Page 65 - EBOOK DPM 10013 POM-FINAL 25.10.2021

5.3 Consumer and Business Product Classification

Product and service classification is critical to business since it is one of the variables

used to determine the strategies required to move them through the marketing system.
Consumer and business products are the two major categories.

Table 5.3: Definition of consumer products and business product

Products purchased to meet personal and family needs/consumption.

Consumer products Consumer goods are items that are bought for personal, family, or

home usage. Convenience products, shopping products, speciality

products, and unsought products are sometimes divided into four
types based on consumer purchasing habits.

Business products are goods and services that businesses buy in order

to manufacture their own goods or run their businesses. Business
Business product function rather than client purchasing habits. Installations, ancillary
products, unlike consumer items, are classed based on their intended

equipment, raw materials, component parts and processed materials,
maintenance, repair, and operating supplies, and business services

are the six subcategories of these products.

Figure 5.3: Product Classification

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