What is production concept in Marketing?

Business & Management
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PRODUCTION CONCEPT
Production Concept in marketing refers to the perspective of the customers where most of the customers prefer the products which are easily available and affordable to them.
If a firm decides to operate based on this concept, it will try to minimize production costs by making the production process efficient.
This production concept is found to be applicable if two situations:

  1. First case when the demand for the product exceed the supply of the product, this means that the customers have accepted the product and price and affordability is not a issue for them.
  2. Second case if the production cost are very high then the customers will be discouraged to buy the product hence productivity could hamper if the rates are fixed at very high.
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It is one of the oldest concept in business.

  • Here managers of organisation which follows this concept concentrates on high productivity, low manufacturing costs( High production gives less manufacturing cost) and wide distribution. Because according to production concept consumers prefer the products that are inexpensive and widely available.

  • But since after the brand awareness and quality assurances by the companies nowadays, consumers prefers the product that gives quality, performance and innovative features. And this type of concept is called product concept. Here companies focus on consumer’s need and wants. Companies prepare products for the optimum satisfaction of the consumers.