Difference Between Product and Production Concept

The marketing efforts of an enterprise are directed by marketing management philosophies, also called as marketing concepts, so as to gain the desired exchange outcomes. It determines the outlook of the producers. In this context, the product and production concepts are often compared and contrasted. However, the two differ in the sense that product concept states that the consumers prefer the products which are best in terms of quality.

As against, if we talk about production concept proposes that consumer would like to have a product which is widely available as well as reasonable in price. So in this article excerpt, you will find the differences between product concept and production concept.

Content: Product Concept Vs Production Concept

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart

Basis for Comparison	Product Concept	Production Concept
Meaning	Product Concept is a marketing philosophy which assumes that customers admire quality-rich products, with advanced features.	Production Concept is an approach which believes that customers are willing to buy the products which are easily available at low prices.
Means	Improvement in product over time	Improvement in the production efficiency and distribution coverage.
Objective	To provide better quality products to the customers.	To achieve the economies of scale.
Emphasis on	Product	Production

Definition of Product Concept

Product concept, as the name suggests concentrates on the features, quality and performance of the product. In other words, product concept states that the consumers will prefer those products that are superior to other products in the market, in terms of their specifications and quality, meaning that the marketer is aware that whether the product offered will fetch demand or not or whether the product design will increase the sales or not.

So, the firm invests a lot of resources like money, time and manpower in order to research the needs and expectations of the target audience from the product. Therefore, it requires continuous improvement in the product, to make it better.

The managers often believe that a product with outstanding quality and features will create its own market. However, they are unaware of the fact that a product cannot be successful in the market if it is not priced, advertised, distributed and sold in right manner.

Nevertheless, the product concept focuses on the product rather than the customer needs which are to be satisfied and so it results in ‘marketing myopia’.

Definition of Production Concept

The production concept is based on the assumption that the consumers will like the product that has wide availability and are affordable. Hence, the company’s management must concentrate on constantly upgrading the production and distribution efficiency, reducing cost and mass production. The concept is suitable when:

• The product’s demand is greater than its supply.
• The cost of the product is very high, which requires good productivity, in order to reduce it.

Production Concept is suitable for the firm when it operates in a market with high growth prospects as well as the anticipated economies of scale is noteworthy.

In the 1950s this concept worked because there were only a handful of producers, and consumers are many. But, at present, the concept can work only when the marketers object to expand the market. That is why, the philosophy hardly exists, as there are only a few marketers that follow it.

Conclusion

Production Concept is an old concept and at that time increase in production of the goods was the major concern of the firms, as whatever the firms produce has worth for the customers. At recent times, this concept is no longer in use as customers are quality sensitive. And, the demand of the product automatically increases, if it has the required quality and fulfils customers expectations thoroughly.

Indeed, if the company needs to survive in the long run, it must follow product concept, by making the customers habitual with the quality products offered by the company.