'In a modern competitive landscape, the interaction of supply and demand determines the price at which quantity provided equals to quantity…

Business products possess certain inherent characteristics that businesses must manage effectively to maintain profitability in a competitive market where price is determined by the interaction of supply and demand. Characteristics of Business Products 1. Products are Tangible or Intangible: A product may be tangible such as a car, mobile phone or table or intangible such as banking, insurance or telecom services. Businesses must manage both types efficiently to satisfy customer requirements. 2. Product has a Price: Every product has a price determined by market forces of supply and demand. The market price is the price at which quantity supplied equals quantity demanded. In the present competitive environment, businesses often cannot fix prices by simply adding profit margins over cost. Therefore, firms need to control and reduce costs to maintain profitability. 3. Products have Features that Deliver Satisfaction: Products possess features relating to design, quality, function and customer experience that provide value and satisfaction to consumers. Businesses continuously improve product features to optimise customer experience and differentiate products from competitors. 4. Product is Pivotal for Business: Product is the centre around which all strategic and operational activities revolve, including production, quality control, marketing, logistics and sales. Thus, product acts as the driving force behind business operations and profitability. 5. Product has a Useful Life: Every product has a useful life and product life cycle after which it may require replacement, reinvention or discontinuation. Businesses need to innovate and update products continuously to remain competitive and profitable in changing market conditions.