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Shopping products are purchased only after the buyer compares the various products
and brands available through different retailers before making a deliberate buying
decision. These products are usually of higher value than convenience goods, bought
less frequently, and are durable. Price, quality, style, and color are typically
factors in the buying decision. Televisions, computers, lawn mowers, bedding, and
appliances are all examples of shopping products.
Because customers are going to shop for these products, a fundamental strategy in
establishing stores that specialize in shopping products is to locate near similar
stores in active shopping areas. Promotion for shopping products is often done
cooperatively with the manufacturers and frequently includes the heavy use of
advertising in local media, including newspapers, radio, and television.
Specialty Products
Specialty products are items that consumers seek out because of their unique
characteristics or brand identification. Buyers know exactly what they want and are
willing to exert considerable effort to obtain it. These products are usually, but
not necessarily, of high value. This category includes both durable and non-durable
products. Specialty products differ from shopping products 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.
Unsought Products
Unsought products are those products that consumers are either unaware of or have
little interest in actively pursuing. Examples are new innovations, life insurance,
and preplanned funeral services. Because of the lack of awareness of these products
or the need for them, heavy promotion is often required.
BUSINESS PRODUCTS
Business products are products and services that companies purchase to produce
their own products or to operate their business. Unlike consumer products, business
products are classified on the basis of their use rather than customer buying
habits. These products are divided into six subcategories: installations; accessory
equipment; raw materials; component parts and processed materials; maintenance,
repair, and operating supplies; and business services.
Installations
Installations are major capital items that are typically used directly in the
production process of products. 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 scan machines, are built to a standard design but
can be modified to meet individual requirements.
Accessory Equipment
Products that fall into the subcategory of accessory equipment 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.
Raw Materials
Raw materials are products that are purchased in their raw state for the purpose of
processing them into consumer or business products. 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, and because raw materials are
ordinarily sold in large quantities, makes personal selling the principal marketing
approach for these goods.
Buyers of MRO 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 advertising, particularly in the form of
catalogs, to business buyers. When large orders are at stake, sales representatives
may be used.
Business Services
Business services refer to the services purchased by companies to assist in the
operation of the firm. They include financial, marketing research, promotional,
legal, lawn care, and janitorial services. The decision to hire an outside business
to perform needed services is often predicated on how frequently the service is
needed, the specialized knowledge required, and the relative costs of providing the
service internally versus contracting with an outside firm.
bibliography
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Hoffman, K. Douglass (2006). Marketing principles and best practices (3rd ed.).
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Kotler, Philip, and Armstrong, Gary (2006). Principles of marketing (11th ed.).
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Pride, William M., and Ferrell, O. C. (2006). Marketing concepts and strategies.
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Thomas R. Baird
Earl C. Meyer