Types of product
A product satisfies the needs and wants of customers.
There are two main types of product:
A good – something tangible, something you can touch and use (e.g. a television).
A service – usually intangible, something other people do for you (e.g. entertainment
from a film
Goods can be split into two types of good:
Consumer goods – consumed by households. They cannot be used to produce more
though they may give a flow of services. A consumer durable is a good that is not used
up quickly, but gives a flow of services over a period of time (e.g. a private car or a
mobile phone). Nondurables are used up in a short space of time such as food or fuel.
Producer (also known as industrial or capital) goods – used in the production
sometimes to make consumer goods, sometimes to make other producer goods.
printing presses, sewing machines, and computers.
A market is where products are bought and sold, and is therefore where the business
operates. Market can be classified in a number of different ways, e.g. local, national and
international markets; by customer needs e.g. for fast food or fashion shoes.
A product can be in more than one market, which means that it can have a number of
different potential buyers.
There are a number of different marketplaces (places where products are bought and
- Stalls in a weekly market
- Mail order
- Auction houses (e.g. Sotherby’s)