Jesper Sørensen: How Do You Define A New Product Category?
Why is product category marketing important?
Product category marketing is crucial for assisting marketers in determining how to market specific goods in order to satisfy consumer expectations. Product category marketing can make a brand stand out from rivals by becoming the first option consumers choose. Defining the advantages of your products and identifying your current and potential competitors are two additional advantages of product category marketing.
What is product category marketing?
Product category marketing is a tactical approach that concentrates on the best ways to market a collection of related products. Marketers employ this strategy to guide them in choosing the methods that will best market their goods and services. Products are frequently categorized according to how frequently customers use them. For instance, marketers might approach the promotion of a weekly purchase—like milk—differently from a one-time purchase—like a resort getaway package. Product categories group items with similar benefits and characteristics together.
What are the types of product categories in marketing?
Consumer product categories are frequently created by marketers based on consumer buying patterns. Marketers employ a variety of strategies to appeal to consumers because the buying process for products differs. The four main product categories in marketing include:
Convenience goods are products consumers purchase regularly. These are frequently inexpensive goods with little brand differentiation, like mouthwash. Since prices are comparable, consumers initially choose and stick with one brand. Additionally, they restrict their search for these products because they are comparable in terms of both price and quality.
Building brand recognition is crucial because consumers frequently stick with convenience products once they’ve chosen a brand. One way to do this is by having wide-scale promotions. Strategic placement can also help encourage purchases of your items. For instance, positioning your product near the checkout area or on the end cap of a grocery store can encourage impulsive purchases.
Compared to convenience products, shopping goods require more research before being purchased. This is due to the fact that consumers rarely buy these items. Additionally, they are frequently more expensive items, such as a house or an electronic gadget. A person spends more time making decisions and comparing businesses and prices to find one that best suits their needs because purchasing goods has a greater impact on their life. For instance, before choosing which house to buy, a buyer might frequently browse online for available homes and visit a number of open houses.
Offer products with enticing values to aid consumers in their decision-making For example, it might be better quality than rivals or similar quality at a lower price. When promoting your goods, pay attention to how they differ from those of your rivals.
Specialty goods are distinctive products with a devoted following of buyers. Instead of comparing brands, these followers concentrate on locating the specific product they’re looking for. A specific model of car would be an illustration of a specialty good. Specialty products are frequently exclusive and available to consumers only in a select number of stores.
Create innovative works in order to draw consumers to your specialty products. During the promotion, highlight what your product can do. Also, include what sort of status a buyer would obtain. For instance, purchasing a sports car may indicate to potential customers that they are daring and enjoy traveling quickly. Specialty goods require targeted promotion to reach your loyal followers.
Unsought goods are products that consumers either don’t know much about or wouldn’t have considered purchasing. For instance, consumers don’t typically purchase light bulbs until they notice the one in their lamp is out of commission. Other unintended purchases include those made out of fear or concern for one’s safety, such as a carbon monoxide detector or life insurance.
Focus on reminding consumers that your product is available when marketing your unmet needs. Also, remind them to buy your products so they will be prepared for future situations. Here, you can persuade customers to buy your products by outlining the risks they run or the advantages of having them in an emergency, like having a generator when the power goes out.
Product category marketing examples
Following are some illustrations of product category marketing for various goods:
Convenience goods example
Since it is a common household item, the Spotless Cleaner laundry detergent company classifies its product as a convenience good. Spotless Cleaner concentrates on using mass distribution techniques when marketing their laundry detergent in order to reach the most people and broaden exposure. To achieve this, they produce a television commercial that informs viewers about the capabilities of their detergent and why it is superior to other laundry detergents.
Shopping goods example
Flat-screen televisions, which are sold by Electronics Escape and are more expensive and less frequently bought by consumers than convenience goods, are categorized as shopping goods. Electronics Escape emphasizes the features of their televisions in their marketing strategy. They also highlight its high quality to appeal to customers who desire a product that endures and is pricey.
Specialty goods example
In New York City, Lillys Boutique sells upscale clothing to working professionals. The boutiques would classify their product category as specialty goods because their products are luxury goods. When advertising, Lillys Boutique focuses on reaching working professionals and highlights the status customers acquire by donning their clothes.
Unsought goods example
Ginas Gadgets sells gadgets that make it easier for people to carry out daily tasks. They concentrate on selling an electric can opener with a foldable strainer that can be flipped down to allow for can drainage. This item would be considered an unsought good because most people wouldn’t think to purchase it. Ginas Gadgets would try to convince customers to buy this new item on impulse by emphasizing how much time it would save them in the kitchen.
What are 3 product categories?
A group of related products that are similar to one another constitutes a product category. Product category marketing is concerned with promoting particular categories to satisfy consumer demand. The organization and grouping of your product categories should be determined by your unique offerings and customer personas.
What are the 4 new product categories?
There are three main categories of products: consumer goods, industrial goods, and services. There are a number of useful ways of classifying products.