Module - 1: Definition and Types of Product
On completion of this module, you will be able to:
- Understand what is Product ?
- Understand Types and Levels of Product
- Understand product market-mix
- Understand New product development (NPD) process and Idea generation methods
- Understand Morphological analysis and Brain storming
Definition of Product
- A product is any good, service, item or idea which if offered for sale. Its purpose is to satisfy the needs or want of the market or customers. It can be tangible or intangible or both.
- Tangible product like cars, building, mobile phones, desks, AC, bottles, cloths, wire etc. and Intangible products like insurance, computer software, loan etc.
- If it does not satisfy the need or wants, then is is not acceptable by the customers or market.
- Each product has a name and if the name becomes popular then it becomes a brand. Every product has its cost and each of them is sold out at a price
- This price depends on several factors some of them are the cost of production, the quality, the marketing and the segment that is targeted. Each product has a useful life after, then we have to replace the product with a new product
- A product need - name, communication and adaptability.
- Name:-As every person has a name which helps us to memorize him, in the same way, product have their names which helps us to recognize and make them different from others.
- Communication:- There should be communication between the customer who needs the product and the producer who is manufacturing the product.
- Adaptability:-A product should not be anything. Its purpose is to satisfy the needs or want of the market or customers. It should provide some benefits or add value to the customers. if a product is not adaptable , it means it is not likable for the customer and it will not create any revenue for the company or manufacturer .
Types and Classification of Product
- On the basis of Durability:- A product which can be used many times again and again is called durable products like Refrigerator, washing machine, Clothes etc. A product which can be used for one or few times is called non-durable products like Soft Drink, Soap, maximum FMCG products.
- On the basis of Tangibility:- A product which can be seen and touched is called tangible products like Refrigerator, washing machine, Clothes, cell phones, all physical goods etc. A product which can not be seen and touched, can only be experienced is called Intangible products like Software, Insurance all Services.
- On the basis of Use:-https://www.youtube.com/watch?v=LrG63GTXq4M