In our daily life, we buy different kinds of products so as to satisfy our varied needs. In this way, we can say that the product is one which has the capacity to satisfy our wants/needs. that is why the product is at the time defined as a bundle of potential utility. A product may be regarded from the marketing viewpoint as a bundle of benefits which are being offered to the consumer.
A product is a package of physical service and symbolic particular expected to yield satisfaction or benefits to the buyers.
Product is a bundle of utilities consisting of various product feature and accompanying services.
Features of Product
The main characteristics or essential features of a product are as follows:
1. Tangible Attributes
The first and foremost important feature of a product is its tangibility.
It means that it may be touched, seen and its physical presence felt, like, cycle, book, pencil, table etc.
2. Intangible Attributes
Alternatively, the product may be intangible in the form of service, such as banking, insurance or repairing services.
3. Exchange value
The third characteristics of a product are that it must have exchange value.
Every product, whether tangible or intangible, should have an exchange value and should be capable of being exchanged between the buyer and seller for a mutually agreed consideration.
4. Utility Benefits
Another important characteristic of a product is that it should have a utility like a bundle of potential utility or benefits.
5. Differential Features
Another important feature from the marketing point of view is that the product should have differential features, i.e., it can be differentiated from other products.
Different types of packaging and branding can help create the image of product differentiation in the consumer.
6. Consumer Satisfaction
Another feature from the marketing viewpoint is that the products should have the ability to deliver value satisfaction to consumers for whom they are intended.
7. Business Need Satisfaction
The last also equally important characteristics of a product is that in order to be a product, it should also have the attribute to satisfy a business need.
The basic business need obviously is to earn a profit on the product sold. It must have the attribute of generating profit. 14 Importance of Study Consumer Behaviour (Explained).
Importance Of Product
Product is the centre of all marketing activities, Without a product, marketing cannot even be imaged. Good products are the key to market success.
Product decisions are taken first by the marketers and these decisions are the centre to all other marketing decisions, such as price, promotion, distribution etc.
Product is the engine that pulls the rest of the marketing programmes and fills in the needs of society. It represents a bundle of expectations to consumers and society.
Someone has said, “If the first commandment in marketing is: know the customer, the second is know the product.”
In short, the importance of product may be summarized as under:
1. Product is the Centre of all Marketing Activities
Product is the pivot and all the marketing activities cluster around it.
Marketing activities such as advertising, sales promotion distribution, buying, selling etc. are all made possible only on account of the product.
It is the product which is purchased, sold, advertised, distributed etc.
In short, the product is the engine that pulls the marketing activities, programmes etc.
2. Starting Point of Marketing Planning
To the marketer, products are the building blocks of a marketing plan.
Marketing planning is done on the basis of the nature, quality and the demand of the product. Product policies decide other policies.
3. Product is the Key to Market Success
Product is the key to market success. That is why the marketing manager emphasizes and insists on the need for 279 of product for getting success in his business.
It is said, “If the first commandment in marketing is knowing your customer, the second is know the product.” If the product is faulty, its market will have a very short life span and will ultimately fall.
4. Centre of Consumption and Satisfaction
From the consumers’ point of view, the product is the centre of their consumption and satisfaction.
It is the philosophy of the modern marketing concept.
Various policy decisions are taken by the marketing management so as to provide better consumption, benefits utilities and satisfaction to the consumers in case the product fails to fulfil this very object, it invites the intervention of the government and other agencies to safeguard the interests of the consumers.
5. Importance from social Viewpoint
From a social viewpoint also, the product satisfies the needs of society.
On the one hand, product satisfies the need of consumers and on the other, it provides employment and standard of living to millions of people.
6. Corporate Need Satisfaction
The basic corporate need for profits is satisfied by-products.
It is the product through which a company exploits market opportunities and generates sales volume and revenue.
Adequate sales volume and revenue ensure corporate profitability essential for business survival and growth.
7. A Competitive Weapon
Product is the competitive weapon of very great potential.
Whenever competitive pressures develop in the market, consumer preference changes or otherwise there emerges a need for change in the components of the product.
For example, competitive advantage may be gained by changing the package, colour, size, quality, innovation or even trading terms.
In short, the product is the soul and centre of all our marketing activities.
Thus, now you know the features and importance of product.