Yes, the dot product $\vec a\cdot \vec b$ mathematically symbolizes the projection of one vector onto the other. In other words: The dot product multiplies the parallel components:
A cross product $\vec a\times \vec b$ is somewhat the opposite. The (length of) a cross-product is the perpendicular components multiplied.
You will often see them mathematically in these forms:
$$\vec a\cdot \vec b=a_\parallel b=a b_\parallel=ab\cos(\theta)$$
$$|\vec a\times \vec b|=a_\perp b=a b_\perp=ab\sin(\theta)$$
The last version in each line is convenient, since cosine takes care of parallel components and disregards the perpendicular ones, while sine does the opposite. $\theta$ is the angle between the two vectors.
These are merely mathematical inventions, yes. Nothing more. And they happen to be very useful in describing many physical phenomena, because many things in physical only happen between parallel or perpendicular components.
For example:
- To tighten a screw with a wrench, you pull perpendicular - pulling parallel in the wrench will not make it turn (it will just detach). Therefore moment is defined with a cross product: $\vec \tau = \vec F \times \vec r$.
- Work is energy added when pushing something i.e. If you push from the side on a toy train moving in its track, then you are not adding any energy to it's motion. It doesn't move sideways (the track holds it in place) and your effort was worthless. Only if you push along with the motion will you add energy and make it speed up. Therefore work is a defined as a dot product $W=\vec F\cdot \vec s$.
In the toy train example, if you push opposite to the motion, then you take energy out of the train and slow it down. You are doing work, but that work is negative.
As you see, all parallel forces do work (negative if antiparallel), while all sideways forces do nothing at all. If you push at an angle, then only the parallel component of your force has an influence. All this is included in the mathematical cosine expression of the dot product $W=Fs\;\cos(\theta)$, because a cosine is zero, when the angle is $90^\circ$.