Consumer goods and services are collectively called consumer products. They’re also called the final goods that are bought by the household for their personal use. A product can either be a business or a consumer product. The division is made in terms of the end-user. If a business is the end-user is, then it is called a business product; otherwise, it’s called a consumer product. However, sometimes a product can be regarded as a business or consumer, for example, a stapler or a pen. Depending upon the marketing strategies, these consumer products can be of four different types. They are:
Consumer products that do not involve much thought in buying are regarded as convenience products. They’re convenient for the customers to buy them anywhere at any time. For example, you’re on a picnic and feel like having a soda. What do you do? Rush to the nearest store and buy a can of soda. It does not require much of a thought process. Products like soaps, detergents, hairbrush, toothpaste etc. are considered as convenience products, and the company concentrates on huge sales instead of advertisements and marketing of these products since their prices are less.
- They’re purchased frequently
- Easily available
- Available at low prices
- Not compared with other products
Shopping products, on the contrary, are the products that require though and comparison before buying them.
- Homogenous products: These are the ones that include a comparison between similar products and usually the buyer settles for the more affordable option. For example, if you have to choose between seeds of apple with the same characteristics and growing conditions, then you compare the prices of both and go for the more affordable one.
- Heterogeneous products: On the other hand, these products do not involve much of comparison as the products are entirely different and cannot be substituted to one another. If you want to buy a computer, then you either choose between a PC or a Mac. You cannot replace one another as their functionalities are different, although the purpose is the same.
Specialty products are the ones that have unique brand identification and name. The customers of these products are high-priced and high-end buyers that do not find the need to compare between products. For instance, if you decide to buy a Ferrari, then you do invest some quality time in understanding the product and then making a decision.
- They have unique and high-end branding
- Purchased less frequently
- Are at higher prices
- Available at selected places only.
- Are not compared with other products.
These products are not purchased until the need of the hour and require high advertising. For example, diamond rings, engagement rings, funeral services, wedding halls and life insurances.
- They’re not on top of customer’s minds
- Extensively advertised and marketed products
Importance of understanding Consumer products
Each type of product requires a different marketing and advertising approach. Hence from the marketing point of view, it is essential to understand the difference between these products with the ability to segregate them at the need of the hour.