Sunday, November 1, 2009
It is the oldest business concept. Organization that adopt the production concepts believe that consumers will favor those products that are widely available and low in cost. The production concepts has the following features:
Production oriented organization focuses on high production efficiency and wide distribution coverage. The focuses is on the existing products and all efforts are directed at raising output levels and produce standardized product.
Production concept is based on mass production and mass merchandising of goods and services.
Organization use the lower costs to cut prices and mass merchandising of goods and services.
It assumes that buyers are fully aware of the available brands and given a choice, will generally buy the lowest priced products. The price is assumed to be the critical variables in the buying decisions.
The production manager plays the key role in production oriented organization as he/she has to manage production in several shifts.
Many Japanese companies in the 1960s and 1970s adopted this approach and became successful in international marketing. today, china is practicing this concepts in international marketing. Several Nepalese business enterprises are also working under the production concept.
This business concept is very weak as it assumes price as the only critical variable in buying decisions of consumers. In reality, many non-price factors influence the buying of decisions of consumers.
Production oriented organization focuses on high production efficiency and wide distribution coverage. The focuses is on the existing products and all efforts are directed at raising output levels and produce standardized product.
Production concept is based on mass production and mass merchandising of goods and services.
Organization use the lower costs to cut prices and mass merchandising of goods and services.
It assumes that buyers are fully aware of the available brands and given a choice, will generally buy the lowest priced products. The price is assumed to be the critical variables in the buying decisions.
The production manager plays the key role in production oriented organization as he/she has to manage production in several shifts.
Many Japanese companies in the 1960s and 1970s adopted this approach and became successful in international marketing. today, china is practicing this concepts in international marketing. Several Nepalese business enterprises are also working under the production concept.
This business concept is very weak as it assumes price as the only critical variable in buying decisions of consumers. In reality, many non-price factors influence the buying of decisions of consumers.
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