Today, there are very few concrete examples of companies that use the production concept; this concept was invented decades ago, after the Industrial Revolution, and it may be slightly (or more than slightly!) out of date. According to the rules of production concept manufacturing and marketing, consumers naturally gravitate towards cheaper products that are easy to find and buy. Therefore, according to the concept, manufacturers should push out larger quantities of products and flood the marketplace to make them easier for customers to purchase.
Obviously, this concept doesn't factor in for fluctuations in consumer needs and wants; that's probably why it's so hard to find corporations that use this antiquated production concept model in today's fast-moving marketplace. Instead of production concept manufacturing and marketing, most modern-day entrepreneurs will scale their production according to previous sales figures and realistic future projections. Here are some reasons why the production concept is not very popular in the post-millennial world:
• Expense - This production concept model requires an enormous cash outlay, as mass quantities of product must be produced and sent out to market. Costs will include raw materials, labor, packaging, advertising, and distribution, to name just a few related expenses...
• Storage - If products don't sell as intended, they may be sent back to the manufacturer; this scenario can cause big problems, as items will need to be stored...this costs lots of money.
• Technology - Today, many products need frequent upgrades or improvements to stay modern and competitive in the marketplace. Making these changes can be harder when more products must constantly be manufactured.
At one time, the production concept may have worked well for certain items; it is most effective when making and selling products that are basically essential, such as foodstuffs or household items. However, with so many choices available online, and in bricks-and-mortar stores, consumers are more selective than ever before. They may seek our fresh new alternatives for the same old products.
Obviously, this concept doesn't factor in for fluctuations in consumer needs and wants; that's probably why it's so hard to find corporations that use this antiquated production concept model in today's fast-moving marketplace. Instead of production concept manufacturing and marketing, most modern-day entrepreneurs will scale their production according to previous sales figures and realistic future projections. Here are some reasons why the production concept is not very popular in the post-millennial world:
• Expense - This production concept model requires an enormous cash outlay, as mass quantities of product must be produced and sent out to market. Costs will include raw materials, labor, packaging, advertising, and distribution, to name just a few related expenses...
• Storage - If products don't sell as intended, they may be sent back to the manufacturer; this scenario can cause big problems, as items will need to be stored...this costs lots of money.
• Technology - Today, many products need frequent upgrades or improvements to stay modern and competitive in the marketplace. Making these changes can be harder when more products must constantly be manufactured.
At one time, the production concept may have worked well for certain items; it is most effective when making and selling products that are basically essential, such as foodstuffs or household items. However, with so many choices available online, and in bricks-and-mortar stores, consumers are more selective than ever before. They may seek our fresh new alternatives for the same old products.