Product (business)

result of work that can be offered to a market

A product is something that is made (produced) and often something that is sold.

In economics, things that one person has and another person wants are called goods. If the thing was made by people, then it is called a product. If it is something that was found in nature, it is called a natural resource.

In marketing, it is an object made for people's use and it satisfies the need of a customer.[1]

In retail, products are often connected with merchandise, and in manufacturing, products are some materials to create final goods.

ClassificationEdit

Products are often connected with services but they are described and used in different ways.

Products are classified:

By useEdit

The system of dividing products on departments. For example, retailer Sears, Roebuck and Company created several groups of his products.[2] It helps customers to choose the product by its function.

By associationEdit

A product line is "a group of products that are closely related".[3] There are many product lines for various types of using. For example, within the insurance industry, product lines are divided by the type of risk coverage, such as auto insurance, commercial insurance and life insurance.[4]

OtherEdit

There are also national and international classifications. They can be used by different organizations. For example, the European Union uses a "Classification of Products by Activity".[5] The United Nations classifies products for making reports of international economic activity.[6]

Related pagesEdit

ReferencesEdit

  1. Kotler, P., Armstrong, G., Brown, L., and Adam, S. (2006) Marketing, 7th Ed. Pearson Education Australia/Prentice Hall.
  2. "sears.com". web.archive.org. 2007-02-17. Retrieved 2021-04-12.
  3. Kotler, Philip; Gary Armstrong (1989). Principles of Marketing, fourth edition (Annotated Instructor's ed.). Prentice-Hall, Inc. pp. 639 (glossary definition).
  4. "Curlie - Business: Financial Services: Insurance: Carriers". curlie.org. Retrieved 2021-04-12.
  5. "Europa - RAMON - Classification List". ec.europa.eu. Retrieved 2021-04-12.
  6. "UNSD classifications on economic statistics". unstats.un.org. Retrieved 2021-04-12.