Concept of Product

Generally market offering of any kind is called a product. In management, a product is anything that is offered in the market to satisfy a need or want. The products may be raw materials in industries, merchandise in retailing or services in service industry. The raw materials are called commodities often. Commodity is also something offered in an open market.
A product essentially has utility. A product is a bundle of utilities consisting of various features and services.
The bundle of utilities here means that the product is not the physical product but the total package of the benefits obtained by a customer.

A product is a mixture of tangible plus intangible attributes.

For example if we buy a book or CD from, the product is not only the book but also the guarantee of getting delivered with 24 hours. The book in this example is the core product or core benefit. A product as a bundle of tangible and intangible attributes is a Total product and the concept is called Total Product Concept.
This bundle is represented by the following graphic:

Core Benefit refers to what the product means to a customer. The Generic product is the unbranded and undifferentiated commodity which provides the core benefit. A Branded product gives an identity to the generic product. For example water is a generic product, but Bisleri and Aquafina are the brands. Car is a generic product which offers the benefits of convenience in travelling but Wagon R or Mercedes are brands.
The generic products are undifferentiated products. However, differentiated products have a distinction from other similar products. The differentiation is mostly claimed by the marketers; however It may or may not have the real distinction of ingredient, quality, utility and service. For example Pacimol and Calpol are two brands which offer Paracetamol as ingredient used for fever medicines.
In customized product, the customer requirements are taken into account. The augmented products involve the voluntary improvements made by the product manufacturers. The potential product is tomorrow’s product which may possibly introduced by the firm in future depending upon the technological and economic resources of the firm