1. Magnetic materials can be classified based on whether they possess a permanent magnetic moment. Diamagnetic materials do not have a permanent moment, while paramagnetic and ferromagnetic materials do.
2. Paramagnetic materials have randomly oriented magnetic moments that align when a magnetic field is applied, resulting in a net magnetic moment. Their susceptibility decreases with increasing temperature.
3. Ferromagnetic materials spontaneously form magnetic domains with parallel alignment below the Curie temperature, giving rise to a permanent magnetic moment even without an external field. They are strongly attracted to magnetic fields and act as permanent magnets.