Which Type Of Product You Are Going To Choose?
Before planning for the overall execution of the business, the first plan what and how your product should be. The design, form, features of the product plays a vital role in the buying decision of the customers.
So how your product should be?
It must possess the following characteristics to outstand in the market.
Durability & Tangibility: products fall into 3 groups.
Non- Durable Goods: these are goods that are consumed in one or a few uses and hence are purchased frequently. If you are holding one such product make sure they are available in many locations and the promotional strategy should be high to build preference.
Durable Goods: these are goods that survive many uses. On adopting this product, make sure you have a strong personal selling and service team with you, though they might provide you with a high margin.
Services: these days services are the booming and profitable sectors in the market. They are intangible but a potential seller has to make these services even tangible to the eyes of the buyer. That is when he succeeds, and that shows all the present service sectors hold their names in the competitive market.
Consumer Goods: These are further classified into
Convenience goods: these are goods that are bought ‘Then And There’, whenever the consumer feels like purchasing one, he buys it since it is easily available and can be bought with minimum effect. The area where it is placed in the shelf plays a vital role.
Shopping Goods: the buyer compared the products based on suitability, quality, and style. They are further classified into Homogeneous Goods and Heterogeneous Goods.
Homogenous Shopping Goods are similar in quality but differ in price.
Heterogeneous Shopping Goods differ in product features and services which would be of higher concern than the price to their buyers. The seller of heterogeneous shopping goods should have a higher concern to satisfy and cater to the needs and tastes of the customers. He should also have a strong sales and marketing team to explain the features and update the customers about it.
Specialty Goods: The sale of these depends usually on how well the brand itself has acquired its name and has been recognized by the people in the market. These products are usually luxury in nature. When a buyer decides to own a specialty good, he for sure will travel to any miles of distance to own the product. The location of its presence need not be at many places, but all it needs is to be in the right place.
3.Industrial Goods: They are further classified into
Materials & Parts: Materials represent the raw materials, which are the inputs to produce a product. While the parts are those like screw, nuts and other parts.
Capital Items: They facilitate in developing and managing the finished products. These include installations and equipment. Installations represent large machines and heavy equipment which is directly purchased from the producer and the producer must be willing to cater to the design and specification of the customer. It doesn’t require much advertisement, but a salesperson who has knowledge over the produce he personally sells is important.
Equipment includes portable factory tools. The competition is higher and it requires effective advertising as well as the sales force.