Every company may have different outset and way of thinking towards production of their product. Some may think that if a product is manufactured in bulk, it may be made available at number of places and would in turn help the sales to high. Such companies concentrate on mass production and distribution to multiple points. Such products are available at cheap rates to consumer. On the other hand many companies would think that manufacturing less but quality product Is Important. Such companies spend in developing quality product: in turn sell them at much Geiger cost.
What are the five marketing management philosophies? 1. Production Concept 2. Product Concept 3. Selling Concept 4. Marketing Concept 5. Societal Marketing Concept What is production concept? A company who believe in the philosophy that if they produce cheap product or offer cheap services, they will be able to touch every consumer who cannot afford expensive Is known as the product concept. Such companies put In their effort and manpower producing In large quantity. They put In efforts In distribution of the largely produced at as many places possible.
These products are made available at low cost so that everyone can afford it. Mentality of such companies says, that tastes of the consumer is not kept into consider and the goods are sold only because the consumer needs them. This concept is a traditional, yet it is still being practiced widely. When Is It useful? Well! It is useful when the demand of the good is higher than the supply. When the company knows that they are the only selling company of a particular product and whatever they produce would be bought because of no competition. Moreover it is the need of the consumer.
This concept becomes useful, when your product does not need extensive advertising and marketing to reach the target audience. Your company then saves a lot of money, which could have been used for brand promotion. What are the Risks? There are multiples risks Involved, the major risks are as follows. Large scale it is not always necessary that the consumer would buy cheap product. Another mind set of the consumer should also not be ignored, who think that something which is easily available and something that everybody uses is not what they have to buy.