Meaning and Importance of Products - Principles of Marketing | Principles of Marketing - B Com PDF Download

Product Concept

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.

Definition

A product is an item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at a price. The price that can be charged depends on the market, the quality, the marketing and the segment that is targeted. Each product has a useful life after which it needs replacement, and a life cycle after which it has to be re-invented. In FMCG parlance, a brand can be revamped, re-launched or extended to make it more relevant to the segment and times, often keeping the product almost the same.

Importance of Product Concept

• 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.

Example of Product Concept: 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.

Types of consumer products

• Convenience products: A convenience product is typically purchased often and appeals to a large market base. Consumers regularly buy convenience products to meet their needs and tend to have little concern for where they buy the product.
  For example: A candy bar would be considered a convenience product. This product is available in a variety of places, including gas stations, vending machines and grocery stores. The consumer likely isn't too picky about where they would buy the product and probably won't develop loyalty to a particular store when it comes to purchasing candy bars. Additionally, customers rarely spend much time comparing one candy bar to another but instead purchase candy bars with little thought.
  
• Specialty products: Specialty products are those that have unique characteristics or are associated with a particular brand. People who purchase specialty products carefully source these products and develop loyalty to the company that produces or sells them. Specialty products are typically priced higher than other types of products. Hence, many consumers put more stock in buying this type of product due to its perceived value and ticket price.
  For example: A Porsche is an example of a specialty product. This product can only be purchased through a Porsche dealership and is known for its unique characteristics. Porsche vehicles are also specifically recognizable due to the storied Porsche brand. Consumers spend a considerable amount of time sourcing Porsches and are willing to pay a higher price for this car than competing vehicle brands.
  
• Shopping products: Shopping products are products that are purchased less frequently than convenience products but more frequently than speciality products. These products can range in price, style and quality, and consumers often spend a great deal of time comparing shopping products before purchasing them. Shopping products are available in fewer locations than convenience products because they are distributed selectively.
  For example: An airline ticket is a common shopping product. Airline tickets are only available through airline companies and can vary greatly in price. Most consumers will spend time comparing airline tickets to choose which one best meets their needs and fits within their budget.
  
• Unsought products: Unsought products are those that consumers typically don't buy or wouldn't consider purchasing regularly. Most people who purchase unsought products do not plan the purchase ahead of time. Often, a consumer doesn't even know that the product exists until the need arises to purchase it. Prices of unsought products can vary greatly and they typically are not offered by a wide variety of sellers.
  For example: The services provided by certain lawyers are an example of unsought products. Most individuals do not think about paying a family lawyer until they decide to draft a will or need to contest one, or need legal advice for divorce, child custody or adoption. If you get injured in a car accident or on the job due to someone else’s negligence, you might seek a personal injury lawyer to help you get compensation for medical care, lost wages, or pain and suffering.
  

Advantages & Disadvantages of Product Concept

The merits of Product concept are

• Innovation is more using Product Concept as the companies vouch to make better products leading to innovations and inventions which is good for everyone.
• Quality is the central focus of this concept which fulfills the needs and wants of the customer at the same time.
• 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

• 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.
• Customers need supports, service along with a product, so just focusing only on product features can lead to not providing the holistic customer experience.

Description

A product needs to be relevant: the users must have an immediate use for it. A product needs to be functionally able to do what it is supposed to, and do it with a good quality.

• A product needs to be communicated: Users and potential users must know why they need to use it, what benefits they can derive from it, and what it does difference it does to their lives. Advertising and 'brand building' best do this.
• A product needs a name: a name that people remember and relate to. A product with a name becomes a brand. It helps it stand out from the clutter of products and names.
• A product should be adaptable: with trends, time and change in segments, the product should lend itself to adaptation to make it more relevant and maintain its revenue stream.