You can ask the same at ask.marketing91.com or you can also ask in comments. Most of them are actually customer and marketing oriented. Companies that use the production concept have the belief that customers primarily want products that are affordable and accessible. Product concept is loosely related to the production concept.According to this concept, the consumers begin to prefer higher quality products and are willing to pay a satisfactory price. September 7, 2018 By Hitesh Bhasin Tagged With: MARKETING BASICS. What is Relative Advantage? The company first compares its costs with its competitors, and accordingly, changes its expenses. F.P. What is Business Continuity Management or BCM. Hence Marketing concept and Customer concept are both concepts in vogue. Why is product concept important? It is one of the oldest concepts of marketing and it assumes that goods are produced because consumers will need them in their near future. What is Marketing Myopia? The company has to keep in mind that its prices are reasonable for the consumer to purchase it. Sales was mainly done by traveling salesman. However, please specify whether you want to start a job portal (many paid softwares available) or a new website (needs designers). Marketing concept or philosophy means that what will be the organization‘s philosophy to produce and distribute their products or services among the customer effectively and efficiently. Your email address will not be published. The production concept is useful for the companies when the demand for a product outruns the supply, and the cost of the product is too high. The rest is carried out by marketing and societal marketing concepts. I disagree. Major companies don’t need to use these sales tactics because what they lack in advertising, they make up in product quality. The reason that Production was given major importance was because of “Says Law” which stated that Supply creates its own demand (from the French economist Jean – Baptiste Say.). The concept is truly applicable in some niches such as electronics and mobile handsets. Can You Tell me about the Marketing Myopia? Hi, What is the Difference Between Product and Production Concept? The difference between the production concept and selling concept is that the former deals with ensuring the quality and standards of the product are above par, while the latter deals with finding ways to promote the products in the best possible way. Achieving high production efficiency 2. There are four steps followed in the process of production –. It is to produce the products cheaper to make it available to the mass population. But nowadays maximum companies are using the “Customer concept”. The production concept was found in the mid 20th century when the industries were taking off, and the manufacturing of goods was the most significant prospect of that time. This means that rep… Managers try to achieve higher volume with low cost and intensive distribution strategy. A live examples is very difficult because all the companies today believe in the customer concept as well as the marketing concept. The production concept is one of the oldest concepts of marketing and deals with the product component of the business, particularly product quality (efficiency and costs). While for selling concept it is the finished goods and its advertising. Low costs 3. This orientation makes sense in developing countries, where consumers are more interested in … Prospecting, Preparation, Approach, Presentation, Handling objections, Closing, Follow-up. When the production concept was found, a production oriented business dominated the market. They assume that consumers are primarily interested in product availability and low prices. On the contrary, Production Concept is a marketing phenomenon that holds that customers are ready to buy the product which is cheap in price and easily available. This is where the product concept comes in. Ford was the company which started with the manufacturing concept. production concept focuses on the better quality of the product. Home » Business » Difference Between Production Concept and Selling Concept (With Table). Production concept helps improve existing or new products in terms of quality and costs. How To Write A Concept Statement? I have not covered it yet because of lack of time. There are a few steps that must be followed when applying a selling concept –. What is product concept example? The selling concept starts with the factory finalised goods and ends when the product is out on display for sale. 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