One advantage of the production concept of marketing is that a manufacturer will never run low on the product they are producing. With this concept, a company produces as much of a product as they can and sells it for a very reasonable price. This concept is a wee bit old-fashioned, so it doesn't have a huge assortment of advantages in today's fast-moving, high-tech world.
These days, businesspeople can spend plenty of time figuring out their target market, their distribution, and their pricing... Before they even place a finished product on store shelves or in a virtual storefront. Nowadays, it is not necessary to produce a ton of products at rock-bottom prices to stay competitive. However, the production concept may still work fairly well, as long as the product manufactured is a necessity, rather than an indulgence of some sort.
With these sorts of production models, budgets can get really tight. Producing a lot of product constantly really adds up; after all, a company will need to cover the costs of running a manufacturing facility, paying laborers, buying supplies or ingredients for the product, packaging, marketing and more. Overhead is very high with the production concept, and many people simply can't afford to do this sort of production, even if they want to. These days, credit is tight, and many entrepreneurs have difficulty getting financing from banks and credit unions, even if they have excellent prospects and collateral. Therefore, the production model may be considered entirely unrealistic in a "credit crunch" economy.
To learn more about the production concept model, study business history or take some courses in business at a local community college. Knowing the various and myriad ways of producing products and getting them into the marketplace is a vital skill that any entrepreneur needs to learn.
- Products should be necessities
These days, businesspeople can spend plenty of time figuring out their target market, their distribution, and their pricing... Before they even place a finished product on store shelves or in a virtual storefront. Nowadays, it is not necessary to produce a ton of products at rock-bottom prices to stay competitive. However, the production concept may still work fairly well, as long as the product manufactured is a necessity, rather than an indulgence of some sort.
- Pitfalls
With these sorts of production models, budgets can get really tight. Producing a lot of product constantly really adds up; after all, a company will need to cover the costs of running a manufacturing facility, paying laborers, buying supplies or ingredients for the product, packaging, marketing and more. Overhead is very high with the production concept, and many people simply can't afford to do this sort of production, even if they want to. These days, credit is tight, and many entrepreneurs have difficulty getting financing from banks and credit unions, even if they have excellent prospects and collateral. Therefore, the production model may be considered entirely unrealistic in a "credit crunch" economy.
To learn more about the production concept model, study business history or take some courses in business at a local community college. Knowing the various and myriad ways of producing products and getting them into the marketplace is a vital skill that any entrepreneur needs to learn.