Product is the primary P of the marketing mix because it is the first element to be decided. Product is defined as “a good, service, or idea that is bought and sold.”
Goods and services are both considered products. A good is a physical item, such as a bottle of water, an item of clothing, or an electronic device.
A service is an activity performed by others that can be bought or sold. Examples are a plumber fixing a faucet, an accountant preparing taxes, or a veterinarian examining a pet.
Many products are both goods and services. For example, at a restaurant, customers can get food and drinks (which are goods) from a friendly waiter (which is a service). The product offered by the restaurant is both a good and service.
Marketers must conduct product planning, which is the process of making decisions about the features and benefits of a product to ensure its success in the marketplace. A feature is a characteristic of a product.
A benefit is the value that a product feature provides to the customer. Benefits help customers understand why they need the product.
A feature-benefit chart can be a useful selling tool for marketers.
Product decisions, such as product features, must be made with the target customer in mind. Thoughtful product planning can help a business distinguish its products from others in the market.