Product

The essentials

A product is anything of value that a seller offers to a buyer, including physical goods, services and ideas. It is a bundle of utilities: functional (what it does), psychological (status, pride) and social (acceptance by others). Products are classified as consumer products and industrial products.

Key points

• Consumer products by shopping effort: convenience products (bought frequently, with little effort, such as soap and toothpaste), shopping products (bought after comparing quality, price and style, such as clothes and furniture) and speciality products (with unique features for which buyers make special effort, such as rare paintings or very expensive watches).
• By durability: non-durable (consumed in one or a few uses), durable (used many times) and services.
• Industrial products: materials and parts, capital items (such as machinery), and supplies and business services.
• Branding: a brand is a name, term, sign, symbol or design that identifies a seller's products. The brand name is the part that can be spoken; the brand mark is the symbol or design; a trade mark is a brand or part of it that has legal protection. Branding helps differentiate products, supports advertising, allows differential pricing and eases the launch of new products.
• Packaging levels: primary package (immediate container), secondary package (additional layer of protection) and transportation package (for storage and transport). Functions: product identification, protection, facilitating use and product promotion.
• Labelling functions: describe the product and its contents, identify the product or brand, grade products, help in promotion, and provide information required by law.

Exam tips

• A toothpaste tube is the primary package; the carton it comes in is the secondary package.
• Legal protection is what distinguishes a trade mark from an ordinary brand.

Common mistakes

• Confusing shopping products (compared before purchase) with speciality products (sought for unique features).
• Thinking a brand mark can be spoken aloud. It is a symbol or design.