Marketing Activities

PRODUCTION CONCEPT

Production concept holds than consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low cost, and mass distribution.

ADVANTAGES DISADVANTAGES

* Detailed or extensive research of a target audience is not needed.

* Do not need well planned marketing campaigns or promotions that can be saves money.

* Do not need well planned marketing campaigns or promotions that can be saves money.

* Achieve

 High production efficiency

 Low costs

 Mass distribution

* Manufacturers can produce a product as much as they can and sells it for lower price.

* Helps manufacturers in effecting the economics of the large scale production.

* Huge inexpensive labour could be hired.

* Best suit low-income group.

* This concept can be used when a company wants to expand the market.

* Cheap

* Strengthen distribution system.

* Can be made available at many places * Focus on producing product rather than what customers need.

* Focus on producing product rather than what customers need.

* Example: Customer can't choose feature or quality of the product.

* Old-fashioned. Does not have advantages in today's fast-moving, flexible and high-technology world.

* Producing product constantly will need to cover the costs of

 Running a manufacturing facility

 Wages for labours

 Inputs

 Packaging and others.

* Thus, overhead is very high in production concept. Many people can't afford to pay this cost. It is also hard to get financing from banks.

* The utility of this philosophy is apparent only when demand exceeds supply.

* Production concept may still be able to work well as long as the product manufactured is a necessity instead of luxury goods.

* Not always necessary that the customer every time purchases the cheap and easily available goods or services.

* Low quality of the product.

PRODUCT CONCEPT

The product concept holds that consumers will favour those products that offer the most quality, performance, or innovative features. Manager's in these organizations focus on making superior products and improving them over time.

ADVANTAGES DISADVANTAGES

* Marketers concentrate on making superior products & improving over time.

* Did not need to carry out too much extensive research into target audience and believe well-made products will win admiration of consumers.

* Regarded as the premium products among the customers due to product showcase in its best qualities and maximum features.

* The new product can be presented as description, computer sketches, drawing, and as prototype, depending on the availability and suitability for the product of the different forms.

* Too much focusing on products qualities & specifications sometimes neglecting customer's need.

* Product-oriented company will be unaware of the market's movement, and will be consequently seeing their products not be well received in the market anymore.

* Management may pay less attention towards pricing, distribution, and advertising activities since all attention focusing on the product it self.

THE SELLING CONCEPT

The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products. The organizations must, therefore, undertake an aggressive selling and promotional efforts. This concept assumes that consumers typically show buying inertia or resistance and must be coaxed into buying.

ADVANTAGES DISADVANTAGES

* All of of promotion efforts which would increase awareness of the product.

* Various selling and promotional strategies would be explored and implemented in this concept in order to coax targeted customers.

* May overcome the overcapacity of product through intensive and pre-emptive selling and promotional strategies.

* Highly persuasive in the selling and promotional approach.

* It caters to the need of the seller (sales target, profit etc. )

* It will improve selling skills.

* Increasing productivity versus profitability.

* Sales personnel can give clear product description n explanation to customers.

* Company can attract the right target market to do the sales pitch. Sales information will be delivered to the right people

* It will be a good branding exercise. More people will get to know the company as an active corporate entity. * It does not cater to the market needs of the product which would potentially lead to overcapacity.

* It works under poor assumption where the customer will