Product Concept states that customers or consumers prefer product which is of the highest quality, performance and features. Product concept is a mandatory concept in order to give the best possible product to the customer as per the demand and expectation. A product is not complete in itself and requires other factors of business like marketing, distribution, sales, service etc. to be successful. Product concept relies completely on the superiority and functional value of the product being sold to the customer and assumes that the customer would also demand and buy the product because of its values for the money offered.
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Using Product concept, a company can give identity to the product and can add functional value and usability so that the intended customers can derive this benefit and eventually buy the product in the market.
Product concept is one of the orientation strategies & marketing strategies towards market which a company can follow. Other being Selling Concept, Production Concept, Marketing Concept etc. Marketing Pull is generated because of superior products which helps in success of the brand.
Innovation helps to get new products with features which customers would like.
Apple is one company which works highly on product concept to get the best products to their consumers. Apple's products are perceived to be very high quality with innovative features and great performance. Customers go after the products of Apple and that creates a marketing pull.
The merits of Product concept are :
1. Innovation is more using Product Concept as the companies vouch to make better products leading to innovations and inventions which is good for everyone
2. Quality is the central focus of this concept which fulfills the needs and wants of the customer at the same time
3. It raises the overall bench mark of the offerings in the market as competitors also try to come to the same level as the innovator which tries to give the best product
The drawbacks are:
1. Leads to expensive products for basic needs as all manufacturers try to give best possible product to the customer even though the demand can be fulfilled
2. Customers need supports, service along with a product, so just focusing only on product features can lead to not providing the holistic customer experience.
Hence, this concludes the definition of Product Concept along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.
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