Meaning of Product
Product refers to an item, good or service that is capable of satisfying the needs or wants of customers. It is one of the crucial elements of the marketing mix and is offered for sale in the market.
Product is simply a means or medium of providing service to the customers. It comprises both tangible and intangible items that can be made available in the market for attention, acquisition, and use by people for fulfilling their needs. A product is created as a result of different production processes and efforts of human labor.
There are basically two categories of products: Consumer products and industrial products. Consumer products are those products that are ultimately used by customers for satisfying their wants. These are final products and do not require any further processing stage. On the other hand, industrial products are those which are used as input for the manufacturing of final products.
Features of Products
- Customer Satisfaction: Products are the means through which customers fulfill their needs and wants. It serves as a medium through which business offers service to customers for satisfying their requirements.
- Exchange value: The product should have an exchange value in monetary terms for which it is exchanged with people. This enables the exchange of products between the buyer and seller possible.
- Tangibility: It is one of the important features of the product. The product should have tangible attributes like it should be seen, touched or should have a physical presence.
- Intangible attributes: Product may be intangible which means that it does not have any physical presence. In the case of availing services like banking, repairing, and transportation, a product is intangible.
- Associated attributes: The product should have differential and unique features that make its identification and acceptance by buyers quite easy. It helps in product differentiation and creating a better image.
Importances of Product
- Element of marketing mix: Product is the key element of the whole marketing mix. All other elements that are price, promotion, and place mix are all dependent and decided in accordance with the product.
- Initiates market planning: Product is termed as the starting point and center of all marketing programs. All marketing activities like sales promotion, advertising and distribution are decided according to the nature of the product.
- Competitive weapon: Product is a powerful weapon of business to face strict market competition. Businesses by efficiently producing products are able to provide better quality at a lower cost which attracts more and more customers.
- Means of consumption and satisfaction: Product is the center of consumption and satisfaction of customers. People buy and consume different products for satisfying their numerous needs.
- Key to market success: Product is an important element for attaining success in the market. If business is able to deliver products in accordance with customer requirements, their product will widely be accepted. It will attract more customers and will provide growth opportunities for the business.
- Essential from social viewpoint: It is important from the viewpoint of society as it provides numerous benefits to them. The product satisfies the wants of society, improves their standard of living and also serves as a means of providing employment opportunities to a large number of peoples involved in various processes of the product.