Jobe Smith has decided to build his lawn mowers manufacturing business around the production concept.
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What will be Mr. Smith’s primary areas of concentration as he builds his business?
Production concept is one of the marketing models that a company may adopt in its marketing and selling approach in a particular market niche. In this concept, it is assumed that consumers normally have preference for products and services that are less costly and in constant supply (Kotler & Keller, 2012). Therefore, the company owners or the managers whose major focus are in this concept have to emphasize the low-cost production, increased efficiency in production and mass distribution. In other words, the assumption is that consumers will only be interested in low prices and the ease with which they will access the products (Kotler & Keller, 2012). Hence, Mr. Smith must concentrate on the low-cost production, increased efficiency and the distribution of his products.
What issues might Mr. Smith face in deciding to go with this concept as he builds his business?
However, Mr. Smith will be compromising the product quality. In a market niche where the consumer primary concern is the product quality, then Mr. Smith is likely to fail.
Kotler, P. & Armstrong, G. (2005). Principles of marketing. Beijing, China: Tsinghua University Press.
Kotler, P. & Keller, K. (2012). Marketing management. Upper Saddle River, NJ: Pearson Prentice Hall.