Product Concept: Definition, History, Features, Examples, and Pros/Cons

What is Product Concept?

The product concept of marketing lies in the idea that customers choose products that offer top-notch quality, performance, and features. This concept is crucial as it compels businesses to cater to customer demands effectively.

While the focus is on product excellence, other business aspects like marketing, distribution, and customer service play vital roles in success. This philosophy says the product itself isn’t sufficient; it needs a holistic approach to get success.

This marketing philosophy asserts that consumers will buy products that outshine quality, even if priced higher. Continuous improvement in product attributes like size, technology, packaging, etc., is key.

The product concept centers on enhancing the product’s intrinsic value. Customers are expected to choose and stick with a superior product over time. In modern competitive markets, producing quality products is critical for survival.

A Brief History of Product Concept

The history of the product concept in marketing began around the 1930s and continues to shape modern business strategies. Initially emerging alongside the production concept, which emphasized mass production, the product concept shifted focus to creating superior-quality goods. Companies recognized that customers were willing to pay more for better products.

Related: Production Concept of Marketing

This concept gained momentum as businesses realized the significance of customer preferences and expectations. It highlights the belief that customers prioritize quality, features, and performance when making purchase decisions. Over time, this approach led to increased emphasis on product innovation, continuous improvement, and brand differentiation.

Despite its strengths, the product concept does have limitations, as it might overlook customer desires beyond product attributes. Nevertheless, this historical evolution remains a cornerstone in the world of marketing, driving companies to deliver higher-value offerings to their target audiences.

Characteristics of Product Concept

The core idea of the product concept in marketing is that people choose the product with the highest quality. It argues people overlook price tags when they have a desire to get quality products. Let’s explore its characteristics:

Read Also: 5 Core Concepts in Marketing

Quality-Centric Approach

The product concept places central importance on quality. It asserts that customers are more likely to choose products that offer higher quality, durability, and performance. This belief drives companies to focus their efforts on producing superior goods.

Continuous Improvement

Fueled by the product concept, companies continually strive to improve their products. This means tweaking designs, incorporating innovations, and enhancing features to maintain a competitive edge and customer satisfaction.

Innovation and Uniqueness

Innovation is a hallmark of the product concept. Businesses seek to introduce novel features or attributes that set their products apart. This can include advancements in technology, design, or functionality that cater to customer preferences.

Customer-Centric Outlook

While the product concept emphasizes the product itself, it doesn’t disregard the customers. It believes that if a product is of high quality and aligns with customer needs, it will naturally attract their attention and preference.

Marketing and Distribution Support

While the product is central, successful adoption of the concept necessitates effective marketing and distribution strategies. Companies need to ensure that customers are aware of the superior qualities of their product and can easily access it.

Read Also: The 4 Cs of Marketing

Limitations in Customer Preferences

The product concept can have a limitation in that it might overlook broader customer preferences. It focuses so intensely on product attributes that it might neglect factors like price sensitivity, cultural variations, or changing trends influencing consumer choices.

How Does Product Concept Work?

Companies adopting the product concept should follow the following its four steps. These four steps of the product concept illustrate how this philosophy works and earn revenue for the business.

Starting Point: Factory

Similar to the production concept, under the product concept also the factory is the starting point. Businesses adopting this strategy should start with establishing a factory to produce the desired products.

Focus: Quality

Once the factory is established, while producing products companies should focus on the product quality.

Means: High Quality

After the product is produced, companies’ means of pushing sales should be through the highest product quality, innovation, and continuous improvement.

Ends: Profit Through Well-Made Products

Businesses adopting product marketing philosophy, in the end, should aim for achieving sales goals i.e. profits through quality assurance of products.

Read Also: 3 Ps of Marketing Mix

Pros and Cons of Product Concept

Let’s explore some advantages and disadvantages of the product concept of marketing.


  • Enhanced Quality: The product concept’s primary advantage lies in its uncompromising commitment to superior quality. By prioritizing quality, businesses can create products that not only satisfy but delight customers, building trust and loyalty.
  • Customer Appeal: Emphasizing quality and performance naturally attracts customers. When customers see that a product excels in terms of features and reliability, they’re more likely to gravitate toward it, leading to increased sales and market share.
  • Innovation Hunter: The product concept fosters innovation as companies continuously strive to enhance their offerings. This drive for improvement often leads to groundbreaking features, setting a brand apart and sparking interest among customers.
  • Premium Pricing: Products developed under the product concept can command higher prices. Customers are often willing to pay more for items that promise exceptional quality, allowing businesses to establish a profitable niche and invest in further improvements.


  • Neglecting Customer Preferences: One drawback is its tendency to overlook customer preferences. Relying solely on product quality might lead to products that lack features or styles customers desire, resulting in missed opportunities.
  • Price Insensitivity: Some consumers prioritize cost over quality. For them, a lower-priced product may outweigh superior features. Businesses fixated on the product concept risk losing price-sensitive customers to more affordable options.
  • Costly Innovation: Constantly enhancing and innovating products can incur high costs. Businesses must strike a balance between product quality and economic viability to avoid excessive expenses that might not yield proportional returns.
  • Limited Market Fit: Not all markets suit the product concept. Some regions or demographics might prioritize affordability or specific features over overall quality. Employing this concept universally might alienate potential customers who don’t align with its principles.

Read Also: The 4 Ps of Marketing Mix

Examples of the Product Concept

Let’s look at some real-world examples of how different companies are employing the product concept of marketing in their operations and what they have achieved through this.


Apple displays the product concept by ceaselessly pursuing excellence and innovation. Their meticulous design of products like iPhones, iPads, and MacBooks revolves around the seamless fusion of hardware and software. By providing extraordinary user experiences, Apple has nurtured a devoted customer following willing to invest in its premium offerings. Their unbreakable commitment to unveiling cutting-edge technology and consistent product launches sustains their leading position in the market.


Gucci, a renowned luxury fashion brand, embodies the product concept through its creation of exclusive and stylish items tailored to a discerning clientele. Their emphasis on premium materials, distinctive designs, and meticulous craftsmanship permeates their clothing, accessories, and fragrances. This approach has firmly established Gucci as a symbol of luxury and prestige. Despite catering to the high-end market, Gucci effectively retains a robust customer base and perpetually shapes fashion trends within the industry.


Sony manifests the product concept by offering a diverse range of high-quality electronics and entertainment products. From TVs and cameras to gaming consoles and audio equipment, Sony focuses on technological advancements and user satisfaction. By consistently pushing the boundaries of innovation, Sony remains competitive in various markets. Their dedication to quality has led to enduring customer trust and recognition.


Mercedes-Benz embraces the product concept in the automotive industry by producing luxury vehicles known for their performance, safety, and craftsmanship. They prioritize delivering an exceptional driving experience through advanced technology and elegant design. This strategy has positioned Mercedes-Benz as a symbol of prestige and engineering excellence. Despite the competitive automobile market, their commitment to quality has resulted in sustained success and brand loyalty.

Read Also: Roles and Responsibilities of a Marketer

Marketing Concepts Beyond the Product Concept

After the product concept, the other four marketing philosophies have evolved. Let’s shortly mention them.

  • Selling Concept: Focused on aggressive promotion, companies push products, particularly non-essentials, believing customers need persuasion to buy.
  • Marketing Concept: Prioritizing customer needs, businesses tailor products, create value, and build lasting relationships by understanding and catering to customer desires.
  • Societal Marketing Concept: Beyond profits, this approach integrates ethical, environmental, and social considerations to address broader societal well-being.
  • Holistic Marketing Concept: Integrating marketing strategies comprehensively, it covers internal, external, and interactive aspects to ensure consistent customer experiences and enduring connections.

Read Next: Pros and Cons of Production Concept

Leave a Comment