NARAYANA ENGG COLLEGE ,NELLORE

         PRODUCT CLASSIFICATIONS                       Marketers have traditionally classified products on the basis of characteristics: durability, tangibility, and use (consumer or industrial). Each product type has an appropriate marketing-mix strategy. DURABILITY AND TANGIBILITY :  Products can be classified into three groups, according to durability and tangibility: 1.  Non durable  goods:  Non-durable  goods   are tangible goods normally consumed in one or a few uses, like beer and soap. Because these goods are consumed quickly and purchased frequently, the appropriate strategy is to make them available in many locations charge only a small markup, and adver­tise heavily to induce trial and build preference 2.  Durable goods:  Durable goods  are tangible goods that...

The profit maximisation theory has been severely criticised by economists on the following grounds: 1.   Profits Uncertain: The principle of profit maximisation assumes that firms are certain about the levels of their maximum profits. But profits are most uncertain for they accrue from the difference between the receipt of revenues and incurring of costs in the future. It is, therefore, not possible for firms to maximise their profits under conditions of uncertainty. 2.   No Relevance to Internal Organisation: This objective of the firm bears little or no direct relevance to the internal organisation of firms. For instance, some managers incur expenditures appar­ently in excess of those that would maximise wealth or profits of the owners of the firm. They are observed to emphasize growth of total assets of the firm and its sales as objectives of managerial actions. 3.   No Perfect Knowledge: The profit maximisation hypothesis is based on the assumption that ...