Lookup Wizard Or Separate Table

I've been doing a lot of research and reading on databases and normalization and things of that sort because I need to create database from scratch. I've been maintaining a db that someone else made, but it turns out I will have to recreat the whole thing because it's not useful anymore and the users need a more user friendly db. I have a couple of days some are:

tblTO
------
TONumber
Contract
Product Directorate <- combo box 20 items
Document Type <- combo box 15 items
TOManager <- combo box 10 items

tblTOItem
----------
Product <- combo box 13 items
JobNo
BasicDate
ChangeDate
ChangeLevel
TotalBillablePgs
TotalTextPgs
TotalArtPgs
Standard <- combo box 22 items
TemplateVersion <- combo box 20 items
SourceFormat <- combo box 15 items
SourceLocation <- combo box 10 items

The ones I have the arrows for will be a combo box on my form.
My question is should I make each of these field a table of its own?
For instance make the Product field a table and list all the 13 products there?
Or keep the Product field in the tblTOItems and in design view of tblTOItems use the Lookup Wizard and type in my values there to make a lookup column.

I have seen it done both ways, and I was just wondering which way is more efficient.