A product is a good or service produced by labor, which fulfills a consumer’s want and needs. The price of a product is determined by the value the buyer assigns to it, and what the market will bear.
Products are also defined as tangible or intangible. Tangible products are physical products that you can touch, feel and see. The majority of products in the world are tangible. Intangible products are products that aren’t physical, but that people can perceive or easily understand. For example, health insurance is an intangible product, although it is often delivered in the form a tangible product such as documents that customers must sign. Tangible products have specific features and characteristics that can benefit your business.
Tangible products aren’t just physical items that you can see, touch, feel and in some instances, taste; their features, their logo and how they’re packaged also distinguish them. For example, a can of Coke is a tangible product that is recognizable throughout the world by its distinctive red color and the unique way the words “Coca-Cola” are stenciled in white cursive on the side of the can. Tangible products are designed and manufactured from physical materials that can be organic or inorganic. Examples of common tangible products include computers, desks, cars and mobile phones.
Intangible products are not physical, but they still provide buyers with tangible benefits. For example, wireless internet service is an intangible product that provides users with online access. This service isn’t visible, but the benefits are real and valuable to people who want the freedom to stay connected to the internet at all times. Intangible products typically don’t come packaged, but they can still be advertised and marketed to appeal to a target audience
Tangible products are designed and packaged to show off their best characteristics, qualities, and attributes. The fact that these products are physical gives their makers the opportunity to point out key features that make the products appealing. The visibility and nature of a tangible product provide the key components of its marketing. For example, if a company is trying to market a new computer, it can showcase qualities such as download speed, screen clarity and design to attract buyers.
Marketing intangible products is a different story, because there is no physical product for companies to showcase. Instead, the focus is on the benefits and convenience that these intangible products offer a prospective buyer. For example, cloud-based storage is an intangible product that is often marketed by highlighting the number of files that the product can store, and the security features that safeguard a customer’s data.