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Classifying Business Goods

For the online reputation management New York company being able to have an understanding business goods and services may be capital items because they are long lived and expensive is important. Other less costly and quickly consumed goods that businesses purchase are expensive items. Services fall under the same categories as tangible products. Since consumer products are classified by how consumers buy them, business products are classified by their basis characteristics and by how they are used. Installations are major capital items including heavy equipment and machinery, new factories, and custom made equipment. The accessory equipment includes less expensive and shorter lived capital items than installations, and involves fewer decision makers. The component parts and materials become part of a final product. The raw materials are farm and natural products used in producing final products and the supplies are expense items used in a firm’s daily operations that do not become part of the final product.

When classifying services, services fall under the same categories as products like convenience, shopping and specialty which are all tangible goods. Services are different from goods since they are intangible, perishable, difficult to standardize since they are customized to each customer’s needs, and the service is inseparable from the provider. A product is known as a bundle of physical, service and symbolic attributes. The marketing strategy implications involve business to business where there is a greater emphasis on personal selling for installations and many component parts, and a concentration on quality and customer service. The producers of installations and component parts may involve customers in new product development and the advertising is more commonly used to sell supplies and accessory equipment. The producers if supplies and accessory equipment place a greater emphasis on competitive pricing strategies. Each group of products requires a different marketing strategy and the product classification serves as a powerful tool in developing a marketing strategy.