Answer Posted / rajesh kushwaha

It should be Software Project and Software Product.

Software Project is done for a specific clients of your
company. For this some of the testing may be done at
client's side. For example, Acceptance Testing..

Software Product is not done for a single client and it is
released as a product of the company.

===
Software Product Development is being proactive and
Software Application Development is being reactive.
In both cases you will be addressing a specific need for
sure.
For an application there is already a client / need that
has been given to you and you react to it - under the
constraints and environment that is assigned. For product
development you understand that developing such a product
will meet a specific need - you typically don't restrict to
hardware/software constraints or environment. The need you
are addressing with a product predominantly is a latent
need and hence is less customized unlike an application
where Customization takes the driver's seat.

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