Marketing Consumer And Industrial Goods

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Transcript of Marketing Consumer And Industrial Goods

Page 1: Marketing Consumer And  Industrial  Goods
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- Refer to the products or services for personnel or household use.

- Are for the use of the ultimate consumer. They are usually in forms that do not need further commercial processing.

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- CLASSIFICATION BASED ON RATE OF CONSUMPTION AND PRODUCT’S LENGTH OF LIFE

- TRADITIONAL CLASSIFICATION- “CHARACTERISTIC OF GOODS” THEORY

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- This classification distinguishes three categories of goods: DURABLE GOODS, NON DURABLE GOODS and SERVICES.

1.DURABLE GOODS - are physical, tangible products which have extended period of use, that is, they survive many uses

Example: Refrigerator, automobiles and other home appliances

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NON-DURABLE GOODS – are physical, tangible products which are normally consumed in one or short period of use.

Includes … soap, food, paper, shoes, etc.

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SERVICES – are intangible products such as activities, benefits, satisfaction, and behaviors which are for sale.

Examples are … auto repairs, haircuts, entertainment, and transportations.

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-this classification is referred to as the “traditional” classification, in which goods are categorized as CONVENIENCE, SHOPPING, SPECIALTY, and UNSOUGHT.

CONVENIENCE GOODS - are bought with the minimum of effort and shopping time. They are bought usually on the basis of habit, hence, buying decision is made quickly and easily. They are also heavily advertised and are found in most retail stores.

Examples: Grocery items, cigarettes, candies, newspapers, and medicines.

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CONVENIENCE GOOD are Subdivided into 3 types: STAPLES, IMPULSE GOODS and EMERGENCY GOODS.

STAPLE food and drug items are purchased and used regularly and frequently, often by habit, without much thought beyond the initial decision to buy them.

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IMPULSE GOODS are bought as unplanned purchases, that is, the customer decides to buy at the spur of the moment. Unplanned purchasing behavior is called “IMPULSE BUYING”

two types of impulse buying:- REMINDER BUYING is when a

shopper sees a product and remembers a need for it.

- SUGGESTION BUYING is when the shopper sees a product displayed and visualizes a need for it.

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EMERGENCY GOODS are purchased less frequently and only when the need is urgent.

Examples: Medicines, umbrellas, batteries, and ambulance services.

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SHOPPING GOODS- Are bought only after comparison shopping, during

which the consumer evaluates alternative products on the basis of suitability, quality, style and price.

Shopping Goods may be Homogeneous and Heterogeneous

HOMOGENEOUS shopping goods- Are products that the customer sees as similar or

standardized except on one variable, price.

HETEROGENEOUS shopping goods - Are products that consumers see as non-standardized,

hence, are compared for suitability, style and quality.

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SPECIALTY GOODS- those which consumers perceive as significant or

unique, and thus, they exhibit unusual shopping-buying behavior.

UNSOUGHT GOODS- Goods that customers do not yet want or know they

can buy, therefore, are not searched for at all.- 2 types of unsought goods

- NEW UNSOUGHT GOODS are product offering really new concepts that potential customer are not aware of.

- REGULAR UNSOUGHT GOODS are products which normally customers do not look for.

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- Advanced by Leo V. Aspinwall- An attempt to make the assumptions

about convenience, shopping and specialty goods more explicit and more exact.

- Provides a useful expansion of the traditional 4 – way classification of goods, but is still limited as a pragmatic marketing tool.

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- Are those goods used for resale, or in producing other go or in rendering services.

- Intended for use - In making other goods.- In conducting business.- In providing benefit.

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- Raw Materials- Installations- Accessory Equipment- Component Parts and Materials- Supplies; and- Services

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- Are goods that become part of the product but have not undergone any more processing than what is needed for safe, convenient, economical transport and handling.

2 types of raw materials- FARM PRODUCTS such as

poultry, eggs, vegetables, fruits.- NATURAL PRODUCTS such

as lumber, fish , oil, minerals.

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- Large and expensive items that do not become part of the final product but are expended, depleted, or worn out during the years of use.

2 classes:- buildings and land rights- major equipment such as

computers, tractors, and generators.

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- Does not become a part of the final product, but is less expensive than installation, more standardized, and shorter lived.

Examples: writers, cash registers, desks and small power tools.

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- “convenience goods” of the industrial market.

- Short – lived- Low-priced items

3 categories of supplies - Maintenance - Repair - Operating Supplies

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- Become part of the finished product.- Undergo more processing than raw material

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- A non-physical offerings that are valuable in supporting the operations of a firm.

example:security, cleaning,

engineering, advertising, consulting, legal, and others.

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-principal factors that motivate users 1. cost2. product quality3. post – sale services4. seller reliability5. terms of sale6. ease and speed of delivery7. safety8. reciprocity9. emotional considerations10. versatili