Product and Brand Management

Product Classification Differentiation

by | Feb 5, 2022

Are you wondering how companies group their products and make them stand out in the market? This blog on product classification and differentiation covers the basics of product types and features, helping you understand how businesses differentiate themselves from their competitors.

When it comes to marketing a product, one of the most important aspects is product classification and differentiation. Businesses need to categorize their products and find ways to differentiate them from the competition. In this blog, we will discuss the different types of products and features that help set them apart.

Product Classification

There are several ways businesses can classify their products. Here are some of the most common methods:

Consumer vs. Industrial Products

One way to classify products is by distinguishing between consumer and industrial products. Consumer products are those that are intended for personal or household use, while industrial products are used in business operations.

Convenience, Shopping, and Specialty Products

Another common way to classify products is based on consumer behavior. Convenience products are those that consumers purchase frequently and with little thought, such as toothpaste or paper towels. Shopping products are those that consumers spend more time researching and comparing before making a purchase, such as a new phone or car. Finally, specialty products are those that have unique features and are purchased less frequently, such as luxury cars or high-end watches.

Product Hierarchy

Businesses can also classify products using a product hierarchy, which groups products based on their relationship to each other. At the top of the hierarchy are product families, followed by product lines, and finally individual products.

Product Differentiation

Once products are classified, businesses need to differentiate them from their competitors. Here are some common ways businesses differentiate their products:

Product Features

One way businesses can differentiate their products is by offering unique features. These can be functional features, such as the speed of a computer processor or the durability of a pair of shoes, or they can be aesthetic features, such as the color of a car or the design of a piece of furniture.

Product Quality

Another way businesses can differentiate their products is by offering higher quality than their competitors. This can be in terms of the materials used to make the product, the level of craftsmanship, or the durability of the product.

Branding

Branding is another key way businesses differentiate their products. A strong brand can make a product instantly recognizable and desirable to consumers.

Price

Finally, businesses can differentiate their products based on price. This can involve offering a lower price point than competitors or offering premium pricing for luxury products.

Conclusion

Product classification and differentiation are critical to marketing a product successfully. By understanding the different types of products and ways to differentiate them, businesses can set themselves apart from the competition and attract consumers to their products.

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Product and Brand Management

1 Product Management Basic Concepts

  1. Product Management – Meaning and Scope
  2. Product Management: An Overview
  3. What is a Product?
  4. Product Classification, Differentiation
  5. Product and Brand Relationships, Product and Brand Systems
  6. Product Planning
  7. Role and Responsibilities of a Product Manager

2 Product Life Cycle (PLC)

  1. Product Life cycles Implications of Product life cycle
  2. Product Life Cycle (PLC) an aid to Product Planning
  3. Operationalising the Product Life Cycle
  4. Product Life Cycle as a Guideline for Marketing Strategy
  5. Product Life Cycle as a Guideline for framing Market Share Strategy
  6. Summary of PLC Objectives, Characteristics and Strategies
  7. Evidence and Critique for the Life Cycle Concept
  8. The Diffusion of Innovation Theory – A Parallel theory

3 Product Line Decisions

  1. Product Line Analysis
  2. Product Line Extension
  3. The Disadvantages of Line Extension
  4. Factors Influencing Product Line Decisions
  5. Category Factors Influencing Product Line Decisions

4 Product Portfolio

  1. The Portfolio Concept
  2. The Logic of Portfolio Approach
  3. Types of Display Matrices
  4. The BCG Growth-Share Matrix
  5. GE’s Strategic Business Planning Grid
  6. Shell’s Directional Policy Matrix
  7. PIMS Model
  8. Arthur D Little Co. Matrix Model
  9. Hofer’s Market Evolution
  10. Utility of Display Matrices

5 Organizing for New Product Development

  1. Setting Responsibility for New Product Development
  2. Structural Units for New Product Development
  3. Function of the New Product Development Units

6 Generation, Screening and Development of New Product Ideas

  1. Innovation and the New Product Development Process
  2. Generation of New Product Ideas
  3. Sources of New Product Ideas
  4. Methods of Generating New Product Ideas
  5. Screening of New Product Ideas
  6. Criteria for Screening New Product Ideas
  7. Development of New Product Ideas

7 Concept Development Testing and Physical Development of the Product

  1. Introduction to Concept Development
  2. New Product Development
  3. Business plan: A tool to fetch financial assistance for new product development program

8 New Product Launch

  1. Types of New Products
  2. New Product Launch the Marketing Plan
  3. Defining and Selecting the Target Market
  4. Product Strategy and Positioning
  5. Pricing the New Product
  6. Promotion of the New Product

9 Branding Concepts and Evolution

  1. Branding
  2. Strategic Relevance of Branding
  3. Branding Policy Decisions
  4. Brand Name
  5. Brand Name Selection Process
  6. How to Build a Brand?
  7. Brand Image
  8. Branding of Commodities

10 Brand Equity

  1. The Concept of Brand Equity
  2. Measurements of Brand Equity
  3. Composite Measure of Brand Equity
  4. Customer Based Brand Equity
  5. How Brand Equity is created?
  6. Building Brand Equity

11 Brand Building Blocks: Identify, Image and Positioning

  1. Introduction to Brand Building
  2. Brand Building Blocks

12 Brand Architecture and Brand Extension

  1. Developing a Brand architecture strategy
  2. Brand Architecture guidelines
  3. Brand Portfolios
  4. Rationalizing the Brand Portfolio
  5. Brand Hierarchies
  6. Levels of Brand Hierarchy
  7. Brand Hierarchy Decisions
  8. Corporate Branding
  9. Brand Extensions
  10. Types of Brand Extension
  11. Advantages and Disadvantages of Brand Extension
  12. Launching a Brand Extension

13 Enhancing Brand Equity

  1. Brand foundation-authenticity and believability

14 Managing Brands Over Time and Across Geographies

  1. Expanding to International Markets
  2. Global Marketing: Standardized vs Customized Approach
  3. Planning the Global Marketing Strategy
  4. Factors Impacting Customization
  5. Developing the Global Branding Strategy
  6. Managing Brands Over Time
  7. Levers for Sustaining Brand Value
  8. Augmenting the Brand Offering
  9. The Pricing and Distribution Levers
  10. The Communication Lever

15 Measuring Brand Equity

  1. Measuring Elements of Brand Equity
  2. Frameworks for Brand Equity Measurement
  3. Brand Report Card
  4. Need for Brand Valuation
  5. Methods of Brand Valuation