In a wealthy modern society, people do not simply purchase a product for its functional utility, but also for its semiotic utility. Therefore, the traditional product classification, based on functional utility, do not provide useful suggestions for marketers. This paper proposes a mode], that classifies products into four catagories by rational and emotional dimensions. We discuss the relationship between product classification, innovation type and marketing strategy, and the dynamic perspective of this classification. We argue that this scheme can organize marketing phenomena more effectively and help the formation of marketing theory.