A product is any finished good, service or input material made for sale to a specific customer. It fulfills a consumer’s stated or unstated needs for which the consumer pays and also gives a benefit to the consumer which is valued by them. It can be a physical object, a collection of ideas, a service or a person.
The Definition of Product
In marketing, a product is any finished good or service, designed and developed to be sold to a consumer to satisfy their specific needs. It may be a tangible good such as a vehicle or an electronic gadget, or it can be intangible such as a book or a medicine.
Often, the term “product” is used interchangeably with “good.” However, it is important to distinguish between these two concepts and determine which one is best for your company.
The product of a business (business-to-business) is the finished set of goods or services that it produces, sells or provides to other businesses. This includes both direct and indirect goods or services, such as raw materials, components and equipment.
According to Philip Kolter, a product is any tangible thing which has the ability to provide value to consumers in exchange for a price or fee. A pair of Nike shoes, a car, a mobile phone, a computer, a bank account and a doctor’s consultation are examples of products.
A product can also be defined as a set of benefits, features and attributes that make it more attractive or useful than its rivals. The key here is to identify what these benefits are and how they can be added to your product so you can better compete against competitors.
The core benefits of your product are the most fundamental features and attributes that you can add to it so you can better meet customer needs. For example, if you are creating a camera app, your core benefits may include providing fast image processing and high-resolution accurate color screens.
The augmented product is the feature-rich version of your product that adds additional capabilities to make it more useful. For instance, if you want to process digital images but don’t have the time or money to buy image processing software, an augmented product can be a good solution.
In this case, your augmented product can be a free software program that processes images on the fly or an inkjet printer that prints your digital photos for a low cost.
When you have an augmented product, you can differentiate your business from competitors who may not offer it. You can also charge a higher price and offer unique benefits such as free shipping or gift cards.
Your augmented product should have a strong “why” statement that communicates the unique benefits it offers to your target market. This can help guide your positioning and value proposition so you can align all of your internal and external marketing efforts.
Having an effective product definition is the foundation of an excellent product strategy, and helps you create a product that is both functional and aesthetically pleasing to your customers. Defining your product will also help you understand the best way to price it and market it effectively, which will ensure it is a success in the marketplace.