Product refers to anything that can be offered to a market for attention, use, or consumption that might satisfy a want or need. It includes,
- Ideas e.g. consultancy firm on lectures where people purchase your idea and pay e.g. Elijah kupata invention of security alarm.
- places e.g. visits to museum; a need is satisfied when one pays
- physical objects
1. Durability and perishability
Durable goods normally service many uses and are consumed or used for a very long period of time. Perishables are used once or a very short period of time. Other products which are taken into account in this stage includes tangible items which are usually felt ,touched or seen while intangible products can’t be felt, touched or seen e.g. services.
2. Consumer and industrial goods.
- Consumer goods – this are products bought by consumers for their own final consumption. They can be classified in four main categories.
- Convenience goods – this are goods that consumers know enough about them before purchasing them. They buy the goods on a day to day basis. they purchase them with minimum effort thus no evaluations are made and frequently e.g. newspapers, foodstuff, airtime, milk, bread, tea leaves etc.
- Shopping goods – this are goods that consumers may want to compare in terms of features, quality, price, suitability and style in several shops before making a purchase. Most of them are desirable e.g. furniture, clothes, TV set etc.
- Specialty goods – this are goods that consumers have a strong brand preferences for and they are willing to spend a lot of time and effort in locating them because they are not in any shop i.e. they are got from specific outlets. Most are very expensive and have a unique brand identification and owning them carries a status in it e.g. TV, clothing.
- Unsought goods – they are products consumers may not yet be aware of and if they are aware they may not place so much meaning to them and have to be convinced of their importance in order to purchase them e.g. insurance policies. A customer does not ordinarily purchase the product unless convinced through personal selling and are not in the budget.
- Industrial goods – they are products bought by businesses for further processing or for use in conducting their operations. They include.
- Material and parts – this includes raw materials such as wheat which is to be processed into flour then to bread and parts such as wires, yarn(for sweaters).the finished forms must be attached to others to function well e.g. for electricity lines, copper(finished product) is needed as well as some sulfurous.
- Capital equipment – includes machinery equipment and installations such as generators, computers, wardrobe etc.
- Supplies and business services – this includes services such as banking, warehousing, insurance and cleaning services and also includes repair and maintenance services to machines as well as supplies of stationery.
- Component parts – this are finished products themselves but which need to be attached for another good for them to be useful e.g. Tires which are got from rubber (finished product).
3. Standardized and custom made goods – standardized goods are produced in large quantities for use by everyone while custom made goods are produced based on customer specifications.