Product Classification for Business Owners: Their Types and Their Benefits

Before customizing and developing your marketing and promotional strategy, your business needs to classify your product.

This process allows you to understand consumer behavior, distribution, and pricing, to successfully move forward in targeting the researched target market audience.

Understanding Product Classification

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Product classification is an organizational method that categorizes products based on consumer buying behavior, their price points, and their similarities to their competitor, an advertising guide that helps business owners identify their customers' specific demands, interests, and needs. 

Product classification is also important for the following reasons:

1. Assists in Marketing Processes‍

Product classification helps create effective marketing strategies. ‍

2. Simplifies Pricing‍

When product classification is defined it simplifies pricing.  

3. Supports Innovation‍

Product classification supports product innovation, enabling you to identify which products are the most popular among consumers, and streamlining their development process.

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Types of Product Classification

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Here are some types of product classifications that every business owner should be aware of:

1. Convenience Goods‍

Convenience goods are everyday necessities purchased by consumers who don’t hesitate to buy these goods as they are daily essentials. 

2. Shopping Goods‍

Shopping goods are items that consumers spend more time deliberating about, before purchasing, as they factor in the product's price and quality, before making a decision.

3. Specialty Goods‍

Specialty goods are typically marketed to a specific consumer segment. Products in this category are usually more expensive but have superior or long-lasting quality, such as electronics, jewelry, and vehicles.

4. Unsought Goods‍

Unsought goods are products that consumers rarely seek or purchase, such as batteries which consumers buy only when needed.

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It is important to note that unsought-for goods usually require more complex marketing efforts because they are typically not top-of-mind for consumers. 

Therefore, for unsought goods, it is essential to increase brand awareness to make consumers aware of the product’s existence, by providing detailed information about how the product differs from competitors, including quality and price point comparisons.

Those are the types and benefits of product classification for businesses. 

Once this classification is complete, a successful marketing strategy formula becomes easier. 

When your business is actively selling products to the market, use Youtap POS as a digital system to automatically record daily transactions. 

Additionally, this Digital POS Application comes equipped with advanced features that can make business operations more manageable, practical, and efficient.

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