Product vs Production
The key difference between Product and Production Concept lies in the fact that the concept of the product is to create good quality item/product which should be reliable along with unique features for the consumers.
On the other hand, the concept of production is to make the product available in the market at an affordable price where people can easily buy the products with.
In the marketing world, businesses are supposed to design the pattern of strategies that satisfy customers’ needs, maximize the level of profit, raise sales, and beat their competitors.
The term product and production concepts are frequently compared. The idea of a product concept is known as similar to the marketing concept because it includes the production of a product as accepted by the user.
On the other hand, the production concept means that a brand or firm has to concentrate on products that can generate most accurately.
Low-cost products would produce by firms and it is believed that this cost will drive the demand for the product.
Comparison Table Between Product and Production Concept (in Tabular Form)
| Parameter of Comparison | Product Concept | Production Concept |
|---|---|---|
| Preference of Consumers | Products that offer the best quality, performance, and creative specifications are preferred by consumers | Products that are broadly available and inexpensive are preferred by consumers |
| Meaning | Improvements in quality products | Easily accessible products |
| Business Goal | To enhance the quality of the product, creating new features, etc. | To enhance the quantity of production and to reduce the average cost. |
| Profit | Gets profit by providing a good quality product | Gets profit by expanding large scale production |
| Priority | Gives priority on the product | Gives priority on the production |
What is the Product Concept?
The meaning of Product Concept is that customers or consumers prefer a product that offers the best quality, performance, and features. In order to deliver the best possible product to the customer as per their requirement and expectation, this concept is a necessary one.
To achieve success, a product is not going to be complete by itself and it will need other factors such as- business-like marketing, delivery, sales, service, etc.
A firm or company can create an identity of the product and also can add practical value and advantages by using the Product concept.
As a result, the expected customers can collect this benefit and sooner or later they will buy the product in the market.
Towards the market, the product concept is known as one of the orientations & marketing approaches that can be followed by a company.
The other strategies are Selling Concepts, Production Concepts, and Marketing Concepts, etc. Pull Marketing is created because of better products that provide aid in the success of the brand.
And every creative innovation helps to get new products with features which will attract more customers.
For example, Apple is one of the companies that focuses extremely on their product concept to deliver the best products to their customers.
Their products are considered to be of high quality with ingenious features and tremendous accomplishments.
So, consumers want to purchase the products of Apple and that generates a pull marketing.
Therefore, this is the proper definition of the Product Concept along with its overview.
What is the Production Concept?
The production concept can be called a very effective organizational adjustment than any of the lists of other marketing concepts.
It says the actual truth about how humans will prefer products that are inexpensive and can be easily found.
In the mid1950s this concept was discovered during the time of production era of early Capitalism.
In that time, organizations concerned themselves principally with creation, assembling, and effectiveness issues.
Also, during this time, the ‘Says Law’ was developed with the idea of supply and demand.
The actual thought behind this concept is that to maximize profitability and scale, businesses will always prefer to generate extensively cheap products in maximum volumes.
The owners of these businesses believe that customers are initially interested in product availability and low prices.
In this way sometimes customer’s needs might not be fully addressed.
This kind of attempt is apparently most productive at the point when a business works in high development markets or where the potential for economies of scale is noteworthy.
Main Differences Between Product and Product Concepts
- In the product concept, even if the price of the product is high, a good quality product will sell itself. On the other hand, in the production concept, if the firm produces in bulk amount, the cost of production will be less, and so it will attract the customers for its low cost and will be easily sold.
- In the product concepts, consumers will always want the products that offer the most value in quality, performance, and innovative features. And in the production concepts, consumers will favor products that are available around them and are budget-friendly.
- The product concept can be followed by customers through the improvement in the product. Under other conditions, the production concept will be followed by upgrading the amount of product effectiveness and distribution coverage.
- The goal of the product concept is providing good quality rich products, with creative features and outstanding performance to the customers. And production concept targets at accomplishing economies of scale, through a major number of production and improving the supply chain.
- In a product concept, the product usually gets the utmost preference, and in the production concept, the production of goods will be given top priority.
- In the product concepts approach, the advancement of the product in terms of its features, performance, and quality are the means to achieve the end goals. In production concepts, maximizing projects, production should be done on a large scale which will make sure obvious availability and affordability of the product.
- A product concept is known as the thought for an item or product. And a production concept is known as the concept of conceiving to create the product.
- The production concept is useful for the companies when the demand for a product outruns the supply, and the cost of the product is too high.
The product concept is nothing like that.
How to Remember the Difference Between Product and Production Concept
Time Needed : 2 minutes
Remembering the differences is very simple, just follow our mind mapping guide given below:
- Associate the first word with a thing or item which you see daily
For e.g.: Middle line in letter H for Horizontal.
- Associate the second word with a thing or item which you see daily
For e.g.: The two lines in letter V for Vertical.
- Recall the two words daily two times
During morning and evening bring up the two words in front of you and then recall the things that you had associated with each word.
- Repeat for 7 days
Repeating this process for a week will help you remember the difference between words for a long time.
Frequently Asked Questions (FAQ) About Product and Production Concept
- What are the 5 marketing concepts?
Marketing concepts refers to a plan that companies implement to ensure the needs of their customers are met, increase sales, beat the competition, and maximize profits.
A company can adopt and enforce five marketing strategies.
Marketing is the management department that strives to create strategies that will establish a profitable relationship with clients.
These marketing concepts comprise the production concept, selling concept, product concept, the societal marketing concept, and marketing concept. - What is a product, and what is a service?
Products are tangible items that are put on the market for consumption, attention, or acquisition.
On the other hand, services are intangible items that come from the output or people.
While it might look like the key distinguishing feature between the two is founded on the tangibility, that’s not always the case.
In some cases, services are always intangible, but products can be intangible as well. - What are the 4 types of products?
Products have wide categories. In the marketing concept, consumer products are regarded as the products acquired for personal use by clients.
These items are different in various ways. Each product available in the market has various features depending on the various purchasing habit of consumers.
The four forms of products comprise of shopping products, unsought products, specialty products, and convenient products. - Why do products fail?
There are many reasons why businesses fail. Some of them include failure to know the needs and wants of a consumer, fixing problems that don’t exist, pursuing the wrong market, and pricing products incorrectly.
Other reasons include frail internal capabilities, delay in entering the market, and bad execution strategies.
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Conclusion
At current times, production concept seems to be no longer in use as customers are more into quality than quantity and also this concept is an old one and during that time growth in production of the goods was the major concern of the companies.
This is because whatever they manage to produce has worth for the customers.
And, the demand for the product naturally grows, if it has the expected quality and fulfills customers’ requirements fully.
Truth be told, if a company wants to survive the competition, in the long run, it should abide by the product concept.
This will make the customers accustomed to the good quality products offered by the company or firm.
Word Cloud for Difference Between Product and Production Concept
The following is a collection of the most used terms in this article on the Product and Production Concept. This should help in recalling related terms as used in this article at a later stage for you.
References
- https://www.marketing91.com/what-is-a-product/
- https://economictimes.indiatimes.com/definition/product
- https://advances.sciencemag.org/content/3/7/e1700782.full
- https://www.webopedia.com/TERM/P/production.html
- http://www.economicsdiscussion.net/production/production-meaning-definition-types-and-factors/12398
Piyush
He is the founder of AskAnyDifference and has the authority to write on topics like Finance, IT, Law and Science. The Wall Street Journal calls him a top differentiator on the web, Forbes says he owns one of the top websites about "Difference Between" various terms, and Entrepreneur Magazine says he founded one of the 100 most brilliant ideas.