{"id":7348,"date":"2016-10-19T21:44:23","date_gmt":"2016-10-19T21:44:23","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&p=7348"},"modified":"2019-01-05T01:41:53","modified_gmt":"2019-01-05T01:41:53","slug":"reading-defining-product","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wmintrobusiness\/chapter\/reading-defining-product\/","title":{"raw":"Reading: Defining Product","rendered":"Reading: Defining Product"},"content":{"raw":"\"Front<\/a>\r\n\r\nA product is a bundle of attributes (features, functions, benefits, and uses) that a person receives in an\u00a0exchange.\u00a0In essence, the term \"product\" refers to anything offered by a firm to provide customer satisfaction, tangible or intangible. Thus, a product may be an idea (recycling), a physical good\u00a0(a pair of sneakers), a service (banking), or any combination of the three.[footnote]https:\/\/www.ama.org\/resources\/Pages\/Dictionary.aspx?dLetter=P#product<\/a>[\/footnote]\r\n\r\nBroadly speaking, products fall into one of two categories: consumer products and business products (also called industrial products\u00a0and B2B products). Consumer products are purchased by the final consumer. Business products are purchased by other industries or firms and can be classified as\u00a0production goods<\/em>\u2014i.e.,\u00a0raw materials or\u00a0component parts used in the production of the final product\u2014or\u00a0support\u00a0goods<\/em>\u2014such as machinery, fixed equipment, software systems, and tools that assist in the production process.[footnote]http:\/\/www.businessdictionary.com\/definition\/industrial-goods.html[\/footnote] Some products, like computers, for instance, may be both consumer products and business products, depending on who purchases and uses them.\r\n\r\nThe product fills an important role in the marketing mix because it is the core of the exchange. Does the product provide the features, functions, benefits, and uses that the target customer expects and desires? Throughout our discussion of product we will focus on the target customer. Often companies become excited about their capabilities, technologies, and ideas and forget the perspective of the customer. This leads to investments in product enhancements or new products that don't provide value to the customer\u2014and, as a result, are unsuccessful.","rendered":"

\"Front<\/a><\/p>\n

A product is a bundle of attributes (features, functions, benefits, and uses) that a person receives in an\u00a0exchange.\u00a0In essence, the term “product” refers to anything offered by a firm to provide customer satisfaction, tangible or intangible. Thus, a product may be an idea (recycling), a physical good\u00a0(a pair of sneakers), a service (banking), or any combination of the three.[1]<\/sup><\/a><\/p>\n

Broadly speaking, products fall into one of two categories: consumer products and business products (also called industrial products\u00a0and B2B products). Consumer products are purchased by the final consumer. Business products are purchased by other industries or firms and can be classified as\u00a0production goods<\/em>\u2014i.e.,\u00a0raw materials or\u00a0component parts used in the production of the final product\u2014or\u00a0support\u00a0goods<\/em>\u2014such as machinery, fixed equipment, software systems, and tools that assist in the production process.[2]<\/sup><\/a> Some products, like computers, for instance, may be both consumer products and business products, depending on who purchases and uses them.<\/p>\n

The product fills an important role in the marketing mix because it is the core of the exchange. Does the product provide the features, functions, benefits, and uses that the target customer expects and desires? Throughout our discussion of product we will focus on the target customer. Often companies become excited about their capabilities, technologies, and ideas and forget the perspective of the customer. This leads to investments in product enhancements or new products that don’t provide value to the customer\u2014and, as a result, are unsuccessful.<\/p>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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CC licensed content, Original<\/div>