What Is a Product in Marketing Terms?
In marketing terms, a product is not just an item for sale. It is a bundle of attributes and benefits combined in a good, service or idea. Tangible products, which can be touched, seen, heard or smelled, are subdivided based on whether they are purchased by consumers or businesses. Consumer products are categorized as convenience, shopping or specialty goods.
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Consumer Products
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Consumer products are purchased by household members for their own use or for their families. Some are durable, lasting for an extended period like an appliance or a sofa. Nondurable consumer products are intended to be used up in a short time, such as laundry detergent or breakfast cereal. These products are typically distributed through retail stores, and a growing variety are also available on websites. It is less common for consumers to buy directly from wholesalers.
Business Products
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Business products are purchased by companies for resale as component parts of other products or as raw material to be processed into a finished good. For example, department stores buy dresses from women's clothing manufacturers in order to resell them to store customers. Dress manufacturers purchase buttons and zippers to sew into their designs. Car makers purchase steel to be processed into auto bodies. Unlike consumer products, most business products are distributed either through wholesalers or specialized networks of sales agents.
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Consumer Product Categories
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Consumer products fall into three categories. Convenience goods are low-cost items that are purchased frequently with minimal forethought or brand comparison, like milk and bread. Shopping goods such as jeans and cosmetics are compared on the basis of different brands' prices and attributes. Specialty goods are characterized by a high level of involvement, and a willingness on the part of target buyers to travel or otherwise devote considerable effort to obtain exactly what they want. Examples include luxury cars, fine jewelry or original artwork.
Services and Ideas
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Two types of intangible products are services and ideas. The marketing of services involves promotion of acts or efforts with consumer benefits like convenience or expertise. Examples of services that are commonly marketed include haircuts, dental exams, tutoring and child care. Idea marketing aims to educate and persuade people about a concept, belief or position on an issue. Often its goal is to change behavior, like convincing smokers to quit or drivers to wear seatbelts.
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References
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