The production and selling concepts are two of the five main marketing concepts that are followed by businesses. The rest three are – product, marketing, and Societal marketing concept.
- Focus: The production concept emphasizes efficiency and economies of scale, while the selling concept prioritizes advertising and sales promotion.
- Customer needs: The production concept assumes customers prefer widely available and affordable products, whereas the selling concept assumes customers must be persuaded to buy products.
- Market conditions: The production concept works best in supply-driven markets, while the selling concept suits demand-driven markets.
Production Concept vs Selling Concept
The difference between the production concept and selling concept is that the former deals with ensuring the quality and standards of the product are above par, while the latter deals with finding ways to promote the products in the best possible way.
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The production concept is one of the oldest marketing concepts and deals with the product component of the business, particularly product quality (efficiency and costs).
The selling concept deals with persuading a customer to buy the company’s product with the help of promotions and various selling tactics.
|Parameters of Comparison||Production concept||Selling Concept|
|Process level||It is the first step taken into consideration when implementing marketing concepts.||The third step in the marketing concept ladder is after production and product concepts.|
|Purpose||The company applies the concept to enhance and improve its product quality through extensive research.||Here, the company has to find methods to push their improved products to the customers and make a sale.|
|In-depth components||The main focus is on production costs, high efficiency and large volume for production.||The main focus is on advertisement and promotion and showing the high quality of the product.|
|Steps||The steps involved in the production concept are – Routing, Scheduling, dispatching, and follow-up.||Prospecting, Preparation, Approach, Presentation, Handling objections, Closing, Follow-up.|
|Source||Start with the raw materials involved in the manufacturing of goods.||It starts with the finished products made in the factory, which are rolled out to the customers.|
What is Production Concept?
The production concept was found in the mid-20th century when industries were taking off, and the manufacturing of goods was the most significant prospect of that time.
This is because the demand exceeded the supply, and the volume of manufactured goods was low.
The production concept is the first step in the marketing concept process, where the goods are manufactured, checked for quality, and passed onto the company.
The production concept helps a company understand its product’s qualities and features and improve on them. Every company wishes to make its product as eye-catching as possible and help consumers decide quickly.
Many things go into making a product desirable, and thus the business focuses on those points. The points are as stated below –
- Low production cost: purchasing the high-end raw material at lower prices to invest more money in manufacturing.
- Production efficiency: The factory must roll out the product on time to reach the consumer as soon as possible for sale.
- The production volume: The factory should be able to keep up with the consumer’s demands, which increase daily and keep the product’s quality intact.
Here the price component of the product is a crucial factor. The company must keep in mind that its prices are reasonable for the consumer to purchase.
The company first compares its costs with its competitors and, accordingly, changes its expenses.
There are four steps followed in the process of production –
- Follow up
These steps are carried out, and once the product line is approved, the next concept in the marketing rule is followed.
What is Selling Concept?
The selling concept became significant for every company after the 1980s because advertising had come into the picture. Being able to promote your product and show it off to the world has become every company’s priority.
The selling concept was developed because it was believed that a customer would not be inclined to buy a company’s product unless they were persuaded or pushed to make that decision.
So the main emphasis of the business moved towards selling the product regardless of its quality being good or bad. Here, the company assumes that only through aggressive product promotion will sales.
Now the idealogy of using an aggressive sales tactic is only opted by companies who believe their product is not up to mark with the other significant conglomerates.
Major companies don’t need to use these sales tactics because what they lack in advertising makes up for product quality.
There are a few steps that must be followed when applying a selling concept –
- Handling objections
The selling concept starts with the factory finalised goods and ends when the product is displayed for sale. The rest is carried out by marketing and societal marketing concepts.
Main Differences Between Production Concept and Selling Concept
- The production concept is the first step in the marketing process. The selling concept is carried out after the production, and product development is finalised.
- Production concept helps improve existing or new products regarding quality and costs. The selling concept helps customers easily distinguish between the company and the competitor’s product.
- The production concept involves factors such as low manufacturing costs and increased volume. The selling concept includes advertising, displaying products, and promoting them to look good regardless of the quality.
- In the production concept, the steps involved are – Routing, Scheduling, dispatching, and follow-up. In the selling concept, we follow – Prospecting, Preparation, Approach, Presentation, Handling objections, Closing, and Follow-up.
- The starting source of the production concept is the raw materials and their manufacturing. At the same time, the selling concept is the finished goods and their advertising.
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.