the tangible product is to fall into the error of “marketing myopia.”
Executives who are guilty of committing this error define their company's product too
narrowly, since they overemphasize the physical object itself.
The classic example of this mistake can be found in railroad passenger service.
Although no amount of product improvement could have staved off its decline, if the
industry had defined itself as being in the transportation business, rather than the
railroad business, it might still be profitable today.
In line with the marketing concept philosophy, a product can be defined as the sum of
the physical, psychological, and sociological satisfactions the buyer derives from
purchase, ownership, and consumption.
From this standpoint, products are customer-satisfying objects that include such things
as accessories, packaging, and service.
B. Product Classification
A product classification scheme can be useful to the marketing manager as an
analytical device to assist in planning marketing strategy and programs.
In general, products are classified according to two basic criteria:
oEnd use or market
oDegree of processing or physical transformation
Agricultural products and raw materials
oThese are goods grown or extracted from the land or sea, such as iron ore, wheat,
oIn general, these products are fairly homogeneous, sold in large volume, and
have low value per unit or in bulk weight.
oSuch products are purchased by business firms for the purpose of producing
other goods or for running the business.
oThis category includes the following:
Raw materials and semifinished goods
Major and minor equipment, such as basic machinery, tools, and other
Parts or components, which become an integral element of some other
Supplies or items used to operate the business that do not become part of
the final product
oConsumer goods can be divided into three classes:
Convenience goods, such as food, which are purchased frequently with