What Is The Difference Between Production And Product?

The production concept holds that consumers will favor products that are available and highly affordable; therefore, management should focus on improving production and distribution efficiency. This concept is one of the oldest philosophies that guide sellers.
The production concept is still a useful philosophy in two types of situations: (1) when the demand for a product exceeds the supply, management should look for ways to increase production. (2) When the product's cost is too high, improved productivity is needed to bring it down. Another major concept guideline sellers the product concept, holds that consumers will favor products that offer the most quality, performance, and innovative features.

Thus an organization should devote energy to making continuous product improvements. Some manufacturers believe that if they can build a better mousetrap, the world will beat a path to their door. But they are often rudely shocked. Buyers may well be looking for a better solution to a mouse problem, but not necessarily for a better mousetrap. The solution might be a chemical spray, an exterminating service, or something that works better than a mousetrap.