What are business products?
A good, idea, method, information, object or service created as a result of a process and serves a need or satisfies a want. It has a combination of tangible and intangible attributes (benefits, features, functions, uses) that a seller offers a buyer for purchase. For example a seller of a toothbrush not only offers the physical product but also the idea that the consumer will be improving the health of their teeth.
There are so many and they fall under different names and categories a few things products are like can be:
• Merchandise- In retail
• Raw Materials- In manufacturing
• Commodities- raw materials or anything widely available in the open market
• Policies- In insurance, etc.
What are business products like?
A business product is like an Olympic Athlete’s sporting tool, like the pole for the high jumper. Without the pole you can’t do the high jump and so without a product you don’t have a business.
What is the purpose of a business product?
The purpose of products are things that assist directly or indirectly in providing products for resale. A product is anything that can be offered to a market that might satisfy a want or need. With any product that is fulfilling a need and/or want within its niche market than it is fulfilling its purpose.
What are the different types of business products?
There are many different types of products used for business and there are all ways new products coming out all the time. To make a list of products would take a lifetime so to make it easier they can be broken up into groups.
• Raw Materials – These are products obtained through mining, harvesting, fishing, etc.
• Processed Materials – These are products created through the processing of basic raw materials.
• Equipment – These are products used to help with production or operations activities.
• Basic Components – These are products used within more advanced components. Electrical wire is an example.
• Advanced Components – These are products that use basic components to produce products that offer a significant function needed within a larger product. In computers the motherboard would be an example.
• Product Component – These are products used in the assembly of a final product though these could also function as stand-alone products.
• MRO (Maintenance, Repair and Operating) Products – These are products used to assist with the operation of the organization but are not directly used in producing goods or services.
What’s involved with determining the business products?
When determining your product there are several things to be considered. Firstly the product idea will need to go through a screening stage of new product development (NPD) which requires a more sophisticated and detailed business analysis. In order to determine the viability of the new product the following steps must be undertaken:
• Estimate your product price
• Identify your products market potential
• Forecast your sales volume
• Identify your break-even point
• Determine your minimum sale price
• Consider the long term
• Scope your market strategy
Providing your product meets the following targets successfully than there will be a place for the product in the market of today.
Where does determining the business products fit into the sales process of a business?
The point of your sales process in where determining your product fits is during the pitch of your product. If you can’t successfully pitch your product idea to the company or business and prove that there is a valid and potential market for your product then there is no plausible reason for the company or business to manufacture and sell the product. No company or business is going to back or stock a product that they see no future profit in and therefore pitching the product is the most important stage when determining any product.
How does determining business products impact on different areas of the business?
Determining business products doesn’t really impact on the operations of a business involved in stocking the product. As all products are determined at the company or business wanting to create the product before going into the market to then stock and resell them in stores. This process will all be decided by possibly a board or company meeting to determine that their new product will fit into the market before it even goes into the marketplace to be available to the consumer.
What terms are used when determining business products?
Some terms that are used with business products are as follows:
• Business-to-business- Of businesses selling to other businesses.
• Intangible- Incorporeal property that is saleable though not material, such as bank deposits, stocks, bonds, and promissory notes.
• North American Industry Classification System- A system used by businesses and government to classify business establishments according to type of economic activity (process of production) in Canada, Mexico, and the United States.
• Raw material- Manufacturing inputs in its unprocessed, natural state
• Business analysis- A research discipline of identifying needs and determining solutions to problems facing firms
Where can I find more information about determining business products?
More information in regards to what is a product to the steps needed in determining your product can be found on the following:
Who would most benefit from this knowledge?
The information in this article is going to be very useful for anyone with no experience in this area looking into business products.
If you are looking at this for a particular job level any staff or team leaders involved in creation of products (like the think tank) as they can review any information to help with producing a successful product idea.
Business products don’t really have a jurisdiction as it is simply a product/item as apposed to a set of rules or laws following the jurisdictions of the government.
Products don’t particularly have any cultural influence there are a few exceptions with thing’s like food and clothing being that different cultures will not eat certain food products and also have different rules based on what clothing they wear. However most products don’t have a cultural influence such as toy’s, car’s, hygiene products, etc.
Climate will only affect certain products at certain points in the selling/buying process. Raw materials such as agricultural resources are generally the only products affected by climate, as certain fruits and vegetables are seasonal. Climate does not affect the production of certain products like coffee and ice cream as consumers will still go out and buy coffee in summer and ice cream in winter.
This knowledge is most relevant to any industry that is involved in the creation of products that are to be used for business and consumers. So any company or business that creates or produces their own product.