Every product starts with a product concept. It is then modified according to the vision of the organization and the feasibility of the product in the market.
In this short article, we will cover all you need to know about a product concept.
- Why do organizations develop a product concept?
- A great product concept example
- Understanding product concept in marketing
- Final words – concept of product development
Why do organizations develop a product’s concept?
The concept of product design is essential to product development. It is not merely an idea based on a lightbulb moment. The meaning of a concept is a vision or a description of a product that meets the needs of the customer. So, it takes a lot of factors into account including:
- Market analysis
- Customer needs
- Competitor weaknesses
- Product features
- Product cost
Here is how the concept statement or description helps the organization:
1. A clear starting point
When an idea is formed based on these factors, it provides a starting point for organizations to work towards a prototype and modify the product to perfect it according to the customer’s demands.
A simple definition might make it seem like just a fleeting idea, but in reality, a product concept should include all or most of the following things:
- Product name
- Product features
- Target market
- Intended use
- Unique selling point
- Manufacturing strategy
- The pricing strategy
- Connection to the organizational vision
2. Analyzing the market fit
Once the concept is ready, it can be forwarded for product concept testing where a few people belonging to the target audience test the product and give their feedback.
A great concept example
To explain the concept better, here is an example of a concept for a noodles brand:
Noodo is an instant noodles brand in a small market. With the young audience open to new tastes and fond of Korean noodles, Noodo is losing market share. Although these imported Korean noodles are expensive, the young audience opts for them due to their taste. Many youngsters who are fans of Korean media opt for these noodles because of the country-of-origin effect.
An example
Noodo decides to bring its own Korean flavor variants to the market. It develops a concept where it lists the flavors that it will launch. It also develops the idea of the marketing campaign and the pricing strategy.
Once the prototype is developed, Noodo invites some people belonging to the target audience to the tasting. It finds that the target audience is consistently comparing the noodle flavors to Korean noodles. Noodo decides not to play on the “Korean noodles” theme and instead launches new flavors to appeal to an audience that is open to new tastes and wants affordable options.
This concept and testing check all the boxes because it allows Noodo to identify that the country-of-origin effect is too strong a factor to beat with a “Noodo Korean variant.”
Understanding product concept in marketing
A concept could be based on different concepts. One concept could be the improvement of an existing product. Another concept could be based on production—a product to maximize production efficiency.
But what is a concept in marketing?
To answer this question, you should understand the marketing concept. Marketing is all about customer needs and satisfaction. So, a successful concept in marketing would mean a product that is developed keeping in mind the customer’s pain points, needs, and satisfaction.
For a concept based on marketing, market research is one of the crucial factors in identifying the customer’s needs and developing a concept that meets those needs.
There are other forms of concept including:
- Innovative concept – new features and functionalities are the key to product success.
- Social marketing concept – sustainable practices should be a core of the concept.
- Production concept – to maximize production efficiency. Relevant for companies wanting to lower costs.
Final words – Concept product development
A product concept is a statement or at times, a description of the product features, its target market, its intended use, the USP, the manufacturing strategy, and the pricing strategy. However, concepts are based on other different concepts including innovation, production, marketing, and social marketing.
A concept is important to an organization because it provides it with a clear starting point for product development and is a great way to assess the product-market fit before investing in production.
Pimberly’s product information management (PIM) allows you to track your concept’s performance and pull it from or push it into the market strategically.
