The product and its properties are one of thefundamental concepts in the whole of modern economic science. They operate on such industries as commodity production, marketing, micro- and macroeconomics and other subsections of this science. Initially, the notion of goods was preceded by the notion of good, which has a broader definition. Usually it meant everything that had the property of satisfying the emerging human needs. This could be both objects of labor and the gifts of nature, and their ability to be the subject of trade did not matter, therefore for economic science this interpretation was too broad and generalized.
The concept of a commodity, which arose somewhat later,oriented exclusively on the economy. It is understood to mean everything that has the property of satisfying human needs in any other field and can be the subject of exchange or sale transactions. In this case, the origin of this object does not matter - the product can be as a result of human activities, and have a natural origin.
In other words, the goods and their properties should be such that any subject of economic activity can acquire this benefit to meet their personal needs.
What can be the cost of the goods?
Usually in everyday life under the costit is customary to understand the price to be paid for owning a particular product. But economic science distinguishes two main types of value: consumer and exchange.
Under the first most commonly understood to understand the valuegoods in the eyes of potential consumers, that is, the ability of a particular thing or service to satisfy a person's need. In other words, it is the utility of the goods for the client, that is, what marketing is most often oriented at.
Under exchange-value is meant a certainthe generalized proportion that some goods can be exchanged for others. The currency of exchange is the equivalent of the exchange value, which is a universal way of determining the average exchange value of the commodity.
Product and its properties in modern marketing
In order to be able to be represented in the market and reach a potential consumer, the goods in the modern economy must necessarily have five inherent characteristics:
- a certain level of quality;
- individual design, reflecting its specificity;
- a certain set of properties inherent only in this product;
- the brand name;
- packaging, which has specific differences.
The quality level is considered to be the determining factorfor any product, since it is solely from it that not only the exchange value of a specific service or thing depends, but also the success of its promotion on the market.
In order to be successful and allow yourthe manufacturer to receive a constant income, the product and its properties should favorably differ from the analogues offered by competitors. In the conditions of constant economic growth and increase in supply, the consumer strives to choose the highest quality goods with as many functions as possible.
In addition, important characteristics of the goodsthere are also such components as utility and rarity. These concepts are fundamental to determine precisely the value of consumer, so the exchange value, even in the most useful goods, will not necessarily reflect the real amount of the costs of its production. Often the utility of inexpensive, but vital goods will be much higher than the usefulness of luxury goods, which has a huge material value.