Product Concept: What Is It? And How Can You Best Use It?

As consumers we face lots of daily choices. But have you ever wondered why we choose one product over another?

Well, that all starts with a product concept.

So, what is a product concept? And how can it influence the behaviour of consumers?

To find out more about this, we’ll be exploring this in more detail next.

What is product concept?

A product concept essentially refers to the core idea and functionality of a product. This is the features and attributes that make that product unique and valuable. In short, a product concept guides the development and marketing of a product.

Having a clear product concept can help put you on a growth path. This is because it helps guide the entire product process, from its initial creation to telling people why they need it.

Its key components include:

Product concept statement

This is a short, engaging summary of your product’s key points – a bit like a movie trailer, but for your product.

Diverse approaches

There can be different ways to approaching a product concept. Some may prioritise efficient production, while others may be more focused on consumer-centric marketing strategies.

Strategic importance

Another way to think about a product concept, is to imagine you’re telling a story. Here a good product concept is the plot twist that keeps people interested and helps build their trust and loyalty.

We’ll now look at these components in a bit more detail.

What is a product concept statement?

Think back to when you were at college or university. No matter what course you were enrolled on, you would have had some sort of syllabus to follow. This would give you a more detailed outline of your area of study including any coursework you would need to do.

Similarly, a product concept statement should provide a more detailed overview of that product including its core attributes, any unique features and the value if offers its target audience.

Components of a product concept statement

Purpose

Central to the product concept statement is its purpose. This is all about clearly articulating the product’s primary goal or objective. It's the foundation that sets the direction for the entire product development process.

Target audience

The next crucial thing is to identify the specific audience for that product. This is about identifying the demographic or market segment the product intends to serve.

Once you understand your target audience, it can help you tailor features and marketing strategies to better meet their needs and preferences.

Features

The ability to highlight any distinctive product features is also pivotal, as this is what helps set it apart from any other similar products in the market. Make sure to list out such features in your own product, in order to showcase its unique selling points.

Value proposition

To communicate the product’s unique benefits to consumers, you’ll need to be able to articulate its value proposition. In doing so, this will help customers to choose your product over any alternatives that are available.

Example of a product concept statement

Consider this product concept pitch from a manufacturer of accessories for tea drinking:

Our Tea-In-One solution is aimed at adult tea drinkers who prefer the quality of loose-leaf tea over tea bags, but without the often time-consuming, fiddly and messy process of making loose-leaf tea with traditional tea straining equipment. (This is the target audience and issue they’re trying to overcome).

Our Tea-in-One solution combines a tea mug and strainer in one product. The mug is ceramic, while the strainer is made from silicone, so that the product is dishwasher and microwave safe. The concave lid of the mug can be removed and turned into a resting spot for a strainer, that has ample space for collecting liquid. To keep the tea hot, the mug is also double walled, offering insulation that allows the drinker to enjoy their tea at a leisurely pace. (These are the product’s features).

The design and features of the Tea-in-One solution, remove the flaws commonly associated with preparing and drinking loose-leaf tea with traditional tea straining equipment. Subsequently, the user now has a more enjoyable drinking experience, which they can take at a leisurely pace, while still benefiting from tea that remains hot throughout. (This is the value proposition).

Types of product concepts

Having outlined an example of a product concept statement, it’s important to point out that there are different types of product concepts.

Here are some common product concepts that that are vital to any brand’s success and some key characteristics that are intrinsic to each approach.

Production concept: maximising production efficiency

• Organisations go big on production, aiming for lower costs from large-scale manufacturing
• This approach assumes consumers prefer products that are widely available and budget friendly
• This product concept is typically seen in industries where products are standardised and consumer preferences are straightforward, like basic commodities

Marketing concept: consumer needs and satisfaction

• This approach is all about understanding consumers’ wants and tailoring products to meet those needs
• In-depth market research is crucial to identify and respond to changing customer preferences and can be carried out with a variety of different surveys ranging from customer satisfaction to brand awareness surveys
• Under this concept organisations strive to build lasting customer relationships by prioritising their needs

Product concept: product features and quality

• Here preference is given to delivering standout features and outstanding quality
• Innovation is paramount in order to create products that stand out in the market
• The belief here is that consumers select products based on their quality and attributes

Societal marketing concept: social and environmental responsibility

• Organisations think about the broader impact of their products on society and the wider environment
• Here the integration of ethical and sustainable practices will form a core part of their business model
• Organisations will actively engage in socially responsible initiatives and support for environmental causes

Selling concept: aggressive selling and promotion

• Under this concept the belief is that consumers won’t buy enough without substantial promotional efforts
• There is an over reliance on advertising, promotions and persuasive sales tactics
• This approach is typically suitable for products where the ability to convince consumers is crucial as a result of stiff competition or standardisation

Holistic concept: integrated approach which considers various factors

• Balancing consumer needs, efficiency and societal impact in business operations
• Appreciating the interconnectedness of economic, social and environmental factors
• Deliver sustainable and ethical practices for long-term success

Innovative concept: ongoing creation

• This approach is all about keeping ahead through continual product improvement
• The focus is to continually introduce new features and functionality
• There’s a heavy emphasis on research and development to meet changing consumer requirements

Customer-centric concept: developing strong customer relationships

• To foster brand loyalty this concept encourages greater prioritisation of customer experience and satisfaction
• Product and service personalisation based on individual customer preferences is crucial
• Customer support and engagement needs to be more responsive to address customer concerns and feedback

The importance of product concept

It’s also important to highlight how a product concept can help both those creating a product brand and those consumers who it’s targeted towards.

Key benefits include:

Guiding development and design

• A product concept can serve as a guiding star during the development phase
• It can help keep development teams on track, by ensuring that every feature and aspect aligns with its intended purpose and resonates with its target audience

Ensuring market relevance and differentiation

• A strong product concept can help ensure a product’s relevancy in the marketplace
• It can highlight unique features and qualities, setting the product apart from competitors and helping to create a distinctive market presence

Enabling a more effective marketing strategy

• A robust product concept helps form the basis of a more effective marketing strategy
• It helps provide marketers with the narrative and crucial selling points to communicate a product’s value proposition to its target audience

Strengthening customer satisfaction and loyalty

• The better a product concept is defined, the greater the customer satisfaction
• It also helps address specific needs and preferences, fostering a more positive user experience and building long-term customer loyalty

Streamlining decision-making

• A product concept can provide a roadmap for decision-making throughout the product development process
• It also helps streamline choices regarding features, design elements and overall strategy, while reducing the potential for ambiguity

Facilitating brand consistency

• A strong product concept can help facilitate brand consistency
• It helps align product offerings with overall brand identity, enabling a more cohesive and recognisable brand image in the minds of consumers

Enhancing risk mitigation

• A product concept that’s well-thought out helps pinpoint potential challenges and risks early in the development process
• It allows proactive problem-solving, which can reduce the likelihood of costly issues arising later during the product lifecycle

Enabling greater adaptability to market changes

• A more agile product concept enables better adaption to changing market trends and consumer preferences
• It allows organisations to pivot strategically, ensuring the product remains relevant in dynamic market conditions

Enhancing market trust

• If it’s communicated transparently, a product concept can build trust with a target audience
• It helps demonstrate a commitment to delivering on what’s been promised, enhancing a brand’s credibility in the consumers’ eyes

Facilitating innovation

• By challenging teams to think more creatively a product concept can nurture greater innovation
• It helps set a framework for continuous improvement, which pushes the boundaries of what a product can achieve in terms of features and user experience

How best to apply a product concept for organisational growth

While a product concept can help you to create a great product, it’s much more than that. When correctly aligned with your organisational goals, it can enable you to achieve sustainable organisational growth.

Here’s some pointers to help you with that:

Align with your organisational objectives

• Make sure your product concept aligns seamlessly with the broader objectives and mission of your organisation
• Your product concept should contribute to your overall growth strategy and complement other products and services

Market research and customer insights

• To understand current trends, competitors and customer needs, you need to conduct thorough market research
• Take advantage of customer feedback and insights to refine and enhance your product concept so it resonates with your target audience

Iterative development and testing

• Look to embrace an iterative approach to development, as this will allow you to continuously refine your product concept
• Frequently test and collect feedback during the development process to help identify areas or improvement and ensure your final product meets your customers’ expectations

Cross-functional collaboration

• Try to foster greater collaboration between different departments such as marketing, sales and customer support
• With a more cohesive approach, it ensures that your ideas are more effectively communicated to customers and supported by all facets of your organisation

A scalable and sustainable design

• Your product concept should be designed with scalability in mind, as this will allow for future growth and adaption to increasing demand
• Think about the long-term sustainability of your product, both in terms of technology and its environmental impact

Strategic marketing and positioning

• Look to develop a strategic market plan that highlights your product’s unique value propositions
• Communicate how your product concept addresses specific pain points and stands out in the market

Customer education and engagement

• It’s important to educate your customers about the benefits and features of your product concept
• Look to develop engagement strategies such as webinars, tutorials or interactive content that will help increase their understanding and product usage

Ongoing monitoring and adaption

• You need to implement systems that will allow you to continuously monitor key performance indicators (KPIs) related to your product; product surveys can help in this regard
• Be willing to adapt your product concept based on real-time feedback, market changes or new opportunities

Invest in innovation

• If you’re to keep your product concept fresh and competitive, you need to allocate more resources into ongoing innovation
• Keep up with technological advancements and market shifts and integrate new features and improvements with respect to these changes

Strengthen customer trust and loyalty

• If you’re to deliver on the promises outlined in your product concept you need to prioritise transparency and reliability
• Look to build trust with your customers, as satisfied and loyal customers are essential to sustaining organisational growth

Wrapping up

Having explored the product concept in more detail including its importance and the different types available, we hope you will feel better informed about how it can benefit your business.

Crucially a strong product concept isn’t just about making a good product, it’s about helping you to connect and align effectively with your organisational goals. If you can do this, your business will be stronger and more successful as a result.