Product 101

Product 101

Product 101 Jonathan Poland

A product is an item that is offered for sale. It can be a tangible good, such as a car or a book, or an intangible service, such as a haircut or a consulting service. A product can also be a combination of goods and services, such as a vacation package that includes transportation, lodging, and activities. A product is an essential part of a company’s offering, and it is typically developed and marketed to meet the needs and wants of a specific group of customers. Products can be classified in various ways, such as by type, function, or target market, and companies often have a wide range of products in their product mix. The development and management of a company’s products is an important part of its overall business strategy.

There are many different types of products, and they can be classified in various ways. Here are a few examples of common product classifications:

  • By type: Products can be classified based on their physical characteristics, such as whether they are tangible goods or intangible services. Tangible goods are physical products that can be touched, seen, and owned, such as cars, books, and toys. Intangible services are activities or benefits that are provided to customers, such as education, healthcare, and entertainment.
  • By function: Products can also be classified based on the function they serve or the problem they solve. For example, products can be classified as basic (e.g., food, clothing), convenience (e.g., pre-packaged meals, online shopping), or specialty (e.g., designer clothing, high-end electronics).
  • By target market: Products can also be classified based on the specific group of customers they are designed for. For example, products can be classified as consumer goods (e.g., food, clothing), business-to-business (B2B) goods (e.g., office supplies, industrial machinery), or government goods (e.g., military equipment, highway construction materials).

These are just a few examples of how products can be classified. There are many other ways to classify products, and different companies and industries may use different classification systems. Ultimately, the type of product and the way it is classified will depend on the specific context and the needs of the company and its customers.

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PLEASE NOTE: I am not a registered investment adviser and do not provide financial advice. My work is primarily with business leaders, turning insights from the financial markets into models for growth, development, and better capital allocation.