what is production concept in marketing

The production concept is one of the five key concepts that form the foundation of marketing. It is the oldest of the concepts in business and holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are primarily interested in product availability and low prices. The production concept is relevant in a new market which is not saturated with competition. The more a company produces, the more customers it can get, and the market can still absorb more of the product and can earn a profit while keeping the prices low. The production concept is fit when the resources are readily available with low costs, cheap labor, and low competition, and demand is higher than supply. It might also work well when the business is new and attempts to capture huge markets with higher product availability. However, the production concept may fail when competition arises and consumers start preferring quality.