The products exchanged in the Product Market are the physical products like food, metals, and electricity. No kind of services is exchanged in the Product Market.
In the Product Market different kinds of products are exchanged. According to these products, Product Market can be classified into following three categories:
Convenience Products Market
Convenience products include food products, medicines, newspapers etc. The Convenience Products are purchased on a regular basis and the prices of the Convenience Products are relatively low compared to other goods like Shopping Goods and Specialty Goods. Market for the Convenience Products requires intense distribution of products. This will enable the buyers to get the product without any effort at any place, at any time whenever they need. Another requirement of Convenience Product Market is the promotional activities. These activities are very much important to let the customers know about the particular product, its' features, attributes, quality and about the benefits that can be derived from using it. Brand Name establishment is essential for this reason. To promote the Convenience Products in the market the other means that are used are Push Strategy and Pull Strategy. All these measures are required, because customers of Convenience Product Market reveal low level of loyalty to a product of particular brand and are prone to shift to substitute products.
Shopping Goods Market
The products that are exchanged in the Shopping Goods Market are clothes, furniture and other products that are bought less frequently. People buy this kind of products after gathering information about all the brands available in the market. The demand for the Shopping Goods is determined not only by the economic factors but also by the social and cultural factors. The distribution of products in the Shopping Goods Market is less intensive compared to Convenience Product Market. The strategies taken to promote the products of this market are same as of the Convenience products Market; that is the push and pull strategy.
Specialty Products Market
The Specialty Products are those, which are bought at long intervals. The examples of this type of product are art pieces, jewelry and real estate property. As these products are bought seldom, the exclusivity and the originality of the products are essential for gaining customer's preference. The customers of this Specialty Product Market tend to be loyal to the brand and are not inclined to substitutes. Promotional strategy adopted for this type of product market is Pull strategy, which involves direct appeal by means of advertisements.