Product Concept of Marketing Meaning
Product concept of marketing refers to that concept which believes that customers will prefer those products which have superior quality and features than competitors products even if it involves customer paying more price for the company’s product. In simple words according to this concept price of the Product concept of marketing refers to that concept which believes that customers will prefer those products which have superior quality and features than competitors products even if it involves customer paying more price for the company’s product. In simple words according to this concept price of the product does not matter as long as products are of superior quality and loaded with features, in order to understand more about this concept one should look at advantages and disadvantages of product concept of marketing –
Product Concept of Marketing Advantages
Quality over Quantity
The first and foremost advantage of this concept of marketing is that company following this concept focuses on quality of the product rather than quantity of product because products of companies which focus on quantity over quality will be of substandard quality and such companies primary concern is to sell whatever they produce without thinking about the satisfaction level of the consumer which is not the case with product concept of marketing.
Curiosity Factor
It helps the company in creating curiosity in the minds of the customers because since company adds a unique feature with every new launch customers as well as competitors know that the company will come with something new and hence that curiosity factor will always be there in the minds of the customer which will ensure that company will remain in the limelight both in the press or news as well as in the minds of the customers.
Higher Margin
Companies following this concept of marketing can charge a higher price for their product even when there are competitors in the market because company under product concept of marketing is giving a quality product having different features than available competitors products and hence the scope of higher profit margin will always be there under this concept of marketing.
Product Concept of Marketing Disadvantages
Majority of Consumers are Price Conscious
The assumption that if the quality of the product is good then customers will be willing to pay any price is flawed as the majority of consumers are price conscious and such type of customers will buy competitors products even if it is of lower quality. In simple words, this strategy can work only for those products or markets where the price of the product does not matter the only thing that matters is the quality of the product or service.
Irrelevant Features
Another limitation of this concept of marketing is that sometimes companies pack their products with features which do not add value to the product and on the name of those features company charges a higher price from the customers. Hence for example if you are thirsty and want to drink water than it doesn’t matter whether you drink water in aluminum glass or silver glass but sometimes companies try to do exactly this that is they take more money for giving you silver glass even when you would have got the same satisfaction from drinking water in aluminum glass.
Consumer Interests are Ignored
Companies in this concept of marketing add features to the product according to their internal research rather than taking customers opinion which ensures that customer interests are ignored because customers do not get the product they want rather they get that product which company has conceptualized.
As one can see from the above that product concept of marketing has pros as well as cons and that is the reason why any company thinking of using this concept while producing and pricing its products than the company first look at above points and then take the decision.