lI. Classifying Products End Use markets 1. Agricultural Products Raw Materials 2. Organizational goods 3. Consumer Goods
II. Classifying Products End Use Markets: 1. Agricultural Products & Raw Materials 2. Organizational Goods 3. Consumer Goods
Agricultural Raw Materials For example: Ingredients(zinc, pig iron, cotton) Rather Homogeneous Sold in bulk Low value per unit
Agricultural & Raw Materials • For example: Ingredients (zinc, pig iron, cotton) – Rather Homogeneous – Sold in bulk – Low value per unit
Organizational Products Manufactured materials and component parts e.g., electrical resistors, screws, electric motors Process materials: used in production, not part of finished product e.g. chemicals Installations: primary production equipment and major capital items e.g. buildings, computer hardware, assembly lines Accessory equipment e.g. word processors, trucks Operating Supplies: facilitate routine operations e.g. writing paper, hand tools Services: work provided by others e.g. maintenance, repairs
Organizational Products • Manufactured materials and component parts: – e.g., electrical resistors, screws, electric motors • Process materials: used in production, not part of finished product – e.g. chemicals • Installations: primary production equipment and major capital items – e.g. buildings, computer hardware, assembly lines • Accessory equipment – e.g. word processors, trucks • Operating Supplies: facilitate routine operations – e.g. writing paper, hand tools • Services: work provided by others – e.g. maintenance, repairs
Consumer goods 1. Based on Durability/Tangibility Classification SHOVEL RESTAURANT INSURANCE GOOD GOOD/SERVICE SERVICE
Consumer Goods 1. Based on Durability/Tangibility Classification SHOVEL RESTAURANT RESTAURANT INSURANCE INSURANCE GOOD GOOD/SERVICE SERVICE
Consumer goods 2. Based on CoNSUMERS Interest Convenience Shopping Specialt Products Products Products 8 LoW Willingness to Expend Effort for Product HIGH
Consumer Goods 2. Based on CONSUMER ’S Interest Convenience Products Shopping Products Specialty Products LOW Willingness to Expend Effort for Product Willingness to Expend Effort for Product HIGH