(Last Updated On: June 16, 2017)
Definition of Product is;
A product is an item, idea or a service which a company or a person sells to customers and client and get revenue through this. There are different products available in the market which have different characteristics. For example Physical Goods, Services, and an Idea. This explanation of these three types of product is given below. You can know what is the difference between them and their examples.
Goods have a physical presence; you can touch them in the sale of goods ownership transfer from seller to customer.
Services do not involve the physical good. The service products are offered by hospitals and school. An Audit firm also provides services to their clients and then get revenue by selling their services. Doctors also provide their services and get money.
The idea is an intellectual property of someone, which have commercial value. There are no service or goods involved in it, for example, patents, industrial processes, and appellations.
There is two type of products found in the market.
Tangible products involved physical presence for example building, gadget or vehicle. Most of the products in the market are tangible the best example here is the soccer ball.
Intangible products don’t have the physical presence for example services or ideas.
The product comes into the market through different stages, after that product will become outdated, and replace by other new products by the competitors. The market is now becoming global due to advancement in technology, so the competition is very high in the market. The life of the products is very short and companies have to cover their cost during a short span of time. The products with long life cycle will get the more advantage over its competitors. Unique products with better quality will attract the customers.