Name: Karl Jason Comin

Subject: BM 215 Philosophy of Business

Philosophy of the Product – The Material Cause of business

(part 1)

I. Introduction

Product is the material cause of business first as the subject matter of the

business concept and second, as the direct object of the business act. As the subject

matter of the business concept, product is what business deals with and as such

initially provides the basic reason for the existence of business and the motivation for

business to play its role as discipline. It is an element of the marketing mix where it

serves as a set of strategies in the interface between the marketing mix and the

market.

II. Summary of the Topics/Topics Digest

The product is the core of the business process, all production and marketing

mix and the marketing strategies are drawn from and are extensions of the product

strategies and therefore revolve around the product.

There are various ways of defining product, either essentially or attributively,

among these are the following:

A) Anything that can be offered to the market to satisfy a want and need.

B) A bundle of utility that the buyer receives as a result of lease or purchase

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C) A set of tangible physical and chemical attributes assembled in an identifiable

form.

D) Anything offered for sale for the purpose of satisfying a want or need.

E) A combination of functional and psychological features that provides form utility

entire sets of benefits that offered in an exchange.

F) The result of whatever value is added to a material as a consequence of

enterprise’s manufacturing, sorting and assembly process.

These definitions give two basic elements in common and these are

something that can be offered in an exchange and intended to satisfy human needs.

There is a goodness principle in the concept, a goodness principle inherent

and universally present in all things. Products are called goods they are the things

that provide what is good for man and society. It is the concept of goodness that

gives the products their meaning as supports to man’s efforts towards his completion

as a person. This goodness is two-fold:

1) Intrinsic Goodness – is natural to the things itself and to its natural function. It is

also intrinsic to the product is the goodness it possesses in its matter.

2) Extrinsic Goodness – a thing is its value to condition outside itself, through which

the thing relates to its environment.

The concept of economic carried with it the distinction between economic

goods and non-economic goods. Economic goods are popularly defined as the study

of how scarce resources are allocated in society of unlimited wants. The

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classification “economic” in “economic goods” suggests that goods falling under that

classification are scarce, and therefore possess value. There are two qualifying

characteristics under economic goods:

1) Utility – which refers to the usefulness of a products to a person based both on

how the product serves his purpose. It is also the capacity of a product to satisfy

human needs through the practical use or application institution.

2) Scarcity – is a basic fact underlying all economic activities and gives rise to the

needs for allocating economic resources. It necessarily implies availability, meaning

that the scarce of commodity, while being scarce is available. If it is not available, it

loses its utility and its capacity to create its demand value.

Products or economic goods are found in various forms coming from the

various sources. They come from inanimate form of animate or from the natural

elements from the air. They may be classified according to their hierarchical

subordination from the highest order to the lowest. Highest order is called product

genus to which a group of homogenous product belongs. Product species is the

product line groups. Product type would refer to the mode of product presentation

and product brand identifies the product by its producer given name.

Products in turn, are two types, namely goods and services. Goods focus in

the material here-and now product that are sometimes referred to as “commodities”.

They are either tangible or intangible goods. These are further classified into

consumer goods, industrial goods and capital goods. While intangible goods are

those do not possess the tangible or physical features of materials and these are

ideas, information, and services.

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 Noneconomic goods are those consist in the free gifts of nature and come in

abundant supply and are therefore not characterized by scarcity although the

element of utility may be presented if man finds use for them. The absence of both or

of either of scarcity and utility destroys the economic character and renders the

goods noneconomic. These concept have the following premises:

A) The distinction between economic goods and noneconomic goods is not absolute.

B) Utility is directly proportional to needs; scarcity is inversely proportional to

availability.

C) Scarcity is related to availability by an inverse

D) Utility is directly proportional to needs: scarcity is inversely proportional to

availability.

Service as commodities are industrial services that classify as intangible

goods. Consultancy services that inputs to the top level management function of a

business firm, administrative support services that are on the lower levels of the

organization, and personal client services are provided by business firm.

Product has three dimensions that give it its basic and added values and

these are essential product which refers to satisfy human needs. Material product

refers to the product as actually seen by the customers and touches it. And extended

product in which a product is the set of marginal attributes found its secondary utility,

augmenting features, and potential for accepting further improvements quantitatively

and qualitatively.

III. Recommendations
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 The product of the business is the one who generates profits and income. In

order for the company to survive product has to be more attractive to the customer to

satisfy them with their wants and needs. The company should inherent and have the

passion about the philosophy of its product to develop and to engage another level.

To drive results to be successful, product should be consists of the basic elements in

common that it can be offered in an exchange and intended to satisfy human needs.

IV. Conclusion

Products and its nature have its capacities to survive that are clinging for the

business that expected to have good results towards success. Therefore, products

are the core of the business process. So, it should be viewed objectively and

subjectively to the customers to satisfy them. Then, from this point of view customers

will love you of what you produce for what they think is essential for them. Products

should also be seen, touched or hold for the customers to think that you are a good

source/ sources for them. And other thing is to exert extra mile effort of what you

produce or to extend your products to its other functions or features that the

customers are searching for their wants.