The production concept is the oldest concept of marketing . This concept believes that the consumers give preference to easily available low cost goods. Any production oriented organization aims to have high productive capacity and cover wide distribution area. The production concept of marketing gives emphasis to reduce cost by increasing quantity of production.
The ultimate goal of production concept of marketing is to earn maximum profit through mass scale production and sale. Production efficiency is used to achieve this goal. Many companies can be found working with the premise that consumers can be attracted by mass production efficiency and cost minimization.
The ultimate goal of production concept of marketing is to earn maximum profit through mass scale production and sale. Production efficiency is used to achieve this goal. Many companies can be found working with the premise that consumers can be attracted by mass production efficiency and cost minimization.
Some American companies had adopted 'price-cut policy in the beginning of 19th century. Some Japanese companies had adopted this concept in the 1960s and 70s in international markets. Many companies have been conducting their activities with production concept even today. The main features of production concept are higher production efficiency, focus on production, larger distribution and lower price.
Features Of Production Concept of Marketing
1. Production Oriented
The production concept gives emphasis to mass production and mass selling.
2. High Production Efficiency
The production concept believes that high production efficiency can be achieved through the use of modern technology, standardization and large-scale production.
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Societal Marketing Concept
3. Low Price
The production concept believes that price of products should be cut down to attract customers.
4. Wide Distribution
Arrangement for wide sales and distribution should be made to make the product available everywhere.
3. Low Price
The production concept believes that price of products should be cut down to attract customers.
4. Wide Distribution
Arrangement for wide sales and distribution should be made to make the product available everywhere.
