In business, product refers to all commodities offered for sale. Product is also often called merchandise or goods.
In marketing, the term product also refers to commodities offered for sale but this time it also specifically refers to those commodities offered for sale with the purpose of satisfying the needs and wants of the customer.
Products can be categorized in many different ways. One of the most common ways to categorize products is by determining if that product is tangible or intangible.
Tangible products are those with physical quality, meaning they can be sensed using the five senses. Examples of tangible products include clothes, perfume, food, medicine, etc.
Intangible products, on the other hand, provide value but usually just leave a paper trail.
Examples of intangible products would be life and medical insurance policies, trust funds, etc.
Products are priced based on many factors. Some of the factors that determine a product’s price include the cost of producing/manufacturing a product, the demand for the product, the company’s required profit margin, and perceived value of the product. The product’s branding, region or area where the product is to be distributed/sold, economic climate, and price comparison of similar products offered by competitors are other pricing considerations.
Many times, products are also given a fresh branding in order to keep sales up. What this means is while the product is manufactured the same way the packaging design and even product name might change. The “new” product is then re-launched in the market.