Product classification, Principles of Marketing Video Lecture | Principles of Marketing - B Com

Ans. Product classification in marketing refers to the process of categorizing products based on various characteristics such as their function, price, target market, and physical attributes. This classification helps marketers in better understanding and managing their product portfolio, as well as developing effective marketing strategies for each category.

Ans. Product classification is important in marketing for several reasons. Firstly, it helps marketers in identifying the target market for each product category, allowing them to tailor their marketing efforts accordingly. Secondly, it aids in determining pricing strategies, as different product categories may have different price points. Additionally, product classification assists in managing the product life cycle and making decisions regarding product development and innovation.

Ans. There are various types of product classification used in marketing. Some common types include: - Consumer products classification: This categorizes products based on consumer buying behavior, such as convenience products, shopping products, specialty products, and unsought products. - Industrial products classification: This classifies products based on their use in industrial or business settings, including materials and parts, capital items, and supplies and services. - Product classification by price: This categorizes products based on their price range, such as low-end, mid-range, and high-end products. - Product classification by function: This classifies products based on their primary function or purpose, such as cleaning products, health products, electronic products, etc. - Product classification by physical attributes: This categorizes products based on their physical characteristics, such as size, color, shape, and design.

Ans. Product classification plays a crucial role in marketing strategy development. It helps marketers in identifying target markets for different product categories, allowing them to tailor their marketing messages and channels accordingly. For example, a company selling luxury watches would have a different marketing strategy compared to a company selling affordable fashion watches. Product classification also assists in determining pricing strategies, as different product categories may have different pricing considerations. Moreover, it helps in managing the product life cycle by identifying which products require further development or discontinuation.

Ans. To effectively implement product classification in marketing efforts, marketers should follow these steps: 1. Analyze the product portfolio: Evaluate the existing products in terms of their characteristics, target markets, and competitive landscape. 2. Identify relevant classification criteria: Determine the classification criteria that are most relevant and useful for the specific industry or market. This could include factors like customer behavior, price range, function, or physical attributes. 3. Categorize the products: Classify the products into different categories based on the chosen criteria. This can be done through market research, customer surveys, and analysis of sales data. 4. Develop tailored marketing strategies: Once products are classified, develop marketing strategies for each category, considering factors like target market, pricing, promotion, and distribution channels. 5. Continuously monitor and adapt: Regularly review the effectiveness of the product classification and marketing strategies, making adjustments as needed based on market trends, customer feedback, and competitive dynamics.