Definition of Product: Definition, Type, Levels, and Examples of Products

Actually, what is meant by the product ( product )? In general, the definition of a product is something that is produced from the production process, both goods and services that can be traded in a market.

In other opinion, the definition of a product is a substance produced by a producer and offered to a market to meet the needs or desires of consumers. In this case, a product can be intended for end consumers or intermediate consumers.

Based on the definition, it can be concluded that the product is anything that can be offered to the market to be consumed or used so that it meets the needs and desires of consumers.

Also read: Definition of Production

Understanding Products According to Experts

In order to better understand what a product is, we can refer to the opinions of the following experts:

  1. Philip Kotler

According to Philip Kotler , the definition of a product is anything that can be offered, owned, used or consumed so that it can satisfy the wants and needs of consumers, including physical, service, people, place of organization and ideas.

  1. William J. Stanton

According to William J. Stanton, the definition of a product in general is a collection of tangible or intangible attributes which include color, price, packaging, prestige, retailer and service from a factory, which may be accepted by the buyer as something that can satisfy his desires.

  1. Fandy Tjiptono

According to Fandy Tjiptono, the definition of a product is everything that a manufacturer offers to be considered, asked, sought, bought, used / consumed by the market as meeting the needs / desires of the relevant market.

  1. Djaslim Saladin

According to Djaslim Saladin, the definition of a product in general is anything that can meet and satisfy the needs or desires of humans, both tangible and intangible.

  1. Basu Swastha and Irawan

According to Basu Swastha and Irawan, product definition is something that is complex, both tangible and intangible, including packaging, color, price, company prestige, business services, and retailers, which are accepted by buyers to satisfy their wants and needs.

Also read: Consumer Definition

Product Classification and Types

Products can be divided into several types, both based on their appearance and durability, as well as based on consumers and what products are consumed.

According to Philip Kotler , the types of products are as follows:

A. Consumption Products

The definition of consumption products is all products used by end-level consumers ( end users ). In other words, the product is not resold but is used directly by consumers.

Consumable products can be grouped into several sections:

  1. Products for Daily Needs ( Convenience Goods) ; namely products that are needed and easily run out if used so often bought by consumers. Some examples; food ingredients, drinks, bath soap, laundry soap, etc.
  2. Groceries Products ( Shooping Goods) ; that is, products purchased by comparing one product with other similar products, for the price, quality, specifications and quality. Some examples included in shopping products include; television, smartphones, shoes, laptops, etc.
  3. Special Products ( Specialty Goods) ; namely products that have special characteristics that have a luxurious and special impression, where a group of consumers is willing to pay a high price to get the product. Some examples; luxury cars, jewelry, luxury smartphones or limited edition products.
  4. Unsought Goods; that is, products that are unknown to consumers, and even if known by consumers, they are not necessarily interested in buying them. Some examples; coffins, gravestones, burial ground, and others.

B. Industrial Products

The definition of industrial products is all products purchased by a producer that are used as raw materials for the production process so as to produce new products. In other words, industrial production specifically for use in the production process

Industrial products can be grouped into several sections:

  1. Raw Materials and Parts ( Materials and Parts) ; namely the products needed for the production process so as to produce new products that are more useful. This type of product is divided into two, namely; raw materials and finished materials / spare parts . Examples of raw materials; wood (for cabinets, chairs, tables), wheat (for bread), and so on. Examples of finished materials and spare parts; thread, vehicle components (tires, wheels, etc.) and so on.
  2. Capital goods ( Capital Items) ; that is, products that can make it easier for producers to manage and develop finished products and have very long durability. Some examples; office buildings, factories, production machinery, computers, etc.
  3. Supplies and Business Services ( Supplies and Services) ; namely products that can facilitate the management of finished products and have long durability. Some examples of supplies; engine fuel, lubricating oil, office stationery, etc. Whereas examples of business services ; product advertising, legal consulting, equipment maintenance, and so on.

C. Products Based on Being

Products can be classified based on their form, namely goods and services.

  1. Goodsare all products whose physical appearance can be seen, touched, touched, felt, transferred, and other physical treatments. Examples of goods; food, drinks, accessories, etc.
  2. Servicesare all activities that provide benefits and satisfaction to consumers. Example services; massage services, makeup services, lodging services, consulting services, and so on.

D. Products Based on Durability

Products can also be classified based on their durability. In this case, products can be classified into two groups:

  1. Not Durable Goods ( Non-Durable Goods) ; i.e. all goods which have a form which can be consumed in one or several times. Example; bath soap, washing soap, shampoo, toothpaste, and so on.
  2. Durable Goods ( Durable Goods) ; i.e. all items that have a form that can last a long time even if used repeatedly. Example; television, refrigerator, cupboard, table and so on.

Also read: Definition of consumption

Product Levels

As we know, there are many types of products circulating in the community. Each of these products has different levels so that the numbers are different in the market.

In his book, Fandy Tjiptono mentions there are 5 product levels, namely:

  1. Main Products ( Core Benefit) ; that is, products that have the benefits needed and will be consumed by consumers.
  2. Generic Products; that is, products that fulfill the most basic functions of a product so they can benefit consumers.
  3. Hope Products ( Expected Products) ; namely a formal product offered with various attributes where conditions are normally expected and agreed to be purchased.
  4. Complementary products ( Augmented Product) ; namely the attributes of the product with various benefits and services so that it can add satisfaction and can be distinguished from other products.
  5. Potential Products; i.e. all kinds of additions or changes that might be developed in a product in the future.

Also read: Consumer Behavior

Well, above was a brief explanation of the understanding of the product, its types, as well as several examples of products. Hopefully this article is useful and broadens your horizons.


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