The Production Concept in Marketing Management

Marketing management concepts refer to the philosophy used by businesses to direct their marketing efforts. Mainly, marketing concepts denote the philosophy that a business uses to identify and meet the needs of its customers, serving both the consumer and the company. The same concept may only be helpful for some types of businesses. Thus, different companies use different marketing management concepts or marketing concepts.

In this post, the concept of production will be considered in detail. This concept is based on the idea that inexpensive and widely available products bring more sales because customers prefer them (Marshall, 2014). Thus, companies produce a product on a large scale and ensure that it is easily accessible to consumers everywhere. The large scale of product production helps companies to take advantage of economies of scale, which leads to the creation of inexpensive products and thus attracts more customers. The disadvantage of this concept is that it focuses only on production rather than on the quality of the product, which in the long run can lead to lower sales if the product fails to meet the requirements (Erkin & Muborak, 2022). This philosophy applies only when demand exceeds supply. Again, buyers are only sometimes attracted to an inexpensive product because other factors may influence their purchase decision.

The focus of the production concept is the mass production of goods, and the economies of scale reduce the price of products and services. The quality of products and the efficiency of production methods improve over time. Buyers do not need to worry about a shortage of goods. Mass production will take care of this. The production concept ensures that the product is reasonably priced for customers. Economies of scale reduce the costs of goods, and most people care about prices (Erkin & Muborak, 2022).

This attracts the attention of price-conscious customers. The production concept usually works in an uncompetitive market environment. Mass production increases the profitability of the company. Investors’ attention is attracted when a company makes a significant profit. They will eventually invest in the industry because of the high profitability and stock value. The efficiency of the production process is achieved after a long time. The quality of the company’s production concept products was low (Marshall, 2014). The reason why people buy these products is that there are not so many variations on the market. The needs and wishes of customers are of secondary importance for manufacturers in the production concept. The company produces products for most people and not for any particular segment.

Companies that produce their products abroad are excellent examples of products in action. The production of retail goods abroad reduces costs, and they can transfer the savings to the buyer. Lower prices can be a powerful incentive to attract new customers. Ford cars are a perfect example of production. When Ford promoted a large number of cars to the market, more people bought its cars. The whole philosophy of Henry Ford was to improve the production process of the Ford Model-T.

The initial cost of the Ford Model-T car was about $ 800, and at the beginning of the 20th century, it was high (Lazdowski, 2020). The company initially adhered to the production concept and developed an assembly line and other production processes. The price jumped from $800 to $300 $300 at that time, which was affordable for many Americans (Lazdowski, 2020). The demand for cars was so great, and the supply was so small that simply increasing production, more optimized distribution, and economies of scale led to Ford Motor Company becoming one of the most successful companies in history.


Erkin, G., & Muborak, R. (2022). Modern marketing concept. Web of Scientist: International Scientific Research Journal, 3(8), 60-66. Web.

Lazdowski, Y. J. (2020). The Inception of the Ford Motor Company. In Persistence and Vigilance: A View of Ford Motor Company’s Accounting over its First Fifty Years (Vol. 24, pp. 5-13). Emerald Publishing Limited. Web.

Marshall, G. (2014). Marketing management. McGraw-Hill Higher Education.

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