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Definition: 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.

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) products which one can interact with by touch. But in modern era, mobile apps, MP3, images, software products can be defined as intangible products 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 product which i used up completely in a period of 1 month. On the other hand a shirt is a product which may last for multiple number of years. A concept called PLC (Product Lifecycle) is used to understand the life time of a product.

A product may be a product for one business/customer but can be a starting point for some larger or a different product. For example a clutch or a gear can be an end product for one business but an input product for a bike manufacturer.

Hence, this concludes the definition of Product along with its overview.

Browse the definition and meaning of more terms similar to Product. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

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