One of the main functions of marketing is to achieve the desired exchanges with the help of target markets. The question is what marketing philosophy should follow to streamline the desired objectives. Furthermore, what should be the interest organization, customers, and society?
Today, we will discuss product concept, pros and cons, and how it’s different from the production concept.
What is Product Concept?
The product concept is on the assumption that the customers would choose the product if it has better quality, features, and performance. The reason product concept is important is because it makes it necessary for you to meet the demands and wishes of customers by delivering the best product. Sales, marketing, and distribution are also important factors in the product concept.
Under the product concept, a company can not only give identity to the product but also adds functional values and usability so that a customer can buy it in the market to take maximum benefits. The product concept falls under the category of marketing and orientation strategy that many businesses and companies follow. A quality product attracts a great market share and builds a strong brand image.
Historical Background of Product Concept
The first thirty years of 20th century, most of the manufacturers and industrialist were following the production concept of more supply creates demand. In the 1930s, manufacturers were facing the challenge of winning the customers. With the passage of time, they realized that the customers were willing to pay more for the better products. That’s how the product concept came into existence.
The product concept follows the simple formula of continuously improving your product at a low cost. The followers of this concept often take suggestions from their customers to improve their products. Most importantly, they do not compare their improved product changes with their competitors. Sometime they prefer and love the quality of their product so much and start to behave idealistically.
A famous quote from general motors and it’s relevant to the product concept to some extent;
“How can the public know what kind of car they want until they see what is available?”
The problem of marketing myopia arises when businesses and companies take this concept so seriously. As a result, the focus of innovation becomes limited to satisfy only the needs of customers.
Product Concept Vs Production Concept
Some of the main different between product concept and production concept are as follows;
|Basic||Product Concept||Production Concept|
|Focus||Delivering a quality product that would satisfy the needs & wants of customers.||Producing goods in a bulk quantity and pushing it in the market.|
|Means||Improve the quality of the goods/services continuously.||Supply in bulk into market, so that it would be easily available to the customers.|
|Ends||Earn profit by delivering and producing the quality products in the market.||Earn profit by manufacturing products at a mass scale.|
|Examples||Microsoft, Apple, Google, etc.||Amazon, Vivo, etc.|
Advantages of Product Concept
Some of the main advantages of product concepts are as follows;
Prefers Quality rather than Quantity
The most important and good thing about the product concept is that it prefers quality rather than quantity. The businesses and companies that follow this marketing philosophy, their primary focus is to manufacture a quality product/service with unique features and more benefits rather than the quantity. Their manufacturers do care about satisfying the needs and wishes of customers.
Every time a company launches a new product in the market, it creates and develops a curiosity in the minds of customers. They would like to purchase the product and checkout the new features to satisfy their curiosity. Companies and businesses maintain the spotlight in the media and keep circulating updates and rumors about the new product. How it would be different from the previous model.
Earn High Margin
The interesting thing about the product concept is that it allows companies to charge a higher price than the competitors in the market. The customers would be willing to pay for it. It’s because of the quality image that the company has created in the minds of customers. They believe that what this brand is offering, others can’t.
Disadvantages of Product Concept
Some of the main disadvantages of the product concept are as follows;
Price Conscious Customers
Marketers have observed a new phenomenon that the majority of the customers in some markets are price-conscious. They prefer the cheap product even it has the lowest quality. In other words, they do more care about the price rather than quality. The product concept is suitable in such a market where customers do care about the quality, and the price is secondary to them. It’s only possible when the economic conditions of the country are good.
Irrelevant and Impractical Features
In the race of becoming different and innovativeness, it seems as most of the companies have gone off track. Often they offer features that don’t have any use and value to the customers. For instance, if a person is thirsty and he needs water. All he needs is water. The shape, size, color, and material of the glass don’t matter to him.
Avoid the Interest of Consumers
Tech companies are competing with one another in the field of research and innovation. Sometimes their innovation and latest features don’t have anything to do with customers. They completely avoid the interests of customers, whether they would like it or not.
Examples of Product Concept
Apple is one of the world’s largest tech companies and it falls under the category of top 5 tech companies of the world. iPhone, TV, Store, Music, Videos, and iPad are some of the main products of Apple. The company also follows the product concept by the focus on delivering a quality product. The customer market of Apple doesn’t care about the price.
Gucci is one of the world’s leading luxury fashion brands. The company offers quality makeup, handbags, ready-to-wear clothes, shoes, fragrance, home decoration, and many other accessories. The brand also follows the product concept by offering the latest fashionable products to the customers. The customers are willing to pay a higher price for the Gucci products.
Louis Vuitton is also a French fashion brand. Luxury ready-to-wear watches, shoes, clothes, jewelry, sunglasses, accessories, leather goods, and books are some of the main products of Louis Vuitton. The company also provides quality products to its customers, and they’re willing to anything to get the Louis Vuitton product. Factors like quality, luxury, fashion, and status are more important to the customers of the brand than price.
After carefully studying the article, we have established the fact that the product concept is suitable for certain factors. Like where customers care about status, fashion, brand, and quality rather than the price of the product. But it isn’t suitable in the price-conscious market. Therefore, you have to keep in mind such factors before applying this philosophy onto your business. If your business is suitable for the product concept, follow it. Otherwise, it’s better if you look for other options.