What Is The Production Concept | Meaning, Definition and Explanation

The production concept is defined as the idea that consumers will favor products that are available and highly affordable.

The production concept:

The production concept is defined as the idea that consumers will favor products that are available and highly affordable. Therefore, the organization should focus on improving production and distribution efficiency. In other words, the production concept can be defined according to the needs and want of consumers. In production concept companies focuses to develop that type of products which are suitable and affordable to everyone.

Explanation:

For example, we can says that basic necessity items consumers use in there routine. Furthermore, in production concept companies make there major focus on the distribution of those goods and services. This helps companies to gain more market share as well as to build a strong product image in the customers mind. To get better position in customers mind companies also develop there production capability as well as production quality.

When companies have gained more market share, there production capacity increase. When companies have high demand of there goods and service the supply and demand curve shifts towards mass production concept. Mass production helps companies to increase production which ultimately reduces product cost. According to this situation companies have more chances to compete their competitor at low price. That is why it is much importation factor for companies.

However, companies more emphasize to mass production and develops a strong distribution channel to lower the fixed products cost. In this case, companies believes that quality products have their own worth in the market and they will satisfy their customers in well manner. Furthermore, companies believers adopt the “Says Law”. This Law states that Supply creates its own demand in the market. In other words, when these products are available in the market level at affordable prices customers would more willing to purchase these goods and services. That is why Companies goes to mass production.

Sharing is caring!

Have any Question or Comment?

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!