Distinguish between the product concept and production concept of marketing.
Certainly! The product concept and production concept are among the fundamental marketing philosophies that guide businesses in their approach to serving their markets. Here’s a comparison of the two:
1. Definition:
Product Concept: This marketing philosophy holds that consumers will prefer products that offer the most quality, performance, and innovative features. Companies following this concept focus on continuous product improvements.
Production Concept: This philosophy is grounded in the belief that consumers prefer products that are widely available and affordable. Thus, companies prioritize high production efficiency, large-scale production, and cost minimization.
2. Primary Focus:
Product Concept: Emphasis on product quality, performance, and innovation.
Production Concept: Emphasis on achieving high production efficiency, reducing costs, and mass distribution.
3. Assumption:
Product Concept: If you build a superior product, consumers will buy it.
Production Concept: If products are cheap and widely available, consumers will buy them.
4. Business Strategy:
Product Concept: Focused on refining product design and quality to meet or exceed consumer expectations. Often seen in markets with rapid technological advancements.
Production Concept: Concentrates on achieving economies of scale and scope. Best suited for markets where demand exceeds supply or in industries where commoditized products can generate significant demand through price reductions.
4. Potential Pitfall:
Product Concept: Companies might be too inward-looking, focusing too much on the product itself and not enough on what the consumer actually needs or desires. This can lead to “marketing myopia” where a company becomes too product-centric and loses sight of customer needs.
Production Concept: The assumption that consumers are primarily interested in product availability and affordability can lead to a neglect of other important factors like product quality, features, and brand reputation.
5. Examples:
Product Concept: High-end brands in electronics like Apple often emphasize their product features, design, and innovation.
Production Concept: Basic commodities or staple goods producers, such as generic food item producers, might focus on producing large quantities at a low cost.
In the evolving landscape of marketing, while these concepts serve as guiding philosophies, successful businesses often integrate multiple concepts or adjust their strategies based on changing market dynamics, customer preferences, and competitive factors.