Table of Contents
What is Product?
Product Concept aims to develop products that are quality-rich and innovative. In this strategy, the company strives to improves the quality of the products rather than the quantity of production.
The business method of the company is upgrading its products with added features & enhanced performance. The company generates profit by adding innovative features to the products.
These products are made for customers who favor products of superior quality and are eager to buy expensive but advanced products.
Thus, the company always concentrates on the demands and expectations of the target customer group from the product. They believe that an outstanding product will bring demand and therefore create revenue.
The company believes that a customer cares for product value. For example, a customer might say, “This upgraded model has great features in it. It’s surely worth the price I will have to pay.”
What is Production Concept ?
In this type of marketing, the quantity, instead of the quality of the product is the main focus. The goal of the company is to increase the mass distribution and availability of products to the general public.
The products are made affordable, and quantity is prioritized over quality. The company aims to generate profit by volume of products rather than product quality. Thus, efforts are invested in improving mass production and distribution capacity.
The target customers are the ones who are looking for products that are affordable and available to them, without caring much for quality.
Thus, the company constantly invests resources to increase production capacity and distribution efficiency. It also tries to bring down the cost and enhance sales of the products.
The underlying belief is that not all customers can afford to buy quality-rich and expensive products. Thus, they choose cheap products, even though they have fewer added features and performance.
The thought process of the customer is considered to be, “It’s cheap and affordable. So why not buy it and save money?”
Difference Between Product and Production Concept
Product Concept focuses on improving the quality of products and adding innovative features. The production Concept focuses on improving the availability and distribution capacity of the products.
In Product Concept, the company generates profit by upgrading products with new features. In the production philosophy of marketing, the company brings profit by mass selling products by increasing bulk production & distribution.
Product concept targets customers who are unwilling to compromise on quality & are looking for quality-rich products. Production Concept, on the other hand, tends to maximize profit by ensuring affordability to customers who are looking for products that are useful & affordable.
In product marketing, the emphasis is on products and their outstanding features. While in production, the effort is invested in bulk production.
Comparison Between Product and Production Concept
|Parameter of Comparison||Product||Production Concept|
|Definition||It is a type of marketing philosophy that believes in increasing product quality to generate profit.||It is a type of marketing philosophy that believes in increasing mass of production to generate profit.|
|Business method||Generate high-performing products using creative and innovative ideas||Increase mass production of goods to ensure the availability|
|Profit generation||By offering a good quality product||By increasing availability and affordability|
|Target customers||Customers looking for quality products||Customers who buy available and inexpensive products are the target customers.|