Product Concept

The concept of meeting consumers' needs
Collection
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The product concept is a subjective idea that enterprises want to inject into customers' minds about products consumer To describe your product, that is, how to introduce the product to the people simply and clearly. Generally, the product concept is expressed in words or described in pictures.
Chinese name
Product Concept
Advantages
Often design a concept for new products
Essence
What are the needs of consumers
Evolution
Comprehend the product at three levels

essence

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Essentially, the concept of product is what interests the product sells to consumers, that is, what needs consumers to meet. Any product has its own reasons for market existence. These reasons are because consumers have a certain demand for the benefits of the product. [1]

evolution

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1、 Traditional product concept [1]
In the history of marketing development, people initially understood the product as having a certain material shape and can provide a certain purpose Physical entity It only refers to the actual utility of the product. Under the guidance of this concept, enterprises tend to focus on Product quality In terms of improvement, it ignores other needs of consumers.
stay Seller's market This product concept can guide the enterprise's Production and operation Practice. As in the early 20th century, Ford It has created the first assembly line in the world production efficiency Sharp increase and rapid decrease in cost. But Ford only produces black cars. When the company staff suggested producing cars in other colors, Old Ford believed that customers were concerned about the actual utility of the car, not its color. So no matter what color customers like, Ford only produces black cars.
2、 Modern product concept
After the late 1960s The Third Scientific and Technological Revolution Driven by, production is becoming more scientific automation , high speed Continuity , followed by a sharp increase in the number of products in the market, and the variety of designs has changed with each passing day. The market has changed from the seller's market to Buyer's market In the increasingly fierce market competition Some enterprises gradually realize that on the one hand, science and technology are changing with each passing day Production management Under the condition of higher and higher level, different enterprises provide Similar products More and more close in quality; On the other hand, with the development of social economy and the improvement of people's income, customers' Non functional More and more attention has been paid to interests, which in many cases even exceeds the attention paid to functional interests. As a result, some enterprises gradually get rid of the shackles of the traditional product concept and adjust their previous competitive thinking, that is, to win competitive advantages not only through the product itself, but also by creating differences in various aspects such as style, brand, packaging, after-sales service, etc.
It marks Overall product concept The birth of. For example, the United States IBM (IBM) employs about 400000 people worldwide, and its products account for 80% of the world computer market. However, IBM is not the leader in technology. The secret of its success is to occupy the market by the best service. In recent years, some western scholars have made a theoretical summary of this. They believe that the traditional concept of product is incomplete, and put forward the concept of product as a whole. They believe that products include not only tangible physical entities, but also intangible services. Specifically, it consists of three levels:
The first level products are Core products It refers to the basic utility that the product can provide to customers, that is, the product in the traditional sense;
The second level products are Formal products , is the external feature of core products, mainly including style, quality, brand, packaging, etc;
The third level products are Extended products , refers to the customer's reason Buy products All additional services and benefits obtained, such as guarantee, consultation, delivery, installation, maintenance, etc.
stay Modern market economy Under the conditions, only by comprehensively understanding the overall concept of products from the above three levels, can enterprises gain advantages in market competition.

Development testing

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new Product Concept It is the idea of some possible new products that enterprise innovators hope to provide to the market. The idea of new products is only for new product development Pointed out the direction, we must idea generation Only by transforming it into a new product concept can we truly guide the development of new products. The new product concept is a detailed description of the product concept from the perspective of consumers. The concept of new products will be concretized to describe the product's performance, specific use, shape, advantages, shape, price, name, benefits provided to consumers, etc., so that consumers can clearly identify the characteristics of new products. Because consumers do not buy new product ideas, but buy new product concepts. new product Concept formation The process of transforming rough product ideas into detailed product concepts. Any product concept can be transformed into several product concepts. The formation of new product concept comes from the concept of new products Ask questions Generally, different new product concepts can be formed by answering the following three questions. That is, who uses the product? What are the main benefits of this product? What occasions is this product suitable for?
Formulate new product concepts that have been formed Marketing strategic plan yes New product development process An important stage of. The plan will be Development phase Continuously improve. The marketing strategic plan includes three parts: the first part is the description target market Scale, structure and consumer behavior , the positioning of new products in the target market, Market share And the sales and profit targets of previous years. The second part is about new products Price strategy Distribution strategy And the first year Marketing budget Planning. The third part describes the expected long-term sales volume and profit targets as well as the Marketing mix
Business analysis The main content of the new product concept is the financial analysis, that is, to estimate the sales volume, cost and profit, and to judge whether it meets the goal of opening new products for enterprises.
New product entity development mainly solves the problem of whether product ideas can be transformed into technically and commercially feasible products. It is completed through the design, trial production, testing and identification of new product entities. According to the survey of the American Science Foundation, the investment and time required for the product entity development stage in the process of new product development account for 30% of the total development cost and 40% of the total time, respectively, and technical requirement Very high, which is the most challenging stage.
new product Market test The purpose of this test is to test the new product for the last time before its official launch, and the evaluator of this test is the consumer Currency Votes Put new products into production through market test Representativeness Only by testing a small range of target markets in the region can enterprises truly understand the market prospects of the new product. The market trial is a comprehensive test of new products, which can provide a comprehensive and systematic basis for decision-making whether new products are fully launched, and also provide a basis for the improvement and Marketing strategy Many new products are successful only after trial marketing and improvement. The primary issue of new product market trial marketing is to decide whether to test marketing. Not all new products need to go through test marketing. It can be determined according to the characteristics of new products and the analysis of the advantages and disadvantages of test marketing on new products. If the trial marketing is decided, the next step is the selection of the trial marketing market. The selected trial marketing market should be as close as possible to the target market that the new product will eventually enter in terms of advertising, distribution, competition and product use. The third step is to test the sales Choice of technology The commonly used consumer goods testing technologies include: sales wave test, simulation test controllability Trial sale and trial market. The common test marketing method of industrial products is product use testing, or introducing new products through trade exhibitions. The fourth step is to control the trial marketing process of new products Publicity effect The control of trial marketing cost, trial marketing plan target and trial marketing time is the key point that trial marketing personnel must grasp. The last part is the collection and analysis of test marketing information. For example, consumers' Probation rate And repurchase rate, competitor Reaction to new products, consumers' response to new product performance, packaging, price distribution channel , promotion, etc.
In the marketing operation of the commercialization stage of new products, enterprises should make prudent decisions in the following aspects: when to launch new products. There are three timing options for competitors' products. That is, first entry, parallel entry and later entry; Where to launch new products; How to launch new products, enterprises must formulate detailed Marketing plan , including Marketing mix Strategy, marketing budget, organization and control of marketing activities, etc.

test

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The product concept requires that the product introduction to consumers can be clear enough and attractive to consumers! Research on product concept will develop and formulate new products marketing strategy and Communication strategy Provide the most basic Decision reference basis.
When getting as much information about the product as possible technical information After the market data, based on the content structure of the product concept, we usually sit together with many people in the enterprise to fully Brainstorm , constantly thinking of one product concept after another. After a lot of intense thinking and debate, we usually have several product concepts left on the whiteboard of the meeting, and think each one is very good. But the really meaningful question is which one is ours Target consumers Easy to understand and accept?
The initial product concept is often just our understanding of Product characteristics and Consumer concept A subjective combination of. We must get the attitude of target consumers towards these product concepts. Set
After a good product concept, it needs to be tested in consumers to help enterprises modify and enrich the content of the product concept. If there are several product concepts, the best one must be selected through testing.
Product Concept Test It is an effective research tool specially used to select and develop product concepts. Display a product concept or several alternative product concepts initially set by the enterprise in front of a group of target consumers, and use professional research method And means to obtain its reflection.

relationship

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Enterprise concept Brand concept And product concepts have different characteristics and functions, but the three are interrelated and interactive. Without realizing this, it is difficult for enterprises to give full play to the marketing effect of concepts when designing concepts, and even give the public the feeling of "show off" and "play empty".
First of all, these three concepts are about the generalization of certain characteristics of the subject, which is rooted in the tree. For example, it is difficult for a tobacco production enterprise to win the public's favor by advocating the concepts of "environmental protection enterprise" and "healthy life"; A low-grade with backward technology and weak capital Clothing production Enterprises whose clothing brand concept is designed as "the symbol of successful people" is ridiculous; Similarly, the product concept is far from the actual features or functions of the product, which can only be deceit.
Second, these three concepts all convey the dominant information of the subject in a general, visual and simple way. All the concepts we see are straightforward, straightforward and easy to understand. Because of these concepts, especially brand and Product tax The concept is mainly used for propagation, so these characteristics should support the requirement that probability is convenient for propagation. On the contrary, if the design is complicated and profound conceptual design The original intention is contrary.
Third, because the information about the real advantages of enterprises, brands and products is transmitted in an appropriate way, the three concepts are marketing management It plays the role of "pioneer" and is the first business card for effective contact and communication between operators and consumers. Consumers can also understand the concept subject's Core values
We can see that the differences between these three concepts are also obvious. Due to the different subjects, the functional division of concepts has its own emphasis. For example, the enterprise concept is Enterprise development objectives This determines that it must have a long-term strategy Enterprise internal behavior Restraint and guide the public Corporate image building The impact of; Brand concept For Brand connotation As far as it is concerned, it guides the development direction of the brand and is also used to shape the brand image, and often focuses on the latter; The function of the product concept is much more unitary, just to express a certain advantage information of the product. On the other hand, because of this, the three concepts have the greatest coverage, and the design of brand and product concepts must be consistent with them; On the contrary, the coverage of the product concept only focuses on the single product itself. It gives people an intuitive feeling that the extension of the enterprise concept is broad, while the extension of the product concept is minimal.
At the same time, we must also realize that these three concepts are not independent, but interrelated and interactive. The concept of the enterprise, based on its coverage Brand concept In other words, the brand concept must be consistent with the information and spirit conveyed by the enterprise concept; The same is true of the relationship between brand concept and product concept. In this way, the three concepts actually reflect consistent information from different angles and to different degrees. In turn, the spread of product concept will strengthen the public's understanding of brand concept, thus becoming a powerful weapon for brand concept remolding. The same is true of the reaction of brand concept to enterprise concept. There are only three concepts Organic combination The interaction can form a resultant force, which will eventually have an impact on the public.