Overview

A product in business is an item, bundle of attributes or combination of tangible and intangible elements created to satisfy a customer need and exchanged in a market. At a basic level a product may be a physical good, a digital offering or a packaged combination of goods and services. For a straightforward working description see a general product definition.

Definitions across fields

Different disciplines use the term in related ways. In economics goods that people value and trade are distinguished from natural resources; manufactured items are commonly described as products while raw materials are called natural resources or inputs. The concept of goods overlaps with products when those goods are produced for sale or use. In marketing a product is framed as a solution to a customer need and includes packaging, brand, warranty and support as part of the offering. Retailers refer to products as merchandise and assortments (retail), while manufacturers focus on items that are produced, assembled or used as components (manufacturing).

Common classifications and characteristics

  • Durability: durable goods (appliances, vehicles) vs nondurable goods (food, toiletries).
  • User: consumer products (personal use) vs industrial products (used in production or resale).
  • Tangibility: tangible goods vs intangible services — many modern offerings blend both.
  • Complexity: commodities vs complex systems that bundle hardware, software and services.
  • Price sensitivity and purchase frequency: convenience, shopping, specialty and unsought products.

Product development and lifecycle

Product development typically follows stages: idea generation, concept screening, design and prototyping, testing, launch and post‑launch management. After market introduction most products progress through growth, maturity and eventual decline or renewal; this product lifecycle concept helps managers plan pricing, promotion and capacity. Development activities draw on market research, design, engineering and regulatory review; sustainability and circular economy concerns increasingly affect material choices and end‑of‑life planning.

Management, strategy and metrics

Product strategy covers the product mix, product lines, portfolio management and branding decisions. Firms use tools such as product roadmaps, stage‑gate processes and metrics like sales, market share, margin, lifetime value and customer satisfaction to evaluate performance. Pricing, distribution and promotional tactics are aligned with the product's stage and target segment.

Examples and economic role

Products range from basic commodities and packaged consumer goods to capital equipment, software and bundled service packages. Products are central to commerce: they generate revenue, create jobs, enable supply chains and provide the basis for competition and innovation. Retailers, manufacturers and service firms each manage products with different priorities—merchandise planning in retail, process efficiency in manufacturing, and positioning in marketing.

Distinctions and practical considerations

Distinguishing products from services is useful but many offerings combine both elements (for example a device plus ongoing software support). Considerations such as packaging, after‑sales service, warranties, intellectual property and regulatory compliance affect how products are developed and sold. For concise introductory material and field‑specific guides consult general references on product definition and domain texts in economics, goods, marketing, retail and manufacturing.