In order to achieve desired exchange outcomes with target markets, it is significant to decide what philosophy or thinking should conduct the marketing efforts of an organization. The product concept is a universal business hypothesis that assumes that customers desire products that have better features, performance and quality than the products that are already on the market.
The product concept proposes that consumers will prefer products that have better quality, performance and features as opposed to a normal product. The concept is truly applicable in some niches such as electronics and mobile handsets.
As a result of emphasis on production capacity during the earlier days, the position of supply increased over period of time. Mere availability and low price of the product could not ensure increased sale and as such the survival and growth of the firm. Thus, with the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features etc. Thus, product improvement became the key to profit maximization of a firm, under the concept of product orientation.
This concept has the following features.
- Quality orientation of the organization. It aims at improving the product through innovation.
- Superior products at reasonable price; long lasting well-made products.
- No concern for customer needs; product-orientation.
- Quality improvements over time to attract customers.
A good quality product and high price can upset the budget of a customer. Therefore, it can be said that only the quality of the product is not the only way to the success of marketing.