Definition
A product is defined as a bundle of attributes (features, functions, benefits, and uses) capable of exchange or use; usually a mix of tangible and intangible forms. [2]
Thus a product may be an idea, a good, a service, or any combination of the three. It exists for the purpose of exchange in the satisfaction of individual and organizational objectives. [1]
Along with price, place, and promotion, product is one of the 4Ps of the marketing mix.
While the term “products and services” is commonly used, product is a term that encompasses both goods and services. [2]
Product attributes are the characteristics by which products are identified and differentiated. Product attributes usually comprise: [1]
- features
- functions
- benefits
- uses
Augmented product is the view of a product that includes not only its core benefit and its physical being, but adds other sources of benefits such as service, warranty, and image. The augmented aspects are added to the physical product by action of the seller, e.g., with company reputation or with service. [1]
A commodity product or staple good refers to a convenience product such as sugar or potatoes that is bought often and consumed routinely. Staples often offer little differentiation and are sold importantly on the basis of price. [2]
A commodity exchange is an organization, usually owned by the member-traders, that provides facilities for bringing together buyers and sellers, or their agents, of specified standard commodities for promoting trades in accordance with prescribed rules—either spot or future, or both—in these commodities.
A maintained item is a specific product that is continuously maintained in assortments. [1]
During market evaluation, the product concept undergoes extensive evaluation and research to determine its potential for meeting both customer needs and the company’s financial objectives (e.g., sales, market share, and return on investment). [3]
Obsolescence is the act or process of a product becoming out-of-date, discarded, no longer in use. The rejection is for some reason other than being worn out or inoperable. It may apply to an individual item or to all of the items in a given class or group. The active verb form, less widely acceptable, is “to obsolete” or “to make obsolete.” [1]
Substitute products are viewed by the user as alternatives for other products.The substitution is rarely perfect, and varies from time to time depending on price, availability, etc. [1]
See Also
Complementary products
Deal merchandise
Innovation
Product category volume
Product class
Product development
References
- American Marketing Association, AMA Dictionary.
- Common Language in Marketing Project, 2018.
- Govoni, N.A. Dictionary of Marketing Communications, Sage Publications. (2004)