Final answer:
The product is the firm's tangible offering to the market including product quality, design, features, and packaging. It's a key element in differentiating a firm's offerings from its competitors in addition to location, intangible aspects, and perceptions.
Step-by-step explanation:
The firm's tangible offering to the market that includes benefits such as product quality, design, features, and packaging is known as the product. These physical aspects can range from features advertised, such as an unbreakable bottle or a nonstick surface, to practical benefits like being freezer-to-microwave safe. The product is what a firm tries to differentiate from competitors through various means, including the physical attributes, location of sale, intangible aspects like guarantees or a reputation for quality, and perceptions created by advertising.
The location can also be a strategic advantage for a firm; for example, a gas station at a busy intersection is likely to sell more fuel due to high visibility and traffic. Similarly, a supplier to an automobile manufacturer will benefit from being close to the car factory. These are examples of how the location of where the product is sold can affect a firm's success.