What is Production Concept in Marketing?

What is the Production Concept? How does it work in Marketing? What are the Pros and Cons of the Production Concept? What are the Examples of Production Concept?
what is production concept in marketing
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The economy runs on the expectations of the marketeers and the expectation of the consumers. Most of the time, these expectations increase and decrease unevenly on both sides, reflecting a change. The production concept is a strategy used in an economy where the market upholds its capacity to exist and develop in an unstable situation. However, there are specific cons of production concept along with the pros of production concept. So, there is a need to investigate more about what is production concept.

1. What is Production Concept?

The production concept allows the production of goods on a larger scale. This aspect of production is maintained as a strategy to increase the dependence of customers on a particular product. The capital invested in producing goods in the market is less, and production efficiency is increased. This concept allows the producer to control the market strategies in production. (See What is Empowered Consumerism?)

2. What is Production Concept in Marketing?

In the marketing sector, profits and losses play an important role. When the demand of the consumer decreases, the profit decreases. The respective company or industry applies the production concept to increase and maintain profit. In this concept, the supply of the goods is increased and marked at a lower cost. As the cost reduces and the product acquires mass popularity, the efficiency of the production concept in marketing becomes visible. 

The masses buy the goods given to them at lower prices. As a result, the profit increases in the business. When the supply increased, demand for the product also increased. This is usually applied in a non-competitive market. In a competitive setup, the chances of success using this method are less due to many other companies competing for profit. (See How predictability affects marketing?)

3. What are Various Types of Production Concept?

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The types of production concepts differ by the level of production of these goods in the market. So, the following strategies would talk about what is production concept through its types:

  • Unit Production: This type of production involves the production of goods on demand. Usually, the output is a single unit. For example, if you order a cake from a bakery, the processes involved in producing this single product are unique. Hence, the product is unit type.
  • Batch Production: This type of production involves the production of many goods of the same brand or type. This type of production provides output for a particular industry or company when the stock of the product decreases. Batches of chips or packaged food are examples. The intensity of production is based on the demand in the market.
  • Continuous Production: The continuous production concept is a more labor-oriented production method. The assembly line is active every day and night to produce the desired output. Here, only mechanical labor using machines is involved. For example, the production of plastic for the plastic industry requires a lot of time to process. Hence, this industry uses a continuous method of production.
  • Mass Production: In this type of production, a large number of goods are produced. But the labor is done by both man and manmade machines. Examples of this kind of production concept can be seen in the automobile industry. Also, check out the different types of Customers in Marketing and Retail.

4. What are Production Concept Examples?

What is production concept in the real world can be examined through various examples:

  • The production of different types of cars by Ford, an automobile company, allowed them to increase the number of outputs. The popularity of the company increased the demand and supply. (See Mini Speed Boat Features)
  • Smartphone companies like Apple produce more smartphones to increase consumer demand.
  • The export of IT-based products from China is another example where many products are made and developed to attain good profit in the manufacturing sector. Must read about the best football cards to invest in.

5. What is the Difference Between Product and Production Concept?

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The product concept and the production concept are two different marketing concepts. The section on what is production concept in marketing introduced the major ideals of the concept. Now, certain differences exist between the product and production concept:

  • The product concept is the production of goods based on the consumer’s demand. On the other hand, the production concept is not based on the demand of the consumer.
  • The low cost of production in the production concept provides low-quality goods. In the product concept, the consumer would receive good quality products at an affordable price. (See Why marketing research can give inaccurate results?)

6. Production Concept vs Product Concept

When you reflect on the major differences between production concept and product concept, it’s in the strategy used in both kinds of production.

  • Motive of production: In the product concept, the motive of production is to ensure that the demands of the product are fulfilled. In the production concept, the motive is to ensure that adequate supply is maintained. Also, check out how to make your own custom fidget spinner.
  • Profit: The product concept achieves profit through a selection of quality products. On the other hand, the production concept focuses on the profit attained through producing a large number of goods of cheap quality.
  • Quality of the product: In the product concept, the quality is enhanced. In the production concept, the quality of the product is decreased.
  • Effectiveness of the strategy: The production concept is usually effective in markets where supply would increase consumer demand. However, profit-oriented production would not allow the development of the product and its features. In the product concept, the companies compete in the competitive market while enhancing the quality and performance of the products. The features of the products are updated and renewed every once and then. (See Is Ronald McDonald Real?)

7. List Pros of Production Concept

The pros of production concept can be listed as follows:

  • Lower prices of goods would allow poor people to consume goods at an affordable price. The consumption of goods would increase in this case to help the disadvantaged sections of the society.
  • The interaction between the people and the industry increases. The worker who made the product buys the product at an affordable price. The cycle of the exchange is a continuous process.
  • More profit means more investment. The company would attain a good number of investments from many investors.
  • The manufacturing of large-scale products requires additional labor in the long run. This would increase the job opportunities.
  • As the industry or the company grows bigger and bigger, the supply of raw materials increases. The industry’s growth provides them with opportunities to trade with good suppliers. (See Why is Quantitative Research Important?)

8. List Cons of Production Concept

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Photo by Quintin Gellar

As you are aware of what is production concept,  note the list of cons of production concept that includes the insufficiency of the marketing strategy to influence the economy. The major drawbacks are:

  • The production concept is outdated in this world due to higher levels of competition and distribution.
  • The majority of the consumers are dissatisfied with the cheap quality of the product.
  • The demand of the consumer is neglected to an extent.
  • The focus is on increasing the efficiency of the product distribution, which cannot be an efficient strategy in the long run.
  • The impersonalized target of the business shuns the development of the product and its features.
  • The quality of the products cannot be improved in a short period. It requires a long period to sustain and develop the industry if needed. (See What are the effects of referral and recommendation in marketing?)
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