Product

Product is a term used in economics and marketing to refer to a tangible or intangible good, service, or idea that is the result of a process and serves a need or satisfies a want. It has a combination of tangible and intangible attributes (benefits, features, functions, uses) that a seller offers a buyer for purchase.

Definition

In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are often referred to as merchandise, and in manufacturing, products are bought as raw materials and then sold as finished goods. A service is also regarded to be a type of product.

Classification of Products

Products can be classified based on their durability, tangibility, and use (consumer or industrial).

Consumer Products

Consumer products are those that are purchased for final consumption by individuals or households. They can be further classified into convenience products, shopping products, specialty products, and unsought products.

Industrial Products

Industrial products are those that are purchased for further processing or for use in conducting a business.

Product Life Cycle

The Product Life Cycle (PLC) is the period from the new product's first launch into the market until its final withdrawal and it is split into five stages: development, introduction, growth, maturity and decline.

Product Line and Product Mix

A product line is a group of related products under a single brand sold by the same company. Companies often expand their offerings by adding to existing product lines, because consumers are more likely to purchase products from brands with which they are already familiar.

A product mix is the total number of product lines that a company offers to its customers. For example, a small company may sell multiple lines of products.

See Also

• Product (business)
• Product (chemistry)
• Product (mathematics)
• Product (project management)

References

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