Product classification: meaning and types

The distribution of products into groups is the basis of commodity research. There are a lot of classifications for this. In the article we will focus on the most relevant and convenient. Also consider the components of these classifications of goods. But let's start the conversation by defining basic concepts.

Product classification - what is it?

Classification is a logical distribution of any set (from properties, concepts to objects and phenomena) into some groups and categories, based on certain signs and selected subjects of separation methods.

And then what will be the classification of goods? This is already a division into categories, which is carried out in accordance with the problems to be solved in the management of production, logistics, stocks, supply and marketing.

As for merchandising, here the object of classification are:

• goods and their properties;
• raw materials for the production of (goods);
• quality indicators;
• methods for its assessment;
• varieties of quality control and so on.
  

Classification value

Let's also decide why the classification of goods is introduced. Its application pursues the following objectives:

• Streamlining terminology.
• The ability to combine a large number of products into related groups. And this already allows both to systematically study them and to use automatic means of processing product information.
• The ability to evaluate, study the system, the rationality and completeness of the product range, to improve its formation.
• Facilitation of the study of commodity properties of products. Establishing the optimal level of these properties, determining the requirements for them.
• Development of group methods for assessing, measuring the quality and consumer properties of goods.
• Classification of the assortment of goods by common properties helps to develop optimal packaging methods, modes of transportation and storage, as well as rules for using products.
• Great base to improve standardization.
• Classification of the assortment of goods is necessary for certification of the latter.
• Speeds up and facilitates the procedures of commodity-operational processes in the store, determines the variety of commodity enterprises, helps to generally improve the level of service in trade.
• It is necessary for the organization of goods supply.
• It contributes to the rational placement of products in warehouses and warehouses, as well as its correct display in stores.
• Helps to study aspects of consumer demand.
• It is used to compile advertising booklets, brochures, catalogs, etc.

Classification Types

Classifications of goods and services used in international commodity science can be divided into the following categories:

• ABC. In terms of profitability or consumption.
• QRS. On attracted investments, investments.
• VED, VEN. Classification of goods of foreign trade activities - according to the level of need for products.
• Hml. At the price of a commodity unit.
• GOLF. By type of product delivery.
• SOS. According to the seasonal need for goods.
• FMR By the popularity of products among its consumers.
• XYZ. By the rhythm of demand for this product.
• SDE By variety of sources for the purchase of products.

With regard to practice, the presented classifications are rarely applied purely on their own. Commodity experts mix, complete them with each other.

Main classifications

The most applicable product classification categories are as follows:

• Training.
• Trading.
• Standard.
• Economic and statistical.
• Foreign economic.

We will analyze each of them in detail.

Trade classification

This classification of product groups is industry specific. Most of all, it is applicable in trade - for organizing store management, improving product range planning, the rational arrangement of items on the trading floor and warehouse management. There will be only two sections - food and non-food. Let's analyze them.

Foodstuffs. These are the following groups:

• Bakery products.
• Fruits and vegetables.
• Wines and liquors.
• Soft drinks.
• Confectionery.
• Butter and dairy products.
• Meat and sausages.
• Fish.
• The eggs.
• Edible fats.
• Tobacco.

And now - the classification of food products:

• Grocery. All products that require cooking before consuming. These are tea, flour, spices, cereals, pasta, food concentrates and so on.
• Gastronomy. Products for which heat treatment is not required. Also this is what is characterized by increased taste. Dairy products, canned food, smoked meats, confectionery, alcohol and so on.

Non-food products. Inside, it is divided into several large groups:

• Toys
• Books and printed matter.
• Fur products.
• Paper products.
• Stationery.
• Video, audio, photo equipment, electronics.
• Footwear.
• Sewing products.
• Knitwear
• Textile.
• Household appliances and electrical goods.
• Furniture.
• Hardware.
• Construction Materials.
• Ceramics.
• Glass products.
• Household chemicals.
• Haberdashery.
• Household goods.

This classification will be mobile - it may be detailed, or may be enlarged. Depending on the purpose of the merchandiser. And we are moving on to a new division.

Classification training

This type of classification of goods is used in the training of future specialists. The goal here is to study the consumer properties of products, to identify the general principles of their (properties) formation. Classification also allows you to more fully familiarize yourself with the assortment.

The most important sign for her is the purpose of the product. In many ways, they are similar to trading - all products here will be divided into the same categories.

Food products. These are nine major groups:

• Grain-filled.
• Dairy
• Edible fats.
• Meat.
• Fish.
• Mushrooms and fruits.
• Taste products.
• Confectionery.
• Eggs and products from this product.

As you can see, the classification is based on commonality in chemical composition, production technology, origin, storage conditions and purpose.

Non-food products. There will be such a grouping:

• Household chemicals.
• Plastic products.
• Silicate goods.
• Metal products.
• Electrical goods.
• Furniture, wood products.
• Textile.
• Sewing and knitting products.
• Shoes and leather goods.
• Fur products and furs.
• Electronics.
• Perfumes and cosmetics.
• Printed products.
• Toys and so on.

Economic and statistical classification

It can be considered the most complete of all those mentioned. Presented in OKP (All-Russian Classifier of Products) - OK 005-93. It is used to ensure comparability, reliability and automatic data processing in various fields of activity. These are certification, standardization, statistics, quality management, the economic sphere, production and so on.

Each position in the OKP is presented as follows:

1. Digital 6-digit code.
2. Check number (one character).
3. The name of the group to which the product belongs.

The classification here will be hierarchical, 5-step. The coding system in OKP is decimal. The division at each stage is carried out according to the most significant technical and economic characteristics.

Here's how it looks:

1. Classes of goods (AA 000).
2. Subclasses of products (AA A000).
3. Groups (AA AA00).
4. Commodity subgroups (AA AAA0).
5. Varieties of products (AA AAAA).

The classification of any product by OKP can only be completed in 3-5 of the steps presented. Explanations are allowed for some items in the classifier - they are prescribed under the name of the product to which they relate.

But in trade and commodity science, such a classifier is used extremely rarely. The reason is that it does not coincide with either the educational or the trade classification. Also, OKP does not reflect the consumer qualities of goods, the interests and characteristics of trade.

Standard classification

This is the gradation that appears in industry and state standards. It is used to determine the range of quality indicators, product requirements, conditions and methods of testing, control, as well as for certification. This system can be found in the ACS - All-Russian Classifier of Standards.

The main features for dividing the entire mass of products in this gradation are the purpose and industry. For example, the classification according to its purpose is fixed in the state standards of the fourth system (or system of quality indicators). On it, the knitwear will be divided into underwear, outerwear, hosiery, gloves.

Foreign Economic Classification

But this system is a novelty for Russia. It is developed on the basis of the following acts:

• Harmonized product description and coding system.
• Combined Statistical Tariff Nomenclature of the European Economic Community.

This classification is reflected in the HS (commodity nomenclature of foreign economic activity). Accordingly, the key area of ​​its application is related to foreign economic processes. This is the customs classification of goods. It is consistent with all international organizations and is designed to classify products intended for international trade.

Each product here will belong to a specific classification group. Explanations for each can be found in the Notes and the Basic Provisions for the interpretation of HS.

Correctly determining the position of the goods here is important for a lot:

• analysis of the work of enterprises and firms;
• qualitative and quantitative assessment of products;
• determination of the customs duty rate;
• commodity insurance;
• development of export and import regimes;
• comparing information on foreign trade from different states;
• various economic and statistical analyzes.

The coding here is a 10-digit digital code:

• The first 6 digits are a designation that is accepted in GS (Harmonized system of the description and coding).
• The first six categories, as well as the 7th and 8th are the product code according to the KN UES (Combined Nomenclature of the European Economic Community).
• The 9th and 10th categories are needed to specify products taking into account the needs of the Russian Federation and the CIS. Today, the last, tenth character is zero.

One of the significant drawbacks of such a classification is its complexity. It is possible to apply in practice only with special knowledge.

General classification rules

These are a few simple but important guidelines:

1. Set a classification goal.
2. Choose the method by which it will be conducted.
3. Identify the necessary classification features.
4. Set the sequence of the latter - from more to less significant.
5. Determine the number of gradation levels.

Classification Methods

The method here will be a set of techniques that help divide the mass into subsets. With regard to product classifications, there are two of them:

• Faceted. This is a parallel division of a set on a single basis into several groups independent from each other - a facet.
• Hierarchical. And this is a sequential division of the set into categories (subsets).

Classifications of goods today - a lot. Each will be useful for one or several spheres of human activity. We have already sorted out the most common ones.