Production Concept and Product Concept
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Production Concept: The production concept is one of the earliest approaches in marketing management, rooted in the idea that consumers prefer products that are widely available and affordable. This concept emerged during the Industrial Revolution when the primary focus of businesses was on mass production and efficiency. Companies that adopt this concept prioritize high production output, economies of scale, and cost reduction to ensure that their products are accessible to as many consumers as possible. The underlying belief is that consumers will favor products that are easily available at lower prices, so the focus is on optimizing production processes and distribution networks. For example, companies producing basic commodities like sugar or flour might operate under the production concept, emphasizing volume and cost-effectiveness.
Product Concept: On the other hand, the product concept is centered around the idea that consumers will favor products that offer the most quality, performance, or innovative features. Companies that embrace the product concept invest heavily in research and development to create superior products. They believe that consumers will be drawn to the unique features, quality, or design of their offerings, and as such, they focus on continuous product improvement. The product concept can sometimes lead to what is known as “marketing myopia,” where a company becomes so focused on the product itself that it neglects the broader needs and desires of the market. A classic example is the luxury automobile industry, where brands like Mercedes-Benz and BMW focus on producing high-quality, performance-driven vehicles.
In summary, while the production concept focuses on efficiency, mass production, and cost reduction to ensure affordability and availability, the product concept emphasizes quality, performance, and innovation, aiming to offer superior products that stand out in the market.