Question

Name the types of consumer products, explain the difference between them. Name a product for each and explain how the type influences the distribution and promotion strategy.

Answer 1

Consumer Products: Consumer products are those products that are ready to be bought by the customers i.e. these are final products that are manufactured for immediate use by the customers.

The various types of consumer products along with their distribution and promotion strategies are as follows:

1. Convenience Products

These types of products are most frequently bought products by the customers. These products are low priced goods and products that usually fulfills the daily needs of the consumers. These products are bought immediately without much comparison and efforts (i.e. these products are readily available to the customers whenever they want).

Example: Newspaper & magazines, food, drinks, detergents, sugar, etc.

Distribution Strategy: The distribution of these types of products is widespread distribution and these products are also available to the customers at convenient places/locations. These products can be found everywhere in the market.

Promotion Strategy: The promotion strategy for these types of products is Mass promotion and brand recognition. Discounts, in-store product promotion and online advertising to reach a larger population are usually done to gain more market share.

2. Shopping Products:

These types of products are less frequently purchased by the consumers and are usually priced higher than the convenience products (i.e. shopping products are medium priced products). These types of products are compared on attributes such as price, quality, and trend etc, before buying by the consumers. Thus customer take more efforts and time before buying the product.

Example: furniture, television, smartphones, clothing, computer, airline bookings.

Distribution Strategy: These types of products are usually available at selective outlets only. As these products are bought in less frequency and quantity that why companies take care of the customers carefully.

Promotion Strategy: As less customers buy these products so there is selective promotion of these types of products. Advertising and personal selling strategy is usually followed by the consumers.

3. Speciality Products

These products are bought much less frequently by the customers as compared to convenient and speciality products. These types of products are bought by less number of consumers. These products have special attributes and characteristics. These products have a specific brand identity and only significant group of customers is interested in buying these products. These products are priced higher than Speciality products.

Example: Expensive cars, high end photographic equipments, special jewellery, special athletic equipments.

Distribution Strategy: Exclusive distribution in only one, two or few outlets is the strategy followed by the company because these products are high priced products and their target customer are less so the companies want to show their products as exclusive and special.

Promotion Strategy: More careful, narrow targeted promotion is usually done by the companies. The companies selling these products also maintain their brand value to keep themselves competitive in the market.

4. Unsought Products:

These types of products are usually not bought easily by the customers. These products are generally unknown to the customers or the customers don't buy them until high need of these products arises. Customers are very less interesting in these products. The price and purchase frequency of these products varies from product to product.

Example: Life insurance, funeral insurance, unpredictable treatments, etc.

Distribution Strategy: The distribution strategy of these products varies from product to product and company to company.

Promotion Strategy: Personal selling Promotion strategy is followed by the companies and they do aggressive advertising so that customer know and get interesting in buying these products also.