According to the product concept, buyers or consumers favor products with the highest levels of quality, performance, and features. In order to satisfy consumer demands and expectations, the best product must be offered, which is why the product concept is crucial. A product cannot succeed on its own; it requires other business variables, like marketing, distribution, sales, and service, among others. Product concept totally depends on the quality and usefulness of the product being sold to the consumer, and it also presupposes that the customer would desire and purchase the product due to its benefits at the price being supplied.
Importance of Product Concept
Using the product concept, a business may give the product a unique identity and enhance its usability and practical value so that the targeted customers can profit from it and ultimately purchase the product from the market.
One of a company’s market orientation and marketing techniques that it might use is the product concept. Other concepts include those for selling, producing, marketing, etc. Superior items provide a marketing pull that contributes to the brand’s success.
Innovation makes it possible to create new items with desirable features for consumers.
Example of Product Concept
A firm like Apple invests heavily in product concepts to deliver the finest products to customers. Apple products are thought to be of exceptionally high quality, with cutting-edge features and excellent performance. Customers chase after Apple items, which generates marketing pull.
Advantages & Disadvantages of Product Concept
The merits of the Product concept are:
- As businesses pledge to provide better products, which leads to innovations and ideas that are beneficial to everyone, innovation is increasingly based on product concepts.
- This philosophy, which simultaneously satisfies the demands and desires of the customer, is centered on quality.
- As rival companies compete to match the innovator’s efforts to provide the finest product, the overall bar for market offerings is raised.
The drawbacks are:
- As all producers want to provide the best product to the customer even though the demand can be satisfied, this results in expensive products for fundamental necessities.
- Customers require services and support in addition to products, thus concentrating simply on the attributes of the products itself may not result in a fully satisfying customer experience.
What is a product?
A product represents an item of value that satisfies the needs of the end user. Products or services, real or intangible, physical or psychological, are all possible. Customers and rival businesses rely heavily on the company’s offerings.
Layers or Levels of Product
Core or Generic Product: The primary need of the client is met by the raw product. The primary product is still in its undeveloped state, has no brand name, and is undifferentiated. For instance: One can eat the grain known as wheat.
Basic Product: The primary goods that set them apart from the competition become the fundamental goods. It gives the items certain crucial aspects, such as the brand name, packaging, and label, etc. For instance: wheat flour, Fortune Chakki Fresh Atta.
Expected Product: The essential features that clients desire are present in these items. Additionally, it has qualities that every product should have. For instance, wheat flour is used to make chapati.
Augmented Product: Companies give items unique features to set them apart from rival offerings. These additions are subject on the results of the product’s market research. They strive to provide their products a Unique Selling Proposition (USP). Brown bread and cookies, for instance.
Potential Product: It implies to possible future features that a product might have. These characteristics are influenced by the state of the economy and the market.
TYPES OF PRODUCTS
Products are divided into four classes mostly according to price range, brand similarity to competitors, and customer purchasing habits. Marketing personnel can create plans that specifically target the demands of consumers by classifying products.
When creating a marketing plan, it is essential to understand the classification of a product. Why? In any case, it informs you of the general attitude and actions that customers take in relation to your goods. With this information, you can create a marketing plan that will effectively reach your target audience. Additionally, it aids in choosing a reasonable marketing budget.
Say, for example, that your commodities fall into the category of “unsought goods”. This implies that in order to reach customers who might not have given your product or brand any thought, you will probably need to adopt a more aggressive marketing strategy. Consider funeral homes, life insurance providers, and charitable groups. Consumers typically don’t think about these first. As a result, these brands must exert a little more effort to draw consumers’ attention to themselves and to the advantages of their products or services.
Contrarily, consumer goods are highly visible and fiercely competitive. Before making a purchase, consumers frequently take their time comparing quality, price, and value. Building brand loyalty is essential for this category of products because of this.
As you can see, there are considerations for every product classification. You will be better able to advertise your goods if you are more familiar with consumer behavior and attitudes in that market.
Four Types of Products
Convenience goods: Convenience items are products that consumers frequently and thoughtlessly buy, similar to the Crest toothpaste example. Consumers often stick with the brands they chose unless they see a compelling reason to do otherwise, such as engaging marketing that entices them to try it or a convenient location near the checkout aisle.
These goods include common essentials like gum, toilet paper, soap, toothpaste, shampoo, and milk. You should take into account the fact that most individuals will purchase convenience goods on impulse while marketing them. Candy and gum are frequently seen in the front of a store because it may be a good idea to place these products close to the checkout area.
Cost and discounting are not significant decision factors when evaluating a purchase because the majority of convenience products are inexpensively priced. For a few cents less, I won’t switch the brand of toilet paper I use. Brand recognition is important for convenience goods. With this in mind, you should try to use large-scale campaigns to raise awareness of your business.
For instance, Charmin toilet paper is a well-known brand in the US, probably in part as a result of the company’s consistent and long-term advertising strategy, which dates back to the 1960s with the creation of the character “Mr. Whipple” who appeared in TV, print, and radio advertisements.
Shopping goods: Consumers often spend more time researching and comparing shopping goods before making a buy. They might be anything from more basic products like clothing and home furnishings to more expensive ones like vehicles and homes.
These are more expensive purchases that happen more infrequently. For instance, you will probably only buy a house a few times at most, whereas you will buy toilet paper repeatedly throughout your life. Due to the cost and importance of the purchase, you’ll also take your time thinking it over, visiting several open houses, and weighing the advantages and disadvantages of your potential choices.
For smaller goods, the same is true. This does not include buying a great pair of shoes for a special occasion if you have one coming up. Instead, you should put it on, decide whether the cost is justified, and perhaps even receive feedback from your loved ones. Invest in material that convinces your audience of the worth of your product when marketing a retail item. It’s crucial that your marketing materials highlight the ways in which your product stands out from the competition and the special benefits it offers customers.
In this product category, price also matters, thus advertising deals and discounts might draw customers to your brand.
Specialty goods: Customers often don’t feel the need to compare and think things over as much when purchasing specialty goods because there aren’t any other products like it on the market.
iPhones are a prime illustration of this. I’ve been buying new iPhones for years, and because of Apple’s distinctive brand identification and the impression I have of the caliber of its products, I haven’t stopped to think about other smartphone models.
You don’t necessarily need to spend a lot of effort persuading them that your product is superior to rivals when marketing a specialty good. They are already aware.
Instead, emphasize how your items are advancing and innovating regularly. By doing this, you can be sure that your customers will support your business. For instance, I might think about switching manufacturers if Apple ceased introducing new features and making laudable improvements to their iPhones. But I’ve been buying from them because they’ve impressed me time and time again.
Unsought goods: And lastly, unsought goods—items that consumers aren’t normally eager to purchase. Batteries, life insurance, and fire extinguishers are a few instances of unintended gifts.
Usually, people will purchase an unintended good because of fear or danger. You wouldn’t, for instance, search the market for the “new and best” fire extinguisher. Due to your concern about a potential fire, you would only buy one. On the other hand, some unwanted items, like batteries, are purchased merely because the previous stock of them ran out or expired. Focus on reminding consumers of the presence of your goods and persuading them that buying your product will give them a greater sense of security while promoting an unwelcome offering.