications

• Installations: capital goods, such as buildings and heavy machinery.
• Accessories: non-capital goods that support or maintain installations.
• MROs (Maintenance, Repair, and Operating) supplies: goods used to maintain or support business operations.
• Raw materials: unprocessed goods used in production.
• Processed/component materials: transformed or manufactured goods used in production.
• Business services: intangible offerings, such as consulting and logistics.

Product Differentiation

• Elements of product differentiation: quality, features and benefits, product lines, product mix, branding, and packaging.

Innovation Types

• Discontinuous innovation: revolutionary new ideas, introducing new markets or industries.
• Dynamically continuous innovation: significant product changes, enhancing existing products or creating new ones.
• Continuous innovation: slight modifications, improving existing products.
• Knockoff innovation: copycat versions of products, mimicking existing offerings.

Product Development Process

• Stages of product development: idea generation, idea screening, analysis, development, testing, and commercialization.
• These stages must be completed in order to avoid wasting resources on a poorly performing product.

This quiz covers the characteristics and classifications of products, including consumer and business classifications, and the elements of product differentiation.