Have you ever wondered how consumers select the products they buy? Why do some brands have much higher sales figures in a particular niche than others? The answer lies in the product concept.
This article will help you understand its definition and why it matters.
What Is the Product Concept?
It is the assumption that customers are more likely to buy a better product or service. Other customers are more likely to buy a product for its ease of use and simplicity.
The product concept is essential because it outlines the marketing strategy to attract a product’s target demographic. Marketing and product development teams use this principle in their research.
Quality, innovation, and performance are the metrics that differentiate a superior product from its counterparts. Let’s delve into these concepts further.
Quality is the collection of all the features and characteristics that affect a product’s ability to satisfy customer requirements and preferences.
If a company introduces a new type of soda, its quality depends on its taste and its effectiveness in quenching thirst.
If a company produces a dishwashing liquid, its effectiveness depends on how well it removes dirt and oil from dishes.
Product innovation refers to the efforts of a business to introduce new features and improve product functionality. The primary purpose of innovation is to develop new product ideas that customers may not know they need.
A prime example of innovation is Samsung’s introduction of foldable phones such as the Galaxy Flip and Galaxy Fold series. This new design generated enough hype for other brands to follow.
It refers to product performance in terms of sales volume-over-time and revenue. You can think of it as customers voting for the best product with their money. Naturally, performing products serve as the base model for the next generation of its product line.
Products with poor sell volumes are usually discontinued.
For example, The Chevy Cobalt was notorious for its ignition coil failure, faulty turn signals, shifting problems, power steering problems, and gas cap failure. The Chevy Cobalt was selling well until people started experiencing numerous issues with the car.
The Chevy Cobalt was discontinued in 2010.
Quality Over Quantity
Companies that adopt product concepts tend to create great products overall. This approach considers customer demand and does its best to fulfill customer requests. Companies take the time to test their products and change anything that might reduce product quality.
Adopting a product concept approach often attracts and retains loyal customers.
Rouses Customer Curiosity
Top-quality products tend to enjoy better media coverage than their budget counterparts. It means prospective customers are more likely to follow luxury products online.
You can’t deny that expensive products are also viewed as status symbols. A luxury brand’s reputation alone can lead to a sale.
High Revenue Margins
Manufacturers can price top-grade products according to market demand. These products often yield more significant revenue margins than other product lines.
The cost of top-grade products may not appeal to some customers. Some of them don’t want to own the best possible product on the market and are happy with budget options.
Not all features provide value to customers. Some people don’t need technological advancements. Others may view a particular product as a tool. (i.e., as long as it works, it’s good.)
Some companies include product features that are irrelevant to their target demographic.
Importance of Concept of Product
The concept of product is crucial because it serves as a way to determine your production and marketing process. It provides information on product aspects to focus on.
It also helps management plan to present their product idea through content on various platforms.
Information is a valuable resource. The concept of product gives companies insights into the most effective way to approach their target market. It shows marketers and product developers what customers need from a product or service. It serves as the framework for a successful product launch.
You may also want to look up other market concepts such as selling, production, marketing, and societal marketing. Understanding all market concepts is important in developing a strategy for different market conditions.
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