Product Classification and Characteristics

Study Notes

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.

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.

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.

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

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.

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.

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.

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.

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.

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

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.

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.