In case of individuals some individuals tend to do work first and then think about the consequences while some individuals first think about the consequences and then decide whether to do work or not, in case of corporates some companies tend to produce first and then decide marketing strategy while some companies first decide marketing strategy and then produce according to projected demand. Marketing has many concepts as well as strategies and production concept is one of those strategies.
According to production concept of marketing a company first, makes the product and then the customer is supposed to buy those products as according to this concept demand will always be higher than the supply of goods because goods are supposed to be scarce and hence there will be no shortage of buyers in the market. In simple words in this strategy, the company does not focus on marketing rather it focuses on producing goods at lowest possible cost as it assumes that all production will be sold as consumers are looking for products which are available at cheap rates.
Production concept of market assumes that customers do not look at the quality of products rather they look at the price of the products and also a company can benefit from economies of scale due to bulk production of goods. Production concept is ideal for those countries or markets where the population is high as due to high population there will always be high demand for goods and company can sell their produce and this concept can be applied to those products which are of low value so for example a company cannot make expensive LED in large numbers and then hope that they will be able to sell their whole production to customers as customers think twice before making large purchases and also quality comes into play when the amount to be spent by the customer is high.
As one can see from the above that production concept of marketing is very difficult to implement in today’s digital age as consumers have all sources of information and they will not buy the product just for the sake of need rather today customers look to satisfy their wants even if it involves paying huge premium for the product under consideration and companies adopting production concept are taking huge risk as chances of their production remaining unsold are high if company’s do not pay attention towards customers choices and desires.