The production concept is an old concept of marketing. According to this concept, consumers will prefer products that are widely available and less expensive. It gives emphasis on mass production. It believes that the consumers are conscious and sensitive towards products and their brands; they are well informed about substitute products and are attracted towards low priced turn products. Thus, the market believes in profits through production efficiency.
According to Kotler and Armstrong, "Production concept is the philosophy that consumers will favour products that are available and highly affordable and the management should therefore focus of improving production and distribution efficiency.
During 1960-1979, many Japanese companies had adopted this concept. Many of the Nepalese companies are operating with the same concept even today. The starting point of this concept is the factory and it gives focus on mass production. It means is mass production and end is profit through production efficiency.
Features of Production Concept of Marketing
- Mass production: The production concept of marketing focuses on mass production. It reduces per unit cost of production and increases sales volume.
- Mass distribution: The production concept of marketing focuses on mass distribution. It enhances distribution efficiency and reduces distribution costs. It also facilities wider ability of products.
- Low price: Price is regarded as a critical factor in marketing. Consumers give high priority to highly affordable product price than its quality. Cost of production can be reduced through mass production, mass distribution, and improved technology.
- Production efficiency: The production concept of marketing gives emphasis on production efficiency. there must be skilled, experienced, and qualified human resource and modern technology to improve production efficiency.
In conclusion, the production concept is the old concept of marketing. Gives emphasis on mass production and mass distribution. Price is regarded as a crucial factor. Marketers try to reduce product price through production efficiency and improved technology. This concept is useful to market expansion but there remains a chance of poor quality of product or services.
| Product Concept of Marketing | |
|---|---|
| Starting Point | Factory |
| Focuses on | Mass production at a lower price |
| Means | Mass distribution |
| Ends | Profit through production efficiency. |
