Published by MBA Skool Team, Last Updated: May 23, 2020

What is Product?

Product is a good, commodity or sometimes a service which is produced by company or an individual and can be sold in a marketplace through a contract between a buyer and a seller. Products have a certain usage associated with them which can result in completing a need or a want for a customer. A product may be a final good for one business or customer but can be a starting point or raw material for some larger or a different company.

Product can be formed by multiple ways:

1) There is a customer need which is fulfilled by building a product around it.

2) A certain good or commodity is produced already and then the customer market is created.

Products are mostly tangible but can also be intangible. For example, a Car, Pen, Book etc are tangible (physical) which one can interact with by touch. But in modern era, mobile apps, MP3, images, software etc can be defined as intangible which are not present in the actual physical world but one can interact with them in virtual world.

Each and every product has a defined lifecycle depending upon its usage, industry, market conditions, competition etc.

A toothpaste is a FMCG produced good which i used up completely in a period of 1 month. On the other hand a shirt may last for multiple number of years. A concept called PLC (Product Lifecycle) is used to understand the life time of a product.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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