Before any product direction can be undertaken, you as product manager need to develop your product concept. This is not a thick, in-depth document. Rather, it is a 30,000-foot look at how a product concept you are considering meets market needs. It looks at the market opportunity, how your company can create and deliver the product, and the financial gain associated. Consider it a living, organic document that provides a starting place for you and your team to build out later in depth.
Questions Your Product Concept Must Answer
There are 11 questions your product concept document must answer:
- What is the market problem you are addressing?
- How big is the opportunity?
- Who are the potential buyers and users? Who needs this product?
- How does the product benefit the customer? How does it benefit your organization?
- Do we have evidence that we understand the problem and that the prospect will buy our solution?
- What is the window of opportunity in the market?
- Which competitors will our product face?
- What are the main features of the product and the key success factors?
- How is our product different from the competition?
- How would we market our creation?
- What metrics should be considered in determining the product’s success?
The real objective of developing a product concept is to provide enough information about the market needs to justify pursuing further investigation at a deeper level.
5 Things a Good Product Concept Includes
- Enough research into the market to document the current situation and actual need for the product
- An understanding of the competition in the market and why the need for your product exists
- A conceptual solution that aligns with your company’s capabilities and objectives
- An explanation of how the new product will be an advancement and added value over what competitors offer
- An indication of the financial and long-term benefits your company can anticipate from the product
Looking Ahead
In my next post, we’ll take a look at the Idea Prioritization Matrix, a popular tool to use when evaluating different product concepts.
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