Products that are bought by individuals or households for personal use Show
What are Consumer Products?Consumer products, also referred to as final goods, are products that are bought by individuals or households for personal use. In other words, consumer products are goods that are bought for consumption by the average consumer. From a marketing perspective, there are four types of consumer products, each with different marketing considerations.  Types of consumer products
Convenience ProductsConvenience products are bought the most frequently by consumers. They are bought immediately and without great comparison between other options. Convenience products are typically low-priced, not-differentiated among other products, and placed in locations where consumers can easily purchase them. The products are widely distributed, require mass promotion, and are placed in convenient locations. Sugar, laundry detergent, pencils, pens, and paper are all examples of convenience products. Characteristics of Convenience Products
Shopping ProductsShopping products are bought less frequently by consumers. Consumers usually compare attributes of shopping products such as quality, price, and style between other products. Therefore, shopping products are more carefully compared against, and consumers spend considerably more time, as opposed to convenience products, comparing alternatives. Shopping products require personal selling and advertising and are located in fewer outlets (compared to convenience products) and selectively distributed. Airline tickets, furniture, electronics, clothing, and phones are all examples of shopping products. Characteristics of Shopping Products
Specialty ProductsSpecialty products are products with unique characteristics or brand identification. Consumers of such products are willing to exert special effort to purchase specialty products. Specialty products are typically high priced, and buyers do not use much time to compare against other products. Rather, buyers typically spend more effort in buying specialty products compared to other types of products. Take, for example, a Ferrari (a specialty product). Purchasers of a Ferrari would need to spend considerable effort sourcing the car. Specialty products require targeted promotions with exclusive distribution; they are found in select places. Sports cars, designer clothing, exotic perfumes, luxury watches, and famous paintings are all examples of specialty products. Characteristics of Shopping Products
Unsought ProductsUnsought products are products that consumers do not normally buy or would not consider buying under normal circumstances. Consumers of unsought products typically do not think about these products until they need them. The price of unsought products varies. As unsought products are not conventionally thought of by consumers, they require aggressive advertising and personal selling. Diamond rings, pre-planned funeral services, and life insurance are all examples of unsought products. Characteristics of Shopping Products
Importance of Understanding the Types of Consumer ProductsUnderstanding whether products are convenience, shopping, specialty, or unsought is very important. As noted above, each type requires different marketing efforts. For example, it would not make sense to expend considerable marketing efforts on sugar. There is little differentiation between different brands of sugars and spending money on advertising would not play a role in changing consumer perception. On the other hand, unsought products would require considerable marketing efforts. As a consumer, purchasing life insurance is not top-of-mind; consumers do not normally think about it. Therefore, considerable marketing and advertising efforts are required to make unsought products known and to warrant a purchase by consumers. Additional ResourcesThank you for reading CFI’s guide on Consumer Products. To keep learning and advancing your career, the following CFI resources will be helpful:
What refers to the availability of the product to the customer at the desired time and location?Promotion includes many different activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products. Place refers to the availability of the product to the customer at the desired time and location.
Which type of utility is created when a company makes products available where consumers want them?Place utility involves making products or services available in locations that allow consumers to easily access them.
Why is it important to begin establishing your personal brand while you are in college?Personal branding can also benefit you as you pursue your career goals. It can make it easier for you to explain your value to a potential employer and while networking, developing stronger connections as people begin to connect your name and face with your brand messaging.
What is the term that refers to adding value to a product by making it more useful?The functions of marketing add value to a product. they make it more useful. The added value in economic terms is call utility.
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