Product Concept Vs. Production Concept: 8 Key Differences [Explained]

Product Concept Vs Production Concept

Product and production concept are two marketing philosophies or concepts from the six. These two marketing concepts are sometimes interchangeably used, they are similar to some extent, but, they also greatly differ from each other.

The production concept is a marketing philosophy that believes that the product’s price is the key factor people look for when they are buying. It assumes consumers will buy products that are low-priced and easily available in their areas.

On the other hand, the product concept of marketing explains that customers prefer to buy products that have quality. It stresses that the product which has quality, higher performance, and attractive features will be chosen by people.

These both product and production concepts have their own way of producing and selling products and generating profits. Let’s understand the meaning of production and product concepts and the differences between them.

What is a Production Concept?

The production concept is based on the assumption that customers buy a product that is low-priced and easily available. The main goal of the production concept is to get production efficiency and economies of scale.

This marketing philosophy explains that while buying product people look into the product’s price and ignore its other features like quality, performance, durability, etc. It is focused on mass production.

The production concept came into existence before and during the 1930s when industries were determined to increase productivity with decreased cost. At that time most people were not interested in product quality as compared to today.

Also, the production concept strongly agrees with the “Says Law” which is the idea of demand and supply. That says “Supply creates its own Demand”.

Related: Societal Concept of Marketing

What is a Product Concept?

The product concept is a marketing philosophy that explains that the product’s quality is the main factor people look into while buying. It assumes that customers respond to a product that has quality, greater performance, unique features, and is reasonably priced.

The product concept also came into existence during the 1930s after the popularity of the production concept started to decrease. It emphasizes organizations to continually improve product features so as to be competitive.

Read Also: What is Actual Product?

In addition, the product concept forces companies to be proactive i.e. launch qualitative products before the competitors and always stay ahead of competitors. However, this concept has ignored the needs and wants of customers and only focuses on the product’s quality.

Difference Between the Product and Production Concept

The following are the key points that differentiate the marketing philosophies – production concept and product concept.

Definition

As their definition is already mentioned. Shortly, the production concept means that assumes consumers prefer products that are low-priced and widely available.

On the other hand, the product concept means that assumes consumers prefer the product’s quality over price.

Marketing Variable

The production concept believes that the main marketing variable is the product’s price and assumes buyers are price-conscious. Whereas, the product concept believes product quality is the main marketing variable and assumes all consumers are quality-conscious.

Focus

The main focus of the product concept is on quality. It emphasizes companies make continuous improvements in product quality, performance, and features.

Read Also: Dimensions of Quality

Whereas, the main focus of the production concept is the price. And, focuses on enhancing the production process and reducing the production cost.

Functioning

The functioning of these marketing concepts describes how they produce products and ultimately how they make profits. The functioning of product and production concepts can be better understood through the following pictures.

Functioning of production concept:

Functioning of product concept:

Objective

The objective of the production concept is to achieve economies of scale. Whereas, the objective of the product concept is to provide better quality products to the customers.

Useful

The product concept is useful when the market is competitive and to be on the top companies have to offer the most qualitative and unique products.

Read Also: Selling Concept of Marketing

On another hand, the production concept may be useful when a business enters a new market or produces a new product. And, to capture the market, at first, selling low-priced products may be a suitable option.

Existence

The production concept is the first marketing philosophy. After it, other marketing philosophies i.e. product, selling, marketing, societal, and holistic have emerged.

Example

Apple company’s iPhone may be a suitable example of product quality. And, production concept’s example may include different low-priced mobiles, watches, furniture, etc. which are easily made available everywhere.

Conclusion…

One thing that is most common in these concepts is that both are ignoring the choices and needs of customers which is the main drawback of these marketing philosophies. The production concept prioritizes the product’s price only. And, the product concept prioritizes the product’s quality only.

Read Next: Difference Between Selling and Marketing Concept