The concept of product classification and its role in trade
Many consumer products that are sold and bought by people by mutual agreement of the parties are not just a thing, but a commodity. A product is a useful item that was obtained as a result of human labor and took part in exchange for an object of similar value.
Modern production supplies the market with a huge range of products that must have certain characteristics, functions and benefit the consumer. But due to the incredible variety of manufactured goods, it is impossible to evaluate their properties according to any general criteria. To organize the numerous assortment in trade and economics, it is customary to classify it.
Rice. 1. Classification characteristics of the product range
Classification of goods is the distribution of objects of market exchange into categories and groups according to certain parameters for orderly and more careful study.
Important! Classification can be carried out both according to strictly regulated documents, and more superficially grouping products into classes. Without organized systematization, advertising, production, transport and market activities will fall into a state of chaos.
Purpose of classification of goods:
- Identification of general characteristics that products should have, depending on the group.
- Simplifying the study of products, their properties and qualities.
- Determination of uniform standards for a specific type of product.
- Introduction of certification and standardization.
- Organization of quality control in production.
- Control over packaging, transportation and proper storage of assortment.
- Study of consumer demand.
- Pricing forecasting.
- Strengthening international trade.
Important! Without compiling organized classifiers, it is impossible to achieve stable quality, assign an adequate price for the products offered, and also gain a foothold in international trade. When entering the markets of other countries, the manufacturer must take into account local classification systems and requirements for this category of product.
The role of classification in the market sphere is enormous. It helps both the buyer and the manufacturer of the goods. With its help, the properties that objects of a particular category should have are determined, and more stringent quality checks are introduced. Knowledge of the necessary properties of a product helps enterprises produce in-demand, high-quality and safe products. Fulfilling the requirements for transportation and storage of the product preserves its benefits. Marketing services, based on the classification of goods by price, quality and other parameters, conduct successful advertising campaigns and help the development of companies. And it’s easier for the buyer to find exactly what he needs in the store.
Rice. 2. Classification of goods in accordance with the All-Russian Product Classifier
Definitions of "product"
Goods are the main category of market relations, this is what determines the increased interest in them from researchers, because the transformation of the Russian economy creates conditions for a thorough study of the methods of accounting, auditing and management of operations with goods.
It should be said that now there is no clear definition within the terminology, so even the concept of “product” is understood differently. Thus, one group of scientists believes that a commodity is a product of labor that has value and is distributed in society through exchange (purchase and sale). Another group of specialists defines a product as a tangible product purchased or received from legal entities and individuals and intended for sale.
It can be stated that the concept of “product” can have a broad and narrow definition.
**The broad definition of the concept of “goods” **is used in the economic aspect, and the narrow concept is associated with the peculiarities of the activities of trading enterprises. A product is a complex concept that includes a set of many properties, the main ones among which are consumer properties, that is, the ability of a product to satisfy needs.
In our opinion, the main purpose of a product is to solve certain consumer problems.
Any product must be considered at three levels.
The first is the intent of the product. At this level, we are still talking not so much about the actual item or service, but about the need and desire that the future product is intended to satisfy.
The next level is the subject in real execution. In this case, the product must have the following features: a set of necessary properties, quality, external design, name (brand), packaging.
The last level is the product itself with additional services (service) and amenities adjacent to it (the so-called reinforcement of the product).
Types of commodity classification
All products can be divided into a huge variety of groups, lists and categories, depending on the properties required at the moment. Let's look at the most common grouping methods.
Trade classifier
Used for the production, sale and proper storage of products. Divides products into two groups:
- Food
- Non-food
Economic-statistical division
Refers to the most complete and extensive system of separation of goods and is aimed at facilitating standardization and certification.
Standard classification
It is determined by the All-Russian Classifier of Standards and is used to determine the requirements for quality control. Separates items according to their purpose and industry origin.
Foreign economic classifier
Separates goods intended for international trade, helps to establish trade between countries. Takes into account foreign economic factors and foreign requirements for manufactured products.
Training grouping
It practically duplicates the trade classification, but has specific functions and features. This method is used exclusively for training future commodity science specialists. Allows you to study the principles of determining the necessary properties and types of goods.
Rice. 3. Product properties
Other sorting methods
Depends on the specific need to group the product at the moment. Products are divided according to such characteristics as purpose of use, consumer characteristics, location of production, operating conditions, items for individual and public use, etc.
Important! In Russia, two types of classification of goods are most often used: trade and economic-statistical. After a preliminary analysis of the data obtained as a result of product sorting, the basic standards for various market segments are determined.
Depending on the market
The sales market also identifies the main classifications of goods. Such a division is to highlight the goods of domestic producers. After all, products intended for export from the country are also of great importance. In addition, a distinction is made between goods supplied from other countries. The classification is as follows:
- Domestic goods are mostly aimed at the domestic market. They are issued mainly for citizens of the same country.
- Export goods are intended for sale abroad. Therefore, it fully complies with foreign standards.
- An imported product is one that is brought from abroad. These products have a fairly high cost, which is associated with additional taxation. Imported goods are in demand among people who satisfy their own curiosity. They are also popular with those who like to pamper themselves with foreign delights.
Trade classification
This sorting is actively used in trade. With its help, the manufacturer can produce products whose properties will fully satisfy the consumer, and transport companies, warehouses and points of sale receive reliable information about the transportation and proper storage of the product.
Trade classification divides goods into food (food products) and non-food industrial goods (manufactured goods).
Edible or food products can be divided into many groups:
- Purpose:
for mass consumption, medicinal and dietary, baby food, probiotics and prebiotics. - By origin:
plant, animal, mineral. - By trade purpose
: gastronomic and grocery. - By expiration date:
perishable and suitable for long-term storage. - By grade:
goods of the lowest, highest category and normal in quality. - Dishware.
They combine tools, dishes, plastic products, household chemicals, etc. - Dry goods.
This concept corresponds to an assortment of leather products, threads, bags, gloves, and accessories. - Textile
. Clothing, shoes and household items made from fabrics. - Products for personal hygiene.
Includes a variety of personal items - cosmetics, perfumes, detergents. - Household and electrical goods.
The category includes home appliances, various devices and components for them. - Products for aesthetic purposes.
Handicrafts and art objects, decorations, jewelry. - Petroleum products.
The oil itself and fuels and lubricants. - Other.
The list of manufactured goods includes everything that is created for a comfortable life, for example, medical products, office supplies, transport for personal or public use, and much more.
The category of non-food products also includes many groups that differ in characteristics:
Important! The educational classification studies the principles of trade sorting and also divides all goods into food and non-food. In this case, products are divided into many groups and subgroups for a detailed study of their properties.
The trade classification is a huge list consisting of hundreds of mixed items and clarifications. Many products may be suitable for several categories at once; for example, any food product can be assessed immediately by origin, shelf life, and grade. And cosmetic products fall into the category of household goods and personal items. Such examples can be given endlessly.
Rice. 4. Product classification system
Classification based on consumption habits
This classification of goods is the most common. After all, implementation really depends heavily on personal preferences. It is represented by several groups. One of them is consumer goods. Such products are characterized by a high level of sales over a short period of time. These include correspondence, personal hygiene products, and bakery products. These products are divided into 2 groups:
- Impulse purchase (the client instantly makes a purchasing decision, guided by basic availability).
- Accompanying goods (these are elements of passive demand, the appeal to which is not provided for in advance). These include insurance and funeral services.
This also includes products that are in special demand. They correspond to the concept of “brand”. Indeed, such products have a number of specific characteristics. Regular customers give preference to the special individual qualities of products. Such products can be so stylish and unique that customers are willing to spend additional money and time on them. The classification of the product range distinguishes this group as products that have special and permanent characteristics.
Some products need to be selected in advance. Before purchasing, customers engage in comparisons between identical competing items. A similar approach is observed during the purchase of products, which are selected by comparing quality and price. These could be cars, mobile phones, household appliances.
There are emergency goods that are in demand at a specific time and place. These include raincoats, protective equipment, and snow removal devices.
Classification decisions of the Federal Customs Service
Customs classification of goods is an important element. More and more foreign trade participants are inclined to obtain a preliminary decision regarding the structuring of goods. This trend is caused by challenging the CU codes declared by the declarant. At the same time, the designations adopted for customs authorities are often not acceptable for the declarant. The reason is the need to provide permits. This is due to the high customs duty rate.
The preliminary classification of goods was accepted by the Federal Customs Service of Russia and the Russian Technical University. The formation of performance indicators of customs posts consists of the formation of funds collected in the budget. Their position may be very different from the direction of action of the customs post. To consider a request for a classification decision, the Federal Customs Service and the RTU act according to general rules and refer to the Commodity Nomenclature of Foreign Economic Activity, as well as international practice regarding the structuring of similar goods. In this case, the application submitted by the foreign trade participant is taken into account. The documents presented to them and the description of the products sold also play a role.
The article presents the main classifications of goods. They were created with an increase in the sales market. To win the attention of customers, you need to create interesting offers. Therefore, the market is constantly increasing. After all, it is regularly filled with new goods and services. In addition, in order to withstand competition, existing offers are being updated. That is, a huge number of goods and services need to be structured.
