Final answer:
Product classification in marketing determines how companies market products to consumers and businesses. Consumer products are targeted at individuals, while Business products are intended for organizations. Product differentiation is important for making products distinctive.
Step-by-step explanation:
Product classification in marketing is essential for determining how a company should market its products to its customers. There are two main categories of products: Consumer and Business. Consumer products are intended for personal use, while Business products are used by organizations in their operations.
When marketing Consumer products, companies often focus on appealing to individual consumers by highlighting features, benefits, and emotional appeals. On the other hand, when marketing Business products, companies target organizations and emphasize factors such as cost-effectiveness, efficiency, and reliability.
Product differentiation, which refers to making products stand out from competitors, can be achieved through various means such as physical aspects, intangible aspects, location, and perceived value. For example, companies may differentiate their products by offering unique features, superior quality, exceptional customer service, or a strong reputation.