Although it may seem obvious, there's a lot more to the products than you might realize. What is a product and what types of products are there? Is there a clear definition of products or is it more complex than you think? In this article, we explore these questions in more detail.
Table of contents
How to think about a product
A product can take many different forms. So if you are looking for a simple answer to the question 'What is a product?"We may have to let you down. A product can be defined as anything that can be offered to a market to satisfy a customer's need or desire. Products can be physical goods, services,experiences, events, people, places, organizations, information and ideas. But that is only one side of the product definition. Please join us as we continue to explain what a product is and how to distinguish the different types of products.
You can't have a business without having some kind of product; It can be said that products even define a business. But what is a product? Examples of products are household items, clothes, cars, personal items like perfumes, electronics, but also intangible things like ideas or services. Everybody cancreate or develop a product, but how well it is designed and manufactured is what sets a product apart. Amazon founder Jeff Bezos once said:„Your goal should be to add value to everyone you interact with.”This can be transferred to the product design. The goal of every company should be to create products with added value for consumers. In this sense, a product can also be thought of as a service package that offers the customer added value.
Different definitions of products
Let's get down to business: What are products? There is a whole range of different product definitions from different authors and different disciplines. All of these definitions answer our question in their own way. Below we take a look at a selection of some well-known product definitions.
The English Dictionaryproduct definition
IsEnglish dictionarydefines the word “product” as…
- Something intended for sale, i.e. a commodity offered for sale.
- Anything that is manufactured (often through an industrial process)
- The result of something (also in the mathematical sense)
- Any tangible or intangible good or service that results from a process and is intended to be delivered to a customer or end user
The definition of product marketing
One of the most common and popular product definitions, at least from a marketing perspective, is Philip Kotler's. What are products from Kotler's point of view? He defined a product as “anything that can be offered to a market for attention, acquisition, use or consumption. It includes physical objects, services, personalities, places, organizations and ideas.
The economic definitionof products
Aftereconomic times, “A product is the item offered for sale. A product can be a service or an item, it can be physical, virtual or cybernetic.
Given these different definitions, what are products anyway? The Economic Times definition summarizes many of the different definitions of a product as “the item offered for sale”. Aside from this commonality, a product can come in many different forms as long as it is offered for use. This brings us to the next part where we look at the different types of products.
types of products
As with the definition of products, there are many different ways to distinguish product types.
Consumer products vs. industrial products
One of the most commonly used methods of distinguishing the types of products isconsumer productsagainst industrial products. Each of these types has its own subcategories.
consumer products They are, as the name suggests, products that are manufactured or sold to consumers. These include convenience products, grocery products, and specialty productsInappropriate Products. These products are manufactured or created to meet the needs and desires of consumers. What are products if you only consider consumer products? We will briefly explain and give some examples of itdifferent types of consumer goods.
- comfort productsThey are necessary products that are regularly purchased by consumers and can be found almost everywhere. Convenience products are widespread, have low prices and often require a lot of advertising. Examples of convenience products are books, sugar, pens, pencils, salt, matches and detergent.
- shopping productsThey are products that are needed but that consumers do not typically buy. Shopping products are sold in fewer places and are generally compared based on quality, size, features, and so on. Consumers often take the time to compare other options before shopping for products. These products often require personal sales and advertising/marketing. Examples of purchased products include furniture, phones, and clothing.
- Special productsThey are products with unique features or characteristics. They tend to be expensive, marketed in selected areas as opposed to convenience products, and aimed at a specific group of consumers. Examples of specialty products include designer clothing, sports cars, and other expensive products.
- Inappropriate ProductsThey are products that consumers do not normally buy. They are only bought when needed. They are personal sale products and require serious advertising/marketing. Examples of products that are not in demand are life insurance and funeral services.
Learn more about thefour types of consumer goodsand marketing considerations for each type.
Industrial productsThey are assets purchased by organizations to support operations or provide services. While consumer products are bought for personal use, industrial products are bought (at least initially) for the benefit of the organization. But what is a product when we consider industrial products? Let's take a closer look at the different types of industrial products.
Industrial products include materials and parts, capital goods, supplies, and business services.
- capital goodsThey are commodities that facilitate the production process, but do not become part of the final product itself. Examples of capital goods are plants or factories, fixed equipment such as main machinery, and auxiliary equipment such as printers.
- materials and partsare the goods that become part of the end product through the production process. This includes raw materials such as wood, but also components and parts such as gears.
- Commercial supplies and servicesThis includes both operating resources, i.e. objects that primarily serve to maintain the functionality of a company (think of printer ink, for example), as well as intangible goods such as advice or maintenance. Both business services and consumables help keep the business running.
Tangible vs. intangible products
Products can be further divided into tangible and intangible goods.
The word "tangible" means anything that can be touched or felt. If we apply this definition to a product, we can say that a tangible product is a physical product that can be touched or felt. Examples of physical products are cars, pens, books, gadgets, and tools.
"Intangible" is the direct opposite of tangible. So if material goods can be felt or touched, immaterial goods cannot be felt or touched but can be seen indirectly. Intangible products can be viewed as services that may still have tangible components. An example of an intangible product is an insurance policy.
After discussing what products are and how to distinguish the different types of products, let's think about the properties of the products.
Product features are the properties of a product. They can help distinguish one product from another or tell a good product from a bad one. Each product has its own characteristics and properties. Only when the properties of the products are combined with theneeds and wishesYou can tell if a particular consumer or business is a good product or a bad product. A good product for one may be bad for another.
Regardless of a good or bad product, you can always distinguish products based on their characteristics. In addition, the properties of the product play a very important role.important role in marketing. It is usually much easier to market a product when the product's attributes are clearly communicated. Product features include the following points:
- A product is any good or service that can be sold
- A product can be considered asvalue package- Turn it into a vehicle to bring satisfaction to consumers
- existthree product levels– core value, real product and extended product
- A product is tangible or intangible.
- A product can come in different forms.
- Products include goods and services.
- Tangible products come in different sizes, colors, shapes, patterns, etc.
- Products are a key element in theMarketing-Mixjmarketing strategy
There are many more aspects that could be included in this list of product features. It all depends on the type of product. What can we say about everyone if a seller can redesign or improve a product to boost sales?
How is a product different from a service?
In the most common understanding, a product is tangible, meaning it can be touched or felt. However, what we actually mean by that should be called a commodity. Products and goods are commonly used as synonyms. However, this is not entirely correct. While a good is something tangible, a product can also be a service. Of course, this also depends on the type of products.
However, if we stick to the common language for a moment and look at products as something tangible, we can say that a product can come in different shapes, sizes, quantities, qualities, etc. A product is made specifically for the needs and desires of consumers or industrial requirements and can usually be easily returned if the customer is not satisfied with it.
products in this sense
- Designed to meet the needs and desires of consumers or industry requirements.
According to Philip Kotler, “A service is an activity or benefit that one party may offer to another that is essentially intangible and does not result in ownership of anything.” The main characteristic of a service is that it is intangible; However, a service can have concrete elements. Unlike products, services cannot be returned.
under consideration ofservice functionswho are services
What a product and a service have in common is that both are designed to meet needs and generate satisfaction. However, due to the differences between products and services, they require different marketing strategies.
Marketing is based on a product and cannot be achieved if there is no product. So if you know an answer to the question 'What is a product?' is a key requirement in the development of aeffective marketing strategy. Also, you need to be aware of the different types of products as well as the characteristics of the products to ensure your marketing strategy is tailored to the specific needs of the situation.
What is the definition of a product? ›
Definition: A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at a price. The price that can be charged depends on the market, the quality, the marketing and the segment that is targeted.What are the three 3 types of a product? ›
Types of Products – 3 Main Types: Consumer Products, Industrial Products and Services. There are a number of useful ways of classifying products. One of the most basic way was the different ways of making a journey.What are the 7 types of products? ›
- Premium or luxury goods.
- Unsought products.
- Niche Products.
- Consumer preferences.
- Convenience products.
- Complementary goods.
- Convenience Products. ...
- Shopping Products. ...
- Specialty Products. ...
- Unsought Products. ...
- Raw Materials. ...
- Component Parts. ...
- Capital Goods. ...
- Major Equipment.
Goods or products are classified as either consumer goods or industrial goods. Consumer goods are produced for the personal use of the ultimate consumer, while industrial goods are produced for industrial purposes.How do you define a product in marketing? ›
Product marketing is the art and science of defining the position of your product in a market and getting it to the people who want to use it. It starts with the foundation of an existing product strategy and builds that into a marketing program to create awareness, convert sales, and grow revenue.What makes a good product definition? ›
Conclusion. Good products must have a solid value proposition and solve a real problem, be understandable by users, perform their task as easily and efficiently as possible, and become better and harder to part with the more they are used.What are the basic products? ›
basic products means products intended for export after processing into processed products or into goods; goods intended for export after processing shall also be regarded as basic products, Sample 1Sample 2Sample 3.What is an example of product type? ›
Product attributes: keep in mind
- Pants - Men.
- Pants - Women.
- Shoes - Men.
- Shoes - Women.
Food production results in many byproducts: wheat germ is a byproduct of wheat milling, and orange and lemon oil are byproducts of citrus fruit being processed into juice. Sawdust is a byproduct of the lumber industry, and feathers are a byproduct of poultry processing.
What are the 4 types of new products? ›
New product developments can be grouped into four major categories: new-to-the-company, improvement of existing product, extension of product line, and new-to-the-market.What are the two main types of product? ›
Products are broadly classified into two categories – consumer products and industrial products. Consumer products are products that the ultimate consumer purchases himself for direct use. The consumer purchases these consumer products to satisfy his personal needs and desires.What are different types of business products? ›
The seven types of business products are major equipment, accessory equipment, raw materials, component parts, processed material, supplies, and business services.What are some of the six categories of product? ›
- New-to-the-world products: These types of new products create an entirely new market. ...
- New product lines: ...
- Additions to existing product lines: ...
- Improvements and revisions of existing products: ...
- Repositioning: ...
- Cost reductions:
There are 34 classes of goods and 11 classes of services. The class headings describe in very broad terms the nature of the goods or services contained in each class.What are the 10 products or goods that you use daily? ›
- Kitchen utensils.
- Sanitary products.
- Miscellaneous goods.
- Containers & wrapping.
- Public hygiene products.
- Agents for control of infectious diseases.
- Wood preservatives.
Product traceability requires product identification labels, usually incorporating an identification number or barcode. Identification labels may be used to identify batches or individual items. A variety of labeling technologies is available to accomplish this.What are the elements of a product? ›
- The Functional Use of the Product.
- The Outward Appearance Design.
- The Quality Delivered to Your Customers.
- Step 1: Identify data sources. ...
- Step 2: Gather all product data. ...
- Step 3: Create logical product relationships. ...
- Step 4: Optimize all naming conventions. ...
- Step 5: Consider the psychology of a shopper. ...
- Step 6: Iterate and continually improve product categorization.
The best product descriptions address your target audience directly and personally. You ask and answer questions as if you're having a conversation with them. You choose the words your ideal buyer uses. You use the word “you.”
How do you start a product definition? ›
- Define the core purpose. Let us work out the purpose of our product by asking a set of simple but revealing questions. ...
- Define the user base. ...
- Define the user needs. ...
- Define the product functions. ...
- Define product success criteria. ...
- Define the product foundation requirements.
A product in product management definition
A product in product management is the result of management activities that provide users with unique opportunities. Those opportunities then potentially offer value to users. Not every product delivers value, but every product provides opportunities.
A product concept statement, sometimes referred to as just a "concept statement" represents the vision that a business owner and his design team has for a product or service. It describes the product or service, explains its purpose and considers the consumer demographics that the product is market toward.What are 4 characteristics of product? ›
Product characteristics are attributes of the product itself that need to be controlled. Examples of product characteristics are size, shape, weight, color, quality, hardness, etc. The list of product characteristics depends on your product and how its functional design requirements have been defined.What are the 3 qualities of a good product? ›
- Quality of design.
- Proper Storage.
- Quality Conformance.
- Efficient marketing.
- Great positioning.
Private Goods are products that are excludable and rival. Public goods describe products that are non-excludable and non-rival. Common resources are defined as products or resources that are non-excludable but rival. And last but not least, club goods are products that are excludable but non-rival.What are the 3 types of new product strategies? ›
There are three standard types of product positioning strategies brands should consider: comparative, differentiation, and segmentation. Through these strategies, brands can help their product stand out by targeting the right audiences with the best message.What is new product definition? ›
A new product is a product that is new to the company introducing it even though it may have been made in same form by others. For example, in the area of toilet soaps, different brands introduced by each company are that way, new products as it is new to the company.What are the 4 categories of new products? ›
New products are also classified as new-to-the-world products, new product lines, additions to existing product lines, improvements or revisions of existing products, repositioned products and lower-priced products.What are the 2 types of products? ›
Products are broadly classified into two categories – consumer products and industrial products.
What are the 4 components of a product? ›
These four components are the market, the problem, the solution, and the product itself.What is a basic product example? ›
This is the basic product and the focus is on the purpose for which the product is intended. For example, a warm coat will protect you from the cold and the rain. The more important core benefits the product provides, the more that customer is satisfied and need the product.
A simple product is a physical item with a simple SKU, and is the most basic form of all products. A simple product can be sold individually, or under grouped, bundle, or configurable products.