CLASSIFICATION OF PRODUCT:

NAME.: KHAN MOHD FAHAD

S.Y.B.M.S. FINANCE DIV.:A R.NO.:20
COLLEGE ID.: 118016893
MEANING OF PRODUCT CLASSIFICATION:

• Product classification is a marketing and business term that

categorizes products based on how and why consumers purchase
them. These distinctions can change the way companies market
their products and affect other aspects of sales, such as pricing
and distribution. If you're a marketing or sales professional, it's
especially important for you to understand product classifications
and their effects. In this article, we explain what product
classification is, the four types of products and why professionals
classify products.
 DIFFERENT TYPES OF PRODUCT
CLASSIFICATION:
●
●Convenience Products :
• Convenience products describe the items and services that customers purchase on a
regular basis with little thought. Typically, consumers use the same or similar brands for
convenience products unless they are compelled to do otherwise through an
advertisement or availability. For example, dish soap is a convenience product. 
● Informed Purchases :
Informed purchases, also known as shopping goods, refers to the products and services that
consumers don't make often and usually perform research before doing so. These types of
products can range from more expensive items, such as a house or car, or more regular
purchases, such as a pair of shoes.
• ● Specialty Items :
• Specialty items are unique products that marketers can advertise to a certain
demographic of consumers without worrying about their competition. These
products can include innovative goods that are one of a kind on the market or
brand-name products that have a loyal fan base.
• ● Mandatory Purchases :
• Mandatory purchases, also known as unsought goods, are products that
consumers buy out of necessity rather than desire. Typically, these products
are household or safety items that customers don't feel excited to buy, such as
batteries, smoke detectors, air filters and cleaning products. Sometimes,
consumers may buy these items out of fear or an obligatory response, such as
buying a fire extinguisher or a car maintenance membership just in case of an
emergency.
 .Q.WHY CLASSIFY PRODUCTS :
• Professionals classify products for a variety of reasons. Product classifications can contribute to many
decisions within the life cycle of a product, including the way companies market it, its price, the type
of consumer who buys it and how high the demand for the product is. Here are some other reasons
why professionals classify products:
• ● Marketing :
• As previously mentioned, the techniques marketing teams may use to advertise a product often
depends on its classification type. Product classification can change a marketing budget and the focus
of a campaign. Instead, they may allocate their resources to brand management.
● Pricing :
The type of classification a product receives can change the way retailers and distributors price the
item. Convenience items and mandatory purchases are often more likely to be cheaper than a specialty
item or informed purchase, as consumers value these products' availability and necessity. Convenience
and mandatory items are also often more regular in nature and include products with lower price
points, such as food. 
● Demand :
The demand for a product often varies depending on the product classification. Generally, consumers
buy mandatory and convenience products more often than specialty and informed purchases. This
affects how companies manufacture these items and how marketing teams advertise them. Because
consumers may need more encouragement to make purchases that they need less frequently, companies
selling specialty and informed purchase products may need to allocate more time and money to market
their products.

● Invention :
When deciding which products to produce, a company might consider product classifications.
Because the marketing efforts for each type of product varies, a company may aim to specialize in
one type of advertisement, which limits which products they make. The demand of a product, which
has a role in how professionals create product classifications, can also influence a company's
decision regarding the invention of a product.
 CLASSIFICATION OF OREO BISCUITS :

• Oreo is a brand of creme-filled sandwich cookie, consisting of two (usually chocolate) wafers with a
sweet crème filling, owned by Mondelez International. Introduced on March 6, 1912, Oreo is the best-
selling cookie brand in the United States, where it is sold under the Nabisco brand, and in the twenty-
first century it became the number one selling cookie globally. As of 2018, the version sold in the U.S.
is made by the Nabisco division of Mondelez International. Oreo cookies are available in over one
hundred countries.[2] Many varieties of Oreo cookies have been produced, and limited-edition runs
have become popular in the 21st century.
Oreo cookies are available in over one hundred countries.[2] Many varieties of Oreo cookies have
been produced, and limited-edition runs have become popular in the 21st century. OREO cookies
have always been a part of my life. In elementary school, finding that my mom had packed a few
in my lunch was an occasion worth celebrating. Later in life, my love affair with OREOs really
began in earnest when I started backpacking, packing them along as a delicious source of
lightweight energy.
I’m sure many of you have a similar relationship with them. OREOs unite children, adults, vegans,
couch potatoes, athletes, and stoners. They’re truly a cookie for the people. The only thing that
seems to divide us is the debate on whether the Original or Double Stuf are tastier. I’ve always
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