Market relations have changed the outlook of people, and at the moment, many objects are called goods. These are not only material goods, but also works of art, positions and even human relationships. At the same time, marketers and business people talk about promising products, denoting numerous categories with this definition. What are the differences between the definitions and how to determine the difference?
Product - items and valuables participating in free, limited or prohibited circulation, intended for sale and subsequent satisfaction of human needs. Such things always have a formal expression and are opposed to services. Money is considered to be a universal commodity, which determines the value of objects.
Product - a service or product created for the further implementation and satisfaction of human needs. Distinctive attributes of this category are the presence of value, expression (tangible or intangible), interest for the market. Products manufactured for own consumption (food, clothing, etc.), not intended for sale, are not goods.
Thus, commodity and product are marketing categories that serve to express commodity-money relations. They have their own price, which is most often determined by the market method. Differences are manifested exclusively insofar as the scope of concepts differs. In marketing, both a product and a service are called a product. Thus, the definition of the first concept is broader. Other differences follow from this.
The goods are always materialized, the product can be presented in an intangible form. Accordingly, you can always own a product (roughly speaking, hold it in your hands), a product - only in those cases when it is a thing.
- The scope of the concept. Product is a broader category that includes goods and services.
- Reification. A product is represented by a tangible object, a product can be created in an intangible form.
- Possession. A product can be possessed: it goes to the buyer after the sale. A product can only be owned if it is presented in tangible form.