Product Concept

What is the product concept?

Product concept (also known as concept statement) is the description of or vision for a service or product, usually developed in an early phase of its lifecycle.

Concepts are developed long before the design and engineering phase. They take into consideration market research, customer experiences, features of products, fit between product and market, costs, etc. to bring them to life.

It is the last component of the concept. The product concept statement explains the strategy of the product, its vision and purpose and how the company and customers will benefit.

What is included in a product concept statement?

Product concept statements usually cover the following elements.

• Name of the product or service
• Segment or target users
• What is the target audience’s use of the product/service?
• How does the product or service address problems and pain points?
• What business objectives does the product or service support?
• Unique selling points of the concept
• Vision and strategy of the overall user experience

The most important thing is that great concepts are based on a need or market. Listen to the people, rather than building something you believe is needed by the market. You must conduct market research, product-market research in order to identify opportunities and needs.

What is the importance of a concept for a product?

Product concepts are a good way to gain the support of senior stakeholders before you start any work.

Sharing product concepts as soon as possible can be beneficial for discussions and improvement.

The product concepts can also be used as a way to check in. By returning to the original concept, the team can see if they are still on the right track.

We’ll discuss the different types of product on the market in order to align your concept with the needs of consumers.

Different types of products

Convenience Products-A convenience product is one that saves the customer time and energy. Customers buy convenience products frequently and instantly, with little effort. Convenience products include soap, batteries, toilet paper and other items.

Products– These products have unique features or are associated with a particular brand. They won’t accept any other products. Examples include high-end clothing, luxurious vehicles and paintings.

Brand Products — The idea behind brand products is very simple. It is based on the sentiment that the positive connotations of the product will make a customer more inclined to buy it. Brand recognition increases the likelihood of success for a product idea. This is not only from the perspective of design or market potential, but also because they have established themselves.

Product concepts have many advantages

Product concepts have many advantages:

• Quantity over quality

The balance between high-quality, performance and accessibility is the key to product concepts. You can evaluate and assess new product ideas as they are presented, and discard low-quality ones much sooner in the development process. You can then only produce product concepts with the highest likelihood of success, e.g. Align with the needs of customers and business objectives.

• Develop curiosity

Consumers are always interested when established brands introduce new product concepts. They want to see what’s new and purchase it to satisfy their curiosity. Brands keep their presence in media as long as they can to raise awareness and increase the perceived value of the product.

• Increase margins

A company that has developed a solid product concept, and successfully marketed it to their target market (e.g. They can also charge higher prices if they have demonstrated the high-quality of their product, and the functional value. Quality over quantity should be the goal. If consumers know this (and have it ingrained in their mind), they will spend more.

Product concepts: Disadvantages

Some of the disadvantages to product concept include:

• Features that are irrelevant and unpractical

Early product concepts are prone to going off course in their quest for differentiation and innovation. This can lead them to miss the needs of customers. It’s crucial to keep the focus on functionality, even if you have unique features or better quality. What problem are you trying to solve by creating the concept for the product?

• Concerns about price

On many markets, the consumer is very concerned with price. Because they can afford it, consumers prefer to buy cheaper products than those of higher quality. If you are targeting a market segment or target audience that is price conscious, create a lighter version of the product (when possible).