Explain the nature and concept of a product. Discuss the criteria on which products are classified. Explain with suitable examples

A product is a tangible or intangible item offered for sale or use that satisfies a need or want.

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It can be physical goods, services, or a combination of both. The concept of a product extends beyond its physical form to include associated features, benefits, and branding.

Products are classified based on various criteria:

1. Type of Product:

• Goods: Tangible items like cars, smartphones, or clothing.
• Services: Intangible offerings such as education, healthcare, or consulting.

1. Consumer vs. Industrial Products:

• Consumer Products: Directly purchased by end consumers (e.g., snacks, electronics).
• Industrial Products: Used in the production of other goods or services (e.g., machinery, raw materials).

1. Durability and Tangibility:

• Durable Goods: Lasting for an extended period (e.g., appliances, furniture).
• Non-durable Goods: Consumed quickly or have a short lifespan (e.g., food, toiletries).

1. Use:

• Convenience Products: Purchased frequently with minimal effort (e.g., groceries).
• Shopping Products: Bought after comparison shopping (e.g., clothing, electronics).
• Specialty Products: Unique items with specific characteristics, often brand-driven (e.g., luxury goods).
• Unsought Products: Products consumers may not actively seek (e.g., insurance, funeral services).

1. Product Classifications based on Innovation:

• New Products: Innovations introduced to the market (e.g., the latest smartphone model).
• Product Line Extensions: Variations of existing products (e.g., new flavors of a beverage).

1. Degree of Tangibility:

• Tangible Products: Physical goods.
• Intangible Products: Services, experiences, or ideas (e.g., consulting, software).

Examples:

• Durable Goods: Cars, refrigerators.
• Non-durable Goods: Food items, toiletries.
• Consumer Products: Smartphones, clothing.
• Industrial Products: Machinery, raw materials.
• Convenience Products: Snacks, soft drinks.
• Shopping Products: Clothing, electronics.
• Specialty Products: Luxury watches, designer handbags.
• Unsought Products: Insurance, burial plots.
• New Products: Latest smartphone model.
• Product Line Extensions: New flavors of a beverage.

Understanding these classifications helps businesses tailor their marketing and development strategies to meet specific consumer needs.