Business

According to the reading assignment, the production concept is one of the oldest concepts in business. As in most cases, consumers will prefer products that are widely available and low costs. Production concept relies on the low cost of production in order to succeed. Because technology changes so rapidly, manufactures must continuously update their equipment in order to stay competitive or risk losing market share to new manufactures. The other side to that is that labor may become cheaper in another country. Right now everyone is going to China for low labor costs, but what happens when those workers start demanding more money. The new manufactures will find another country that will provide even cheaper labor. The production concept manufactures in China will have to move to another country that will provide cheaper labor. The product concept proposes that consumer favor products that offer the most quality, performance, or innovative features. However, the idea that consumers will favor products that offer the most quality, performance and features, then the organization should devote its energy to making continuous product improvements. Simply, managers in these organizations focus on making superior products and improving them over time. A new or improved product will not necessarily be successful unless it’s priced, distributed, advertised and sold properly.

The selling concept is based on the principle of massive advertising and promotion because it says that if you the customers are not constantly reminded, then you won’t be motivated to buy the product and will forget about it. This represents a philosophy that believes in aggressive marketing and selling and taking all of the measures necessary to sell the products. These organizations really try to push their products to the customers; however, marketing based on hard selling carries high risks. It assumes that customers who are coaxed into buying a product will like, and that if...