$140$ Part $4$ Creating Value

offer a stripped$-$down version for less, Marketers must be sure, however, that consumers not see lower quality or limited capability versions as unfair. ${?}^3.$

Product Classifications

Marketers classify products on the basis of durability, tangibility$,$ and use $($consumer or indus$-$

$($rial$).$ Each type has an appropriate marketing$-$mix strategy.

Durability and tangibility$.$ Nondurable goods are tangible goods $($such as shampoo$)$ normally consumed in one or a few uses. Because these are purchased frequently, the appropriate strategy is to make them available in many locations, charge a small markup, and advertise to induce trial and build preference, Durable goods are tangible goods $($such as refrigerators$)$ that survive many uses, require more personal selling and service, command a higher margin, and require more seller guarantees. Services are intangible, inseparable, variable, and perishable products $($such as haireuts$)$ that normally require more quality control, supplier credibility, and adaptability.

Consumer$-$goods classification. Classified on the basis of shopping habits, these include convenience goods $($such as soft drinks$)$ that are purchased frequently, immediately, and with minimal effort; shopping goods $($such as furniture$)$ that consumers compare on such bases as suitability, quality, price, and style, specialty goods $($such as cars$)$ with unique characteristics or brand identification for which enough buyers are willing to make a special purchasing effort; and unsought goods $($such as sr

Industrial$-$goods classification. Materials and parts are goods that enter the manufac. turer's product completely. Raw materials can be either farm products $($wheat$)$ or natura products $($iron ore$).$ Manufactured materials and parts fall into two categories component materials $($wires$)$ and component parts $($small motors$).$ Capital items are long$-$lasting goods that facilitate developing or managing the finished product, including installation. $($factories$)$ and equipment $($tools$).$ Supplies and business services are shor services that facilitate developing or managing the finished product.

Differentiation

To be branded, product offerings must be differentiated. At one eqtreme are products that allow little variation: chicken and steel. Yet even here some differentiatic is possible: Perdue chickens and India's Tata Steel have carved out distinct identittes in their caf $\text{'}$ possible. Perdue chicken are products capable of high differentiation, such as automobiles, commercial buildings, and furniture.

Product Differentiation

Means for differentiation include form, features, performance quality, conformance quality, durability, reliability, repairability, style, and customization. ${?}^3$ As discussed below, design is also a means for differentiation.

Form. Form refers to the size, shape, or physical siructure of a product. For example aspirin can be differentiated by dosage size, shape, color, coating, or action time.

Features. Most products can be offired with varying features that supplement their basi function. A company can identify and select new features by surveying recent buyers and then calculating customer value versus company cost for each potential feature. Marketer