Product

Business, Legal & Accounting Glossary

Definition: Product



Full Definition of Product


product is an item created, and in an economic sense, for sale, use, or consumption. Products include goods, devices, commodities, services, or yields.

A product is the final consequence of the manufacturing process. In marketing, a product can be explained as something that gratifies a requirement. Retailing industry terms a product as merchandise. The term ‘product’ in common usage denotes to a single unit or a cluster of equivalent wares.

Product Life Cycle

The product life cycle is a flow of events that results in a new product being manufactured and travels along with its transformation into a mature product and its ultimate decline. The standard life cycle of a product includes the accompanying steps:

Development Of The Product

This phase of the product life cycle includes an analysis of the target market, designing the specific product, the conception of the product, and testing.

Introduction Of The Product Into The Market

Once the development phase is over, the product is launched in the target market. This phase of the product life cycle is generally characterized by conspicuous advertising.

Growth Phase Of The Product

Product sale gains momentum over the passage of time. Greater sale of a product is recorded year after year. Increase in production levels results in declining gross margins. The emergence of competition makes the product less profitable per unit.

Product Maturity Phase

The product has attained upper limits of its demand cycle. Continued advertising will have no appreciable effect on sales.

Product Stability Or Decline

The phase where a product has crossed its highest demand. From this point of time onwards, demand will either remain static or decline. The emergence of a newer and better product catalyzes this phase.

It can be wrong to think that a product after the maturity phase no longer remains profit-generating. Additional innovations into the same product may extend its existence. Most mature products remain a viable income source long after it is launched.

Product Recall

A product recall is an event when a company retrieves its products from the market. This is usually done in case of defective goods being sold. Compensation is given to the customer in such an event. Product recall adversely affects a company’s reputation in the market.


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Product. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. May 25, 2020 https://payrollheaven.com/define/product/.
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Product. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/product/ (accessed: May 25, 2020).
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Product. PayrollHeaven.com. Retrieved May 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/product/

Definition Sources


Definitions for Product are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th March, 2020 | 8 Views.