The Difference in a Product & a Product Concept
[2023-10-19 10:12:42]
SMEs lack the necessary revenue to deal with multiple product failures. To prevent this problem, many small companies have created product concepts to test the possibility before the proposed product is manufactured. This product is a tangible or intangible product your company sells to consumers, but the product concept is the concept that your company may decide to produce in the future.
Product concept is representative of potential new products and outlines the benefits the product brings to consumers. The company can create written explanations, graphic diagrams, short videos or prototypes of the proposed product. If the test phase of the product concept is successful, the company may start manufacturing and selling the product.
Companies typically test product concepts by submitting product concepts to consumers and evaluating their responses. In most cases, the company chooses consumers who are members of the product concept target group. For example, companies reviewing new baby foods will test the product concept with their infant 's mother. To test the concept, the company can explain or demonstrate it. At the end of the test, the company collects feedback from consumers who evaluate the concept
Some concepts have never evolved into products. As a result of testing, if the target population turns out to be less likely to purchase a product, the company usually abandons its idea. However, as a result of the test, if it turns out that the target population well corresponds to the product concept, the company may decide to manufacture and sell the product.
Consumer response to the product concept itself is not the only problem that companies have to consider when deciding whether to manufacture new products. For example, consumers may actively respond to product concepts, but they do not want to pay the expected price of the business. In this case, the company needs to decide whether it is possible to lower the desired price. Otherwise, the company may decide to change or cancel the product concept
Amanda McMullen is a freelance writer who has written as a professional since 2010. She has a bachelor's degree in mathematics and statistics and a bachelor's degree in general mathematics education.
The new product development process will continue to develop actual products. So far, in many new product concepts, there are only word descriptions, drawings, or rough prototypes. However, when the product concept passes business tests, it is necessary to develop it to actual products so that the product concept can be surely converted to executable market products. However, the problem is that at this stage R & D expenditure and engineering expenses are leading to a significant increase in investment. The final stage before commercialization of the new product development process is test marketing. At this stage of the new product development process, the product and its proposed marketing plan are tested in a realistic market environment. As such, test marketing provides marketing professionals with marketing experiences of products and places a significant cost on comprehensive referrals.
According to Kotler, P. "Attractive ideas must evolve into product concepts, it is important to distinguish product concepts, product concepts, product images" (p. 267). In other words, in order to understand exactly what product purpose, market purpose, product or service will work to meet customer's needs, product ideas need to be developed at this stage. In addition, companies need to create images that convey the concepts of their products to their customers and the company's mission as a provider.
As the name suggests, the product concept focuses on product characteristics, quality, and performance. In other words, the product concept shows that consumers prefer products superior to other products in the market From the specification and quality point of view, the marketer does not know whether the products being