What is a product?
Market relations imply the existenceturnover. Consequently, in such relations, the commodity is an integral part of life. To understand what can be the subject of trade, it would be nice to first clarify what a commodity is, that is, to give it a definition.
Definition
The goods can be any thing or product,produced by human labor. And any product or thing can be exchanged or traded. As for marketing terms, they say that everything can be a commodity, with the help of which it is possible to satisfy any need. And only after that the goods are considered, as something produced for the purpose of sale.
Classification
All goods have their own classification. They are divided into:
- consumer goods - everything that is produced for general consumption;
- Industrial goods are what are intended for industrial use.
In order for a commodity to be recognized as such, it must possess:
- own value;
- market value.
Cost
Having understood what a product is, there remainsunderstand what the term "value" means. Own value (the cost of a consumer) is determined by the ability of the goods to meet any human need. But, in order to be exchanged, the goods must have one general characteristic - value or price
The market value is determined by the quantityspent labor and time for the production of a specific product, taking into account logistics costs and trade margins. You can also consider the product from the standpoint of its usefulness for the person. And, of course, the cost of the product affects its competitive advantages in the market with similar products.
