|
|
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 you watch). Goods can be split into two types of good: Consumer goods – consumed by households. They cannot be used to produce more goods, 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 process – sometimes to make consumer goods, sometimes to make other producer goods. Examples are printing presses, sewing machines, and computers. Markets 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 sold): - Shops - Stalls in a weekly market - Mail order - Internet - Auction houses (e.g. Sotherby’s) |