Do you think product quality is the main factor people purchase products? Let’s find out what the product concept of marketing says about this.
What is a Product Concept?
The product concept is the marketing philosophy that believes consumers will prefer the products which have the highest quality, features, and performance at given prices. It assumes customers respond to good quality products that are reasonably priced.
The product concepts emphasize companies in making quality products and continuously adding additional features. You should concentrate on producing high-quality products, that should be innovative, long-lasting, and may include warranties, and other additional features. It states quality products do not take much effort to be sold. Take the example of Apple (iPhone).
This marketing concept’s underlying beliefs are two:
- Consumers prefer to buy quality products from competing brands and low-quality products are avoided.
- While buying consumers try to know the quality and feature differences of the competing brands.
The product concept came into existence almost at the same time as the production concept i.e. around the 1930s. When the era of production concept started to end companies struggled to sell low-priced and low-quality products. They began to feel that the customers would pay even more when the product was quality and reasonably priced.
It strongly focuses on producing quality products and states figure out and produce products early that people will love later. A famous quote from General Motors best fits here is “How can the public know what kind of car they want until they see what is available?” But this concept does not consider customers’ preferences which may be its weak point.
Characteristics of Product Concept
The common features of the product concept of marketing include.
Related: Selling Concept of Marketing
This marketing concept always puts emphasis on the making of quality products. Your business should be focused on product quality which is superior to competitors. In fact, in this modern time making quality products is compulsory to stand out in the market and be competitive.
The product concept is one of the marketing concepts or philosophies like production concept, selling concept, marketing concept, societal concept, and holistic concept. Its goal is also to bring profit to the firm in the end.
It is a proactive marketing concept. Meaning that it forces companies to be active and respond before the event happens. It states you should be updated about the market situation and trends and make the product beforehand that people will like and accept in the future.
Along with producing quality products this marketing philosophy also states that companies should be continuously modifying and improving their products. If so, you should regularly check the market situations, modify products, and add innovative features that guarantee the same performance consistently.
Neglects Customers Preference
Although this philosophy is fit to satisfy customers’ needs and give prestige it neglects their preferences. Meaning that it urges companies to produce products without consulting or considering customers’ preferences. And believes that when the product has quality people will eventually like it and accept it.
Quality is a Key Marketing Variable
If you see the production concept of marketing it believes the price is the key marketing variable but according to the product concept of marketing, quality is the key marketing variable. It explains buyers prefer quality over price and believes the buyers are quality-conscious.
Related: Societal Marketing Concept
4 Principles of Product Concept
The principles of a product concept or philosophy of marketing state how this concept works and how it makes profits for the business. Below the picture states the functioning of the product concept.
While adopting this product philosophy of marketing you should follow these four principles.
Marketers adopting this marketing concept should first establish a factory or a company to produce the desired products.
In the second principle of the product concept, you should produce a product that has quality. Your focus should be on product quality that is high-performing, and durable, or you can add some warranty features. You must hire skilled design engineers who have a key role in the organization to make high-performing products.
High Quality, Innovation, and Performace Guarantee
The third principle requires, that your product must have high quality, innovative features, and a performance guarantee. Your means of pushing the sales of the products should be through product quality and continuous improvement.
Also Read: The 5 Core Concepts of Marketing
Profit Through Well-Made Products
In the end, your product should ensure quality to the people. Your ultimate goal as a marketer should be to maximize profit through quality assurance to the consumers.
Advantages and Disadvantages of Product Concept
Following are the positive and negative aspects of the product concept of marketing.
- Quality Product – One of the positive aspects of this product philosophy is that it ensures product quality. It focuses more on product quality over quantity.
- Good For Quality Conscious People – Usually this concept is directed toward quality-sensitive customers. It attracts customers who prefer quality over quantity. And, this concept is best to satisfy quality-sensitive customers.
- High Profit – This marketing concept also ensures your business takes a high margin. Although making quality products cost high people with quality curiosity are willing to pay a higher price for such products. It lets companies charge higher prices than competitors.
- Develops Curiosity – Quality products also produce curiosity in people. Whenever new products are launched people seek to know new features, and performance, and satisfy their needs.
- Gain Competitive Position – The quality and innovative products help companies to build a unique position in the market. It is an effective tool to attract competitors’ clients and serve them better products.
- Not For Price-Conscious People – One of the disadvantages of the product concept is that it is not suitable for price-conscious and low-income people. Although it ensures reasonably priced products however the qualitative and innovative products are beyond the capacity of price-sensitive people.
- Neglects the Customer’s Preferences – As I have already stated one of the features of this product concept is that it neglects the customer’s preferences. This may be is the negative point of this marketing concept.
- Costly – This marketing concept is also costly. Since it requires studying the market trends, being proactive, and adding qualitative and innovative features it certainly increases the production costs. Most small and medium size businesses might not successfully adopt this strategy.
Examples of Product Concept
The companies who adopt the product concept of marketing do not sell the products they sell feelings, prestige, image, luxury, and status. Apple sells exclusivity, not technology, Mercedes sells status, not cars, and Gucci and Louis Vuitton sell luxury fashion, not clothes. This means that companies who apply this marketing philosophy just do not sell products they sell beyond the products.
Read Next: The 6 Marketing Philosophies