How Product Concept Affects New Product Demand

Have you ever wondered how consumers select the products they…

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.

White Macbook, iPhone, and Apple watch on a white table.
Photo by Michał Kubalczyk on Unsplash

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

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.

Innovation

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.

Performance

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.

Benefits

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.

Limitations

Price-Conscious Consumers

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.

Gimmicky Features

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.

Final Thoughts

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.

Frequently asked questions

What is the concept of new product?

‘New products’ can be products that you have never produced or sold before but which have been shared with others. For the first time, products were introduced and launched. Some products may be entirely original or existing products that you have modified and improved.

What is the product concept in marketing?

The product concept reflects the philosophy that customers will rely on quality, performance, or innovation-related features. It incorporates creative and innovative ideas that are new or improved versions of existing products. Business Studies.

What do you think about the product concept?

Let’s talk about the basics of a product concept: a concept is the summary of your idea and how it will benefit both you and your business. Think about it as how you define everything that goes into creating a new product or feature.

Why is product concept important in new product development?

Everyone’s product is founded on a concept. It’s a detailed description of what you are going to produce, who it is for, the problems it will solve, how it will work, how much it will cost, and how it is going to be produced. To ensure your idea is ready to go on sale, it is crucial to test it thoroughly with real customers.

What is concept development in new product development process?

Concept development helps you assess your customers’ reactions to your product or service before you launch it. It is a structured method for developing an idea, seeing if customers like it, and assessing what kind of customers are willing to buy it.

What is product concept give example?

Apple, for instance, places great value on product concepts. The company provides its customers with the best products. The Apple products are of exceptional quality, cutting-edge features, and outstanding performance. In the marketing world, Apple’s products attract a lot of attention.

What are the advantages and disadvantages of product concept?

This idea of a product ensures that you are ahead of the competition with continuous innovation and improvements. Too narrowly focused on your product may lead to “marketing myopia”, which is another disadvantage.

What is the importance of product concept?

As a result of the product concept, customers would choose the product if it has better quality, features, and performance. The reason product concept is important is that it makes it necessary for you to meet the demands and wishes of customers by offering the best products.

What is the most important part of product development?

Developing new products involves conducting research and testing. A product may seem smart at its conception, but an examination deeper might reveal significant vulnerabilities. There may be a case where another company tried to release a similar product with disappointing results.

How important is it to know the concepts of developing a business or product?

This skill is essential when selling products. Understanding your products’ features allows you to present their benefits with confidence and confidence. The customers respond to enthusiastic sales staff who are passionate about their products and eager to share their benefits with them.

Why concept selection is the most crucial phase of the product development process?

Concept selection plays an important role in the product development process due to its influence on all subsequent phases related to cost, quality, and performance of the end-product.

How Product Concept Affects New Product Demand

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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