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 Consumer Product MarketingÊ Ê
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 Consumer ProductÊ Ê Ê  Ê Ê Ê Ê Ê Ê Ê 
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Consumer goods are goods that are bought from retail stores for personal, family, or
household use. They are grouped into three subcategories on the basis of consumer buying
habits: convenience goods, shopping goods, and specialty goods.

Consumer goods can also be differentiated on the basis of durability. Durable goods are
products that have a long life, such as furniture and garden tools. Nondurable goods are those
that are quickly used up, or worn out, or that become outdated, such as food, school supplies,
and disposable cameras.

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Convenience goods are items that buyers want to buy with the least amount of effort, that is,
as conveniently as possible. Most are nondurable goods of low value that are frequently
purchased in small quantities. These goods can be further divided into two subcategories:
staple and impulse items.

Staple convenience goods are basic items that buyers plan to buy before they enter a store,
and include milk, bread, and toilet paper. Impulse items are other convenience goods that are
purchased without prior planning, such as candy bars, soft drinks, and tabloid newspapers.

Since convenience goods are not actually sought out by consumers, producers attempt to get
as wide a distribution as possible through wholesalers. To extend the distribution, these items
are also frequently made available through vending machines in offices, factories, schools,
and other settings. Within stores, they are placed at checkout stands and other high-traffic
areas.

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Shopping goods are purchased only after the buyer compares the products of more than one
store or looks at more than one assortment of goods before making a deliberate buying
decision. These goods are usually of higher value than convenience goods, bought
infrequently, and are durable. Price, quality, style, and color are typically factors in the
buying decision. Televisions, computers, lawnmowers, bedding, and camping equipment are
all examples of shopping goods.

Because customers are going to shop for these goods, a fundamental strategy in establishing
stores that specialize in them is to locate near similar stores in active shopping areas. Ongoing
strategies for marketing shopping goods include the heavy use of advertising in local media,
including newspapers, radio, and television. Advertising for shopping goods is often done
cooperatively with the manufacturers of the goods.
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Specialty goods are items that are unique or unusual²at least in the mind of the buyer.
Buyers know exactly what they want and are willing to exert considerable effort to obtain it.
These goods are usually, but not necessarily, of high value, and they may or may not be
durable goods. They differ from shopping goods primarily because price is not the chief
consideration. Often the attributes that make them unique are brand preference (e.g., a certain
make of automobile) or personal preference (e.g., a food dish prepared in a specific way).
Other items that fall into this category are wedding dresses, antiques, fine jewelry, and golf
clubs.

Producers and distributors of specialty goods prefer to place their goods only in selected retail
outlets. These outlets are chosen on the basis of their willingness and ability to provide a high
level of advertising and personal selling for the product. Consistency of image between the
product and the store is also a factor in selecting outlets.

The distinction among convenience, shopping, and specialty goods is not always clear. As
noted earlier, these classifications are based on consumers' buying habits. Consequently, a
given item may be a convenience good for one person, a shopping good for another, and a
specialty good for a third. For example, for a person who does not want to spend time
shopping, buying a pair of shoes might be a convenience purchase. In contrast, another
person might buy shoes only after considerable thought and comparison: in this instance, the
shoes are a shopping good. Still another individual who perhaps prefers a certain brand or has
an unusual size will buy individual shoes only from a specific retail location; for this buyer,
the shoes are a specialty good.


 
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Industrial goods are products that companies purchase to make other products, which they
then sell. Some are used directly in the production of the products for resale, and some are
used indirectly. Unlike consumer goods, industrial goods are classified on the basis of their
use rather than customer buying habits. These goods are divided into five subcategories:
installations, accessory equipment, raw materials, fabricated parts and materials, and
industrial supplies.

Industrial goods also carry designations related to their durability. Durable industrial goods
that cost large sums of money are referred to as capital items. Nondurable industrial goods
that are used up within a year are called expense items.

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 Installations are major capital items that are typically used directly in the production of
goods. Some installations, such as conveyor systems, robotics equipment, and machine tools,
are designed and built for specialized situations. Other installations, such as stamping
machines, large commercial ovens, and computerized axial tomography (CAT) scan
machines, are built to a standard design but can be modified to meet individual requirements.

The purchase of installations requires extensive research and careful decision making on the
part of the buyer. Manufacturers of installations can make their availability known through
advertising. However, actual sale of installations requires the technical knowledge and
assistance that can best be provided by personal selling.

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Goods that fall into the subcategory of accessory equipment are capital items that are less
expensive and have shorter lives than installations. Examples include hand tools, computers,
desk calculators, and forklifts. While some types of accessory equipment, such as hand tools,
are involved directly in the production process, most are only indirectly involved.

The relatively low unit value of accessory equipment, combined with a market made up of
buyers from several different types of businesses, dictates a broad marketing strategy. Sellers
rely heavily on advertisements in trade publications and mailings to purchasing agents and
other business buyers. When personal selling is needed, it is usually done by intermediaries,
such as wholesalers.

 
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Raw materials are products that are purchased in their raw state for the purpose of processing
them into consumer or industrial goods. Examples are iron ore, crude oil, diamonds, copper,
timber, wheat, and leather. Some (e.g., wheat) may be converted directly into another
consumer product (cereal). Others (e.g., timber) may be converted into an intermediate
product (lumber) to be resold for use in another industry (construction).

Most raw materials are graded according to quality so that there is some assurance of
consistency within each grade. There is, however, little difference between offerings within a
grade. Consequently, sales negotiations focus on price, delivery, and credit terms. This
negotiation plus the fact that raw materials are ordinarily sold in large quantities make
personal selling the principal marketing approach for these goods.

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Fabricated parts are items that are purchased to be placed in the final product without further
processing. Fabricated materials, on the other hand, require additional processing before
being placed in the end product. Many industries, including the auto industry, rely heavily on
fabricated parts. Automakers use such fabricated parts as batteries, sun roofs, windshields,
and spark plugs. They also use several fabricated materials, including steel and upholstery
fabric. As a matter of fact, many industries actually buy more fabricated items than raw
materials.

Buyers of fabricated parts and materials have well-defined specifications for their needs.
They may work closely with a company in designing the components or materials they
require, or they may invite bids from several companies. In either case, in order to be in a
position to get the business, personal contact must be maintained with the buyers over time.
Here again, personal selling is a key component in the marketing strategy.

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Industrial supplies are frequently purchased expense items. They contribute indirectly to the
production of final products or to the administration of the production process. Supplies
include computer paper, light bulbs, lubrication oil, cleaning supplies, and office supplies.

Buyers of industrial supplies do not spend a great deal of time on their purchasing decisions
unless they are ordering large quantities. As a result, companies marketing supplies place
their emphasis on advertising²particularly in the form of catalogues²to business buyers.
When large orders are at stake, sales representatives may be used.

It is not always clear whether a product is a consumer good or an industrial good. The key to
differentiating them is to identify the use the buyer intends to make of the good. Goods that
are in their final form, are ready to be consumed, and are bought to be resold to the final
consumer are classified as consumer goods. On the other hand, if they are bought by a
business for its own use, they are considered industrial goods. Some items, such as flour and
pick-up trucks, can fall into either classification, depending on how they are used. Flour
purchased by a supermarket for resale would be classified as a consumer good, but flour
purchased by a bakery to make pastries would be classified as an industrial good. A pickup
truck bought for personal use is a consumer good; if purchased to transport lawnmowers for a
lawn service, it is an industrial good.