Definition
A product category is a logical grouping of similar goods or services with common functions, features, or intended uses. [1]
A category manager reports to the marketing manager and is responsible for the marketing of the several brands falling under a generic product category such as coffee, dessert or oral hygiene. This manager is responsible for maximizing the total profit from the mix of brands in the category. This includes allocating funds and marketing effort according to the profit potential of each brand in the mix, and also deleting weak brands and adding new brands with higher profit potential.
Category-based processing is a cognitive process in which an individual attempts to categorize new stimuli. If a stimulus can be considered as an example of an existing category, it is evaluated by the affect associated with the category, rather than by careful consideration of its attributes (as in piecemeal processing). The category schema is the basis for evaluation.
Category signage is a system used to call out and locate specific merchandise categories in a store.
Category exclusivity refers to the right of a sponsor to be the only company within its goods or service category associated with the sponsored property. [2]
A category killer is a type of destination store that is usually large and concentrates on one category, thus making it possible to carry both a broad assortment and deep selection of merchandise, coupled with low price and moderate service. Home Depot, Best Buy, and Toys “R” Us are examples of category killers in the home improvement supplies, consumer electronics, and toy markets, respectively.
See Also
Category development index
Category performance ratio
References
- How To Organize Retail Products Into Product Categories (2024) – Shopify
- American Marketing Association, AMA Dictionary.